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                    <text>PERCEIVED SATISFACTION WITH PUBLIC TRANSPORT SERVICE:
CASE STUDY OF GRAS
Nataša Tandir
International Burch University
Bosnia and Herzegovina
natasa.tandir@ibu.edu.ba
Haris Tandir
International Burch University
Bosnia and Herzegovina
hari.tan@hotmail.com
Abstract: Public service quality is in recent years one of the major challenges for
economic analysis. It is due to the size of companies providing public services as well
as to the importance of obtained results both for companies offering the services
and for the public policy creators and administrators. One of the aspects that can
be evaluated is the level of service offered or the supply side. The other side is the
perceived satisfaction with the service quality, which represents the demand side
aspect. There is not much research that analyses how the passengers perceive the
quality of the services.
The objective of this paper is two folded. Firstly, to evaluate the quality of GRAS
services from the aspect of users and secondly to see what needs to be improved in
order for non-users or people who rarely use public transport to become regular users.
The information is valuable for policy makers as well as operational managers in the
public transport system. An insight into what users consider as important and how they
perceive existing public transport service can show that investment and improvement
of existing service can really attract new users and keep the existing ones.
The data were collected using self-administered internet mediated questionnaires to
the residents of Sarajevo Canton. In total 247 persons answered the questionnaire. The
response rate was above 50 per cent. The results showed that there is wide space for
improvements in service, especially if the company is trying to reach non-users.
Keywords: public transportation, services, satisfaction
Introduction
Car traffic has increased considerably during recent decades. The car enables
transportation that brings people positive consequences but also costs for society.
Individual freedom and independence are among the positive consequences noted
in connection with car use. Thus, the versatile car enables people to conduct diverse
activities in different places, for instance, work, purchases of different kinds, and leisure
activities. At the same time the negative environmental effects of car use is becoming
recognized.
Public transport has a lower societal cost than the car. Although most people use
public transport for some trips they make, it is generally perceived to be less attractive
and is less chosen. How can it be made more attractive? In the public transport
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industry, increasing competition has led to an increased market orientation, something
which for instance has led to that customer surveys have become common. With the
increased competition, there is also an interest in boosting market shares. In addition
to this, there are adaptations of services in order to encourage both existing and new
travellers to travel more by public transport (Carlsson, 1999; Eriksson, 2006).
Both society and the public transport industry want to change public transport in order
to adapt it to those who are frequent car users today. Accordingly, there is a need for
knowledge of how public transport can be made attractive to car users.
Public service quality is in recent years one of the major challenges for economic
analysis. It is due to the size of companies providing public services as well as to the
importance of obtained results both for companies offering the services and for the
public policy creators and administrators. One of the aspects that can be evaluated is
the level of service offered or the supply side. The other side is the perceived satisfaction
with the service quality, which represents the demand side aspect. There is not much
research that analyses how the passengers perceive the quality of the services.
The objectives of this paper are two folded. Firstly, to evaluate the quality of GRAS
services from the aspect of users and secondly to see what needs to be improved in
order for non-users or people who rarely use public transport to become regular users.
Literature Review
According to Fellesson and Frimen (2008) in many countries there have been investments
in improvement of public transport systems in order to increase the quality and thus the
usage of this mean of transport. However, this doesn’t lead to corresponding increase
in demand (Fujii &amp; Kitamura 2003, Mackett &amp; Edwards 1998). This is mainly because of
the increasing usage and ownership of cars. Anable states (2005) that today, people
are very dependent on car transportation. For them, car is not just a mean of travel. As
Steg (2005) points, it gives a feeling of sensation superiority, power, freedom, position
in the society.
On the other hand, there is an increase development and implementation of measures
related to the promotion of consequences of car travel, mainly on environment
and congestion, especially in large cities. Together with cycling and walking, public
transport is generally recognised as a sustainable alternative to the usage of cars
(Redman et al., 2013). Transfer from car travel to public transport usage became
an important alternative for the society which leads to the necessity to improve the
quality of public transport, make it more appealing and satisfying for the users (Beirão
and Cabral, 2010). Public transport systems need to become more market oriented
and competitive. They need to create certain image that would attract users. In order
to recognize the possibilities for improvement and increase market share, companies
providing public transport services need to understand travel behaviour, consumer’s
needs, expectations and satisfaction of users (Beirão and Cabral, 2010). Those
information are valuable for policy makers as well as operational managers in the
public transport system. An insight into what users consider as important and how they
perceive existing public transport service can show that investment and improvement
of existing service can really attract new users and keep the existing ones (Fellesson
and Friman, 2008).
Satisfaction represents a concept that deserves certain attention. It is manly elaborated
in consumer research and it is proven to have great value in understanding present
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and future behaviour of customers. Customers’ satisfaction is the link between the
service (or a good) offered by a company and perception of that service from the
customers (Fellesson and Frimen, 2008).
In the research by Friman, Edvardsson and Garling (1998) it is pointed that dissatisfied
users are maybe more important than satisfied users. In order to determine the
satisfaction or dissatisfaction the relevant attributes need to be identified. In the same
study it was assumed that the satisfaction is mainly affected by negative critical
incidents (NCIs) and that positive critical incidents are not so relevant. The main NCIs
identified were: treatment of employees (lack of competencies, knowledge, willingness
to serve); service unreliability (delays); simplicity of information; and shortcomings of
vehicles, equipment and stops. The study showed that single NCI and a memory of
how many times it has repeated (frequency) affects overall satisfaction with the public
transport service.
Paulley (2006) determined key factors that affect the demand for public transport.
According to the research it was found that fares, income, car ownership and quality
of service are key in determining the demand. The study is mainly related to the urban
public transport in Great Britain, however many international examples and sources
are used to emphasise the topic.
The research of Walle (2006) studies the relation between transport mode and time
factors using elasticities and regression techniques. The results showed that there is a
clear relation of waiting and walking time and public transport use. According to the
findings important issues were emphasised and recommended to the public transport
companies.
The important factor that can influence car drivers to switch to public transport is trip
chaining. In the work of Hensher and Reyes (2000) different discrete choice models
are evaluated to determine the role that certain features of households have on the
tendency to undertake varying trip chains that involve the use of the car or public
transport.
Research conducted by Dell Olio et al. (2011) indicates the difference between
desired quality of service and perceived quality by users. The first represent what the
users desire, expect or hope to receive and the later one is the daily experience of
the users of public transport. The research offers new aspect of quality: the quality
that the user and potential user desires. The most valued variables were waiting time,
cleanliness and comfort, while driver’s behaviour, occupancy and travel time were
valued less. The obtained results provided useful information for the authorities and
operating companies to plan marketing policies directed towards different categories
of users, as well as potential users.
The important attributes that could attract car users to become the users of public
transport were emphasised by Lauren Redman et al. (2013). The important contribution
of this research is related to the quality attributes of public transport services that
would encourage shift from private car usage to public transport. The results implied
that reduction in fare promotions and other habit-interrupting measures of transport
policy can lead car users to initially try public transport. To sustain those new users, the
accessibility, reliability and mobility provision are highly valued.
In a study of public transport services, Hensher et al. (2003) found that travel times
and fares have the greatest impact on negative satisfaction, whereas frequency of
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service and seat availability constituted the largest sources of positive satisfaction. In
another study, Friman et al. (2001a, 2001b) found four factors identified as constituting
perceived service quality in public transport services. The first factor was how travellers
were treated by staff, that is their willingness to serve, their knowledge, and their
competence. The second factor was service reliability. The third factor was simplicity
of information (e.g. the availability of departure and destination information). The
design of vehicles and space (relating to comfort, safety, and cleanliness) constituted
a fourth factor.
A transnational study of public transport in nine European cities (Fellesson &amp; Friman,
2008) confirmed these results by highlighting the impact of safety, security, frequency,
service reliability, comfort, and the quality of staff behaviour on the level of satisfaction
with public transport.
Stradling et al. (2009) examined 68 items which de-motivate people from using
buses. Eight factors were revealed by factor analysis. Factor 1 was interpreted as
inconvenience of route, scheduling, and other service provision; Factor 2 as unwanted
arousal from the journey experience (e.g. crowded bus); Factor 3 as feelings of being
unsafe; Factor 4 as the need for autonomy and control; Factor 5 as costs; Factor 6 as
self-image; Factor 7 as the preference for independence; and Factor 8 as disability
and discomfort.
In a narrative review of international research on how to attract car users to use public
transport, Redman et al. (2011) concluded that it is essential to break car-use habits, for
instance by providing free public transport tickets for a limited time to enable car users
to test public transport. To bolster attractiveness, it may be necessary to go beyond
core service attributes such as travel time, accessibility and reliability by improving
affective qualities. In order to keep (former) car users in public transport it is essential
that they perceive the service as attractive, not only initially but over time. If this can
be accomplished successfully car users may become satisfied public transport users
(Pedersen et al., 2011).
Case Study - Public Company “GRAS”
The public transport in city of Sarajevo was organised in 1885. Firstly, it was a tram
which used horses. The electric power trams were introduced in 1895. The bus transport
started in 1948. After many change, improvements and development, new charging
system was introduced in 1974 while the half automatic fare charging system was
implemented in 1977. During the war, the vehicles, the lines and whole company,
as everything else in Sarajevo were devastated. The reconstruction of the public
transportation service started in 1996.
Today, the mission and vision of the company states that the public passengers’
transportation represents one of the most important if not the key function of modern
city, overgrowing simple communication function. It represents the part of the city
development policy, the base for healthy community with great social role, since the
main users of public transport is population with lower income, especially younger
population and retired people. The mission of the company is to improve conditions
and safety in public transport, to increase the offer, improve the efficiency of
communication and to maximise profit. The vision is to give absolute priority to the
quality, speed and reliability of public transport, support of the Sarajevo Canton and
to the ecology and energy efficiency.
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Since 2005 the company implemented ISO 9001:2000 standard which was successfully
recertified in 2010. The special attention is given to the staff training and communication
toward the users.
Methodology
In Sarajevo there are two companies providing public transport services to the city.
The objective of this study is to evaluate the user’s perception and satisfaction with
the quality of GRAS public transport company. The research should show what are the
strengths and weaknesses of GRAS and where are the places for service improvement.
The users will evaluate characteristics of public transport services like: coverage, time,
reliability, behaviour of employees, condition of vehicles, frequency, safety, etc.
According to the available literature and with the objective of the research following
hypotheses were constructed:
H1: There is an overall satisfaction with public transport services of GRAS.
H2: Non users would become users if more than three attributes would be improved.
H3: Places for improvement of public transport services are quality of vehicles,
treatment of users by employees and service reliability.
The data were collected using self-administered internet mediated questionnaire. The
questionnaire was designed using Google docs. It was administered using e-mail and
social networks. This way of collecting data was chosen because of following reasons:
there is no demand for field work, there are no financial resources necessary, data
input is automated and data analysis is easy to perform using SPSS (Saunders et al.,
2009). The design of each question was done by adapting questions used in other
questionnaires. The advantages of relying on already designed questionnaires are the
ability to compare the findings with other studies and possibility to asses’ reliability of
the questionnaire. In order to avoid poor questions, the relevant scientific literature
was consulted. Likewise, there were no copyrights on the questions and the questions
were adapted from many existing questionnaires, thus there is no need to point each
out.
The first part of the questionnaire is consisted of basic demographic questions. The
second part consist the question related to the reasons why people do not use public
transport or use it very rarely, and what needs to be improved so a non-user would
become the user of public transport services. Third part is evaluating the perception
of users about the quality of public transport service using 5-point Likert scale: (1)
don’t agree at all, (2) hardly agree, (3) neutral, (4) partially agree, and (5) fully agree.
The sampling was done using non-probability sampling more precisely convenience
sampling, which is used because of ease of reaching the respondents this way.
The survey was administered in English and Bosnian language. The purpose of the
research was explained with accompanying cover letter. According to Dillman (2007)
the message in covering letter has positive effect on the response rate.

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Since the number of thematic questions in the survey was 19, in order to obtain validity,
the minimum number of respondents was 190 (ten respondents per each question).
In total 247 persons answered the questionnaire. The response rate was above 50 per
cent.
Results
Out of 247 respondents 49.8 per cent are female and 50.2 are male. When asked
about living area, 81.9 per cent live in the study area while 18.1 per cent do not. The
age structure of respondents is presented in next figure.
Figure 1: The age structure of respondents

Related to employment status 59.6 per cent are students and 36.7 are employed.
There is also a minority of self-employed (3.3 per cent) and retired respondents (0.4 per
cent). The respondents who own a car are 43.4 per cent of the sample.
Since one of the aims of this paper is to determine what are the reasons not to use
public transportation services, it was important to find out how often respondents use
public transport. People who use it few times a year count for 20.8 per cent of the total
sample and 8.6 per cent never use it. This is represented in figure 2.
Figure 2: Frequency of public transport usage

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Figure 3 shows the reasons why some respondents do not use or rarely use public
transportation services. The main reasons, according to the non-users are that it is
easier to travel by car and that public transport is overcrowded (more than 40 per
cent). Only 9 per cent thinks that public transport is too expensive and only 7.2 per
cent do not use it because the whole family is travelling by car.
Figure 3: Reasons for not using public transport

When asked about what needs to be improved so they would become users or more
frequent users of public transport the respondents gave different answers (table 1).
Table 1: What needs to be improved in order to use public transportation more
frequently
Frequency of using public
transportation services

Every day

If you do not use public transportation services or use it very rare, what
are your reasons for it?

Safety (7)
Cleanness (3)
Frequency (4)
Reliable (regular) (3)
Speed (2)
To reduce the price of tickets (3)
New tram
More vehicles and seating places (2)

Few times a month

Quality, better conditions
Reliable and more frequent (3)
Less crowd
Modern vehicles (2)
Customized tickets according to the destination
There should be only one public transport service company
The public transport market should be more competitive, not monopolistic.
Everything (2)
Better hygiene and behavior of employees

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Wi-Fi
Few times a week

Safety (3)
New vehicles (3)
Frequency (2)
Cleanness (2)
Better employees (2)
You never know whether the bus will take you all the way to your destination or it would stop somewhere (therefore you lose your money you pay
for the ticket and you are late in most
More comfortable
Everything (2)
Nothing

Few times a year

Cleaner (4)
Better transport (3)
Safety (3)
Better connectivity and more available routes
More vehicles with newer production date
frequency (7)
Less crowd (2)
Educate people manners in public transport

Never

All (2)
Speed, reliability and frequency (2)
Don’t know
Not planning to use it

Mainly answers were related to three broad topics. Frequency and reliability is very
important. Second issue that was pointed is related to the conditions in the vehicles.
The respondents ask for better quality, better hygiene and more clean vehicles. The
third group of possible improvements is related to the employees and their behaviour.
The complaints are related to the manners of drivers and lack of politeness. One more
response that was repeated few times is safety during ride.
When all respondents were asked to say whether they agree or disagree with certain
attributes of public transport the responses corresponded with answers from non-users.
The number of surveyed people that thinks it is overcrowded is 148 (61.9 per cent).
Around 45 per cent thinks it is not safe. More than 60 per cent states that the vehicles
are not modern and not clean.
Discussion
The purpose of this study is to investigate which are the problems in public transport
perceived by its users and which solutions may make public transport more attractive
to car users. With such knowledge, it will then be possible to suggest how public
transport can adapt its service offering to car users.
The results of this study indicate that public transport services need to be improved.
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This is due to the perception that current public transport services are not attractive
enough.
The generality of these results is implied by the fact that they are in line with previous
research findings from other countries (Curtis &amp; Headicar, 1997; Kingham et al., 2001;
Shannon et al., 2006).
How can public transport be improved and become attractive? In response to this
question, the results showed that increased service frequencies, reliability, cleaner
and newer vehicles were stated by car users to be reasons for increasing their use of
public transport. Similar results have been shown in other studies (Kingham et al., 2001).
Even if an improved public transport system would be provided in medium- size cities,
it would probably still be the case that car users would have to make sacrifices,
especially initially because of their known difficulties in changing an acquired car-use
habit (Fujii &amp; Gärling, 2005).
Furthermore, it is unlikely that a public transport service would fully cater to car users’
needs as regards time and flexibility. In order to increase public transport use, it is thus
also essential to make car use less attractive. It is not likely in the near future that
conditions governing car use in medium-sized cities will deteriorate due to congestion.
Other measures need to be taken to reduce the relative attractiveness of car use, for
instance the prohibition of car traffic in various zones, parking restrictions, and general
measures such as increasing the cost of owning and driving a car.
Conclusion
One of the undisputable need for the economic development of any society is
providing public transport services that are satisfying the growing mobility needs of
citizens.
Many public transport companies in other countries, as well as our domestic
company have internal indicators of the quality of services they offer. However, those
parameters are usually related to some attributes that are important from the aspect
of the company, such as travel time, frequency of the service, the average delay, the
average age of the buses that serve a route, etc. These measurements have internal
utility but in many cases are not valid for specific actions to improve user welfare.
The studies on quality must be not only based on certain standards but on combination
of set quality criteria and level of user’s satisfaction. The public authorities, no matter
they are regulators or providers, must establish levels of quality that maximize user
utility.
Related to the above mentioned, this study provides an interesting insight into the
satisfaction of users. Likewise, it determines attributes that need to be improved in
order for non-users to become users. Frequency, reliability, safety, cleanness are the
characteristics that need to be main concerns of future strategies of public transport
companies, especially in a market that once used to be monopoly and is transforming
to more competitive market.

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Tandir, Haris</text>
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                <text>Abstract: Public service quality is in recent years one of the major challenges for  economic analysis. It is due to the size of companies providing public services as well  as to the importance of obtained results both for companies offering the services  and for the public policy creators and administrators. One of the aspects that can  be evaluated is the level of service offered or the supply side. The other side is the  perceived satisfaction with the service quality, which represents the demand side  aspect. There is not much research that analyses how the passengers perceive the  quality of the services.  The objective of this paper is two folded. Firstly, to evaluate the quality of GRAS  services from the aspect of users and secondly to see what needs to be improved in  order for non-users or people who rarely use public transport to become regular users.  The information is valuable for policy makers as well as operational managers in the  public transport system. An insight into what users consider as important and how they  perceive existing public transport service can show that investment and improvement  of existing service can really attract new users and keep the existing ones.  The data were collected using self-administered internet mediated questionnaires to  the residents of Sarajevo Canton. In total 247 persons answered the questionnaire. The  response rate was above 50 per cent. The results showed that there is wide space for  improvements in service, especially if the company is trying to reach non-users.</text>
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                <text>Perception is not always a readily available contemplation outcome. Perception is always an interpretation too. Thinking is not based on edification foundations alone. It is also wrought with different purposes, conceptualizations and anticipations. An individual can never be absolutely certain that another person watching an object or an action with them at the same time interprets it with the same ultimate discernment. What we can surmise is that, under certain conditions, common perception facilitates human interaction. In order for members of a community to communicate and be able to act conjointly towards a common goal there need to be structurally identical elements in what they observe, feel and perceive. Thinking always objectivizes perception anew and makes it possible for different inferences to be interpreted as perception discrepancies. Individual perception, on the other hand, always strives to reroute thinking into a subjective mould and construe it as an emotion, or an upfront taken attitude which shapes the edifying algorithms and the premises beneath it. Before venturing to shed a definitive clue onto such contradictory connotations, one should ponder first whether there is an absolutely objective perception at all, one that soars above all subjective relations and yet involves people of different backgrounds, timelines, and locations. That, however, should be no obstacle to contemplating levels of perception discrepancy and the impact it has on the clarity of meaning. There are cases where an individual can be more objective than the whole community they belong to, and can perceive meanings more correctly than a vast majority of their fellow countrymen.    Key words: perception, discrepancy, meaning, inference, edification</text>
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                    <text>INTERNATIONAL BURCH UNIVERSITY
FACULTY OF EDUCATION
DEPARTMENT OF ENGLISH LANGUAGE AND LITERATURE

PERCEPTIONS AND EFFECTIVENESS OF BEING A NON-NATIVE
ENGLISH SPEAKER TEACHER (NNEST) AS A FOREIGNER IN BOSNIA
AND HERZEGOVINA

GRADUATE PROJECT
by
Harun BAŞTUĞ

Project Supervisor
Assist. Prof. Dr. Azamat AKBAROV

SARAJEVO
December, 2010

�PERCEPTIONS AND EFFECTIVENESS OF BEING A NON-NATIVE
ENGLISH SPEAKER TEACHER (NNEST) AS A FOREIGNER IN BOSNIA
AND HERZEGOVINA

Harun BAŞTUĞ
MA, ELT, 2010

Submitted to the Graduate Study Unit in partial fulfillment of the requirements for the degree
of Master of Arts in
ELT

INTERNATIONAL BURCH UNIVERSITY
2010

�1

APPROVAL PAGE

Student

: Harun BAŞTUĞ

Faculty

: Faculty of Education

Department

: English Language and Literature

Thesis Subject

: Perceptions and effectiveness of being a non-native

English speaker teacher (NNEST) as a foreigner in Bosnia and Herzegovina
Date of Defense

: 15.12.2010

I certify that this final work satisfies all the requirements as a graduate project for the degree
of Master of Arts.
Asst.Prof.Dr. Azamat AKBAROV
Head of Department

This is to certify that I have read this final work and that in my opinion it is fully adequate, in
scope and quality, as a graduate project for the degree of Master of Arts.

Asst.Prof.Dr. Azamat AKBAROV
Supervisor
Examining Committee Members
Asst.Prof.Dr. Azamat AKBAROVInternational Burch University …………...
…………...

Prof. Dr. Srebren DIZDAR

Sarajevo University

Asst.Prof.Dr. Melih Karakuzu

International Burch University …………...

It is approved that this final work has been written in compliance with the formatting rules
laid down by the Graduate Study Unit.
Asst.Prof.Dr. Azamat AKBAROV
Head of Graduate Study Unit

�PERCEPTIONS AND EFFECTIVENESS OF BEING A NON-NATIVE ENGLISH
SPEAKER TEACHER (NNEST) AS A FOREIGNER IN BOSNIA AND HERZEGOVINA

1

Abstract

In the field of English language teaching (ELT), a growing number of teachers are not native
speakers of English. According to current estimates, about eighty percent of English teachers
worldwide are non-native speakers of the language. The term non-native English speaking
teacher (NNEST) has created a division among professionals in the ELT profession. English
is taught commonly in many countries where English is spoken as a second language or
spoken widely. Therefore, being a non-native English speaking teacher in your own country,
where English is the target language between you and your own local learners and inevitably
your mother tongue is used partly during the classes, is different from in a foreign country
where English is mutual language between you and your learners. In that case, English is the
only way for you and your learners in order to communicate in every part of school life, in
school activities or even in your daily life. Learners feel like talking just the target language
before, during, and after the classes unavoidably. We can see the differences of learning
English through a local non-native English speaking teacher.
Key words: English language teaching, NNEST

�Acknowledgements
There are many people who helped to make my years at the graduate school most valuable.
First, I thank Mr. Assist. Prof. Dr. Azamat AKBAROV, my major professor and dissertation
supervisor. Having the opportunity to work with him over the years was intellectually
rewarding and fulfilling. I also thank Mr. Assist. Prof. Dr. Melih KARAKUZU contributing
much to the development of this research starting from the early stages of my dissertation
work.

Many thanks to Computer Department Staff, who patiently answered my questions and
problems on word processing. I would also like to thank to my graduate student colleagues
who helped me all through the years full of class work and exams.
The last words of thanks go to my lovely wife, Mine BAŞTUĞ who is also an English teacher
for her patience, encouragement and her endless support through this long journey.

�To my lovely wife, Mine BAŞTUĞ

�Table of Contents

1. ....................................................................................................................... Abstrac
t..................................................................................................................................... ii
2. ....................................................................................................................... Table
of Contents ................................................................................................................ iii
3. .......................................................................................................................
1. Inroduction ........................................................................................................... 1

2. Status Of The Non-Native English Teachers .................................................... 3

3. Perceptions of being a Non-native Teacher (NNT) ........................................... 5
3.1 NNS Teachers‟ Self-perceptions ................................................................... 6
3.2 NNS Teachers in The Classroom .................................................................... 6
3.3 Students‟ Perceptions of NNS Teachers ......................................................... 7

4. Effectiveness of being a Non-native Teacher (NNT) ......................................... 8

5. Conclusion ........................................................................................................... 10
References ................................................................................................................. 11
Curriculum Vitae ..................................................................................................... 13
4. .......................................................................................................................

�1
2
3
4
5
6

Chapter 1
Introduction

Initially, we should mention the difference between Native Speaker and Non-Native Speaker
in terms of Language Pedagogy. In an article on the differences between NTs and NNTs,
Nayar (1994) states that non native speakers are often regarded as language deprived,
unreliable speakers in terms of language competence when compared to native speakers, who
have phonological, linguistic, and communicative competence as well as linguistic identity.
On the other hand, it is considered that non-native speaking teachers have a „bright‟ side. It
could be also pointed out that, even if non-native-speakers normally use bookish language and
speak in a less confident way, they are more empathetic, attend to the students` real needs,
show more commitment, have realistic expectations of the students and are more insightful.

According to Medgyes (1994), we should analyze the different areas of difficulty.

Vocabulary:

There are some problems with the English lexicon as well as with any other language: many
words have different meanings according to the context, idioms, synonyms, etc. In short,
vocabulary resists mastery.

Fluency:

Oral fluency requires many qualities, such as readiness to speak, speech rate, etc, in which
non-native-speakers are in a disadvantage. Non-native-speakers' speech tends to be redundant
due to the difficulty in finding the right structures at the right time.

�Pronunciation:

It is obvious that non-native-speakers are marked by a foreign accent that in the worst cases
interferes with other people's understanding.

Grammar:

Grammar is the favorite field for non-native-speakers It is said to be more concrete and more
learnable than vocabulary.

The increasing demand for English all over the world and the ever-increasing number of
NNTs in the field -about eighty percent of English teachers worldwide- (Samimy &amp; BruttGriffler, 1999) has led to debates regarding to whether English should be taught by native
(NT) or by non-native teachers (NNT) and whether NTs or NNTs are better in terms of
teaching the language. If you ask anyone to be taught by whether native teacher (NT) or nonnative teachers (NNT), most of the learners would say that by native teacher (NT) due to the
fact that NTs have the advantage of having the cultural, phonetic and lexical knowledge of the
target language.

According to the one study aiming to present the attitudes of EFL learners towards NTs and
NNTs, interview results were not surprising (Gorsev, 2008). That is, the majority of the
students (13/18) in the English prep school of a private university in Istanbul in 2007-08
academic years chose natives as better English teachers when asked whether they preferred to
have NTs or NNTs. The rest thought it would be more “suitable to have NNTs during the
early stages of L2 learning process” as they “benefit from Turkish explanations a lot. We
assume that that result would be nearly same in other countries in the same conditions.

There is no doubt that there is inevitable difference between native teacher (NT) and nonnative teacher (NNT) as mentioned above. However, I will try to show the differences

�between the non-native English speaking teachers who are local teachers and foreign teachers.
We will also try to mention foreign teachers` effectiveness as non-native teachers.

7
8
9

10
11

Chapter 2

Status of the non-native English teachers

12
There is no doubt that native speakers of a language have a feel for its nuances, are
comfortable using its idiomatic expressions, and speak it fluently. Unfortunately, native
English speakers without teaching qualifications are more likely to be hired as ESL teachers
than qualified and experienced NNESTs, especially outside the United States (Amin, 2000;
Braine, 1999). But many in the profession argue that teaching qualifications should be
required of all English teachers, regardless of their native language (Nayar, 1994; Phillipson,
1996). Phillipson also considers NNESTs to be potentially the ideal ESL teachers because
they have gone through the process of acquiring English as an additional language. They have
first-hand experience in learning and using a second language, and their personal experience
has sensitized them to the linguistic and cultural needs of their students.

The native speaker fallacy has created a number of challenges with which NNTs must
contend in the workplace and in their daily lives. Although the majority of English teachers in
the world are not native speakers of English (Matsuda &amp; Matsuda, 2001), NNTs struggle for
equal treatment in the ELT profession. They face a number of challenges, including those
related to accent and credibility in the workplace.

According to one research, it is shown that considering NS teachers ideal teachers and trying
to prove themselves all the time affect the self-confidence of NNS teachers negatively as well.
For example, in a study with 78 NS and 18 NNS teachers working at different universities in
the United States, Moussu (2006) found that NS teachers were more confident than NNS

�teachers about the strengths of their teaching and language skills. NNS teachers, on the other
hand, were found to have low self esteem because of their limited knowledge of American
culture and foreign accents.

Although NNS teachers constitute 80% of the total ELT

workforce worldwide, they are “typically treated as second class citizens in the world of
language teaching”. Rajagopalan (2006) believes this is due to the fact that native speakers are
usually regarded as the only reliable source of “authentic “ language and that the target
language is considered to be “whatever the native speakers speak”. In the meantime NS
teachers are often hired with little or no teacher education because of an “automatic
extrapolation from competent speaker to competent teacher-based on linguist grounds alone”
(Seidlhofer, 1999). Studies carried out in the US (Mahboob et al., 2004), UK (Clark and
Paran, 2007), and Turkey (Celik, 2006) have all shown that being a native speaker is
important for employers of English teachers, especially in private language schools and
universities.

It might be true that non-native teacher can teach better English than the native speakers. That
is because they have struggled themselves to learn that language. They know exactly where
learners lack and where they make mistakes often. They are also aware of many more
techniques of learning to speak which is not the case with the native speakers. Most nonnative speakers have degrees in language teaching and many years of experience, whereas
many native speakers either have little language teaching qualifications or little experience.

According to Ulku and Derin (2010), the analyses in general revealed a similar picture
regarding Turkish teachers‟ opinions on NS/NNS dichotomy when they start teaching. At first
they feel hostile towards the system of admission, but they accept the superiority of NS
teachers. They also realize that as English language teachers they can be as successful as NS
teachers and this awareness seems to increase their self-esteem. They feel annoyed by the
situation they are in, while accepting is as it is and even feel “lucky” as they are given a
chance to work with NS teachers in the same institution.

�13
14
15
16

17
18

Chapter 3

Perceptions of being a Non-native Teacher (NNT)

Language acquisition is influenced by the complex interactions of a number of variables
including materials, activities, and evaluative feedback. That is why all language teachers
believe that a central characteristic of good language teaching and good language teachers is
the fact that they place a great importance on students‟ needs, interests, likes and dislikes.
Teachers‟ knowledge about the subject matter and pedagogy plays an important role in
responding those needs, and is one of the sources of motivation for further development.
Willingness and a desire for continuous improvement have been considered as some of the
characteristics of autonomous teachers (McGrath, 2000). Language teachers should have a
desire to learn more about their profession. They may look for ways to further develop
professionally, and will be open to new ideas on how to do so on their own or with
colleagues.

Teacher may feel that they have to stick to the curriculum and follow the syllabus more
closely. But they should find extra activities that are appropriate for students. It is better to
keep in mind the aims while trying to motivate the students. Supplementing the course book
by looking for materials and activities may help to respond students‟ problems and needs.
Activities that activate students‟ previous knowledge enhance their learning and motivate
them, and that foster the real use of the language through communication.

�19

3.1 NNS Teachers’ Self-perceptions

It can be claimed that due to their lower language proficiency and different teaching behavior
in comparison with their NS counterparts; research on students‟ perceptions indicates that
they tend to be more supportive of NNS teachers the longer they are taught by them (Enric,
2005).
According to one the study done by Ulku and Atay (2010), it was mentioned that “I‟m-not-anative speaker” syndrome is common among NNS teachers and this has negative
consequences on their confidence as they feel inferior and inadequate when they compare
themselves to their L1 colleagues

Institutions offering English language programs often promote themselves as employing NS
teachers and advertisements for teaching positions often require that applicants are native
speakers implying that NS teachers are preferable in some way. The reason for the
commercial preference for NS teachers appears to be that despite the academic arguments and
evidence there is still a broad social acceptance of the native speaker model (Pacek, 2005;
Thornburry, 2006). Such institutions advertise that all of their teachers are native speakers in
order to attract attention from students and parents, and increase their enrollment rates. Native
speaker teachers are generally paid much more than their non-native speaker counterparts and
get extra benefits, like lodging.

20

3.2 NNS Teachers in The Classroom

Having the knowledge of two or more languages in one mind and using another language for
any purpose have implications for language teaching. There might be pros and cons of native
and NNS teachers from the students‟ perspective. NNs teachers may have some problems in
lexical and phonological way. But at the first steps, learners may prefer their local teachers.
Thus they should explain some grammar structures and some words may be translated into
native language.

�The role of the mother tongue in the second language classroom is very important. Ernesto
Macaro (2005) provides answers to questions related to the reasons that make code-switching
(by definition only available to the bilingual teacher) a contentious issue in the L2 classroom
and the purposes and frequency of code switching. He finally advances a pedagogical
proposal based on an interaction between functionally based code switching (the use of the L1
is beneficial because it facilitates classroom interaction or improves the learning of the L2 or
both.

21

3.3 Students’ Perceptions of NNS Teachers

Most schools do not have good facilities for second language learning. In many cases,
teachers use the most convenient textbooks available on the market, without a prior and
proper assessment of their suitability in terms of the very specific needs of the learners. In
addition, the learners themselves are not often aware of the fact that many professions require
particular linguistic skills that they must learn. In terms of language acquisition, students must
be competent in order to learn second language.

Because of the syllabi students have two or three English classes a week. It is not easy for
both NS and NNS teachers to make students be interested in second language. As a foreigner
NNS teacher may lead them use the target language before, during and after the classes. That
is why Bosnian students feel themselves have to talk in English as if they were talking to NS
teachers.

�22
23
24

Chapter 4

Effectiveness of being a Non-native Teacher (NNT)

I am a Turkish who was taught English as a foreign language by local Turkish teachers from
middle to high school. Then, I graduated from one of the Turkish universities. Maybe I should
confess something. While studying in university, we had no chance to use our target language
out of the lessons. We were all Turkish students and we had mostly Turkish professors. Late
90s, we had no opportunity to access the Internet, as well.

Thanks to the technology, there are now a lot of opportunities to reach the sources of English
in order to improve your language. You can keep in touch your friends in worldwide through
the Internet.

I have been teaching English for ten years, and I have had the opportunity of living in a
foreign country for three years. As a non-native speaking English teacher, I can clearly say
that being in Bosnia as a Turkish man makes me happy in my classes and satisfies me that I
am teaching English to my students. I have been working in a private school where the
wealthier parents send their children to. It is similar to public schools, but since parents pay

�more for their child's education, classes are smaller, more teaching resources are available,
and expectations are higher. However, as a foreign teacher you must meet higher
requirements to land a job here. Furthermore, in the classes the only meeting point between
you and your students is the target language - English. I am not going to compare here
effectiveness of native and non-native English teachers. But I can assume that there is
difference between me who is a foreigner and local teacher who is from the same country, as
well.

As it can be seen in the study (Gorsev, 2008) that learners tend to use their mother language
in order to communicate with the teacher during the lesson. It may seem unnatural to talk to a
Turkish man in English. The local teachers, inevitably, response them in native language.
During the class there is no way for me to use only the target language, English. In recess
time, lunch time or in after school activities and field trips students feel like talking or using
English to communicate with me. Thanks to the Internet I can keep in touch with them
through the chat rooms, msn or facebook.

There are also a lot of advantages being in this country. Learning a new language, a new
culture and new customs of people in this country makes me understand how the learners feel
when they are learning English. For example, in Bosnian language -učiti- means both to teach
and to learn. In order to understand what kind of difficulty a Bosnian learner has while
learning those words it is good to experience of learning Bosnian language.

As I am foreigner, the challenges that an English teacher may face may not be so important
for me, especially pronunciation and vocabulary. Somehow I figured out that cultural
differences are very important to teach American or English culture to Bosnian students. For
instance, the word uncle means brother of your mother or your father. On the other hand, both
in Bosnian and Turkish there two different words to address them each amica and dayica,
amca and dayı, respectively.

�Conclusion
As a foreigner, I should consider the advantages of being in this country and I should learn
one more language, so that I can see the difficulties that learners may face to while learning
English. When I started learning Bosnian, I figured out that learning a language wasn‟t easy.
Long time ago I learned English and I had never considered that learners could have had
problems. No matter I am native or non-native teacher, as long as I have interest,
responsibility and willingness to help students I am a suitable teacher of a foreign language.
Finally, it can be claimed that both native and non-native teachers should go through the
process of learning at least one more language.

�References
Amin, N. (2000). Negotiating nativism: Minority immigrant women ESL teachers and the
native speaker construct (Doctoral dissertation, University of Toronto, Canada, 2001).
Dissertation Abstracts International, 61, A 4579.
Braine, G. (Ed.) (1999). Non-native educators in English language teaching. Mahwah, NJ:
Erlbaum.
Celik, S. (2006). A concise examination of the artificial battle between native and nonnative
speaker teachers of English in Turkey J. Kastamonu Educ. Fac. 14:371-376.
Clark, E, Paran, A. (2007). The employability of non native speaker teachers of EFL: A UK
survey. Syst. 35 pp.407-430.
Enric, L. (2005). Non-Native Language Teachers. Perceptions, Challenges and Contributions
to the Profession. New York: Springer. xii + 314 p.
Gorsev, I. (2008). EFL Learners’ Interaction with Native and Non-native EFL Teachers.
Macaro, E. (2005) Codeswitching in the L2 classroom A communication and learning
strategy. In E. Llurda (ed.) Non-Native Language Teachers: Perceptions, Challenges, and
Contributions to the Profession Boston, MA: Springer. pp. 63-84
McGrath, I. (2000). Teacher Autonomy. InSinclair, B., McGrath, I., and T. Lamb
(Eds.)Learner Autonomy, Teacher Autonomy: FutureDirections. Harlow, UK: Longman
pp.100-110.
Mahboob, A, Uhrig K, Newman, KL, Harford, BS. (2004). Children of lesser English: Status
of non-native English speakers as college level English a second language teachers in the
United States. In L. Kamhi-Stein (Ed.) Ann Arbor: University of Michigan Press pp. 110120.
Matsuda, A. &amp; Matsuda, P. K. (2001). Autonomy and collaboration in teacher education:
Journal sharing among native and nonnative English-speaking teacher. The CATESOL
Journal, 13(1), pp. 109-121.

�Matsuda, P. (1999). Teacher development through NS/NNS collaboration. TESOL Matters,
9(6), pp. 1-10.
Moussu, L. (2006). Native and non-native English speaking English as a second language
teachers. Doctoral Thesis, Purdue University, West Lafayette.
Medgyes, P. (1994) The Non-Native Teacher London: MacMillan Publishers, Ltd.
Nayar, P.B. (1994). Whose English is it? TESL-EJ, vol.1, April.
Pacek, D. (2005). Personality not nationality: Foreign students’ perceptions of a non-native
speaker lecturer of English at a British University. In E Lurda (ed.), pp. 243-262.
Phillipson, R. (1996). ELT: the native speaker’s burden? ELT Journal, 46(1), pp. 12-18.
Rajagopalan, K. (2006). Nonnative speaker teachers of English and their anxieties.
Ingredients for an experiment in action research. In E Llurda (ed.), (pp. 283-303). New
York: Springer.
Samimy, K, &amp; Brutt-Griffer, J. (1999). To Be a Native or Non-Native Speaker: Perceptions of
“Non-Native” Students in a Graduate TESOL Program. In Non-Native Educators in
English Language Teaching, pp. 127-144.
Seidlhofer, B. (1999). It is and undulating feeling. The importance of being a non-native
teacher of English, VIEWS, 5, pp. 63-80.
Thornburry, S. (2006). An A-Z of ELT. Macmillan: Oxford.
Ulku, O. and Derin, A. (2010). Challenges of being a non-native English teacher. Educational
Research Vol. 1(5), pp. 135-139.

�Curriculum Vitae
Harun BAŞTUĞ was born on 21 December 1977, in Kirikkale. He received his BA
degree in English Language Teaching in 2000 from Marmara University. He worked as an
English teacher in Language Schools from 2000 to 2006, in International School from 2007 to
2008, and in a Private School from 2008 to 2010. Since September 2010, he has been a
research assistant at a private university.

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                <text>BASTUG, Harun</text>
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          <element elementId="94">
            <name>Abstract</name>
            <description>A summary of the resource.</description>
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                <text>In the field of English language teaching (ELT), a growing number of teachers are not native speakers of English. According to current estimates, about eighty percent of English teachers worldwide are non-native speakers of the language. The term non-native English speaking teacher (NNEST) has created a division among professionals in the ELT profession. English is taught commonly in many countries where English is spoken as a second language or spoken widely. Therefore, being a non-native English speaking teacher in your own country, where English is the target language between you and your own local learners and inevitably your mother tongue is used partly during the classes, is different from in a foreign country where English is mutual language between you and your learners. In that case, English is the only way for you and your learners in order to communicate in every part of school life, in school activities or even in your daily life. Learners feel like talking just the target language before, during, and after the classes unavoidably. We can see the differences of learning English through a local non-native English speaking teacher.  Key words: English language teaching, NNEST  </text>
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NonPeerReviewed</text>
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                <text>Perceptions of Native and Non-native English Speaking Teachers of English about English as a Lingua Franca (ELF) </text>
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                <text>Akyel, Ayşe
Inceçay, Görsev</text>
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                <text>The status of English as a lingua franca (ELF) has been accepted as an increasingly popular debate in Applied Linguistics and current English language teaching (ELT). A major body of research in the study of ELF has concentrated on the consequences of native speaker norms in respect to ELT. It has been suggested that native speaker norms of English have been losing relative importance in international academic fields. Despite the increasing research interest in ELF focusing on non-native speakers and their use of English, there has been little empirical investigation into the perceptions of both native and non-native English speaking teachers of English about ELF. On the other hand, the students in non-English speaking countries are learning English to be able to communicate with other native or non-native English speakers in both intra and international contexts. In other words, they need to be taught ELF. Thus, the main goal of the teachers has to prepare them to function appropriately in these contexts. This necessity reminds the role and importance of ELF in English language teacher education programs. Therefore, the present study investigated two significant aspects related to ELF. First, the perceptions of native and non-native speaking teachers of English about ELF were investigated. As a second objective, the perceptions of the same group of teachers regarding the role and importance of ELF in English language teacher education were examined. The participants consisted of 100 non-native, 30 native speaking teachers of English working at two respective universities in Istanbul. The data came from a background questionnaire, a questionnaire regarding the perceptions of English language teachers developed by the researchers and semi-structured interviews.</text>
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                    <text>BİLDİRİ ÖZETLERİ - UTEK 2014

PERCEPTIONS OF PSYCHOLOGICAL INTIMIDATION OF
TEACHERS
THAT WORKING IN SECONDARY SCHOOLS
Said KINGIR
Siirt University, Siirt / Türkiye
Muammer MESCİ
Düzce University, Düzce / Türkiye
Sema BAZANCİR
Siirt Universitesi, Siirt / Türkiye
Lecturer Mehmet Nuri SEVGİN
Siirt University, Siirt / Türkiye
Keywords: Psychological Intimidation, Secondary Schools, Teachers.
ABSTRACT
The purpose of this study is to determine the perceptions of the teachers
working in secondary schools about psychological intimidation and to identify
if these perceptions vary in some variables. The way of the study rely upon a
quantitative method. The data is collected by a questionnaire technique
prepared by the data source of the study. The questionnaire was implemented
to 312 teachers working in secondary schools under the Ministry of Education
in the province of Diyarbakir. The data collected through questionnaires was
coded and tabulated values of the data by the statistical program.
According to the survey, the teachers working in secondary schools have low
levels of perceptions of psychological intimidation. Education has been found
to be effective in detecting the status of mobbing. Between psychological
intimidation and sex, marital status, seniority, as well as other variables, a
significant relationship could not be found.

30

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                <text>KINGIR, Said
MESCİ, Muammer
BAZANCİR, Sema
SEVGİN, Mehmet Nuri</text>
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                <text>The purpose of this study is to determine the perceptions of the teachers  working in secondary schools about psychological intimidation and to identify  if these perceptions vary in some variables. The way of the study rely upon a  quantitative method. The data is collected by a questionnaire technique  prepared by the data source of the study. The questionnaire was implemented  to 312 teachers working in secondary schools under the Ministry of Education  in the province of Diyarbakir. The data collected through questionnaires was  coded and tabulated values of the data by the statistical program.  According to the survey, the teachers working in secondary schools have low  levels of perceptions of psychological intimidation. Education has been found  to be effective in detecting the status of mobbing. Between psychological  intimidation and sex, marital status, seniority, as well as other variables, a  significant relationship could not be found.</text>
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                <text>International Burch University</text>
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                    <text>Perceptions of Turkish Language Teachers’ Competence in Multicultural and Multilingual
Education Environment
Aynur Gürsoy &amp; Leyla Şentürk
University Of South-East Europe Lumina/ Romania
Key words: Turkish teacher competences, teaching language in multicultural and
environment, the perceptions of competence, Turkish as a foreign language

multilingual education

ABSTRACT
The aim of this research is to determine the perceptions of Turkish Language teachers’ competence, teaching
Turkish as a second language, and to find out the new methods to increase their competence. Qualifications of
becoming a teacher are put forth by specialists after doing many studies about second language teachers. However
scientific researches about teaching Turkish in foreign countries and Turkish as a second language in multicultural
and multilingual Education are brand new. Educators, to be trained for the teaching Turkish as a second language
course, must be equipped with requirements of the course. In this study, a questionnaire was going to be prepared
by analyzing data of perceptions of Turkish language teachers’ competence and specialists’ views. The
questionnaire was going to applied to Turkish language teachers, work in international schools and language centers
in foreign countries. After identifying the fields which teachers were inadequate, resources for their professional
developments were going to be determined. Second language teachers face with different cultures. Turkish and
foreign studies, about teaching a second language in multicultural education and teachers’ competence, is reviewed
because multicultural is concept, including cultural differences.

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SENTURK, Leyla</text>
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                <text>Key words: Turkish teacher competences, teaching language in multicultural and multilingual education environment, the perceptions of competence, Turkish as a foreign language  ABSTRACT  The aim of this research is to determine the perceptions of Turkish Language teachers’ competence, teaching Turkish as a second language, and to find out the new methods to increase their competence. Qualifications of becoming a teacher are put forth by specialists after doing many studies about second language teachers. However scientific researches about teaching Turkish in foreign countries and Turkish as a second language in multicultural and multilingual Education are brand new. Educators, to be trained for the teaching Turkish as a second language course, must be equipped with requirements of the course. In this study, a questionnaire was going to be prepared by analyzing data of perceptions of Turkish language teachers’ competence and specialists’ views. The questionnaire was going to applied to Turkish language teachers, work in international schools and language centers in foreign countries. After identifying the fields which teachers were inadequate, resources for their professional developments were going to be determined. Second language teachers face with different cultures. Turkish and foreign studies, about teaching a second language in multicultural education and teachers’ competence, is reviewed because multicultural is concept, including cultural differences.</text>
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                    <text>PROCEEDINGS

______ The 5th International Symposium on Sustainable Development_______

ISSD 2014

PERFORMANCE ANALYSIS OF FEATURE RANKING ALGORITHMS ON
MICROARRAY DATASETS
Uğur Turhal1, Murat Gök2, Suat Onur3, Sebahattin Babur4
1,2,4

1

Department of Computer Engineering
3
Department of Informatics,
1,3
BalıkesirUniversity
2,4
Yalova University

ugurturhal@balikesir.edu.tr
3
suatonur@balikesir.edu.tr

2

murat.gok@yalova.edu.tr
4
sebahattin_babur@hotmail.com

ABSTRACT
The microarray datasets host a lot of information which influence the problems with different
the degree. Choosing the minimum number of features (attributes) which are representing of
these data structures as an optimization problem. Nowadays, the microarray datasets are
utilized in the diagnose of cancer diseases. However, their size may cause the curse of
dimensionality for machine learning methods during classification(Loris, N. et al., 2012).
Therefore, they need more computing power and long processing times. Hence, reducing the
number of attributes will be fundamental step to solve this problem. In this study, "Colon" and
"Ovarian" datasets which are used frequently in literature were processed with various feature
ranking algorithms. The best “k” number features, which chosen after ranking were classified
with "Naive Bayes” and "SVM(Linear) classifiers. The evaluation of the system was realized
on "Kappa", "MCC" and "Accuracy" scores and "ROC" graphs. This study aims to provide
helpful information to the researchers who work on the same datasets.
Keywords: Microarray datasets, Feature ranking, Naive Bayes, SVM

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I.

The 5th International Symposium on Sustainable Development_______

PROCEEDINGS

INTRODUCTION

DNA microarray technology has proven to be an important breakthrough in molecular
biology. This rapidly maturing technology is providing scientists with a means of monitoring
the expression of genes on a genomic scale(Chee, M.et al. 1996).
Cancer is a broad group of diseases involving unregulated cell growth. In cancer, cells divide
and grow uncontrollably, forming malignant tumors, which may invade nearby parts of the
body. Not all tumors are cancerous; benign tumors do not invade neighboring tissues and do
not spread throughout the body. There are over 200 different known cancers that affect
humans (Cancer Research UK, 2012).
In 2007, cancer caused about 13% of all human deaths worldwide (7.9 million). Rates are
rising as more people live to an old age and as mass lifestyle changes occur in the developing
world (Jemal A, et al. 2011). According to American Cancer Society, about 1,665,540 new
cancer cases are expected to be diagnosed and about 585,720 of them are expected to die in
America, 2014(American Cancer Society, 2014).
The American men-women who died owing to different cancer diseases between 1930 and
2010 are shown in the following figures I-II.

Figure I: Age-adjusted Cancer Death Rates, Males by Site, US, 1930-2010(American Cancer
Society, 2014).

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ISSD 2014

Figure II: Age-adjusted Cancer Death Rates, Females by Site, US, 1930-2010(American
Cancer Society, 2014).
The microarray data sets host a lot of information which influence the problems with different
the degree. One of important application area is disease prognostication(Golub, T.R. et al.
1999).Hence, choosing the minimum number of features (attributes) which are representing of
these data structures as an optimization problem.
In our former studies, we have improved the performance of classification with using
ensemble classification methods on "Colon" and "Thyroid" microarray datasets(Akbaş, A. et
al. 2013;Babur, S. et al. 2012;Turhal, U. et al. 2013). In this study, “Ovarian” and
"Colon"datasets which are used frequently in literature were processed with various feature
ranking algorithms. The best “k” (150 and 300) number features, which chosen after ranking
were classified with "Naive Bayes" and "SVM(Linear)" classifiers. The evaluation of the
system was realized on "Kappa", "MCC" and "Accuracy" scores and "ROC" graphs.
Finally all results have been compared and best ranking methods and classifiers for each
datasets are shown in the tables.
II.

MATERIAL AND METHODS

In this study, several experiments have been conducted on 2 publicly available datasets.
Below were provided a brief description for each dataset. (the salient features of each dataset
are summarized in Table I):
Table I: Characteristics of the datasets used in the experiments: the first column presents the
number of features (#F), and the second column reports the number of samples (#S)(Loris, N.
et al.2012).
Dataset
Ovarian (O)
Colon (C)

#F
15154
2000

#S
253
62

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ISSD 2014

PROCEEDINGS

Ovarian dataset (O): the ovarian dataset contains 253 samples and two class are considered:
91 samplesare normal and 162 samplesare ovarian cancers(Petricoin,E.F. et al. 2002);
Colon (C): the colon dataset contains 62 samples and two class are considered: 22 samples
are normal and 40samples are tumor cancers(Alon,U. et al.1999);
A. Feature Ranking
Many feature ranking methods are using frequently in literature. However all methods have
advantages and disadvantages while comparing each others. All feature ranking methods that
used in this study are described below;
1. Bhattacharyya
The Bhattacharyya coefficient is an approximate measurement of the amount of overlap
between two statistical samples. The coefficient can be used to determine the relative
closeness of the two samples being considered. It is calculated by following
equation(Djouadi, A. et al. 1990);
(1)
Where,
samples
number of partitions
,

numbers of members of samples

and

in the

partition.

2. T-Test
T-test is one method for testing the degree of difference between two means in small sample.
It uses T distribution theory to deduce the probability when difference happens, then judge
whether the difference between two means is significant (Jiaxi, L. 2010). It is calculated by
following equation;
(2)

Where,
= Average of first set of values
S1 = Standard deviation of first set of values
n2 = Total number of values in first set

= Average of second set of values
S2 = Standard deviation of second set of
values
n2 = Total number of values in second set

3. Wilcoxon
Absolute value of the standardized u-statistic of a two-sample unpaired Wilcoxon test, also
known as Mann-Whitney U test, is a non-parametric test of the null hypothesis that two
populations are the same against an alternative hypothesis, especially that a particular
population tends to have larger values than the other (Wilcoxon, F. 1945).It is calculatedwith
two formulas below (Mann, H.B. and Whitney, D.R. 1947);
(3)

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ISSD 2014

(4)
Where,
: the sample size for sample 1
: the sample size for sample 2
: the sum of the ranks in sample 1
: the sum of the ranks in sample 2
: observation and the total ranking number
: observation and the total ranking number
for sample 1
for sample 2
B. Feature Selection
In this section, the features of microarray datasets that used in the work are ranked according
to significance level. After that, first k number features are selected and created a new dataset.
Feature selection process is repeated for k=150 and k=300.
C. Classifiers
The classifiers used in this study are described below;
1.

Naïve Bayes

Naive Bayes is the simplest form of Bayes Net. All features are independent from given class
variables. This method is called conditional independency (Zhang, H. 2005).
(5)
2. Support Vector Machines (with Linear Kernel)
The support vector machine or SVM, first described by Vapnik and collaborators in
1992(Boser, B.E. et al. 1992), has rapidly established itself as a powerful algorithmic
approach to the problem of classification within the larger context known as supervised
learning (William H. 2007).
D. Performance Measurement
In order to increase reliability of results, some evaluation methods have been used that found
acceptance in literature. These methods;
1.

Accuracy (Acc)

The accuracy of a measurement system is the degree of closeness of measurements of a
quantity to that quantity's actual (true) value (Taylor, R. 1999). It is calculated by following
equality;
(6)
Where,
Number of real positives

Number of real negatives

Number of unreal positives

Number of unreal negatives

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ISSD 2014

2.

PROCEEDINGS

Kappa

Cohen's kappa coefficient is a statistical measure of inter-rater agreement or inter-annotator
agreement for qualitative items (Cohen, J. 1960). Bigger difference means better result. It is
calculated by following equality;
(7)
Adding proportion of observed compatibilities for two data,
Probability of emergence by coincidence for this compatibility
Kappa result
3.

Matthews Correlation Coefficient (MCC)

The measure was introduced in 1975 by Matthews (Matthews, B.W. 1975).The Matthews
correlation coefficient (MCC) is using as a measure of the quality of binary (two-class)
classifications.Bigger difference means better result. It is calculated by following equation;
(8)
are explained under the Accuracy header.
4. ROC
It is a method used for showing performance of binary classifier with graphic (Swets, A.
1996). It is calculated by following equation;
(9)
Where,
(10)
(11)
are explained under the Accuracy header.
E. Classification and Results
The datasets that obtained in section B are classified with classifiers which described in
section C. Ten-fold cross-validation method was used during the classification. The obtained
outcomes are shown in the tables.
The accuracy results that obtained by the raw datasets are shown in the Table II.
Table II: The accuracy results of full datasets.(%)

Naive Bayes
SVM (Linear)

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Ovarian
k = 15154
92,4901
100,0000

Colon
k = 2000
53,2258
82,2581

�PROCEEDINGS

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This results show that Linear SVM is better than the Naive Bayes for each dataset. This is
because the Linear SVM is appropriate to the large size datasets (McCue, R. 2009).
Classification performance results of the best 150 features for each datasets are shown the
tables below. The most effective values are shown bold in a yellow cell.
Table III: Ovarian dataset results (feature count “k” = 150)
Ovarian

NaiveBayes

SVM - Linear

k = 150

Acc (%) MCC Kappa

Acc (%)

MCC

Kappa

bhattacharyya

98,4190

0,966 0,9655

100,000

1,000

1,0000

ttest

97,6285

0,949 0,9480

100,000

1,000

1,0000

wilcoxon

88,5375

0,761 0,7576

99,2095

0,983

0,9829

Table IV: Colon dataset results (feature count “k” = 150)
Colon

NaiveBayes

SVM - Linear

k = 150

Acc (%) MCC Kappa

Acc (%)

MCC

Kappa

bhattacharyya

82,2581

0,656 0,6384

79,0323

0,547

0,5467

ttest

75,8065

0,560 0,5250

80,6452

0,587

0,5857

wilcoxon

72,5806

0,453 0,4411

69,3548

0,352

0,3506

May be reached the following outcomes by referencing the above values;
 In all datasets, the highest results for Naive Bayes classifier were obtained by using
bhattacharyya method.
 In Ovarian dataset, the highest results of best 150 features were obtained by using Linear
SVM classifier.
The ROC graphs of the above classification results are given below;
Figure III: Ovarian dataset ROC graph (feature count “k” = 150)

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Figure IV: Colon dataset ROC graph (feature count “k” = 150)

The classification results and ROC graphs of first 150 feature are given above. The results of
the best 300 features are given below.
Table V: Ovarian dataset results (feature count “k” = 300)
Ovarian

NaiveBayes

k = 300

Acc (%) MCC Kappa

Acc (%)

MCC

Kappa

bhattacharyya

96,4427

0,923 0,9226

100,0000

1,000

1,0000

ttest

96,8379

0,931 0,9310

100,0000

1,000

1,0000

wilcoxon

83,3992

0,656 0,6514

97,2332

0,941

0,9404

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Table VI: Colon dataset results (feature count “k” = 300)
Colon

NaiveBayes

SVM - Linear

k = 300

Acc (%) MCC Kappa

Acc (%)

MCC

Kappa

bhattacharyya

79,0323

0,628 0,5884

79,0323

0,538

0,5373

ttest

77,4194

0,605 0,5607

82,2581

0,617

0,6164

wilcoxon

62,9032

0,311 0,2849

74,1935

0,436

0,4364

May be reached the following outcomes by referencing the above values;
 In both of datasets,the highest results of best 300 features were obtained by using Linear
SVM classifier.

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The ROC graphs of the above classification results are given below;
Figure V: Ovarian dataset ROC graph (feature count “k” = 300)

Figure VI: Colon dataset ROC graph (feature count “k” = 300)

III. CONCLUSION
"Average Accuracy Results Table" is formed with the average of the results which given in
the above tables.The averagedtableis given below;
Table XII: Average Accuracy Results Table (“k” is the number of features)
Average Accuracy Results
Datasets

k

Bhattacharyya

T-Test

Wilcoxon

150

99,2095

98,8145

93,8735

300

98,2214

98,4190

90,3162

150

80,6452

78,2259

70,9677

300

79,0323

79,8388

68,5484

Ovarian

Colon

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Where,
The greencells show the highest average accuracy resultsof the Ovarian dataset.
The bluecells show the highest average accuracy results of theColon dataset.
Above table was created with the averaged results of all classifiers for each method.
Table XIII: Average Accuracy Results Table (“k” is the number of features)
k = 150 Accuracy Results (%)

Wilcoxon (Ovarian)

Naive Bayes

Linear SVM

88,5375

99,2095
(12)

Following conclusions are reached when considering the obtained average accuracy results
 Ranked Colon dataset results has been increased in comparison with raw dataset results.
Hence, ranking-selection algorithms are quite useful for this dataset.
 Ranked Ovarian dataset results has been decreased a little in comparison with raw dataset
results.Hence, ranking-selection algorithms is useful for the purpose of shorten the
classification duration.
 Also, the effect of the Wilcoxon method was observed. This method is quite ineffective for
all used datasets. Hence, it is not useful for these datasets.
At the next works; performance improvement can be realized with using same feature ranking
algorithms and datasets. Also, new feature ranking methods can be used in the work.All
processes can be repeated with less number of features. Roc and Accuracy values can be
increased with using ensemble classifiers. Thus, the advantages and disadvantages of used
each methods can be determined clearly.
IV. REFERENCES
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Elektrik-Elektronik ve Bilgisayar Mühendisliği Sempozyumu, 425-428.
Boser, B. E. et al. (1992) A training algorithm for optimal margin classifiers. Proceedings of the fifth annual
workshop on Computational learning theory(COLT), 144.
Cancer Research UK (2011, May 11) How many different types of cancer are there? CancerHelp UK.
Chee, M. et al. (1996) Assessing genetic information with high-density dna arrays. Science,274, 610–614.

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Cohen, J. (1960) A coefficient of agreement for nominal scales. Educational and Psychological Measurement,
20 (1), 37-46.
Djouadi, A. et al. (1990) The quality of Training-Sample estimates of the Bhattacharyya coefficient. IEEE
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Golub, T.R. et al. (1999) Molecular classification of cancer: class discovery and class predition by gene
expression monitoring. Science. 286, 531–537.
Jemal, A. et al. (2011) Global cancer statistics. CA: a cancer journal for clinicians,61 (2), 69–90.
doi:10.3322/caac.20107. PMID 21296855.
Jiaxi, L. (2010) The Application and Research of T-test in Medicine. Networking and Distributed Computing
(ICNDC).
Loris, N. et al. (2012) Combining multiple approaches for gene microarray classification. Oxford University
Press, 28 (8), 1151-1157.
Mann, H.B. and Whitney, D.R. (1947) On a test of whether one of two random variables is stochastically larger
than the other. Annals of Mathematical Statistics, 18, 50-60.
Matthews, B. W. (1975) Comparison of the predicted and observed secondary structure of T4 phage lysozyme.
Biochimica et Biophysica Acta (BBA) - Protein Structure 405 (2), 442–451.
McCue, R. (2009) A Comparison of the Accuracy of Support Vector Machine and Naive Bayes Algorithms In
Spam Classiﬁcation. University of California at Santa Cruz, Nov 29.
Petricoin, E.F. et al. (2002) Use of proteomic patterns in serum to identify ovarian cancer. Lancet, 359, 572–577.
Swets, A. (1996) Signal detection theory and ROC analysis in psychology and diagnostics. Lawrence Erlbaum
Associates, Mahwah, NJ.
Taylor, R. (1999) An Introduction to Error Analysis: The Study of Uncertainties in Physical Measurements.
128–129.
Turhal, U. et al. (2013) Performance Improvement for Diagnosis of Colon Cancer by Using Ensemble
Classification Methods. The International Conference on Technological Advances in Electrical, Electronics and
Computer Engineering (TAEECE 2013), Konya, Turkey.
Wilcoxon, F. (1945) Individual comparisons by ranking methods. Biometrics Bulletin,1, 80-83.
William, H. et al. (2007) Support Vector Machines Numerical Recipes: The Art of Scientific Computing (3rd
ed.). Cambridge University Press, New York.
Zhang, H. (2005) Exlporing Conditions for the Optimality of Naive Bayes. International Journal of Pattern
Recognition and Artificial Intelligence,19 (2), 183-192.

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Uğur TURHAL was born in Trabzon, Turkey in 1988. He was graduated with Bachelor’s degree
from Marmara University in 2011. He is a graduate student in the Computer Engineering Department
of Yalova University, Turkey. Also, He is working as a computer specialist at Balikesir University,
Turkey. Interested areas are; Bioinformatics, Signal Processing, Microarray Datasets, Cancer
Dieseases
Murat GÖK performed a Master in Computer Sciences at Mugla University (Turkey). After his
Master thesis on the decision support systems, he began in 2006 a PhD in Computer Sciences at
Sakarya University (Turkey). In June 2011, he defended his PhD thesis entitled “Prediction of HIV-1
Protese Cleavage Sites with New Techniques”. Having completed his PhD, he became an assistant
professor at the department of computer engineering on Yalova University(Turkey).His research
interests are bioinformatics, machine learning algorithms and theories, computer programming. He has
several papers on bioinformatics. He currently has several master students.
Suat ONUR was born in Kütahya, Turkey in 1972. He was graduated with Bachelor’s degree from
Gazi University in 1995. He is a graduate student in the Electric-Electronic Engineering Department
of Balikesir University, Turkey. Also, He is working as a lecturer at Balikesir University, Turkey.
Interested areas are; Bioinformatics, Internet Programming, Embedded Systems
Sebahattin BABUR was born in Bursa/Turkey in 1988. He was graduated with Bachelor degree in
2011 from Marmara University. He is a graduate student in the Computer Engineering Department of
Yalova University, Turkey. Also, he has been working as Technical Sales Engineer for 1 year at
Beckhoff Automation Company, Turkey. His areas of interest: Solution of Bioinformatics Problems,
Image Processing, The Design of Electronic Circuits, Industrial Automation Technology

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                <text>205 | P a g e  PERFORMANCE ANALYSIS OF FEATURE RANKING ALGORITHMS ON MICROARRAY DATASETS  Uğur Turhal1, Murat Gök2, Suat Onur3, Sebahattin Babur4  1,2,4Department of Computer Engineering  3Department of Informatics,  1,3 BalıkesirUniversity  2,4 Yalova University  1 ugurturhal@balikesir.edu.tr  2 murat.gok@yalova.edu.tr  3 suatonur@balikesir.edu.tr  4 sebahattin_babur@hotmail.com  ABSTRACT</text>
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                    <text>2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

Performance and Satisfaction of Work as Characteristics of Human Capital
(Comparative Analysis of Some Indicators of Human Capital in Several
Balkan Countries)
Alexi DANCHEV
Department of Economics and Administrative Sciences
Fatih University, Turkey
adanchev@fatih.edu.tr
Erkan ĠLGÜN
Department of Management
International Burch University, Bosnia and Herzegovina
eilguen@ibu.edu.ba
Abstract: The paper analyses the role of such elements of human capital as
performance and satisfaction of work for its further improvement. It is indicated that
due to its complex nature human capital is a core element in many sides of
development. Basic results of a survey of human capital carried out in Turkey,
Bosnia and Bulgaria are discussed. The multifarious effects of human capital are
analyzed indicating in particular the specific functions of performance and
satisfaction of work in its growth. From this perspective the authors look for a
broader vision of the role of satisfaction of work and its link with the performance to
improve the skill and knowledge regarded as basic indicators of human capital. The
conclusion is that despite regional differences the performance and satisfaction of
work are highly correlated with the income and the social setting within the team the
respondents work.

Introduction
The interest in the influence of human factors on economic growth and development is increasing,
which is result of many reasons. The main rationale maybe the understanding that while in the post-war
restoration of the world economy capital is of a crucial importance, nowadays human factors are decisive for the
success and survival in the sharply increasing competition in the global economy due to advantages given by the
new technologies. More and more the elements influencing human behavior in the reproduction process become
predominant in the theoretical and empirical studies on growth and development.
The present paper follows this tradition. It is aimed at tracing out the influence of such basic elements of
human capital as performance and satisfaction of job. We give short theoretical survey on the basic visions of the
role of performance and satisfaction of job in the human capital literature. Next we proceed with the empirical
study of the level of performance and satisfaction of job in three Balkan countries: Turkey, Bosnia and Bulgaria.
Finally we conclude.

The Theoretical Background
Human capital is the basic category, which reflects the contribution of labor to growth and
development. In the past it was interpreted as the level of education and experience (learning by doing, Arrow,
1962 and Sheshinski, 1967), which was complemented to the labor force indicators as for example the Harrodneutral technological progress, (Barro, and Sala-i-Martin, 2003).
While in the classic model of growth labor was included into the production function (the basic growth
model) as
Y = A(t)KαL1-α
the attempts to find more correct reflection of the labor contribution to growth resulted in the introduction of new
indicator – human capital as an exponential improvement of the quality of labor force mainly by means of
learning by doing mechanism.
Y = A(t)KαL[Leht)]1-α
ht
where e is the exponential improvement of the quality of labor force.
Nowadays it is clear that this very essential approach to such complicated factor of production as labor
is too far from outlining a realistic picture of the actual contribution of labor to growth. There are many reasons

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�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

to recommend the need for further improvements. First, human capital creation depends strongly on the health
status of the individuals, which is reflected by the health human capital indicator already commonly accepted in
the Development literature. The health is however not the only indicator necessary for more correct reflection of
labor force contribution to growth. People must be first of all satisfied with the current job they are employed
and next to be motivated to work further. Besides, we think that the job performance is standing on higher level
of contributive elements than satisfaction in sense than people may be motivated to work for many reasons one
of which can be the satisfaction to work.
Thus, we can complement the growth model with a new one, which describes the job performance as
JP = f(S, X1, X2, X3….Xn)
Where JP is the job performance
S – Satisfaction of work
X1, X2, X3 …Xn – factors influencing the performance.
The very satisfaction is however also function of other factors, some of which are common with the
performance model. So S = f(Z1, Z2, Z3…..Zn). We think of performance and satisfaction as subsets of human
capital set in which JP U S → HC.
Among the elements included into this set we can define:
1. Money paid for the job
2. Social surrounding
3. Social importance of the job
4. Nice spending of time
5. Team-working satisfaction feeling.
The choice of the variables was result of a scrutinize literature survey covering economic, social,
psychological and other studies on job performance and satisfaction. In most general terms job performance is
commonly identified with productivity. Kostiuk P. and Follmann D. (1989) are studying the effect of the on-thejob learning, experience and the individual characteristics on productivity regarding it as an indication of job
performance. Bishop (1990) however underlines that ―while job matching is an important phenomenon at most
small- and medium-sized establishments, it does not account for a significant share of the rise in average
productivity that occurs in the first year of tenure on the job‖.
The deeper roots of the job performance and satisfaction are coming from the value system of the
individuals, which origin was studying by Halaby (2003) paper of the link between the performance and the
entrepreneurial ability of ―the willingness to accept responsibility and the capacity to process information for the
purpose of effective problem-solving and decision-making under varying conditions‖. Halaby provides detailed
study of the entrepreneurial ability as a function of cognitive ability and talent, as well as ―decision-making and
problem-solving skills acquired through experience or schooling‖.
Wise (1975) early studies provide econometric estimations of job performance measured as the rate of
salary increase assumed to be adjusted ―to match individual performance‖. He found out that ―job performance,
as measured by rate of salary increase, was not only correlated with academic achievement but the evidence
suggested that mastery of academic subject matter contributed to an individual's ability to perform job-related
tasks‖.
Concerning the satisfaction of job a big variety of studies provide various evidences of its influence on
the formation of human capital. The attempts to develop a theory of job satisfaction dates back to 1970‘s with
incorporating differences in work values and perceived job characteristics as ―key explanatory variables‖
(Kalleberg, 1977). The theoretical backgrounds are empirically testing the relationship between job satisfaction
and such indicators as work values, job rewards associated with ―six dimensions of work-intrinsic, convenience,
financial, relations with co-workers, career opportunities and resource adequacy‖.
By highlighting the job satisfaction over the whole life-cycle of individuals Kalleberg and Loscocco
(1983) underline the importance of nonwork roles for explaining work-role outcomes. Two explanations are
formulated concerning the link between the age and job satisfaction: one that ―the relationship between age and
satisfaction is the result of generational differences in education and value systems (i.e., a cohort explanation)‖
and second, that ―this relationship is simply a function of older workers having moved into better jobs across
their careers (i.e., a life cycle explanation)‖. Janson and Martin (1982) find out that neither explanation is
adequate, leaving the question of what accounts for higher levels of satisfaction of older workers unresolved‖.
Since that time there is not a sufficient support of these two explanations.
Most of the literature however unambiguously indicates the direct link between education (the basic
factor of human capital) and job satisfaction. Glenn and Weaver (1982) empirically estimate that ―the total effect
of education is positive for both sexes but is considerably stronger for women than for men‖.

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Short Characteristics of Human Capital in the Balkan area
It is difficult to present a short characteristic of human capital in the Balkan area as it is a category with
multifarious dimensions. Normally the share of expenditure on education in GDP is regarded as the most general
indicator at least as a necessary precondition for generating of human capital. It is presented in table 1 for the last
two decades, which are a period of big transformations in the Balkans. Nevertheless, the dynamics of this
indicator shows that there is not a big gap between the Balkan countries and the rest of Euroarea and the middle
income countries.

Country

Years
1990

2000

2008

Albania

6

3

3

Croatia

7

4

5

Bulgaria

5

4

4

Greece

2

3

3

Romania

3

3

3

Serbia

..

2

4

Slovenia

..

6

6

Turkey

2

3

4

Euroarea

5

4

5

Middle income countries

4

4

4

Table 1: The share of total expenditure on education as a % of GDP.
Source: World Development Indicators on Line, (2010)
http://ddp-ext.worldbank.org/ext/DDPQQ/report.do?method=showReport
More synthetic measure of the state of human capital in the Balkan area is given by the UNDP‘s Human
Development index (HDI), which ―is a summary composite index that measures a country's average
achievements in three basic aspects of human development: health, knowledge, and a decent standard of living‖
(UNDP, 2010). The dynamics of this indicator for the last three decades (Table 2) unambiguously indicates
convergence of the Balkan area to the advanced Western European economies, which is a good precondition for
further improvement of the quality of human capital in the area. The detailed analysis of the basic components of
the HDI reveals various details indicating the difficulties in this process. Not only increased funding is needed in
the crucial sectors forming human capital, serious institutional adjustment is also required to overcome the
difficulties of the transformation process in the formally centrally-planned economies in the area.
HDI
rank
8
22
25
29
45
61
63
67
70

Country
code
FRA
DEU
GRC
SVN
HRV
BGR
ROM
SRB
ALB

76
79

BIH
TUR

Country name
France
Germany
Greece
Slovenia
Croatia
Bulgaria
Romania
Serbia
Albania
Bosnia
and
Herzegovina
Turkey

1980
0.876
0.869
0.844
..
..
..
..
..
..

1985
0.888
0.877
0.857
..
..
..
..
..
..

1990
0.909
0.896
0.872
0.853
0.817
..
0.786
..
..

1995
0.927
0.919
0.874
0.861
0.811
..
0.780
..
..

2000
0.941
..
0.895
0.892
0.837
0.803
0.788
0.797
0.784

2005
0.956
0.942
0.935
0.918
0.862
0.829
0.824
0.817
0.811

2006
0.958
0.945
0.938
0.924
0.867
0.835
0.832
0.821
0.814

2007
0.961
0.947
0.942
0.929
0.871
0.840
0.837
0.826
0.818

..
0.628

..
0.674

..
0.705

..
0.730

..
0.758

0.803
0.796

0.807
0.802

0.812
0.806

Table 2: HDI is the Balkan countries for the period 1980 – 2007.
Source: UNDP, Human Development Reports, 2010, http://hdr.undp.org/en/statistics/data/

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�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

The Study
The role of performance and job satisfaction as preconditions for improvement of human capital cannot
be revealed by means of the official statistics, they are to be obtained by interviewing. Due to a project funded
by the Research fund of Fatih University data have been collected about the quality of human capital in three
Balkan countries: Turkey, Bosnia and Bulgaria. Although the collection of data is still on-going some ideas
about the role of performance and satisfaction of job on the formation of human capital can be formulated to
trace out the influence of human capital on growth more correctly.
The sample includes 426 interviews from Turkish citizen, 275 interviews from Bosnian citizens and 182
interviews from Bulgarian citizens. The samples are not representative so the results should be cautiously
interpreted.
The performance and job satisfaction were measured mainly by 5-scale level. Special attention has been
paid on the estimation of the match between the level of skill and knowledge on one hand and the requirements
of the present job on the other. The respondents have been asked by 5-scale codes to declare do they think they
have the skill and knowledge sufficiently enough to complete their job properly.
Among the factors influencing the ability and willingness to work (the basic elements of labor supply)
the respondents have to scale out:
1. The rise of the level of skill and knowledge they possess.
2. The efficiency of management in the firm they work in.
3. The problems in their personal life and health.
4. The state of economy in their country
5. The state of the world economy

Findings
Below we report only the basic characteristics of the indicators measuring job performance and
satisfaction. Detailed study of the links between these two indicators and the factors influencing their behavior
will be published after the completion of the collection of data.
The salary promotion as an indicator of job performance commonly used in the research studies reflects
only one side of the problem. Outside the attention remains another very important aspect of the job
performance: how the very respondents estimate their own performance. Certainly this is a subjective measure of
the performance, nevertheless it is important to know the own vision of their status and to juxtapose it with the
carrier promotion. Such a comparison may provide very interesting information for many sides beyond the job
performance. For example the gap between the carrier promotion (income growth) and the self estimation can be
regarded as a proxy of the level of corruption in society. On the other hand however it is well known fact that
normally everybody pretends to receive more than he actually deserves - an old tradition in the Balkan (and not
only in the Balkans of course). Our study provides information was based on the self-estimation principle: the
respondents had to declare their own estimation of their job performance during the current year and the last
three years. The results of the interviewing are indicated in table 3.
Level
of
performance
1. Lowest
2.
3.
4.
5. Highest
No.
of
answers

Turkey
Current year
0.7%
2.4%
18.2%
51.7%
27.0%
422

Bosnia
Last 3 years
0.7%
3.1%
17.9%
51.0%
27.3%
418

Current year
0.4%
0.8%
17.9%
58.9%
22.1%
263

Bulgaria
Last 3 years
1.1%
1.1%
19.5%
58.0%
20.2%
262

Current year
0.0%
1.7%
9.1%
44.6%
44.6%
175

Last 3 years
0.0%
1.1%
11.3%
40.7%
46.9%
177

Table 3: Self-estimation of job performance
As a whole the picture is of a relatively stable short-run dynamics (the last three years) of the job
performance in the countries of observation. This is an evidence of the stability of this indicator, which
accumulates the influence of many factors.
The level of satisfaction of job is measured in the similar way – by means of 5-scale discrete choice
presented in table 4. It is distributed as follows:
Level of satisfaction
Turkey
Bosnia
Bulgaria
1. Lowest
1.4%
1.1%
3.9%

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�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

2.
3.
4.
5. Highest

8.3%
33.7%
43.9%
12.7%

2.3%
19.9%
53.8%
22.9%

7.9%
37.1%
42.1%
9.0%

Table 4. The level of satisfaction of job
The influence of the factors on the level of job satisfaction has been measured in two aspects: factors
influencing high level of satisfaction and factors influencing low level of satisfaction. Several factors influencing
positively the level of satisfaction of job have been formulated, namely:
1. Giving good money to enjoy the life
2. Ability to meet very good friends
3. The understanding of the social importance of the job
4. Spending time very nicely during the working hours
5. The pleasure to work with the team.
The respondents rank the presented above alternatives in the following way: Bulgarian respondents
(136) give highest rank on the giving money to enjoy the life (29.4%) as the reason for the high level of job
satisfaction, followed by the understanding of the social importance of job (alternative 3) – 25,0% and the
pleasure to work with the team 19.1%. The ability to meet very good friends and the spending time very nicely
during the working hours have equal ranking of 13.2% (weighted average 30). Turkish respondents (366) are
distributed in the following way: 47.9% are satisfied from their job because it gives them money to enjoy the
life, 18.7% are satisfied as they find their job socially important, 12.7% enjoy their job because it gives them
ability to meet very good friends, 11.8% have a pleasure to work with the team and 8.8% are satisfied as they
spend very nice their time during the working hours. The Bosnian respondents are more evenly distributed in the
voting for their job satisfaction: like the previous respondents they give highest share of the job as a source of
having money to enjoy the life (33,4%), followed by almost equal share of the understanding of the social
importance of their work (22.2%) and the pleasure to work with the team (21.4%). Almost equal share is given
to the understanding of social importance of their job (11.7%) and the spending time very nicely during the
working hours (11.3%).
The results look quite realistic and allowing to draw important conclusions: there is a big resemblance
of the factors influencing satisfaction of job among the compared countries. Quite normal sounds the
predominance of the materially-related motivations as having money to enjoy the life followed by the social
importance of the performed job in all countries. It is also indication of our ability to create a network of data
collection producing comparable results despite the restriction of the non-representative sample.
Similar is the picture also related to the opposite side of job satisfaction – the reasons leading to its low
level. Although in all countries the answers of this question are small, nevertheless they are important for better
understanding of the reasons for dissatisfaction of job. Bulgarian sample has only 43 answer of the ranking of
reasons leading to low job satisfaction. The biggest share of the answers (65.1) is due to the too low level of
payment, followed by the unpleasant atmosphere in the team respondent works with (18,6%), uselessness of the
job for society (9.3%) and the job as boring and irritating activity (7%). The Turkish respondents (120 answers)
are distributed in the following way: Too low level of payment is indicated as the reason for low level of
satisfaction of job by 57.5%, 15.0% indicate as such a reason the unpleasant atmosphere in the team the
respondent works with, 14.2% as the job is found as boring and irritating, 8.4% as finding the job useless for
society and 5% as the lack of interesting persons in the firm. Bosnian respondents (52 answers) find the basic
reason for dissatisfaction of job the low level of payment (67.3%), following by boring and irritating work
(11.5%), the unpleasant atmosphere in the team the respondent works with (9.6%), with equal share (5.8%) of
the uselessness of the job for society and the lack of interesting persons in the firm.
Important information related both the job performance and satisfaction was hidden into the present and
past vision of the respondents for the correspondence between their level of experience and knowledge on one
hand and the adequate completion of the tasks they were responsible for - on the other. As to the present
correspondence between the level of experience and knowledge and the present job half of the Turkish
respondents thing it is good, 28.8%, - very good, 18.4% - average, 1.2% - low and 0.9% - very low. This
distribution for the Bulgarian respondents (174) is: 55.7% - very high, 32.2% - high, 7.5% - average and 4.6% low (0 answer of very low). The Bosnian respondents (270) give the following ranking of the correspondence
between the level of experience and knowledge and the completion of the tasks of the present job: 38.9% - very
high level of correspondence. 48.5% - high level, 11.9% - average level and by 0.4% for the low and very low
levels.
The distributions of the same problem for the past are as follows: Turkish respondents (420): 22.6% very high , 54.0% - high , 21.4% - average, 1.4% - low and 0.5% - very low; Bulgarian respondents (174): 45.4%

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�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

- very high, 35.1% - high, 15.5% - average, 3.4% - low and 0.6% - very low; Bosnian respondents (263): 31.9%
as very high, 52.9% as high, 13.3% as average, 1.1% as low and 0.8% as very low.
The presented above analysis is an evidence of big similarity in the mechanisms of creating human
capital in the compared Balkan countries related to such a basic characteristics of human capital and job
performance and satisfaction. This is a good indicator of the expectations for their further successful integration
and accession to the EU – an ongoing tendency and strategic aim of the economic policy in the whole Balkans.

Conclusions
The presented above results of the empirical study of performance and job satisfaction as elements of
human capital indicate that there are good preconditions for its further growth and improvement in the selected
Balkan countries. There is a definite need for increasing the expenditure of R&amp;D and education to materialize
these preconditions in real contributions to the economic growth of the region.
The collected information which is still on-going allows constructing various models of revealing
various sides of human capital and the ability of its improvement of the aims of reaching sustainable
development in the area.
Acknowledgements:
The work on this paper has been possible due to the project ―Managing human capital for the aims of
sustainable development (case study of some Balkan countries)" supported by the Scientific Research Fund
of Fatih University under the project number P51010901_1. We express our thanks for the ability to use this
support.

References
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Janson Ph. &amp; Martin J. K. (1982). Source Job Satisfaction and Age: A Test of Two Views, Social Forces, (p. 1089) 60(4).
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                    <text>3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

Importance Of Training Aimed At Production In Businesses:
Educational Studies Carried Out By The Turkish Private Sector
Gökhan Ofluoğlu1, Sibel Buzkan2, Sadık Kiliç3
1Zonguldak Karaelmas University
Faculty of Economics and Administrative Sciences,Department of Labor Economics and
Industrial Relations
İncivez – Zonguldak, Tel: (0372) 2574010 2Zonguldak Karaelmas University
Faculty of Economics and Administrative Sciences,Department of Business Administration
İncivez – Zonguldak,Tel: (0372) 2574010 3Zonguldak Karaelmas University
Faculty of Economics and Administrative Sciences,Department of Labor Economics and
Industrial Relations
İncivez – Zonguldak, Tel: (0372) 2574010 – 1669
Emails: kilicsadik80@gmail.com,gofluoglu@yahoo.com,sibelbuzkan@yahoo.com

Abstract
There are basically three kinds of educational activities in the World and in Turkey. These
are formal/organized education, non-formal education, and informal education. In this age the
importance of informal education is increasing. This is due to the inadequacy of formal
education and its complementary, non-formal education, for the postfordist contexture of
production. In Turkey, businesses do not play a part in any of these three kinds of educational
activities. However, their active output are getting larger and larger from formal to informal
education. While there is an indirect participation of the businesses on this issue in formal and
non-formal education, in informal education there is direct participation. Actually, the core of
informal education constitutes the learnings experienced in the work place.
In this study, within the training aimed at production in the businesses, apprenticeship
workshops which are implemented within the frame of formal education and vocational
training which is the extension of formal education, as well as various educational activities
and informal education which are implemented within the formal education are discussed.
The necessity of informal education and its further connection to productivity is emphasized.
Keywords: Productivity, Formal Education, Non-Formal Education, Informal Education.
1.INTRODUCTION
There have been studies on the issue of the importance of education beyond measure. Most of
these studies emphasized the importance and necessity of education. Indeed, when education
is handled efficiently a lot of important development, including productivity follow. In this
13

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

study, educational activities in Turkey are argued. Not the full extent of the educational
activities, but only the activities which the businesses participate in in the process of
education are dealt with. However, educational issues, as they pose an integrated lot, have
occasionally been excluded. In the study, it is assumed that there is a closer relation between
informal education and productivity and with a presupposition the relation between education
and productivity is often assumed to be positive.
Assessment and evaluation is one of the leading issues of economic requirements of our time.
Above all, assessment provides focusing and scrutinizing in case there is a problem. Various
productivity assessments are made. The assessment applied is shaped according to the goal
pursued and data provided. In this manner, classification related to productivity assessment
can be made according to its extent, its field of application, and according to the scientific
discipline. (Akçay, 2011:37-44). Productivity assessments according to their extent are
divided into two as follows: with a single factor and with multiple factors. In single factor
measurements, not only labor productivity but also capital productivity is assessed. In
productivity assessments with multiple factors, on the other hand, input is evaluated as a
whole. At this point, labor and capital are evaluated simultaneously and sometimes inputs
such as energy and supplies are also attached(OECD, 2001:12). Speaking of productivity, in
essence, we comprehend the input-output ratio.
Labour productivity analysis at macro level is calculated either as amount of productivity or
value of yield per laborer or work done per hour. Instead of productivity value, sometimes
wage level can be applied in productivity analysis. However, research has been done
indicating that sometimes the wage level and productivity level are not the same(Dearden,
Reed, Reenen, 2005:22). In Turkey, since 2005, apart from the first quarter of 2009, labour
productivity has displayed a steady increase (General Directorate For Productivity, 2012:1).
Table 1: Productivity Charts
Country/Disctrict Name

Work Done Per Hour GDP
Per capita (USA=100)

Annual Labour Productivity Rate of Increase
2005

2006

2007

2008

2009

2010

Turkey

44,7

5

4.6

4.7

-0.9

-4.4

3.1

Germany

90,7

1.2

3.6

1.7

-0.1

-2.5

1.4

France

97,7

1.5

2.8

0.3

-1.7

-0.2

1.7

England

78,3

1.2

2.2

1.8

-0.5

-2.1

0.9

USA

100

1.5

0.8

1.2

0.7

2.1

3

OECD Total

75,3

1.5

1.7

1.6

-0.1

-0.3

2.2

G7 Countries

87,6

1.6

1.4

1.2

0.1

0.2

2.4

Source: (online), http://stats.oecd.org/Index.aspx?DatasetCode=LEVEL, and
(Online), http://stats.oecd.org/Index.aspx?DatasetCode=PDYGTH, 2012.

14

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

In reference to Table 1, Turkey is considerably behind the other countries and regions with
regard to productivity of workforce per working hour while sharp increases and decreases are
perceived at productivity growth.
This calculation is favourable when we consider labour productivity as input-output ratio .
Yet, when we try to focus on reasons of increase and decrease of labour productivity we do
not have much data because there are a lot of elements effecting labour productivity.
Although some of these may be dependent on other factor productivities such as capital and
provisions they may also be independent of them. A business or an economy are each an
open system. Labour productivity both at macro economic level and management level are
effected by environmental factors extensively. Thereby, the fluctuation of labour productivity
takes form by the influence of intermediary factors. At that point it becomes difficult to
clarify labour productivity. Multi-factor productivity analyses are developed to overcome this
drawback. Moreover calculations are made to indicate which factor is higher (Triplett,
Bosworth, 2003:27). However, these are also far from taking environmental factors into
consideration. A lot of internal and external environmental factors such as the structure of
industrial relations, competition, the international openness of the market and Research and
Development activities effects productivity (Dawkins, Rogers, 1998:196).
“Micro economic reforms” implemented in Australia since 1980 are leading sample cases on
this issue. For, these reforms are an effective insidence of environmental factors.
Privatizations, repealing or reducing the protective taxes against international trade, labour
market deregulation, lifting the impediments in getting into the markets are some of these
reforms (Borland, 2012). It is argued that these reforms have positive effects on productivity
in many researches made in Australia (Mckenzie, 2005). The allegations in these researches
are also supported by ampirical data.
Consequently, there are tens of factors that affect labour productivity. Yet, there is such a fact
that uneducated society is unskilled at the same time. In this respect, the impact of education
on productivity, though it is not possible to prove empirically, has a positive effect.
Education in the World and in Turkey can basically be divided into three. These are formal,
non-formal and informal education. Formal education (with diploma); is the term given to the
kind of education classified traditionally as pre-school, primary education, secondary
education and higher education. Non-formal education (certificated) is qualified as the
supplementary of formal education and apprenticeship and vocational training in Turkey can
be evaluated in this context. As for informal education, it encompasses the education beyond
the two denoted education types above and rather related to educational activities performed
by private sector. These educational activities are set up to make up some shortcomings.
There is usually no diploma or certificate; even if there is a certificate it does not have much
formal value. The core of informal education constitute the kind of training, commonly,
denoted by the expression “uncertificated” which refers to on-the-job-training. Nonetheless,
educational activities arranged to supply with the interests and requirements of the workers of
a business are in the range of informal education (İSO, 2012). Besides, an educational
activity sometimes goes under more than one category. Particularly, non-formal and informal
education may be confused. Hence, certificate is awarded at some kinds of informal
education.
Human Capital Theory also seperates general (formal) and private (informal) education from
one another. Formal education is not an education studied solely for a particular employer or
work place or work. Throughout an individual’s life formal education has the quality of being
used in various jobs. However, non-formal education comprises some special gains and in
general these gains cannot be transfered from one workplace to another(Viele, 2010:584).
15

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

Formal education which is agreeable with the Fordist production structure and its
complementary non-formal education cannot be satisfying enough for today’s markets. For,
postfordist production structure requires keeping the current workforce appropriate to the
volatile market conditions. Similarly, replacement of centralized planning by the market
oriented economic system emerged in 1980s corroborated this course. In this context, the
sample case presented by Lechener (1999:74) for East Germany is basically feasible to a large
extent for the other countries as well. That is; in place of formal and non-formal education
funded by state, informal education funding of which is undertaken by those who need the
education and private sector organization becomes widespread. There is a common belief that
there is a linear and positive connection between education and productivity. Moreover,
economists perceive the widespreading of education as the crucial element of economic
growth(Vinovskis, 1970:550). A lot of writers, such as Schultz, declare that productivity will
rise with the rise of the qualities of workforce(Arrow, 1962:172). As educational level
increases, possibility of easy adaptation to the changes that occur and structure that is more
suitable to technological developments is constituted. Hence it is a known fact that education
also generates a lot of positive externality(Nelson, Phels, 1965:75). The common belief that
relation between formal education and productivity is positive is one of the fundamental
hypothesis of Human Capital Theory.
Arrow considers the method of learning named “learning by doing”, substituted by the
concept of experience, important in many aspects. In view of Arrow, it is not possible not to
observe the importance of experimentation in the growth of productivity (1965:156). Romer
(1986:1002) articulated that, in long term growth, instead of falling marginal productivity of
the classical theory, rising marginal productivity should be debated on the issue of
“knowledge”. According to Romer, when a company’s or an individual’s knowledge
increases this situation cannot be restored by the company or the individual and the
knowledge spreads.
On the issue of decreasing productivities law, which creates indecision, asserting that laborcapital correlation can be positively sloped, there is emphasis on the importance of education,
knowledge and learning on the basis of approaches which weakens the basic assumptions of
the classical theory.
The internal development model elements consist of surge of knowledge, public expenditures
and impact of human capital, constitute the models that are developed as an alternative to
classical theory. In this respect, Kar and Ağır (2006) who examined the years between 1926 –
1994 reached the finding that spending on education increased growth. At another study
researched between the years 1969 – 2001, it is observed that the impact of human capital on
growth is more explicitly highlighed (Taban, Kar, 2006:175). In the same manner, yet in
another study researched between the years 1960 – 2004, it is observed that growth and
education influence one another mutually(Şimşek, Kadılar, 2010:115). Similar findings are
reached in the studies researched between 1950 - 2000(Serel, Masatçı, 2005) and between
1923 – 2005 (Özsoy, 2009). The impact of formal education on productivity is realized in an
adjournment. The return of today’s formal education investments are gained after quite a long
time. The situation on non-formal and informal education is a little different. In these
educational types, as there is the question of supplying certain necessities, the impact on
productivity is expected at a much earlier time. We must also take into consideration that
education that is not befitting for the necessities, may lessen productivity instead of enhancing
it. In essence there are two kinds of education aimed at productivity: the first one is standard
(knowledge) and the second one is flexible (aimed at outcome). Today’s educational activities
tends rather towards the second one. Some of the causes of this are: structural changes such
16

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

as: privatization, deregulation, decentralization and authorization; for the companies
becoming more international; labour market becoming more flexible, quality and productivity
becoming a strategic instrument in engendering a new market; strategic management
becoming more valuable than hierarchical management; human resources and human skills
being conceived as the most important productivity factor gradually and others (Prokopenko,
North, 1997:A-3).
In education – productivity corrolation, without doubt, the gainings of education related to
work ( the informal education) emerges in a shorter time and it has more direct effect
(Dearden vd, 2005:23). But, the acquisition provided after any educational investment and its
impact on the productivity is quite difficult to assess. Moreover, assessing solely the
production encompasses crucial complications. Labour productivity, on the whole, denotes
output coinciding employment per hour. To find this output in service sector is even more
difficult(Bolino, 1981:5). Service industry is the sector which has the broadest area of the
present day. The business evaluations in this sector are more compelling and evaluation
outputs less precise.The difficulties endured at performance evaluation in this sector are also
valid at productivity evaluation. In this context, Lee’s categoric division between businesses
can be taken into account. Lee divides businesses into two as those that can be evaluated
definitely and those that cannot be evaluated definitely(1985:324). It is possible to make
precise and trustworthy evaluations with works that we can come to a conclusion and count
substantially. The second one is the works that we are trying to evaluate the transformation
process between input and output or means-end relations. The target is whether the
organization is progressing or not and whether it is effective and efficient or not for which the
process requires a variety of behaviours to reach the means-end. The expansion of the service
sector has increased the number of businesses the evaluation of which is difficult to make. In
a research it is found out that education given to industrial sector provided a rate of increase
of productivity more than the education given in services sectors(Maglen, Hopkins, Burke,
2001).
Undoubtedly, every country has some educational problems. However, when we compare
Turkey with countries such as Germany, France and England, we observe that the problems in
Turkey is at a larger dimension.
Table 2: Principal Indicators In Education
Educational
Expenditures As
GDP Percentage

Participation Of
Age Range 1824 In Education

Rate of Participation
Of Age Range 25-64
In Education(Lifelong Learning)

Number of students
per teacher (2009)

Turkey

2,82 (2006)

26,4

2,5

21,1

England

5,40 (2008)

45,4

19,4

15,8

Germany

4,55 (2008)

55,9

7,7

16,6

France

5,58 (2008)

55,3

5

14,6

Europe 15

4,97 (2008)

53,4

10,4

-

Name of Country

Source: data compiled from EUROstat . (Online)
http://epp.eurostat.ec.europa.eu/portal/page/portal/statistics/themes, 2012.

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�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

In the context of both formal and non-formal education, it can be observed that with compare
to other European countries Turkey has quite unfavourable indicators. Particularly with
indicators related to participation to education and educational expenditures there is a distinct
difference. When the fact that the population of Turkey is comperatively young is considered,
the importance of these negative indicators are doubled.
Further additions can be made to Table 2. The rate of illiterate population, the rate of
schooling, ranged from preschool to higher education, financial troubles, crowded classes
despite excess supply of teaching staff applicants are some of them. To sum up, Turkey’s
educational problems are structural. EU membership is a favourable aim at overcoming these
problems. Whether full membership to EU is actualized or not it is essential for Turkey to
take measures on the issue of education(Gediklioğlu, 2005:70).
2.Participation To Educational Activities In Businesses
Turkish private sector administrations participate in educational activities within the frame of
some exceptional applications of formal education, the workplace applications of non-formal
education and informal education. Contribution to formal and non-formal education shows up
in indirect ways whereas informal education is a matter of direct contribution.
3.Formal Education
Businesses participate in formal educational activities in connection with apprenticeship
applications within the scope of vocational high schools and vocational colleges of higher
education. In this respect, it will be more precise to confine the subject matter to vocational
high schools and vocational colleges of higher education. However, not only apprenticeship
applications are taken into consideration about this issue, but also the common problems of
vocational education is dealth with. For, these issues are interlocking issues and their solution
requires an integrated point of view.
There are a lot of vocational highschools in service. These are basically divided into two;
vocational schools like : industrial vocational highschools, trade vocational high schools,
islamic vocational high schools, vocational schools for girls, vocational schools of justice and
vocational schools of health constitute the first division and the second division constitutes
the technical high schools. There is a relatively negative structure in question from the scope
of vocational education when compared to economically developed countries according to the
percentage of vocational and technical highschools in secondary education.
Table 3: The Percentage of Vocational and Technical Highschools Within Secondary Education in Turkey

Percentage of Vocational and
Technical Highschools Within
Secondary Education

1996-97

1999-00

2002-03

2005-06

2008-09

2009-10

2010-11

%45,8

%39,56

%32,59

%36,2

%40,7

%42,9

%44

Source : TÜİK, “Educational Statistics”, (Online), www.tuik.gov.tr, 2012.

As seen on Table 3, the percentage of vocational and technical highschools from 1996-1999
school years of 45,8% continuously decreased until school year 2002-03 reaching the bottom
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�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

line of 32,59 % . The percentages that are already behind a lot of western countries
diminished lesser and lesser, until it turned to rising trend from 2004 on, coming closer to the
level of 1996. During this process vocational schools have lost a lot of respectability in the
public eye. Without doubt, the changes on the coefficient applied at university entrance exams
is the main reason why this process is endured (Şahin, Fındık, 2008:79). The circumstances
gave rise to qualitative losses so much so that it overshadowed the quantitative losses that
arose in this respect. Vocational highschools, became the primary educational institutions
preferred by the students who fell below the level of avarage. Therefore, even if the
coefficient comes up to balance today, it will not be able to solve the problem automatically.
German Vocational Educational System could be an agreeable target to enhance the labour
productivity of vocational highschools because Germany holds one of the most successful
educational systems in the World. In this system named The Dual System, predominantly, the
age groups of 15 – 22 get education. 3 – 4 days a week is spent in workplace and 1-2 days a
week at school. Two-thirds (2/3) of the time spent at school is filled by vocational subjects
(BMBF, 2003:34). Those who graduate from this system may also carry on with the
university education. Approximately 2/3 of the age group is involved in The Dual System
(ibid:7). Companies contribute in financing directly, and completely set an example of good
corporatism. A large majority of students who graduate take place in working life, gaining the
status of being “skilled”.
German dual system virtually displays non-formal educational characteristic. But, majority of
vocational education -leaving apprenticeship education aside- materializes within the scope of
formal education. When German system is targeted, 1 we can easily affirm that we are far
behind this aim.
German dual system is also presented as a leading example model by The World Bank.
Hence, this model is even suggested for those countries which are specified as “developed” .
It is frequently disclosed that this model also provides a significant amount of cost advantage.
Herein, Bennell ve Segerstrom (1998:280)’s comments should be given heed. In their view,
German dual system depicts a unique characteristic. Between employers and their uppermost
organizations, workers and labour unions and the government an intrinsic corporatism is in
question and the roots of this characteristic is extended even to middle ages.
It is, in essence, absurd to determine corporatism as a target because corporatism (the
democratic corporatism) is a social structure that occurs spontaneously and is generally
related to culture. However, some of the technical characteristics of German dual system may
be determined as target. The application side of apprenticeship of formal education in Turkish
vocational educational system remains quite primitive with compare to the German dual
system. Training period, summer applications of vocational highschools of health the duration
is as long as it is determined in their programs and it is stipulated 300 hours in other
vocational highschools and between 30 work-days (240 hours) and 60 work-days in
vocational colleges in universities. (Vocational Education Regulations, art.59).
One can easily reach to the conclusion that on the whole the implementation applied as two
days of school and three days of workshop at workplace is important and necessary in the
evaluation with regard to productivity in the final year of vocational schools. Hence, by this
1 See Esin Özdemir, “The Role of German Vocational Education System and Inferences on Vocational
Education in Our Country and Chamber System” for further information on determining the
German system as an aim and why this system is determined, TOBB European Cooperation Board,
(online). www.tobb.org.tr 2012
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�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

means the students have a chance to get to know the work environment. But with regard to the
length of time it can easily be suggested that it is not sufficient. At the same time, there is
grave distrust on the way this short period is put to use.
Principally, the best method of learning is learning by practice (Karcı, 2009:101). Turkey
must absolutely move vocational education to workplaces in steady paces. At workplace also,
it must definitely be operative and forceful. To attain this, both students’ and employers’
awareness must be raised. Broad responsibilities are conferred upon universities, chambers
of industry and commerce and local authorities on this issue.
The concerns of vocational education is not solely confined to secondary education. In higher
education (tertiary education) similar problems exist. It is a known fact that two years spent
in higher education is insufficient, besides, this period is spent with theoretical subjects.
Again if we take the implementations in Germany into consiredation, in Germany at higher
education institutions equivalent to vocational colleges that take 7 semesters, minimum 2
semesters of apprenticeship training is stipulated. Before training starts, minimum 12 weeks
workplace apprenticeship is stipulated as well. Besides, the students who succeed in
graduating are entitled a diploma as engineers (Karcı, 2009:104).
4.Non-formal Education
The non-formal education is constituted by Apprenticeship Training Centers (MEM),
Community Colleges (HEM) and other non-formal educational establishments in Turkey.
There are totally 392 MEM ( Apprenticeship Training Centers) in Turkey, nearly 300
thousand students take courses in these centers. There are three formal levels which are
respectively apprenticeship, journeymanship and workmanship as a result of which students
are granted a workmanship certificate and are allowed to open their own workplace. HEM, on
the other hand, arranges three kinds of courses. These are: reading and writing courses,
vocational technical courses and social cultural courses. Among these only vocational
technical courses are directly related to labour market. Yet, it is observed that even these
courses are generally aimed at people outside labour or employment (especially the
unemployed are considered). Hence within the body of HEM there are 3,4 million trainees
(Turkish Statistical Institute : TUİK, 2010:2). Within the category of other elements various
schools, centers and institutes exist. Advanced Technical Schools For Girls, Applied School
of Art and Craft For Girls, Applied Industrial Apprenticeship Schools, Adults Technical
Training Center, Adult Training Center of Hotel Management and Tourism, Open Education
Vocational – Technical School, Tourism Training Centers are some of them(Kenar, 2009).
In view of Kenar (2009), the most important component of non-formal education is
apprenticeship training. Apprenticeship training is a part of vocational education. There nearly
300 thousand participants receiving apprenticeship education, the number of which
corresponds to 10 % of the total vocational education. The programs of apprenticeship
education that vary between 2 to 4 years is decided by the boards of “provincial employment
and vocational education”.
Educational activities done by İş-Kur, The Turkish Employment Organization is within the
range of non-formal education. By the establishment of unemployment insurance fund, at the
educational activities of the Turkish Employment Organization a huge amount of increase
occurred within active employment policies. Hence, in the body of labour training courses,
while there was 130 courses and 3868 participants, the amount rose up to 1888 courses and 32
206 participants in 2008 (İş-Kur :The Turkish Employment Organization, 2012). The number
of participants reached 224 thousand between January and November in 2011 (General
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�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

Management Of The Turkish Employment Organization, 2011). Specialized Vocational
Course Centers UMEM Skills’10 project and (apprenticeship) or on-the-job training covers
quite reformist practices and it is related to our subject more closely.
The project of Specialized Vocational Course Centers, consists of educational activities which
are set up to overcome the existing structural unemployment. However, as the activities
implemented lead to acquiring a more qualified workforce, it should be expected to effect
productivity. The project of Specialized Vocational Course Centers: UMEM commenced by
signing a protocol between TOBB (Turkish Union of Chamber and Commodity Exchanges,
Ministry of Labor And Social Security, Ministry of Education, TOBB (Turkish Union of
Chamber and Commodity Exchanges University of Economy and Technology and for the
time being it is spread to 81 provinces. In this sense, it displays a good public-private sector
cooperation. The components of the project is consist of strenghtening the foundation of
education, analysis of labour market requirements, matching/replacing implementation
(selection of course trainee, placing to apprenticeship and job replacement of the successful
participants) and the application of the newly envisaged courses. The target aimed as a
consequence of the project is to employ the course trainee in the particular workplace
(UMEM Skills’10 project, 2012). The number of course trainees within the context of
Specialized Vocational Course Centers Project rose up to 35 thousand between January –
November 2011. 20 TL pocket money is given to the course trainees daily.
Another reformist activity by İş-Kur, The Turkish Employment Organization is on-the-job
training (apprenticeship). In 2011 5209 participants practiced on this rather new
implementation of training, which is very few in number. However, by the objective set by
the Ministry Of Labour And Socail Security (MOLSS), deputy under secretary, it is aimed at
rising this amount to 400 thousand until 2015 (Tan, 2011:10). There is no doubt that in case
this figure is reached, a considerable amount of distance will be covered. Is-Kur provides the
participants’ financial support (20 TL daily) for on-the-job training which lasts 6 months.
Besides, in the context of “Operation to Promote Young Employment”, encouraging on-thejob training is planned, again, by the support of İş-Kur :The Turkish Employment
Organization (İş-Kur :The Turkish Employment Organization, 2011:92).
These are pivotal activities because we believe that on-the-job training is the kind of
education that has the biggest impact on productivity. This should not come to mean that
theoretical education should be totally disregarded. The necessity of certain basic theoretical
study is an undeniable reality. Thus, we should avoid making a generalization for all
occupational groups because in some occupational groups, intensive theoretical discussions
are necessary. In this generalization rather the professions in the context of the occupational
education is emphasized.
4.Informal Education
The significance of informal education is increasingly better understood in Turkey,like in the
World. Informal education comes out with two of its aspects. The first one is a completely
informal education (i.e. uncertified), where there is no setup of any kind for education. All
sorts of knowledge and skills a worker in any workplace learns on his/her own is in this
coverage. The second one is not totally informal. In case of resolving the educational demand
of some or all of the workers of a business on any subject, the education acquired by means
of purchasing a service is also informal education. This is because in the end of the training,
on the whole, either a certificate that may not be transfered to another business is given or
else, no certificate of the sort is given at all.
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�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

For the informal education to have a positive effect on productivity, before all, this education
has to be productive, itself. The minimum terms for this kind of education to be productive
are as follows:
a) Need-base education analysis: An educational activity done when there is no need to
do it may cause the fall of productivity. what is targeted in analysis is to determine the
absence of any of the three characteristics of an employee. These are knowledge,
skills, and attitute. There is no need for education if there is no inadequacy with any of
these characteristics.
b) Instructional design: In line with the specified necessities, first the present situation is
examined. At this point, the matter of circumstances concerning what to learn and by
whom and the learning medium and its limitations (such as time and money) are
important. These are called educational conditions. The present situation as well as
other circumstances are related to the motivation of the participants and the desired
output. After these conditions are assessed, a method of teaching is selected and
practiced (Reigeluth, 1999:9).
c) The evaluation of the results: Undoubtedly the most complicated stage is this one.
Business managers and their co-workers wish to know the impact of the educational
investment on productivity. An investment has costs. These costs are consist of direct
and indirect costs. Educators’ pay, cost of organisation are direct costs. On the other
hand, as the worker is away from work for that period of time, this causes a loss of
labour. Besides, an opportunity cost also arises at this point. Managers make
educational investment with the expectation that these costs will be covered by means
of a productivity increase. When faced with the difficulty of calculating the
productivity increase, with their intuition, they perceive whether the cost is covered or
is not covered. The way to bring this beyond a thought is to activate the process which
is known as chain of impact. After an educational investment the following stages
must be evaluated respectively (Philips, 1997:5-6):
-

-

-

-

-

Reaction: Whether the anticipation of participation to an educational program is met
or not, is a concern of the satisfaction gained from the program. The level of
satisfaction is usually assessed by a post educational survey. However, in the end of
this survey whether new knowledge or skill is acquired or not cannot be determined.
Learning: It is the study of the evaluation of what the participants gained by the end of
the program. The evaluation, although other methods are also used, is assessed by an
examination by the end of the program. Yet, the result achieved does not reveal any
information about the application of the acquired knowledge about on-the-job practice.
Job applications: The skills learned must be practiced on the job. At this stage, it has
to be evaluated whether the acquired skill is applicable on the job or not by various
methods. Commonly, this is actualized in a few months period after the program. The
outcome of this stage, is a significant assessment that reveals the success of the
program. Still, this also does not give a clue whether the job application of the skills
contributes to organizational success.
Business impact: At this stage, whether the organizational objectives are achieved or
not is scrutinized. For instance, customer satisfaction, quality, outputs and costs are
some of those. However, these also do not reveal information about the amount of the
cost of the program.
Return on investment: This is the final stage of the assessment. In this, the financial
profit is tried to be calculated. That is, answer to the question: “ Does the program
meet the costs?” is searched. The other name for this assessment is cost-benefit
analysis.
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�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

In the book that Philips wrote in 1994 there were only four levels (1994:7). In 1997, by the
addition of “business impact” the levels rose up to five. As it is summed up on Table 4, the
value of the knowledge acquired at the assessments increase by the rise of the level. Similarly,
the power of displaying the actual results and the difficulty of evaluation is growing. But the
rate of usage diminishes.
Table 4: Chain Of Impact
Chain of Impact

Level 1

Value
Knowledge

of

Power of Exposing
The Results

The least Valueable

Rate of Usage

The least powerful

Difficulty of
Evaluation

Too Frequent

Easy

(Reaction)
Level 2
(Learning)
Level 3
(Behavior)
Level 4
(Results)

The Most Valuable

The Most Powerful

Very Rare

Difficult

Source, 1994: 7)

Human Resources managers or experts assume significant responsibility in informal
education as the unit that determines the educational requirement of the employers are Human
Resources Managements. The duty of Human Resources management is to keep the staff in
the required number and the qualification available for the business. To this purpose
providing workers outside the workplace may be in question as well as the preparation of the
present workers to prospective positions by being trained. The latter is more recognized and a
more preferred alternative. In respect to this, education is one of the primary duties of the
human resources management.
The in-house trainings that are implemented in businesses and educational activities that they
materialize by the method of purchasing services from private educational institutions play an
important role in informal education in Turkey. But besides this, it is known that they
contribute in the process with seminars, conferences and many other educational activities at
universities by the collaboration of universities and the industry. Apart from this, it is viewed
that institutions such as Small and Medium Industry Development Organization (KOSGEB)
also take part in informal education . Hence, KOSGEB (Small and Medium Industry
Development Organization) provides financial support for the firms that require education and
these educational activities are appraised within informal education.
Findings in the research named “Occupational Education In Enterprises Research Results”
made by The Turkish Statistical Institute (TUİK) in 2007 have significance from the
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�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

perspective of our subject. In this research, it is possible to get an idea about the rate of
informal education in Turkey. But there are no completely informal, that is, unplanned
educations here. Unplanned informal education is continuously effective anytime anywhere.
Table 5: Rate of Businesses That Provide Training For Their Employees Among All Businesses, 2007
Case of Producing Occupational Training

Kind Of Occupational Training Activity

The
Size
Of
Workplace Group

The
Rate
of
Enterprises
Providing
No
Occupational
Education Activities

The
Rate
of
Enterprises
Providing
Occupational
Education Activities

The
Rate
of
Enterprises
Providing
Occupational
Education Courses

The
Rate
of
Enterprises
Providing
Other
Forms
Of
Occupational
Education

Total

68,0

32,0

17,1

23,7

10-49

70,6

29,4

14,7

21,7

50-249

59,7

40,3

23,7

30,0

250+

53,4

46,6

35,6

34,2

Source: TUİK (The Turkish Statistical Institute).

When Table 5 is studied, as the the size of workplace grows, it is seen that the rate of
providing occupational education increases. It is a known fact that The Human Resources
Management units in larger, more corporate firms are more effective. Yet, it is seen that,
including even half of those whose workplace is over 250 employees and 32% of the total
businesses organize educational activity.
Graph 1: The Rate of Enterprises Providing Occupational Education According to Course Types,
2007

Source: TUİK(The Turkish Statistical Institute).

The educational activities of (TUİK) The Turkish Statistical Institute are extended to two
divisions, as “courses” and “others”. Courses can be provided internally, organized by the
businesses as well as externally, by paying for the services. The other activities are on-the-job
guided training, rotation and exchange in offices, employment visits, quality and learning
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�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

circles, self-directed learning, participating in conferances, workshops, commercial fairs,
seminars etc. All these are typical examples of informal education.
On Graph 1, the provision of education according to course types and the size ofworkplace is
outlined. It is observed that in Turkey providing an external course is preferred rather than
the others. As the workplace gets larger, especially when the number of employees it holds
becomes more than 250, it is seen providing internal courses is preferred close to 70%.
By and large, the rates commonly indicate that informal education in Turkey is yet at the
phase of development. Without doubt, informal education compared to other education types
has a more effective potential for productivity. This potential has to be used as productively as
possible. Educational need analyses are held in informal education in Turkey.
Generally, educational activities are initiated according to the analyses results. It is gradually
understood better that when the issue of education, which brings out substantial costs for the
businesses that operate by the rules of market economy is governed effectively it has a
beneficial potential that exceeds the costs. By the information obtained from Chamber of
Industry In Istanbul2 , as to whether businesses provide the education in their own
organizations or get external education, educational need-base analyses are held. No
information has been received on educational planning. However, as an educational activity
cannot be implemented without planning, this has to be initially reconciled. That is, no matter
what kind of education is talked about at a certain rate a well-designed educational planning is
made.
The last stage of informal education is evaluation. In Turkey, just like in the world we are
confronted with the same chart (Table 4). In the end of the interview with Istanbul Chamber
of Industry, a finding of impact assessment after all of the types of education organized is
reached. After the impact assessment , the findings show that transition to learning level is
fifty percent less. It is concluded that the third level (job application) is rarely a matter and
no data are reached in the fifth level application.
In essence, it is natural that chain of impact process works in this manner. Hence, each stage
of chain of impact process, although carries on complementing one another, adds some cost.
In this respect, the calculation of the return of informal education is a concern of academics
rather that firms. To conclude, the calculation of investment return seems to remain as an
academic activity-area for some more time to come. By means of some research, it is proved
that this return is at quite a high level. (McLinden, Davis, Sheriff, 1994:140).
Life-long education in particular is a concept which covers formal, non-formal as well as
informal education within its scope. By concept, it is indicated that rather informal education
is emphasized. In accordance with the law no. 5544 issued in 2006, Vocational Qualification
Authority is established. The aim of this institution is to determine the fundamentals of
competence in national technical and vocational areas by taking national and international
occupational standarts as a base, and to establish and administer the national competence
system necessary to implement assessment and evaluation, and to inform and certify related
activities. The professions that require minimum bachelor’s degree are excluded by this law
(Law No.5544, article. 1).

2 Istanbul Chamber of Industry Expert Hakan Çoban is interviewed. We are obliged to extend our
thanks to Hakan Çoban, Expert and to İSO, the biggest chamber of Industry in Turkey for the
invaluable information given on informal education.
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�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

One of the most important functions of Vocational Qualification Authority(Professional
Competency Board) is to award professional competence certificate. Definitions of all
existing professions, standards of duty, operation and success, competence related to the
instruments used, knowledge and skills requirements, manner and behavior requirements and
finally assessment and evaluation criteria are presented in detail. Although completing these
impressive studies in a short time is difficult, its progress is known to be rapid. Professional
competence certificate is awarded to the labourers who could achieve these standarts. All of
these are formed within the framework of national competency. The congruence of National
competencies to European Qualifications Framework (AYÇ) still continues. European
Qualifications Framework is made up of 8 stages and certification is awarded by these stages.
These certifications mean legalizing informal and non-formal education.
Via the life-long learning process, a rough calculation is made for an individual who goes
through all stages of formal education and is included in the nonformal education regularly
every year and is found that the time spent for formal and nonformal education remains 15%
and 85% of the time is spent in informal education (Borat, 2009:12). Endeavours for the
extention and legalization of this sort of education of no-cost to the public result in
noteworthy developments.
5.CONCLUSION
Although the interdependence of productivity-education is subject to debate, the impact of
education on productivity is an undeniable reality. In Turkey, formal education has multidimentional structural problems. Problems concerning vocational education constitute one of
the central problems of formal education. The rate of vocational education is comperatively
lower. Apprenticeship application is inadequate quantitavely and is undetermined
qualitatively.
Within the scope of non-formal education, apprenticeship education and a lot of certificate
awarding educational activities are conducted. Apprenticeship education is the most
effectively administered area of on-the-job training, which is the best way of learning. Yet, it
has been aimed at a comperatively restricted area and a comperatively restricted amount of
people. İş-Kur, The Turkish Employment Organization, increased its efficiency by using
unemployment insurance fund, which produced significant outcomes for nonformal
education. The project of Specialized Vocational Course Centers, UMEM, and on-the-job
training practices are recognized as extremely successful projects.
Informal education in the World, as well as in Turkey, is widespread. As the effort to
overcome the shortages of knowledge, skills and attitude of employees in informal education
outweigh, it has to be emphasized that these kinds of education are more attached to
productivity. The establishment of Professional Competency Board (Vocational Qualification
Authority) and the acceptance of European Qualifications Framework is an important
development at the point where the knowledge and skills learned for informal education are
officially acknowledged.
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Kenar, N. (2009) Yaygın Eğitim Kapsamında Mesleki Eğitim Sistemi(Vocational Education
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Performance Based Payment (PBP) in University Hospitals
Vahit Yiğit1, Ramazan Erdem2, Mehmet Dinç3
1Süleyman Demirel University, Isparta Vocational School , Health Management, Isparta
2Süleyman Demirel University, The Faculty of Economics and Adm. Sciences –Health
Management, ,Isparta,
3Süleyman Demirel University, Isparta Vocational School , Isparta
E-mails: yigitv@hotmail.com, vahityigit@sdu.edu.tr, ramazanerdem@sdu.edu.tr,
mehmetdinc@sdu.edu.tr
Abstract
The objective of this study is to evaluate the impact of the performance-based payment
system in university hospital and to determine the potential problems with their solutions. The
29

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                <text>The objective of this study is to evaluate the impact of the performance-based payment  system in university hospital and to determine the potential problems with their solutions. The research was carried out at university hospitals in Turkey. In this research, qualitative research  method was used. The content of the survey data, qualitative research method, which is the  most commonly used technique, has been obtained by interview technique. The results of the  analysis has revealed that advantages of this system include; effective and efficient  management of resources, a accessibility to healthcare services, increased patient satisfaction,  ease of patients’ to reach healthcare services, more accurate and correct medical records. The  disadvantages of this system are as follows: left the job of specialist physicians, prohibition of  private health care work of specialist physicians, be a source of conflict among the staff,  misallocation and wasteful expenditure of resources, unnecessary tests, admissions,  interventions, increased unethical behaviors, decrease in the will to work and co operate with  co-workers.  Keywords: Health Policy and Management, Performance, Payment, Motivation, Hospital</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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                <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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