Thursday, October 31, 2019

Basic Critcal Thinking Essay Example | Topics and Well Written Essays - 500 words

Basic Critcal Thinking - Essay Example ls, Chaffee (2012), the following steps were recommended: (1) to develop a more in-depth understanding of oneself; (2) to discover the possibilities given that the goals are current and updated; (3) be able to envision a reported three-dimensional picture of the future that incorporates goals and aspirations; (4) construct a mental plan for details strategies to achieve defined goals in specific time frame and in overcoming potential barriers or obstacles; (5) modify the goals or plans according to new inputs but retain a consistent framework of goals, as needed (p. 13). An important decision in one’s life that would have to be made in the near future is finding the appropriate employment where one’s educational pursuit would be put into effective use. As such, one’s professional short-term goal is to find a good job with competitive pay and where one’s knowledge, skills and abilities would be appropriately honed and developed through work experience and through interaction and relationship with others. Find a good employer right after graduation where the employer would provide competitive pay and benefits; and where one’s knowledge, skills and abilities would be appropriately honed and developed through the work experience and through interaction and relationship with others. From one’s educational background, the possible courses would be locating organizations that belong to the top 100 organizations in the U.S. in terms of providing good benefits, according training, and being socially responsible. Another choice would be to streamline options to areas which are close to one’s residence. Likewise, selection process could also ensue after all applications have been sent and organizations that respond positively would be selected according to the exemplary image reported and accessed through research. From itemizing each alternative, a pros and cons analysis would illuminate one on the best option to select. For example, if two organizations

Tuesday, October 29, 2019

HR Training and Development Essay Example | Topics and Well Written Essays - 250 words

HR Training and Development - Essay Example should be to make sure that the employees follow a certain standard operating procedure within the workplace and they must not adhere to any other specifications than what have been told by the organization. The training procedures need to be elaborate covering all necessary details in such a manner that there is enough learning for everyone. The training regimes therefore bank on the experience which has been gained and which shall be used for the betterment of the employees in the long run (McCracken, 2005). The effectiveness of the training programs is significant and this can be gauged through the productivity shown by the employees once they implement these training realms within their respective quarters. This means that the different tangents behind these training modules would ask for a better understanding of the employees as per their work measures and how they are able to showcase their strengths and weaknesses as and when

Sunday, October 27, 2019

Impact of Islamic Banking on Consumer Financing Sector

Impact of Islamic Banking on Consumer Financing Sector Abstract This study finds out the realistic or any factual impact caused by the introduction of Islamic Banking on the consumer financing sector generally, while keeping its main focus explicitly on House Financing and Car Financing through banks in Pakistan. The total banks involved in consumer financing whether Islamic or Conventional where included in this research, keeping 2003 as the base year of data initiation. Since 53% of Consumer financing was being defined by House and Car financing so they were kept in focus. Independent T-Tests were run on the investments as well as the growth of both the sectors that is Islamic and Conventional banking sectors. The data was collected from the Statistical Data Ware House Department of State Bank of Pakistan. The results show that the variances in the investment sectors of both Islamic and Conventional differed from each other where H0 was rejected on the basis of value of t stats where as in the growth comparison the variances were said to be sa me at 10% significant level but the means of growth stood at 29% and 9% in cases of Islamic and Conventional banking respectively proving the positive impact of Islamic Banking on Consumer Financings bulky sector of House and Car Financing in Pakistan . In case of any incongruity to State Bank of Pakistan or the AAOFI standards, the latter shall prevail. Chapter one: Introduction The intent to write this research was to undermine the factual understanding as well as affect caused due to the introduction of Islamic Banking in Pakistan. It was acclaimed by the people related to the industry that Islamic Banking had positively affected the banking sector here and across the globe. The numbers were quoted and percentages claimed but no real research supported the declarations. So the author thought of doing a research to dwell on the issue and conduct a research with respect to Pakistan hence, configure the true standings of the conterparts known commonly as Islamic Banking and Conventional Banking. Islamic Banking though has a mere institutionalised history of 35 years across the globe but has gained tremendous recognition in this short tenure which shall be wittnessed in the literature review ahead in this paper. The evolution of Islamic Banking in Pakistan started as late as 2000 01 after the historical judgement of the Supreme Court of Pakistan in1999 against the prevailing interest based banking system. The Islamic banking emerged, though after a valiant effort which continued over two decades prior to its surfacing. Different reports, articles, awareness sessions, books and other relative material endowed to this very existence of Islamic Banks in Pakistan. Though the clouds of uncertainity have lingered on this newly instigated initiative ever since its emergence, but then again that has always remained a norm for innovative things in Pakistan. Though Islamic Banking has come a long way after its start almost a decade ago but it still has a lot to prove to its spectators with respect to shariah compliance and market effectiveness in the Pakistans lucrative but stingent souk. Consumer Financing is a sector which has its part of exuberance attached to it in the banking and financial sector. When ever the financial markets are flooded with accessive liquidity the first thing that magnetizes the banker is the consumer financing sector specially in Pakistan where the yeilds were as high as 15% on proceeds. The magnitude of House and Car finance together tend to weigh around at almost 53% of this sector so the proceedings in this neighborhood can be established by analysing these mentioned sectors. In view of the fact that the House Car financing sector provide a level playing field for the conterparts that is Islamic and Conventional players, was another reason for this assortment. In the paper further the comparative analysis is conducted as well as the background of both Islamic Banking and Finance with Consumer Financing has been discussed in comprehensive detail. Statement of the Problem Islamic Banking ever since its emergence in Pakistan has raised eyebrows of related and non related players. Is there a difference? Which banking system shall prevail? Does Islamic Banking have enough weight to outset its conterpart? Can Islamic Banking loose the tag of being a parellel banking system and become the prefered banking operation in Pakistan? The researcher answers to these questions in the light of the literature review as well as by testing the viability of Islamic Banking sector to its conterpart Conventional Banking in the asset backed sectors of House and Car finance (through banks) in Pakistan. Objective Basic purpose of this research is to determine the differential impact of Islamic Banking in contrast to Conventional Banking on House Car Financing through Banks in Pakistan. Research Model Hypotheses H0: Islamic Banking does not impact House Car Financing through Banks In Pakistan. H1: Islamic Banking directly impacts House Car Financing through Banks In Pakistan. Chapter Two: Literature Review This segment will appraise the comprehesive literature review with respect to Islamic Banking globally while Consumer Banking Sector in Pakistan. Islam as a Code of Life Islam acclaims its self to be a Deen which provides a complete code of life to its practitioners. According to its claim Islam not only helps its followers rather also those who seek for help without believing in its core essence for day to day hinderances. May it be a name for a believers child or be it the purpose of life, Islam alone tends to answer to all the versatile queries of its disciple. This is the beauty of Islam but it can only lead to enlightenment only if all the resources of Islam are kept in view or an adherent may astray from the righteous path. The main resources of Islam can be categorized as follows: Quran e Karim The Holy Book sent upon Hazarat Muhammad Ahadith e Mubarakah (Sayings of Hazarat Muhammad) Shariah (Implementation of Islam) Lives of Hazrat Muhammad and the Sahaba (Companions of Hazarat Muhammad) Hence the Deen, Islam, can be categorized into three main branches: Beliefs (Aqaaid) Reformation and Rectification (Tassawuf) Islamic Laws and Principles (Fiqha). Since my paper would be coming under the third bough of a healthy hierarchy, that is, Islamic laws and Principle Jurisprudence (Fiqh). Further elaborating this division known as Fiqh (Islamic Laws and Principles) can be further sub-divided into the following sections: Prayers (Forms of submissions to Allah Tallah, Ibadaat) Societal or Civil Laws (Maamlaat) Criminal Laws Constitutional laws Since my paper discusses the Societal or Civil laws (Maamlaat) or rather absolutely specifying it would be dealing with financial aspects of this vast sub branch of Fiqh. Coming to the financial aspects of a Muslim or even an Oriental who believes in the fairness of Islamic laws, the main concern of this individual is to abide by Islamic law and principles while earning bread and butter for himself and his family. The things permissible by Islamic Jurisprudence are referred to as Halal while the things that are prohibited in Islamic Fiqh are known as Haram. It is by obligation that a Muslim or even an Oriental who believes in Islamic laws can earn his living only through Halal ways. One way of distinguishing Halal is by identifying the prohibitions while the rest remains permissible. Prohibitions in Islam for Financial Procedures The two of the main ills identified by Islam in financial procedures are: Riba (Interest) Gharar. Riba (Interest) In perspectives of Shariah money is considered to be a assessing means for value or worth rather than an asset within itself, it necessitates that an investor should not be able to obtain income from capital (or everything that is treated as a kind of money) alone. This production of money from money (commonly known as interest) is Riba, which is prohibited in Islam. Prohibation of Interest (Riba) in Quran Following are the verses where Quran has out rightly identified interest as a prohibition. In the following verse our Creator nullifies the visual increase of wealth earned through interest. And whatever Riba you give so that it may increase in the wealth of the people it does not increase with Allah Subhanahu Tallah (30:39) At another place it has been identified that the Jews werent allowed to indulge in interest. And because of their charging Riba while they were prohibited from it (4:161) A verse which identifies the prohibition of interest and its form whether it be compounded. O those who believe do not eat up Riba doubled and redoubled (3:130) Ribas eminent prohibition can be seen in the following verse while at the same time the permissible alternative of trading has been offered. Another important factor which can be witnessed here is that giving of charity is being encouraged while interest is being regarded as a curse. Those who take Riba (usury or interest) will not stand but as stands the one whom the demon has driven craze by his touch. That is because they have said: Trading is but like Riba and Allah Subhanahu Tallah has permitted trading and prohibited Riba. So, whoever receives an advice from his lord and stops, he is allowed what has passed, and his matter is up to Allah Subhanahu Tallah . And the ones who revert back, those are the people of fire. There they remain forever. Allah Subhanahu Tallah destroys Riba and nourishes charities. And Allah Subhanahu Tallah does not like any sinful disbeliever. Surely those who believe and do good deeds, establish Salah and pay Zakah, have their reward with their lord, and there is no fear for them, nor shall they grieve. O those who believer, fear Allah and give up what still remains of Riba if you are believers. But if you do not, then listen to the declaration of war from Allah and his messenger. And if you repent, yours is your principal. Neither you wrong, nor be wronged. And if there be one in misery, then deferment till ease. And that you leave it as alms is far better for you, if you really know. And be fearful of a day when you shall be returned to Allah, then everybody shall be paid, in full, what he has earned. And they shall not be wronged. (2: verses 275-281) Identifying one of the greatest ills of Interests concentration of wealth the rich becoming wealthier and the poor becoming underprivileged, the verse tends to unfold one of the many aliments caused by going against the prohibition. So that this wealth should not become confined only to the rich amongst you.(59:7) During the tenure of 1984 to 1994, $ 719 Billion dollars were sanctioned as interest based loans while $ 749 Billion were returned during the same tenure still leaving behind a liability of $ 1258 Billion. 225 people possess 47% of the wealth of the world at the same time 1 Billion and 30 Million people earn $ 1 daily while 32% of the population of this world earns $ 4 daily. These facts show that the present financial system has the above mentioned illness known as the concentration of wealth. Prohibation of Interest (Riba) in Hadith The second source of Islam is the sayings of the Holy Prophet MuhammadSallalaho Alaihi Wassallam. Ahadith of ProphetSallalaho Alaihi Wassallam which are on the prohibition of Riba (Interest) are as follows: In the following Saying the excess on either sides is regarded as riba. Gold for gold, silver for silver, wheat for wheat, barley for barley, date for date, salt for salt, must be equal on both sides and hand to hand. Whoever pays more or demands more (on either side) indulges in Riba.1.( Sahih Muslim, Karachi, V.2, P.25) As per the following saying commercial interests existence is exhibited. Ibn Juraij says: in the pre-Islamic period, the tribe of Banu Amr bin auf used to take interest from the tribe of Banu-al-Mughira, and the Banu-al-Mughira used to pay this interest. When islam came,the later owned considerable amount of money to the former. And further on:the Banu-al-mughira used to pay interest to Banu-thaqif. All the people involved in the transaction of riba are found to be guilty and at fault as per quoted saying below. From Jabir: the Prophet,Sallalaho Alaihi Wassallam, may cursed the receiver and the payer of interest, the one who records it and the two witnesses to the transaction and said:they are all alike [in guilt] (Muslim,Kitab-al-Musaqat, Bab lani akili al-Riba wa mukilihi;also in Tirmidhi and Musnad Ahmed) The implication or the inference of sins that a person attains on indulging himself in interest based transactions is emphasized in the following quotes. FromAbdullah ibn Hanzalah:the Prophet,Sallalaho Alaihi Wassallam,said : a dirham of Riba which a man receives knowingly is worst than committing adultery thirty-six times(Mishkat al-Masabih, Kitab al-Buyu,Bab al -Riba,on the authority of Ahmed and Daraqutni) From Abu Hurayrah: the Prophet,Sallalaho Alaihi Wassallam said: Riba has seventy segments, the least serious being equivalent to a man committing adultery with his own mother.(Ibn Majah) Interest based transaction reap no profits here or hereafter. The misery that one is bound to go through after death just for indulging himself in interest based proceeds in visible in the following quote. From Abu Hurayrah: the Prophet,Sallalaho Alaihi Wassallam, said: On the night of Ascension I came upon people whose stomachs were like houses with snakes visible from the out side. I asked Gabriel who they were. He replied that they were people who had received interest ( Ibn Majah, Kitab al-Tijarat, Bab al Taghlizi fi al-Riba; also in Musnad Ahmad) Prohibation of Interest (Riba) in Bible It is not that only in Islam, interest is prohibited even in Christianity, the prohibition of interest is eminent. We have even seen above that even Jews were prohibited from interest based activity according to the Qurans verse. Following are the quotes from the Bible proving the prohibition of Riba. Thou shalt not lend upon usury to thy brother; usury of money, usury of victuals, usury of any thing that is lent upon usury. [Deuteronomy 23:19] Lord, who shall abide in thy tabernacle? Who shall dwell in thy holy hill? He that walketh uprightly, and worketh righteousness and speaketh the truth in his hearth. He that putteth not out of his money to usury, not taketh reward against the innocent.[Psalms 15:1, 2, 5] He that by usury and unjust gain increaseth his substance, he shall gather it for him that will pity the poor. [Proverbs 28:8] Then I consulted with myself, and I rebuked the noble, and rules and said unto them, ye exact usury, every one of his brother. And I set a great assembly against them.[Nehemiah 5:7] After identifying that interest has been prohibited in the past as well as in the contemporary era by the Creator of mankind as He tends to proscribe this act, it would be important to understand the types of Riba which are as follows: Riba Al Jahiliya/ Riba An Nasiyah That type of debt where specified reimbursements period and an amount in surplus of capital is fixed. (Usmani, 2002) Riba Al Fadl / Riba Al Hadees Riba Al Fadl means that the amount or goods paid back in excess other than the Qard (Loan) or which is taken in exchange of explicit homegenous products and are utilized in their hand to hand purchase and sale as explained in the Hadees. (Sahih Muslim, Karachi, V.2, P.25). (Usmani, 2002) Gharar The second of the ailments identified by the Islamic Juriprudence is known as Gharar. Gharar, is usually understood to denote ambiguity in the contractual conditions and/or the uncertainty in the survival of an essential good in an agreement and this creates concerns for Islamic scholars in the light of Islamic Jurisprudence. Shariah does include the ideology of Public benefit, denoting that, if something is tremendously in the public favor, it may be executed and so hedging or alleviation of preventable business threats, do come into this class but further elaboration is as follows by Islamic Scholars: Gharar is where the participants that is the buyer and seller, dont know what one bought and what the other sold. Professor Mustafa Al-Zarqa the researcher of Shariah has written Gharar can be defined as the sale of possible goods whose characteristics or individuality can not be established, due to the dicey character which makes this form of business related to gambling. Hadith for bidding this prototype of trading in Gharar (jeopardy) are available in books of Hadith. Some examples of Gharar transactions are (e.g. trading any fish swimming in the sea or a bird from a collection of species flying in the sky an unborn calf in cows womb, are some of the saleable goods which cannot be probed and examined as their true traits are unknown. Islamic Jurisprudence researchers have given many complete definitions of Gharar. They have also evolved with the idea of Yasir (minor risk); a financial deal with an insignificant risk is believed to be Halal (permissible) while transactions involving significant risk (Bayu-ul-Gharar) is deemed to be Haram. Gharar is one of those impediments which limit the power of decision making. An agreement that has any element of Gharar is not valid from the Islamic Jurisprudence view, irrespective of whether the parties to the agreement agree upon the agreement. The lexical meaning of Gharar is to deceive, cheat, delude, lure, entice and uncertainty. Gharar can be defined as follows: The uncertainty that is present in the basic elements of an agreement, wording, subject matter, consideration and the liabilities. Example of events which have been prohibited in Ahadith because of Gharar are: Sale of unborn Camels baby still in the mother abdomen. Sale of flowers before they appear on the plant. Sale of fish that comes in one throw of net. Sale of wool on the body of the animal. Qimar is that event in which there is a possibility of total loss to one party.Every gambling is a form of Qimar but Qimar is not limited to gambling. The Contract in which the participants, at the moment of implementing the agreement, cannot determine or rather decide as to how much it would give or receive. Causes of Gharar Though the conditions can be many but the most commonly occuring causes can be identified in (Samadani, 2007) are as follows: Uncertainity relating to the existence of thing sold Uncertainity relating to the possession of thing sold Uncertainity relating to the thing sold itself Uncertainity relating to the price Uncertainity relating to the payment of price Uncertainity relating to both thing sold as well as the price Types of Gharar Some types of Gharar are as follows: Baitan fi Bai (Twin sales) Safaqa fi Safaqa (Twin contracts) Bai urban/urboon Forward contract Superficial bull whip effect In the dark ages, many contracts were in vogue, where that condition would turn trade into treasure hunt. Like the seller would have different pieces of cloth and the buyer would cast a stone and would get the cloth where the stone would land. The Holy ProphetSallalaho Alaihi Wassallam has disallowed all such contracts. After identification of the prohibitions in the current financial system where interest and Gharar (Uncertainity) are a part and parcel of day to day proceedings. The need for a system which eliminated such illnesses was required. Another reason was that, after the jolts of 1930s and other economic crisis of 1970 and now of 2008 that followed, the financial world started talking about alternatives to the present systems of (Communism, Socailism and Capitalism). Though Capitalism is the largest spread system across the globe but by all means its jolting has been witnessed since 1839, 1930, 1970 and 2007. Is it at the verge of its end? Nobody knows but people have started looking for options. Islamic Economics Islam provides an economic system based on rules and principles defined by Islamic Jurisprudence. Human being is just a custodian of wealth and the true ownership is with Allah Tallah. Islamic Economics point of difference is that it not only deals with the materialistic needs of human being rather it also fulfills the spirtual needs at the same time. The main theory behind the Islamic economics is that money is only a means of exchange (in other words money tends to serve as an intermediary between the transaction of asset) and not a product that can be sold or discounted. Here it is noteworthy that a human being is not the true owner of wealth as it belongs Allah Tallah rather he has been given only the right to use it as the second owner, keeping in mind that he would be questioned on the day of judgement of his usfruct. Islam doesnt deny the forces of law of demand and supply but does emphasis on the consumer as well as the government to abide by the rules of Islam. Islam as a De en has the capability to accomadate all good things that life has to bring accept those which are outrightly against its divine principles. To summarise Islamic economics can be defined as the humanitarian goal of achieving the well-being of all members of the human family which cannot be attained by concentrating primlairly on the materialistic needs of comfort and creating maximisation of riches as the core intention of economics. Hence it is part and parcel to raise the spirtual content of well being of the whole society and reduce all symptons of anomie, like family disintegration, heavy interest based debt payments, conflict and tension, crime, alcholism, addiction to drugs and psychological illness, all signifying lack of internal delight and satisfaction in the life of human beings. Captialism similar to socialism, both have fallen short to show the way to their followers such an overall welfare. As a prospective measure, it is seems almost inevitable to put down the outlines of a new scheme of operations which helps maximise human well being as per the divine guidelines of Allah Tallah. As per (Khan, 1993) that since the unavailibilty of an Islamic society anywhere in the world the Islamic economics at present is scarely able to express or articulate Islamic position on economic issues as per its connotations. Islamic economics implies a serious execution of the Islamic strategy to raise the spirtual as well as the material well being of all people and to establish socio-economic justice, which is the vital objective of the Islamic message. On the spirtual side, the peace of mind that is fundamental to inner happiness cannot be attained except by increasing the nearness of the human being to his Creator, which Islam is capable of bringing about but secularism doesnot even aspire to. (Chapra, 1992). Islamic Banking Banks serve as the heart of any economy as they pump funds into the economic veins of a country. The four main functions that the bank performs are: lending and deposit business securities issuing asset management and foreign exchange trading. Trading has been given as an alternative to interest based transactions by Quran e Kareem as mentioned above. In the light of this fact the comtemporary Islamic scholars after reviewing the current financial system have comeup with different modes of financing to fulfill the much needed requirement. In the futher discussion we shall discuss those modes of financing. But first we would define Islamic banking as per the State Bank Of Pakistan. Islamic banking has the same utility as of conventional banking except that it asserts to function in agreement with the rules of Islamic Jurisprudence, called Fiqh ul Muamalat (Islamic regulations for transactions). The indispensable law of Islamic banking is the sharing of gain and loss and the prohibition of interest and Gharar. The Islamic concepts, that are mainly used in Islamic banking are profit sharing combination of isolated investor and worker (Mudharabah), safekeeping (Amanah), joint venture (Musharkah), Diminishing Musharkah, cost plus profit (Murabahah), asset finance (Ijarah), manufacturing (Istisna) and agricultural goods (Salaam). Islamic banking proposes to a structure of banking or participatory pooling actions that is dependable on Islamic Jurisprudence (Shariah) and channeled by Islamic economics. Islamic law prohibits interest the collection and payment of Usury. Islamic law also disallows trading in financial risk (since it is a form of gambling) discussed abov e as Gharar. In addition, Islamic Jurisprudence excludes participation in businesses which are deemed Haram (a going concern which deals in pork or alcohol). At the verge of 20th century, quite a few Islamic banks were crafted, to cater to this specific banking market. (Hassan, 2002) In an Islamic mortgage transaction, instead of giving debt to the buyer, money is utilized to purchase the item that is, money is a medium of exchange and not a commodity. Money cannot be rented, is a fact of Islamic Economics. The supplier acts as a direct vendor for the bank, after acquiring the goods the bank proceeds it to the customer at a gain, while allowing the buyer to payback the bank in installments (assets backed financing). However, for any delay in payment the bank cannot charge additional costs as profit or compensation. To mitigate its risk and close in on the vulnerability of the customers default, the bank keeps strict collaterals as its bail out. After the possession of goods the tangible asset is listed in the name of the buyer, by the Islamic banks. Such a bargain is known as Murabaha. Likewise Ijara wa Iqtina or Ijara bi Tamleek, which is alternative to real estate capital finance. Islamic banks handle proportionate income financings for means of transportations in a likewise manner (vending the automobile at a price, which is higher than the current value of the asset in the market, to the lessee and then holding up the title of the medium until the pre-agreed proceeds are paid up). The previous profits are taken into consideration setting up a profit and loss sharing ratio. Consequently the banks profit on the proportionate income financing is equivalent to a specific proportion of the companys revenues. As soon as the investment amount of the proportionate income financing is reimbursed, the earning-distribution arrangement is terminated. This specific exercise is entitled as Musharaka. Supplementary to this, Mudaraba is venture capital financing where a talented worksman who provides labor while funding is offered by the bank, so that one executes business on behalf of the other. Such participatory indulgence between capital and labor reflect the Islamic conceptions that the borrower should not absorb the peril/price of a collapse, since it is Allah Tallah who determines that failure or success, and intends that all those involved reap or bear it as per their obligations. Last, Islamic banking is bounded within Islamically permissible transactions, which eliminate those involving alcohol, pork, gambling, etc. Thus Islamic investing is the only acknowledgeable form of investment, and asset backed transactions are encouraged at the same time the social illnesses are not propped up. The concepts and financing modes in Islamic banking are as follows: Shariah Advisory Council/Consultant Islamic banks and banking organizations that offer Islamic banking products and services (IBPS banks) are required to establish Shariah advisory boards/ consultants to recommend them and to ensure that the procedures, activities and systems of the bank comply with Shariah doctrine. Amanah (Safekeeping) In Amanah, a bank is reckoned as a warden and custodian of endowments. Person deposits money in the bank and the bank assures to repay the whole amount of the belongings, or any portion of the remaining sum, when the depositor claims it. In this situation the Bank becomes the Amin (the Guardian) while the saver is known as Rab-ul-Maal. In Amanah the bank cannot consume this money until and unless the depositor permits its Amin. Mudarabah (Profit Loss Sharing) Mudarabah is a form or contract established between an investor and an entrepreneur, whereby the entrepreneur can finance the investments for its business proceedings. Any gains generated shall be distributed between the investor and the entrepreneur as per the consented ratio, while only the investor stands all the losses if transpired, it has to be bared in mind that the due attentiveness of the entrepreneur will be evaluated and in case of carelessness he/she would have to bear the consequences. The profit-sharing maintained until the proportionate income financing is reimbursed. The bank receives its share for the time value of its money through a set proportion in profit earned that is attached to the debtors profits. (Hassan, 2002) It is a corporation in proceeds between investment and skill, where one provides funds whereas the other supplements proficiency, expertise and administration. The latter is called as the Mudarib. Any profits accumulated are distributed amongst the participants on a pre-settled ratio, while loss is borne only by the investor. It is noteworthy that any increase in capital shall be the property of Rab-ul-Maal the capital provider according majority of jurist. For example if the sheep provided by rab-ul- maal investor and sheep gave birth to lamb, the lambs would be in the ownership of Rab-ul-Maal not the Mudarib (entrepreneur). The capital provider earns profit from the business on the basis of providing capital while the entrepreneur gets his share with respect to his efforts and endeavors. (Usmani T. M., 2004) Musharkah (Joint Venture) This conception is normally applied for business partnerships or mutual ventures. The profits made are shared on a settled ratio, while if losses are sustained they will be divided on the equity funds allocation ratio. This model is different from fixed-income endowing (i.e. proceeds of propotionate income financings). The two different types of Musharkah modes are Shirkat ul Ooqud and Shirkat ul Milk as per Islamic Jurisprudence. Further elaborating the types can be divided into specific main categories with further sub types each. In Islamic finance the things taken into consideration are Shirkat ul Ooqud (Partnership in Trade) and Shirkat ul Amaal (Partnership in Services). Shirkat ul Amwal (Partnership in trade) Shirkat Ul Amal (partnership in services) Shirkat ul Amwal (partnership in trade) is the mode of partnership where all partners invest some capital into a commercial enterprise. Shirkat Ul Ammal (partnership in services) is the form of partnership where all the partners jointly undertake to render some services for their customers and the fee charged from them is distributed among them accordingly to an agreed ratio. (Usmani T. M., 2004) Musharkah translates itself into a relationship established under a pact by the Impact of Islamic Banking on Consumer Financing Sector Impact of Islamic Banking on Consumer Financing Sector Abstract This study finds out the realistic or any factual impact caused by the introduction of Islamic Banking on the consumer financing sector generally, while keeping its main focus explicitly on House Financing and Car Financing through banks in Pakistan. The total banks involved in consumer financing whether Islamic or Conventional where included in this research, keeping 2003 as the base year of data initiation. Since 53% of Consumer financing was being defined by House and Car financing so they were kept in focus. Independent T-Tests were run on the investments as well as the growth of both the sectors that is Islamic and Conventional banking sectors. The data was collected from the Statistical Data Ware House Department of State Bank of Pakistan. The results show that the variances in the investment sectors of both Islamic and Conventional differed from each other where H0 was rejected on the basis of value of t stats where as in the growth comparison the variances were said to be sa me at 10% significant level but the means of growth stood at 29% and 9% in cases of Islamic and Conventional banking respectively proving the positive impact of Islamic Banking on Consumer Financings bulky sector of House and Car Financing in Pakistan . In case of any incongruity to State Bank of Pakistan or the AAOFI standards, the latter shall prevail. Chapter one: Introduction The intent to write this research was to undermine the factual understanding as well as affect caused due to the introduction of Islamic Banking in Pakistan. It was acclaimed by the people related to the industry that Islamic Banking had positively affected the banking sector here and across the globe. The numbers were quoted and percentages claimed but no real research supported the declarations. So the author thought of doing a research to dwell on the issue and conduct a research with respect to Pakistan hence, configure the true standings of the conterparts known commonly as Islamic Banking and Conventional Banking. Islamic Banking though has a mere institutionalised history of 35 years across the globe but has gained tremendous recognition in this short tenure which shall be wittnessed in the literature review ahead in this paper. The evolution of Islamic Banking in Pakistan started as late as 2000 01 after the historical judgement of the Supreme Court of Pakistan in1999 against the prevailing interest based banking system. The Islamic banking emerged, though after a valiant effort which continued over two decades prior to its surfacing. Different reports, articles, awareness sessions, books and other relative material endowed to this very existence of Islamic Banks in Pakistan. Though the clouds of uncertainity have lingered on this newly instigated initiative ever since its emergence, but then again that has always remained a norm for innovative things in Pakistan. Though Islamic Banking has come a long way after its start almost a decade ago but it still has a lot to prove to its spectators with respect to shariah compliance and market effectiveness in the Pakistans lucrative but stingent souk. Consumer Financing is a sector which has its part of exuberance attached to it in the banking and financial sector. When ever the financial markets are flooded with accessive liquidity the first thing that magnetizes the banker is the consumer financing sector specially in Pakistan where the yeilds were as high as 15% on proceeds. The magnitude of House and Car finance together tend to weigh around at almost 53% of this sector so the proceedings in this neighborhood can be established by analysing these mentioned sectors. In view of the fact that the House Car financing sector provide a level playing field for the conterparts that is Islamic and Conventional players, was another reason for this assortment. In the paper further the comparative analysis is conducted as well as the background of both Islamic Banking and Finance with Consumer Financing has been discussed in comprehensive detail. Statement of the Problem Islamic Banking ever since its emergence in Pakistan has raised eyebrows of related and non related players. Is there a difference? Which banking system shall prevail? Does Islamic Banking have enough weight to outset its conterpart? Can Islamic Banking loose the tag of being a parellel banking system and become the prefered banking operation in Pakistan? The researcher answers to these questions in the light of the literature review as well as by testing the viability of Islamic Banking sector to its conterpart Conventional Banking in the asset backed sectors of House and Car finance (through banks) in Pakistan. Objective Basic purpose of this research is to determine the differential impact of Islamic Banking in contrast to Conventional Banking on House Car Financing through Banks in Pakistan. Research Model Hypotheses H0: Islamic Banking does not impact House Car Financing through Banks In Pakistan. H1: Islamic Banking directly impacts House Car Financing through Banks In Pakistan. Chapter Two: Literature Review This segment will appraise the comprehesive literature review with respect to Islamic Banking globally while Consumer Banking Sector in Pakistan. Islam as a Code of Life Islam acclaims its self to be a Deen which provides a complete code of life to its practitioners. According to its claim Islam not only helps its followers rather also those who seek for help without believing in its core essence for day to day hinderances. May it be a name for a believers child or be it the purpose of life, Islam alone tends to answer to all the versatile queries of its disciple. This is the beauty of Islam but it can only lead to enlightenment only if all the resources of Islam are kept in view or an adherent may astray from the righteous path. The main resources of Islam can be categorized as follows: Quran e Karim The Holy Book sent upon Hazarat Muhammad Ahadith e Mubarakah (Sayings of Hazarat Muhammad) Shariah (Implementation of Islam) Lives of Hazrat Muhammad and the Sahaba (Companions of Hazarat Muhammad) Hence the Deen, Islam, can be categorized into three main branches: Beliefs (Aqaaid) Reformation and Rectification (Tassawuf) Islamic Laws and Principles (Fiqha). Since my paper would be coming under the third bough of a healthy hierarchy, that is, Islamic laws and Principle Jurisprudence (Fiqh). Further elaborating this division known as Fiqh (Islamic Laws and Principles) can be further sub-divided into the following sections: Prayers (Forms of submissions to Allah Tallah, Ibadaat) Societal or Civil Laws (Maamlaat) Criminal Laws Constitutional laws Since my paper discusses the Societal or Civil laws (Maamlaat) or rather absolutely specifying it would be dealing with financial aspects of this vast sub branch of Fiqh. Coming to the financial aspects of a Muslim or even an Oriental who believes in the fairness of Islamic laws, the main concern of this individual is to abide by Islamic law and principles while earning bread and butter for himself and his family. The things permissible by Islamic Jurisprudence are referred to as Halal while the things that are prohibited in Islamic Fiqh are known as Haram. It is by obligation that a Muslim or even an Oriental who believes in Islamic laws can earn his living only through Halal ways. One way of distinguishing Halal is by identifying the prohibitions while the rest remains permissible. Prohibitions in Islam for Financial Procedures The two of the main ills identified by Islam in financial procedures are: Riba (Interest) Gharar. Riba (Interest) In perspectives of Shariah money is considered to be a assessing means for value or worth rather than an asset within itself, it necessitates that an investor should not be able to obtain income from capital (or everything that is treated as a kind of money) alone. This production of money from money (commonly known as interest) is Riba, which is prohibited in Islam. Prohibation of Interest (Riba) in Quran Following are the verses where Quran has out rightly identified interest as a prohibition. In the following verse our Creator nullifies the visual increase of wealth earned through interest. And whatever Riba you give so that it may increase in the wealth of the people it does not increase with Allah Subhanahu Tallah (30:39) At another place it has been identified that the Jews werent allowed to indulge in interest. And because of their charging Riba while they were prohibited from it (4:161) A verse which identifies the prohibition of interest and its form whether it be compounded. O those who believe do not eat up Riba doubled and redoubled (3:130) Ribas eminent prohibition can be seen in the following verse while at the same time the permissible alternative of trading has been offered. Another important factor which can be witnessed here is that giving of charity is being encouraged while interest is being regarded as a curse. Those who take Riba (usury or interest) will not stand but as stands the one whom the demon has driven craze by his touch. That is because they have said: Trading is but like Riba and Allah Subhanahu Tallah has permitted trading and prohibited Riba. So, whoever receives an advice from his lord and stops, he is allowed what has passed, and his matter is up to Allah Subhanahu Tallah . And the ones who revert back, those are the people of fire. There they remain forever. Allah Subhanahu Tallah destroys Riba and nourishes charities. And Allah Subhanahu Tallah does not like any sinful disbeliever. Surely those who believe and do good deeds, establish Salah and pay Zakah, have their reward with their lord, and there is no fear for them, nor shall they grieve. O those who believer, fear Allah and give up what still remains of Riba if you are believers. But if you do not, then listen to the declaration of war from Allah and his messenger. And if you repent, yours is your principal. Neither you wrong, nor be wronged. And if there be one in misery, then deferment till ease. And that you leave it as alms is far better for you, if you really know. And be fearful of a day when you shall be returned to Allah, then everybody shall be paid, in full, what he has earned. And they shall not be wronged. (2: verses 275-281) Identifying one of the greatest ills of Interests concentration of wealth the rich becoming wealthier and the poor becoming underprivileged, the verse tends to unfold one of the many aliments caused by going against the prohibition. So that this wealth should not become confined only to the rich amongst you.(59:7) During the tenure of 1984 to 1994, $ 719 Billion dollars were sanctioned as interest based loans while $ 749 Billion were returned during the same tenure still leaving behind a liability of $ 1258 Billion. 225 people possess 47% of the wealth of the world at the same time 1 Billion and 30 Million people earn $ 1 daily while 32% of the population of this world earns $ 4 daily. These facts show that the present financial system has the above mentioned illness known as the concentration of wealth. Prohibation of Interest (Riba) in Hadith The second source of Islam is the sayings of the Holy Prophet MuhammadSallalaho Alaihi Wassallam. Ahadith of ProphetSallalaho Alaihi Wassallam which are on the prohibition of Riba (Interest) are as follows: In the following Saying the excess on either sides is regarded as riba. Gold for gold, silver for silver, wheat for wheat, barley for barley, date for date, salt for salt, must be equal on both sides and hand to hand. Whoever pays more or demands more (on either side) indulges in Riba.1.( Sahih Muslim, Karachi, V.2, P.25) As per the following saying commercial interests existence is exhibited. Ibn Juraij says: in the pre-Islamic period, the tribe of Banu Amr bin auf used to take interest from the tribe of Banu-al-Mughira, and the Banu-al-Mughira used to pay this interest. When islam came,the later owned considerable amount of money to the former. And further on:the Banu-al-mughira used to pay interest to Banu-thaqif. All the people involved in the transaction of riba are found to be guilty and at fault as per quoted saying below. From Jabir: the Prophet,Sallalaho Alaihi Wassallam, may cursed the receiver and the payer of interest, the one who records it and the two witnesses to the transaction and said:they are all alike [in guilt] (Muslim,Kitab-al-Musaqat, Bab lani akili al-Riba wa mukilihi;also in Tirmidhi and Musnad Ahmed) The implication or the inference of sins that a person attains on indulging himself in interest based transactions is emphasized in the following quotes. FromAbdullah ibn Hanzalah:the Prophet,Sallalaho Alaihi Wassallam,said : a dirham of Riba which a man receives knowingly is worst than committing adultery thirty-six times(Mishkat al-Masabih, Kitab al-Buyu,Bab al -Riba,on the authority of Ahmed and Daraqutni) From Abu Hurayrah: the Prophet,Sallalaho Alaihi Wassallam said: Riba has seventy segments, the least serious being equivalent to a man committing adultery with his own mother.(Ibn Majah) Interest based transaction reap no profits here or hereafter. The misery that one is bound to go through after death just for indulging himself in interest based proceeds in visible in the following quote. From Abu Hurayrah: the Prophet,Sallalaho Alaihi Wassallam, said: On the night of Ascension I came upon people whose stomachs were like houses with snakes visible from the out side. I asked Gabriel who they were. He replied that they were people who had received interest ( Ibn Majah, Kitab al-Tijarat, Bab al Taghlizi fi al-Riba; also in Musnad Ahmad) Prohibation of Interest (Riba) in Bible It is not that only in Islam, interest is prohibited even in Christianity, the prohibition of interest is eminent. We have even seen above that even Jews were prohibited from interest based activity according to the Qurans verse. Following are the quotes from the Bible proving the prohibition of Riba. Thou shalt not lend upon usury to thy brother; usury of money, usury of victuals, usury of any thing that is lent upon usury. [Deuteronomy 23:19] Lord, who shall abide in thy tabernacle? Who shall dwell in thy holy hill? He that walketh uprightly, and worketh righteousness and speaketh the truth in his hearth. He that putteth not out of his money to usury, not taketh reward against the innocent.[Psalms 15:1, 2, 5] He that by usury and unjust gain increaseth his substance, he shall gather it for him that will pity the poor. [Proverbs 28:8] Then I consulted with myself, and I rebuked the noble, and rules and said unto them, ye exact usury, every one of his brother. And I set a great assembly against them.[Nehemiah 5:7] After identifying that interest has been prohibited in the past as well as in the contemporary era by the Creator of mankind as He tends to proscribe this act, it would be important to understand the types of Riba which are as follows: Riba Al Jahiliya/ Riba An Nasiyah That type of debt where specified reimbursements period and an amount in surplus of capital is fixed. (Usmani, 2002) Riba Al Fadl / Riba Al Hadees Riba Al Fadl means that the amount or goods paid back in excess other than the Qard (Loan) or which is taken in exchange of explicit homegenous products and are utilized in their hand to hand purchase and sale as explained in the Hadees. (Sahih Muslim, Karachi, V.2, P.25). (Usmani, 2002) Gharar The second of the ailments identified by the Islamic Juriprudence is known as Gharar. Gharar, is usually understood to denote ambiguity in the contractual conditions and/or the uncertainty in the survival of an essential good in an agreement and this creates concerns for Islamic scholars in the light of Islamic Jurisprudence. Shariah does include the ideology of Public benefit, denoting that, if something is tremendously in the public favor, it may be executed and so hedging or alleviation of preventable business threats, do come into this class but further elaboration is as follows by Islamic Scholars: Gharar is where the participants that is the buyer and seller, dont know what one bought and what the other sold. Professor Mustafa Al-Zarqa the researcher of Shariah has written Gharar can be defined as the sale of possible goods whose characteristics or individuality can not be established, due to the dicey character which makes this form of business related to gambling. Hadith for bidding this prototype of trading in Gharar (jeopardy) are available in books of Hadith. Some examples of Gharar transactions are (e.g. trading any fish swimming in the sea or a bird from a collection of species flying in the sky an unborn calf in cows womb, are some of the saleable goods which cannot be probed and examined as their true traits are unknown. Islamic Jurisprudence researchers have given many complete definitions of Gharar. They have also evolved with the idea of Yasir (minor risk); a financial deal with an insignificant risk is believed to be Halal (permissible) while transactions involving significant risk (Bayu-ul-Gharar) is deemed to be Haram. Gharar is one of those impediments which limit the power of decision making. An agreement that has any element of Gharar is not valid from the Islamic Jurisprudence view, irrespective of whether the parties to the agreement agree upon the agreement. The lexical meaning of Gharar is to deceive, cheat, delude, lure, entice and uncertainty. Gharar can be defined as follows: The uncertainty that is present in the basic elements of an agreement, wording, subject matter, consideration and the liabilities. Example of events which have been prohibited in Ahadith because of Gharar are: Sale of unborn Camels baby still in the mother abdomen. Sale of flowers before they appear on the plant. Sale of fish that comes in one throw of net. Sale of wool on the body of the animal. Qimar is that event in which there is a possibility of total loss to one party.Every gambling is a form of Qimar but Qimar is not limited to gambling. The Contract in which the participants, at the moment of implementing the agreement, cannot determine or rather decide as to how much it would give or receive. Causes of Gharar Though the conditions can be many but the most commonly occuring causes can be identified in (Samadani, 2007) are as follows: Uncertainity relating to the existence of thing sold Uncertainity relating to the possession of thing sold Uncertainity relating to the thing sold itself Uncertainity relating to the price Uncertainity relating to the payment of price Uncertainity relating to both thing sold as well as the price Types of Gharar Some types of Gharar are as follows: Baitan fi Bai (Twin sales) Safaqa fi Safaqa (Twin contracts) Bai urban/urboon Forward contract Superficial bull whip effect In the dark ages, many contracts were in vogue, where that condition would turn trade into treasure hunt. Like the seller would have different pieces of cloth and the buyer would cast a stone and would get the cloth where the stone would land. The Holy ProphetSallalaho Alaihi Wassallam has disallowed all such contracts. After identification of the prohibitions in the current financial system where interest and Gharar (Uncertainity) are a part and parcel of day to day proceedings. The need for a system which eliminated such illnesses was required. Another reason was that, after the jolts of 1930s and other economic crisis of 1970 and now of 2008 that followed, the financial world started talking about alternatives to the present systems of (Communism, Socailism and Capitalism). Though Capitalism is the largest spread system across the globe but by all means its jolting has been witnessed since 1839, 1930, 1970 and 2007. Is it at the verge of its end? Nobody knows but people have started looking for options. Islamic Economics Islam provides an economic system based on rules and principles defined by Islamic Jurisprudence. Human being is just a custodian of wealth and the true ownership is with Allah Tallah. Islamic Economics point of difference is that it not only deals with the materialistic needs of human being rather it also fulfills the spirtual needs at the same time. The main theory behind the Islamic economics is that money is only a means of exchange (in other words money tends to serve as an intermediary between the transaction of asset) and not a product that can be sold or discounted. Here it is noteworthy that a human being is not the true owner of wealth as it belongs Allah Tallah rather he has been given only the right to use it as the second owner, keeping in mind that he would be questioned on the day of judgement of his usfruct. Islam doesnt deny the forces of law of demand and supply but does emphasis on the consumer as well as the government to abide by the rules of Islam. Islam as a De en has the capability to accomadate all good things that life has to bring accept those which are outrightly against its divine principles. To summarise Islamic economics can be defined as the humanitarian goal of achieving the well-being of all members of the human family which cannot be attained by concentrating primlairly on the materialistic needs of comfort and creating maximisation of riches as the core intention of economics. Hence it is part and parcel to raise the spirtual content of well being of the whole society and reduce all symptons of anomie, like family disintegration, heavy interest based debt payments, conflict and tension, crime, alcholism, addiction to drugs and psychological illness, all signifying lack of internal delight and satisfaction in the life of human beings. Captialism similar to socialism, both have fallen short to show the way to their followers such an overall welfare. As a prospective measure, it is seems almost inevitable to put down the outlines of a new scheme of operations which helps maximise human well being as per the divine guidelines of Allah Tallah. As per (Khan, 1993) that since the unavailibilty of an Islamic society anywhere in the world the Islamic economics at present is scarely able to express or articulate Islamic position on economic issues as per its connotations. Islamic economics implies a serious execution of the Islamic strategy to raise the spirtual as well as the material well being of all people and to establish socio-economic justice, which is the vital objective of the Islamic message. On the spirtual side, the peace of mind that is fundamental to inner happiness cannot be attained except by increasing the nearness of the human being to his Creator, which Islam is capable of bringing about but secularism doesnot even aspire to. (Chapra, 1992). Islamic Banking Banks serve as the heart of any economy as they pump funds into the economic veins of a country. The four main functions that the bank performs are: lending and deposit business securities issuing asset management and foreign exchange trading. Trading has been given as an alternative to interest based transactions by Quran e Kareem as mentioned above. In the light of this fact the comtemporary Islamic scholars after reviewing the current financial system have comeup with different modes of financing to fulfill the much needed requirement. In the futher discussion we shall discuss those modes of financing. But first we would define Islamic banking as per the State Bank Of Pakistan. Islamic banking has the same utility as of conventional banking except that it asserts to function in agreement with the rules of Islamic Jurisprudence, called Fiqh ul Muamalat (Islamic regulations for transactions). The indispensable law of Islamic banking is the sharing of gain and loss and the prohibition of interest and Gharar. The Islamic concepts, that are mainly used in Islamic banking are profit sharing combination of isolated investor and worker (Mudharabah), safekeeping (Amanah), joint venture (Musharkah), Diminishing Musharkah, cost plus profit (Murabahah), asset finance (Ijarah), manufacturing (Istisna) and agricultural goods (Salaam). Islamic banking proposes to a structure of banking or participatory pooling actions that is dependable on Islamic Jurisprudence (Shariah) and channeled by Islamic economics. Islamic law prohibits interest the collection and payment of Usury. Islamic law also disallows trading in financial risk (since it is a form of gambling) discussed abov e as Gharar. In addition, Islamic Jurisprudence excludes participation in businesses which are deemed Haram (a going concern which deals in pork or alcohol). At the verge of 20th century, quite a few Islamic banks were crafted, to cater to this specific banking market. (Hassan, 2002) In an Islamic mortgage transaction, instead of giving debt to the buyer, money is utilized to purchase the item that is, money is a medium of exchange and not a commodity. Money cannot be rented, is a fact of Islamic Economics. The supplier acts as a direct vendor for the bank, after acquiring the goods the bank proceeds it to the customer at a gain, while allowing the buyer to payback the bank in installments (assets backed financing). However, for any delay in payment the bank cannot charge additional costs as profit or compensation. To mitigate its risk and close in on the vulnerability of the customers default, the bank keeps strict collaterals as its bail out. After the possession of goods the tangible asset is listed in the name of the buyer, by the Islamic banks. Such a bargain is known as Murabaha. Likewise Ijara wa Iqtina or Ijara bi Tamleek, which is alternative to real estate capital finance. Islamic banks handle proportionate income financings for means of transportations in a likewise manner (vending the automobile at a price, which is higher than the current value of the asset in the market, to the lessee and then holding up the title of the medium until the pre-agreed proceeds are paid up). The previous profits are taken into consideration setting up a profit and loss sharing ratio. Consequently the banks profit on the proportionate income financing is equivalent to a specific proportion of the companys revenues. As soon as the investment amount of the proportionate income financing is reimbursed, the earning-distribution arrangement is terminated. This specific exercise is entitled as Musharaka. Supplementary to this, Mudaraba is venture capital financing where a talented worksman who provides labor while funding is offered by the bank, so that one executes business on behalf of the other. Such participatory indulgence between capital and labor reflect the Islamic conceptions that the borrower should not absorb the peril/price of a collapse, since it is Allah Tallah who determines that failure or success, and intends that all those involved reap or bear it as per their obligations. Last, Islamic banking is bounded within Islamically permissible transactions, which eliminate those involving alcohol, pork, gambling, etc. Thus Islamic investing is the only acknowledgeable form of investment, and asset backed transactions are encouraged at the same time the social illnesses are not propped up. The concepts and financing modes in Islamic banking are as follows: Shariah Advisory Council/Consultant Islamic banks and banking organizations that offer Islamic banking products and services (IBPS banks) are required to establish Shariah advisory boards/ consultants to recommend them and to ensure that the procedures, activities and systems of the bank comply with Shariah doctrine. Amanah (Safekeeping) In Amanah, a bank is reckoned as a warden and custodian of endowments. Person deposits money in the bank and the bank assures to repay the whole amount of the belongings, or any portion of the remaining sum, when the depositor claims it. In this situation the Bank becomes the Amin (the Guardian) while the saver is known as Rab-ul-Maal. In Amanah the bank cannot consume this money until and unless the depositor permits its Amin. Mudarabah (Profit Loss Sharing) Mudarabah is a form or contract established between an investor and an entrepreneur, whereby the entrepreneur can finance the investments for its business proceedings. Any gains generated shall be distributed between the investor and the entrepreneur as per the consented ratio, while only the investor stands all the losses if transpired, it has to be bared in mind that the due attentiveness of the entrepreneur will be evaluated and in case of carelessness he/she would have to bear the consequences. The profit-sharing maintained until the proportionate income financing is reimbursed. The bank receives its share for the time value of its money through a set proportion in profit earned that is attached to the debtors profits. (Hassan, 2002) It is a corporation in proceeds between investment and skill, where one provides funds whereas the other supplements proficiency, expertise and administration. The latter is called as the Mudarib. Any profits accumulated are distributed amongst the participants on a pre-settled ratio, while loss is borne only by the investor. It is noteworthy that any increase in capital shall be the property of Rab-ul-Maal the capital provider according majority of jurist. For example if the sheep provided by rab-ul- maal investor and sheep gave birth to lamb, the lambs would be in the ownership of Rab-ul-Maal not the Mudarib (entrepreneur). The capital provider earns profit from the business on the basis of providing capital while the entrepreneur gets his share with respect to his efforts and endeavors. (Usmani T. M., 2004) Musharkah (Joint Venture) This conception is normally applied for business partnerships or mutual ventures. The profits made are shared on a settled ratio, while if losses are sustained they will be divided on the equity funds allocation ratio. This model is different from fixed-income endowing (i.e. proceeds of propotionate income financings). The two different types of Musharkah modes are Shirkat ul Ooqud and Shirkat ul Milk as per Islamic Jurisprudence. Further elaborating the types can be divided into specific main categories with further sub types each. In Islamic finance the things taken into consideration are Shirkat ul Ooqud (Partnership in Trade) and Shirkat ul Amaal (Partnership in Services). Shirkat ul Amwal (Partnership in trade) Shirkat Ul Amal (partnership in services) Shirkat ul Amwal (partnership in trade) is the mode of partnership where all partners invest some capital into a commercial enterprise. Shirkat Ul Ammal (partnership in services) is the form of partnership where all the partners jointly undertake to render some services for their customers and the fee charged from them is distributed among them accordingly to an agreed ratio. (Usmani T. M., 2004) Musharkah translates itself into a relationship established under a pact by the

Friday, October 25, 2019

A Psychological Analysis of Alice Walkers Everyday Use Essay -- Every

A Psychological Analysis of Alice Walker's Everyday Use  Ã‚     Ã‚   The human mind is divided into three parts that make up the mind as a whole. These parts are necessary to have a complete mind, just as the members of a family are needed to make up the entire family. The use of components to equal a whole is often exercised in literature. Alice Walker's short story, "Everyday Use," contains the idea of family and of the mind, therefore her work can be evaluated through psychological methods. Through their actions, the characters symbolize the three different parts of the mind: the id, the ego, and the superego. The first type of mind division, the id, "constantly strives to satisfy basic drives...[and] seeks immediate gratification" (Myers 379). In "Everyday Use," Dee's personality is equivalent to the id because she seeks her own personal gain and does not necessarily consider the consequences of her actions. Mama, the narrator in "Everyday Use," says that "Dee wanted nice things. She was determined to stare down any disaster in her efforts" (Walker 92). Dee strives for satisfaction in all she does; she will do everything in her power to get what she desires. The story recounts a situation in which Dee wants some quilts that were stiched by her grandmother, but Mama has already promised these treasures to Dee's sister, Maggie. Mama said that as she "[moved] up to touch the quilts. Dee moved back just enough so that [Mama] couldn't reach the quilts. They already belonged to [Dee]" (Walker 96). Mama explains that Dee is determined to gain possession of the quilts. Although the quilts belong to her mother, Dee has already mentally determined that the quilts belong to her. Dee's personality is comparable to the id branch of the... ...The use of psychological strategies in the Walker's work shows that the characters are joined and create one unit, a family. Works Cited Alice Malsenior Walker: An Annotated Bibliography, 1968-1986. Eds. Louis H. Pratt and Donnell D. Pratt. Connecticut: Meckler Corporation, 1988. Everyday Use: Alice Walker. Ed. Barbara T. Christian. New Jersey: Rutgers University Press, 1994. Myers, David G. Exploring Psychology. Third edition. New York: Worth Publishing, 1996. Walker, Alice. "Everyday Use." Literature: An Introduction to Fiction, Poetry, and Drama. Sixth edition. Eds. X.J. Dennedy and Dana Gioia. New York: Harper Collins, 1995. http://www.dc.peachnet.edu/~shale/humanities/composition/handouts/sample/walker.html http://www.luminarium.org/contemporary/alicew/ http://www.seattletimes.com/extra/browse/html97/altalic_051697.html

Thursday, October 24, 2019

Nursing Reflection

Going back through previous experiences and tracing back the footsteps we have made allows us to reminisce about the good things that have happened in our lives. Somehow the undesirable memories would also seep in as they are part and parcel of our existence that we cannot do away with. This process gives us an opportunity to encounter past events that can necessarily aid us in the future. In the Nursing practice, reflection is a retrospective approach that evaluates historical processing of experiences that takes place in a structured form and is deemed highly essential (Eliis, Kenworthy and Gates, 2003, 156). In the clinical practice, this retrospective activity facilitates in the promotion of quality care. The art of reflection however in the nursing practice focus on self rather than on the situation as the care provider (Quinn, 2000, 252). The process is a reflective practice that is a cognitive act by which we are allowed to make sense of our thoughts and memories (Taylor, 2000, 43). This method therefore allows a practitioner to generate a complementary or alternative form of knowledge and a set of choices in the evaluation of the best course of action. It is a â€Å"deep learning† experience that reflects on our knowledge and theories and go beyond merely thinking about what we do but involves recalling what had occurred and analyzing the situation by interpreting important information recalled (Taylor, 2000, 4). In Nursing, the reflective process is aimed about our own practice (Taylor, 20000, 3); that nursing education and research cannot do without as a common practice in the learning mechanism in which we all engage in a regular basis (Slevin and Basford, 2000, 483). With a main purpose of enabling the practitioner to learn from experiences and increase clinical effectiveness, reflection is highly essential to the nursing practice. For this process to be effective, Johns has provided a guided reflection which employs different models of self-inquiry to enable a practitioner to realize desirable and effective practice (2002:3). Considering that this involves a cognitive and emotional component that is expressed through analysis, different models would aid us feel comfortable about the activity. John’s model can be used in preparation for or during clinical supervision and applicable to specific incidents rather than more general day to day issues and particularly applicable to those who prefer a structure approach (Ellis, Kenworthy and Gates, 155). Gibbs Model use term description rather than â€Å"a return to the entire experience† as a form of reflection is considered as a simpler method but one where a mentor or facilitator is likely needed(Davies, Bullman and Finlay, 2000, 84). Both models however in supervision practice can be used to facilitate clinical governance through the promotion of quality care where an exchange between two professionals employing this technique seeks to improve their practice (Watkins, Edwards and Gastrell, 2003, 266). To maximize the potential benefits of clinical supervision, nurses have to learn to be comfortable with this retrospective activity with the aid of Gibbs or John’s models depending on where one feels most comfortable working with (Ellis, Kenworthy and Gates, 156). Gibbs Model for reflection As a simple and easily attainable method, Gibbs model uses term description rather than a return to a previous experience (Davies, Bullman and Finlay, 84). In psychology and teaching, reflection facilitates as purposeful change and competencies such as psychological-mindedness and self-regulation (Clutterback and Lane, 2004, 196). Usually this process involves a mentor, teacher or supervisor working with a student at different stage while allowing for individuality. Although less specific than re-evaluating an experience; Gibbs in his cycle or reflection makes the action planning a more overt component of reflection (Davies, Bullman and Finlay, 84). Gibbs provides that in one’s own practice, an essential aspect of working as an autonomous practitioner involves a critical analysis of one’s role and responsibilities from a personal perspective (Gibbs, 1998,13). It is a process that requires others to become involved that encourages feedback and constructive comment to recognize your role and value in a health team (Humphris and Masterson, 2000, 77). John’s Model for reflection John’s model uses the concept of guided reflection to describe a structure supportive approach that helps the practitioner learn from their reflections and experiences (Quinn, 2000, 572). The approach involves the use of a model of structure reflection, one-on-one group supervision and the keeping of a reflective diary (Quinn, 572). The practice would aid the practitioner in learning from a reflection of their experiences. John’s model is more detailed as it provides a checklist of specific points necessary for reflection (Davies, Bullman and Finlay, 85). The only problem cited with John’s model if it imposes on a framework that is external to the practitioner leaving little scope for inclusion as cite by other theories. John’s model can be used in preparation and during clinical supervision consisting of 6 steps that is applicable t specific incidents rather than more generalized day to day issues facing the supervisee (Ellis, Kenworthy and Gates, 155). This model is highly attractive to those who prefer a structured approach but others may find this type more restricting (Ellis, Kenworthy and Gates, 156). Criticisms against the reflective process Reflection involves cognitive and emotional components that are expressed through analysis and to maximize the potential benefits of the clinical supervisor nurses have to learn to feel comfortable with this retrospective activity both during and in preparation for supervision sessions (Ellis, Kenworth and Gates, 157). This could be deemed time–consuming in an institution where time is often an important element in the delivery of care. A time for reflection can be done positively only when a situation or a need arises. This is probably why reflection method is considered a radical approach to nursing education and practice given the ample time training can afford (Slevin and Basford, 483). Yet reflection is valuable if done in partnership with someone else which led Davies et al to believe that the approach is quasi-therapeutic (Davies, Bullman and Finlay, 86). The principles have been transferred directly from client-centered psychotherapy and may trigger more powerful responses such as guilt and anxiety. Practitioners are therefore evaluated before they are given a chance to try this one out according to conservative studies. However with practice, it is assumed that a reflective process may not hold as much negative impact for the learned practitioner in an answer to the demands for a continuous review of a practice in a critical and analytical manner that support the reflective concept. The Value of Reflection for the Student Nurse As an essential component of scholarly practice, reflection, reflection is a method for generating a complementary alternative form of knowledge and theory (Humphris and Masterson, 2000:78).   Regardless of any negative criticism a reflective method may elicit from critics, I consider this to be a valuable tool. For the student, this is a process were one internally examines and explores an issue of concern triggered by an experience that clarifies the meaning of perspectives (Canham and Bennett, 2001, 185). The nursing practice has been surrounded by a world of silence and reflection is a way for nurses to reflect that is enhanced and introduced in the nursing curriculum (Guzzetta, 1998, 102). Often in the professional practice, nurses have encouraged silence among themselves in their health environment and setting while usually developing a shared professional voice with her team. Oftentimes, her relationship with the rest of the health team and other professionals faced difficult efforts because of the autonomy. The process of reflection allows one to air out her sentiments and ideas within her group or to a mentor or a supervisor during moments of reflection that could be produced as a shared voice for the team. Developing a habit of reflection is therefore a must for nursing education in order to uncover dimensions of experiences such as hidden and explicit meanings of behavior that can aid a student nurse in identifying her own perspective of the nursing practice that is highly useful in her entry to the profession (Guzzetta, 1998, 103). For a student in nursing, one must therefore develop a habit of reflection in order to uncover experiences and the meaning of behavior, values and thoughts that could readily prepare one for professional practice. It should be noted that the reflective process can helpfully aid in teamwork where one has the chance to relay sentiments after reflection of her past experience.Nursing education must therefore develop and evaluate innovative strategies to prepare nurses to meet the challenges of the rapidly changing health care system and for lifelong learning (Johns and Freshwater, 1998, 149). Reflection and reflective practice are currently receiving attention as a strategy yet little is known about the process of becoming a reflective thinker, how to teach skills needed for reflection, or the barriers and facilitators to becoming a reflective practitioner (Clutterback and Lane, 2004, 198). However a reflection process is worthy of study and practice that should initially be started and adapted as a core training for everyone wishing to professionally practice nursing as a positive way to analyze the development of reflective practice abilities. Bibliography Canham, Judith and Bennett, JoAnne, 2001, Mentoring in Community Nursing: Challenges and Opportunities, Blackwell, London, 2001. Clutterback, David and Lane,Gill, 2004, The Situational Mentor: An International Review of Competencies and Capabilities in Mentoring, GowerHouse, London. Davies, Celia, Bullman, Anne and Finlay, Linda, 2000, Changing Practice in Health and Social Care, Sage, London. Ellis, Roger, Kenworthy, Neil and Gates, Bob, 2003, Interpersonal Communication in Nursing: Theory and Practice, Elsevier Sciences, Orlando. Gibbs, Graham, 1998, Learning by Doing: A Guide to Teaching and Learning Methods, Oxford, London. Guzzetta, Cathie, 1998,Essential Readings in Holistic Nursing, Jones Bartlett, Maryland. Humphris, Debra and Masterson, Abigail Masterson, 2000, Developing New Clinical Roles: A Guide for Health Professionals, Elsevier, Florida. Johns, Christopher, 2002, Guided Reflection: Research in Practice, Blackwell Publishing, Perth. Johns, Christopher and Freshwater, Dawn, 1998, Transforming Nursing Through Reflective Practice. Blackwell, Perth. Quinn,   Ã‚  Francis M. 2000, The Principles and Practice of Nurse Education, 4rth ed., Nelson Thorne, London. Slevin, Oliver and Basford, Lynn, 2003, Theory and Practice of Nursing: An Integrated Approach to Caring Practice, Nelson Thomas, London. Taylor Beverly, 2000, Reflective Practice: A guide for Nurses and Midwives, Allen and Unwin, St. Leonard. Watkins, Dianne, Edwards, Judy and Gastrell,Pam, 2003, Community Health Nursing: Frameworks for Practice, Elsevier Sciences, Orlando.            

Wednesday, October 23, 2019

Computer Based Learning †The Vikings Essay

The paper analyzes the effectiveness of computer based learning, factors that influence the learning process and the means of enhancing the technology towards a better instructional model. The Vikings – a learning package designed for history students is the base for this study. An evaluation of the package, its level of interactivity, the development model, its learning impact, and shortcomings are discussed in this paper. The paper also elaborates the changes in the design that will improve the learning model adopted in the Vikings package. The purpose of this paper is to establish the parameters that affect the learning process and how the computer based learning system can be used to make this learning process an enriching experience for the students. Computer Based Learning – A Brief The conventional classroom is slowly giving way to the computer based training applications that is universally accessible via the Internet. The personalized learning environment that this method offers has great potentials and can influence the learning process to a considerable degree. A successful prototype of this form of learning needs a high level of interactive media in tandem with an effective presentation of content that is simple to use and easy to relate. The market for this medium of learning has witnessed tremendous growth in the recent years with a wide variety of multimedia based learning tools available for the users. The use of multimedia and flash has not only made learning fun but has also facilitated retention and easy understanding of concepts. Many web based learning environments use innovative technologies that have revolutionized the learning process considerably over the past few years. Joyce A. Overfield and Lesley Bryan Lluka(2003) in their research article on evaluation of factors affecting computer based learning observe that computer based learning can be a valuable learning and teaching resource providing consideration is given to the nature of the student group. Availability and accessibility of computers is essential and students are unhappy if the support is lacking. These are some of the views that can aptly explain the effectiveness of the computer based learning system. This learning tool has improved learning experiences to a considerable extent as it does away with tedious conventional system of learning. The emergence of new technologies in this sector has collaborated to create a unique learning model for the students. This has not only set a new trend in learning but has revolutionized the way a student looks at his classroom project. Vikings – The Package The Vikings package is meant for students of history. The objective of the package is to impart historical facts and milestones to the students in a fun filled learning environment that makes the learning process easy and memorable. History has been labeled as a boring subject for many students and it can be a little tricky remembering facts and figures that relate to the distant past. The package uses maps and graphics to instill interest in the learner. The use of grid lines to mark specific study points and provide relevant information to the learner is a key feature of this package. The user needs to click on the relevant grid line to get details of the particular artefact related to the Vikings era. Terms used in the section are highlighted in red – a click on the highlighted term gives the user an explanation of the same. The developers of â€Å"The Vikings† claim that the package is highly interactive and excellent learning tool for students of history. The presentation of historical facts in a manner that facilitates learning is of prime importance in this application. The tool applies the concept of learning through activity and context based learning that ensures the involvement of the student throughout the learning process. This is in sharp contrast to the classroom learning process that is mostly abstract. A review of the two scenario presented below will make the contrast in both the learning modes clearer: Scenario 1: A teacher giving a lecture on the Vikings era and stating the facts verbally where the student has to be very attentive to relate the facts presented before him. Scenario 2: A student going through the Vikings package where a click of the mouse will give him the relevant information – pictorial description and maps on the screen relate to his cognitive senses and learning happens faster. The application uses the interactive instruction model that is designed to elicit some response in the user in the form of a mouse click. The programmed instruction with the aid of well-designed stimuli in the form of graphics acts as the user interface. A few basic factors that set the scenario 2 apart from scenario 1 are learner control, interaction level, learner motivation, collaborative learning, and navigation system that are discussed below. Learner Control Vaughan (1998) has described Computer Based Learning interactivity as empowering the end user of the package by letting them have control of the content and flow of information. The learning tool, â€Å"The Vikings†, simulates an environment where the control over learning is not completely in the hands of the student. The student decides the pace of learning but the path of learning is guided. In scenario 1 the student has to attend classes at the pre-defined timings and the teacher decides the topic of learning. In contrast the application allows the student the liberty to choose his topic of study and the sequence that he wants to follow at his own pace. It has been observed that by handing over the control of learning to the students enhances the learning experience. The advantages of learner control include greater individualization of instruction, increased sense of personal responsibility for learning, and the potential to optimize learning efficiency. (Interactivity: What is it and What can it do for computer based instruction? Terry K Borsook and Nancy Higginbotham-Wheat – Hannafin and Colamaio, 1987). A student who is a quick learner will have no problem going through the package and grasp the contents in one or two sittings. However, a slow learner will need time to grasp the information handed out – but he has the advantage of taking things slow and pacing his learning to his comfort level. The control of the learner over the entire learning process is seen as a positive reinforcement. The application should allow the student to decide his path of learning. An ideal learning application provides regulated control to the learner with the scope of browsing through the modules, set his learning objectives and pace of learning. Any additional related information or links to these should be provided to enable the student to look up on these extra bits of information. This not only enriches the learning experience but also boosts the confidence level of the learner. A systematic approach and relevant content packaged with attractive and compelling presentation will result in a satisfying learning experience. One of the concerns that have been observed is that giving too much of control over the learning experience may not be good since the learner does not know what is best for him. Borsook and Higginbotham-Wheat (1991) state that too much of control in the hands of the learner can shift the locus of control from one party to another and that diminishes true interactivity. Regulated control with guided flow of information is a better option. The Vikings package gives very less control to the student – the flow of information is directed by the package but this is one of the shortcomings of the tool. Allowing more leverage to the learner will make the learning tool more effective as this results in positive attitude towards learning and motivates them towards their learning goals. Interaction level The most effective teaching method involves a high level of interaction between the teacher and the student. A dedicated teacher is one who understands the student’s learning capacity and his shortcomings and guides him through with effective feedback. A two-way communication between the teacher and the student is very effective in the learning process. Computer based learning applications are continually striving to achieve the human to human interactivity level and have been quite successful in this venture with the aid of multimedia based technologies. The level of interactivity in the learning application tool is of prime importance for it to be effective. The representation of information through graphics and on screen presentation is the required stimuli that elicit some sort of response from the user, such as a mouse click. The application tool then responds to the user with relevant data. This process of interactivity in the application makes the learning process effective. Feedback is an integral part of interactivity. Berlo (1960) states in his work â€Å"feedback provides the source with information concerning his success in accomplishing his objective. † A classroom lecture where the teacher gives lecture to the class without class participation is quite ineffective. It is difficult to gauge in such a situation if the learning process was successful. An understanding of the student’s perception of the contents is essential. This is one of the essential features that a learning application tool should incorporate for it to be a successful learning model. The instructional design should take care that the learning model has scope to interact closely with the learner and guide him through the process for effective learning experience. The level of interactivity and feedback element present in â€Å"The Vikings† application is not substantial. A student going through the package is only following instructions that are being presented to him. Statements like â€Å"Click here to begin† and â€Å"Choose your artefact and click on the square to travel back in time† – these are some of the instructions that are provided to the student. This generates response from the student in the mode of mouse-click and the application narrates the relevant contents on the screen. The student needs to go through this text but this does not ensure learning. The application has no way of evaluating if the student has perceived the information presented to him correctly. There is no feedback mechanism that is applied in this model. This leaves the learning model incomplete. Proper feedback and evaluation gives the student a sense of his learning objectives and how much he has succeeded in this direction. Constructive feedback gives the student a clear picture of how much he has learnt, where he went wrong and what he should do to correct his mistake. Modes of interaction between the learner and the learning application model can be identified at different levels. The basic form of interaction is one that presents the stimuli to the learner and elicits some kind of response in the form of a mouse click or key press. A higher level of interaction that ensures the effectiveness of the learning process involves evaluating activities presented to the learner at the end of a module to gauge his understanding and performance level. This form of interaction gives a clear picture of the learner’s progress as feedback. The inclusion of this parameter in the instructional design of the learning application model is vital. Directing the learner to key learning points and providing links to related concepts enhances the quality of learning and promotes better understanding of the subject matter. Instances of such interactivity are problem-solving modules, puzzles, quiz, and brain twisters that ensure active participation from the learner. Engaging the learner in different kinds of activities related to the context enhances the learning process. This not only ensures that the learner has successfully grasped the contents but also increases the effectiveness of the model. One of the benefits of such activities is the interest level that is created in this type of learning environment. Learning becomes a fun activity and not a dreaded cumbersome experience that one goes through reluctantly. Once the interest level is high the learner is ready for more. He is willing to explore the unknown territories in pursuit of an in-depth understanding of the context. The learning process in such cases is unintentional and not deliberate and hence more effective. The multimedia and other high-end technology available have the potential to achieve this dream-learning model. Another key feature that determines the effectiveness of the learning application model is the quality of content. An application may provide all the features of good interactivity and presentation in terms of graphics and display, but a poor quality of content will negate all the rest. A package rich relevant content with suitable links to additional related information will ensure learning effectiveness. This leaves the control of learning in the hands of the learner. An individual may wish to go beyond the realms of his subject matter and explore other related areas in this way. Simulated learning environment in computer-based interaction is another excellent tool for learning. Simulations use selected elements of some world, real or imaginary, which operate together according to rules (Greenblat 1988). In such cases the learner can experience an imaginary sequence in which he can interact and learn. This kind of learning experience is a gradual process where the learner is allowed to make mistakes and learn. Teaching the history of Vikings era using this mechanism is not only an interesting option but also a powerful learning tool. It might be adventurous to move into the Vikings era and view the events of the past unfold in front of the student. The narration of the events in the background in synchronization with suitable graphics and animation will surely captivate the student’s attention and allow for greater learning experience. But it must be kept in mind that simply viewing the events of the past as an audience is not enough – the active participation of the learner is equally important to hold his interest level and retain the subject matter. Learner Motivation Kruse (2007) states that the success of any computer based learning package depends on learner motivation and even the most sophisticated package will fail if it does not motivate the students to learn. Computer games have managed to captivate the user’s attention to such an extent that everything else is forgotten. This is a classic example of motivation and interest that this type of software generates in the user. Educational models too can apply this theory while designing the learning package. The essential ingredient that is required to hold the learner’s attention is the active role of the learner in the learning process. There are several ways of ensuring that the learner actively takes the control of learning in his own hands. The interactivity of the learning package is one of the deciding factors that motivate the learner to proceed. The system should allow the learner to steer the path of learning. Enabling the student to browse the information and guiding him through the learning process will hold the student’s interest and motivate him to learn more. Structuring the learning content into a story telling format with compelling dramatic sequence will keep the student highly engrossed. The absorption of the learning material will be faster and effective. The Vikings package does not include this feature and the presentation of facts is in form of text that the student needs to go through. The effect of presenting the same facts through narration in the background will hold the student’s attention and interest. The ARCS Model of Motivational Design by Keller provides the direction to successful instructional design in this context. The ARCS model identifies four strategic components for motivating instruction. One of the basic parameters for keeping the student interested and motivated in the subject matter is his attention. Computer based learning has an edge over other conventional tools of learning like books in this context. The visibility and presentation of information through attention grabbing graphics and multimedia tool make this a more effective learning platform. Once the attention of the student is on the learning tool the application needs to stimulate the learner’s curiosity that in turn leads to search for answers and in-depth study of the learning module. The relevance of the content is another aspect that is important in learner motivation. This is a more goal centric strategy that appeals to the objective needs of the student. The objectivity of the study needs to be defined so that the student is aware of the purpose behind this learning activity. This keeps the student focused on his goal and helps him in the learning process. The application needs to arrange the information in such a manner that the student finds it easy to approach and understand. The sequencing and relevance of the information presented to him is vital. Correlating the tasks and facts in the learning module need to be very precise. The next step in motivating students is confidence-building strategy. The goal of this mechanism is to instill confidence in the learner that he is on the right track and that his learning objectives are being met. There are various technologies available that can be effectively used to evaluate the student’s understanding level of the module and based on this evaluation effective feedback is given to the student regarding his progress. Tasks for evaluating should range from simple to challenging levels that test the student’s perception. This challenges the student to go from one level to the other and enhances the learning process. The satisfaction of the learning experience is critical for measuring the effectiveness of the overall package. The achievement of meeting the goals of learning forms the base for a satisfying learning experience. Positive reinforcement and constructive feedback mechanism are instrumental in achieving this strategy. The Vikings package will attract the attention of the user with its graphical and pictorial representation but that is not enough. It is difficult to hold the interest of the learner with only graphical presentation of information. The student will very easily get bored with the facts presented in this manner. The package needs to adopt novel strategies to hold the student’s attention for a longer period of time. Use of storytelling mechanism, simulations and activity based learning modules as discussed earlier will motivate the student and enrich the learning experience. Collaborative Learning When students are able to participate in active learning activities, they find the learning more pleasurable and satisfying than non participative events (Fry and Coe,1980). The principle of collaborative learning provides many learning opportunities and enriches the learning experience considerably. A learning environment that allows interaction between the learners is highly conducive. A classroom environment provides this kind of scope to the students where a group of students sharing the same learning goal coordinate with each other, communicate their ideas, and share their understanding of the subject matter. Jonassen (1988) has stated in his works that the effectiveness of any learning environment is based on the types and levels of cognitive and metacognitive activity engendered in the learners. It is widely accepted that learning is enhanced in instructional settings where students are engaged in processing personally relevant content and are reflective during the learning process. Another feature of this learning principle as suggested by Slavin (1997) is that the reward structures inherent in collaborative environments have been found to have a positive effect on student motivation. Computers provide a stimulus for learning by increasing social interactions and cooperation (eg. Hoyles, Healy & Pozzi, 1992). The application of this mode of learning can be effectively used in computer based learning with the aid of various multimedia and authoring technologies available. The Vikings uses one such strategy in its learning application – the principle of situated learning or situated cognition. This is defined as â€Å"the notion of learning knowledge and skills in contexts that reflect the way the knowledge will be useful in real life† (Brown, Collins and Dugiud, 1989). The application is meant for two or more students at a time with the same learning objectives. The discussion of the facts and information between the groups of learners ensures the understanding of the subject matter. The collaboration between the students and the package offer an effective learning environment. One of the discrepancies of this learning principle is that collaborative learning may not have the desired outcome if the learners do not share the learning goals. Exchange of views and ideas may not enrich the learning experience, as some of the learners may not be attentive to what is being discussed around him. History is a subject that explores the past and discovers the roots of civilization and the world. The Vikings application aims to present the facts from the Vikings era to enable the students an understanding of how things were in those times. As such the application should aim at providing facts from the past that enables a better understanding of the world today. The Vikings package can implement some more principles of collaborative learning to create and effective learning environment. Use of interactive multimedia packages that enable the application to converse with the student and provide scope for evaluating the student’s knowledge and understanding of the subject matter is one method. Other methods involve the use of audio and visual depictions that is bound to impact the learner’s cognitive senses.