Economics and Management - unob.cz 1-2015.pdf · ECONOMICS AND MANAGEMENT 2015 1 Economics and...

UNIVERSITY OF DEFENCE / CZECH REPUBLIC

Economics and Management

2015 1

UNIVERSITY OF DEFENCE / CZECH REPUBLIC

ECONOMICS AND MANAGEMENT

2015 1

Economics and Management - p. 1 - 2015 Brno 30th September 2015

Published by University of Defence in Brno

ISSN 1802-3975

EDITORIAL BOARD

EDITOR IN CHIEF

Martin VLKOVSKY

Faculty of Military Leadership, University of Defence, Brno

Czech Republic

EDITORIAL BOARD

Ladislav ANDRASIK

Faculty of Electrical Engineering and Information Technology, Slovak University

of Technology in Bratislava, Slovak Republic

Ghita BARSAN

“Nicolae Balcescu“ Land Forces Academy, Sibiu, Romania

Vasile CARUTASU

“Nicolae Balcescu“ Land Forces Academy, Sibiu, Romania

Miroslav CEMPIREK


Czech Republic

Marijana CINGULU

Faculty of Economics & Business, University of Zagreb, Chorvatsko

Petr CECH

Institute of Hospitality Management, Prague, Czech Republic

Monika MOTYCKOVA


Czech Republic

Frantisek HANZLIK


Czech Republic

Hubert HRDLICKA

Language Training Centre, University of Defence, Brno

Czech Republic

Miroslav KRC


Czech Republic

Oto KUBIK

Academy STING – Private College, Brno, Czech Republic

Marek KULCZYCKI

The Tadeusz Kosciuszko Land Forces Military Academy, Poland

Stefan KURINIA

National Defence University, Warszaw, Poland

Ivan MALY

Faculty of Economics and Administration, Masaryk University, Brno, Czech Republic

Ivan MRAZ

General Staff, Prague, Czech Republic

Arpad POHL Faculty of Military Science and Officer´s Training, National University of Public

Service, Budapest, Hungary

Ladislav POTUZAK


Czech Republic

Milan SOPOCI

Armed Forces Academy of General Milan Rastislav Štefánik, Liptovský Mikuláš,

Slovak Republic

Oleg STANEK

The University of Quebec at Rimouski, Canada

Jiri URBANEK


Czech Republic

Cezar VASILESCU

Regional Department of Defense Resources Management Studies (DRESMARA),

Brasov, Romania

Jaroslav ZELENY


Czech Republic

Iva ZIVELOVA

Faculty of Business and Economics, Mendel University of Agriculture and Forestry in

Brno, Czech Republic

EXECUTIVE EDITOR

Vitezslav JAROS


Czech Republic

Copyright © 2015

All rights reserved. No part of this publication may be reproduced without the prior

permission of University of Defence in Brno University Press.

http://www.uqar.uquebec.ca/english/

5

C O N T E N T S

Dorel BADEA, Dumitru IANCU, Ghiţă BÂRSAN, Vasile CĂRUŢAŞU and Florin ILIE

CONCEPTUAL MODEL AND USEFUL APPLICATIONS IN INVESTIGATING

THE LEVEL OF PROTECTION OF CRITICAL INFRASTRUCTURES IN THE

TRANSPORT SECTOR ............................................................................................ p. 6

Tomáš BINAR, Jiří SUKÁČ, Radim UŠEL, Stanislav ROLC, Jan KŘESŤAN and Regina

MIKULÍKOVÁ

NEW PACKAGING MATERIALS TECHNOLOGIES AND THEIR IMPACT ON

MILITARY VEHICLES AND MATERIALS LIFE CYCLES ............................ p. 13

Marian BRZEZIŃSKI, Mariusz GONTARCZYK, Szymon MITKOW and Andrzej

ŚWIDERSKI

EVALUATION OF QUALITY OF DEFENCE INDUSTRY ENTERPRISES AS AN

ELEMENT OF LOGISTICAL NETWORK ......................................................... p. 19

Harald GELL

MOTIVATION OF STUDENTS …........................................................…………. p. 28

Dumitru IANCU, Dorel BADEA and Ghiță BÂRSAN

USING THE TOPSIS METHOD IN DECISION-MAKING PROCESS

CONCERNING LOGISTIC TRANSPORTS ........................................................ p. 38

Vítězslav JAROŠ

COMMAND AND CONTROL FOR PEACE OPERATIONS ........................... p. 45

Jaroslav KOMÁREK

CURRENT PITFALLS OF MANAGEMENT STUDIES ..................................... p. 51

Csér ORSOLYA

ASYMMETRIC WARFARE - THE SIEGE OF FALLUJAH ......................…... p. 60

Harald PÖCHER

ECONOMIC WARFARE: HEAVY LOSSES WITHOUT BLOODSHED ........ p. 72

Tajudeen Olalekan YUSUF and Sunday Stephen AJEMUNIGBOHUN

EFFECTIVENESS, EFFICIENCY AND PROMPTNESS OF CLAIMS

HANDLING PROCESS IN THE NIGERIAN INSURANCE INDUSTRY ......... p. 80

The Authors´ Bibliographies: .................................................................................... p. 89

The Reviewers´ Bibliographies: ................................................................................ p. 91

The language revision has not been made. The authors are responsible for the papers content.

6

CONCEPTUAL MODEL AND USEFUL APPLICATIONS IN

INVESTIGATING THE LEVEL OF PROTECTION OF CRITICAL

INFRASTRUCTURES IN THE TRANSPORT SECTOR

Dorel BADEA, Dumitru IANCU, Ghiţă BÂRSAN, Vasile CĂRUŢAŞU and Florin ILIE

Abstract: Generally, the transport infrastructure of a country, region, geographical area, etc.

represents an area of critical infrastructure (based on the modalities of defining it) both by its

contribution to the economic development of the geographic area under consideration and by

the consequences of its non-functionality relative to its social component. From a historical

perspective, since ancient times, the most prosperous regions were located either along major

communication routes or at their junction, representing growth poles and, based on the modern

theories of sustainable development, centers of societal sustainability. The article analyzes the

risks specific to transport as critical infrastructure using the CARVER method.

Keywords: transport, critical infrastructures, conceptual model, risk

1. Conceptual systematization

Returning to the above statements, it should also be mentioned the fact that blocking,

securing or even destroying transport capabilitiesis commonly used in military art as the

key factor for the success of a mission. In economic theory, it is stated that money is the

blood that irrigates the economy. Similarly, with regard to the field of critical

infrastructures, there exists the possibility of extrapolating this statement, the candidate

sectors being (taking into consideration multiple criteria, without minimizing the role of

others and not in any particular order) first, the field of telecommunications, of energy

and, of course, that of transport. In the same registry of analysis, the construction and

the maintenance of transport capacities are activities with a strong multiplying social

effect, creating numerous jobs and driving economic development horizontally, a fact

that is otherwise highlighted in the national development strategies or in those at the EU

level. In broad lines, in terms of the role of transport, we can say that, as activity, it

ensures the good carrying out of production in industry and agriculture, facilitates the

connections between the regions with raw materials and those where these are

processed, simplifies the convergence between human communities and even helps

regions that are located far away to get out of their isolation. Managing transport related

activities as critical infrastructure means finding the best means and applying them

accordingly so as to ensure their high protection. Reported to the meaning of

"criticality", it is a very good exemplification of the social function of management (to

act through people for people).

2. Creating a conceptual model

When considering transport as a critical infrastructure, given the complexity of the

domain (the diversification of the existing resources, the transport geography, the

7

automation, the infrastructure and the related logistics, the possible threats, the risk

analysis methods, etc.) simplifications are needed in order to create conceptual working

models. For the present paper it is envisaged three aspects that would lead to an

integrating representation, useful in the management of critical infrastructure protection.

A first such analysis that is necessary to consider is the one regarding the taxonomy of

transport and the relevant particularities. In accordance with the title of this paper,

without providing an exhaustive radiography, the relevant aspects taken into

consideration can be the following [1]:

- according to the traffic intensity, the railways can be main, secondary and local

(the main ones have large cargo and passenger traffic and are of fundamental

importance for the economy of certain countries and regions, connecting major

industrial centers, either within states or in neighboring countries);

- a component of the railways are the stations, which are classified into transit

stations and railway nodes (the common or transit stations predominate and unlike

railway nodes they represent stations where lines coming from at least three

directions intersect);

- in road transport (with two main elements-roads and vehicles), unlike in the case

of railways, the length of motor roads continues to increase, and the geographical

distribution of the road network is more balanced than that of the railways;

- water transport, with the two-components –maritime and river, is the cheapest of

all the types of contemporary transport because it does not require expenses for

the maintenance of the routes on which ships moving cargo travel and vessel

capacity is much higher than that of the units of road, rail and air transport and

hence the cost of transporting a unit of weight will be lower;

- air transport (having as main elements: air fleet, airports and navigation

directions) takes most of the long distance passenger traffic and a certain type of

goods (such as perishable goods, post parcels, precious items, high precision

technical equipment, medicines, etc.) being for some hard to reach regions

(northern regions, deserts, mountains, rainforests), the only possible type of

transport;

- the transport via pipelines (consisting of various tubes, final and intermediate

pumping stations, connection points and storage facilities) is one of the most

modern and cheapest means of transporting liquid and gaseous products (water,

oil, gas, petroleum products, brines, certain chemical products etc. ).

Of course, in addition to these means of transport, given the current practical needs of

the population and industries, there is the tendency of increasing the use of intermodal

transport.

A second aspect to be considered in creating a conceptual model of transport as critical

infrastructure is the typology of possible threats defined as any circumstance or event

with the potential to damage or destroy the critical infrastructure or any of its elements.

To summarize, the main threats to critical infrastructure for transport can be:

- terrorism through the systematic use of offensive violence against public and

private property, to compel certain individuals, groups and communities to change

their behavior and the promoted policy;

- the waterfall effect produced by the perturbation (the creation of malfunction) by

other critical infrastructure elements (e.g. - components of the energy or IT

sector);

- extension of the intensity and frequency of manifestation of extreme weather

phenomena or natural hazards (earthquake, hurricane, flood, landslides, etc.).

8

A special case of manifestation of the threats caused by terrorism is that of the large

urban areas (or other large towns) in which various events are organized (Olympic

Games, major sports competitions, meetings of international officials, concerts, etc.)

involving the participation of large masses of people. There is increased pressure in

these situations on the local transport networks that can be exploited as threat, the most

important vulnerabilities being: the faulty organization of security, the lack of effective

measures to decongest traffic, the schedule and the intensity of the circulation of the

inadequately adapted means of transport.

As special events recorded in the field of transport, one has to mention the intermodal

railway stations confronted in recent years with serious terrorist attacks and their

consequences: Madrid (2004, 13 bombs out of which 10 exploded, 4 commuter trains, 3

affected stations, 192 dead, 1,500 wounded); London (2005, 3 subway lines affected in

the King's Cross area - St. Pancras and a double-decker bus, 56 dead, 700 injured);

Moscow (2004, 2010, three suicide attacks with explosive devices, 4 subways stations

affected, 91 dead and 252 injured).

The third aspect considered for the proposed conceptual model covers the CARVER

methodology of analysis from outside to the inside, used for the first time by the US

special forces in Vietnam. The CARVER selection factors help select the best targets or

components to attack. For the factors under consideration a numerical value

representing the opportunity to attack the targetis allocated. The values are then placed

in a decision matrix that will lead to the achievement of certain prioritizations. The

significance of the acronym of the method is given the six letters as follows:

- criticality (C) means the value of the target (the primary consideration in directing

the actions), a target is critical when its destruction or damage has a significant

impact on military, political, economic or social aspects;

- accessibility (A) refers to the independence of a target from the possibility

of achievement (collecting intelligence, the attack itself and leaving the area) of

an attack by a threat agent, the main factors taken into consideration in evaluating

the accessibility including: active and passive early warning systems, road and rail

transport systems, the type of terrain and its use, population density, other natural

or synthetic obstacles and the weather conditions;

- recoverability (R) of a target assesses how long it will take to replace, repair or

rebuild the destruction or the damage to the target, it is variable depending on the

sources and the types of the involved components and the availability of the

required spare parts (reserves);

- a target is vulnerable (V) or easy to attack if the operational element has the

means and the expertise to successfully attack the target, taking into consideration

the fact that in determining the vulnerability of a target, the complexity of the

critical component must be compared with the capacity of the attacking element in

order to destroy or damage the respective target;

- the effect (E) in this context refers to the significant impact, wanted or not, that

could result once the selected target component is attacked. Traditionally, this

component has addressed the effect on the local population, but now broader

considerations are associated;

- a target has a high degree of recognition (R) if it can be observed (identified) by

an operational element and/or collection of intelligence without confusion (the

existence of characteristic features and the complexity of the target have

a decisive role) as compared to other targets.

9

Considering the elements described above, a possible representation that could form the

basis of a conceptual model for the subject under discussion is depicted in Figure 1. Of

course, in this demarche, we refer to the fact that the model is a simplification, only a

partial reflection of the real phenomenon or subject, certain unessential elements being

neglected, for the study of which it is intended, in order to provide an instrument more

accessible to the theoretical and (or) experimental investigation.

Figure 1: Conceptual model in investigating the level of protection of critical

infrastructures in the transport sector

Source: [2]

3. The application of the CARVER method

Like other instruments for risk assessment, it is evident that the CARVER method

involves a certain degree of subjectivity, which can manifest itself mainly through the

interpretation or estimation of a probability as a personal judgment. At the same time, it

is debatable the degree of trust about how likely it is that a certain event should happen,

based on the stage of specific knowledge at a certain time. Thus, in terms of

methodology, in the representation in Figure 1, were essentialized 6 dimensions of the

three presented categories of interest (types of transport, threats and CARVER

components). Like in the case of the Rubik's Cube, there is the possibility of the one

with each-other type of analyses (6 x 6 x 6), what we achieved next only for the rail

transport (1 x 6 x 6). Making a synthesis, were evaluated the respective dimensions

using the hierarchy CARVER type of matrix [3], maintaining the same components of

the rail transport seen as a system. Basically, the analysis was done for a railway node

taking into account its essential elements technically and operationally. The results are

outlined in Tables 1-6. Although there are many points of view when grading, in this

paper we used the point of view according to the American methodologies [4].

10

In Tables 1, 2 and 3 were calculated and ranked the scores obtained for cyber attacks

(CB) CBRN attack (NB) and bombing (BM).

Table 1

Total Rank

Objectives components "C" "A" "R" "V" "E" "R"

The main center for

traffic management10 9 5 9 9 10 52 1

Electricity system 8 9 3 2 6 9 37 2

Main infrastructure

(railways) 6 6 1 1 1 9 24 3

Spaces for travelers

(waiting halls) 2 4 2 1 1 9 19 6

Spaces for commercial

services for travelers2 5 2 1 2 9 21 5

Spaces for

transportation services

(transshipment

merchandise,

information)4 5 2 1 2 9 23 4

CARVER Matrix for Rail Transport (case of cybernetic attack)

Table 2

Total Rank


The main center for



Main infrastructure

(railways) 1 4 1 1 1 1 9 6


(waiting halls) 10 10 3 7 10 9 49 1



Spaces for


(transshipment

merchandise,

information)9 9 2 7 4 8 39 4

CARVER Matrix for Rail Transport (case of CBRN attack)

11

Table 3

Total Rank


The main center for



Main infrastructure

(railways) 9 4 8 1 7 1 30 6


(waiting halls) 10 10 9 7 10 9 55 1



Spaces for


(transshipment

merchandise,

information)9 9 9 7 8 8 50 4

CARVER Matrix for Rail Transport (case of bomb attack)

In Tables 4, 5 and 6 were calculated and ranked the scores obtained for flood (IN),

hurricane (UR) and earthquake (SE).

Table 4

Total Rank


The main center for



Main infrastructure

(railways) 9 9 9 10 8 1 46 5


(waiting halls) 7 8 8 8 8 10 49 3



Spaces for


(transshipment

merchandise,

information)8 7 8 8 9 10 50 2

CARVER Matrix for Rail Transport (case of flood)

Table 5

Total Rank


The main center for



Main infrastructure

(railways) 1 2 2 1 4 1 11 6


(waiting halls) 2 4 4 6 1 9 26 3



Spaces for


(transshipment

merchandise,

information)2 4 4 6 1 9 26 3

CARVER Matrix for Rail Transport (case of hurricane)

12

Table 6

Total Rank


The main center for



Main infrastructure

(railways) 10 9 10 10 10 9 58 1


(waiting halls) 9 10 9 9 10 8 55 2



Spaces for


(transshipment

merchandise,

information)8 10 9 9 8 8 52 5

CARVER Matrix for Rail Transport (case of earthquake)

4. Conclusions

Risk assessment of critical infrastructure in the transport sector is still quite difficult,

primarily because of the lack of statistical data leading to a high accuracy in estimating

probabilities or the subjective errors of the scalability assessment. This is the case of the

CARVER method in the sense stated above. One can notice that for the first three

evaluated threats, the applicability is pretty good, the results being confirmed by what

happens in practice (maximum risk associated to the operational center for traffic

management in case of the cyber attack, respectively associated to the crowded spaces

of a railway node, for bombing and CBRN). In relation to the initial area of applicability

of the method, in a way, the results were expected. At the same time, it was noticed the

difficulty of the application (Tables 4, 5, 6) when the threat is represented by extreme

natural events.

References

[1] PLĂMĂDEALĂ, GHE., Geografie economică mondială. Note de curs, Bălţi,

2009; http://tinread.usarb.md:8888/tinread/fulltext/plamadeala/geog_mond.pdf

[2] http://cuboscubik.com/MF8/todos-los-cubos

rubik?sort=p.model&order=ASC&limit=50&page=2

[3] http://images.brighthub.com/media/FC64B0_carver-matrix-template.xls

[4] ATTP 3-39.20 (FM 3-19.50), 5-20.

http://tinread.usarb.md:8888/tinread/fulltext/plamadeala/geog_mond.pdf

http://cuboscubik.com/MF8/todos-los-cubos%20%20rubik?sort=p.model&order=ASC&limit=50&page=2

http://cuboscubik.com/MF8/todos-los-cubos%20%20rubik?sort=p.model&order=ASC&limit=50&page=2

http://images.brighthub.com/media/FC64B0_carver-matrix-template.xls

13

NEW PACKAGING MATERIALS TECHNOLOGIES AND THEIR

IMPACT ON MILITARY VEHICLES AND MATERIALS LIFE

CYCLES

Tomáš BINAR, Jiří SUKÁČ, Radim UŠEL, Stanislav ROLC, Jan KŘESŤAN and Regina

MIKULÍKOVÁ

Abstract: The paper is concerned with new packaging materials technologies convenient for

military vehicles storage both under the climatic conditions of the Czech Republic, and

potentially, areas with increased relative humidity, high dustiness and fluctuating temperature

gradient during the day. The results of applied research into short-time storage of a military

vehicle, namely TATRA 815, are presented herein. Furthermore, the paper outlines possible

applied research directions taken by the Department of Logistics at the University of Defence,

concentrating on testing the parameters of packaging materials to be possibly used in the

transportation and storage of military vehicles and materials during foreign operations, having

direct effect on the materials life cycles.

Keywords: military vehicles, humidity, packaging material, short-time storage,

transportation, logistic support, Tatra 815

1. Introduction

In order to secure foreign peace/humanitarian missions, the Armed Forces of the Czech

Republic (ACR) have support vehicles available capable of transporting material at the

place of destination for the troops carrying out specific tasks. These vehicles must be

ever-ready for the logistic support of the troops deployed. The efficiency and quickness

of assigned tasks completion is directly related to efficient logistic support. Unless

employed in foreign peace missions, the vehicles are permanently exposed to weather

conditions when parked in the military vehicles park. Hence, individual groups,

subgroups and parts of the vehicles are exposed to differing temperatures and relative

humidity in various seasons of the year. These conditions result in atmospheric corrosion

in certain groups, subgroups and parts of vehicles, which may lead to changes in the

material characteristics; neither, the impact of UV radiation on parts containing rubber

materials may be ignored [1-3]. In consequence of the corrosion of certain military

vehicles parts and premature deterioration of rubber materials, unexpected faults may

eventually occur considerably increasing preventive maintenance-related expenditures.

Thus, financial means are inefficiently managed at a cost centre in the planning process

for individual budget subitems [4, 5].

2. Programs of short-time storage of military vehicles

For the short-time storage, a TATRA 815 military support vehicle, representing the most

widely used vehicle for material transportation in the ACR, was selected.

14

For such purpose, nanotechnology was made use of, which is based on corrosion

inhibitors picture 1 forming ionic bond on the material surface. In an enclosed

environment in a special film, protective gas atmosphere is created, which “condenses”

on all metal surfaces. The advantage of the technology used, which is based on VpCi

corrosion inhibitors, is the possibility of all-year open-air parking of vehicles, and

consequently eliminating expenditures related to storing in roofed buildings with

considerable overhead costs.

Picture 1 The principle of corrosion inhibitor technology

Source: [7]

2.1 A TATRA 815 short-time storage procedure Stage 1

Prior to the storing itself using the VpCi corrosion inhibitor nanotechnology, the

condition of groups, subgroups and main parts of the vehicle was checked (defectation)

aimed to document and evaluate the pre-storage technical condition of the vehicle. Picture

2 shows an example of the engine visual inspection.

Picture 2 TATRA 815 engine visual inspection

15

Stage 2

Parts of the vehicle were treated with special environment-friendly preservation agents

not requiring depreservation after removal from storage picture 3. All necessary electrical

wiring in the vehicle was also treated with a special agent containing the VpCi inhibitor.

Batteries were disconnected and removed from the vehicle. Additives containing

corrosion inhibitors were admixed to the fuel and oil filling of the engine in order to

protect the unprotected parts in the fuel and greasing system.

Picture 3 Preservation of a part of the engine and electrical wiring

Picture 4 shows the preservation of tyres and rubber parts (e.g. axle shaft rubber sleeve,

the windscreen sealing) using a special agent.

Picture 4 Preserving TATRA 815 rubber parts

Prior to storing, the vehicle was placed on a special mat. Temperature and relative

humidity shall be measured during storage using data loggers recording the temperature

and relative humidity values in the interval of 30 minutes’ picture 5.

16

Picture 5 Position of data loggers

Stage 3

For the purpose of storage, special covers were prepared in advance made of heat-shrink

film; upon welding by means of special pliers, enclosed atmosphere with corrosion

inhibitors is created picture 6. The final step was the film heat shrinking. Thus, a perfect

system protecting the vehicle from weather conditions and related corrosion and UV

radiation degradation effects was created.

Picture 6 The vehicle covered with heat-shrink film

The advantages of nanotechnology in military vehicles storing:

- efficient corrosion protection independent of the ambient conditions requiring no

depreservation;

- environment-friendly;

- considerable savings if compared to a traditional corrosion protection;

- short-term corrosion protection for max. 2 years;

- total application time in two persons max. 5 hours;

- total storage costs amounting to approx. CZK 14,000, including the material, and

made as a public contract, as against approx. CZK 35,000 expended using the

current method, including administrative costs (annual stored vehicles maintenance

and inspection schedule, a preserved vehicles overview, prospective vehicle storage

plan, overall maintenance schedule, maintenance plan, a planning table for stored

military vehicles and materials, stored vehicles recorder) and costs related to the

storage proper (storage preparation, storing, removal from storage). Nevertheless,

it must be noted that the price of CZK 35,000 does not include the storage material

and related logistic processes (material purchase, accounting, registration, storage

and environment-friendly disposal of preservation agents after depreservation).

17

3. The direction of development of packaging materials for materials transportation

and storage More and more often, war conflicts, requiring peace and humanitarian missions, affect

adversely not only local inhabitants but also the environment; since it is often the case of

coastal states, the conflicts impact the world’s ecosystem.

The logistics support group at the Department of Logistics deals with a new research

direction in the sphere of packaging materials usable for materials or vehicles transported

by air, sea, railway and road. During transportation, materials are exposed to a number of

outer factors (different temperature gradient, pressure, unexpected falls) having potential

negative effect on the quality of the material transported. One of the research directions

is the use of compostable packages in foreign peace and humanitarian missions.

Compostable package is [6]:

- made of natural biomaterials (e.g. cornflour or potato starch);

- it decomposes due to soil bacteria in damp and warm environment;

- its decomposition does not pose ecological burden; it decomposes into CO2, water

and biomass.

Picture 7 Life cycle scheme

Source: [6]

18

The research in the sphere in question shall be directed towards the determination of

parameters of packaging materials suitable for air, sea, railway, and road transportation.

The research shall also examine possible production of the packaging materials in the

areas (countries) affected by war conflicts or a natural disaster.

4. Conclusion

The Armed Forces of the Czech Republic dispose of hundreds of millions of CZK worth

of property that requires maintaining maximum use value with minimum operating costs

during its service life.

The goal of the new storing technologies application as against contemporary storing

methods in the ACR is to optimize expenditures, and reallocate saved financial means to

other budget sub items. The application of nanotechnologies in the storage process

minimizes overhead costs (e.g. for storage, energies,), and no financial means are

expended on the environment-friendly disposal of hazardous substances when preserving

and depreserving military vehicles and materials.

5. Acnowledgements

The work was supported by Ministry of Education, Youth and Sports of the Czech

Republic, project No. SV14-FEM-K104-04-BIN.

The work was supported by the Ministry of Defence of the Czech Republic, project

No.1201 4 3110.

References

[1] MILCORR. Asset Preservation System for the Military. Documents/Guides –

Restricted Area [online]. © 2013 [cit. 2013-04-08].

Availableat http://www.milcorr.com

[2] Vesuv 130 – výdaje na pořízení (Vesuv 130 – acquisitioncosts). Informační

systém logistiky ACR a MO [online]. © 2008-2011 [cit. 2013-04-02].

[3] Regulationofthe Ministry ofDefence no. 274/1999 Coll., Determining the Types

and Categories of Military Vehicles, the Approval of their Technical Competence,

Performance of Technical Checkups of Military Vehicles, and Tests of the

Technical Equipment in Military Vehicles, as of 15 November 1999.

[4] ESMAILI M., SHAHABI-NAVID M., SVENSSON J.-E., HALVARSSON M.,

NYBORG L., CAO Y., JOHANSSON L-G. Influence oftemperature on

theatmosphericcorrosionofthe Mg-AL alloy AM50. Corrosion Science, Volume

90, 1 January 2015, Pages 420-433.

[5] ROSTRON P., BELBARAK C. Atmosphericcorrosionissues in AbuDhabi.

Materials Performance, Volume 54, Issue 1, 1 January 2015, Pages 56-62.

[6] http://www.tart.cz/files/download/download/katalog-envira-e-mail.pdf

[7] http://www.tart.cz/files/download-katalogy/2013/katalog-cortec-cz-2013-2-

email.pdf

http://www.tart.cz/files/download/download/katalog-envira-e-mail.pdf

http://www.tart.cz/files/download-katalogy/2013/katalog-cortec-cz-2013-2-email.pdf

http://www.tart.cz/files/download-katalogy/2013/katalog-cortec-cz-2013-2-email.pdf

19

EVALUATION OF QUALITY OF DEFENCE INDUSTRY

ENTERPRISES AS AN ELEMENT OF LOGISTICAL

NETWORK

Marian BRZEZIŃSKI, Mariusz GONTARCZYK, Szymon MITKOW and Andrzej

ŚWIDERSKI

Abstract: The authors present in this paper the concept of interpretation of the quality of the

technical system and one of the possible methods of evaluating quality of logistical systems. This

evaluation has been carried out using numerical taxonomy method. The basic model of evaluation

has been shown in the form of the proposed sequence of conduct and the exemplary results of the

calculations in the form of a table have been presented.

Keywords: logistics, systems evaluation, taxonomy

1. Introduction

The problem of evaluating the quality of logistical systems and processes is a very

important issue. It is hard to imagine a rational management of logistical processes in the

Army and the national economy without its objective evaluations. The search for methods

to evaluate quality of logistical systems is a very important problem, both theoretical and

practical.

The aim of this paper is to analyse the qualitative characteristics of the logistical system

and to assess the quality of the logistical system of the defence industry company. In order

to solve a research problem the study incorporates was both theoretical and empirical

research methods: analysis of the research subject literature, comparison, analogy,

generalization, interview, synthesis and reasoning, as well as mathematical methods. To

evaluate the logistical system of the defence industry company, the numerical taxonomy

method was used.

2. Nature of the quality of logistical systems

Quality is a concept comprehended in the following categories: philosophical,

psychological, sociological, technical, economic and marketing. In a general sense, it

means the characteristics, sort, value of the given object (phenomenon), or an attribute or

set of attributes relevant in terms of its structure, internal interaction and relationships

with the environment. A meaningful definition is given in [1]: "Quality of service is the

ability of the supplier to produce an activity, at the beginning intangible and requiring

client’s participation, in accordance with his expectations, at least at the level required by

him". This definition shows that the customer can decide whether and to what extent the

service corresponds to his expectations and meets his needs. It is him who defines

demands (requirements, expectations), confirming the quality of the logistical system.

20

Quality is a set of characteristics which determine the assessment of a particular product1.

Quality is the degree of compliance with the requirements or approach perfection 2.

Quality is the set of attributes making the object which it is, and not any other 3. From an

economic point of view, the quality of products (...) is the intensity of the economic

characteristics (...) determining the ability of the given goods to satisfy the needs of users

4.

Currently, there are three areas identifying quality:

- technical - based on meeting the technical parameters of the individual elements of

the system,

- economic - based on economic criteria,

- comprehensive - based on considering not only technical and economic factors but

also technological, operational, ergonomic ones, etc.

The quality of logistical systems can be evaluated according to their hallmarks.

Classification of these features may therefore be done with regard to:

- object of evaluation,

- subject of evaluation,

- aspect of evaluation,

- scope of evaluation,

- way of expressing the evaluation result.

As far as the object of evaluation (the one who formulates the problem) is concerned, one

can distinguish, among the others, following features characterising the system:

- features formulated by customers,

- features formulated by competition,

- features formulated by suppliers of goods and services,

- official characteristics (e.g. of the legislation),

- features formulated by the state administration and local governments.

As far as the subject of the assessment (what is being evaluated) is concerned, one can

distinguish, among the others, following characterising features:

- characteristics used to evaluate the quality of the individual components of the

system,

- characteristics used to evaluate the whole of a system.

As for the aspect of the evaluation being considered one can distinguish, among the

others, the following characteristic features: technical characteristics, deficiency features,

time -accuracy characteristics and quality costs characteristics.

Regarding the scope of the assessment there can be following features distinguished:

- comprehensive features (additive) - expressing as a whole the particular aspect of

assessment, e.g. overall costs of quality, punctuality criteria,

- partial characteristics (single- subject), which are used to evaluate the system

components.

In order to give an assessment of the quality of a product, service or process of their

implementation, it is necessary first to establish a set of attributes (criteria), according to

which the assessment is issued. Taking into account the ability to make measurements

and the method of expressing the result of the evaluation, the features can be divided

into5:

1 Dunaj B.(red.), Popularny Słownik Języka Polskiego, Wyd. Wilga, Warsaw 1999, p.196. 2 Kolman R., Ilościowe określanie jakości, PWE, Warsaw 1973, p. 22, 37. 3 Mały Słownik Języka Polskiego, PWN, Warsaw 1968, p.3. 4 There in, p.3. 5 Hamrol A., Zarządzanie jakością z przykładami, PWN, Warsaw 2008, p.28.

21

- measurable - can be measured and expressed in an appropriate unit of

measurement;

- not-measurable - can be described only in words, in the scale:

- two-stage (two-state) - there are only two states of the attribute,

- multi-stage (multi-state) - there are more than two states.

The measurable features are also called quantities and not-measurable qualities,

attributes 6.

In assessing the quality of logistical systems one needs to bear in mind that the

characteristic features do not need to be fixed and may vary. The variability can be

inspired by:

- change of the customer’s requirements,

- changes on the market and the competitors,

- changes in the legislation,

- technological and scientific progress, etc.

Proper selection of the characteristic features of logistical systems is an essential element

of quality assessment (Figure 1). The most common irregularities in assessing the quality

of logistical systems include, among the others, the following:

- improper selection of characteristic features, as a result, what is being assessed is

not the problem formulated to be tackled,

- lack of parameterization of the evaluation, which prevents its objectification.

During the quality assessment by the customer, one can assume the following objectives:

- client evaluates functioning of the logistical system from a personal point of view,

- client perceives all elements of the system as a whole,

- weaknesses of the system functioning adversely affect its assessment,

- to the customers, the internal organization of the system is of no importance.

Fig.1. Action in the process of assessing the quality of the system

Source: Hamrol A., Zarządzanie jakością z przykładami, PWN, Warsaw 2008, p.28.

3. Taxonomy method for evaluation of quality of logistical systems

The numerical taxonomy method of is designed to compare the systems characterized by

an identical or similar functional purpose. The systems are being compared using the

same characteristics that can be described quantitatively [2, 3, 4].

This method, as the criterion of comparison of the systems, adopts the state of quality,

which is a function of the essential features of the compared systems. The components of

the quality status determine appropriate relationships of domination.

The absoluteness of the comprehensive evaluation indicator measurement should be

interpreted as a deviation of the systems’ state of quality from the beginning of a

numerical scale. In contrast, the relativity of measure indicates the degree of deviation

6 There in, p.29.

22

from the object quality indicator regarded as a model system. The quality indicator of the

model system is a certain number indicating the optimum (extreme) - desired value of the

characteristics. Hence, determination of a comprehensive indicator takes place by

aggregating characteristics using model or non-model method. The model method

involves analytical interdependencies determining the distance of the tested system from

the reference system. In turn the non-model method the aggregation of characteristics

involves averaging normalized values of characteristics describing a given system. The

algorithm of proceeding in the numerical taxonomy method is shown in Figure 2.

Identification of the system constraints is to determine the boundaries of the values of the

attributes characterising the system in which it will operate. They will be qualitative

constraints, quantitative, spatial, temporal, information, economic ones and others. There

are internal and external constraints. The internal constraints are a function of the

potential of the logistical system. In contrast, external constraints, independent of the

system tested, the result from the dynamics of environmental change.

As a result of the analysis of requirements and system constraints there will be a sub-set

of admissible variants created, in which there will be variants possible to be applied and

a sub-set of variants impossible to apply.

Figure 2. Algorithm of proceeding using numerical taxonomy method for testing the systems.

Source: Brzeziński M., Systemy logistyczne, WAT, Warsaw 2007, p. 121.

In the next step, it is necessary to specify the set of all characteristics of the systems

studied, and then select a sub-set of features relevant to evaluated systems, which

represent evaluation criteria. Each system compared can be described by any number of

features. The choice of features has the greatest impact on the outcome of a comparative

assessment, and thus on the accuracy of the decisions made.

23

The essential features characterizing the systems can be measured directly or indirectly.

The measured values are real figures with denomination, i.e. measurable in the physical

sense. The indirectly measurable trait is a one of the values contained in the set of integers.

The verbal description is, in this case, the output form of expression of the value of a

feature, then assigning to it the numerical attributes. The set of essential features should

only contain only ones that are of sufficient variation of the value while transiting from

variant to variant. Thus, the condition of sufficient variability is another formal postulate

of the selection of relevant features.

The essential parameters are characterized by varying direction of affecting the

comprehensive system quality indicator. This impact can be positive, negative or neutral.

From this point of view the characteristics can be divided into stimulants, destimulants

and nominants. As a stimulant we will call such diagnostic variable, whose increase must

be associated with an increase, and a decrease with a decrease in the assessment of the

phenomenon. In contrast, the destimulant will be such a diagnostic variable whose

increase should be associated with the decline, while the decline with the increase in the

assessment of a complex phenomenon. The nominant, in turn, is such a variable that has

a specified, the most advantageous (from the point of view of assessing a complex

phenomenon) value called the nominal value. Nominant takes on values lesser or greater

than the nominal value, respectively, with a decrease in the assessment of a complex

phenomenon. Encountered in practice are the situations where the nominal values form

specified numerical interval. Any deviations of the nominants from the normal level are

negative phenomenon from the perspective of the efficiency indicator examined. The

nominants can be easily converted into destimulants by setting the absolute deviation of

a given value from the level considered to be the nominal one.

Establishing a set of characteristics relevant to the systems being compared, as well as

their classification is the basis for implementing later stages of the method.

In order to establish a uniform denominationless grading scale of the systems features one

conducts their normalization. It is based on converting absolute values of the

characteristics into relative values. The normalization is carried out according to the

equation:

𝐶 𝑖𝑛 =𝐶𝑖𝑛 −𝐶𝑖

𝑆𝑖 𝑓𝑜𝑟 𝑖 = 1,2, … , 𝐼 𝑎𝑛𝑑 𝑛 = 1,2, … , 𝑁 (1)

Where: 𝐶 𝑖𝑛 – normalized value of the feature, Cin – the value of the i-th features of the

process of the number n, Ci – average value of the i-th characteristics of the calculated

from the equation:

𝐶𝑖 =1

𝑁 𝐶𝑖𝑛

𝑁𝑛=1 (2)

The standard deviation Si of the i-th characteristics is calculated from the equation:

𝑆𝑖 = 1

𝑁 (𝐶𝑖𝑛 − 𝐶𝑖)

2𝑁𝑛=1 (3)

where: l- number of features by which we evaluate the system; N- number of system

Then it is necessary to make a choice of, so called model (reference) system, i.e. an

abstract system established by the collection of the best values of the characteristics - Coi

from the set of all the features of the systems.

𝐶𝑜𝑖 = min

𝑛𝐶 𝑖𝑛 𝑤ℎ𝑒𝑛 𝐶𝑖𝑛 𝑖𝑠 𝑑𝑒𝑠𝑡𝑖𝑚𝑢𝑙𝑎𝑛𝑡

max𝑛

𝐶 𝑖𝑛 𝑤ℎ𝑒𝑛 𝐶𝑖𝑛 𝑖𝑠 𝑠𝑡𝑖𝑚𝑢𝑙𝑎𝑛𝑡 (4)

24

After determining the reference system it is necessary to calculate dispersion between of

the standardised values of features and model characteristics according to the equation:

𝛿𝑖𝑛 = 𝐶𝑜𝑖 − 𝐶 𝑖𝑛 2

𝑓𝑜𝑟 𝑖 = 1,2, … , 𝐼 𝑎𝑛𝑑 𝑛 = 1,2, … , 𝑁 (5)

Determining a comprehensive efficiency indicator based on the specified features of the

system requires establishing relative weights of the individual characteristics.

Determining relatively objective weights is important for the final result. Determining the

weight values can be determined using the preferences of experts or statistically.

Taking into account the weighting factors, one can calculate the "distance" between the

characteristics don of the system under consideration and a model solution from the

equation:

𝑑𝑜𝑛 = 𝛼𝑖𝐼𝑖 ∙ 𝛿𝑛𝑖 (6)

where i – weight coefficients for the characteristics of i number.

Aggregation of the system characteristics is an operation allowing to obtain a

comprehensive assessment segregating systems compared. Aggregation can be made by

the model method or non-model method. The model method uses analytical

interdependencies to aggregate attributes determining the distance of the tested system

from, so-called, model system. The model system may be an ideal system, or so called

anti-model, which is potentially the worst system. However, in the non-model method the

operation of aggregating characteristics of the system is based on averaging the

normalized values of characteristics describing the given system. Aggregation of the

parameters can be done from the analytical inter-dependences determining averages:

arithmetic, geometric and harmonic mean.

In order to establish a uniform, denominationless scale of assessments, the

standardization of them is carried out. The calculations made using one of the methods -

the model or non-model one, of the comprehensive systems evaluation indicators - are

subject to the normalization to the interval [0,1]. For this purpose, the average value and

the variance, needs to be determined in a set of distances, from the equation:

𝑑𝑜 =

1

𝑁 𝑑𝑜𝑛

𝑁𝑛=1 (7)

𝐷𝑜

2 =1

𝑁 (𝑑𝑜𝑛 − 𝑑𝑜

)2𝑁𝑛=1 (8)

Then the limit value is determined in the form:

𝑑𝑜∗ = 𝑑𝑜

+ 3 𝐷𝑜2 (9)

The comprehensive system evaluation is determined from the equation:

𝜒 = 1 −𝑑𝑜𝑛

𝑑𝑜∗ (10)

As mentioned earlier, comprehensive system evaluation indicators are numbers from the

interval [0,1].

The numerical taxonomy method may be used e.g. for comparison of logistical systems,

selection of logistical concept according to the criteria adopted by the evaluator. It allows

a quantitative assessment of systems based on an identical set of measurable and

immeasurable qualities. The greater the number from the interval [0,1], the higher the

quality of the logistical system.

Numerical taxonomy method was used to assess the quality of four logistical systems,

which are characterized by fourteen following attributes:

1 - indicator of ensuring the needs of the operating system by the logistical system [%];

25

2 - duration of the implementation of the logistical system for the enterprise’s needs [h];

3 - deviation from the date of supply [h];

4 - the number of customer complaints about the functioning of the logistical system [1

/ year];

5 - indicator of the transport means technical readiness [%];

6 - indicator of the transport means utilization time [%];

7 - indicator of the transport means mileage utilization [%];

8 - indicator of damage to the goods in transit [%];

9 - warehouse space utilization indicator [%];

10 - indicator of damage to the goods during storage and loading work [%];

11 - coefficient of the internal transport means utilization [%];

12 - management span in the logistical system [Quantity];

13 - logistical staff turnover [%];

14 - logistical costs in relation to sales results [%].

The values of the parameters of characteristics and the results of logistical systems

evaluation are shown in Table 1. The analysis conducted shows that the highest

comprehensive evaluation index received system 4. (ᵡ4 = 0,357), slightly lower, system 1.

(ᵡ1 = 0,348). The evaluation used parameters that have been quantified so that the

assessment outcome was objective, to the highest degree, and independent of the

evaluator. In contrast, the evaluator could influence the selection of features of the

evaluated systems and the weight coefficients (weights adopted were i = 1). However,

the algorithm of proceeding in the numerical taxonomy method allows a little subjectivity

of proceeding.

4. Conclusion

The issues raised in the article on the evaluation of the quality of logistical systems are

not exhaustive of all relevant, mainly from the perspective of clients, issues in this area.

Other methods and issues require separate consideration:

improving the quality of logistical systems and the use of appropriate methods and

tools in the area of quality Qualitology, described in the literature [5],

mathematical modelling of quality assessment, enabling its parametric evaluation,

the use of taxonomy method in the integrated logistics design process in the context

of the weapons systems lifecycle management,

including in the evaluation of hardware the preferences for requirements of the

decision makers and the logistical systems end users.

Table 1. Logistical system quality evaluation

1 2 3 4 5 6 7 8 9 10 11 12 13 14

1 98 12 3 10 95 80 50 3 75 3 62 20 10 25

2 95 13 0 15 93 71 46 1 53 4 70 18 8 15

3 96 11 1 8 97 68 48 2 60 5 90 8 12 20

4 94 10 0,5 6 98 75 52 1 78 2 85 10 10 35

Average value Ci 95,750 11,500 1,125 9,750 95,750 73,500 49,000 1,750 66,500 3,500 76,750 14,000 10,000 23,750

Standard deviation Si 1,281 0,854 1,252 3,010 1,675 5,105 1,708 0,826 9,375 0,854 11,856 5,292 1,414 4,492

Standardized feature Si*

1,757 -0,586

0,195

-1,366

0,586 1,757

-0,586

-1,757

1,498 -0,899

-0,100

-0,499

0,083 1,744

-0,581

-1,246

-0,448 -1,641

0,746

1,343

1,273 -0,490

-1,077

0,294

0,586 -1,757

-0,586

1,757

1,513 -0,908

0,303

-0,908

0,907 -1,440

-0,693

1,227

-0,586 0,586

1,757

-1,757

-1,244 -0,569

1,118

0,696

1,134 0,756

-1,134

-0,756

0,000 -1,414

1,414

0,000

0,278 -1,948

-0,835

2,504

Model set-feature Coi 1,757 -1,757 -0,899 -1,246 1,343 1,273 1,757 -0,908 1,227 -1,757 1,18 1,134 -1,414 -1,948

Dispersions dni

0,000

5,486

2,438 9,752

5,486

12,343

1,371 0,000

5,746

0,000

0,638 0,160

1,767

8,943

0,442 0,000

3,206

8,905

0,356 0,000

0,000

3,108

5,525 0,959

1,371

12,343

5,486 0,000

5,863

0,000

1,466 0,000

0,102

7,111

3,686 0,000

1,371

5,486

12,343 0,000

5,578

2,846

0,000 0,178

0,000

0,143

5,143 3,571

2,000

0,000

8,000 2,000

4,955

0,000

1,239 19,819

Weights i 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Distance don

do1

do2

do3

do4

6,119

8,168

6,938

6,037

Average value do

6,815

Variance Do2 0,734

Limit value do* 9,385

System evaluation ᵡn

ᵡ1

ᵡ2

ᵡ3

ᵡ4

0,348

0,130

0,261

0,357

Features Xi

Systems Sj

27

It must be stated unequivocally that the continuous monitoring of the quality

characteristics of logistical systems listed in the article, is crucial in providing services at

the level required by customers.

References

[1] BRUHN M.: Qualitätsmanagement für Dienstleistungen, Springer, Berlin 2003,

s.31.

[2] BRZEZIŃSKI M, FIGURSKI J., KOCHAŃSKI T., Jakość systemu

logistycznego, „Logistyka” 2012 nr 4, płyta CD, s. 133-140.

[3] Brzeziński M., Rozwój sieci logistycznych w wojsku, „Biuletyn WAT” 2010, nr 1,

s. 377-388.

[4] BRZEZIŃSKI M., Systemy logistyczne, WAT, Warszawa 2007.

[5] DUNAJ B.(red.), Popularny Słownik Języka Polskiego, Wyd. Wilga, Warszawa

1999, s.196.

[6] KOWALSKA – NAPORA E., TKACZYK ST., Strategia zarządzania jakością,

Wydawnictwo Difin, Warszawa 2012.

[7] KOLMAN R., Ilościowe określanie jakości, PWE, Warszawa 1973, s.22, 37.

[8] KOLMAN R., Kwalitologia, wiedza o różnych dziedzinach jakości,

Wydawnictwo Placet, Warszawa 2009.

28

MOTIVATION OF STUDENTS

Harald GELL

Abstract: Within this essay the author combines the theoretical elaborations concerning

motivation of students with results from questionnaires conducted with Officers Cadets

at the Austrian Theresan Military Academy. Mainly intrinsic and extrinsic motivation

factors can be identified. Apart from these motivation factors, not only for military

education institutions but also for all other institutions which are teaching students, the

leadership skills and competences apart from special knowledge of Lecturers seem to be

important to motivate them. In the conclusions the author gives some proposals which

steps must be done to motivate students and consequently to increase their performance.

Keywords: intrinsic motivation, extrinsic motivation, leadership, officers’ skills and

competences

1. Introduction

“People often say that motivation doesn’t last. Well, neither does bathing – that's why we

recommend it daily” (Ziglar, n. d.). The topic “motivation of students” should be taken

seriously by all those persons who are being responsible for education – independently

which echelon and which field of responsibility they have – according to the citation

above – on a daily basis.

This short essay leads from some principal motivation theories via the description of

methodology to the results of research which are based on past and actual questionnaires

conducted with Officer Cadets of the Austrian Theresan Military Academy in April 2015

– to achieve up-dated results for the XXXIII International Colloquium in Brno. The essay

should answer – based on a comparison of available literature with questionnaires

conducted with students of the Theresan Military Academy – the following two questions:

Which are the expected skills and competences of Officers teaching at the Theresan

Military Academy from students’ point of view to increase their motivation?

Which are the students’ motivating factors before and during the Basic Officer

Education?

The author would like to express his gratitude to the Faculty of Military Leadership at the

University of Defence in Brno – especially to the Dean, Col Assoc. prof. Ing. Vladan

Holcner, Ph.D. – for the possibility to participate an event with such an important aspect.

2. Theoretical Part

Taking a closer look at the literature, in principle the subject of motivation can be divided

into two parts. Intrinsic motivation is the self-desire to seek out new things and new

challenges, to analyse one's capacity, to observe and to gain knowledge (Ryan & Deci,

2000). Extrinsic motivation comes from influences outside of the individual. This could

be a motivation to earn more money or the fear of punishment in a case that the

expectations are not fulfilled (Dewani, 2013).

29

Author’s comment: Inside military forces – consequently also inside their education

institutions – it seems that e.g. because of their well elaborated punishment systems the

extrinsic motivation is the more important one because the rules are available in a written

form, therefore can be distributed easily and – as a general rule – have not to be adopted

to individuals because of the general validity of regulations. From the author’s point of

view this can be seen contradictory because motivation of students implies behaviours

concerning reaching learning outcomes during study periods and not only behaviours

concerning military training where extrinsic motivation may have a place under certain

circumstances. We also have to take into consideration that students inside military

education institutions concerning their learning circumstances do not differ that much

from other – civilian – education institutions.

Hereinafter some relevant theories are presented and – as a consequence – those parts are

commented and taken out which are worth to be compared on a later stage with the

questionnaires conducted with Austrian students.

Taking into consideration Maslow’s hierarchy of needs (Maslow, 1943, revised 1970)

of human beings – it seems to be clear that the intrinsic motivation is the only one which

creates the basis for long-lasting and therefore more effective motivation – meaning

motivation of students to achieve proper learning outcomes. The figure hereinafter shows

Maslow’s hierarchy created in 1943.

Figure 1: Maslow’s hierarchy of needs.

Author’s comment: Whereas responsible persons for students’ education for the first three

steps of Maslow’s hierarchy of needs may create an ideal organisational frame, for the

last two steps the intrinsic motivation has an extreme importance.

McClelland developed the theory of needs – with connection to Maslow’s hierarchy of

needs. In his approach not only social and development factors play a role but also more

the achievement motive and the desire to avoid failure (McClelland, 1961). According to

him we all have – regardless of gender, culture or age – three motivating drivers, out of

them one is the dominated one which is dependent on culture and life experience. The

three motivating drivers and the characteristics of the person as explanation of the

motivating drivers are listed within the following table:

30

Table 1: McClelland’s three motivators and persons’ characteristics – table is arranged by the

author.

Motivator Person’s characteristics

Achievement

Has a strong need to set and accomplish challenging goals.

Takes calculated risks to accomplish their goals.

Likes to receive regular feedback on their progress and achievements.

Often likes to work alone.

Affiliation

Wants to belong to the group.

Wants to be liked, and will often go along with whatever the rest of the

group wants to do.

Favours collaboration over competition.

Doesn't like high risk or uncertainty.

Power personal

Wants to control and influence others.

Likes to win arguments.

Enjoys competition and winning.

Enjoys status and recognition.

institutional Organize the efforts of a team.

Author’s comment: McClelland’s motivators refer mainly to intrinsic motivation factors.

He assumes that human beings have different motives and – consequently – different

motivating factors.

In 1959 – with some connection to Maslow’s hierarchy of needs – Frederick Herzberg

published the so-called dual-factor theory or with another name motivation-hygiene

theory (Herzberg, 1959). Herzberg differs between two influencing factors, on the one

hand factors concerning the content of the work – called motivators and comparable with

intrinsic motivation – on the other hand factors referring to the context of the work –

called hygiene factors and comparable with extrinsic motivation. According to Herzberg,

satisfaction and dissatisfaction must be seen independently or in other words, the lack

dissatisfaction does not necessarily cause satisfaction. Only if both, motivators and

hygiene factors cause satisfaction, the motivation can be seen entirely satisfactory. The

combination of these motivators and hygiene factors cause four possible situations

according to the following table: Table 2: Herzberg’s motivation combinations – table is arranged by the author.

Hygiene factors:

Salary.

Human resource policy and leadership

style.

Labour conditions.

Interpersonal relations.

Security of employment.

Influence onto the private life.

Low

hygiene

High

hygiene

Motivators:

Achievements and

success.

Appreciation.

Content of the work.

Responsibility.

Promotion and growth.

Low

motivators

Unmotivated,

major complaints.

Low motivated,

minor complaints.

High

motivators

Highly motivated,

major complaints.

Highly motivated,

minor complaints.

31

Author’s comment: Herzberg’s theory aroused criticism because of his method and

moreover, other empirical researches led to results that also motivators or hygiene factors

alone may cause satisfaction or dissatisfaction – not necessarily a combination of both is

needed (Semmer & Udris, 2007 and Buettner, 2013). In spite of this criticism all results

showed a certain importance of the listed factors and motivators; some of them – intrinsic

motivators and extrinsic hygiene factors – will appear again when a comparison with

students’ questionnaires will be made.

According to Vroom’s expectancy theory individuals’ performance is considered as

desirable if the wished goal can be achieved. The motivation for the effort is the relative

benefit (Vroom, 1964). Concerning the effect onto motivation, Vroom takes three factors

into consideration: expectancy, instrumentality and valence. Expectancy is the

probability of occurrence of a certain result – conceived subjectively and measured on a

scale from 0 to 1. Instrumentality is the relationship between an action’s outcome and

the resulting action’s consequence. It may lead to advantageous or disadvantageous

impacts. Valence is the degree of a certain condition for an individual and how much this

condition is desirable or important. As a basis for a motivational decision the three factors

are calculated according to a formula taking into consideration the interaction between

expectations and value of the acting outcome.

Author’s comment: According to Vroom’s theory individuals would achieve a good

performance if a high probability of achieving the goal can be considered – this means

that an individual’s work performance is extrinsically motivated.

Nilson describes some credible theories of motivation (Nilson, 2010). He writes that if

talking about motivation of students within this context – actually we all mean

stimulating of students’ interest in the subject matter. Nilson’s theories are simplified

by the author in a table hereinafter:

Table 3: Nilson’s positive and negative theories of motivation – simplified by the author.

Theory Positive motivation Negative motivation

Behaviourism Students are rewarded for their

behaviour.

Students are punished for their

behaviour.

Goal

orientation

Students are allowed to take risks and

make mistakes without any

disadvantages, therefore they can

improve.

Students work just for good

grades, they are afraid of

mistakes and this creates

insecurity.

Relative value

of the goal

Integrate students into the learning

process; give them responsibility – even

to the course content – and increase

social learning.

Make the content more

stimulating, interesting and

emotionally engaging – from the

Lecturer’s point of view.

Expectancy of

goal

achievement

Give students tools – e.g. learn how to

learn – to achieve their goals. Do not

overwhelm them. Give students the

feeling that Lecturers like them.

Lectures which are just

requesting reproduction of

knowledge without critical

thinking.

Author’s comment: According to Nilson we should concentrate our efforts just onto

positive motivation to achieve the goal – meaning the intrinsic motivation. The question

is, if within our study systems this is the only option because students are to be evaluated

to determine if they reach a certain level, therefore the extrinsic motivation must have a

certain place as well – even if in Nilson’s theory this can be considered as just negative

motivation.

Especially the positive motivation of the last theory – “give students the feeling that

Lecturers like them” – forges a bridge to one of the most numerous researches which has

ever been done within this perspective.

32

John Hattie, a professor of the University of Melbourne, issued the study “Visible

Learning” – he based his results concerning the question “what is a good lecture?” on

researches with 250 million students and pupils (Hattie, 2008). He comes to the

conclusion that the Lecturer has the vital impact onto students’ performance – all the other

circumstances he sees not that important. The following table describes Hattie’s results

concerning increasing fruitful frames for and motivation of students: Table 4: Hattie’s results listed according to priorities.

What really helps

Feedback of the Lecturer.

Problem-solving Lessons.

Advanced specialised

education for Lecturers.

Programmes to stimulate

reading.

Trust between Lecturer and

student.

What helps

Regular performance review.

Pre-study assistance

measures.

Lecturer-managed lessons.

Additional offers for

outstanding Students.

What helps a little

bit

Small groups.

Expensive equipment of the

classroom.

Discovering learning.

Homework.

What does not

help but does not

harm either

Open lessons.

Inter-year lessons.

Web-based teaching and

learning.

What harms

Repetition of years.

Excessive watching

television.

Long breaks (summer

holidays).

Author’s comment: Because of Hattie’s priorities, in the military education context this

means that leadership skills and competences of Lecturers must be the priority number

one when talking about motivation of students. That is why the author concentrates the

results of the first questionnaire onto this topic – it will be presented in the chapter “results

of research”.

Taking the above mentioned theories into consideration, of course we have to think about

different circumstances at different education institutions and different cultures

(Dambeck, 2013) and we have to find the golden mean, but in all cases – when it comes

to motivation of students – the Lecturer and his/her leadership performance seems to be

one of the central points. That is why we have to concentrate our means onto the education

of the educators – the increasing motivation of students should be the logical result then.

3. Methodology

According to Nilson, the literature does not come to a clear conclusion concerning the

relationship between intrinsic motivation, extrinsic motivation and students’ performance

(Nilson, 2010). The author elaborated results from questionnaires conducted with

students of the Theresan Military Academy for this essay to find out how from the

students’ point of view these motivation factors are seen and – on a later stage – how

these answers fit to the theories described above. It is worth to mention that all education

goals of the Austrian Basic Officer Education are connected to Heyse’s and Erpenbeck’s

model of competences (Heyse & Erpenbeck, 2004). According to this model, all lectures,

classes and modules must aim at increasing the four basic competences, which are the

personal competence, the special knowledge, the activity & acting competence and the

social & communicative competence. If there is a lack of one of the competences at the

end of education, an Officer Cadet cannot graduate. As a consequence this theory also

aims at Lecturers; having a certain level of all these competences is the best pre-condition

to act as a Lecturer who has the ability to motivate students.

33

3.1 Skills and competences of Officers teaching at the institution

The author asked five classes of the Master and Bachelor Programme Military Leadership

at the Theresan Military Academy which of the leadership skills and competences of

Officers teaching at the institution are important. The Officer Cadets had total freedom

for their written answers; the only task was to list them according to priorities and to

describe in short words the respective skill and competence to avoid misunderstandings

of terminology. By purpose the Officer Cadets were not framed with their answers to

Heyse’s and Erpenbeck’s model of competences because the author saw possibilities for

“thinking out of the box”. Out of 1,308 answers given by 327 Officer Cadets the author

gave them points according to the Officer Cadets’ priorities, calculated the percentage in

comparison with all answers and listed them on a scale from zero to 100 (Gell, 2011).

3.2 Intrinsic and extrinsic motivation factors

Just some weeks before the start of the 2015-colloquium in Brno, the author asked

representatives from three classes of the Bachelor Programme Military Leadership at the

Theresan Military Academy which factors motivate them and which factors demotivates

them. The questionnaire was to be answered by one branch- representative from each

class – in total by 21 Officer Cadets. Again, they had a total freedom for their written

answers; in some cases the author asked them verbally more deeply on a later stage to be

sure what they exactly meant. The answers were to be given concerning the motivation

before the study – meaning what motivated them to start the education to become an

Officer – and during the education – meaning which factors motivate them to increase

their performance. Afterwards, the answers were clustered into intrinsic and extrinsic

motivation factors.

4. Results of Research

4.1 Skills and competences of Officers teaching at the institution

In chapter 2 of this essay the author describes the importance of leadership skills and

competences of Lecturers (Hattie, 2008). Out of all the answers given by the 327 Officer

Cadets just 36 skills and competences could be clustered which are listed in the following

table according to priorities. Table 5: Answers of Officer Cadets concerning importance of skills and competences of Officers

teaching at the institution.

01 Special knowledge and

ability 13 Inspiring confidence 25 Authority

02 Expert in knowing people 14 Fairness 26 Life experience

03 Power to convince 15 Responsible-minded 27 Reliability

04 Resilient and calm 16 Motivator 28 Intelligence

05 Decision-making ability 17 Directness 29 Self-criticism

06 Role-model 18 Loyalty 30 Humour

07 Charism 19 Comradeship 31 Command language

08 Analytical thinking 20 Discipline 32 Creativity

09 Honesty 21 Sportsmanship 33 Self-reliance

10 Purposefulness 22 Behaviour 34 Ability to teach

11 Self-assurance 23 Courage 35 Moral & ethics

12 Flexibility 24 Capacity for teamwork 36 Punctuality

If now the importance of given answers is listed on a scale, we can see that for Officer

Cadets – being students of a higher education programme at the same time – the first

eleven skills and competences have a more important significance. Because of better

overview just these eleven skills and competences are shown in the following figure 2:

34

Figure 2: Importance of skills and competences from Officer Cadets’ point of view.

Discussion: We can see that for Officer Cadets a good Lecturer should have a variety of

skills and competences. According to Heyse’s and Erpenbeck’s model of competences,

special knowledge – meaning that from the Lecturer it is expected that he/she is an expert

– is important but it is not the only ability, other skills and competences – especially those

ones which military personnel subordinate under the term leadership – are important as

well. Taking the motivation theories into consideration which are described in the

theoretical part the following connections can be made:

- Students expect from Lecturers according to McClelland’s motivators mainly

personal and institutional power.

- Herzberg’s motivators apply a bit concerning appreciation and responsibility.

- Nilson’s theories and Hattie’s results obviously apply mostly because their theories

focus more on how to motivate others – in the sense of extrinsic motivation – than

on the other theories which m focus onto self-motivation.

- A lot of answers can be integrated into Heyse’s and Erpenbeck’s model of

competences and their detail-characteristics.

The added value of this questionnaire’s results is that Officer Cadets expect from

Lecturers specific skills and competences to be motivated – this refers more to the

extrinsic motivation. When selecting Lecturers the results may be taken into consideration

on the one hand – on the other hand a specific Lecturers’ education may focus onto

increasing skills and competences listed in table 5.

4.2 Intrinsic motivation factors

It is described in chapter 3.2 how the following answers were achieved. The first part of

the answers refers to those motivation factors which motivated the students to start the

education to become an Officer. Logically, all of these factors are intrinsic ones, since it

is difficult to imagine that aspirants are punished if they do not start the education.

The author could neither identify certain priorities out of the answers nor in a personal

talk to the students any of them were determined as vital ones; therefore, the answers of

the following table can be considered as of equal importance:

35

Table 6: Answers of Officer Cadets concerning motivation factors to start the education.

Accept a challenge. Possibilities to go abroad.

Climbing up a hierarchy. Varying education.

Convey interest in military matters. Thirst for adventure.

Interest to take over responsibility. Reputation of the Officer’s profession in

society.

Knowing what a Student can expect. Possibility to know more than the average

population. Occupational safety.

The question “what motivates students during their education” resulted just in a few

intrinsic answers. They are listed in the following table – again – because of the students’

answers the factors can be considered as of equal importance:

Table 7: Answers of Officer Cadets concerning motivation factors during their education.

Appreciation of performance. Ranking list among the students.

Comradeship. Taking over of responsibility.

Imitation of a role-model. Variety of the education.

4.3 Extrinsic motivation factors

All of the extrinsic motivation factors which the Officer Cadets mentioned can be

summarized as negative motivation (Nilson, 2010). Therefore, one of the fasted avenues

of approach to motivate students could be to eliminate those negative factors (Semmer &

Udris, 2007 and Buettner, 2013). The extrinsic motivation factors are listed in the

following table and can be considered as of equal importance:

Table 8: Answers of Officer Cadets concerning extrinsic motivation factors.

Additional tasks not coordinated with the study

programme. Lack of responsibility.

Just a means to an end of Officer education. Mental underload.

Discussion: In times of decreasing interest for the military Officer’s profession it is

important to know which intrinsic motivation factors attract possible future students.

Even if the Basic Officer Institutions fulfil the students’ expectations during the study

period it may be considered if the advertisement methods are aiming at the right priorities.

According to McClelland’s three motivators it can be stated that the expectations during

the study period can be fulfilled; also Herzberg’s motivators fit to the students’ answers.

Nilson’s positive and negative motivators apply as well as Hattie’s results. In contrary to

Herzberg’s theory – which is criticised anyway in this particular case (Semmer & Udris,

2007 and Buettner, 2013) – the elimination of demotivating factors cause motivation –

we can underline this argument when taking the intrinsic motivation of “taking over of

responsibility” in comparison with the extrinsic one “lack of responsibility”. The

elimination of the extrinsic one consequently leads to motivation.

Coming back to the intrinsic motivation before starting the education, just an example

illustrates the further steps to be done: One of the students’ answers was that they start

the education to become an Officer because of the possibilities to go abroad. The reality

according to the valid accreditation paper for the studies of military leadership is that 100

percent of the students have to spend an entire semester as well as an internship abroad.

If the advertisement expresses this fact explicitly, probably more aspirants may consider

starting the education. This situation also refers to the other motivating factors mentioned

by the Officer Cadets.

36

5. Conclusions

Within this essay the author tries to combine the theoretical elaborations concerning

motivation of students with results from questionnaires conducted with Officers Cadets.

Two research questions were determined; the first one aims at skills and competences of

Officers – answered in chapter 4.1 – and the second one aims at motivating factors before

and during the Basic Officer Education – answered in chapter 4.2 and 4.3. Following the

results, some appropriate actions can be taken how to motivate students for the purpose

of increasing their performance.

1. Educate the educators: Just to have an excellent knowledge about a certain topic

in a special field is not enough. Professors, Lecturers and Officers need more. In

general it can be summarized as a mix of skills and competences according to

Heyse’s and Erpenbeck’s model of competences (Heyse & Erpenbeck, 2004) – just

one of them is special knowledge. Other competences aim at social ones; especially

the trust between students and Lecturers seems to be an important one (Hattie,

2008). Moreover, Lecturers should be seen and act as role-models – then it will be

much easier for them to motivate the students. Leadership skills – in the military

context this is more seen as the ability to lead troops in combat – are essential for

university and academy Lecturers as well. If all these – mentioned before – a

Lecturer does not have, it should be logical that he or she must undergo an education

to reach all these competences. Then it will be much easier to motivate students.

2. Give students room for achieving their intrinsic motivation: In this context the

handover of responsibility seems to be important – especially for future military

Officers. It goes hand in hand with (new) learning methods, even to such methods

where the students are allowed to take over the role as a Lecturer. A proper feedback

of the experienced Lecturer is a must to increase students’ performance for the

future.

3. Eliminate de-motivation: First of all the institutions have to know which the real

de-motivating factors are. In all higher education institutions evaluation systems

exist as part of the quality assurance system. The question is – is this enough to

discover the de-motivating factors? Only trust and open-minded talks may help –

the students have to have the feeling not to face negative consequences if they are

telling the truth. As soon as the de-motivating factors are identified, it is the fasted

way to motivate students because of eliminating them.

Finally, it can be said that motivation of students always requires a bunch of actions to be

taken to increase their performance. But that is why Lecturers’ jobs at education

institutions exist – we are there for our students!

References

[1] BUETTNER, Ricardo, 2013. Spezifische Kritik zur 2-Faktoren-Theorie von F.

Herzberg. Translated into English the title means: Specific criticism towards the

dual-factor theory of F. Herzberg. 2013 [2015-10-03]. Available from:

http://www.lulu.com/shop/ricardo-buettner/spezifische-kritik-zur-2-faktoren-

theorie-von-f-herzberg/ebook/product-20748576.html.

[2] DAMBECK, Holger, 2013. Pisa-Spitzenreiter: Das Geheimnis von Asiens Mathe-

Genies. Translated into English the title means: Pisa-frontrunners: The secret of

Asia’s Maths-genies. [2015-04-26]. Available from:

http://www.spiegel.de/schulspiegel/wissen/pisa-studie-2013-mathematik-

erfolgsgeheimnis-asiatischer-schueler-a-935718.html.

37

[3] DEWANI, Vijay, 2013. Motivation. Slideshare. [cit. 2015-04-26]. Available from:

http://de.slideshare.net/vijaydewani7/motivation-15959567.

[4] GELL, Harald, 2011. Führungskräfteauswahl – Optimierung der

Führungskräfteauswahl für Einsatzorganisationen (First Responder) durch neue

Methodiken mit besonderer Berücksichtigung der Auswahl beim Militär. Translated

into English the title means: Selection of Leaders – Optimisation the Selection of

Leaders for Emergency Organisations (First Responder) by new Methods, with

special Consideration onto the Selection within Military. Berlin. 2011.

[5] HATTIE, John, 2008. Visible Learning. Melbourne 2008. [cit. 2015-04-26].

Available from: http://www.zeit.de/2013/02/Paedagogik-John-Hattie-Visible-

Learning. Remark of the author: The table is translated into English by Col Dr. Gell.

[6] HERZBERG, Frederick and Mausner, Bernard and Snyderman, Barbara Bloch,

1959. The motivation to work. New York, 1959.

[7] HEYSE, Volker and ERPENBECK, John, 2004: Kompetenztraining. Translated

into English the title means: Training of Competences. Stuttgart, 2004.

[8] MASLOW, Abraham, 1943. A Theory of Human Motivation. [cit. 2015-04-26].

Available from: http://www.simplypsychology.org/maslow.html. Remark: Figure

1 is re-arranged and created by Col Dr. Gell.

[9] McCLELLAND, David C., 1961. The Achieving Society. New York, 2010.

[10] NILSON, Linda B., 2010. TEACHING AT ITS BEST – A Research-Based Resource

for College Instructors. San Francisco, 2010.

[11] RYAN, Richard M. and DECI, Edward L., 2000. Self-determination theory and the

facilitation of intrinsic motivation, social development, and well-being. Washington

DC, 2000.

[12] SEMMER, Norbert K. and UDRIS, Ivars, 2007. Bedeutung und Wirkung von

Arbeit. Translated into English the title means: The meaning and the effects of work.

Bern, 2007.

[13] VROOM, Victor H., 1964. Work and Motivation. San Francisco, 1995.

[14] ZIGLAR, Zig, n. d. Zig Ziglar Quotes. [online]. [cit. 2015-04-26]. Available from:

http://www.brainyquote.com/quotes/quotes/z/zigziglar387369.html.

http://www.zeit.de/2013/02/Paedagogik-John-Hattie-Visible-Learning

http://www.zeit.de/2013/02/Paedagogik-John-Hattie-Visible-Learning

http://www.simplypsychology.org/maslow.html

38

USING THE TOPSIS METHOD IN DECISION-MAKING PROCESS

CONCERNING LOGISTIC TRANSPORTS

Dumitru IANCU, Dorel BADEA, Ghiță BÂRSAN

Abstract: The decisions are the trigger of all human action and it calls to choice the

optimal variant based on multiple criteria or multiple decision-makers. TOPSIS method

leads to facilitate this process and generates a solution for final decision-maker, closer

to the reality of one specific context. The military actions are dependent on the ways in

which logistic transports manage to maintain an adequate level of logistical support for

military structures involved, thus decisions in this area must be at the highest possible

quality.

Keywords: topsis method, decision making process

1. Introduction

In the last years, NATO military actions have undergone profound transformations in

relation to their characteristics. On the one hand the problems are related to the dynamic,

scale and structural components involved, and on the other hand, to the types of missions

followed and the geographic area where were conducted. Without these aspects be

detailed, it is quite obvious that the challenges arising out of these perspectives of modern

military action call for military logistics to find solutions that increase in a more efficient

manner to the achieving of support and assistance logistics.

2. Logistic transport – essential component of contemporary military logistics

Military logistics has as its fundamental mission planning and operationalization of the

movement and supporting forces carrying out military action and aims:

a) the planning and development, acquisition, storage, transport, distribution,

maintenance, evacuation of the materials and their removal from service;

b) the transport of personnel;

c) the acquisition, construction, maintenance, operation and decommissioning, of

buildings;

d) the acquisition or providing services;

e) the medical support.

The short analysis of some theoretical explanation of the concept of military logistics

unequivocally shows that for the implementation of its, the transport activity is essential

and, subsequently, that all other supporting element of specific activities need to be

undertaken to ensure the forces with which they need in order to fulfill successfully the

tasks entrusted. The complexity and diversity of military actions that was developed by

NATO in recent years (eg. Iraq, Afghanistan, Libya, etc.) requested a continuous and

adequate logistical support in accordance with the requirements of the specific context of

these theaters, based on planning, organizing and conducting efficient transport,

regardless of level or category.

39

The importance of transport logistics can be highlighted by:

a) the need to reduce the duration of military action as a whole - the time necessary to

accomplish military action must be as short for the social, economic, cultural etc.

area of conflict will not be reconfigured or distorted by such action;

b) the need to reduce the responsiveness of the logistics forces to support combat

forces - stocks of materials may be consumed, depending on the dynamics of

military action at random and nonlinear, which calls for reference applications for

their completion and response of the logistics forces must be firmly and quickly so

that it not jeopardize the achievement of the mission;

c) the need to reduce expenses related to conduct military actions - in the manner of

optimization / efficiency of transport logistics can achieve substantial savings in the

budget for these military actions, is a mandatory requirement in relation to the

downward trend in military budgets of both the nations involved as well as in

NATO.

The final decision of military commanders regarding to how they conduct the military

action includes, mandatory, the subsequent decisions relating to transports in logistic

field, those underpinning to the planning process of that military action, because requires

movements of troop and materials until the start of it.

In this context, NATO Logistics Handbook sets, related to movement and transport

(M&T), that it is a requirement that a flexible capability exists to move forces in a timely

manner within and between theatres to undertake the full spectrum of the Alliance’s roles,

operations and missions. It also applies to the logistic support necessary to mount and

sustain operations.

M&T planning is a distinct, but integral part of logistic planning and should be consistent

with force and operational planning. Also, into the planning process transport should have

considered the mobility levels, specific to context of military action:

a) Strategic mobility. Strategic mobility is the capability to move forces and their

associated logistic support quickly and effectively over long distances. This can be

between JOAs, between regions (inter-regional), or beyond the NATO Area of

Responsibility.

b) Operational mobility. Operational mobility is the capability to move forces and

their associated logistic support quickly and effectively within a region (intra-

regional). It also embraces the capability to concentrate regional forces against the

major enemy thrust and to counter-concentrate operational reserves.

c) Tactical mobility. Tactical mobility is the quality or capability to concentrate

regional in-place forces up to division level against the major local enemy thrust

and to counter-concentrate tactical reserves.

In addition, in the design process of M & T activities in military actions could be used, to

provide the essential elements of military logistics, SCOR model (Supply Chain

Operation Reference), frequently met in the supply chain-delivery of civil firms:

a) planning - setting a course of action, linking supply and demand, ensuring

integration of activities and organizations;

b) supply - purchase of goods and services to satisfy the planned and actual

application, consisting in a set of activities that connect the organization with its

suppliers;

c) production - the process of transforming the inputs into final product in order to

meet the planned and actual application;

d) delivery - supply of goods and services to meet planned and actual application,

through activities involved in the management of orders, transport and distribution;

40

e) return - upstream transmission products (raw materials, components, etc.) the

supplier or receipt of goods returned by customers, including post-delivery services

to customers.

It is clear that the decisions of transports in logistic are influenced from two directions:

multiple criteria analysis with strict reference to transport issues (quantity, time, speed,

etc.) and emergency supply of the structures involved in the pursuit military action; that

creates difficulties in choosing the best transport solutions.

3. TOPSIS method – theoretical particularities

The TOPSIS (Technique for Order Preference by Similarity to Ideal Solution) method

was developed by Hwang and Yoon in 1981. This method involves the concepts of

calculating Euclidian distances. TOPSIS method gives the solution that is closest to the

hypothetically best. This method is used to solve multi-criteria decisions under

deterministic conditions.

The algorithm for application TOPSIS method:

a) establish the variants (V1, V2,…Vi), where i = (1,p), the criteria/ attribute (Q1, Q2,

…Qj), where j = (1,t) and the decision-makers (D1, D2, …Dd), where d = (1,m);

b) determine the scales of assessment criteria / attributes and variants;

c) determine the size (importance) criteria / attributes depending on the scale of

assessment established:

𝑘𝑖 = (∑𝑛𝑖𝑑)/𝑚

𝑚

𝑑=1

where ki – average score of each decider for the variant Vi

nid – note of the decision maker d given to version Vi

m – number of decision makers

after will normalized the importance of each criterion as against ki, obtaining the

ki*.

d) calculate the average marks given by each decision maker for each variant,

according to each criterion / attribute based on the assessment scale established:

𝑙𝑖 = (∑𝑁𝑖𝑑)/𝑚

𝑚

𝑑=1

where li – the average marks given by each decision maker for variant Vi,

under the criterion / attribute Qj

Nid – Note the decision maker d given to version Vi under the

criterion / attribute Qj

m – number of decision makers

e) build the decision table with variants versus criteria / attributes xij;

f) determine the normalized matrix, such:

𝑟𝑖𝑗 = 𝑥𝑖𝑗/√∑𝑥𝑖𝑗2

𝑝

𝑖=1

g) calculate the normalized weighted matrix, using the formula:

𝑎𝑖𝑗 = 𝑟𝑖𝑗 ∗ 𝑘𝑖 h) determine the ideal solution and the negative ideal solution:

The ideal solution: Vj+:

41

min)(min

max)(max

1

1

isitCifa

isitCifa

vjij

pi

jijpi

j

The negative ideal solution: Vj-:

min)(max

max)(min

1

1

isitCifa

isitCifa

vjij

pi

jijpi

j

i) calculate the distances from the ideal solution and negative ideal solution:

t

j

jiji

t

j

jiji

vaS

vaS

1

2

1

2

)(

)(

j) calculate the near of ideal solution and carry out a hierarchy of variants in

descending order:

ii

ii

SS

SC

4. Possibilities of applying the TOPSIS method in order to choose the decision

related to logistic transport

a) Suppose we have the following data:

a.1. Transport variants: V1 – transport by means of equipping subunit logistics,

V2 – transport by means of equipping subunits beneficiary, V3 – transport

by means of local transport operators;

a.2. Criteria / attributes. Q1 – transport cost, Q2 – delivery time, Q3 – the degree

of masking, Q4 – quantity transported;

a.3. Decision makers; D1 – logistics officer, D2 – staff officers, D3 – officer in

the transport unit, D4 – officer from a beneficiary unit.

b) Determine the scales of assessment criteria / attributes and alternatives

Table no. 1 Assessment grid of the criteria’s importance

Quality Very

very low

Very

low Low

More

than low Medium

Less than

high High

Very

high

Very very

high

Notation 0,05 0,10 0,15 0,20 0,25 0,30 0,35 0,40 0,45

Table no. 2 Assessment grid of variants

Quality Minimum More than

minimum Satisfying

Less than

extraordinary Extraordinary

Notation 1 3 5 7 9

c) Determine the size (importance) criteria / attributes depending on the scale of

assessment established:

42

Table no. 3 Determine the importance of the criteria

Decidents \

CriteriaD1 D2 D3 D4 k i k i

*

Q1 0.4 0.1 0.3 0.15 0.24 0.209

Q2 0.3 0.3 0.4 0.25 0.31 0.275

Q3 0.15 0.45 0.25 0.4 0.31 0.275

Q4 0.25 0.2 0.35 0.3 0.28 0.242

d) Calculate the average notes given by each decision maker for each variant,

according to each criterion / attribute based on the assessment scale established:

Table no. 4 Calculate the average notes for criterion Q1

Decidents\

VariantD1 D2 D3 D4 l i

V1 4 5 3 5 4.25

V2 7 7 9 5 7.00

V3 8 7 6 5 6.50


Decidents\


V1 3 6 5 4 4.50

V2 6 7 5 6 6.00

V3 5 8 6 6 6.25


Decidents\


V1 6 8 7 7 7.00

V2 6 7 8 7 7.00

V3 4 3 2 4 3.25


Decidents\


V1 4 5 6 6 5.25

V2 6 7 8 7 7.00

V3 8 7 8 6 7.25

e) Construct the decision table „variants versus criteria / attributes”xij;

43

Table no. 8 Decision table

Criteria \

VariantsQ1 Q2 Q3 Q4

V1 4.25 4.50 7.00 5.25

V2 7.00 6.00 7.00 7.00

V3 6.50 6.25 3.25 7.25

f) Determine the standard matrix, such: Table no. 9 Standard matrix

Criteria \

Variants Q1 Q2 Q3 Q4

V1 0.406 0.461 0.672 0.462

V2 0.670 0.615 0.672 0.616

V3 0.622 0.640 0.312 0.638

g) Calculate the normalized weighted matrix:

Table no. 10 Standardized weighted matrix

Criteria \

Variants Q1 Q2 Q3 Q4

V1 0.085 0.127 0.185 0.112

V2 0.140 0.169 0.185 0.149

V3 0.130 0.176 0.086 0.154

h) Determine the positive ideal solution and the negative ideal solution:

Considering the criteria, it will follow:

- Maximizing the criterion Q3 and Q4

- Minimize the criterion Q1 and Q2

Ideal solution: Vj+:

154,0;185,0;127,0;085,0

jv

Ideal negative solution: Vj-:

112,0;086,0;176,0;140,0

jv

i) Calculate the distances from the positive ideal solution and negative ideal:

)0437,0;1059,0;1234,0(

)1192,0;0695,0;0426,0(

i

i

S

S

j) Calculate approximation of the ideal solution and provides a ranking of variants

in descending order:

44

Table no. 11 Determination of the distance from the ideal solution

Variant V1 V2 V3

Si+ 0.0426 0.0695 0.1192

Si- 0.1234 0.1059 0.0437

(Si+)+(Si-) 0.1659 0.1754 0.1630

(Si-)/(Si+)+(Si-) 0.744 0.604 0.268

Resulting the hierarchy variants V1>V2>V3

Thus, based on the views of decision makers, chosen criteria and types of variants

delimited the best option is using TOPSIS methodV1 – transport by means of equipping

subunit logistics.

5. Conclusions

We believe that if it builds a common set of criteria (accepted by all functional areas of a

military structure) and through timely submission of information necessary for

introduction in using TOPSIS method, decisions related to the modalities, forms and

structure of logistic transports structure will have effectiveness and will be a real support

for the best decisions of commanders of military structures.

References

[1] Allied Joint Movement And Transportation Doctrine, AJP-4.4(A), 2005,

http://everyspec.com/NATO/NATO-ATP/download.php?spec=AJP-

4x4A.016609.PDF , accesat la 07.04.2015

[2] NATO Logistic Handbook, 2012, www.nato.int/docu/logi-

en/logistics_hndbk_2012-en.pdf, accesat la 06.04.2015

[3] Regulamentul logisticii operațiilor întrunite, Ordinul nr. 36/ 2008 al Ministrului

Apărării, published in Monitorul Oficial al României nr. 353 din 07.05.2008, partea

I, www.dreptoline.ro/legislatie/ordin_pentru_aprobare_regulament_ logistica_

operatii_ intrunite_36_2008.php , accesat la 07.04.2015

[4] Bălan, C, Analiza comparativă a modelelor de implementare a managementului

lanțului de aprovizionare-livrare, in Rizea, C., Minculete, Gh., (coord.), Abordări

și determinări funcționale ale logisticii, Editura Universității Naționale de Apărare

”Carol I”, București, pp.173-174, 2007, ISBN 978-973-663-493-2

[5] Mares, J., Cempirek, M., Korecki, Z., Nyszk, W., Savu, T., Multinational

Logistics in Missions, ”Nicolae Bălcescu” Land Forces Academy, 2011, pp. 20-

21, ISBN 978-973-153-105-2

[6] Sameer Kumar, D., Radhika, S., Suman, K.N.S., MADM Methods for Finding The

Right Personnel in Academic Institutions, in International Journal of u- and e-

Service, Science and Technology, Vol.6, No.5 (2013), p. 137, ISSN: 2005-4246,

http://www.sersc.org/journals/IJUNESST/vol6_no5/12.pdf , accesat la 05.04.2015

45

COMMAND AND CONTROL FOR PEACE OPERATIONS

Vítězslav JAROŠ

Abstract: With the end of the Cold War many Armed Forces has found itself involved in a number

of “peace operations.” These are complex, untraditional missions that are as much political as

they are military. While there are many differences between these untraditional operations and

more customary combat missions, they share the requirement for effective command and control

(C2). By almost any measure, the military experience shows that traditional C2 concepts,

approaches, and doctrine are not particularly well-suited for peace operations. This paper (1)

explores the reasons for the mismatch between traditional C2 and peace operations, (2) examines

alternative command arrangements approaches, and (3) describes the attributes of the command

arrangements needed to manage peace operations effectively.

Keywords: command and control, peace operations, command arrangements

approaches

1. Introduction

Command and control (C2) is the military term for the management of personnel and

resources. Because warfare is qualitatively different from other aspects of society, C2

concepts both pre-date and have evolved separately from industrial management. Few

human endeavours have either the time criticality or the high cost of error of warfare.

These two crucial characteristics have shaped our thinking about C2.

We can have defined “Command” as the authority that a commander in the military

service lawfully exercises over subordinates by virtue of rank or assignment. [4]

Command includes the authority and responsibility for effectively using available

resources and for planning the employment of, organizing, directing, coordinating, and

controlling military forces for the accomplishment of assigned missions. It also includes

the responsibility for health, welfare, morale, and discipline of assigned personnel.

2. Principles of war and peace operations

Neither command arrangements nor C2 systems (including commanders, staffs, and the

equipment they use to perform C2 functions) actually carry out military missions. Rather,

they perform the functions that organize, direct, and enable others to carry them out. But

while they have no intrinsic value, their role is instrumental—they facilitate mission

accomplishment.

Effective command arrangements result in effective military operations. One way the

quality (effectiveness) of military operations has traditionally been assessed has been in

terms of the proper balancing of the “principles of war” that have been used as shorthand

guidelines by generations of military leaders.

46

For a variety of reasons, no single list of principles of war has gained universal

acceptance. According to Hughes (1986), we can identify seven principles:

- Objective,

- Simplicity,

- Unity of command,

- Offensive,

- Concentration of superior force,

- Surprise, - Security. [3]

The principles of war are both interrelated (concentration of force depends on objective,

simplicity, and unity of command) and somewhat contradictory. For example,

concentration of force is always balanced against security; surprise almost always

requires more complexity in the battle plan, etc.; however, effective C2 succeeds in

balancing these different elements and making them mutually reinforcing. Similarly,

effective command arrangements for peace operations must balance principles related to

peace.

While they may involve the use of force, peace operations are not warfighting operations.

As a consequence, both of their different purposes and the different environments in

which they take place, peace operations often force commanders to violate principles of

war, which both increases the short-term military risk to the peace forces and makes their

military commanders very uncomfortable. These conditions are exacerbated when the

operations in question become coalition operations.

All of this having been said, however, forces with missions such as peace imposition may

well be conducting classic military operations. They will be relying on traditional

principles of war except where that reliance makes it more difficult to achieve their

overall mission. Such forces may well need to concentrate superior forces, rely on

surprise, take measures to ensure the security of their forces and operating bases, and

seize the military initiative. However, the goals of their operations will typically be

limited and their offensive operations designed to establish the credibility of their forces

and induce the parties to make greater efforts to find political solutions.

They are unlikely to include the destruction of major forces or the creation of dangerous

situations in which military force will be continually required to ensure peace.

The realistic principles for coalition peace operations therefore might best be stated as:

- Unity of Purpose;

- Consensus Planning;

- Simplicity;

- Adaptive Control; and

- Transparency of Operations. [1]

The first three of these principles are closely interrelated. Unity of purpose is created and

maintained by adopting consensus planning. This permits the interaction necessary both

to “hear” the range of national agendas relevant to the operation and to build confidence

within the coalition. At the same time, simplicity is essential both to ensure that consensus

can be built and to make it easy to maintain the clear objectives and procedures on which

effective unity of purpose depends. The other two principles are derived primarily from

the nature of peace operations and the environments in which they are undertaken.

Command and control and principles of war are not substitutes for having the full suite

of military capabilities required for success. These include the basic military functions:

- Force structure appropriate to the mission,

- Personnel with appropriate experience and training,

- Intelligence about the situation and potential adversaries,

47

- Capacity for planning and coordination,

- Logistics support,

- Communications systems, and

- Effective capability for civil-military relationships. [1]

These, in turn, must be applied in the heavily political context predominant in peace

operations, as well as in concert with associated humanitarian efforts.

3. Results

Designing an appropriate set of command arrangements for coalition peace operations

requires a clear understanding of the essential functions to be performed and the qualities

desired—the objective criteria for success.

Command arrangements are the systems by which military and political-military

organizations make and implement decisions in an operating environment.

The command arrangements always exist in the context of a larger environment, which

includes military elements (own, enemy, and potentially other forces that are not directly

included in the network), physical and ecological factors (terrain, weather, and so forth),

as well as political, social, and economic factors.

The purpose of the system of command arrangements is to control some selected features

of this environment (for peace operations, this might include keeping military forces out

of demilitarized zones, preventing the flow of arms across a border, or other explicit

tasks), which is the equivalent of accomplishing assigned missions.

Figure 1: Command Arrangements

Source: ALBERT, S., D. and HAYES, E., R. Command Arrangements for Peace Operations.

CCRP Publications Series. 1995, p. 85.

However, the system of command arrangements and the decision makers it serves do not,

in and of themselves, execute operations or accomplish missions. Rather, they create

favourable circumstances, develop plans, ensure that the materials needed are available,

coordinate activities, and undertake representational and decision functions that enable

other (usually subordinate) organizations to accomplish missions.

48

The plans they create consist of five key elements:

- missions (or objectives) to be accomplished;

- assets (resources) to support each mission;

- boundaries that organize these efforts in space;

- schedules (either explicit times or sequences) that organize the efforts over time;

and

- contingencies under which the first four elements change.

Success (effectiveness) consists of creating directives and coordinating requests for

assistance from actors who are not subject to military command. Such directives should:

(1) reflect the planning process,

(2) be implemented successfully without change beyond the contingencies explicitly built

into them, and

(3) have the desired impact on the environment.

The processes inherent in command arrangements (which are always part of the process,

whether explicitly or not) are also illustrated in Figure 1. They include:

- monitoring the environment (i.e., developing facts about it);

- understanding the larger patterns that the facts describe or imply such that, if no

new initiatives are undertaken, the command understands how the future is likely

to unfold

- (including multiple possible futures when the information is incomplete,

inconsistent, or ambiguous);

- identifying alternative courses of action (including doing nothing or continuing

with the existing course of action) that could influence which future(s) occur;

- assessing each alternative course of action, including predicting the likely

consequences of following each, as well as their feasibility;

- deciding (i.e., choosing from among the available courses of action); and

- directing, in other words, preparing and issuing guidance to those organizations that

are responsible for execution or whose cooperation is needed.

While these six steps are inherent aspects of any system of command arrangements, four

other processes are also normally involved and contribute to success:

- information seeking, which is undertaken when a commander recognizes the need

for some specific information;

- reporting to inform superiors, subordinates, those in lateral positions, or the general

public (through the media);

- inquiries to clarify directives or reports received, or to resolve inconsistencies

within and among the elements of information received; and

- coordination undertaken to synchronize activities.

These four additional activities are particularly crucial in peace operations where the

number and variety of actors, their lack of prior experience working with one another,

and the absence of common, reliable communications systems often make timely

information collection and dissemination very difficult.

4. Discussion

The fundamental question is, how command arrangements might be designed and the

range of situations (or operating environments) in which different approaches might

prove wise.

Few serious analyses of alternative approaches to command arrangements have been

conducted, partly because C2 community research has been preoccupied with

communications and computer systems, and partly because command has generally been

understood as an art, often driven strongly by the personalities and styles of individual

49

military leaders. The major exception to this neglect has been a long-running discussion

concerning the degree of centralization in command arrangements. Historically,

command arrangements have gone from more centralized to more decentralized

approaches, in large measure because of the complexity of the warfighting environment

and the limits on the technologies available for gathering information and distributing

directives. [1]

Figure 2: Evolution of Approaches to Command Arrangements



Figure 2 illustrates the evolution of approaches to command arrangements. The vertical

axis ranges from the simple battlefields of classical armies, which were commanded by

individuals who took into consideration only the immediate terrain, weather, and forces

to the combat of modern warfare in which relevant actors are spread over vast distances,

from space to undersea and underground locations. The horizontal axis represents the

degree of centralization inherent in the dominant command arrangements.

In the twentieth century, they developed more decentralized approaches that exploited the

speed and firepower of modern forces by permitting—even requiring—initiative at lower

levels.

Results of historical and comparative research was the identification of three major types

of C2 approaches, each with at least two important subtypes. All six approaches have

been successful, but each is more appropriate for some types of warfare than others.

Figure 3 shows these subtypes and the relative headquarters capacity (information

processing and military art capability) required to apply them successfully.

50

Figure 3: Types of Command and Control



The existence of these six distinct types of command and control systems in prominent

military establishments helps to explain why coalition operations are plagued by

interoperability problems at the cultural, organizational, and procedural (doctrinal) levels,

to say nothing of the technical communications systems they use.

5. Conclusion

Military forces are blunt instruments. Peace operations involve subtle missions. This

fundamental mismatch between the classic functions of military forces and those required

for successful peace operations makes the careful design of command arrangements an

essential step toward achieving effectiveness. This article has reviewed (a) the unique

demands and requirements for successful command arrangements in peace operations,

(b) a range of experience in recent coalition warfare and peace operations, (c) the state-

of-the-art knowledge of alternative approaches to command arrangements, and (d) the

approaches necessary to assess alternative command arrangements.

References

[1] ALBERT, S., D. and HAYES, E., R. Command Arrangements for Peace

Operations. CCRP Publications Series. 1995.

[2] HOUCK, W., J. The Command and Control of United Nations Forces in the Era of

"Peace Enforcement". Faculty Works at Penn State Law eLibrary. 1993.

[3] HUGHES, Capt. Wayne P. Jr., USN (ret.). (1986). Fleet Tactics: Theory and

Practice. Annapolis, MD: Naval Institute Press.

[4] JCS Pub. 1, Dictionary of Military and Associated Terms. Department of Defence,

USA, 2010.

51

CURRENT PITFALLS OF MANAGEMENT STUDIES

Jaroslav KOMÁREK

Abstract: Management studies in the Czech Republic are still considered as a part of Business

Economics compared with independent study programs of Management abroad. Business

Economics and Management have undergone divergent evolution; Business Economics

unchanged and Management developed into number of separate disciplines. Graduate

education in military can have different conceptions; the preparation of officers for smaller

armies is characterized by a less expensive model that integrates education and military

training in the four-year bachelor program Military Management.

Keywords: Management, Business Economics, study program, Military Science,

Military Management

1. Introduction

The quarter of a century in the new social-economic environment entitles to look back,

but at the same time encourages reflecting on how to proceed. Not accidentally we have

encountered already with critical reflections how the transfer of Management teachings

from the world of market economy has contributed [1]. In recent years, however, gain

contributions that the home state of the Management teachings assess negatively and

point to the lack of support for the practice by theory [2]. Bookstores are indeed full of

other books on management, but those from abroad bring more stories than the methods

and the home (usually by means of grants) recycle generally known knowledge,

sometimes not fully understood. Questions about the current and especially future

development of the Management teachings are relevant also in the environment of

traditional market economy. There are opinions that management development is

similar to that of many other phenomena logistic curve [3]. The influence of the first

methods on productivity was significant, while the influence of a multitude of

postmodern approaches, which quickly spread and were soon replaced by "more

successful", was problematic one. Many of the "bestsellers" were based on the principle

of retrospective carry of their accomplishments on the method used, but which may not

guarantee success in other conditions. Moreover, some companies issued for success

story already failed, and the once admired methods nobody even remembers.

Even more significant is domestic criticism directed to education because it does not

meet the needs of the labour market and does not prepare properly managers. These are

often subjective opinions of practice, but are also supported by objective evaluation. The

current study "The needs of employers and readiness of school leavers" [4] is based on

more than a thousand questionnaires completed by employers from various practice

areas. Employers look on the preparation of college students mainly negatively and

affirm that schools do not prepare adequately for entering employment.

52

2. The higher education of managers in the Czech Republic

How are actually prepared graduates in Management for the crucial area of the first

application in practice, namely for the position of manager at a basic level? Separate

management study program for bachelor's degree does not exist, codified is the

economic study program "Economics and Management", in which are accredited

various fields of managerial focus. The concept of the program is based on the principle

that management is an integral part of business and thus of the teaching of Business

Economics.

The origin of the business economics approach is in German environment, which until

recently has been reluctant to accept the term management. Wöhe‘s "Introduction to

Business administration teachings" [5] presents a comprehensive view of all business

decisions undertaken in the enterprise, including basic theoretical rationale and

overview of the methods used. This therefore includes decisions on enterprise objectives

and form, method of manufacturing and appreciation, and just business management

(planning and decision making, organization, human resources management, control,

information management). An important part of Business administration teachings is

also investment policy, corporate finance and especially reporting and costing. Above

mentioned business management but does not feature leadership and therefore not all of

what is generally regarded as the content of management.

Because management is in business administration's approach considered as a part of

economic science includes study program Economics and Management obligatory quota

of mainly theoretical economic subjects. To make this approach more consistently

applied, the Accreditation Commission approved in 2013 „The standards for study

programs in the field of applied management“ in the interpretation: „Applied

management means degree courses that combine specific professional disciplines

(engineering, arts etc.) with the education of experts in the (economics and)

management. In addition to the management in the certain theoretical level

supplemented with methods and techniques of management, human resources

management, management skills and the basics of psychology and sociology, must be

included other economic subjects - Principles of Economics, Marketing, Law (in the

form of law basics) or Statistics"[6]. Principles of Economics are but Microeconomics

and Macroeconomics, and the question is how memorizing dozens of macroeconomic

graphs (some valid just to another Nobel laureate in Economics) will contribute to the

success of the business. But if have been in all the non-economic fields of study

included Fundamentals of Business Economics, so it would contribute to increasing the

international competitiveness more than ten thousand partial projects of the Operational

Programme Education for Competitiveness funded in amount of CZK 52 billion [7].

Study programs focused on entrepreneurship have abroad similar content [8], but the

emphasis on the practical application of theoretical background and training in

managerial skills, and there is a problem. The preparation of managers for the current

practice requires its knowledge, of that is at universities still less because the results

achieved in practice are not counted in the hunt for impacts. But there is increasing

share of academic staff with qualification obtained exclusively within the continuous

studies Bachelor-Master- PhD.

3. The essence of Management teachings

Binding of Management on entrepreneurship is common in the business world

(Business Management, Business Administration), but with Business Economics at the

same level [9], not as a pendant. But Management is fully applicable in public

53

economics and technical fields, not only on the enterprise but on the organization

generally. The basic question what is the essence of Management from a theoretical

perspective tried to answer already in the 80s Harold Koontz [10], whose textbook of

Management significantly influenced the teaching of Management at Czech higher

studies. Professor Koontz was not only one of many authors of books on management,

but the long-time president of the International Academy of Management, a global

organization currently helping to develop Management teachings in 114 countries. By

him recommended and now the most widely used approach is to establish the

Management teachings on typical activities (functions) that are necessary for the

organizations generally: planning, organizing, human resources, management and

controlling (in this context should be pointed analogy with Fayol´s administrative

functions!). These features are unique to the core teaching of management, but

decidedly not theoretical, but rather eclectic - in different functions is used theoretical

knowledge from a variety of sciences, such as psychology, sociology, economics,

mathematics, industrial engineering or system science.

Although Harold Koontz has been unquestionably one of the "gurus" of Management,

his approach cannot be considered for a universal solution. Joseph L. Massie added later

further two function - decision making and communicating [11]. Koontz namely

included communicating to the function leadership, although he writes, "even though

communication accompanies all areas of management, especially for leadership has an

extraordinary importance" [12]. Management but without communicating cannot

operate at all, only through communicating the entire process is set in motion: the

manager receives intention or directly task, completes necessary information, and after

selecting a specific alternative solution his decision gets through communicating with

subordinates. Even the feedback controlling of realization can be ensured by

communicating.

And it is also clear that the most important intellectual legacy of Harold Koontz is

systemic approach, which is characteristic of his entire textbook. At home, however

small response, the functions are declared only and no system. According to general

systems theory is the control a deliberate process of influencing behaviour of the system

to achieve a certain target. Management teachings but can be defined analogically as a

mental tool for the achieving of a target in group work. Let us try to characterize the

core of Management by a bit simplified systemic model of target behaviour (Fig. 1).

54

Fig. 1 The simplified systemic model of Management

Planning is not ranked as the first managerial function for its own sake; it is the starting

point for achieving the time-distant objective. The objective is communicated to a

manager either directly or he has the power to determine it himself according to his

purpose. To meet the objective, it is necessary to determine the time sequence of

corresponding actions, but their identification and coordination in relation to the

arrangement of resources is contained in organizing, closely related with planning but

different methodically and time independent. The fulfilment of the organization by

human resources is staffing and the essence of leadership is influencing subordinates in

order to perform tasks as they want (to best) and not only must. Controlling is

essentially comparing achieved and desired state (objectives, plans, parameters) and

represents a feedback conditioning the function of system with target behaviour in

general.

If the check reveals that current state does not ensure the successful achievement of the

objective, it is necessary to take appropriate action (e.g. to change terms in plan or to

restructure resources, to choose better staff, to change the style of leadership, to

introduce appropriate controlling or communicating). But there can be a situation that

even the best variant of managerial functions does not ensure the achievement of

objective. Why, the objective has been determined incorrectly? Every plan is based on

certain assumptions about the future state of the environment (both external and

internal). But when in the course of implementation, the originally anticipated state has

changed significantly (mostly beyond our control), objective must be corrected (and not

to waste resources in order to meet the objective „at any cost “). Each of these functions

usually contains more variants of solution and therefore it is necessary to determine

which one will bring the greatest effect. Decision making is so intertwined with all

managerial functions; it is always about choosing the best solution from several options.

D e c i s i o

n m

a k i n

g

Target (intention)

Leadership

Controlling

Staffing

Organizing

Planning

C o

m m

u n

i c a t i n g

NO

YES

Environment

Toward target?

55

Therefore, decision making has the key role between managerial functions and when

some decision is followed by an implementation, the way back may demand a

significant cost, loss of authority or may not be possible at all (it is said that managers

are paid for making decisions!).

But what are crucial, Business Economics and Management have undergone divergent

evolution over thirty years. Business Economics as a description of the enterprise

functions essentially unchanged [13], and Management from the original ambiguously

defined teachings entitled "Management theory jungle" [14] developed into number of

separate disciplines. The new status as a higher education's subject and even study

program have strategic-, human resources-, crisis-, risk-, change-, knowledge-, project-,

and of course business management, others have more interdisciplinary nature such as

information-, business process-, operational-, safety-, environmental- or quality

management.

And what was originally conceived as a "management" is currently distinguished as the

core of management consisting of the typical functions and called General Management

in reminiscence of the Fayol‘s Administration industrielle et générale. Only in Great

Britain the General Management is doctrine for top management, but there is also

everything different and that is why some reformers of the Czech higher education take

pattern from there. General management itself is a sufficient tool for line managers and

other managements are actually add-on application of this general principle to a specific

area of practice. These specialized for middle-level mainly and strategic management

for the top level. The role of general management is not limited to the basic

organizational level. Whether is a problem in any field of human labour, and at any

level, its solution requires always setting goals, planning, organizing resources, staff

motivation, controlling and without communication and decision-making cannot work.

4. Study program Management

Management as an independent bachelor's and master's degree program is widespread in

the US, Western Europe and Asia, common is also doctoral study program in

Management Science. Doctoral studies are a crucial precondition for the autonomy of

study program, because it has "its own" science. The foundations of Management

Science are analytical and simulation models to support decision-making (Operations

Research), with emphasis on the methodology of systems modelling and the application

of advanced mathematical and statistical methods [15]. Due to the content are

essentially analogous to the management the study programs in Organizational Science

and Administration Science, usually aimed more generally at any kind of organization

[16].

Orientation in foreign study programs is not easy, because they are not rigidly arranged

(accredited is the institution, not the study program) and they can be considerably

individualized by wide selection of elective courses. In general, can be accepted, if

degree programs in management are not focused on business, economic subjects are just

additional or missing at all [17].

Actual efforts to reform higher education in the Czech Republic create the chance for

the innovation of the system of study programs, where could be utilized the results of

the project "Q - RAM" focusing inter alia on the new definition of the areas of

education. But no good news for the management, the key branches of economic area

should include: Economics and Economic Policy, Finance, Accounting, Business and

Management [18]. In this context, it is interesting that in the system of study programs

of the Slovak Ministry of Education the Management is also under economic science,

56

but separately from the program Business Economics and Management with the

explanation: The current study courses are not engaged exclusively in management with

the aim of educating the general manager primarily for line managing position. They

combine the profession of manager with the enterprise economist's profession. They

orientate graduate on the values of business processes and suppress comprehensive and

integrated perception of the enterprise. Universal manager such as integrator and

coordinator is a separate control profession “sui generis” [19]. It is worth noting that

the so-called "core knowledge" in the ongoing master's degree program comprises

managerial subjects only, except for one economic (Financial analysis). The principal

problem is that the small entrepreneur can also act in the role of a line manager, but on

the contrary it does not apply.

5. Military Management as a study program

Term Military management emerged in the US based on the experience of World War II

and from the beginning was emphasized usefulness of the knowledge transfer from the

industrial management and declared the nature of Military management based generally

on the functions of planning, organizing, leading and controlling applied to the military

environment [20]. Also attention was paid to its semantic definition to Business

management and to Command, as well its inclusion in the military education system

[21]. But the Military management "eo nomine" as an independent degree program has

not spread in the US, its content is mainly focussed on lifelong learning programs

accredited (graduate-level, non-degree) at a number of staff colleges, but the credits

obtained are even transmissible, e.g. for Master of Military Art and Science [22]. Real

graduate programs are generally oriented more broadly into defence environment, such

as Master of Science in Defence Systems Management, Defence Systems Analysis, and

Manpower Systems Analysis [23].

The role of graduate education in the preparation of officers illustrates an example of a

prestigious United States Military Academy at West Point [24]. The four-year bachelor's

program of this school is based on the assumption that graduates will work both with

people and with machines and therefore they are offered a balanced mix of human and

engineering education based on a broad base of natural sciences. In the first common

two years there are subjects: mathematics, physics and chemistry supplemented with

social and behavioural sciences, foreign languages and informatics. In the next two

years there are subjects for any of two hundred optional fields and obligatory subjects:

military history, military law and military leadership. But if a cadet chooses non-

engineering field (e.g. languages, history, law, political science, economics, and

leadership), he must still undergo three "core" engineering subjects and information

technology. This broad focus allows continuing education in a wide range of technical

and non-technical fields according to the needs of military. Maintaining the appropriate

scope of academic staff but obviously requires a considerable expense. In parallel with

studies is carried out military training (from basic training up to brigade level), which

does not have a credit rating, but together with the physical preparation determines the

overall evaluation. Similar broad-based graduate education provides for the army also

the elite Ecole Spéciale Militaire de Saint-Cyr in three master's degree programs:

International Relations and Strategy, Management of people and organizations, and

Engineering sciences. In the Management of people and organizations are optional

fields: Management, Law, Economics, Sociology, Communication and History, in

Engineering sciences: Engineering and Energy, Computers and Simulation, and

Electronics [25]. The expensiveness of this graduate preparation of an officer -

57

generalist, is not just right in the study but in the need for additional one-year training in

application schools for entry into practice.

The preparation of officers for smaller armies is characterized by a less expensive model

that integrates education and military training in the four-year bachelor program Military

Management / Leadership, for example in Austria [26], Hungary [27] or Croatia [28].

Credit ratings have not only military mutations of general subjects (history, law,

psychology, sociology, geography, management, logistics), but also Tactics and Military

technology and Armament. The Military management has its place also in the System of

study programs of the Slovak Ministry of Education, namely in the subgroup Defence

and Military. Bachelor's degree program Management of military systems contains in

addition to basics of natural and social sciences, managerial and informatics subjects,

but also System engineering, Mechatronics, Tactics and Weapons systems [19].

6. Conclusion

Accreditation of independent study program Management outside the Business

Economics framework is currently not realistic due to the dominant influence of the

Prague School of Economics in the Accreditation Commission and in the project

Q-RAM even so. Change could bring until the intended transfer of accreditation

competencies on the educational institutions, which would give more flexibility in

creating programs to the needs of particular social practice, and that is the cardinal

problem of higher education in the Czech Republic at all.

But what is possible at present, is the accreditation of study program Military

management beyond the Business Economics. Preparation of officers is not preparation

for business, but for the "control of humans and machines in a specific defence

environment" and it should match the content of the program. The legislative framework

for this change still exists in the classification code 9 Military Science [29], but the

terminology needs some upgrading.

References

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0026-8720.

[3] HAMEL, G. Moon shots for Management. Harvard Business Review, February

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komparační analýza. Praha: Národní ústav pro vzdělávání, 2014.

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Verlag Franz Vahlen, 1960.

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1987. ISBN 0-13-286337-5.

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ISBN 80-85605-45-7.

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[14] KOONTZ, H. The management theory jungle. Academy of Management Journal,

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The University of Texas at Dallas [vid. 2015-04-20]. Available from:

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Washington University [vid. 2015-04-20]. Available from:

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edu/schoolofengineering/managementscienceandengineering/#bachelorstext

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vzdělávání. Praha: MŠMT, 2012. ISBN 978-80-87601-10-5.

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=odbory

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Prentice Hall, 1951.

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MŠMT. [vid. 2015-04-27]. Available from: http://www.msmt.cz/vzdelavani/

vysoke-skolstvi/kody-studijnich-programu-vysokych-skol-stav-k-7-brezen-2015

60

ASYMMETRIC WARFARE - THE SIEGE OF

FALLUJAH

Csér Orsolya

Abstract: Asymmetric warfare is a tactical process based on policy objectives which can be used

to force our will upon the enemy. The non-traditional, inexpensive actions involving material

damage and human casualties (such as terrorism, deployment of weapons of mass destruction,

threat of using them, information warfare); guerrilla- and partisan-type raids implemented with

simple tools and techniques are considered its basic advantages. All these are usually the

weapons of the party fighting in the occupied territories (eg. bombings, suicide attacks, actions

against logistics, command posts, attacks against officers, command staff, destruction of supply

routes and transportation routes). The detection of these weapons and the psychological

preparation of the soldiers is very difficult, because the offenders do not comply with the

conventions of warfare. The siege of Fallujah in Iraq, which wrote itself into the history books as

one of the most infamous and serious insurgencies and in which the media and propaganda played

a major role, is regarded as an example of asymmetric warfare.

Keywords: asymmetry, insurgency, guerrilla, civilians, civilian victim, propaganda,

military gain

1. Introduction

Asymmetry doesn't mean anything other than the lack of symmetry between the

belligerents, partially or wholly. Asymmetric warfare is: "A warfare for the sake of

precisely outlined political aims, often based on ideological, religious, ethnic community

of several organizations, implementing military and non-military operations, tactics and

techniques building upon direct and indirect effects and intensifying each other's effects,

endangering different dimensions of security, mainly tactical procedures, with whose

effect altogether we may force our will upon the enemy." All of this is such an activity

that can be connected to asymmetric challenges, when the executors - in most cases not

even sparing their own lives - execute military actions, and is usually done against a

belligerent on a higher technological level. Their basic characteristics can be summarised

as below:

- non-traditional, inexpensive - an action causing material damage and human

casualties (for example terrorism, deployment of weapons of mass destruction,

threat of using these, information warfare);

- guerrilla, partisan type raids, carried out with simple tools and techniques;

- Usually these are the weapons of the party fighting in the occupied territories (e.g.

bombings, suicide attacks, actions against logistics, command posts, attacks against

officers, command staff, destruction of supply routes, transportation routes);

- The detection of these weapons and the psychological preparation of the soldiers is

very difficult, because the offenders do not comply with the conventions of warfare.

61

2. Guerrilla warfare culture and asymmetric warfare

The guerrilla warfare culture characterises not the state, or the regular belligerents, but in

many cases the self-organising ones with poor facilities and logistics, whose aim is to

intimidate or overthrow the state or foreign authority considered to be the enemy and rise

to power. Guerrilla warfare is characterised by its long-drawn-out, hidden and

unpredictable nature. Its primary resource is the local people, whose support is crucial to

the success of the guerrilla action. The guerrilla warfare culture practices military

defence, while using its information superiority to destroy law enforcement, troops, or

the state facilities with strategically offensive operations.

In the new paradigm of warfare (4th generation warfare) it is not possible to

unequivocally distinguish the periods of war and peace, there is no relatively safe

hinterland, there is no front and there is no separate battlefield where the armies

encounter. Often, there are no armies either: the belligerents are not state actors, but

ethnic, religious militias, criminal organisations, with whom it is difficult (or impossible)

to find the necessary compromise to reach a political solution. Methods and behaviour

forms that do not comply with the conventions of warfare emerge (for example hostage

taking, execution of captives), and methods that previously didn't rate as methods of

warfare: legal political activity, agitating the masses, demagogy, taking politics to the

streets and rioting, litigation; organised and unorganised crime, terrorism. The battlefield

is the population itself – the people on the streets, in the fields, in the buildings – all the

people, everywhere, anytime. Battles may happen anywhere - in the presence of civilians,

among the civilians, against the civilians and in defence of them, with the voluntary or

forced participation of civilians. The civilians equally can be targets, human shields,

reachable aims or belligerents, and often it is difficult to decide in a given moment which

role they are playing. The nature of the battle has also changed: their aim is propaganda

instead of destroying the resources of the enemy.

Guerrilla warfare as a warfare method is definitely not a new phenomenon. The history

of guerrilla warfare is as old as the history of warfare, and is a method frequently used by

the weaker belligerent party. The great, well-organised armies usually look down on

guerrilla techniques. It is true that the belligerent party implementing guerrilla techniques

often gives the impression of unorganised free corps, at the same time it is a fact that the

guerrilla warfare culture is one of the dominant existing, and in many cases surprisingly

successful, cultures of warfare appearing in more and more shapes and forms.

The belligerent implementing this 4th generation warfare approach is using techniques

which belong to the party less well-equipped and in a strategically weaker position. It is

important to note that guerrilla warfare is a conscious choice on the part of the belligerent,

and does not necessarily mean disadvantage. The party implementing guerrilla warfare

often also has that advantage that they may secede from the enemy, fall back and return

to the fight at another place and time (under conditions which are much more favourable

for them). The belligerent implementing classic guerrilla warfare is carrying out an

operational defence, but on a tactical level it is trying to collect strength to reach the

requested psychological effect and the final political victory. As a result of the initial

disadvantage of resources, the guerrilla army in the first and second phase of the warfare

is not able to implement open war and defeat armies organised in a classic way.

Examining the characteristics of the warfare culture, two basic factors, the political

orientation and the use of violence, must be taken into consideration. Politically orientated

activities may include sharing information (propaganda), organising demonstrations, and

recruiting activities, training members and infiltrating the current organization, ensuring

the support of outside forces, financing activities for the social support of the people, and

making strategic plans.

62

The success of guerrilla warfare depends on the support of the people, at the same time

the raising and the adequate distribution of the resources has an important role. Related

to the organizational structure, two categories can be basically distinguished: the selective

system, whose characteristic is that small elite units implement the struggle and the

violent attacks; and the mobilization system, whose base is that the leading elite is trying

to involve the people in the fight to the highest possible degree. Another significant

characteristic of guerrilla warfare culture is the use of violence. Among others this

characteristic distinguishes guerrilla war culture from political resistance movements (for

example Ghandi's movement in India) or human rights movements.

Thus guerrilla movements are equally characterised by both factors (political aspect and

use of violence). The two factors (even if occasionally to a different degree) are present

in guerrilla warfare culture in all cases, although depending on certain factors

(environment, popular support, organizational structure, solidarity, exterior support,

reaction of law enforcement organisations) the representatives of the guerrilla warfare

culture put different emphasis on politics and use of violence in different situations.

Returning to the basic principles of asymmetric warfare, it’s most important military

characteristic is that there is an enormous power and asset difference between the

belligerents in the conflict. In general, it can be said that the military power of the smaller

party is so limited that it cannot attain military victory using only traditional means, but

to win the war, guerrilla fighting, sabotage, and terror are needed. Hereby its necessary

accompaniment is violating convention, or leaving the norms behind. The final aim is to

force the enemy, the occupant - by several military methods - to give up. The more drawn-

out an armed conflict like this is, the more probable it is that asymmetric warfare occurs.

For victory, the army of the enemy must be defeated, its territory must be occupied, and

the will of the nation must be broken (from which in Iraq only the first two materialized!).

Asymmetric warfare is ascribed to have serious political character, as war in general. It

can be described with the following characteristics:

- high level of violence;

- the lack of statehood;

- the monopoly of violence gets privatised;

- the difference between combatants and non-combatants disappears;

- wars and armed conflicts approach conventional wars;

- abandonment of morals;

- the emergence of child soldiers and female suicide bombers;

- the aim is annihilation.

Among the factors determining the success of this type of warfare, establishing

information superiority is primary, emphasizing the role of intelligence. Besides this, the

isolation of the guerrillas, termination of guerrilla shelter by the civilians, and forming

control over the civilians (safety zones), and on this level the maintenance of the long-

term presence takes place. Hereby the concept of the field is re-evaluated, since in contrast

to preserving the territory the priority of the human field is recognised.

In point of control and leadership there is only one managing authority, the law

enforcement organisations have the leading role, military organizations have only a

supporting role, and special operation forces have an emphasized role. Psychological

warfare is also an important criterion of these operations, therefore effective, persuasive

psychological operations have outstanding importance, and the introduction of positive

persuasive regulations is crucial. Among the factors endangering the success of

asymmetric warfare are primarily the leading place of military leadership, uncontrolled

state borders, and the emphasised role of capturing the enemy as against winning the

civilians. Besides this, it is important to mention the use of military units of battalion size

63

or larger, the concentration of armed forces in large bases, the wrong approach of special

operation forces.

In this form of warfare it is important to distinguish the quality and quantity of violence.

In asymmetric warfare quality is the more effective - only against defined targets, with

the minimization of collateral damage, assuring the safety of the people, and winning

their trust. For military operations it is necessary to know the enemy and form the

appropriate orientation. The centre of gravity of asymmetric confrontations is the civilian

population, and on the basis of this, establishing and maintaining control over the civilians

is a factor of key importance to the military efforts, which can be achieved in three phases:

- achieving local information superiority, establishing control over the people,

- isolating the guerrilla infrastructure,

- destroying the guerrilla cell.

1st phase:

- distinguishing the enemy from the population using information gained by human

resources (HUMINT), importance of intelligence,

- in case of incomplete support by the civilians, information is only partial and

incomplete,

- in the absence of sufficient information quality, violence cannot be implemented,

collateral damage will be significant at the search and rescue operations,

- the numerical superiority of the guerrillas, since a part of the civilian population

always supports them - the aim is isolating them from the guerrilla cell,

- one of the most important military components of the controlling of the civilians is

forming safe zones.

2nd phase:

- increasing the control over civilians - one of the proven methods of achieving this

is to assess the level of the support of the state in a given area (it is rewarding to

start where it is the highest, for example the capital and its neighbourhood, where

the state infrastructure is more established),

- process: isolated population → guarantee their safety → local information

superiority → isolating the guerrilla infrastructure (that way they cannot get new

supporters).

3rd phase:

- in the first two phases the state law enforcement organisations created the

conditions for eliminating the guerrilla cell,

- getting information superiority in addition to power superiority,

- military operations recognised in orthodox warfare (eliminating the enemy),

- but the principle of quality violence should be followed here as well (if civilians get

hurt, it generates support for the guerrilla movement).

The asymmetric approach is based on the thorough evaluation of the vulnerability of the

enemy. It often uses innovative, non-traditional military methods, weapons or

technologies that may appear in the full spectrum of military operations can be tactical,

operational and strategic as well. In practice, asymmetry represents different acting

variations (operations), organisations, and ways of thinking different from the belligerent,

for the purpose of maximizing its own advantage, exploiting the weaknesses of the

enemy, and to take the lead or to win greater freedom to act. The asymmetry can be

political-strategic, military-strategic or a combination of these as well. In practice it

means different methods, technologies, organisational frameworks, time perspectives,

and various combinations of these, and it can be described with a series of other

characteristics, like for example the dimensions, levels, and forms of asymmetry. The

strategic asymmetry can be positive or negative as well. As a matter of fact, it is

64

determined by the point of view, and relative position of the belligerents. From the aspect

of positive asymmetry, for example in Iraq, the United States puts a strong emphasis on

high level training, professional leadership, and the management technique infrastructure

representing state-of-art technology, and their arsenal of military technology. This

strategy builds upon the exploitation of relevant superiority, while negative asymmetry

doesn't build upon its own strengths, but aims to achieve results by exploiting the

weaknesses of the enemy. From these concepts, it results that coalitions led by the United

States must prepare for the prevention of the threats represented by negative asymmetry.

Asymmetry has a certain temporality that assigns a time horizon, a time frame.

Asymmetry can equally cover a short or a long time horizon. Military history can show

countless examples of both types. For short-term asymmetry, a good example is the Blitz

in the Second World War that ensured positive asymmetry for the Nazi German war

machine in the beginning, but after one or two years the Soviet Union balanced its

disadvantages originating from the asymmetry. In the NATO bombing of Yugoslavia in

1999, the Serbians, with a primitive anti-aircraft system as compared to that of the

Alliance, found a remedy in the fight with the enemy using their advantages of headcount

and technology: they significantly degraded the efficiency of air attacks with scattering,

camouflage, and deception. Long-term asymmetry materializes much more rarely,

although some great powers in certain historical periods successfully kept their

superiority originating from positive asymmetry, but in the long run the balance moved

towards equalization most of the time. Strategic asymmetry can be induced intentionally,

or long-standing starting asymmetry may result from the relative situation of the

belligerents. Existing superiority in the baseline often doesn't guarantee success, for

example, the Viet Cong successfully implemented its guerrilla warfare based on

asymmetry against South Vietnam and the United States. Asymmetric threats are usually

extremely complex, therefore the counter steps must be driven by complex, agreed and

coordinated strategies. Diplomatic, economic, military and other type of actions must be

harmonized so that their interference leads in the direction of intensification.

Consequently, irregular, asymmetric warfare is a potential alternative for small countries

against an enemy superior in numbers and/or in technology. The possibilities of irregular

warfare can be exploited more effectively if these types of armed conflicts are led by

official soldiers. The biggest chance for the success of the irregular warfare is if the armies

are prepared for this type of strategy before armed conflict is initiated. As the analysis

showed, irregular warfare must be accepted as a strategy before the armed conflict. The

infrastructure to support it must be created. When organising the support it must be taken

into consideration that the course of the armed conflict might be significantly different

from the conventional one. For example: significant territorial losses may occur in a short

period of time, the aggressor might march into the territory of a small country without

armed conflict. The warfare becomes drawn-out, the civilians are exposed to increased

pressure.

To summarize it can be said that if a small state does not want to assure its security along

the four conventional defence strategies, it can be a logical choice to prepare its defence

concepts, and its army in peacetime for asymmetric warfare, instead of investing

significant power and resources into an army that will most likely not be able to intercept

the aggressor. That is to say, learning from history, it should not wait for the fall of its

army according to conventional principles, but tries to gain advantage by an initiative in

time.

65

According to Mao Zedong, guerrilla warfare can be divided into three phases. In the first

phase the organisation builds up, in the second, operations based on guerrilla warfare

begin, in the third phase comes the complete annihilation of the enemy. Mao considers

the support of the civilians as an underlying principle.

The asymmetry can be financial or psychological, although these are in relation to each

other. Financial asymmetry often results in psychological as well. The belligerents

implementing manipulative techniques aiming at psychological asymmetry could achieve

significant success. (Mongolians, Aztecs, Zulus, etc.) The most effective is the

combination of the two, although the psychological advantage can at many times be

ensured with less input.

3. Counter-insurgency operations In general, it can be said that at the outbreak of an insurgency, the power of the state

ceases to exist within the given territory, and hereby the control as well – even if it was

only symbolic earlier. The existing barely- (or non-) working administration, resulting

from the legitimacy of the state, in case of military intervention, at least there is someone

to turn to, somewhere to start from. At the outbreak of an insurgency, a complex

environment consisting of offences and other motivations is created, and disturbing them

causes other events at unexpected places at unexpected times. That happened in the

example of Fallujah as well after the Iraq Freedom operation in 2003.

The American experiences in the Iraqi war can be outlined with the following points:

- the major political aim was overthrowing the Saddam regime, and in addition

preventing the the members of the ruling regime from returning to power,

- the deployment of the weapons of mass destruction in the possession of the

dictatorship had to be prevented,

- the resistance of the Iraqi armed forces had to be broken by shock and decapitation

strikes,

- the military and political management capability of the Iraqi regime had to be

destroyed,

- the civil population had to be protected,

- the separation of the state government, the Ba'ath Party and the civilians had to be

achieved,

- the destruction of the oil facilities, the lightning up of the oil wells had to be

prevented, and hereby avoid a natural disaster.

4. The siege of Fallujah

The siege of Fallujah in Iraq which wrote itself into the history books as one of the most

the most infamous and serious uprising can be regarded as an example of asymmetric

warfare. Hereinafter its events, causes and more important characteristics will be

examined.

4.1. Fallujah

Fallujah is located in the middle of a Sunni triangle, some 70 kilometres away from the

capital, Baghdad. It is a typical Arab town with narrow alleys, short buildings, with

residential area and mosques on the North, industrial parks on the South. The motorway

(number 10) can be found near the town, and the Euphrates also flows here.

About the counter insurgency operations of the post Iraqi war times, it can be said that

the community perception of the society is more important than the efficiency of the

operation itself.

66

These long-drawn-out conflicts and insurgencies put a very large burden on democracies,

that examples in Fallujah as well the risks of the non-aligned operations and the necessity

of the long term planning.

Initially Fallujah was rated as a calm town, since the mayor elected after the Iraqi war

prevented the chaos and the looting. Only towards the end of the 'Iraq Freedom' operation,

on the 23rd April 2003, did soldiers enter the town with the 82nd Airborne Division,

occupying an elementary school. A few days later, they fired upon the crowd protesting

for the return of the local school, which resulted in 20-30 human fatalities and many

injuries. The US army justified its activity by alleging that they were returning fire on

rebels hiding in the crowd, but the evidence showed the opposite. (The US suffered no

casualties from the incident.)

Later a similar operation took place in front of the former Ba'ath Party headquarters, the

headquarters of the American forces in Fallujah. In May and June the attacks became

more severe, and the replacement division 101 was strengthened with the 2nd Brigade of

the 3rd Infantry Division (4-5 thousand people). Then the Americans launched Operation

Desert Scorpion Operation, which was primarily directed against the supporters of the

previous regime, to break down the armed resistance. It indicated the weakness of the

Americans that from the soldiers in Fallujah only a few hundred participated in the

operations; the high number of attacks carried out on motorbikes against the Americans,

explosions in mosques. For the rest of the year and in the beginning of 2004 the number

of attacks continuously increased, therefore several forward operating bases were set up

around Fallujah with the aim of decreasing the losses. On the whole it can be said that the

attack claiming the highest number of human fatalities took part in Fallujah. The strategy

of the coalition, the lightning raids made the relationship between the locals and the troops

of the coalitions even worse. Because of the implemented methods the civilians started to

consider the soldiers of the coalition forces as invaders. In all these operations the general

military logics does not prevail, since in such cases, as we could see in Fallujah, the

civilians themselves are fighting, and the belligerents are not acting based on operational

principles, but aiming for the support of the civilians.

Information, and information superiority has key importance. Getting this superiority

seems impossible over the rebels hiding among the civilians, building upon their

sympathy but it is possible to overcome them with reasoned, consistent provisions aiming

at stable settlement. The aim of all insurgency is to win the support of the civilians,

namely the acceptance of the military presence, in whom the civilians should not see the

invader but the temporary helper. Media and mass communication plays an important

role in establishing information superiority.

In Fallujah, the series of operations became permanent. In April 2004, Operation Vigilant

Resolve took part, in which after several minor incidents the rebels raided contractors

ensuring a food cargo with fewer staff than required by the safety standards, attacking

them with grenades and automatic weapons, then hung two bodies out of the four upside

down over a bridge crossing the Euphrates River.

Photos of the event spread all around the world. This prompted the announcement of a

punitive expedition campaign in Fallujah for the termination of the insurgency, and

initially less violent methods were used, with a relatively small headcount and started the

liquidation of the insurgents with military force only on explicit command. On the 4th of

April, 2004 the marines closed all the roads to the city with barbed wire and tanks, built

camps for fleeing locals at the checkpoint, which were attacked by the rebels using

mortars.

67

As a response, an air strike followed, in course of which four buildings collapsed. And

they started to distribute flyers, in which they were asking for help of the civilians to

identify the participants in the attacks against the employees. On the radio, they promised

to eliminate anarchy and punishing the aggressors, since they broke the laws of Islam. On

the next day the marines and 505th Battalion of the Iraqi Civil Defense Corps started to

enter the town, and due to the resistance of the insurgents they launched another air strike.

Its inaccuracy claimed a huge number of human fatalities among the civilians. Only one

quarter of the town was successfully retaken, and the command given to attack was

withdrawn – the rapid withdrawal gave the impression of losing.

The coalition officially and unilaterally suspended the operation, fights sporadically

continued for weeks, but at the beginning of May the withdrawal of the American corps

from the town was announced. Then, after the silence before the storm, in November

2004 the New Dawn Operation was launched. Then the coalition forces invested the town,

and established checkpoints again, which closed the town to the outside world. It was

obvious that a serious attack was imminent, and as a result of it, a huge part of the civilian

population left Fallujah. The aims of the operation were primarily political, since to secure

the elections in the beginning of 2005, the forces of the insurgents had to be destroyed.

In this operation the coalition mainly played securing roles. On the 7th of November 2004

they occupied the hospital that played an important role during the previous events and

the bridges in its neighbourhood – towards further investment. They then turned the

electricity off in the whole town, and on the next day, following 12-hours of air strikes

and artillery bombardment preparation, the land campaign started. As a result of this,

based on the information provided by the coalition forces, by the 16th of November

resistance ceased to exist in Fallujah.

The intensity of the fights and the level of resistance can be seen well by the facts that in

terms of damages between March 2003 and February 2005 most Iraqi civilians died in

Fallujah, and more than half of its homes were destroyed.

Fallujah marks the location of the most infamous urban confrontations of the asymmetric

warfare form in military history. When the American and Iraqi forces started the siege of

the town, they exactly knew what and whom they were facing: the resolute insurgents had

been preparing for this battle for weeks. The town was full of buildings transformed into

bunkers, camouflaged fire position and ammunition depots.

The fight started with the occupation of two bridges and a hospital at Fallujah in the

November of 2004. At that time Iraqi Prime Minister Ayad Allawi had not given the

command to overrun the besieged centre of the Sunni insurgents, but skirmishes were

already going on. The biggest attack of the American army in the last 36 years was

imminent. The American marines entered Fallujah. Prime Minister Ayad Allawi gave

command for the attack, after ordering curfew in the town. Allawi ordered the Baghdad

International Airport closed down, and the borders of the country as well in several places.

The Americans attacked on the Western edges of the town, where they came under heavy

fire. The night before the attack marines occupied two strategically important bridges and

a hospital. The American marines investing the town under siege occupied the bridges

located in the Western edges of the town. One of the bridges was the location of the

lynching of the four American civilians in April. The American army besieged the town

considered to be the centre of the Sunni insurgents after the brutal murders for the first

time - unsuccessfully.

Jordanian terrorist leader Abu Musab al-Zarqawi, allied with the Al-Qaeda international

terrorist network, called on all Muslims to join the insurgency against the United States.

This manifesto was published on an Arab internet site frequently used by Muslim

extremists. The manifesto, published in the name of al-Zarqawi prompted the Muslims

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to jihad (holy war). According to its text, the Muslims were "suffering agonies" from their

enemies. The manifest on the internet encouraged them to stand up against their enemies

with all their strengths, because "it is just a question of time before victory comes".

It was the biggest battle in 36 years. Although the offensive had not yet started, the

American and Iraqi corps were only waiting for the command of Prime Minister Ayad

Allawi. Allawi did not command the attack, but he ordered curfew in the town.

The head of the government a few days earlier still talked about the restart of the attempt

for peaceful settlement, but according to the reports by the correspondents staying with

the besieging corps, the offensive was imminent. The American corps initially did not

enter the city centre, during their preparatory bombings and the occupation of the two

bridges, 12 Iraqi insurgents and two American marines lost their lives. The commanders

of the corps were expecting house to house fights in the densely populated areas, and

suicide attacks. Several experts compare the siege of Fallujah to the offensive against the

town of Hue in Vietnam in 1968. In the last huge siege of the American army, 142

American and several thousand Vietnamese soldiers lost their lives.

The insurgents also prepared for the siege of Fallujah. 300 suicide bombers were waiting

for the American attack. The insurgents tried to distract the attention of the besiegers by

attacks implemented in the other parts of the country. During the weekend, their attacks

claimed more than sixty fatalities altogether, in their attack in Hadita, west of Baghdad,

they executed 21 Iraqi policemen. Because of the wave of violence over the weekend and

the siege of Fallujah on Sunday, Ayad Allawi declared a state of emergency for 60 days

in the parts of the country primarily inhabited by Arabs.

In the times before the events of Fallujah developed, everyone was surprised by the rapid

collapse of Saddam's regime. Since the ruling Ba'ath party consisted of the Sunni Arabs

composing only the 20-25 % of the county's population, Iraq shook off the regime built

by them with unusual speed. This way, by April in the bigger cities - including Fallujah -

public order seemed to exist.

Because of the unrest spreading everywhere, such disorder was formed in the whole

country that, as a result of the chaos lasting for weeks, even that part of the civilians that

initially sympathised with them turned against the coalition. According to the plan of the

Americans, in the framework of the „de-Ba'athification programme”, the Coalition

Provisional Authority (CPA) was created to serve transitional administration duties, its

first two acts were to issue order of de-Ba'athification of Iraqi society, and formally

disbanded the Iraqi army.

This proved to be a serious mistake, since it made the state organisation become

impossible, and made several thousands of trained people unemployed, paying only a

very small amount of redundancy money. Later, with the forming of the Iraqi Governing

Council, long exiled Iraqi opposition members were invited, but the members of the

Council were not taken seriously by even the locals, therefore its efficiency was not

adequate.

In correlation with these events, in the August of 2003 started attacks on masse which

claimed more and more victims, and by October they reached 30-40 attacks a day. These

typically were significant in the Sunni Triangle, where initially criminals paid by the

unemployed former Ba'athists committed the attacks. In connection with these, the higher

political and military management did not listen to the information provided by the

intelligence service, and did not take steps to stop the insurgencies spreading in bigger

and bigger measure. According to military intelligence data, the number of insurgents had

already reached 12-16 thousand people by the beginning of 2014, who beyond that also

had widespread support. The motivation was coming from many sources, such as Iraqi

nationalism, Sunni disapproval caused by the Western occupation, Shia islamist and

69

Salafi radicals. All of these were so deeply present in Iraqi society that the insurgents had

their supporters in the government offices, aid organisations, the media and among the

Iraqis working for the coalition as well.

4.2 Six days in Fallujah – as a summary, or through the media's approach The most controversial confrontation of 2003 Iraq war was the siege of the town of

Fallujah. Previously it had been one of the most peaceful places in the country, where

looting and breaches of peace hardly occurred. But unfortunately it changed, when during

a demonstration American soldiers killed 17 unarmed civilians.

Later, after a couple of smaller but bloody atrocities, the radical citizens of Fallujah raided

a convoy carrying food, beat up and killed four of the staff, then their charred corpses

were dragged through the city streets before being hung over a bridge crossing the

Euphrates River. They also took photographs of the event, which they sent to renowned

newspapers, which caused a storm of indignation. Because of this, the American army

decided to teach a lesson to the ones responsible, blockading the town under siege with

the support of the Iraqi National Guard, but those responsible escaped on the eve of the

attack.

During the short intensive siege, 40 American soldiers died, while on the other side more

than 200 Iraqi soldiers lost their lives, but the worst was yet to come: although the

occupying forces allowed 70000 civilians to leave the town, at the same time they were

given that order that after sunset they were allowed to shoot at any adult males, whether

armed or not. However, the soldiers didn't observe the rules. Several cases were reported

when snipers shot innocent children, women and elderly citizens dead, and what is more,

they even closed down a hospital.

After a short ceasefire, the fights still continued for a long time, claiming many human

lives - especially on the Iraqi side. Despite all of this, after a large scale attack in

November of 2004, the Americans occupied the majority of the town, however

unfortunately during this attack they killed at least 800 civilians and 1200 rebels, and

destroyed the 60% of the infrastructure of the town.

Therefore the case of Fallujah can be regarded as an example of asymmetric warfare in

which the media and propaganda played a major role.

4.3 Fallujah in the hands of al-Qaeda In January 2014 it was announced once again that the Iraqi government had lost control

over Fallujah, and the town in its entirety was under the control of the fighters of the Al-

Qaeda international terrorist network – according to a high ranked informant. Based on

the information given by an unnamed informant, Fallujah in its entirety is under the

control of the jihadist group named The Islamic State of Iraq and the Levant (ISIL).

The districts surrounding the town are controlled by the Iraqi police. Many civilians and

armed people died in the fights between the extremist Sunni group allies with Al-Qaeda

and the government forces, and the various tribal militias allied with the army. The

extremist organisation gained control over numerous districts in another town in al-Anbar

province, Ramadi, as well.

Fights broke out in two Northern Iraqi towns after the authorities dismantled the tent camp

of the Sunnis protesting against the government in Ramadi. The government, giving into

the demands of the protesters, withdrew the army from the area, and following this the

armed fighters of Al-Qaeda overran several towns in al-Anbar province. Anti-government

demonstrations had already been going on for over a year in the majority Sunni Anbar

province that was considered as the hotbed of the dissatisfaction against Nouri al-Maliki,

the Shiite prime minister. The Sunnis, a minority in Iraq - who were in power during the

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reign of the late dictator Saddam Hussein - had been complaining for a long time that

after the American intervention the Shiite majority that took over the ruling of the country

had been treating them unfairly.

At the same time, the Sunni tribal leaders made it obvious that they condemned Al-Qaeda

that was representing itself as the protector of the Sunni, and they were ready to fight the

terror organization and its Iraqi cell. The army and the Sunni tribal militias fought

shoulder to shoulder against ISIL.

At the weekend, the Iraqi army deployed cannons and tanks around Fallujah, fallen to the

hand of the Al-Qaeda insurgents. They wanted to seize back the town, but first they gave

time to the locals, to the leaders of the town, to persuade the militants to leave themselves

before they mounted an offensive

The Iraqi fighters of the Al-Qaeda international terrorist network accumulated enough

military hardware in the occupied parts of the al-Anbar province in the Western part of

the country to capture all of Baghdad.

Iraqi deputy Prime Minister Adnan al-Assadi reported that the Iraqi army fought hard

against militias, armed to the teeth, to recapture the parts of the capital of al-Anbar

province, Ramadi, and from the East of it, Fallujah, occupied by the extremists.

According to Assadi's description, with the arms of those close to Al-Qaeda and other

extremist Sunni groups fighting against the authority of the government ruled by the

Shiite, even Baghdad could have been captured. The Iraqi government announced the

start of an extensive operation, the purpose of which was to to expel the allies of Al-

Qaeda from the aforementioned towns.

The Islamic State of Iraq and the Levant (ISIL) nested itself in Ramadi and Fallujah at

the beginning of the month, taking advantage of the chaos developing after the

confrontations between the security forces and the local Sunni tribal armed fighters.

The fighters of the ISIL introduced Islamic law in the areas controlled by them. In

Fallujah an Islamic court was established, and several formerly high ranked officials of

the legislature were kidnapped, amongst them a police officer and a few sheikhs as well

- reported local eyewitnesses and tribal leaders. Besides this, through the loudspeakers of

the mosques, ISIL called upon the civilians to join its fight against the Iraqi security

forces.

A local resident reported to the AFP French news agency that the insurgents introduced

strict regulations in several districts. For example they forbade women to go to markets,

and for men to wear Western clothes and shave their beards off.

The new operation announced by the Iraqi government, according to prime minister Nouri

al-Maliki, was supported by the majority of the international polity, except - as he put it

- "certain Satanic states". With this, among others, he referred to Saudi Arabia that he

accused recently with financing the Sunni terror organisation fighting in the area.

Meanwhile near Ramadi an Iraqi journalist lost his life, and another was seriously injured

after armed locals attacked a police patrol. The attack took part when the journalists were

heading to a new local police station together with the policemen to attend its opening

ceremony. Two policemen were also killed in the attack, and another two were injured.

For journalists, Iraq still belongs among the most dangerous countries in the world.

On the whole therefore it can be said that the militants took Fallujah under their control

again, and the government wanted to occupy the town back from the insurgents. This

confrontation is considered to be among the biggest ones since the United States

overthrew Saddam Hussein.

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References

[1] BELLAVIA David: House to house – An epic of urban warfare, 2009.

[2] BODORÓCZKI János: Gondolatok az aszimmetrikus hadviselés logisztikai

támogatásáról, Bolyai Szemle 2013. http://uni-nke.hu/downloads

/bsz/bszemle2013/1/08.pdf (letöltés ideje: 2014. május 20.)

[3] KEEGAN John: A hadviselés története, 2009.

[4] KISS Álmos Péter: Átvihetők-e az aszimmetrikus hadviselés tapasztalatai?

http://mhtt.eu/hadtudomany/2009/2009_elektronikus/2009_e_8.pdf (letöltés ideje:

2014. június 1.)

[5] KRAJNC Zoltán: Az aszimmetrikus hadviselés, fenyegetés alapkérdései

http://www.szrfk.hu/rtk/kulonszamok/2008_cikkek/Krajnc_Zoltan.pdf (letöltés

ideje: 2014. május 20.)

[6] PORKOLÁB Imre: Aszimmetrikus hadviselés, az ortodox és a gerilla hadikultúra

összecsapásai http://www.zmne.hu/dokisk/hadtud/Porkolab.pdf (letöltés ideje:

2014. május 17.)

[7] RESPERGER István, KISS Álmos Péter, SOMKUTI Bálint: Aszimmetrikus

hadviselés a modern korban, Zrínyi Kiadó, 2012.

[8] SOMKUTI Bálint: A 4. generációs hadviselés, Hadtudományi Szemle 2009.

http://uni-nke.hu/downloads/kutatas/folyoiratok/hadtudomanyi_szemle/szamok/

2009/ 2009_2/2009_2_hm_somkuti_balint_42_51.pdf (letöltés ideje: 2014. május

29.)

[9] Falludzsa az al-Kaidáé http://www.honvedelem.hu /cikk/

41775_Fallujah_az_al_kaidae (letöltés ideje: 2014. június 3.)

[10] Hat nap Falludzsában http://www.pcguru.hu/hirek/hat-nap-Fallujahban/11637

(letöltés ideje: 2014. május 20.)

[11] Megkezdődött Falludzsa ostroma http://index.hu/kulfold/flj6308/ (letöltés ideje:

2014. június 1.)

[12] Már iszlám jog van FalludzsaJo egyes részein

http://www.hir24.hu/kulfold/2014/01/20/mar-iszlam-jog-van-Fallujah-egyes-

reszein/ (letöltés ideje: 2014. június 6.)

[13] Tankok sorakoznak Falludzsánál http://www.origo.hu/nagyvilag/20140107-

tankok-sorakoznak-Fallujah-hataran.html (letöltés ideje: 2014. június 3.)

72

ECONOMIC WARFARE

HEAVY DAMAGE WITHOUT BLOODSHED

Harald PÖCHER

Abstract: The essay discusses economic warfare on the basis of the author’s definition. To

introduce the reader to this topic, the author gives some examples of economic warfare in history

for a better understanding of the deeper meaning of the term economic warfare. Based on the

introductory information, the paper lists and explains the methods and weapons used in economic

warfare in present at a glance. Just like conventional wars, fought with military means, the

importance of leadership and the professional training of estimate of the situation also play an

important role for a successful warfare; therefore the author discusses in a separate chapter these

fundamental basic conditions and furthermore gives some advice what kind of leader is best

qualified to plan and lead operations in economic warfare as well as what kind of training

institutions are best suitable to train leaders for economic warfare. In the final chapter, the author

summarizes his ideas and gives some advices to public institution how to prepare the country best

possible for economic warfare.

Keywords: definition, methods and weapons, leadership and training-system of

economic warfare

Preliminary remarks

The main purpose of this essay is to present the results of the research work of the author

within the last decades on a few available pages. The author published his first ideas about

this topic in the Austrian Military Journals (ÖMZ-Österreichische Militärische

Zeitschrift) in 2005 for the first time and later after his habilitation at Hungarian Military

University in Budapest. A secondary purpose is to persuade policy-makers to deal with

the topic critically. To reach a very large readership, the author points out, that the essay

therefore may have some deficiencies considering the scientific structure. An additional

reason is to emphasize the importance of Military Universities which have a training

institute for economics to train and educate future leaders for economic warfare.

1. Introduction

Conflicts and wars are like laws of nature an integral part of humankind. During all

epochs of humankind these conflicts and wars were not only fought by well armed and

equipped soldiers but also with weapons created by economic scientists. It wasn’t

analyzed until now, which from both kinds of war were more successful in the long

history of humankind, but it is evident that both different kinds of warfare led to heavy

damage to the society. Because of the use of different weapons or weapon-systems, the

war with military weapons mostly goes hand in hand with bloodshed while the economic

warfare leads to heavy damage without bloodshed. This fact is one of the most important

differences between the two different systems of warfare.

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The following essay discusses “Economic Warfare” as a whole beginning with the

presentation of a definition, developed by the author as a result of his research work on

this topic within the last decade. Based on the definition the author explains three

interesting historic examples of economic warfare. The following chapter four - the

centrepiece of the essay - discusses the most important weapon systems of economic

warfare and their efficiency in the target area. In every kind of warfare important is the

education and training of leaders and the estimate of the situation. To underline the

importance of this fact, the author therefore discusses the estimate of the situation for

economic warfare and leadership in economic warfare in a separate chapter. In a

concluding chapter the author summarizes the results of his research work and gives some

advices how sovereign states should deal with economic warfare.

2. What does the misleading expression “Economic Warfare” stand for?

The war, Carl von Clausewitz once wrote, is an act of power to force an enemy (opponent)

fulfilling the own intention [1]. Wars which were fought with military methods were the

objects of many scientific surveys. Special kinds of wars like “economic warfare” haven’t

been extensively analyzed until now. Therefore it exist no detailed entire description what

economic warfare really means. Economic warfare in the sense of the survey will not

include the warfare against the enemies’ armament industry and important facilities for

the daily life during a war with military forces.

In the essay economic warfare will be discussed on the basis of the authors own definition:

“Economic Warfare is a warfare based on non- military methods and means with the

purpose to hit the opponent economy. At the end of the warfare the opponent’s economy

should have lost market shares and the own economy should be better off.”

As the definition shows no battle-tanks, fighter planes or submarines are the bearer of the

fighting in such a war and in normal case no high ranking generals or admirals are the

protagonists in the warfare and head of the war-rooms of economic warfare, except

generals or admirals studied economic science besides their higher military education.

3. Economic Warfare in the past-Selected classic examples

Human history is full of interesting examples of successful or less successful economic

warfare. For the purpose of the essay the author discusses three outstanding examples,

the biological warfare against Mongols in 14th century, the continental system of

Napoleon at the beginning of the 19th century and the Operation Bernhard of Third Reich

against Great Britain during World War Two.

Biological Warfare against Mongols

On the basis of a 14th century report, the Black Death is widely believed to have reached

Europe from the Crimea as a result of a biological warfare attack [2].

In 1343 the Mongols under their leader Janibeg besieged Caffa at the Crimea peninsula.

The siege of Caffa lasted until February 1344, when it was lifted after an Italian relief

force killed 15,000 Mongol troops and destroyed their siege machines. Janibeg renewed

the siege in 1345 but was again forced to lift it after a year, this time by an epidemic of

plague that devastated his forces. During the siege the Mongols hurled plague-infected

cadavers into the besieged Caffa, thereby transmitting the disease to the inhabitants and

subsequently the survivors of the siege spread the plague from Caffa to the Mediterranean

Basin.

Such a measurement of the besiegers was deadly because in the 14th-Century medical

standards were extremely low and antibiotics against plague were successfully used

firstly in the 20th-Century.

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Continental System of Napoleon

After Napoleon could not invade England with military methods he thought, that England

could be defeated by economic warfare. Great Britain was an important factor financing

alliance against Napoleon. In May 1806 Great Britain organized a naval blockade of

French and French-allied coasts. As a reaction Napoleon issued on 21 November 1806

the so-called Berlin decree which brought into effect an embargo against British trade [3].

The Berlin decree forbade every trade of European Countries allied with or dependent

upon France. The French measurement led to some damage of British economy between

1808 and 1811 by hiding the British exports which were falling between 25% and 55%

compared to pre-1806 level. The British economy was able to compensate the damages

otherwise encouraging British merchants to seek out new markets and to engage in

smuggling with continental Europe.

Within Europe on the one hand side some parts benefited from the embargo of British

economy, especially Belgium and Switzerland saw significantly increased profits due to

the lack of competition from British goods. But on the other hand side the embargo had

some negative effects on France itself. Shipbuilding and rope-making declined and with

few exports and a loss of profits, many industries were closed down.

It is only mentioned in passing that the famous Swedish economist Heckscher showed

how the economic policy of Napoleon against Great Britain failed.

Operation Bernhard

The result of the battle of Britain between summer and autumn 1940 taught the Third

Reich that it was not possible to conquer the British Isle with military means. Therefore

Germany organized an economic warfare against Great Britain using plans which were

prepared in 1939.

Britain was especially vulnerable because its effort was founded upon, and sustained by

an economy which was global. It consisted of its directly ruled colonial possessions; its

self-governing Commonwealth Dominions; and, the Empire’s commerce with neutral

powers around the globe. All of them were accepting (in exchange for goods and

services); and holding British Pounds Sterling, in their currency reserves for transaction

with; and within the Empire. Confidence in the integrity of the Pounds as a world wide

excepted currency, was essential to sustaining the vitality of the Empire, and the war

effort. It is evident flooding the British economy with a large amount of forged bank-

notes it is able to shake the foundations of the monetary system of Great Britain’s

economy and to restore the British economy into the age of barter economy.

The operation Bernhard [4] was named after the German SS Major Bernhard Krüger who

was responsible to organize the printing of the forged bank-notes. The operation consisted

of production of forged bank-notes and the infiltration of the 5, 10, 20 and 50 bank-notes

into the British Economy to destabilize the Economy. The initial plan was to drop the

bank-notes from aircraft on the assumption that while some honest people would hand

them in most people would keep the notes, in practice this plan was not put into effect

because the German Luftwaffe had not enough planes to deliver the forgeries, and

therefore the operation was placed into the hands of SS foreign intelligence.

The production of the forged bank-notes were organized in the concentration camp of

Sachsenhausen (35 km north of Berlin) employing more than 142 skilful prisoners for the

production of the appropriate rag-based paper with the correct watermark and the

engraving of the printing plates. In April 1945 the printing press had produced nearly 9

million bank-notes with the total value of 134,610,810 (today worth 3 billion Pounds).

The forged bank-notes are considered the most perfect counterfeits ever produced. The

75

Bank of England detected the existence of the notes in 1943, and declared them “the most

dangerous ever seen”.

After getting knowledge about the existence of forged bank-notes the Bank of England

initiated defence measurements which were able to contain the damage caused by forged

bank-notes.

The German operation has been dramatised in books, the BBC comedy-drama miniseries

Private Schulz and a 2007 Oscar-winning Austrian film, The Counterfeiters (Die

Fälscher).

The operation was not successful because it started too late. Therefore most of the notes

produced ended up at the bottom of Lake Toplitz of Austrian province Styria. It cannot

be completely excluded, that certain forged bank-notes could have directly went into the

pockets of former bigwig NAZI who were able to flee to safe countries, which have

decided not to pursue NAZIS, to finance a relatively trouble-free life after the end of the

World War Two.

4. How to fight an economic war successfully?

Just like conventional wars which were fought with military weapons, an economic

warfare had to be planned in detail and leaders of this type of war had to be best possible

trained and educated. While the core element of the planning process is the situation

assessment the most important parts of training and education are higher military

leadership training and studies of economics at a university.

4.1 Methods and weapons of Economic Warfare

As I mentioned above, economic warfare is as old as humankind. While in the early days

of economic warfare the methods and weapons were simple, they became more and more

sophisticated within the course of history. Due to its practical results, we can distinguish

between different groups of methods and weapons. For the purpose of the essay we will

distinguish between, fiscal, monetary, trading, espionage methods, head hunting and

biological warfare and the use of goal-oriented information as a weapon.

4.1.1 Fiscal methods and weapons

In the eyes of Europeans, the production, marketing and sale Airbus passenger liner is a

success story which is based on an economic warfare between the European aircraft

industry and the aircraft industry of the USA, especially Boeing the worldwide leading

commercial aircraft produces until the foundation of Airbus-Industries.

Thought it costs billions of US-Dollar to design and engineer a new airliner in detail -

money that aircraft producers must borrow up in front, and pay interest on every day

during the several years that pass from the start of design to the first sale of a complete

aircraft - Airbus-Industries is virtually exempt from such financial agonies, because it

was subsidised in the past with millions of Euro by the Airbus owning countries, i.e. the

development of the first model of Airbus which was launch in May 1969, the A300, was

subsidies with 800 million US-Dollar and the development of one of the modern plans,

the A330 and A340 family, was subsidised with 4.5 billion US-Dollar by the governments.

Due to best conditions for the granted loans, Airbus-Industries were able to calculate a

lower price than the most important competitor Boeing [5].

Boeing stayed not inactive and hit back during a public tender of the Ministry of Defence

of USA (Pentagon) for new tanker aircraft. In the first round of the tender, Airbus-

Industries offered with its strategic partner Northrop-Grumman, a large US-based defence

armament producer, a tanker plane granting good conditions to the Pentagon, but in the

final period of the tender Northrop-Grumman dissolved the strategic partnership and left

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Airbus-Industries alone. In the final end and after the last best offer process in the tender

Boeing received order worth 52 billion US-Dollar.

As we showed above, fiscal policy is an important weapon to improve competiveness of

the own economy. With the purposeful use of taxes, contributions, customs duties states

can thereby strengthen their own economies competiveness.

4.1.2 Monetary methods and weapons

The current situation in Russia shows us how vulnerable a currency really is. Due to the

limited space for the essay, it is not possible to tell the true story about the dubious

monetary measurement fired by some think tanks against the Russian Rouble and which

happened parallel to the open asymmetric military conflict in Eastern Ukraine.

In principle, monetary measurement can be used both as defensive or offensive weapons.

Important is the devaluation of the own currency to reduce the price of own exports. Also

important is money laundry to legalize earnings. With the legalized money further

economic warfare can be financed.

Another weapon is stock exchange speculation. With this weapon share prices could be

devaluated and as a result enterprises could loose market shares.

4.1.3 Trade related methods and weapons

Trade is an important factor in economic activity. Trade makes every country better off.

Trade can be steered by using exchange rates as key elements of control the stream of

goods and services across borders. To stimulate exports or imports, a country can use

depreciation or a appreciation of a currency as a measurement.

Another successful weapon in trade is embargo. The word “Embargo” comes from

Spanish and it means “Distraint”. Embargo is the complete prohibition of commerce and

trade with a particular country or group of countries. In nearer past, embargoes were

imposed on Cuba by the USA, and, in the special case of arms trade, USA imposed

embargoes to Peoples Republic of China. The effects of embargoes could be widespread

and efficient for the own economy, but some scientist voiced concerns against embargoes

because of negative effects on the own economy.

4.1.4 Espionage methods and weapons

Espionage was and is an important factor in warfare. Political and military leaders need

all available information to judge the current situation. Therefore they normally use all

available human and non human resources to get all necessary information about the

enemy’s position, economy and so on. Espionage is in the chain of information collecting

the practice obtaining secrets from rivals or enemies for military, political, or economic

advantage. It is usually thought of as part of an organized effort.

During the cold war intensive espionage between the NATO and Warsaw Pact had taken

place, but recently, espionage agencies have targeted the illegal drug trade and those

considered terrorists. Besides these targets espionage daily happen the so-called industrial

espionage conducted for commercial purpose. Countries and most large corporations

spend considerable amount on espionage of opponent enterprises and on precautions to

protect against more cloak-and dagger varieties.

Modern warfare of the 21th Century is characterized by intensive use of electronic and

communication technology. Network centric warfare is one of the most modern words in

modern military discussions. The use of new technology allows a more efficient

reconnaissance, deception and security measurements. In the economic warfare receiving

and veiling of information has got a vigorous importance.

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4.1.5 Head Hunting

Today among economists it is widely accepted, that investment in education and human

capital is one of the most important factors to achieve economic progress. For the further

development of a developed country it is vital to have excellent research and development

capacities at one’s disposal. Developed countries head-hunt the most qualified scientists

to make use of their research results and thereby strengthen their own economy.

In relation to head-hunting exist many examples in the past. Imagine the large emigrations

waves to the United States of America. During these waves many excellent European

scientist left Europe to make further research work in USA. As a result of all these

research works, the USA earned a lot of money. In a critical accounting estimate Europe

had the high costs for educating all these emigrating scientists and the USA earned a lot

off money.

4.1.6 Biological economic warfare

Biological economic warfare is a special case of biological warfare and a modern

biological economic war is different from ancient time biological economic war due to

the rapid changing standard of medical treatment of victims of biological warfare.

Biological economic warfare includes elements of uncertainty because it is not possible

to exclude all neutral or friendly people from the attack, i.e. during an attack against a

production facility with influenza-virus to bring a production to a standstill the virus can

also infect other people who are not employed in the attacked facility.

4.1.7 Information as a main weapon-system

An interview with the current director of ècole de guerre économique in Paris, Christian

Harbulot, published in the German newspaper “Der Spiegel” on April 20, 2006 makes

one sit up and takes notice: In the interview he clearly stated, that the European Unions

acts like a “headless chicken “, because in respect of economic warfare the European

Countries are total beginners and all the states have no ideas what concentrated effects in

information as a weapon lie and he explained from his own experience that within a

successful economic warfare the information-management plays a decisive role. The

economic warfare with the weapon “information” is warfare in real time, i.e. if a

competing company launched falsehood about a product of a competitor it is necessary

that the competitor had weapons for retaliation in his arsenal.

4.2 Types and organization of economic warfare

Modern military science identified different kinds of wars fought with military means. In

principle we can differentiate between nuclear, conventional, civil and asymmetric

warfare. The most interesting appearance of military warfare is the asymmetric warfare

which can be characterized as a conflict between two or more opponents of drastically

different levels of military capabilities or size. An economic warfare classified using

similar characteristic as military warfare. Categorically we can differentiate between a

conventional economic warfare and an asymmetric economic warfare. Conventional

economic warfare is an economic war between two or more countries. Such an economic

war is planned and fought by official authorities of the involved countries. An asymmetric

economic warfare is similar to military

Fought between opponents of different levels of capabilities, i.e. between an official

authority of a country and a private enterprise or between two or more private enterprises.

As a result of analyzing the situation of all the independent states in the world, we can

summarize, that only a few of the 194 independent states recently fought wars, but all of

them established a Ministry of Defence. None of them maintains a Ministry of Economic

Warfare. Merely the great powers have installed special governmental institutions to

collect information, which are useful for managing the economic warfare to impose the

78

nation’s economic interests on other nations. A planning process of economic warfare is

not the responsibility of a government alone it could also be made by enterprises.

Successful leaders in the economic warfare normally act in the same way as military

leaders do. Therefore in some parts the education of leadership and the training of leaders

could be the same.

4.3 Estimate of the situation, leadership and training system

After discussing economic warfare in general we had to answer questions like what are

the main responsibilities of planers or who are the leaders of the economic warfare and

what role should career officer play in this warfare?

Today, it is state of the art in military training of military leaders to teach the estimate

process. The estimate process had its origins in the Prussian Army’s attempt in the early

1800ies to develop a systematic and logical approach to the solution of military problems.

In economic warfare the estimate of the situation also plays an important role and

therefore had to be trained carefully similar to the training programs of military education

institutions. It is evident that on a careful estimate of the situation guarantees best possible

success in the following operation.

In the warfare with military means the success of military leaders depend on the use of a

balanced combination of talent and the successful use of military knowledge trained at

military universities. In the economic warfare the success also is the result from well-

based use of knowledge about the influence of the taken measures on the economic

process and the talent for analyzing economic interrelationships trained at universities.

The complex requirements for leaders of economic warfare more or less require an all-

in-one solution of education and training suitable for all purpose. The best possible

preparation to achieve well educated and trained leaders for economic warfare could be

taken place in military universities which are not only teaching the military core subjects

like assessment of situation, issue of orders, leadership and control but also economics as

a science discipline.

Looking around in the world we can find a shining example for an educational institution

for economic warfare. In 1997 General Jean Pichot Duclos founded the Ècole de Guerre

Èconomique (www.ege.fr) in Paris. The current director of école de guerre économique

is Christian Harbulot. Since its founding, the école de guerre économique has been

educating students to learn all the necessary knowledge to fight an operation in an

economic war successfully. It is worthwhile looking at the training curriculum presented

at the homepage mentioned above to gain an impression what will be thought at école de

guerre économique.

5. Prospects

For a long time power and influence of states has been based not only on military power

but also on economic strength. With their economic policy, states attempt to guarantee

the best possible standard of living for their population. These could only be achieved by

conquering desirable roles in the world economy and by further protection against attacks

from opponents. For this reason states have vital interests to strengthen their economies.

A strengthening of the economy could be achieved by organizing the national economy

in the best possible way and by organizing an economic warfare which is fought with the

purpose to hit the opponent economy but doesn’t destroy the opponent’s economy

completely.

Every country is been well advised to establish academic educational training centres

which are able to teach leadership and economics for an economic warfare.

http://www.ege.fr/

79

References

The available literature is full of books and papers about this topic, which shows the

importance of Economic Warfare for Geo-Economics in a globalized world. The author

published his first result on this topic in “Österreichische Militärische Zeitschrift (ÖMZ)

4/2005 and after his habilitation at former Military University in Budapest in

Hadtudományi szemle 2009.

[1] see Carl Philipp Gottlieb von Clausewitz: Vom Kriege (Band 1.3), Ferdinand

Dümmler, Berlin 1832, Buch I, Kapitel 1, Abschnitt 2

[2] see Wheelie M.: Biological Warfare at the 1346 Siege of Caffa, in Historical

Review, Volume 8, Number 9, September 2002

(wwwnc.cdc.gov/eid/article/8/9/01-0536_article) (retrieved 5 March 2015)

[3] see www.historyhome.co.uk/c-eight/france/consys.htm (retrieved 5 March 2015)

[4] see www.jewishvirtuallibrary.org/jsource/Holocaust/operationbernhard.html

[5] see Boeing Wins Contract to Build Air Force Tankers, in The New York Times,

February 24, 2011

80

EFFECTIVENESS, EFFICIENCY AND PROMPTNESS OF CLAIMS

HANDLING PROCESS IN THE NIGERIAN INSURANCE

INDUSTRY

Tajudeen Olalekan YUSUF and Sunday Stephen AJEMUNIGBOHUN

Abstract: This study was designed with the aim of investigating the effectiveness, efficiency and

promptness of claims handling process within the Nigerian insurance industry. To this end, the

researchers have been able to assess the effectiveness and efficiency of claims handling process

and thus, examine its promptness in relation to the organizational productivity of insurance

companies in Nigeria. Claims handling procedures should be promptly managed to avoid

deficiency in organization’s operational objectives, and lastly, Government should ammonize

their resources and technical knowhow with the Nigerian insurance industry in ensuring that

insurance claims are well designed to curtail fraudulent claims experienced in the past.

Keywords: Claims handling process, effectiveness, efficiency, promptness,

insurance industry, Nigeria

1. Introduction

Oftentimes, loss situations awake the minds of the insuring public towards their insurer,

as many consumers pay little attention to their insurance coverage until they have a loss.

Claims, being the heartbeat of insurance, are the most critical contact the insuring public

has with the industry and thus, critical moment of truth that shapes a customer’s overall

perception of their insurer (Crawford, 2007). Singh (2007) noted that claims are the

defining moment in the customer relationship for insurance firms, with a firm’s success

often defined by one factor: the customer’s experience around claims.

A claim is a demand made by the insured person to the insurer for the payment of benefits

under a policy (Asokere & Nwankwo, 2010). However, to reduce the cost of claims and

deliver on a value-added brand promise to customers, non-life insurers are focusing on

enhancing efficiency and effectiveness in their claims function. Claims processing is the

gateway to the customer that will drive improvement in the insurers’ customer

acquisition, retention, enterprise business intelligence for product development insight

sand profitability for the next several years (Capgemini, 2011a). The speed, accuracy and

effectiveness of claims processing is also paramount for controlling costs, managing risks

and meeting portfolio underwriting expectations (IBM, 2011).

The task of handling claims process has been challenging. However, modernizing the

claims process for efficiency, effectiveness and flexibility has been being daunting task,

due to the fact that it is a mission-critical function that touches all parts of the

organization, affecting competitive positioning, customer service, fraud management,

risk exposure, cost control, and IT infrastructure (TIBCO, 2011). However, Singh (2012)

points at certain inefficiencies that are driving up claims costs and adversely affecting

customers’ claims experience. These inefficiencies include: aging technology, increasing

process complexity, and a rising number of fraudulent claims. Previous attempts to

improve the process have typically been limited to expedite a series of inefficient and

81

disconnected processes or of reducing manual steps. Efficiency is the ability to minimize

the use of resources in achieving organizational objectives (Khan et al., 2012).

Effectiveness, on the other hand, is said to be the extent to which stated objectives are

met- the policy achieves what it intended to achieve (Productive Commission, 2013).

Ilona and Evelina (2013) added that excellent organizational efficiency could improve

entities performance in terms of management, productivity, quality and profitability.

Zheng et al. (2010) are of the opinion that effectiveness determines the policy objectives

of the organization or the degree to which an organization realizes its own goals.

Claims handling service is being said to be the basis on which an insurance company is

ultimately judge by clients and the key issue affecting the reputation of the insurer.

However, the payment of legitimate claims represents the delivery of the promise at the

heart of the insurance contract; which, indeed, for many insurance companies, excellent

claims handling service is considered to be a differentiator that distinguished them from

the competition (AIRMIC, 2009). An earlier submission, according to Organization for

Economic Co-operation and Development (2014), opined that good practice for insurance

claim management involves: claims reporting; receipt of claims by the company; claims

files and procedures; fraud detection and prevention; claims assessment; claim

processing; timely claim processing, complaints and dispute settlement; and supervision

of claims-related services.

The way an insurer handles a claim often determines to a large extent the insured’s

opinion of and loyalty to the insurer. However, with claims being the largest single cost

item for insurers, controlling claims expenses through a streamlined process can have a

dramatically positive bottom-line impact while providing new and unique differentiating

flexibility in claims processing, which enables the company to innovate and react quickly

to unpredictable events and changes in the competitive landscape (TIBCO, 2011).

Different claims managers and administrators within the Nigerian insurance industry had

proven that claims procedural processes are being followed and timely responded to.

Previous studies such as Michael (2008); Rose (2013) Yusuf & Dansu (2014) adduced to

the fact that the way an insurance company manages the claims process is fundamental

to its profitability and long-term sustainability and thus, posited that good claim

management must be proactively conducted in recognizing and paying legitimate claims;

and assessing accurately the reserve associated with each claim.

The core objective of this study is to examine the effectiveness, efficiency and promptness

of claims handling process in the Nigerian Insurance Industry. Other objectives include:

ascertaining the claims handling activities; investigating the roles of claims management

team in designing strategies for fraud detection and prevention; and assessing claims

handling procedures in meeting the expectations of various customers.

2. Research questions and hypotheses

For the purpose of this study, the following relevant research questions were set:

i. Are effective and efficient claims handling activities significant in claims

management operations?

ii. Does promptness in claims handling process essential for fraud detection and

prevention?

iii. Of what significant importance are claims handling processes in meeting

customers’ expectations in the Nigerian Insurance Industry?

82

To provide answers to the questions highlighted above, the following testable

hypothetical statements were considered:

i. Ho: Managing claims effectively and efficiently will not significantly affect

operational process in claims management

ii. Ho: Promptness in claims handling processes does not essentially assist in fraud

detection and prevention

3. Conceptual and empirical framework A claim, according to DiNapoli (2013), is basically a demand presented for the payment

of money due for goods that have been delivered or services that have been provided.

Vaughan and Vaughan (2008) define a claim as a notification to an insurance company

that payment of an amount is due under the terms of a policy. An insurance claim,

therefore, is a demand by a person or an organization seeking to recover from an insurer

for a loss that an insurance policy might cover (Brooks et al., 2005). Michael (2008)

opines that insurance claims range from straightforward domestic building and contents

claims that are settled within days of notification to complex bodily injury claims that

remain open for many years.

However, a claim on the policy is thus demand on the insurer to fulfill its part of the

promise, committed to while writing the contract with the insured (Krishnan, 2010). A

claim is the defining moment in the relationship between an insurer and its customer

(Francis & Butler, 2010). Singh (2012) thus opines that retaining and growing market

share and improving customer acquisition and retention rates, insurers are focused on

enhancing customers’ claims experience. Similarly, insurers can transform the claims

processing by leveraging modern claims systems that are integrated with robust business

intelligence, document and content management systems which will enhance claims

processing efficiency and effectiveness.

According to Low (2000), efficiency measures relationship between inputs and outputs

or how successfully the inputs have been transformed into outputs. Efficiency is said to

focus on the input-output relationship, as opposed to output and outcomes; and that high

efficiency would be exemplified by the delivery of a large number for given inputs (Scott

et al., 2008). Pinprayong and Siengthai (2012) had noted a difference between business

efficiency and organizational efficiency; while business efficiency reveals the

performance of input and output ratio, organizational efficiency reflects the improvement

of internal processes of the organization such as organizational structure, culture and

community. Ilona and Evelina (2013) argued that effectiveness oriented companies are

concerned with output, sales, quality, creation of value added, innovation, cost reduction,

and thus, must measure the degree to which a business achieves its goals or the way

outputs interact with the economic and social environment. Capgemini (2011a) opined

that highly effective claims practices can be a key contributor to a differentiated customer

experience that strengthens customer loyalty and attract new customers, which is

especially valuable in a market with little or no growth.

Excellence in claims handling is being a competitive edge for an insurance company and

it is a service that clients greatly value. Similarly, key components that must be in place

in order to deliver excellence in insurance claims handling, according to AIRMIC (2009),

were noted as: culture and philosophy, communication, people, infrastructure, claims

procedures, data management, operations, and monitoring and review. Brooks et al.

(2005), more so, suggest some step-by-step claims handling activities to include:

acknowledging and assigning the claim, identifying the policy, contacting the insured or

the insured’s representative, investigating and documenting the claim, determining the

cause of loss and the loss amount, and concluding the claim. Meanwhile, claim efficiency

83

and effectiveness, according to Capgemini (2011b), had been noted to be core benefits

for claims transformation, which include: claim handling and administration; allocated

loss adjustment expense; indemnity exposure; and total cost of ownership.

The Productivity Commission (2002) as cited in Yusuf and Dansu (2014) suggest a good

claim management embraces: proactive in recognizing and paying legitimate claims;

assessing accurately the reserve associated with each claim; reporting regularly;

minimizing unnecessary costs; avoiding protracted legal disputation; dealing with

claimants courteously; and whatever possible, handling claims expeditiously. Michael

(2008) stated that the key elements of a modern claim management system that can

process all claim types should include a case management component along with the

ability to calculate and process complex reoccurring payments. Therefore, to significantly

improve claims management and swiftly adapt to changing situations, insurers must make

more profound infrastructure changes that align claims processing with corporate

objectives for customer service, operational cost and risk management (TIBCO, 2011).

Then, to reduce the cost of claims and deliver on a value-added brand promise to

customers, insurers must focus on enhancing efficiency and effectiveness in their claims

function (Singh, 2012).

Esri (2012) pointed at five steps for optimizing the insurance claims process to involve

data organization, analysis and planning, mobility, management, and customer

engagement. Singh (2012) postulated that for insurers to achieve higher levels of

operational efficiency and better process effectiveness, they must look towards

implementing modern claims system or enhancing their existing claims systems,

leveraging advanced fraud detection technologies and innovating around self-service

through processing. Rose (2013) affirms that the way an insurance company manages the

claims process is fundamental to its profit and long-term sustainability. In this regard, six

core aspects of predictive insurance claims processing were noted to include: fraud

management, recovery optimization, settlement optimization, claims benchmarking,

activity optimization, and litigation management.

3.1 Claims Fraud Detection and Prevention

The earlier study of Derrig and Krauss (1994) proposed that the word ‘fraud’ is reserved

for criminal acts, probable beyond a reasonable doubt, that violate statutes, making the

willful act of obtaining money or value for an insurer under false pretense or material

misrepresentation of a crime. Kuria and Morange (2014) recorded fraud as an omission

or act intended to make one gain advantage unlawfully or dishonestly in dealings that can

be achieved by intentionally concealing, suppressing, misrepresenting or non-disclosure

of material fact pertinent to transactions or financial decision; misappropriating assets;

and abusing fiduciary responsibility or position of trust. According to Derrig (2002),

insurance fraud is seen as criminal act involving obtaining financial gain from insurer or

insured using misrepresentation of facts or false pretenses.

The Crime and Fraud Prevention Bureau (2000) as cited in Nicola et al. (2006) noted four

main types of fraud in motor insurance and their associated levels of occurrence as:

completely false claims (12%), deliberately misrepresenting the circumstance of the

claim (32%), inflated loss value (39%), claiming from multiple insurers (3%), with 14%

being attributable to other types of fraudulent claims. Yusuf (2010) presented four classes

of insurance fraud: internal fraud, intermediary fraud, policyholder fraud, and insurer

fraud. Viaene and Dedene (2004) stated that fraud affects all classes of insurance. The

most common insurance fraud which falls within the general or non-life insurance market

can be categorized into opportunistic fraud (Yusuf & Babalola, 2009).

84

4. Research method

The study employed a survey research design. The engagement of survey design was

because of its ability to predict behavior and assist in gathering identical information

concerning all cases in a sample (Bordens & Abott, 2002; Aldridge & Levine, 2001).

Data were collected through the field survey among insurance companies specifically

claims department. The main instrument employed in gathering data was structured

questionnaire. The structured questionnaire was employed due to its appropriateness to

survey research (Babbie, 2005). The questionnaire consisted of two parts (part A and B).

While part A consisted of personal data of respondents, part B contained statement related

to variables understudied. The views of respondents with respect to issues under study

was assisted via the completion of the questionnaire which was drawn using a Likert-type

scaling measurement of ‘strongly agree’, ‘agree’, ‘undecided’, ‘disagree’ and ‘strongly

disagree’.

Among 49 insurance companies in Nigeria, which comprise 10 composite insurers, 7 life

specialist companies and 32 non-life risks underwriting companies (Asinobi & Ojo,

2014), 33 companies were chosen consisted of 25 general insurance companies and 8 life

insurance companies; giving a 67% of the industry capacity. The sample population thus

was drawn from Lagos metropolis. The choice of Lagos, as an empirical ground for

research interest, was because it houses the largest number of insurance companies in

Nigeria (Nigerian Insurers Association, 2011). A total of 132 copies of the questionnaire

were sent out. 4 copies of the questionnaire were provided for claims managers and other

staff within the claims department of each surveyed company accompanied by a covering

letter. This study employed a judgmental sampling technique because it assists in

selecting unit(s) to be observed on the basis of the researchers’ knowledge of judgment

of the population, its element and aim of the study (Babbie, 2005). To ensure the genuine

of responses, regular telephone calls, electronic mailing, short visits and assistance from

other persons were options to enable proper filling and returning of the questionnaire.

Thus, collection of questionnaire was done through self-effort and other research

assistants. Eventually, among 121 copies retrieved from the various insurance companies,

107 were correctly completed and these were analyzed for the research (that is, a 81%

effective response rate).

On the reliability and validity of the study, a pilot study was conducted. The Cronbach

alpha on questionnaire administration is 0.7981; which shows that the alpha level is above

the required standard 0.70. On the validity of the research, both construct and content

validity were adopted. The construct validity was designed via measures of the variables

understudied from well-grounded literatures on other previous studies. The content

validity was designed by giving a set of draft questionnaire to few selected top

management staff in the claims department and some members of the academia in the

field of insurance. These professionals went through the instrument and came up with

formidable suggestions which assisted the researchers in presenting the items within the

linguistic understanding of the respondents.

5. RESULTS AND DISCUSSION Table 1: Responses to the testing of hypothesis 1

Alternatives Responses Percentage (%)

Strongly Agree 08 07.48

Agree 21 19.63

Undecided 14 13.08

Disagree 38 35.51

Strongly Disagree 26 24.30

Total 107 100

Sources: Survey Report, 2015

85

Source: Survey Report, 2015

The result above shows that the calculated value of 20.53 is greater than the p-value of

0.000 at 5% level of significance (i.e. Dcal= 20.53 > p=0.000). Therefore, in consonance

with the decision rule, the null hypothesis (Ho) that Managing claims effectively and

efficiently will not significantly affect operational process in claims management is

rejected (see Table 1 for respondents’ views). The researchers then conclude that

managing claims effectively and efficiently will significantly affect operational process

in claims management. This, therefore, confirms the earlier studies of Ashturkar (2014),

DiNapoli (2013), Dhanushkoti and Coates (2006), and OECD (2004), who noted that

proactive process at claims handling will provide customers with better resolution and

reducing the overall cost of their claims, and thus giving service provider(s) stake in

claims handling, insurer can obtain more commitment and better performance from them.

Capgemini (2011b) concurs that improved claims handling and administration can

effectively streamline and accelerate the claims management lifecycle.

Table 4: Responses to the testing of hypothesis 2 Alternatives Responses Percentage (%)

Strongly Agree 05 04.67

Agree 17 15.89

Undecided 11 10.28

Disagree 43 40.19

Strongly Disagree 31 28.87

Total 107 100

Sources: Survey Report, 2015

Table 2: One-Sample Statistics

107 2.5047 1.26173 .12198

effective and efficient

claims management and

operational process

N Mean Std. Deviation

Std. Error

Mean

Table 3: One-Sample Test

20.534 106 .000 2.50467 2.2628 2.7465

effective and efficient

claims management and

operational process

t df Sig. (2-tailed)

Mean

Difference Lower Upper

95% Confidence

Interval of the

Difference

Test Value = 0

Table 5: One-Sample Statistics

107 2.2710 1.17818 .11390

Promptnes in claims

handling process

and fraud detection

and prevention

N Mean Std. Deviation

Std. Error

Mean

86

Source: Survey Report, 2015

From the table above, the calculated value of 19.93 is greater than the p-value of 0.000 at

5% level of significance (i.e. Dcal= 19.93 > p=0.000). Therefore, in compliance with the

decision rule, the null hypothesis (Ho) that promptness in claims handling process does

not essentially assist in fraud detection and prevention is rejected (see Table 4 for

respondents’ views). The therefore indicates that promptness in claims handling

processes does essentially assist in fraud detection and prevention. Again, this result

supports the view of Accenture (2013), who noted that a thorough assessment of fraud

detection capabilities and the feasibility of an enhanced fraud detection process will help

optimize and improve the enterprise’s return on investment in fighting fraud. Also in

affirmation of the result is the study of Nicola et al. (2006), who noted that knowledge

limitations are likely to preclude the detection of some classes of fraudulent claims such

as financial exaggerations.

6. Conclusion, Recommendations and Future Research

This study has been able to confirm the effectiveness, efficiency and promptness of claims

handling process with the Nigerian insurance industry as a research ground for its

empirical assessment. The findings of the study have proven that effective and efficient

management of claims can further enhance the operational process in insurance business.

Rose (2013) affirms that the way an insurance company manages the claims process is

fundamental to its profit and long-term sustainability. Capgemini (2011a) opined that

highly effective claims practices can be a key contributor to a differentiated customer

experience that strengthens customer loyalty and attract new customers, which is

especially valuable in a market with little or no growth.

On recommendation, claims manager should put forward strategic plans to ensuring that

insurance claims complaint files are properly kept, monitored and handled for needs that

may warrant its usefulness in the future. Secondly, state-of-the-art training mechanism

should be put in place to enhance and improve the working pattern of a claim officer

which invariably might affect the organizational efficiency of insurance companies.

Claims handling procedures should be promptly managed to avoid deficiency in

organization’s operational objectives. More so, regulators and other stakeholders within

the industry should at regular interval intensify effort to ascertaining the claims handling

procedural methods in use by insurance companies in Nigeria; and lastly, Government

should ammonize their resources and technical knowhow with the Nigerian insurance

industry in ensuring that insurance claims are well designed to curtail fraudulent claims

experienced in the past.

This study suggests that future studies should focus efforts at gathering information from

the insuring populace as related to customers’ experience of insurance claims in Nigeria.

Additionally, the various claims handling modes should be understudied to ascertain their

Table 6: One-Sample Test

19.939 106 .000 2.27103 2.0452 2.4968

Promptnes in claims

handling process

and fraud detection

and prevention

t df Sig. (2-tailed)

Mean

Difference Lower Upper

95% Confidence

Interval of the

Difference

Test Value = 0

87

acceptance level among the insurance companies and the use to which they are put.

Research efforts could be drawn at designing insurance claims model for addressing the

lingering perceived customer image related to insurance fraud in Nigeria. Lastly, future

research could also attend to detecting and preventing insurance fraud within the Nigerian

insurance industry.

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The Authors´ Bibliographies

Sunday Stephen AJEMUNIGBOHUN, Department of Insurance, Faculty of

Management Sciences, Lagos State University, Ojo, Lagos, Nigeria.

Email: [email protected], Phone: +234(0)7055342854.

Dorel BADEA, “NicolaeBălcescu” Land Forces Academy, Sibiu, Romania.

Email: [email protected].

Ghiţă BÂRSAN, Prof., Ph.D., “NicolaeBălcescu” Land Forces Academy, Sibiu,

Romania.

E-mail: [email protected].

Tomáš BINAR, Eng., Ph.D., Department of Logistics, Faculty of Military Leadership,

University of Defence, Brno. He deals with the Transport and Handling Technology.

Email: [email protected], Phone: +420 973 443 678.

Vasile CĂRUŢAŞU, “NicolaeBălcescu” Land Forces Academy, Sibiu, Romania.


Harald GELL, Dr. scient. pth. MSc, MSD, MBA, Theresan Military Academy, Bachelor

Programme Military Leadership.

E-mail: [email protected], Phone: +43 664 622 2161.

Dumitru IANCU, “NicolaeBălcescu” Land Forces Academy, Sibiu, Romania


Florin ILIE, “NicolaeBălcescu” Land Forces Academy, Sibiu, Romania.


Vítězslav JAROŠ, Eng., Ph.D., Chief of Group, Department of Tactics, Faculty of

Military Leadership, University of Defence Brno. He deals with issues of the Tactics and

System of Command and Control of units, Military history and Theory of Military

Management.


Jaroslav KOMÁREK, Prof., Eng., CSc., Karel Englis College Brno. Author lectures

Management and Logistics and deals with System Dynamics and other simulation models

E-mail: [email protected], Phone: +420 737585694.

Csér ORSOLYA, Eng., Logistics Headquarters, Budapest, Hungary.


Harald PÖCHER, Dr. habil., MoD Austria, Director of Audit Division B, Research

fields: Austrian School of Economics, Defence Economics, Armament Industry, Security

and Defence Policy of Japan, Military History of Japan.


90

Stanislav ROLC, Assoc. Prof., Eng., Ph.D., Military Research Institute. He has been

working as a Head of the Section of Material Engineering and he deals with applied

research, development and testing advanced materials and technologies intended for

armour protection of military vehicles.


Jiří SUKÁČ, Eng., Ph.D., Department of Logistics, Faculty of Military Leadership,

University of Defence, Brno. He deals with the Transport and Handling Technology.


Andrzej ŚWIDERSKI, dr. hab., Eng., Ph.D., Military University of Technology .in

Warsaw, Faculty of logistic, deputy dean of scientific. He deals with issues of modelling

processes and transport systems, exploitation of means of transport, logistics and quality

management.


Tajudeen Olalekan YUSUF, Ph.D., Department of Actuarial Science and Insurance,

Faculty of Business Administration, University of Lagos, Nigeria.

Email: [email protected], Phone: +234(0)7042454596.

91

The Reviewers´ Bibliographies

Aleš DVOŘÁK, Eng., Ph.D., Military Research Institute. He has been working as a Head

of Testing Department within the Section of Material Engineering and he deals with

applied research, development and testing advanced materials and technologies intended

for armour protection of military vehicles.


Petra HORVATHOVÁ, Assoc. Prof., Eng., Ph.D., Department of Management, Faculty

of Economics, VŠB – Technical University of Ostrava.


Jan KLACEK, Eng., Ph.D., He deals with issues of financial.


Kazimierz KOWALSKI, Assoc. Prof., Eng., Ph.D., Military Academy of Land Forces,

Wroclaw, Poland. He deals with issues of maintainability of weapon systems, in its life

cycle in aspects of military logistical system management and total life cycle costs.


Robert KUTIL, Eng., Military Technical Institute Prague, branches Military technical

institute of Ground Forces in Vyškov, Special Measurements Test Room. He deals with

the conceptual questions of logistics aspects of the deployment, testing, operation and

storage of land-based military equipment and expenses in the framework of their life

cycle.


Jaromir MARES, PhD., Assoc. prof. Dipl Eng., Department of Logistics, Faculty of

Military Leadership, University of Defense in Brno. He has extensive experience in

military and civilian logistics. His specialties are operation of military vehicles and

evaluation of its effectiveness, focusing on technical, economic and environmental

aspects. Dealing with simulations of operation of military vehicles and drivers.

Email: [email protected], Phone: +420 973 443101.

Petr MUSIL, Eng., Ph.D., Department of Economy, Faculty of Military Leadership,

University of Defence. He deals with issues of planning, programming and budgeting

financial resources in public sector and application PPBFR in warfare.


Wojciech NYSZK, Assoc. Prof., Ph.D., Director Logistic, Institute Command and

Management Department, University of National Defence, Warsaw, Poland.

E-mail: [email protected], Phone: + 22 261 814154.

Svatopluk NEČAS, Ing., Ph.D., Department of Finance, Faculty of Economics and

Administration, Masaryk University, Brno. He deals with issues of insurance industry

and reinsurance.


https://email.unob.cz/owa/[email protected]/UrlBlockedError.aspx

92

Jakub ODEHNAL, Eng., Ph.D., Department of Economy, Faculty of Military

Leadership, University of Defence. He deals with issues of military expenditures and

financial ensuring defense.


Veronika PASTOROVÁ, Eng., Department of Economy, Faculty of Military

Leadership, University of Defence. She deals with examination of military economic

relations and consequences of economic provision of defence, peace and security.


Ivo PIKNER, Eng., Ph.D., Military Art Department, Faculty of Military Leadership. He

deals with character and tendencies in military affairs and trends and development of

military art. He is also dealing with the problems of use of armed forces in current and

future operations and their impact on conceptual papers development.


Milan PODHOREC, Dipl. Eng., Ph.D., head of group, Department of Military

Management and Tactics, Faculty of Economics and Management, University of Defence

Brno. He publishes about problems of intelligence activities and reconnaissance offensive

and inoffensive operation, security situation and her influence on army, actual

interrogation development of tactics and military management.


Árpád POHL, Assoc. Prof., PhD., Faculty of Military Science and Officer Training,

National University of Public Service, Budapest. He deals with issues of logistic support

of military operations.

Email: [email protected], Phone: 0036/1 432 9000.

Martin POP, Ing., University of Defence, Faculty of Military Leadership, Department

of Economy. He deals with the issues of World Economy, Economic Policy and

Economic Theory.

Email: [email protected]; Phone: +420 973 443 245.

Oldřich SOCHA, Eng., Doctrine Section, Training Command – Military Academy in

Vyskov.


Milan SOPÓCI, Prof., Eng., Ph.D., Department of Management, Armed Forces

Academy of General Milan Rastislav Stefanik, Liptovský Mikuláš, Slovakia. He deals

with issues of Management, Leadership and Crisis Management, margine of Air Defence.


Přemysl ŠTĚPÁNEK, Eng., 71rd mechanized battalion, Hranice. He deals with the

problems of the planning and decision-making process of commanders at the tactical

command and control level.


mailto:[email protected]

93

Eva ŠTĚPÁNKOVÁ, Eng., Ph.D., University of Defence in Brno, Faculty of Military

Leadership, Department of Management. She deals with strategic management, analytical

tools in management, managerial soft skills and environmental management.


Andrzej ŚWIDERSKI, dr. hab., Eng., Ph.D., Military University of Technology .in

Warsaw, Faculty of logistic, deputy dean of scientific. He deals with issues of modelling

processes and transport systems, exploitation of means of transport, logistics and quality

management.


Cezar VASILESCU, Dipl. Eng., Ph.D., Senior Lecturer, ROU AF Director, Defense

Resources Management (DRM) Postgraduate School of Studies Regional Department of

Defense Resources Management Studies, Brasov, Romania.


Economics and Management

Published by: University of Defence

Address: Kounicova Str. 65, 662 10 Brno

Czech Republic

+ 420 973 442 660

http://www.unob.cz/en/Eam/Pages/Eam_en.aspx

Number: 1/2015

Date of publication: 30th September 2015

Executive Editor: Eng. Vítězslav JAROŠ, Ph.D.

Printed by: University Press of University of Defence

Registration numbers: MK ČR E 17538

ISSN 1802-3975

© University of Defence

Univerzita obrany

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