Income Distribution and Public Spending Efficiency

Policymakers are pressured to introduce policies intended to make income distribution or consumption more equal. To identify the public spending differences among countries should be compared homogeneous country samples.  The income could be classified based on different scenarios such as past conditions, initial conditions, exceptional skills, and luck. 

The tax system can also influence the retirement age, the size of families, and individual effort, which are all features that directly impact income distribution. Public spending depends on spending power among the population the government steps in with taxes and related tax expenditures, and some relevant regulatory policies.

Public spending that injects income or spending power into the hands of individuals, through cash payment or direct support for spending that is important for poorer individuals (food stamps, subsidized housing, free child care for working mothers, 

Subsidized tariffs for low levels of consumption of public utilities, etc.) have a clear effect on income distribution. public spending can have indirect but still significant effects on the distribution of income in other ways that mainly improve productivity and opportunities to find a job disproportionately for the less well-off.

There is a relatively strong correlation between the change in income distribution as measured by the change in the income share of the poorest 40% of households and the change in public spending between 1960 and 2000. This has been changed due to income changes and spending such as more consideration on essentials due to the COVID-19 pandemic. Regulation quality and the size of the shadow economy appear to be less strongly correlated. 

Increasing the Tax Revenue in Sri Lanka Lesson from Malaysia

Current Tax System in Sri Lanka

Sri Lanka’s low tax-to-GDP ratio of approx. 12% indicates that the system is failing to gather sufficient tax revenue. The current tax system is unfair and inequitable as reflected in the direct to the indirect ratio of tax collection.WHT on interest, Capital Gains Tax, and Withholding tax on rent are the main features. There are main two types of taxes:

• Direct Taxes 
• Indirect Taxes

Lessons from Malaysia for increasing tax revenue in Sri Lanka 

1. Not Delivering potential revenue: 

• The tax base has not expanded with income and economic activity increases. Weak tax administration, tax evasion, and tax exemptions are to blame. 

Lesson: Malaysia's progressive income tax rate system saves time and makes tax calculations quicker and more efficient. This indicates that low-income earners pay a lower tax rate than those with a greater income.

Example: A qualified individual who is a knowledge worker residing in Iskandar Malaysia pays a 15% tax on income earned from employment and designation.

2. Complications of the tax system:

• Due to a lack of tax income, the government implemented several ad hoc taxes, with around 25 taxes.

Lesson:  Malaysia, despite having fewer taxes in place.

• In Malaysia, a short-term fiscal strategy was proposed for sustainability indicators as the role strengthening of long-term forecasts. 
• The tax only applied to a specific set of designated activities.
  

3. Dependency on indirect taxes:

• Depend on indirect taxes.
• It has been recommended to develop a balanced trade strategy with long-term returns.

Lesson: Malaysia mainly depends on direct taxes.

Examples  :

• In Malaysia, homeowners are now immune from certain stamp duty payments on specified property values.
• The expected higher revenue is largely contributed by Corporate Income Taxes, Petroleum Income taxes, and Individual Income Taxes.

Figure 1: Direct and Indirect tax revenue of Malaysia

Source: (Ahmed,2021)

4. Low efficiency on Value Added Tax (VAT):

• Sri Lanka has implemented a three-tier import tariff structure. 
• Step CESS as protectionist taxes an import substitution to increase the profitability of indigenous firms.

    Lesson: Proposal to broaden the Authorized Economic Operator System (AEO) facility status in Malaysia. 

Equation 1: Effective VAT rate

Source: (Borselli,2012)

• The government has suggested expanding the Authorized Economic Operator (AEO) facility.
• Include licensed logistics service providers to reduce the cost of doing business in more industries across the country.

Advantages of Authorized Economic Operator System:

• Effective risk management – at the entity level
• Improving trade facilitation
• Improving supply chain security
• Optimizing revenue collection

         

References

Ahmad, N., Taha, R., Endut, W.A. and Baatwah, S.R.A., 2021. The effects of house price and taxation on consumers’ burden: The case of Malaysia. Kasetsart Journal of Social Sciences, 42(2), pp.281-286.

Borselli, F., Chiri, S. and Romagnano, E., 2012. Patterns of reduced VAT rates in the European Union. International VAT monitor, (1).

Khan, K., Tareen, A.K., Aslam, M., Wang, R., Zhang, Y., Mahmood, A., Ouyang, Z., Zhang, H. and Guo, Z., 2020. Recent developments in emerging two-dimensional materials and their applications. Journal of Materials Chemistry C, 8(2), pp.387-440.

Bibliography 

Anojan, V., 2014. Tax Policy Changes and their Impact on Tax Revenue: A Case Study in Sri-Lanka‖. International Research Journal of Social Sciences, 3(10), pp.55-63.

Arunatilake, N., Inchauste, G. and Lustig, N., 2017. The Incidence of Taxes and Spending in Sri Lanka.

Amirthalingam, K., 2013. Importance and issues of taxation in sri lanka.

Gupta, P., 2015. Generating larger tax revenue in South Asia.

Ullah, N., 2016. The relationship of government revenue and government expenditure: A case study of Malaysia.

The way Scrum Methodology affect for retail to overcome traditional retailing manner

The first defenders of Scrum were galvanized by the empirical investigation and adaptation of the reaction loops, to reach complexity and risk. The Scrummage image focuses on the results of the real world, not speculation. The time is divided into two shorter periods, called "sprints", usually a week or a period. The good is not broken (correctly integrated and tested) in an extremely probable state (correctly integrated and tested) in an uncertain state of time. At the summit of each Sprint, stakeholders and team members met to see a gradual shortage of products and to implement their next steps (Singh, 2008).

The Class Manager obtains market data, comparable to those of the customer, competition policy, supplier policy, final status of the economy, and thus trends, such as the business methods of their own business, in order to understand the categories of products comparable to those of the class strategy and the stages of military science, so that the group's overall performance indicator can be reached (Schwaber, 1997). On a monthly, monthly, quarterly or per year basis, the current amount is revised to determine the effectiveness of the class strategy, the scientific steps and, therefore, the effectiveness of the manager. When checking the results obtained, the device will be put in place for the amount of the future reservation.

Cargills Foodcity as a trader found another candidate, the United Nations Agency actively participated in a process to reach its market share. In the classical model, the correct answer to their appearance is to reduce the costs of the position of the KVI, or perhaps also the category KVI-category, which can probably cause the loss of the purchase. The scrolling method allows the trader to quickly get rid of the competition (Ardakani,2018). During the sprint, we can find ourselves with other campaigns and reduce costs such as stocks, free distribution, gifts, offline activities, etc. quick consultations with completely different techniques, their results and the simplest practices on a daily basis.

References 

Singh, M., 2008, August. U-SCRUM: An agile methodology for promoting usability. In Agile 2008 Conference (pp. 555-560). IEEE.

Schwaber, K., 1997. Scrum development process. In Business object design and implementation (pp. 117-134). Springer, London.

Ardakani, M.R.M., Hashemi, S.M. and Razzazi, M., 2018. Adapting the scrum methodology for establishing the dynamic inter-organizational collaboration. Journal of Organizational Change Management.

Application of the Maslow's hierarchy of need theory for identify human behavior

Motivation is creating desire in employees’ heart to achieve organizational goals. It is psychology compried a five-tier model of human needs, often represented as hierarchical levels within a pyramid and needs lower down in the hierarchy must be satisfied before individuals can attend to needs higher up (Trigg,2004).

Figure 1: Maslow’s hierarchy of needs

Source: (Saul McLeod,2018)

In 1943 Abraham Maslow was developed a hierarchy to represent different stages of motivation. This can be used to define to describe the different stages potential clients want to reach through their needs. It also shows the hierarchy between the different kinds of needs (Jerome, 2013).

·       Physiological Need-These are basic needs which consist of the need for water, food, oxygen, cloth, warmth, sex and sleep. They are the strongest needs because that would come first in the person search for satisfaction.

·       Safety Need-When physiological needs are met the needs for security can become active. Due to the social structure adults have awareness of their security.

·       Love, affection and belonging Need-The next class of need for love and belonging can be emerging. The overcome feelings of loneliness are affected receiving love and sense of belonging.

·       Self Esteem-When first three classes of need are satisfied, self-esteem need can be dominant. Be stable, high level of self-respect, respect from others is the needs under self Esteem. The person feels self-confident by satisfying these needs.

·       Need for self-Actualization-Maslow has been described it as the person was “born to do”. However, it is not always clear what a person wants when there is a need for self-actualization.

Majority of researchers have been focused on self-actualization. Abrahm Maslow has been determined that everyone cannot achieved self-actualization need (Maslow,1995). Generally, needs are called as the basic human requirements. Then author can be argued that if everyone cannot achieve it how it can be concerned as a need? But in some circumstances self-actualization can be concerned as self- fulfillment. According to Hamm, (1969) Maslow has been concluded that highest level of self-actualization transcendent in human nature and it is an important contribution to study human behavior as well as motivation. Individual’s seek at different levels of development can be described through this theory.

When all the needs mentioned above are satisfied, then activation is necessary. Maslow describes himself as an activating human being and doing what a person was "born to do." "The musician must make music, the artist must paint, and the poet must write." These needs make themselves feel restless (Jerom,2013). A person feels tense, uptight, missing something, in short, restless. If a person is hungry, dangerous, not loved or accepted, or devoid of self-esteem, it is very easy to know which person is restless. However, it is not always clear what a person wants when there is a need for self-activation.

References

Trigg, A.B., 2004. Deriving the Engel curve: Pierre Bourdieu and the social critique of Maslow's hierarchy of needs. Review of Social Economy, 62(3), pp.393-406.

McLeod, S., 2018. Jean Piaget’s theory of cognitive development. Simply Psychology.

Maslow, A.H., Stephens, D.C., Heil, G. and Bennis, W., 1998. Maslow on management. New York: John Wiley.

Hamm, B.C. and Cundiff, E.W., 1969. Self-actualization and product perception. Journal of Marketing Research, 6(4), pp.470-472.

Jerome, N., 2013. Application of the Maslow’s hierarchy of need theory; impacts and implications on organizational culture, human resource and employee’s performance. International Journal of Business and Management Invention, 2(3), pp.39-45.

The way operational efficiencies can be improved to successfully meet business objectives using appropriate management and leadership approaches.

The ratio between an output which is gained from business and an input to run business operations is called as operational efficiencies (Paani,2009). Treacy and Fred Wiersma have been described that three generic competitive strategies, or value disciplines as operational excellence, customer intimacy and product leadership.

Figure 1: Competitive strategies for market leadership

Source: (Wiersma,1997)

Operational efficiencies can be improved through inventory control, quality control and supply chain management as below.

Inventory control

Inventory control is one of the most complex systems in all enterprises. It can determine what the company has, if the company is able to do so, and whether the funds and investments are on shelves that collect dust, or work for business. The management controls the inventory systems that determine how the enterprise's balance is managed (Gunasekaran,2003). The stock control of the company determines how the stock is to flow. Checks and controls whether an employee have products in his hand, or whether customers are obliged to wait for deposited items.

 Quality control

The fiscal element of quality is something more than a valid, reliable product that satisfies the customers. It is much greater than ensuring that the mark meets the expectations. The quality may involve the overall performance of all operations and guidelines of the undertaking as a whole. For example, it can be seen how employees can perceive the ability of the enterprise to provide and protect employees so that they can focus exclusively on customer satisfaction. The organization must be integrated in a way that is logistic, allowing for easier work flow and less distractions.

Supply Chain Management

The Supply Chain Management is the whole process from start to end, and shows how a customer receives the product or services of the enterprise (Sarkis,2005). This shall be included in the purchases and purchases, storage, transport and delivery. Supply Chain Management also includes the implementation of technologies to support staff in the process, the development and maintenance of professional relations with the suppliers and the relevant external employees of the process, which could create a significant malfunction in a company without thorough and sustainable coordination.

References

Saranga, H. and Phani, B.V., 2009. Determinants of operational efficiencies in the Indian pharmaceutical industry. International transactions in operational research, 16(1), pp.109-130.

Mandal, P. and Gunasekaran, A., 2003. Issues in implementing ERP: A case study. European Journal of Operational Research, 146(2), pp.274-283.

Baltuška, A., Wei, Z., Pshenichnikov, M.S. and Wiersma, D.A., 1997. Optical pulse compression to 5 fs at a 1-MHz repetition rate. Optics letters, 22(2), pp.102-104.

Hervani, A.A., Helms, M.M. and Sarkis, J., 2005. Performance measurement for green supply chain management. Benchmarking: An international journal, 12(4), pp.330-353.

The way change affects organizational strategy and leadership.

Something moves from one situation to another can be called as change. In business context change can be refer as on external changes such as technology, competitors and customers, political and social environment. It is also can be refer on internal changes such as re-engineering and re organization. Most of the authors are preferred to use the word transformation to describe change (Senge, 1999). Change is linked with creativity and innovation.

The way organizations create and sustain superior performance can be called as organizational strategy. Describe present organizational environment, industry conditions and Firm’s financial and competitive capabilities are represented and creating vision for future direction are done by organizational strategy. The major classified strategies are business level strategy, corporate level strategy, acquisition and restructuring strategies, international strategies and cooperative strategy. However strategic change is important in a situation of organizational change.

Strategy is simply not any preparation to a problem (Johnson, 1992). It is provided long term effect to organizations. Strategic decisions are increased through the application of managerial experience. They are improved external and internal sources of information. If employees able to identify various requirements of the organization then, organization can be easily understanding the reasons for applying strategic change. To gain contact to controlled markets and to maintain market stability strategic change should be implemented.

Organizations need to speed up the development of goods and services and wanted to maintain market leadership in order to face insecurity. Organizations are also wanted to share major resources and R&D facilities in order to create economies of scale.  Generally, companies are needed to recruit learning culture to develop new business techniques and capabilities. Strategic change should be employed to overcome the weaknesses and to gain strengths for long term sustainability.  

Organizations are agreed that effective management is one of the most important suppliers for the overall change and organizational change. Smart managers are those who have the experience and knowledge of the experience that enables them to effectively and effectively manage the tasks of daily living. Effective leadership is still needed to make effective changes. Culture is important, even if it concerns organizational change, and it can be included in the culture of secrecy, the culture of individualism, and the culture of silence (Cooper, 2006). Capacity management can manage and manage these issues. Competencies are the ability to manage knowledge and other skills and abilities.

Figure 1: Leadership competence for effective change management

Source: (Berglund, 2007)

Organizational change is not only important, it is also a requirement for time, and leadership can play a key role. The management 'Vision' and 'Innovative Approach' characteristics which can lead to organizations that are better able to manage organizational changes and may increase success.

References

Berglund, 2007. Risk Conception and risk management in corporate innovation. International Journal of Innovation Management, 11(04), p. 497–513 .

Cooper, B. &., 2006. The new world of work and organizations. Human Resource Management Review, 16(02), pp. 83-85.

Johnson, 1992. Comparison of the lipid regulation of yeast and rat CTP: phosphocholine cytidylyltransferase expressed in COS cells.. Biochem J 285 ( Pt 3), pp. 15-20.

Senge, 1999. Learning for a change. Fast Co, pp. 178-185.

Comparison between the effectiveness of different leadership styles in organizational contexts.

Different leadership styles stay alive in work environment. Organizational goals and the leadership style must be fit. Structure and the culture of an organization depends on leadership style (Tsai, 2011). There are four main leadership styles as follow.

Figure 1: Leadership styles

Source: (Expert Program Management, 2017)  

Author was paid attention on two organizational context and provided comparison between the effectiveness of bureaucratic leadership style and transactional leadership style  which are assumed through literature on certain organizational contexts as below.

Organization	Maliban Biscuit Manufactories Limited	Wijaya Products Pvt Ltd
Leadership style	Bureaucratic leadership style	Transactional leadership style
Urgency of a task or time pressure	Maliban Biscuit Manufactories Limited is a manufacturing company. With learning culture its’ easy to control employees using company procedure and company policies. Management takes all decisions according the company procedure.	Management is not being punishable but motivated employees with rewards and bonuses. That has been influence employees to improve upon performance.
Experience of team members	According to their matrix structure, company needs experienced employees to work under company procedures (Munaf, 2018). Management is given minimum decision-making authority to inexperienced employees.	Management is not used punishments for inexperienced employees. Company has made competition between both experienced and inexperienced employees for rewards. Because it motivates and encourages employees to stick with the overall system.
Level of danger and situation	Bureaucratic leadership style is effective to use in dangerous situations to control department s of the Maliban Biscuit Manufactories Limited. Its’ not impact badly to the company because all decisions are getting according to the company procedure.	Wijaya products Pvt Ltd is a task-oriented company (Ada Derana, 2019). In case transactional leadership style is effective for this company. It has helped to improve employee’s performance for dangerous situations. For an example when the government change quality policies, employees have knowledge how they work to increase the quality of products.
Advantages	Increase the performance of the employees themselves is affected increase company productivity. Easy to control overall company. Employees encourage company procedures	Under this leadership style employees have clear instructions and target. There is always being motivated employees in the company. Its impact to the success of Wijaya products Pvt Ltd.
Disadvantages	Some employees can be dissatisfied with the leadership. It can be made law morale in them. Maliban Biscuit Manufactories Limited can be impossible to be a leader in industry. Because company get decisions according to their old procedure.	These leadership style based on the decisions according to the system of the company. Sometimes management can be flexible.

Table 1: Comparison between the effectiveness of different leadership styles when applied organizational contexts.

(Author Developed)

References

Ada Derana, 2019. Wijaya Products walks away with not one, but two accolades at SLIM Nielsen Peoples’ Awards 2019. Ada Derana, 27 March.

Expert Programme Management, 2017. Leadership Styles. [Online] 

Available at: https://expertprogrammanagement.com/2017/02/leadership-styles/

[Accessed 29 October 2019].

Munaf, S., 2018. Marketing environment of Maliban, s.l.: academia.

Tsai, Y., 2011. Relationship between Organizational Culture, Leadership Behavior and Job Satisfaction. BMC Health Serv Res, 11(1), pp. 26-27.