introduction fiscal policy
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Introduction Fiscal Policy:-
The role of government in the Americaneconomyextends far beyond its activities as
a regulator of specific industries. The government also manages the overall pace of economicactivity, seeking to maintain high levels of employment and stable prices. It has two main tools
for achieving these objectives: fiscal policy, through which it determines the appropriate level of
taxesand spending; and monetary policy, through which it manages thesupplyof money. Much
of the history of economic policy in theUnited Statessince the Great Depression of the 1930s
has involved a continuing effort by the government to find a mix of fiscal and monetary policies
that will allow sustained growth and stable prices. That is no easy task, and there have been
notable failures along the way.
Defination:-
An efficient and reliable communication network is the lifeline of the nation and plays a
crucial role in socio-economic development and the integration of the country. For nearly a
century and half the Postal System has been the main component of the communication
infrastructure for the country. The Indian economy has moved on to a high economic growth
trajectory involving an average annual growth rate of about 6% over the last 16 years with
further acceleration in recent years. India Post requires a new policy framework because of the
emergence of several significant trends such as: liberalisation and globalisation; demographic
shift towards urbanisation leading to increasing internal and external migration requiring to be
serviced; monetisation of the economy especially the agricultural sector giving rise to a
corresponding demand for financial services by all sections of the population; and government
policy to increase funding for weaker section programs. Given the need for a strong
communication and financial infrastructure, India Post will meet both challenges and avail of the
opportunities presented by current market conditions.
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Motivation Policy:-
The Ismail Center at Purdue University is committed to maintaining the confidentiality,
integrity, and security of personal information about our members. The Ismail Center takes
their privacy practices seriously and wants you to know how they protect this information and
use it to serve you best.
When the Ismail Center handles your personally identifiable information they do so with
respect to your privacy. The Ismail staff may use your personally identifiable information to
develop and deliver health, exercise, and nutrition programs and services that can help you
maintain or improve your health. The Ismail Center may also use your personally identifiable
information to respond to inquiries from you. The Center may also use your information along
with other members to generate aggregate reports. Your personally identifiable information will
always be fully protected while it is used for reports to assess the effectiveness of our programs
or for research.
Ismail Center collects the following information from you:
Demographics: Name, date of birth, gender, home address, city, zip code, home and work
phone numbers, campus department and building, email address, and emergency contact
information. This information is used for registration and emergency purposes. Credit card information (optional) for payment purposes.
Medical Health Status questionnaire for the purpose of determining the necessity of
obtaining a physician clearance prior to starting the program or having a fitness
assessment.
Physician clearance information for approval to participate in the fitness assessment,
fitness center, and Lambert Fieldhouse.
Check-in software that records your visits to the Ismail Center used for report purposes.
How We Protect Your Physical and Online Information
Physical files with our members personally identifiable information are kept in a locked file
cabinet at the Ismail Center.
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All staff handling credit card transactions must complete and pass the BPCI Credit Card Security
Training. Credit card numbers are truncated on all receipts. Credit card numbers that are printed
on the registration form are disposed of by shredding the number prior to filing the registration
form.
The Ismail Center and their service providers restrict access to personally identifiable
information to those who require it to provide their services to you. Our service providers are:
BSDI, the developer of the Motivation web service, and MaximumASP, the data center
management company. Only certified Business Associates at BSDI have access to your
personally identifiable information and all are restricted by the terms of this privacy policy.
Neither BSDI nor MaximumASP make any use of personally identifiable information.
Privacy, security, and service in our online operations are an essential aspect of the service that
we provide. In addition to the personnel restrictions described above, Ismail Center employs the
following Internet-specific practices.
We make extensive use of firewall barriers, encryption techniques and authentication procedures
to maintain the security of your online session and to protect your Motivation accounts from
unauthorized access. We may also place cookies and similar files on your hard drive for
security purposes, to facilitate site navigation, and to personalize your experience on our site.
Our cookies do not identify you by name as an individual and cannot be used to access the
Motivation software without your knowledge.
When you visit the Motivation site, we may collect technical and navigational information, such
as computer browser type, Internet protocol address, pages visited, and average time spent on our
Web sites. This information may be used, for example, to alert you to software compatibility
issues, or it may be analyzed to improve our Web design and functionality.
For your security, Motivation will require you to change your password every 120 days. Securepasswords for Motivation will require that you use at least 8 characters, at least 1 uppercase
character, and at least one number or non-alpha character.
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This policy has a two-pronged approach:-
Develop services that assist, facilitate, enhance and quicken the process of development
aimed at inclusive growth.
Reposition India Post to become a self-sufficient, credible, efficient, quick and cost
effective provider of these services.
Functions :-
India Posts mandate, traditionally, has covered the following services:
Delivery of letter and other mail
Savings Bank operations
Money transfer
Provision of Life Insurance
Transmission and delivery of mail can be defined as India Posts core business so far. Post
Office Savings Bank is the oldest and largest banking institution in the country. Transmission of
funds by postal order/money order has been the traditional way of money transfer. Since 1884
onwards Postal Life Insurance (PLI) has been providing life insurance coverage, initially to
employees of P&T Department and subsequently to all Government employees. Since 1995 PLI
has been extended to the rural population of the country under a new scheme Rural Postal Life
Insurance.
India Post is expected to ensure provision of quality and basic postal services on regular basis to
all the users at all points in the country at affordable prices as part of its Universal ServiceObligation. The cost of providing these services has to be assessed systematically and fully
funded. The source of funding needs to be determined and set in ways that ensure the financial
self-sufficiency of India Post and allow it to make decisions relating to growth and development.
A sustainable tariff policy for providing the basic postal services also has to be determined. In
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view of the increasing participation in mail services by private players there is a need to address
the issue in a holistic manner.
To effectively face the challenges of competitionIndia Post also needs to be able to respond to
market forces quickly and efficiently both in pricing and product decisions. In order to do so,
India Post will require a certain degree of financial autonomy and commercial flexibility while
remaining accountable to its customers and to Parliament.
Structure :-
The Department of Posts is part of the Ministry of Communications and Information
Technology, Government of India. The Secretary, Department of Posts, as the Chief Executive
of the Department, is also the Chairperson of the Postal Services Board and Director General,
India Post. There is a need to revisit India Posts governance structure to provide an effective
line of command so that India Post is able to meet the challenges of current market conditions
vis--vis other players in the postal sector. India Post recognises the presence of private
competitors in the market, but there is also a need for regulating the sector to ensure disciplined
functioning and growth. India Post expects in the near term to achieve self-sufficiency givenrealistic prices for its core functions and other services.However, for the purpose of operational
efficiency and expansion of its activities, funding of its capital requirement may require external
resources. It also expects to receive revenues from its financial services and other fee based
services. It will examine closely and rationalise its product mix with emphasis on e-commerce,
logistics and parcel services, etc., bearing in mind the need to maintain highest level of
performance in letter mail services, financial services and governance functions.
Private Sector Participation:-
India Post welcomes the opportunity to work with the private sector in providing value added
services and extending its product range beyond the current core functions. Private sectors
participation in providing support services is expected to enable India Post to serve its customers
better.
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Physical Infrastructure :-
It will be the policy of India Post to bring its facilities within reach of every citizen in the
country. Since Independence, India Post increased the number of post offices from 23,344 to
1,55,204. It is the largest postal network in the world, with one post office serving 7160 people
and covering an area of approximately 21.2 sq. kms. Despite this only 1,37,508 out of 5,95,113
inhabited villages have post offices. Even if only Gram Panchayat villages are considered, only
1,15,881 of them out of a total of 2,34,755 have post offices.
With the 73rd Constitutional Amendment transferring funds, function and functionaries in many
development sectors to Panchayati Raj Institutions (PRIs), there is a real need to increase
connectivity and provide communication and financial services to these bodies to enable them to
discharge their Constitutional roles. There is a need therefore, to expand, strengthen and
rationalise the rural branch network to ensure full coverage. This can be done with funding
assistance from the Government for infrastructure support. India Post not only needs to invest in
physical structures and remedial maintenance, but also in good housekeeping, computerisation,
transport facilities etc.This will result in increased efficiency, lower costs, customer satisfaction
and enhanced service delivery.
Financial Services
The Post Office Savings Bank Scheme is an agency function performed by India
Post on behalf of the Ministry of Finance, Government of India. The Ministry of Finance
remunerates India Post for this agency work at a rate fixed from time-to-time. Nearly 16 crore*
people use India Post to save Rs. 3,23,781 crore as on March 31, 2007. Out of this, deposits in
savings bank account alone is Rs.16,789 crore. There is, therefore, a need for India Post to
computerize and connect all its savings bank accounts so as to widen and deepen the level of
financial transactions and offer banking services to the rural population.
India Post sees a great opportunity for increasing the number of accounts and
volume of savings. India Post will provide banking and financial transaction services to cater to
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the needs of the rural population and help realise the policy of financial inclusion for the un -
banked rural masses. For deepening and broadening its financial services, suitable agreements
with public/private sector banks will be forged, so that India Post can offer its unique last mile
connectivity to the customers. This will permit it to receive fees for the service rendered to the
banks and other financial entities. Before this, however, adequate infrastructure and connectivity
coupled with application of appropriate software needs to be in place.
India Post will also be the predominant agency for payments under all social security schemes of
Government such as Old Age Pension scheme, Rural Health Insurance, National Rural
Employment Guarantee Scheme etc. Such a service will reduce delay and inefficiencies in
making payments of legitimate entitlements to the poor, illiterate and uneducated masses who are
more likely to have confidence in the Post Office, than any other agency.
The urbanization of the country to levels of over 50% of population in older urban
agglomerations, new growth sectors and new agglomerations, creation of special economic zones
etc., has created additional demand for postal and financial facilities. These urban postal and
financial services are essential in order to maintain the flow of funds between urban and rural
residents and it is necessary to ensure safe and quick transmission of monies. Since the
competitors for such urban services are aggressive and efficient private players, India Post will
enhance and improve its delivery of urban services in order to offer comparative standards of
performance.
India Post will increase its market share in rural insurance. Postal Life Insurance and Rural
Postal Life Insurance are the instruments, which will allow India Post to increase its market and
business potential, as also fulfilling the social obligation of insuring people. It will transform the
century old Postal Life Insurance into a commercial business entity making its own investment
decisions and
(1 crore = 10 million)
competing on level playing field with other insurance entities, while conforming to requirements
of IRDA norms.
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Governance Functions :-
India Post is an essential part of the governance of the country. It has performed
sovereign functions since its inception and is instrumental in unifying the country and ensuring
connectivity between far-flung regions and between dispersed citizens, both within and outside
the country.
Its presence and operations have ensured that as a Government organisation it enjoys high
credibility and trust, and citizens have no hesitation in approaching its personnel or visiting its
offices. This degree of confidence is precious and it can be leveraged to bring more accuracy,
efficiency and credibility to other governance functions that depend crucially on identification of
individual citizens.
It is therefore, possible, given government approval and legislative support, for India Post
to carry out maintenance of electoral rolls, census operations and ensure passport verification etc.
This will be based on a National Address Database Management System (with street and GPS
addresses), which will be established. It will also solve the identification problem that besets
most Governmental programs and policies. Investment in this facility will enable the Union and
state governments to allow citizens to avail of their rights as well as enable the Government toidentify and locate citizens more accurately.
Connectivity
While expanding the Postal network, the policy of India Post is not only to provide physical
access to the people, but also to bridge the digital divide. As a step in this direction, India Post
has a Technology Induction Plan, which would connect the entire population to the electronic
network. India Post will induct technology aimed at providing new and better services, and more
efficient management by computerizing and networking all post offices using Central Server
based system. Induction of other state of the art processing systems including mail-processing
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systems - so as to provide service on par with global industry standards - will facilitate financial
transactions such as inward domestic and foreign remittances to and from India Posts customers.
Human Resource Development
The basis of any policy of sustainability and growth, especially of labour intensive
activities, is the productivity, capacity and morale of its personnel. A greater focus on human
resource development will be given with the objective of enhancing and transforming the human
resource of India Post into a customer-friendly, techno-savvy and efficient workforce led by
managers attuned to their tasks and aware of the competitive and accountable environment.
Efforts will also be made to increase productivity of human resources through direct recruitment
of technically qualified persons, training of incumbents and various incentive schemes.
Increased productivity and higher performance will receive appropriate incentives and the
interests of the workforce will be safeguarded. India Post will equip its workforce to achieve the
standards of excellence expected by its customers.
Introduction of Motivation
Motivation is defined as an urge in an individual to perform goal directed behavior.
Therefore, motivation cannot be inflicted from outside but it is an intrinsic desire in a man to
achieve the target goal through performance or activity.Motives are expression of persons need.
Hence, they are personal and internal. Incentives on the other hand are external to the person.
They are made part of work environment by management in order to encourage workers to
accomplish task. The motivational model indicates that a sense of felt deprivation generates
needs and such needs create tension in an individual. The individual perceive and makes cost
benefit analysis on the ways and means of releasing such tension. Once such perception is
cleared, individual pounces upon the activities and achieves some results. If it is success he feels
rewarded and falls in the cycle of motivation again. If it is failure he feels punished and once
again after due modification of ways and means pounces back on the cycle or feels frustrated.
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When people join an organization, they bring with them certain needs that affect on-the-job
performance. Some of these needs are physiological ; others are related to psychological and
social values. The later are much more difficult to determine and satisfy, and they vary greatly
from one to another. Maslow has developed a hierarchy of needs as follows : physiological,
security, social, esteem, and self-actualization needs. They interact with the environment to
shape on-the-job wants that are the basis of motivation. In addition, motivation is affected by
peoples perceptions, including their feelings of equity or fairness in a situation.
According to a model developed by Herzberg, motivation is influenced by maintenance and
motivational factors. Important motivational factors are the work itself, achievement, growth,
responsibility, advancement and recognition. These are primarily intrinsic motivators rather than
extrinsic ones. The Maslow and Herzberg models have many similarities because they both focus
on needs, but they do so from somewhat different points of view.
Two different models of motivation are the expectancy model and behavior modification.
The expectancy model states that motivation is a product of how much one wants something and
the probability that a certain action will lead to it. The formula is valence X expectancy =
motivation. Valence is the strength of a persons performance for one outcome in relation to
others. Expectancy is the strength of belief that a given act will be followed by particular
outcomes.
Behavior modification states that behavior depends on its consequences. It is achieved
through operant condition. Its various approaches include positive and negative reinforcement,
shaping, and extinction. Punishment normally is not used. Reinforcement can be continuous or
partial. Criticism of behavior modification are that it manipulates people and does not apply very
wellincomplexworkenvironments.Cognitive models dominate thinking about motivation, but
behavior modification is finding increasing use. Most attention has been given to type A
motivation (macromotivation) ; but in order to build a complete motivational environment, more
emphasis must be given to type B motivation (micromotivation).
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Motivation therefore, though is a dominant intrinsic urge in an individual yet the leader of the
team can guide the ways and means by which the followers can satisfy their needs. It is
obviously difficult to motivate an individual since he is guided by expressed motivation or
unconscious motivation and multiplicity of motivational sequences. It is easy to introduce a team
motivation or group motivation where the individual idiosyncrasy looses importance and the
group goal becomes the target. It is then not motivation per se but a group morale - an espirit de
corps i.e. a sense of group activity with desire for high achievement of the group goal where an
individual can comfortably ignore his personal goals or needs. Such morale is mostly
psychological in nature and not physiological.
A leaders job is, therefore, to inculcate the extirpation of the group morale if he proposes to
achieve the target through his follows where equal weight is given to performance of task and
welfare of the followers, a stage of suspended pendulum or middle of the road method.
Conclusion
India Post is committed to meeting the challenges of the economy and the need to ensure
connectivity, communication and financial services to every citizen. It also emphasises the need
to expand and strengthen its coverage of rural areas where 60% of the people reside and maintain
their livelihoods.
India Post believes that the new economy and modern markets require it to become more
financially autonomous and commercially flexible in order to deliver its core functanoth services
efficiently and to high standards. It believes that a new legislative framework for regulating thesector is an essential part of modernizing the sector and ensuring its orderly and disciplined
functioning and growth.
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