The attrition rate has always been a sensitive issue for all organizations. Calculating employee turnover rate is not that simple as it seems to be. No common formula can be used by all the organizations. A formula had to be devised keeping in view the nature of the business and different job functions. Moreover, calculating attrition rate is not only about devising a mathematical formula. It also has to take into account the root of the problem by going back to the hiring stage.
Attrition rate: There is no standard formula to calculate the attrition rate of a company. This is because of certain factors as:
• The employee base changes each month. So if a company has 1,000 employees in April 2004 and 2,000 in March 2005, then they may take their base as 2,000 or as 1,500 (average for the year). If the number of employees who left is 300, then the attrition figure could be 15 percent or 20 percent depending on what base you take.
• Many firms may not include attrition of fresher who leave because of higher studies or within three months of joining.
• In some cases, attrition of poor performers may also not be treated as attrition. Calculating attrition rate:
Attrition rates can be calculated using a simple formula:
Attrition =(No. of employees who left in the year / average employees in the year) x 100
Thus, if the company had 1,000 employees in April 2004, 2,000 in March 2005, and 300 quit in the year, then the average employee strength is 1,500 and attrition is 100 x (300/1500) = 20 percent. Besides this, there are various other types of attrition that should be taken into account. These are:
• Fresher attrition that tells the number of fresher who left the organization within one year. It tells how many are using the company as a springboard or a launch pad.
• Infant mortality that is the percentage of people who left the organization within one year. This indicates the ease with which people adapt to the company.
• Critical resource attrition which tell the attrition in terms of key personnel like senior executives leaving the organization.
• Low performance attrition: It tells the attrition of those who left due to poor performance.
Attrition Costs
One of the best methods for calculating the cost of turnover takes into account expenses involved to replace an employee leaving an organization. These expenses are:
A. Recruitment cost
The cost to the business when hiring new employees includes the following six factors plus 10 percent for incidentals such as background screening:
• Time spent on sourcing replacement
• Time spent on recruitment and selection
• Travel expenses, if any
• Re-location costs, if any n Training/ramp-up time
• Background/reference screening
B. Training and development cost
To estimate the cost of training and developing new employees, cost of new hires must be taken into consideration. This will mean direct and indirect costs, and can be largely classified under the following heads:
• Training materials
• Technology
• Employee benefits
• Trainers’ Time
C. Administration cost
They include:
• Set up communication systems
• Add employees to the HR system
• Set up the new hire’s workspace
• Set up ID-cards, access cards, etc.
Sunday, December 14, 2008
Tuesday, December 9, 2008
How Can HR Manage Difficult People at Work
Every organisation, every workplace has people with diverse backgrounds, religions, educational qualifications, experiences etc. Most importantly, they differ in their personalities and attitudes. Most people are polite, easily accessible and cooperate with others. But every organisation has a few people who are simply difficult to deal with or difficult to manage. "Difficult people" as they are generally referred, exists in every workplace. They can be in the form of a bad boss, a difficult co-worker or a non-corporative vendor or customer.
Difficult people become the problem employees for an organisation very soon. From the organisation's point of view, difficult people in a workplace is a problem because not only do they
themselves perform feebly, but also affect other employee's productivity, and often become a bottleneck for the people around them to perform efficiently on their jobs. A negative person can affect and hinder the organizational processes like change.
Types of difficult people in an organisation:
Difficult people in an organisation and be characterized and categorized into the following types or categories:
• Uncooperative - These are the people who are concerned only about their needs and work, often creating troubles and conflicts for others. They don't cooperate with others and have the tendency to create tension at workplace.
• Power Seekers - There are few people who can be categorized basically as power seekers. They always look for some chance or the other to seek more authority and power over others and show their superiority. To seek the spotlight (attention), or to be in the good books of the boss, they can even become the 'yes man' of their boss and go to the extent demoting or creating problems for others.
• Complainer - This category is for the people who keep complaining about the organisation and its systems, their co-workers etc. Although there are complainers who complain against the genuine issues and do good for the organisation. The most dangerous type of complainers is the "malcontent complainer" who offers no valid suggestions but problems, and they drain out the energy from the organisation and have a demotivating impact on others.
• Pessimists - Another category of difficult people in the organisation is of pessimists. They are the set of negative people in the organisation who can find fault in almost everything and everybody. With their negative mindsets, they can create negativity in their surroundings.
• The aggressive employee - Aggressive employees, especially an aggressive boss, is the most difficult set of people in an organisation to deal with. They are the people who refuse to accept their faults and flaws, and consider themselves to be always right. They are found to be dominating in nature and believe that they "know-it-all". Such people fail to mature and acknowledge other's valuable ideas and suggestions. Such employees are often referred as "The hyena" indicating rude, aggressive, authoritarian and negative people, always blaming others for their failures.
• The wild cat -is the category of people who are generally found very irregular at their work. Also, they are known to create and spread rumors in the workplace, always making excuses and blaming others for their inadequate performance. They have the tendency to create stress at their workplace.
MANAGING DIFFICULT PEOPLE AT WORK:
Difficult people can be irrational, abusive, creating problems persistently or simply difficult to get along with. Every organisation has to decide whether and how to deal with them without having an adverse effect on the organisation's environment, employee's productivity and their morale. A few ways of dealing with them are:
Talk to them: Be patient and polite, talk to them with a personalized touch explaining them the situation. Don't confront or blame them, and listen to them. Give them a piece of your own mind, understand if there is some problem they are facing. Reinforce the good part of their behaviour.
Don't be a difficult person for them! Don't rush things and explain your point of view with care. Don't point fingers or try to judge them as a person. Be unbiased and systematic I your approach.
Always agree to disagree: Talk to the person with an open mind and positivity. No two individual are alike and there can always be disagreements. Personally disliking towards a co-worker or boss should be dealt with care. Always try to find the positive way out.
And last but not the least
Take concrete action: Once you are completely aware of the problem, through with all the possible solutions and the situation doesn't get any better, don't shy away from taking any concrete action for the good of the organisation and to stop the problem from aggravating, even if it requires to confront the person directly.
Establish parameters and hire "right": One of the most important and effective solution is to frame and practice the recruitment policies and procedures to judge the attitude of the person at the time of the interview and hire only the right people.
CONCLUSION:
Dealing with difficult people is a challenge. However firing them or separating them from the organisation should be the last resort, as it is always possible to help them be more productive and effective in doing their job.
Difficult people become the problem employees for an organisation very soon. From the organisation's point of view, difficult people in a workplace is a problem because not only do they
themselves perform feebly, but also affect other employee's productivity, and often become a bottleneck for the people around them to perform efficiently on their jobs. A negative person can affect and hinder the organizational processes like change.
Types of difficult people in an organisation:
Difficult people in an organisation and be characterized and categorized into the following types or categories:
• Uncooperative - These are the people who are concerned only about their needs and work, often creating troubles and conflicts for others. They don't cooperate with others and have the tendency to create tension at workplace.
• Power Seekers - There are few people who can be categorized basically as power seekers. They always look for some chance or the other to seek more authority and power over others and show their superiority. To seek the spotlight (attention), or to be in the good books of the boss, they can even become the 'yes man' of their boss and go to the extent demoting or creating problems for others.
• Complainer - This category is for the people who keep complaining about the organisation and its systems, their co-workers etc. Although there are complainers who complain against the genuine issues and do good for the organisation. The most dangerous type of complainers is the "malcontent complainer" who offers no valid suggestions but problems, and they drain out the energy from the organisation and have a demotivating impact on others.
• Pessimists - Another category of difficult people in the organisation is of pessimists. They are the set of negative people in the organisation who can find fault in almost everything and everybody. With their negative mindsets, they can create negativity in their surroundings.
• The aggressive employee - Aggressive employees, especially an aggressive boss, is the most difficult set of people in an organisation to deal with. They are the people who refuse to accept their faults and flaws, and consider themselves to be always right. They are found to be dominating in nature and believe that they "know-it-all". Such people fail to mature and acknowledge other's valuable ideas and suggestions. Such employees are often referred as "The hyena" indicating rude, aggressive, authoritarian and negative people, always blaming others for their failures.
• The wild cat -is the category of people who are generally found very irregular at their work. Also, they are known to create and spread rumors in the workplace, always making excuses and blaming others for their inadequate performance. They have the tendency to create stress at their workplace.
MANAGING DIFFICULT PEOPLE AT WORK:
Difficult people can be irrational, abusive, creating problems persistently or simply difficult to get along with. Every organisation has to decide whether and how to deal with them without having an adverse effect on the organisation's environment, employee's productivity and their morale. A few ways of dealing with them are:
Talk to them: Be patient and polite, talk to them with a personalized touch explaining them the situation. Don't confront or blame them, and listen to them. Give them a piece of your own mind, understand if there is some problem they are facing. Reinforce the good part of their behaviour.
Don't be a difficult person for them! Don't rush things and explain your point of view with care. Don't point fingers or try to judge them as a person. Be unbiased and systematic I your approach.
Always agree to disagree: Talk to the person with an open mind and positivity. No two individual are alike and there can always be disagreements. Personally disliking towards a co-worker or boss should be dealt with care. Always try to find the positive way out.
And last but not the least
Take concrete action: Once you are completely aware of the problem, through with all the possible solutions and the situation doesn't get any better, don't shy away from taking any concrete action for the good of the organisation and to stop the problem from aggravating, even if it requires to confront the person directly.
Establish parameters and hire "right": One of the most important and effective solution is to frame and practice the recruitment policies and procedures to judge the attitude of the person at the time of the interview and hire only the right people.
CONCLUSION:
Dealing with difficult people is a challenge. However firing them or separating them from the organisation should be the last resort, as it is always possible to help them be more productive and effective in doing their job.
Monday, December 8, 2008
Benefits Of Employee Empowerment
"An empowered organization is one in which individuals have the knowledge, skill, desire, and opportunity to personally succeed in a way that leads to collective organizational success." - Stephen Covey
An organization’s human resource is its most valuable asset. The employees are the repository of knowledge, skills and abilities that can’t be imitated by the competitors. Technologies, products and processes are easily imitated by the competitors; however, at the end of the day, employees are the most strategic resource of the company.
Generally, people are a firm’s most underutilized resource. And that is why management tries to empower the employees. But employees often are afraid of taking this responsibility. They fear the additional work pressure that they will have to bear as a part of being empowered. Besides, they also fear being held accountable for the decisions they make.
But, what does employee empowerment actually mean? Does it mean absolute authority or absolute power? The answer is certainly NO. Empowerment refers to enlargement of an employee’s job responsibility by giving him the authority of decision making about his own job without approval of his immediate supervisor. Empowerment is the degree of responsibility and authority given to an employee. By empowerment, the employees are supported and encouraged to utilize their skills, abilities and creativity by accepting accountability for their work. Empowerment occurs when employees are adequately trained, provided with all the relevant information and the best possible tools, fully involved in key decisions, and are fairly rewarded.
Employee empowerment entails identifying how much responsibility and authority an individual can effectively handle without becoming over-burdened or distressed. Empowerment includes supervisors and employees working together to establish clear goals and expectations within agreed-upon boundaries.
An organization’s human resource is its most valuable asset. The employees are the repository of knowledge, skills and abilities that can’t be imitated by the competitors. Technologies, products and processes are easily imitated by the competitors; however, at the end of the day, employees are the most strategic resource of the company.
Generally, people are a firm’s most underutilized resource. And that is why management tries to empower the employees. But employees often are afraid of taking this responsibility. They fear the additional work pressure that they will have to bear as a part of being empowered. Besides, they also fear being held accountable for the decisions they make.
But, what does employee empowerment actually mean? Does it mean absolute authority or absolute power? The answer is certainly NO. Empowerment refers to enlargement of an employee’s job responsibility by giving him the authority of decision making about his own job without approval of his immediate supervisor. Empowerment is the degree of responsibility and authority given to an employee. By empowerment, the employees are supported and encouraged to utilize their skills, abilities and creativity by accepting accountability for their work. Empowerment occurs when employees are adequately trained, provided with all the relevant information and the best possible tools, fully involved in key decisions, and are fairly rewarded.
Employee empowerment entails identifying how much responsibility and authority an individual can effectively handle without becoming over-burdened or distressed. Empowerment includes supervisors and employees working together to establish clear goals and expectations within agreed-upon boundaries.
Wednesday, December 3, 2008
Why Employee Empowerment Fails?
Employee empowerment means that an employee has the power to take some decisions without consulting his boss or reporting manager. Employee empowerment is an essential part of employee retention. But due to many known or unknown reasons, it fails. Some of the reasons may be:
• Managers don’t take employee empowerment seriously in the first place. It becomes more of a prestige issue to give control to others.
• Even if managers take it seriously, they are unable to lay down proper boundaries for the empowerment.
• Managers sometimes fail to provide a strategic framework.
• Managers sometimes don’t provide the information, and growth & learning opportunities that are needed by the employ to empower himself and take good decisions.
• On the other hand, managers sometimes hand over all responsibilities to the employee. This may lead to misuse of powers given to the employee.
• Some managers act like a barrier and hamper the decision making practice of the empowered employee out of jealousy.
Tuesday, November 11, 2008
LEARNING GAPS AND LEVELS IN KENYA
There is not doubt that,
I often find myself criticizing governments worldwide for failing to create opportunities for poor people, especially in the education sector. We certainly should be critical, but must also realize that, as a responsible society, we cannot and should not leave everything to the government and NGOs. The education sector is not exclusively the obligation of the government. If the governments and NGOs cannot cope with the responsibility, then why shouldn’t the private sector do something to balance the lack of good education?
In many developing countries, public education leaves a lot to be desired. Teachers are not as motivated to show up regularly, perhaps because they do not feel accountable to the students, but instead to distant government officials. Public school teachers and their unions are sometimes politically divisive; the problems in, On the other hand, the infrastructure of classrooms could be seriously improved; often the infrastructure is below the average standards of a respectful educative environment.
Studies by the World Bank and The World Economic Forum have shown that entrepreneurs are realizing that there is a demand for private education services in the BOP. People in the BOP are also starting to "invest" in private education for their children. There is no doubt that there are new private schools in poor areas that charge $1 or $2 USD a month and provide better education than most of the Government schools, however much they may call it free elementary education.
Research done by Prof. James Tooley (winner of the FT Gold Prize Essay) shows that there are many people in the BOP who are willing to invest their money in private education. In the research of his award-winning essay, he found that "…a large majority of schoolchildren in selected poor urban and per urban areas of India and Sub-Saharan Africa using private schools, while in rural India, half of the schoolchildren are privately enrolled. Even in impoverished rural China large numbers of private schools exist off the official radar. The research showed that private schools for the poor are superior to government schoolteachers are more committed, the provision of important inputs are better, and education outcomes better even after controlling for background variables. All this is accomplished for a fraction of the per-pupil teacher cost of government schools."
In the paper, "De facto’ Privatization of Education and the Poor: Implications of a Study from Sub-Saharan Africa and India," James Tooley and Pauline Dixon make a case study in India on the extraordinary growth of private education. People living in the BOP are aware of the value of education as a long-term investment. Entrepreneurs that would want to invest in education should take this as an opportunity and not just leave the weight of education on the government or NGOs.
To private school standards, these schools are not necessarily top-tier schools, but in many cases give a better education than the public schools. I find these private education initiatives to be innovative ways of solving the problems of mediocre public education. These new initiatives give parents in developing countries an option to be able to assure better educational opportunities for their children.
There is a need for a Kenya Government to encourage more private schools in order to push shine in education.
Courtesy of DNA
COMPETENCIES OF SELF MNAGEMENT
- Becoming great is the aspiration of any individual Greatness does no fall in the net as if one goes to the nearby shop, buying a sweet and chewing. It is the fruit of the hard one puts in. We see and read about great people in our lives. They were born like you and me. They did not different things, but they did the things differently. Self management is one of the very important concepts for becoming great in life.
- This section provides detailed definitions of competencies of self-management. In addition, suggested development activities, books to read, and movies to watch have been provided to aid you in your personal competency development plan; self management, self-awareness social awareness and relationship management. Self management tools can be categorized as: -
- Subordinate: Tools such as video monitoring or home surveillance sensor systems, provide limited patient discretion beyond agreement to use the tools.
- Structured: These are tools that provide more active self- management, but in highly defined ways. Examples range from sound and text reminders from a table-top appliance or perhaps a personal digital assistant or telephone, along with the patient’s ability to transmit data, for example, blood pressure reading.
- Collaborative: This category covers those tools that have been the most thoroughly examined and embraced by disease management theorists. These include decision support ids, online interventions, chronic disease management aid, and patient education materials.
- Autonomous: As the name suggests, tools for autonomous roles do not require regular participation or input from professionals. Internet sites such as e-Diets and home heart defibrillators are examples of this category of tools.
- 01 Emotional Self Control; this is the ability to keep your impulsive feelings and emotions under control. It is being able to restrain negative action when proved, when faced with opposition or hostility from others, or when working under pressure.
- Developmental Tips: Make a list of all the things that cause you to “lose it” (your triggers). Create a strategy to prevent these triggers from causing you to lose your composure and your self-control. Reduce your stress through physical activity or other types of conscious relaxation techniques (yoga, exercise, gardening, taking a bath etc.), attend a stress management workshop.
- 02 Trustworthiness: This competency can best be described as taking action that is consistent with what you say and value. It includes communicating intentions, ideas, and feelings openly and directly and welcoming openness and honestly in others. You show integrity and take responsibility for your own behavior and performance. You build trust through reliability and authenticity.
- Development Tips: Spend some time exploring the values and principles that you feel most strongly about. Write down the most important ones. Next to each one, examine whether your behavior is consistent with these values. Ask yourself what you would need to do differently in order to live more genuinely and be true to your beliefs; consider the issues on which you are willing to act against all opposition. Clarify for yourself what is and is not worth fighting for. If an opportunity comes up to act on a principle, take it but be sure your are certain of your ground.
- 03 Conscientiousness: This competency is about taking responsibility for your personal performance. It reflects an underlying drive for being reliable and delivering quality work. You work in a careful and organized manner, paying attention to detail, following through on commitments and promises, and building trust through reliability.
- Developmental Tips: Keep a detailed filing system for all monthly bills: telephone, rent, heat, credit cards, etc; Build routine checks into your calendar to ensure adherence to deadlines, policies, and standards. In the event that your find something that does not reach the desired standard or that will take much longer than the time frame given, work through your plan to give the task at hand more time, effort.
- 04 Adaptability: This is the ability to be flexible and work effectively within a variety of changing situations and with various individuals and groups. People with this competency are willing to change their own ideas or perceptions on the basis of new information or evidence. They are able to alter standard procedures when necessary, and juggle multiple demands as required.
- Developmental Tips: Periodically review the process you or your department has in place. What are the strengths and weaknesses of each? Is there a better, more efficient way of approaching things? Hen current strategies are not working, stop what your are doing, acknowledge that it is not working and make the necessary adjustment to your plans, activities, objectives, or behavior. Be willing to make some midcourse adjustments when things are not going well or when change is needed.
Monday, November 3, 2008
ALL IT TAKES IS TO HAVE THE INFORMATNION TECHNOLOGY ACT
STATEMENT OF OBJECTIVE’S AND REASONS.
New communication systems and digital technology have made dramatic changes in the way we live. A revolution is occurring in the way people transact business. Business and customers are increasingly using computer to create, transmit and store information in the electronic form instead of traditional paper document. Information stored in electronic form has many advantages. It is cheaper, easier to store, retire and speedier to communicate, Although people are aware of this advantages they are reluctant to conduct business or conclude any transaction in the electronic form due to lack of appropriate legal frame work.
The two principal hurdles which stand in the way of facilitating electronic commerce and electronic governance are the requirements as to writing and signature for legal recognition. At present much legal provision assume the existence of paper based records and documents and records which should bear signatures. The law of evidence is traditionally based upon paper based records and oral testimony, since electronic commerce eliminates the need for paper based transactions hence to facilitate e-commerce, the need for legal changes have become urgently necessary.
International trade through the medium of e-commerce is growing rapidly in the past few years and many countries have switched over from traditional paper based commerce to e-commerce.
The United Nations commission on international trade law (UNCITRAL) adopted three model laws on electronic commerce in 1996. The general Assembly of United Nations by its resolution number 51/162 dated 30th January, 1997 recommended that all states should give favorable considerations to the said model law when they enact or revise their laws. Model law provides for equal legal treatment of users of electronic communications and paper based communication. Pursuant to a recent declaration by member countries, the world trade organization is likely to form a work programme to handle. Its work in this area including the possible creation of multilateral trade deals through the medium of electronic commerce.
There is a need for bringing in suitable amendments in the existing laws in our country to facilitate e-commerce. It is therefore, proposed to provide for legal recognition of electronic records and digital signatures. This will enable the conclusion of contracts and the creation of rights and obligations through the electronic medium. It is also proposed to provide for a regulatory regime to supervise the certifying authorities issuing Digital signature certificates.
To prevent the possible misuse arising out of transactions and other dealings concluded over the electronic medium. It is also proposed to create a civic and criminal liabilities for contravention of the provisions of the proposed legal legislation with a view to facilitate electronic governance. It is proposed to provide for the use and acceptance of electronic
records and digital signature in the government offices and its agencies.
This will make the citizens interaction with government offices hassles free. It is also proposed to make consequential amendments in the Kenyan penal code and the Kenyan Evidence Act to provide for necessary changes in the various provisions which deals with offense relating to document and paper based transactions. It is also proposed to amend the Central Bank of Kenya Act, to facilitate electronic fund transfers between the financial institution and banks and the Banker’s Book of evidence Act. to give legal sanctity for books of account maintained in the electronic form by the banks.
The government of Kenya must work towards improving the policy climate in the country. However, more de-regulation needs to take place in core infrastructure area such as telecom. In the absence of complete policy reforms in the telecom sector the Kenya’s ICT growth vision could get severely hampered.
Some tremendous gains have been made by the computerization of the government functioning, not only in strengthening the delivery of existing services but also by improving policy planning and implementation though more effective provision of information to policy makers. The direct and immediate benefits of the use of IT in government are improvements in service quality, efficiency and government people relationships by providing quick, easy and transparent access to information.
There is an urgent need to target basic needs such as primary education basic health service, water sanitation requirement particularly in rural areas. The New ICT applications and content relevant to the demand in rural areas, can drastically improve the delivery of information related services to people in general and agriculture extension services and provision of health and social services in rural areas in particular.
The policy makers must take into consideration the broader picture when designing IT policy and treat it as a part of an overall economic strategy in which sound economic polices will benefit the IT sector and diffusion of IT will have positive effects on economic development and social between, local bodies, the local administration and NGO’s appear to hold the Key. Development of applications such as online system for community baking, will contribute to the economic sustainability of the operations. It will also go a long way to humanize and sensitize the Kenyan information revolution.
New communication systems and digital technology have made dramatic changes in the way we live. A revolution is occurring in the way people transact business. Business and customers are increasingly using computer to create, transmit and store information in the electronic form instead of traditional paper document. Information stored in electronic form has many advantages. It is cheaper, easier to store, retire and speedier to communicate, Although people are aware of this advantages they are reluctant to conduct business or conclude any transaction in the electronic form due to lack of appropriate legal frame work.
The two principal hurdles which stand in the way of facilitating electronic commerce and electronic governance are the requirements as to writing and signature for legal recognition. At present much legal provision assume the existence of paper based records and documents and records which should bear signatures. The law of evidence is traditionally based upon paper based records and oral testimony, since electronic commerce eliminates the need for paper based transactions hence to facilitate e-commerce, the need for legal changes have become urgently necessary.
International trade through the medium of e-commerce is growing rapidly in the past few years and many countries have switched over from traditional paper based commerce to e-commerce.
The United Nations commission on international trade law (UNCITRAL) adopted three model laws on electronic commerce in 1996. The general Assembly of United Nations by its resolution number 51/162 dated 30th January, 1997 recommended that all states should give favorable considerations to the said model law when they enact or revise their laws. Model law provides for equal legal treatment of users of electronic communications and paper based communication. Pursuant to a recent declaration by member countries, the world trade organization is likely to form a work programme to handle. Its work in this area including the possible creation of multilateral trade deals through the medium of electronic commerce.
There is a need for bringing in suitable amendments in the existing laws in our country to facilitate e-commerce. It is therefore, proposed to provide for legal recognition of electronic records and digital signatures. This will enable the conclusion of contracts and the creation of rights and obligations through the electronic medium. It is also proposed to provide for a regulatory regime to supervise the certifying authorities issuing Digital signature certificates.
To prevent the possible misuse arising out of transactions and other dealings concluded over the electronic medium. It is also proposed to create a civic and criminal liabilities for contravention of the provisions of the proposed legal legislation with a view to facilitate electronic governance. It is proposed to provide for the use and acceptance of electronic
records and digital signature in the government offices and its agencies.
This will make the citizens interaction with government offices hassles free. It is also proposed to make consequential amendments in the Kenyan penal code and the Kenyan Evidence Act to provide for necessary changes in the various provisions which deals with offense relating to document and paper based transactions. It is also proposed to amend the Central Bank of Kenya Act, to facilitate electronic fund transfers between the financial institution and banks and the Banker’s Book of evidence Act. to give legal sanctity for books of account maintained in the electronic form by the banks.
The government of Kenya must work towards improving the policy climate in the country. However, more de-regulation needs to take place in core infrastructure area such as telecom. In the absence of complete policy reforms in the telecom sector the Kenya’s ICT growth vision could get severely hampered.
Some tremendous gains have been made by the computerization of the government functioning, not only in strengthening the delivery of existing services but also by improving policy planning and implementation though more effective provision of information to policy makers. The direct and immediate benefits of the use of IT in government are improvements in service quality, efficiency and government people relationships by providing quick, easy and transparent access to information.
There is an urgent need to target basic needs such as primary education basic health service, water sanitation requirement particularly in rural areas. The New ICT applications and content relevant to the demand in rural areas, can drastically improve the delivery of information related services to people in general and agriculture extension services and provision of health and social services in rural areas in particular.
The policy makers must take into consideration the broader picture when designing IT policy and treat it as a part of an overall economic strategy in which sound economic polices will benefit the IT sector and diffusion of IT will have positive effects on economic development and social between, local bodies, the local administration and NGO’s appear to hold the Key. Development of applications such as online system for community baking, will contribute to the economic sustainability of the operations. It will also go a long way to humanize and sensitize the Kenyan information revolution.
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