khuram

Archive for June, 2010

“Degree is Degree — Whether it is Fake or Genuine!” (CM Balochistan):

Posted by khuram on June 30, 2010

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“Degree is Degree — Whether it is Fake or Genuine!” (CM Balochistan)

Well … I am supporter of this statement … but not in feudal sense.

My following words basically deal with the issues of “Strong Institutions” Vs. “Strong Personalities” and “Competency Vs. Merit”. I will criticize the concept of “Strong Institutions” including “Education System” and will supports CM Balochistan’s recent statement: “Degree is Degree — Whether it is Fake or Genuine”.

One common point of view is that lack of proper institutionalization is the core problem Pakistan is facing these days. Once I dared to disagree with this opinion. I got following response from a friend:

So you think that there is no need for strong institutions like courts, police etc. Strength doesn’t mean anything else than independent decisions, decisions on merit. If you are against decision on merits than you can say that our country needs strong personalities above all rules, above all codes.

My Reply:

Well, I am not against the existence of institutions. But institutions should not be so big fools as to be not able to recognize what could be the real best option in various particular situations. I presented the case of a candidate whose over-all 62% marks (In that case, Passing Marks were 40%) could not save her from being declared FAIL in written exam just because she failed only in one paper (out of 12) on account of one short number. May be you cannot realize the stupidity of examination body (the institution) in this case. One can better realize it if one personally goes through similar instances.

Secondly I am in need to clarify what meaning I take of ‘strong’ person and ‘strong’ institution.

In this connection, we generally denote ‘strong person’ as a person who does not care for rules and regulations for negative purposes or for personal selfish reasons. This is the popular meaning and it is a negative meaning.

But I had not used ‘strong person’ with this negative meaning. For me, ‘strong person’ would be that one who does not care for rules and regulations for good and positive reasons.

Now about strong Institutions:

You say:

“Strength doesn’t mean anything else than independent decisions, decisions on merit.”

Well, if you are talking of ‘strong institutions’ in that sense which you are favoring, then let me point out that under the system of ‘strong institutions’ which you favor, decisions are NOT independent and decisions don’t have the basis of COMPETENCY (here I have replaced ‘competency’ for ‘merit’).

Because in ‘strong institutions’, decisions DEPEND on rigid rules and policies, whereas meaning of ‘merit’ is NOT level of competency but is just ‘level of compliance to written rules and policies’.

I ask you a simple question. There are two students who are doing Masters in Physics. University has designed a predefined syllabus for Physics. First student is research minded and he takes pain in trying to find new facts about Physics. For this purpose he has to spend time in his research activities.

Second student is good crammer of syllabus books. What shall happen in the University exam…??? Crammer of syllabus books shall come on MERIT. On the other hand, research minded student might fail in University exam because he had been full time busy in his research activities.

My question to you is that who is more competent…???

If you say that research minded person is more competent … Then you are in favor of strong personalities because in this case your decision has been INDEPENDENT OF RULES AND POLICIES OF UNIVERSITY.

If you say that person who is good crammer of syllabus books is more competent … then you are in favor of strong institutions because your decision has been BASED ON RULES AND POLICIES OF UNIVERSITY.

In my opinion, research minded person is REAL competent whereas crammer has just come on merit.

My another question to you is that: “Competency Vs Merit” … What do you like…???

Competency can go anywhere … it can set its own direction also … Merit is just a blind chase of rigid rules and policies. Competency is the quality of leaders. Merit is the quality of followers. Leaders are those who show others some direction. Remember that any new direction could not be contained in the way of rigid compliance to previously written rules and policies. Those who are only to follow the already written rules and policies how can they go to any new direction…??? A person who does not go to any new direction, how can he show any new direction to others…??? And a person who does not show the new direction to others … simply he is not leader. Perhaps he is such a ‘manager’ who cannot take many independent decisions … Because his decisions would depend on written rules and policies.

Yes I am against decisions on merit … but in the above mentioned sense. And yes there should be strong personalities … above all rules, above all codes … but they must be allowed to go beyond all rules and all codes only for good and positive reasons. Practically it is possible to be allowed to only head of the institution and/or heads of department/section.

My Friend Replied:

Just consider an example if you have a very good car latest model (institution) with an average driver one who can drive like you and me, and on the other hand if you have very old car with so many faults in it, weak engine out dated model with an expert driver (strong personality), what do you think who will win the race? Now a philosopher will favor the expert and a realistic one will favor the latest model machine. In simple words if you have strong institutions then you can utilize your mind otherwise its useless.

My Reply:

Yes if we make our institutions ‘strong’ (within your meaning) then we would not be in need of competent persons … just like an incompetent driver of a better car can win the race against a competent driver, who drives an old car.

Well … we already have shortage of competent persons … Do you want to cover this deficiency in this way…??? By eliminating the role of any human competency…???

But you have forgotten that the incompetent driver shall be able to win the race only when a competent person would already have invented a better car. Actually these ‘strong institutions’ only make our lives more mechanical. Nothing would happen if you replace all the persons in your ‘strong institution’ with mechanical computer aided robots. So there would be no need of humans in your ‘strong institutions’. I again have given all the philosophical reasons in support of my views. I can give examples of ground realities also where so-called strength of institutions have given the results of miseries for general public and have opened the avenues for corruption in many government departments. Our official taxation laws, for instance, are so harsh that tax liabilities of small businessmen can reach to such amounts, which may be more than total capital employed. For example (real example) a business had to be closed just because that businessman made payments to his supplier in cash instead of through banking channel which was required as per law. Otherwise that businessman had been a regular tax payer and he had deposited all his due taxes. He committed only this procedural mistake i.e. of not making payments to supplier through banking channels. In this way he has attracted penalties amounting to more than the total capital of business.

Since our BLIND ‘strong institutions’ cannot see the on ground facts and they only can follow the written rules and policies … So as a result, now that business has been closed. I myself have won the case (being the representative of department in the judicial proceedings) against that businessman at Departmental Tribunal level. In my private meetings with the advocate of businessman, I admitted that no revenue loss was involved in that case because taxpayer had duly deposited all the payable taxes. Only fault was procedural in nature where no government revenue loss was involved. But the penalties involved for such procedural mistake would amount to more than the capital employed by the business. During the judicial proceedings before the Tribunal, I argued that taxpayer had violated such and such rules and sections of Law so he may be penalized for it. So I myself played the role of ‘strong institution’. In another case, taxpayer had made such mistake which had little effect on government revenue. But he was charged with heavy penalty for the procedural mistake. Case already had been decided in favor of tax payer by the lower adjudication forum. Adjudication officer might be some “strong person” within my meanings … So he had taken the decision in favor of taxpayer because amount of revenue loss was really just minor.

On the next forum i.e. before Appellate Tribunal, I represented the department before Tribunal. I won the case on first hearing in favor of department by arguing that tax payer had violated such and such rules and laws. Again I played the role of ‘strong institution’ and ‘weak personality’… And I promoted real injustice in this way because taxpayer had committed only immaterial type of procedural mistake which would have just minor impact on government revenue. Now that person shall pay heavy fines.

I also knew and Judges also knew that there had been no significant loss to government treasury in that case. But my role and the role of judges had been to just blindly follow the written policies and procedures. And this is what we really did. So how can you say that strong institutions shall solve all the problems of nation…??? Strong institutions themselves are a big problem … because they are blind … because they prevent the personalities from applying their minds for the betterment of country … because institutions possess no working mind … because they possess only mechanical written policies which might not be in the best interest of country in all the situations.

I give another example of a so-called “Strong Institution” which is our prevalent Education System. Yesterday, on a TV program, Mr.Tallat Hussain asked Voice Chancellor, Punjab University, “Suppose a student genuinely gets good marks in B.A (Graduation) exams but after some years it comes out that his F.A (Intermediate) certificate was fake (or his marks in F.A were not sufficient to get admission in B.A.) then what will happen to the status of his B.A degree?”

Voice Chancellor categorically replied, “His B.A degree will become liable to be canceled”.

It’s simple meaning is that Education System, as an institution, is not there to spread any knowledge or wisdom. It only ensures certain good percentage of compliance to written rules and policies. One who manages to get more knowledge/wisdom than offered by the Education System but does not manage to follow written rules and policies of university, SHALL NOT BE AWARDED DEGREE by the University. Sometimes universities bypass their written rules and policies when they award some persons honorary degrees. But in such cases, generally, those personalities already would have proven their competency before whole world. In this way, universities prove themselves BLIND as they cannot see competency outside of Education System as long as the world already recognizes that competency.

In short, I liked yesterday’s statement of Chief Minister Balochistan: “Degree is degree — whether it is fake or genuine!”.

Posted in -Home-, Education & Examination System, Essays on Pakistan, Pakistan, Pakistan Internal Affairs, Philosophy, Philosophy in Pakistan, Subjectivity/ Objectivity and Scientific Method, Theory of Knowledge | 1 Comment »

Integrated Accounting System

Posted by khuram on June 22, 2010

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Financial Accounting is basically Non-Integrated Accounting which accounts for only the monetary aspects of every business transaction. You purchase hundreds of inventory items but to record purchase, you only debit one “Purchase” Account with purchase value without any mention of quantities involved. Similarly you sell different trade items and record them by giving credit to only “Sales” Account. Consequently your Financial Accounts fail to tell you the complete story of your business affairs. You get a Trial Balance and Final Accounts. You know your Gross Profit and Net Profit. You also know financial worth of your business on the Balance Sheet date. The things you don’t know in this way are the details of your inventory items purchased/ sold, inventory stocks, inventory costs taken up in every sales transactions (Trading Businesses) or ongoing production activities (Manufacturing Businesses).

To overcome these limitations of Financial Accounting, large businesses usually adopt and implement another difficult and expensive Accounting System which is known as Cost and Management Accounting. This is also non-integrated accounting method because it functions parallel to the Financial Accounting. Small businesses end up in the maintenance of only some “Stock Registers”, in addition to the usual Financial Accounting. It means that under non-integrated accounting systems, Financial Accounting and Inventory/Cost Accounting books/ ledgers are separately maintained.

To explain an Integrated Accounting System, I here assume that reader already knows the usual procedure of recording transactions where entries are basically recorded in Cash Book and General Journal, then posted to Ledger, then summarized in the form of Trial Balance and then results are taken in the form of Final Accounts.

An Integrated Accounting System would be one where only a single set of books would contain all the information of Financial Accounting as well as Inventory/ Cost Accounting. Such a system would be very difficult to maintain if accounts are maintained manually. But most available Computerized Accounting Systems are Integrated Systems.

I take the example of an Integrated Accounting System (which I have developed myself by the name: “Soft Accounting System”) and explain how it’s functionality differs with Non-Integrated manual Accounting system.

Whereas in manual Financial Accounting, you enter Cash/Bank transactions in Cash Book and enter all other transactions in General Journal; in Soft Accounting System, you record Sale/Purchase transactions in Sale Invoice or Purchase Invoice. In the case of cash purchase/sale, that entry shall automatically be recorded in Cash Book. And in the case of credit purchase/sale, there will be no need to record it in General Journal. With a simple entry in sale or purchase invoice, you will not only get all the Financial Accounting Ledgers and Trial Balance, you will also automatically get your inventory and cost registers. If yours is a trading Business, then with a simple entry in sales invoice form, you will also automatically get Cost of that particular Sale calculated on the basis of both Weighted Average Costing and LIFO Costing methods.

If yours is a manufacturing business, then there is another simple Production Entry Form. You will enter in it only the basic ongoing production data but as a result, not only you will get detailed Production Reports, you will also get updated inventory registers of raw-materials and semi-finished items with a proper breakup of location/process where those semi-finished items have reached so far. When final production process on semi-finished items have been performed, then automatically those semi-finished items are removed from semi-finished inventory registers and go to Finished Goods Inventory Register. And when you will enter new sale invoice, then finished goods stock shall be automatically reduced from the Finished Goods Inventory Register. Not only this, you will also get detailed automated Direct Labor Payroll Reports. In addition, you will also get automated costing reports like Batch Cost Report and like etc. And since Soft Accounting System is an Integrated System, so you will also get automatically updated information in your Financial Accounting Ledgers and Trial Balance as well.

To record daily expenditure and transactions other than Sale/Purchase (or Sale/Purchase Returns – which are to be recorded in Debit/Credit Notes), there are also Cash Book and General Journal entry forms. So this is the way an Integrated Accounting System works.

Details about my self developed Integrated and Non-Integrated Accounting Software Applications ON THIS LINK.

Posted in -Home-, Accountancy and Computerized Accounting | 5 Comments »

Why Qualification is a Must for getting a Job…???

Posted by khuram on June 16, 2010

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Yesterday I google searched to see exactly why employers demand degree certificates from job applicants. One convincing argument that I found was that presence of degree/certificate gives enough surety that the applicant is determined … he has spend 24/25 years of his life in order to become a good employee. He is submissive and he shall obey the commands of employer. Employers don’t like that employees be able to “plan” the things by themselves. Employers tend to keep planning aspects in their own hands. They prefer and like their own plannings. They don’t really need employees competent enough to plan the things. They only need obedient people who have good track record of completing “assignments” in time.

Education system may be all good in terms of recognition in employment sector. But role of education system is not to spread knowledge. It’s role is to produce obedient people to meet the ongoing demands of employers.

Posted in -Home-, Education & Examination System, Pakistan, Philosophy, Theory of Knowledge | Leave a Comment »