• Title/Summary/Keyword: the cause-effect relationship

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A Structural Relationship among Job Requirements, Job Resources and Job Burnout, and Organizational Effectiveness of Private Security Guards (민간경비원의 직무요구 직무자원과 소진, 조직유효성의 구조적 관계)

  • Kim, Sung-Cheol;Kim, Young-Hyun
    • Korean Security Journal
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    • no.48
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    • pp.9-33
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    • 2016
  • The purpose of the present study was to find out cause-and-effect relationship between job requirements and job resources, with job burnout as a mediator variable, and the effects of these variables on organizational effectiveness. The population in the present study was private security guards employed by 13 private security companies in Seoul and Gyeonggi-do areas, and a survey was conducted on 500 security guards selected using purposive sampling technique. Out of 460 questionnaires distributed, 429 responses, excluding 31 outliers or insincere responses, were used for data analysis. For analysis, data were coded and entered into SPSS 18.0 and AMOS 18.0, which were used to analyze the data. Descriptive analyses were performed to find out sociodemographic characteristics of the respondents. The exploratory factor analysis (EFA) and confirmatory factor analysis (CFA) were used to test the validity of the measurement tool, and the Cronbach's Alpha coefficients were calculated to test the reliability. To find out the significance of relationships among variables, Pearson's correlation analysis was performed. Covariance Structure Analysis (CSA) was performed to test the relationship among latent factors of a model for job requirements, job resources, job burnout, and organizational effectiveness of the private security guards, and the fitness of the model analyzed with CSA was determined by the goodness-of-fit index ($x^2$, df, p, RMR, GFI, CFI, TLI, RMSEA). The level of significance was set at .05, and the following results were obtained. First, even though the effect of job requirements on job burnout was not statistically significant, it had a positive influence overall, and this result can be considered such that the higher the perception of job requirements by the member of the organization, the higher the perception of job burnout. Second, the influence of job resources on job burnout was negative, which can be considered that the higher the perception of job resources, the lower the perception of job burnout. Third, even though the influence of job requirements on organizational effectiveness was statistically nonsignificant, it had a negative influence overall, and this result can be considered that the higher the perception of job requirements, the lower the perception of organizational effectiveness. Fourth, job resources had a positive influence on organizational effectiveness, and it can be considered that the higher the perception of job resources, the higher the perception of organizational effectiveness. Fifth, the results of the analysis between job burnout and organizational effectiveness revealed that, even though the influence of job burnout on organizational effectiveness was statistically nonsignificant, it had partial negative influences on sublevels of organizational effectiveness, and this may suggest that the higher the perception of job burnout by the organization members, the lower the organizational effectiveness. Sixth, the analysis of mediating role in the relationship between job requirements and organizational effectiveness, job burnout was taking partial mediating role between job requirements and organizational effectiveness. These results suggest that reducing job burnout by managing job requirements, organizational effectiveness that leads to job satisfaction, organizational commitment, and turnover intention can be maximized. Seventh, the analysis of mediating role in the relationship among job requirements, job resources, and organizational effectiveness, job burnout was assuming a partial mediating role in the relationships among job requirements, job resources, and organizational effectiveness. These results suggest that organizational effectiveness can be maximized by either lowering job requirements or burnout management through reorganizing job resources.

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Assessing Middle School Students' Understanding of Radiative Equilibrium, the Greenhouse Effect, and Global Warming Through Their Interpretation of Heat Balance Data (열수지 자료 해석에서 드러난 중학생의 복사 평형, 온실 효과, 지구 온난화에 대한 이해)

  • Chung, Sueim;Yu, Eun-Jeong
    • Journal of the Korean earth science society
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    • v.42 no.6
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    • pp.770-788
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    • 2021
  • This study aimed to determine whether middle school students could understand global warming and the greenhouse effect, and explain them in terms of global radiative equilibrium. From July 13 to July 24 in 2021, 118 students in the third grade of middle school, who completed a class module on 'atmosphere and weather', participated in an online assessment consisting of multiple-choice and written answers on radiative equilibrium, the greenhouse effect, and global warming; 97 complete responses were obtained. After analysis, it was found that over half the students (61.9%) correctly described the meaning of radiative equilibrium; however, their explanations frequently contained prior knowledge or specific examples outside of the presented data. The majority of the students (92.8%) knew that the greenhouse effect occurs within Earth's atmosphere, but many (32.0%) thought of the greenhouse effect as a state in which the radiative equilibrium is broken. Less than half the students (47.4%) answered correctly that radiative equilibrium occurs on both Earth and the Moon. Most of the students (69.1%) understood that atmospheric re-radiation is the cause of the greenhouse effect, but few (39.2%) answered correctly that the amount of surface radiation emitted is greater than the amount of solar radiation absorbed by the Earth's surface. In addition, about half the students (49.5%) had a good understanding of the relationship between the increase in greenhouse gases and the absorption of atmospheric gases, and the resulting reradiation to the surface. However, when asked about greenhouse gases increases, their thoughts on surface emissions were very diverse; 14.4% said they increased, 9.3% said there was no change, 7.2% said they decreased, and 18.6% gave no response. Radiation equilibrium, the greenhouse effect, and global warming are a large semantic network connected by the balance and interaction of the Earth system. This can thus serve as a conceptual system for students to understand, apply, and interpret climate change caused by global warming. Therefore, with the current climate change crisis facing mankind, sophisticated program development and classroom experiences should be provided to encourage students to think scientifically and establish scientific concepts based on accurate understanding, with follow-up studies conducted to observe the effects.

The Effect of Company Characteristics and Individual Characteristics Perceived by Employees of Small Businesses on Job Satisfaction : Focusing on Intermediary Role of Company Innovation (중소기업 종업원의 지각된 기업특성과 개인특성이 직무만족에 미치는 영향 : 기업 혁신성의 매개 역할을 중심으로)

  • Yoo, Eun Hee;Ha, Kyu Soo
    • Asia-Pacific Journal of Business Venturing and Entrepreneurship
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    • v.10 no.1
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    • pp.1-12
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    • 2015
  • The purpose of this study is to examine the effect of company characteristics and individual characteristics perceived by employees of small businesses on job satisfaction and especially to seek activation of the organization by extending from previous studies to examine the intermediary role of company innovation and applying management measures focusing on the environment of changing global society where CEOs of small businesses cause job satisfaction of organizational members and present the direction for the improvement of management and institutional development. This study was carried out for about 2 months targeting employees of small businesses and the results of empirical analysis are as follows: First, company characteristics and individual characteristics perceived by employees of small businesses turned out to have a positive (+)effect on job satisfaction but the hypothesis that job stress affects job satisfaction was not significant. Second, of the effects of company characteristics and individual characteristics perceived by employees of small businesses on company innovation, organization flexibility and CEO's leadership, company communication and degree of cooperation between departments, individuals, challenge of individuals perceived individual characteristics were found to affect company innovation but the hypothesis that job stress affects it was not significant. Third, company innovation was found to have a positive (+)effect on job satisfaction and fourth, in the intermediary effect verification of company innovation between company characteristics and individual characteristics perceived by employees and job satisfaction, organization flexibility and communication, collaboration turned out to perform partial intermediation and CEO's leadership to perform full intermediation and individual challenge performance to perform full intermediation and the intermediary effect of job stress was not proven. These results are company characteristics and individual characteristics that is the perception of the independent variables in SME employees is not only a direct relationship with job satisfaction, suggesting that also has an indirect effect is mediated depending on the innovation of the company. Therefore, it can be seen that even for the innovation performance of enterprises is important to increase the job satisfaction of employees of SMEs. In particular, the conductivity of the leadership and individual parameters so completely over the innovativeness of the company is the result of job satisfaction itgetda can be said that the innovation efforts of the organization is effective at the same time be pursued.

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Simultaneous Effect between eWOM and Revenues: Korea Movie Industry (온라인 구전과 영화 매출 간 상호영향에 관한 연구: 한국 영화 산업을 중심으로)

  • Bae, Jungho;Shim, Bum Jun;Kim, Byung-Do
    • Asia Marketing Journal
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    • v.12 no.2
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    • pp.1-25
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    • 2010
  • Motion pictures are so typical experience goods that consumers tend to look for more credible information. Hence, movie audiences consider movie viewers' reviews more important than the information provided by the film distributor. Recently many portal sites allow consumers to post their reviews and opinions so that other people check the number of consumer reviews and scores before going to the theater. There are a few previous researches studying the electronic word of mouth(eWOM) effect in the movie industry. They found that the volume of eWOM influenced the revenue of the movie significantly but the valence of eWOM did not affect it much (Liu 2006). The goal of our research is also to investigate the eWOM effects in general. But our research is different from the previous studies in several aspects. First, we study the eWOM effect in Korean movie industry. In other words, we would like to check whether we can generalize the results of the previous research across countries. The similar econometric models are applied to Korean movie data that include 746,282 consumer reviews on 439 movies. Our results show that both the valence(RATING) and the volume(LNMSG) of the eWOM influence weekly movie revenues. This result is different from the previous research findings that the volume only influences the revenue. We conjectured that the difference of self construal between Asian and American culture may explain this difference (Kitayama 1991). Asians including Koreans have more interdependent self construal than American, so that they are easily affected by other people's thought and suggestion. Hence, the valence of the eWOM affects Koreans' choice of the movie. Second, we find the critical defect of the previous eWOM models and, hence, attempt to correct it. The previous eWOM model assumes that the volume of eWOM (LNMSG) is an independent variable affecting the movie revenue (LNREV). However, the revenue can influence the volume of the eWOM. We think that treating the volume of eWOM as an independent variable a priori is too restrictive. In order to remedy this problem, we employed a simultaneous equation in which the movie revenue and the volume of the eWOM can affect each other. That is, our eWOM model assumes that the revenue (LNREV) and the volume of eWOM (LNMSG) have endogenous relationship where they influence each other. The results from this simultaneous equation model showed that the movie revenue and the eWOM volume interact each other. The movie revenue influences the eWOM volume for the entire 8 weeks. The reverse effect is more complex. Both the volume and the valence of eWOM affect the revenue in the first week, but only the volume affect the revenue for the rest of the weeks. In the first week, consumers may be curious about the movie and look for various kinds of information they can trust, so that they use the both the quantity and quality of consumer reviews. But from the second week, the quality of the eWOM only affects the movie revenue, implying that the review ratings are more important than the number of reviews. Third, our results show that the ratings by professional critics (CRATING) had negative effect to the weekly movie revenue (LNREV). Professional critics often give low ratings to the blockbuster movies that do not have much cinematic quality. Experienced audiences who watch the movie for fun do not trust the professionals' ratings and, hence, tend to go for the low-rated movies by them. In summary, applied to the Korean movie ratings data and employing a simultaneous model, our results are different from the previous eWOM studies: 1) Koreans (or Asians) care about the others' evaluation quality more than quantity, 2) The volume of eWOM is not the cause but the result of the revenue, 3) Professional reviews can give the negative effect to the movie revenue.

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The Effect of the Degree of Competition of the Hospital Market Regions on Clinic's Rate of Antibiotics Prescription (병원시장지역 내 경쟁 정도가 의원급 의료기관의 항생제 처방률에 미치는 영향)

  • Jo, Changik;Lim, Jae-Young;Lee, Soo Yeon
    • KDI Journal of Economic Policy
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    • v.30 no.2
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    • pp.129-155
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    • 2008
  • The rate of antibiotics prescription for an acute airway infection significantly varies depending upon the diagnosis type, specialty, and the location of the hospital along with many other related factors. The objective of this study is to empirically investigate the possible relationship between the antibiotics prescription rates for an acute airway infection and the degree of competition in the hospital market regions of mainly the providers of primary medical care services such as clinics, internal medicines, pediatrics and otorhinolaryngology department. Using the data from Health Insurance Review and Assessment Service (HIRA) regarding the hospitals' antibiotics prescription rates for the acute airway infection and controlling for selected variables of demand and supply sectors, this study tries to figure out that the degree of competition in the hospital market, regardless of what type of competition indexes we employed, has a statistically significant effect on the variations of antibiotics prescription rate of the clinics in local areas. This result implies that as an economic consideration itself, the change in the degree of competition in the hospital market can play a crucial role influencing the treatment behaviors of the medical doctors. More specifically, this study reveals that as the degree of competition increases the antibiotics prescription rate goes up. This result means that if the market becomes more competitive in a specific region so that it might cause a reduction in doctor's income, doctors with rational decision-making process, recognize that the benefit created from inducing patients' seemingly unnecessary demand for medical care (income effect) would be higher than the costs associated with sustaining their targeted income (substitution effect). It is because that the doctors are more likely to prescribe antibiotics which create relatively higher margins than other medical care services in order to sustain their targeted income when the hospital market competition becomes tighter. Even though this study empirically confirms that antibiotics prescription can be affected by the economic incentives, it still raises following issues as limitations of the study: first issue is about the representativeness of the hospital regions segregated for this study, which might be weak in explaining whether these regions are mutually exclusive in reality. Patients actually consider the quality of services, transportation cost, time costs, and any other related factors choosing the doctors or hospitals, and in that sense, this study rules out 'border-crossing' in using the medical care services. Second issue arises in capturing the data of antibiotics prescription rate. Since we use the average rate for each medical institution, we cannot figure out the average rate for each patient so that we are not able to control for the variation of patients' medical conditions. It is because of the unavailability of data regarding each patient's medical condition from HIRA. Thirdly, since this study mainly analyzes the medical institutions providing primary care such as clinics, internal medicines, pediatrics, and otorhinolaryngology department, it is skeptical of whether those institutions can represent the hospital market in respective regions and truly reflect the degree of competition. It needs to extend the study areas and disease types as well as any micro data for future studies.

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The Effects of Service Quality on Shopping Value and Repatronage Intention: The Case of Specialty Coffee Shops (서비스 품질이 쇼핑가치와 재이용의도에 미치는 영향: 커피전문점을 중심으로)

  • Cho, Hyun-Jin
    • Journal of Distribution Science
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    • v.10 no.4
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    • pp.21-28
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    • 2012
  • While recent economic stagnation has left consumers dispirited, rapid growth has been seen in the domestic coffee industry recently. With the growth in coffee consumption, a tremendous increase in the number of specialty coffee shops has been seen in the domestic coffee market. The expectation that markets specializing in coffee will continue to grow for a long time will cause existing enterprises to expand their shops and increase the rate of entry of new shops. Intense competition in the domestic coffee market will force companies to create a competitive advantage through differentiated marketing strategies. This paper focuses on how the shopping value and repatronage intention of customers using coffee shops is affected by service quality. Moreover, this paper intends to examine the service quality that is critical for the successful management of relationships and the values that are important to consumers. For these purposes, the discriminative effect of service quality on shopping value was analyzed and the effect of utilitarian and hedonic value on repatronage intention was reviewed. The results of this study are detailed below. First, interaction and outcome quality can positively affect the hedonic value, whereas environment quality is not meaningful for utilitarian value. Considering the relative effect on utilitarian value outcome, the effect of outcome quality is greater than that of interaction. This result shows that the role of outcome quality is most important for improving utilitarian value. Second, outcome and environment quality positively affect hedonic value; however, interaction quality does not meaningfully increase hedonic value. These results indicate that customers recognize hedonic value on the basis of their evaluation of the service outcomes and the background to delivery service. In particular, it was revealed that the relative effect of outcome quality on hedonic value is greater than that of environment quality. Third, both utilitarian value and hedonic value had a positive effect on repatronage intention. The relative influence of the hedonic value is that the shopping value affects the repatronage intention more than the utilitarian value. These results mean that customers recognize coffee shops as spaces for satisfying utilitarian and hedonic values, and they place more importance on the benefits of the emotional experience than functional needs. Finally, this study suggests that output quality is more important than other service factors, and the results of this paper give some implications to the coffee shop industry that customers seek utilitarian needs based on economic value and place more weight on hedonic value, such as that offered by relationship media.

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A Reexamination of the Impact of the Fit of Corporate Social Responsibility on the Brand Attitude: The Perspective of Brand Hierarchy (기업의 사회적 책임(CSR)활동의적합성이 브랜드 태도에 미치는 영향에 관한 재고찰: 브랜드 계층구조 관점에서)

  • YANG, JAEHO;Seo, Hae-Jin;Song, Tae-Ho
    • (The) Korean Journal of Advertising
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    • v.27 no.8
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    • pp.59-90
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    • 2016
  • Consumers demand that corporates fulfill their social responsibility by exerting influence over not only economical values but also social values in markets. Given such a social mood, most corporates are actively engaging in Corporate Social Responsibility(CSR) activities, and marketing scholars continue to study the effects of such CSR activities. Numerous such studies examined the relationship between CSR activity and brand equity. Moreover, virtually, a majority of these studies focused on consumer responses to CSR activity from an individual brand perspective. In a situation in which brand management must consider the spillover effects of brands, firms holding various brands should consider these spillover effects when they establish CSR activity strategies. Therefore, we examine the effects of CSR activity using a comprehensive approach that considers the hierarchy of brands. Additionally, we develop a new perspective on fit that has been used as a major influence on the effects of CSR activity. We argue that the mixed results of the impact of fit regarding the effect of CSR activities is attributed to the influence of connections among brands based on the hierarchy of brands. We then examine the effect of two types of CSR activity strategies that reflect the relativity of fit. The results reveal that there was no difference in impact of the two strategies based on unique roles and traits of corporate brand and effects of low fit. Also, we found that the corporate brand focused strategy creates a greater change in consumers' attitudes than does an individual brand focused strategy in the case of a particular brand. This finding is meaningful because it indicates that a hierarchy of brands may relatively reduce the impact of the role of fit, unlike general arguments from previous related research. Second, the spillover effects from the CSR activities of individual sub-brands belonging to the same corporate brand were confirmed. Therefore, we clearly verified the role of the hierarchy of brands. Although both strategies cause changes in consumer attitude toward brands engaged in CSR activity, overall, a corporate brand focused strategy turned out to be more effective than an individual brand focused strategy because of the spillover effects of brands. Third, this study verified the effect of a corporate brand focused strategy through a moderating effect analysis of the degree of association between individual brands and corporate brand. Given these results, we identified a moderating role in the degree of association and the changes in consumer attitudes toward both main brands engaged in CSR activities and other different individual brands, which were caused by the spillover effects of brands. Finally, this study addresses implications and limitations.

A Study on the Influence of the Quality of the Care Service of the Caregivers in a Nursing Hospital for the Elderly in the Intent of Reuse: Focusing on Chinese-Korean Caregivers (노인요양병원 간병인의 돌봄서비스 질이 재이용의도에 미치는 영향 연구: 중국동포 간병인을 중심으로)

  • Song, In Sik
    • Journal of the Korea Academia-Industrial cooperation Society
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    • v.20 no.5
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    • pp.456-467
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    • 2019
  • The rapid aging of South Korea is causing difficulties in meeting the man-power demands for the increasing number of elderly nursing hospitals. To cope with this gap in supply and demand, more foreign workers are now being hired to provide elderly care services. The purpose of this study is to examine the influence of the quality of the care services provided by foreign caregivers in nursing hospitals for the elderly. For this purpose, the researcher surveyed 249 senior citizens who are receiving care services from Chinese-Korean caregivers in six elderly nursing hospitals in Seoul and Gyeonggi region. The data collected from the survey were analyzed through SPSS and AMOS. The result of the analyses showed that, first, the quality factors of the care services of the caregivers at elderly nursing hospitals, such as reliability, responsibility, empathy, formality, and expertise, all turned out to have a positive correlation with the trust in, satisfaction with, and intent to revisit the institute. Second, thefluencing factors for the qualities of the care services by Chinese-Korean care givers in elderly nursing hospitals included responsiveness, materiality, and expertise, while the factors that influenced satisfaction with significance included trust, materiality, and expertise. Also, the trust in and satisfaction with the institution both influenced the intent of revisit in a positive manner. Third, the indirect effect of trust in the relationship between the quality of the care services by the Chinese-Korean care givers and satisfaction, appeared in all independent variable except for responsiveness, which was a factor of the quality of the care services. And, it was also shown that the satisfaction level had an indirect effect in the relationship between trust and revisiting intent. The result of this study implicates that, in order to cause the quality of the care service by the Chinese-Korean care givers in elderly nursing hospitals to increase the revisit rate, it would be necessary to provide a strategy to increase the levels of trust and satisfaction through a higher quality level of care services.

A Study of Job Satisfaction and Related Factors of the National Hospital Nurses (국립병원 간호사의 직무만족과 관련요인 연구)

  • Suh Gil-Hee;Kim Ok-Hee
    • Journal of Korean Public Health Nursing
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    • v.7 no.2
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    • pp.53-66
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    • 1993
  • By this time, a few of previous studies of factors related to separation from their jobs and job satisfaction only have dealt with the separation rate. the cause of separation and related factors that induce job satisfaction and incentive factors, the actualities of morale some suggestions for reduction of the separation rate. This study is attempted to determine factors that have effect on job satisfaction of national hospital nurses. and to proide information and materials for the development of the administration of nursing through the appreciation of factors influencing on job satisfaction between isolated ward nurses and general ward nurses working at national hospitals. 185 nurses of national hospitals responsed th this study, and were divided into two groups. Group 1: 57 nurses working at isolated wards for tuberculosis patients and Group 2 : 128 nurses at general wards. Relevant data were collected from August, 5, 1992 through August 20, 1992. The questionnaire consisted of 8 genalized items and 4 items concerning job satisfaction. The collected data were processed with SPSS, and the relationship among vaviables was analyzed by means of $X^2-test$, Pearson Correlation, Multiple Regression. The results of this study are as follows: 1. There is no significant difference between two groups in terms of generalized items. Age distributions show $44.3\%$ under the category of less than 34. and $55.7\%$ under the category more than 35, $19.3%$ was single and $74.6\%$ was married respectively. 2. $79.4\%$ of the nurses have the desire to have in-service education under the satisfactory physical environments such as welfare system, accommodating structures and facilities, instruments or management systems of the hospital, but under the category of unsatisfactory circumstances, $60.3\%$ have the intention of having in- service education. The concern in terms of in-service education shows statistically significant difference between two groups $(X^2=8.85,\;p<0. 05)$. This result accepts the hypothesis that good physical environments could intensify interests in service education. 3. The extent of satisfaction related to psychological environments is heightend according to good physical environments. In result, the hypothesis that the extent of satisfaction in terms of physical environments could raise satisfaction about psychological environment is accepted. 4. In the light of the extent of satisfaction about physical environments, $33.3\%$ of isolated ward nurses are satisfied with physical environments, but only $11.7\%$ of general ward nurses are satisfied. $(X^2=10.88,\; p<0.01)$. This result shows that the satisfaction degree about phusicalenvironments of isolated war nurses was higher than that of general ward nurses in spite of high physical and psychological risks due to exposure to infection. Consequently. the hypothesis was rejected that the satisfaction degree about physical environments would be lower in isolated ward nurses than in general ward nurses. 5. The fact that $87.7%$ of isolated ward nurses took interest in service education and $53.19\%$ of general ward nurses took interest in service education demonstrats that isolated ward nurse have more interest in service education than gerneral ward nurses. The result shows that the hypothesis is accepted that isolated ward nurses would have mor interests in service education than general ward nurses. 6. In the extent of satisfaction about physical environments such as morale human relationship promotion, there is no significant difference between two groups in terms of statistics. The hypothesis is rejected that satisfaction about psychologic environments would be high in isolated ward nurses than in general ward nurses. In conclusion. factors influencing on job satisfaction are considered to have effect on. another, and also interdisciplinary amelioration of factors accompanied with systematic inter cooperative investigation is necessary.

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A Case Study of Successful Strategy for Farm's Franchise Commercialization through Local Agricultural Products - Focusing on the case of Jung Donuts Co. Ltd., in Yeongju, Gyeongbuk - (지역농산물을 이용한 농촌프랜차이즈 사업화 성공 사례연구 - 경북 영주시 (주)정도너츠 사례를 중심으로 -)

  • Seo, Min-gyo;Hwang, Bo-Jun;Song, Ji-Hyeon
    • The Korean Journal of Franchise Management
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    • v.4 no.1
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    • pp.1-24
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    • 2013
  • The purpose of this work is to analyze the case that Yeongju Municipality Government of Gyeongbuk and Jung Donuts Co., Ltd., a franchise company, activated local economy through Farm's Franchise Commercialization (FCC) and to establish the concept of FCC. As a food service franchise company, Jung Donuts specializes in making and selling glutinous rice donuts. In cooperation with Commodity Dept. of Yeongju Municipality Government, the company cultivates raw materials under contract. Such farm's franchise business has the following advantages: First, it is meaningful in the point that it contributes to opening a new market of local agricultural products in a stable way. In short, by using most agricultural products of Yeongju as raw materials, the business serves as a stable market for farmers. Secondly, it is possible to set a reasonable price through stable supply of raw materials. It is to advantages of both producers and consumers. Thirdly, the business brings about the effect of employment rise. It can cause increases in employment of franchise head office and its agencies, and of the Commodity Dept.. Lastly, it produces the promotion effect of local special products. By expanding its agencies across the country, a franchise business can promote the items of raw materials in terms of marketing. The successful FCC needs to meet three requirements as follows. The first one is to establish systematic logistic system. Stable logistic system is required in order to directly distribute and deliver products to nationwide agencies by a producing place. The second one is constant R&D activity. Through the activity of R&D of raw materials and equipment, they should be used most effectively. The third one is to build mutual trust relationship. For long-term business achievements, it is required to establish mutual trust relationship in which relevant entities share their visions with each other and cooperate with each other.