ORGANIZATIONAL ORGANIZATIONAL CULTURE OF EDUCATIONAL INSTITUTION IN INDONESIA ORGANIZATIONAL CULTURE OF EDUCATIONAL INSTITUTION IN INDONESIA

Organizational culture is defined as the underlying beliefs, assumption, values and ways of interacting that contribute to the unique social and psychological environment of an organization. There are two types of culture, i.e. Material culture and non-material culture, which had been organized and maintained according to the needs of human being. Source of the culture is originated from the product of human being’s thought. Human being itself is a unique individual whose behaviour influenced by many variations and shapes of culture in society. As for the object of organizational culture in educational institution, it included quality, achievement, and professionalism which can be  developed by educational institution.

Return of Investment to Education and Health in Pakistan: An Empirical Investigation

The concept of human capital recognizes that not all individuals are equal and that the quality of their performance can be improved by investing in them that makes them more productive for economic activities and economy as a whole. Therefore investment in two main components that is education and health are discussed in this study because these two are the main components to improve human capital. Education and health are the two important components of human capital. Education is a powerful instrument in reducing poverty, enhancing earnings, economic growth, empowering people, and promoting a healthy and flexible environment and creating a competitive economy. It plays an important role in shaping the ways to become skilled and handle the complexities of economic growth by the future generations. On the other hand, health is a basic and key ingredient of human capital and an important determinant of economic growth. The main objective of this study was to examine the returns of investment to education and health in Pakistan and to evaluate their impact on the economic growth of Pakistan, using cross sectional data from district Multan and time series data from Pakistan for the period of 1972 to 2016. To achieve this objective, the study was completed in different phases. In the first phase, a comprehensive literature review was carried out using standard sources and tools for the better understanding of theoretical and empirical aspects of the study at national and international levels. In the second phase, a sample of 850 wage earners was randomly collected from city district Multan for micro data analysis by using questionnaire. Mincer earning function (1974) was used for this purpose and returns were evaluated in the form of an increase in earnings for both education and health investment. In case of education returns to total years of education, different levels of education and quality of education are estimated and disaggregated for gender, region and marital status etc. Moreover, some determinants of individual’s earnings are also evaluated. In case of health, we discussed anthropometric measures; self-reported health status, nutritional factor and some other determinants of health and evaluated their impact on earnings of the individual. In the second phase, secondary data was collected from the economic survey of Pakistan and World Development Indicators for the period of 1972 to 2016. A total of fourteen variables were viii selected for the study, and three main econometric models were tested for returns of investment to education and health and one for their impact on economic growth. The collected data for these variables were analyzed using computer software E-Views version 9 for secondary data and Minitab version 16 for primary data. Ordinary least square method was used for primary data analysis while during secondary data analysis different econometric techniques were applied to examine the stationarity of data and long run and the short run relationship between education, health and economic growth. For stationarity, long run and short run relationship Augmented Dickey Fuller (ADF) test, Johansen Cointegration, Error Correction Mechanism (ECM) and Granger causality were used respectively. The results of these tests confirmed that these models are best fitted. The findings of Augmented Dickey Fuller test show that all variable are unit root at level and stationary at first difference or co-integrated of order one. The results of Johansen cointegration and VECM confirmed that education, health and economic growth have a long run relationship whereas; Error Correction Mechanism also confirmed their short run relationship. Theoretical background of investment in education and health and ways to find returns of investment are also discussed in detail. Then a large section is devoted to discussing policies regarding health and education, their targets and results. As district Multan is selected as sample area, therefore, a detailed profile of this district and situation of health and education services in that sector are also presented in detail in a separate section. The results of ordinary least square show that investment in education and health has a positive and significant impact on the earnings of the individual. In case of investment in education, we came to know that higher education yields higher returns in both cases when education is treated as a continuous variable and discrete variable. Returns for investment are higher for female as compared to male similarly in urban areas returns are higher due to higher opportunities as compared to rural areas and unmarried workers got higher returns as compared to married workers due to family constraints. Moreover, we also explored that medium of instruction plays a very significant role in earnings of an individual. In case of health investment, we explored that height as a measure of long run health investment and body mass index as a short run health investment plays a significant role in earnings of an ix individual. As these are measures of strength and shows the childhood level of investment in health and influence of some environmental factors also. Returns of this investment are discussed along with gender differences. We also explored that investment in nutritious food, pure drinking water; clean environment, precautionary measures, exercise and availability of medical facilities all play a significant role in earning determination. At the macro level, we explored that public investment in health is very productive and we used infant mortality rate as a proxy for health return and explored the impact of health expenditure as a percentage of GDP, availability of doctors, fertility rate and literacy rate on this outcome variable. Similarly, we explored the impact of government expenditure at the primary, secondary and tertiary level on education enrollment index and found a positive and significant relationship. This study also found that education; health and economic growth are co-integrated and have a long run relationship. Health and education play a major and important role in determining the long run economic growth of Pakistan. The study confirmed that if the government increases the budget for education and health, more people will be educated which will result in more educated workers and resultantly more production. Similarly, it will also have a good impact on the health of the general public. The study suggests that the government of Pakistan should consider education and health sectors while formulating policies and must allocate sufficient budget for them.