UNIVERSITY OF DEFENCE / CZECH REPUBLIC. Economics and Management

Transcription

1 UNIVERSITY OF DEFENCE / CZECH REPUBLIC Economics and Management 2013

2 UNIVERSITY OF DEFENCE / CZECH REPUBLIC ECONOMICS AND MANAGEMENT Economics and Management - p Brno 30 May 2013 Published by University of Defence in Brno

3 ISSN

4 EDITORIAL BOARD EDITOR IN CHIEF Pavel FOLTIN Faculty of Economics and Management, University of Defence, Brno Czech Republic EDITORIAL BOARD Ladislav ANDRASIK Faculty of Electrical Engineering and Information Technology, Slovak University of Technology in Bratislava, Slovak Republic Ghita BARSAN Nicolae Balcescu Land Forces Academy, Sibiu, Romania Vasile CARUTASU Nicolae Balcescu Land Forces Academy, Sibiu, Romania Miroslav CEMPIREK Faculty of Economics and Management, University of Defence, Brno Czech Republic Marijana CINGULU Faculty of Economics & Business, University of Zagreb, Chorvatsko Petr CECH Institute of Hospitality Management, Prague, Czech Republic Monika GRASSEOVA Faculty of Economics and Management, University of Defence, Brno Czech Republic Frantisek HANZLIK Faculty of Economics and Management, University of Defence, Brno Czech Republic Hubert HRDLICKA Language Training Centre, University of Defence, Brno Czech Republic Josef KALAS Faculty of Economics and Management, University of Defence, Brno Czech Republic Ales KOMAR Faculty of Economics and Management, University of Defence, Brno Czech Republic Miroslav KRC Faculty of Economics and Management, University of Defence, Brno Czech Republic Oto KUBIK Academy STING Private College, Brno, Czech Republic Marek KULCZYCKI The Tadeusz Kosciuszko Land Forces Military Academy, Poland Stefan KURINIA National Defence University, Warszaw, Poland

5 Ivan MALY Faculty of Economics and Administration, Masaryk University, Brno, Czech Republic Ivan MRAZ General Staff, Prague, Czech Republic Árpad POHL Faculty of Military Science and Officer s Training, National University of Public Service, Budapest, Hungary Ladislav POTUZAK Faculty of Economics and Management, University of Defence, Brno Czech Republic Milan SOPOCI Armed Forces Academy of General Milan Rastislav Štefánik, Liptovský Mikuláš, Slovak Republic Oleg STANEK The University of Quebec at Rimouski, Canada Jiri URBANEK Faculty of Economics and Management, University of Defence, Brno Czech Republic Cezar VASILESCU Regional Department of Defense Resources Management Studies (DRESMARA), Brasov, Romania Jaroslav ZELENY Faculty of Economics and Management, University of Defence, Brno Czech Republic Iva ZIVELOVA Faculty of Business and Economics, Mendel University of Agriculture and Forestry in Brno, Czech Republic EXECUTIVE EDITOR Vitezslav JAROS Faculty of Economics and Management, University of Defence, Brno Czech Republic Copyright 2013 All rights reserved. No part of this publication may be reproduced without the prior permission of University of Defence in Brno University Press.

6 C O N T E N T S Štefan ANTOLÍK COMPARISON OF TOOLS FOR INFORMATION SECURITY MANAGEMENT SYSTEM p. 7 Alena BUMBOVÁ, Zbyněk VEČEŘA, Pavel MIKUŠKA, Josef KELLNER and Alena LANGEROVÁ DEVELOPMENT AND OPTIMIZATION OF THE UV REDUCER FOR THE DETERMINATION OF EXPLOSIVES p. 15 Monika DAVIDOVÁ THE EDUCATION IN THE AREA OF CRISIS MANAGEMENT.. p. 21 Lucie DOUDOVÁ and David HAMPEL TESTING STRUCTURAL CHANGES IN ECONOMIC TIME SERIES... p. 29 Emilie FRANKOVÁ EFFECTIVE INTERPERSONAL COMMUNICATION: UNDERSTANDING OF THE TERM COMMUNICATION BY FUTURE PROFESSIONALS.. p. 38 Vendula HYNKOVÁ FISCAL RESTRICTION AND ITS IMPACT ON THE ECONOMY INCLUDING THE MILITARY ASPECTS... p. 47 Zbyšek KORECKI, Radka LOPOUROVA, Milan LAUBER and Samuel A. DARKWAH CUSTOMER SERVICE OF SUPPLY CHAIN MANAGEMENT OPERATION WITHIN ASSA ABLOY CZECH & SLOVAKIA p. 53 Vítězslav RASZKA and Miroslav KRČ ECONOMIC IMPACTS OF PEACEKEEPING OPERATIONS ON LOCAL ECONOMY (HOST NATION) p. 61 Veronika SADOVSKÁ and Josef NAVRÁTIL HEALTH PROTECTION OF FIREFIGHTERS AND OTHER PERSONS AGAINST HARMFUL SUBSTANCES FROM FIRES... p. 68 Ján SPIŠÁK MILITARY CONCEPTS A BACKGROUND FOR FUTURE CAPABILITIES DEVELOPMENT p. 75 Marek ŠOLC ENERGY SECURITY AN IMPORTANT ASPECT OF NATIONAL SECURITY... p. 82 The Authors Bibliographies:... p. 88 The Reviewers Bibliographies:... p. 91 5

7 The language revision has not been made. The authors are responsible for the papers content. 6

8 COMPARISON OF TOOLS FOR INFORMATION SECURITY MANAGEMENT SYSTEM Štefan Antolík Abstract: The article deals with the analysis of risks in information security management system, briefly describes the current international standards focused on information security. Follow, article describes the process of the risk analysis in the process of information security management, describes the methods used for risk analysis. In conclusion, the article is a comparison of selected methods used for risk analysis. Keywords: security, analysis, tools, information 1. Introduction Information security (IS) as any area of human life develops dynamically. A typical problem for some organizations is the lack of attention to information security, lack of time and financial resources to this area, insufficient number of independent skilled workers who deal with information security, improper configuration of some key IT equipment and low level of awareness of most workers in the security policy of the organization. The process of analysis and valuation of risk used in the information security management system (ISMS) to identify and quantify the risks the organization of information security. The organization then responds to these identified risks creating security measures that aim to reduce these risks to a tolerable level. This process is repeated periodically. The quality of the analysis is thus strongly linked with the quality of the ISMS, or the rate at which protects the organization [7, 8]. 2. Characteristics of existing international standards in the field of IS The most important standards in the field of information security include the following standards [9]: - ISO/IEC 27000:2005- Information technology Security techniques Information security management systems Overview and vocabulary, - ISO/IEC 27001:2005- Information technology Security techniques Information security management systems Requirements, - ISO/IEC 27002:2005- Information technology Security techniques Information security management systems Code of practice from information security management, - ISO/IEC 27003:2010- Information technology Security techniques Information security management systems Information security management systems implementation guidance, - ISO/IEC 27004:2009- Information technology Security techniques Information security management systems Information security management measurements, 7

9 - ISO/IEC 27005:2011- Information technology Security techniques Information security management systems Information security risk managements, - ISO/IEC 27006:2011- Information technology Security techniques Information security management systems Requirements for bodies providing audit and certification of information security management, - ISO/IEC 27007:2011- Information technology Security techniques Guidelines for information security management systems auditing, - ISO/IEC 27035:2011- Information technology Security techniques Information security incident management. 3. Status of risk analysis in the process of information security management Risk analysis in information systems is essential for an effective system for protecting information systems. The objective of risk analysis is to identify and assess threats to which the information system is exposed in order to be selected relevant measures. The risk analysis identifies threats, and their risks, that is a need to be accepts or correct. In the context of information systems security, risk analysis includes: analysis modules of asset, threat analysis, vulnerability analysis respectively protective measures. To build an effective information security management system we are ISO standards, in particular the specific ISO/IEC 27001, ISO/IEC 27002, TNI ISO/IEC TR (the world's third and fourth parts of this standard, replacing the standard ISO/IEC 27005:2008) and ISO/IEC [1]. Risk analysis is the process, through which are identified security risks that need to be checked and accepted [2, 4]. Risks are assessed in terms of the possible impact caused by disruption of attribute information. ISO/IEC TR provides four basic approaches to risk analysis (basic difference between these approaches is the level of depth of risk analysis) [3]: Use the same basic approach for all information systems. And regardless of the risk to which they are exposed and systems to accept that level of security is not always adequate, - Use an informal approach to risk analysis and focus on the information systems that are viewed as systems exposed to the highest risk, - Perform a detailed analysis of the risks of using a formal approach for all information systems, - Perform a combined approach. This means first starting to realize a general analysis of the risks and identify information systems exposed to high risks. Consequently, for these systems perform a detailed analysis of the risks and all the other systems apply standard measures. 8

10 4. General procedure of risk analysis In the following figure is the procedure and steps, which risk analysis consists. Risk Analysis Determine the boundaries of the analysis Identification of assets Asset valuation and determination of dependency Assessment of threats Assessment of vulnerability Identification of existing / planned measures Evaluation of risk Figure 1 The process of risk analysis comprising a detailed description [6] - Determination of the boundaries of the risk analysis: Limit the risk analysis is an imaginary line dividing the assets, which are included in the analysis of other assets. In determining the boundaries of the analysis is based on the plans of management, or from the initial study. Assets that are due to the ongoing process to reduce the risk to the relationship management will be included in the analysis and will lie inside the boundaries of the analysis. Other assets will lie outside the limits of risk analysis, - Identification and valuation of assets: In this step, there is the formation of the list of assets included in the business environment, processes and information that will be evaluated within the scope of the ISMS design, - Assessment of threats: In this step, there is the formation of the list of threats looming assets generally making use of the list of threats, - Assessment of vulnerability: In this step, there is the formation of the list of potential vulnerability for existing assets based on the list of well-known vulnerabilities, - Identification of existing and planned security measures: Step serves to identify and document all existing and planned measures, which are linked to a list of assets, - Evaluation of risks: Step serves to calculate risk based on established lists of threats and vulnerabilities associated with the assets included on the list. 5. The selected tools used in the process of risk analysis 5.1 Callio Callie Secura Tool created by Callie Technologies is a Web-based tool. Working with databases and allows the user to implement and operate information security management system (ISMS). Supports standard and ISO It can produce documents that are required to obtain certification of these standards. It also provides document management and editing database you use this tool. This tool is also available in the demo version, which is available on the Web site Callie Technologies for trying. From a user perspective, this tool is easy to use since it is a web solution intuitively divided into sections. It contains a system, that is in the work of user helpful explanations and instructions. 9

11 5.2 Cobra Tools made by company C & A Systems Security is a British software system for risk analysis. It allows the organization to focus on the safety of risky assets. Evaluating the potential impact of threats and vulnerabilities, and then generates recommendations and solutions properly. Automatically connects to the impact of possible threats to the assets of the company. It provides the opportunity to ensure as little or no impact on the assets. Tool COBRA is offered only in English language. It is intended primarily for commercial organizations and organizations that are focused on ISO To test the demo version is available on the manufacturer's website. Control tool should be easy for users who are not familiar with tools for analysis and management of risks. There is also an auxiliary user guide. The tool is based on modules, which can be modified to obtain more accurate solutions and recommendations. 5.3 Countermeasures Countermeasures come from USA made by the company Alion. This tool performed the analysis and management of risks based on a series of US-American standards NIST 800 and OMB Circular A-130. The tool lets the user define the evaluation criteria through a "tailor-made" list provides an objective assessment of the assets and determines the safety aspects. The tool is available to the network, as well as in the working configuration. The tool is available only in English language. It is one of the most expensive tools for risk analysis (Enterprise version - $ 14,500). There is a possibility of getting discounts for the academic sector and government organizations. The tool can be as an independent application or as a Web server. It is intended primarily large multinational organizations such as banks, oil companies, insurance companies, universities and public companies. Price for product incorporates a two-day training to work with the application. The system provides automatic installation and simple user interface with an auxiliary manual. The advantage of product is support included in the price. The tool offers the ability to export documents to MS Excel format or save to a database. 5.4 Ear/Pilar This tool for risk analysis comes from Spain and consists of 2 parts, and it is EAR - a commercial product PILAR - limited to public administration. This tool is supported by the Spanish Agency called CCN (Spanish National Agency for Safety). For analysis and risk management this tool is used mainly methodology "Magerit". Supports management of risks in the long term and provides escalating analysis for continuous improvement of the system. It focuses primarily on the qualitative and quantitative analysis and risk management. Assessed operations evaluate their impact on the business area of the company. The tool is available in 4 languages and English, French, Italian and Spanish. Areas that can get this tool for free or discounted are academic organizations and the Spanish public administration. Other areas for which the EAR / PILAR commercially designated as multinational companies, local government organizations and large companies. The tool is designed as a client / server application. The manufacturer provides support. Tool helps to obtain certification according to the ISO/IEC 27001:2005. The manufacturer provides technical training. Installing the tool is automatic. Using is the intuitive, but the user must be familiar with the methodology "Magerit". 5.5 Ebios Ebios created Central Information Systems Security Division in France. The tool is supported by an organization called Club Ebios. This tool differs mainly in that the 10

12 software is open source and is mostly free. It works on the principle of the method 5tich EBIOS phases. All the work and results allows the user to capture the resulting documents. The tool is available in 4 languages and English, French, Spanish and German. Its used by EU countries such as France, Belgium, Luxembourg and others. Outside the EU, is used in countries such as Tunisia and Quebec. Today, this tool uses about 1000 known entities from the public but also the private sector. Ebios is assigned for government and supranational organizations, both commercial and non-commercial companies. Ebios is an independent application created the Java programming language that works with the type of XML documents. Therefore, it does not matter, what platform the user uses the services Ebiosu. The tool also supports editing of risks, threats and vulnerabilities. Also, offers treatment of issues in identifying risks. 5.6 Proteus Tool for risk analysis Proteus comes from the workshop of the government of the United Kingdom Infogate. Mainly oriented to government organizations worldwide. Supportive of BSI (British Standards Body), ISF (Information Security Forum) and Institute of HICP. Proteus is a comprehensive tool for working at a web server. It offers analysis and management of security risks especially for government agencies as well as large multinationals. Proteus helps organizations in the implementation of standards and security guidelines such as ISO 17799, BS ISO 27001, BS 25999, SOX, CobiT, PCI DSS and others. 5.7 RiskPAC The system developed by the U.S. CPA firm that specializes in the area of risk analysis. We are talking about an expert system in which they are implemented elements of artificial intelligence. The system by consequential a further package of programs - RecoveryPAC that lets you create disaster recovery plans and IS System Manager, which allows users to create their own questionnaires. System Manager is a tool for quick and easy development of questionnaires. Allows you to create new or modify existing questionnaire. System Manager provides the ability to create or edit questions, manage the creation of assessment questionnaires and provides advice based on the responses of users. System RecoveryPAC is a tool that allows you to create customized action plans recovery systems. Management system recovery activities consists of three basic modules (Project Management module, modeling module data recovery, business recovery planning module) 5.8 RiskWatch RiskWatch is a package of software products used for risk analysis in accordance with the world standards for information security (ISO/IEC 17799), in accordance with the standards for financial institutions FFIEC issued by a governmental agency (The Federal Financial Institutions Examination Council) and by the U.S. of the 2002 Sarbanes- Oxley. This package contains: - RiskWatch for Information Systems & ISO 17799, - RiskWatch for Financial Institutions, - RiskWatch for Physical & Homeland Security, - RiskWatch for Physical Security & C-TPAT. RiskWatch for Information Systems & ISO provides a convenient base for webbased questionnaire form, which can be installed on the server and use it as a client / server (i.e. can approach it authorized and responsible person for each security from their own workstations). RiskWatch for Financial Institutions used for risk analysis in financial institutions, and issues from the Gramm Leach Bliley Act, California SB

13 (Identify Theft Standards) and standards for information systems organization FFIEC issued. 5.9 CRAMM (CCTA Risk Analysis and Management Method) Acronym CRAMM we understand two different things: - UK government methodology for valuation and risk analysis of security, - Support software tool that helps in applying this methodology in practice. There is a tool sold in version 5.2 for the Microsoft Windows operating system. In the nineties was CRAMM used primarily UK government and it also took a number of commercial organizations and government offices around the world. Currently, the most widely is used methodology CRAMM its kind in Europe. Currently distributed in three versions - CRAMM expert CRAMM express and BS 7799 (ISO 27001) Review. It is also possible to order the trial version, which is used for short-term trial of the product. Since this is a robust solution, it also affected the final price of the product, which is now in units of one hundred thousand. As a further disadvantage of the product can be mentioned staff training tool to use and understand methods CRAMM, the inability to use one license on multiple computers and outdated graphical user interface. Due to a complexity of the issue of IS security, data and computer networks can one person be an expert in all areas. Rapid development of IT, constantly changes in IS and new trends in the presumption of safety ever greater demands on limited resources. There is also a wide range of risks that may threaten the security of the information system or network. With so many risks, it is difficult to measure the level and locate vulnerabilities and weaknesses IS. If it also happens, as the introduction of countermeasures for one set, new risks may arise elsewhere. Therefore, there is an objective need for such CRAMM validated method that can serve to promote information security management processes. Risk analysis according to the methodology CRAMM examines the security of IS assets, but gathers them into logical units - models assets, which are then subject to risk analysis. Risk analysis by the tool CRAMM in accordance with the methodology consists of three phases, each of which is supported by questionnaires and instructions: - Identification and valuation of assets, - Determination of risk - analysis of threats and vulnerabilities, - Risk Management proposal of safety measures Casis Advanced Security Audit Trail Analyzer - its goal is to collect data from the information system, the correlation of these data and generate security alerts according to userdefined rules. It contains no methods for risk analysis GSTool Developed by the Federa Office for Information Security (BSI) in Germany. After collecting the necessary information the user has a comprehensive system for reporting performed of structural analysis ISAMM Information Security Assessment and Monitoring Method Collection instructions and best practices in the field of information security based on ISO/IEC Comprises three main parts: determining the scope, risk assessment, reporting Modulo Risk Manager Software helping organizations to efficiently and automatically perform detailed risk assessment and coordinate projects through a centralized collection of data related to technology (such as software/hardware), not technical assets (such as people, processes) and physical security. Supports standards Sox, PCI, HIPPA, GLBA, FISMA, BASEL II, 12

14 Callio Casis Cobra Countermeasures CRAMM Ear/Pilar Ebios GSTool ISAMM Modulo Risk Manager Real ISMS Riskwatch RM Studio ISO 27001, BS 25999, COBIT. Produces a risk profile that may have a direct impact on the company and on the direct investment in security. Streamlines and reduces the direct cost to execution of the audits the company Real ISMS On-line solutions for easy implementation and maintenance of ISO certification RM Studio Supported standards ISO 27001, ISO 9001, ISO 14001:2004, ISO WLA-SCL: 2006, PCI DSS 1 & 2, BS :2007 as well as user-defined standards. RMS combines continuity management processes and risk management. It is based on the methodology of ISO/IEC and safety standards. 6. Comparison of selected tools of risk analysis in IS Comparison tools is understood not only in terms of risk analysis, but are taken into account also other tools and features, and it is the ability to identify and opportunity risk management. This comparison allows a better opt for the selection of a suitable tool for when seeking a comprehensive software solution to support the ISMS, or required only a specific functionality. Table 1 Comparison tools- software solutions Tool Identification Yes No Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes of risk Risk analysis No No No Yes Yes Yes Yes Yes Yes Yes Yes Yes No Risk management Yes No Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Calio C E R T Supported standards ISO ISO M O D Table 2 Comparison of selected tools for risk analysis [5] Language Target Š Support availability audience K E F I E C G L S N K O Tel. Txt N R T S Z L. 2 Cobra ISO Countermeasures 2 Ear/Pilar Ebios ISO ISO ISO ISO ISO ISO ISO Ebios

15 Proteus Cramm 14 ISO BS SoGP PCI DSS SOX ISO Cramm 3 2 (CERT- support for obtaining certification; MOD- ability to make own modifications of the instrument 1- weak, 2-good, 3-excellent; ŠKOL- need for training of staff; EN- English language; FR- French language; IT- Italian language; ES- Spanish language; CZ- Czech language; G- government; L- large companies; S- small and medium-sized companies; N- noncommercial target groups; K- commercial target groups) 7. Conclusion Risk analysis of IS being a very intensive process for time and knowledge and is very prone to error analysis. During the analysis must take into account many aspects affecting the safety of IS. Due to the characteristics of the risk analysis process is understandable effort to speed up the process, clarify and improve using special software tools. Selection of the appropriate instrument is crucial to the future quality of the risk analysis. Tools to support risk analysis used to support the identification of strategic assets of company, creating a database of assets and classification surveys, which help in identifying possible the most common risks associated with business objectives; helps develop appropriate measures to minimize the threat; identify security incidents and help to resolve them; help deciding on security policy. References [1] ISO/IEC :2004 Information technology Security techniques Management of information and communications technology security part1: Concepts and models for information and communications technology security management. [2] NAGYOVÁ, A., MARKULÍK, Š. Bezpečnosť z hľadiska informačnej ochrany, In: Spektrum, Vol. 7, No. 2, 2007, [3] ORAVEC, M., KAŠKO, E. STN ISOIEC v kontexte právneho rámca SR, In: Bezpečnosť práce, č. 7, 2008, 3-7. [4] ROSENBERGER, Ľ. Význam procesu analýzy rizík v systéme manažérstva informačnej bezpečnosti (SMIB). In: Economics and Management E&M 2, MK ČR E 17538, 2010, [5] SCHREIDER, T. Risk Assessment Tools. In: A Primer, september 2010, [vid. 16. február 2013]. Available from: < [6] STRNÁD, O. Systém riadenia informačnej bezpečnosti. Ostrava, Amos 2011, ISBN [7] ŠOLC, M. Informačná bezpečnosť v spoločnosti. Ekonomika Management Inovace č. 1, ročník III., 2011, [8] ŠOLC, M., TOMČOVÁ, T. Prečo uvažovať o zavedení systému manažérstva informačnej bezpečnosti?. Bezpečnosť práce, č. 2, 2009, [9] VIRČÍKOVÁ, E., ŠOLC, M. Integrované manažérske systémy. Košice, TU 2012, ISBN

16 DEVELOPMENT AND OPTIMIZATION OF THE UV REDUCER FOR THE DETERMINATION OF EXPLOSIVES Alena Bumbová, Zbyněk Večeřa, Pavel Mikuška, Josef Kellner and Alena Langerová Abstract: In the study the procedure of developing and optimizing the UV reductor and the chemiluminescence detector for the determination of explosives has been described. The final miniaturized version of the photolytic reductor uses a 15 W Xe flashing lamp. Thanks to the optimization of flow rates and composition of reagents very low detection limits have been achieved. The use of this miniaturized optimized reductor and chemiluminescence detector in connection with an original microcolony liquid chromatograph is a prerequisite for the construction of an analyzer which will be able to determine energetic compounds in the air. Keywords: chemiluminescence detector, nitramines, nitroesters, UV reductor 1. Introduction It is known that the photolytic reduction of nitrate induced by UV radiation absorption provides a simple method for its conversion into nitrite, for the detection of which we developed in the past an extremely sensitive detector which works on the chemiluminescence principle [1, 2]. We have found out that a similar reaction also happens in photolysis of some organic compounds which have nitrogen in their molecule. Energetic compounds [3], e.g. trinitrotoluene (TNT), pentaerythrite tetranitrate (PETN), hexogene (RDX), octogene (HMX), ethylenglycol dinitrate (EGDN), trinitrobenzoic acid (TNBK), glycerol trinitrate (NG) and picric acid (PA), also fall into the class of these compounds. Dimethyldinitrobutane (DMDNB) also undergoes photolysis; it is used as a marker of energetic compounds. It can be expected that also other energetic compounds which include C-NO 2, C-ONO, N-NO 2 groups or, if need be, NH 2 group in their molecule will undergo this type of photolysis as well. Although the photolysis of the abovementioned nitrogen compounds is a complicated process comprehensive of many reactions and reaction intermediates, the resulting reaction, e.g. in case of nitrate, can be described using a simple stoichiometric equation (R1 reaction) as follows: NO 3 + h NO 2 + ½ O 2 (R1) The yield of R1 reaction depends on UV energy, UV radiation wavelength, composition of the medium in which the reaction proceeds and, last but not least, also on the time, during which UV radiation affects a given compound. 2. Results 2.1 UV reductor Optimization For simplification nitrate was used as a model compound during the optimization of the UV reductor. The aim was to develop a reductor which will support the on-line 15

17 conversion of selected nitrogen oxo compounds into nitrite with the subsequent rapid and sensitive detection of the produced nitrite. At the beginning the chemiluminescence (CL) method for the detection of nitrite produced due to photolytic conversion of nitrate was used. This method is based on the oxidation of nitrite by hydrogen peroxide in an acid medium into peroxonitrous acid (R2 reaction) which is determined as peroxonitrite through chemiluminescence reaction with luminol. H + HONO + H 2 O 2 > HOONO + H 2 O (R2) For the detection itself the continual system was used when a sample solution (i.e. the nitrite after the output from the UV reductor) was being mixed continuously with the reagent solution (4 mm H 2 O 2 and 3 mm EDTA in 0.3 M H 2 SO 4 ). During the flow through the reaction capillary tube (PTFE, 0.5 mm I.D., length 30 cm) H 2 O 2 in an acid medium oxidizes the nitrite into the peroxonitrous acid which is determined directly in the chemiluminescence detector using the chemiluminescence reaction with luminol after mixing with the CL solution (2 mm luminol and 3 mm EDTA in 0.6 M KOH). The emitted CL radiation is detected using the photomultiplier. The area of peak is measured as a CL signal. The detection limit of nitrite is M (for the signal/noise ratio = 3). In optimizing the UV reduction conditions a few parameters which affect the reduction efficiency of nitrogen oxo compounds into nitrate fundamentally have been tested experimentally: Composition of the carrier liquid; Flow rate of the carrier liquid and the exposure time; Material (PTFE, quartz) and dimensions (length and bore) of the reaction capillary tube; Parameters of UV light sources (i.e. wavelength of emitted radiation, performance of a UV source); Optimization of the UV reductor geometric arrangement; Temperature. In the course of the UV reductor development a few UV reductor versions varying in a used lamp and material of the capillary tube for the flow of liquids or, if need be, geometry of their mutual configuration, were tested. The result of the first phase of optimizing both the UV reductor and the new detection method was the simplification of the whole system. The optimized final version of the reductor included a 125 W Hg lamp (RVK 125 W, Teslamp Praha). The capillary tube is fixed parallel to the lamp longitudinal axis at the distance of 35 mm from the lamp body. The optimum flow rate of a sample through the reductor is 300 µl.min -1 ; the temperature inside the reductor is 190 C. The detection limit for the determination of nitrate under the abovementioned optimum conditions is M (S/N = 3). The total analysis time comprehensive of both the sample flow rate through the UV reductor, and the subsequent continuous detection is 12 s. In accordance with the preliminary experiments it is possible to detect many energetic compounds in aqueous solutions, the concentration of which is M (TNT) and M (Pentaerythrite tetranitrate, HEXOGENE, OCTOGENE, DMDNB). The final UV reductor version was tested successfully for the photolytic conversion of organic nitrogen oxo compounds (TNT, Pentaerythrite tetranitrate, HEXOGENE OCTOGENE) with the subsequent continuous CL detection of products. Further, the 16

18 possibility for the determination of the abovementioned compounds in the air was tested. It has been confirmed that the developed UV reductor can be used with success within the rapid and sensitive detection of selected energetic compounds. The photolytic reductor developed in 2010 (FR 2010) is not too suitable for the terrain and mobile use due to its large size. When using the FR2010 for the direct detection of real samples of nitrogen oxo compounds in the air the interference of nitrous acid and sulphur dioxide occurring in the air together with the studied nitrogen compounds was detected. Therefore, at first it was necessary to approach the elimination of these interferences before the reductor miniaturization. On the basis of the literature search it was decided to remove HNO 2 from the sample solution through its reaction with sulfamidic acid (SMA) to form nitrogen. The reaction can be described using the following equation (R3): HNO 2 + H 2 NSO 3 H H 2 SO 4 + N 2 + H 2 O (R3) The sulfamidic acid solution was being mixed with the sample solution before its entering the UV reductor. The optimization of sulfamidic acid (SMA) concentration and the reaction time was carried out with the aim of removing HNO 2 quantitatively from the sample solution before its entering the reductor. The optimum SMA concentration is 2 g/l and the reaction time is dozens of seconds. The SO 2 interference can be eliminated with the addition of formaldehyde which reacts with SO 2 to form hydroxymethansulfonate (HCHO). HCHO was added to the SMA solution; the optimum formaldehyde concentration was 0.02 M. The interferences of other pollutants were not detected Miniaturization of the reductor and optimization of detection Arrangement of the measuring apparatus The measuring apparatus includes a photolytic reductor, chemiluminescence (CL) detector and continuous liquid-flow system which enable the continuous connection of photolytic conversion and CL detection in figure 1. At first, the sample solution is being mixed with the SMA solution continuously. Then the resulting mixture passes through the reductor where the sample is exposed to radiation from the UV lamp during the flow rate through the reaction quartz capillary tube. The absorption of UV radiation induces the photolytic conversion of nitrate and nitrogen oxo compounds occurring in the sample into unidentified reaction products. The solution coming out of the reductor is being mixed with the luminol solution in the CL detector; reaction products react with luminol and the emitted CL radiation was detected using a photomultiplier. The area of peak is measured as a CL signal. 17

19 Figure 1: Apparatus scheme PC computer, PP peristaltic pump, FR photolytic reductor, FL flashing lamp, PMT photomultiplier, CLD chemiluminescence detector When developing the miniaturized photolytic reductor (MFR) we compared its characteristics with the reductor developed in 2010 (FR2010) Optimization of determination During the development of the MFR a few parameters were tested experimentally. These parameters affect fundamentally the reduction efficiency of nitrate and energetic compounds as well as the detection limit for the determination of these compounds as follows: - Influence of radiation wavelength upon the conversion of nitrogen compounds, - UV reductor geometric arrangement, - Flow rate of the luminol and SMA solution through the redactor, - Flow rate of the sample through the redactor, - Composition of the SMA solution, - Composition of the luminol solution. When developing and optimizing we used nitrate, TNT, PETN, RDX, HMX, EGDN, TNBK, NG, PA and DMDNB. We tested another UV radiation source than the Hg lamp in the miniaturized photolytic reductor (MFR) for the reason of miniaturization. On the basis of the literary search a flashing Xe lamp was selected as a UV radiation source, the performance of which is 15 W (Hamamatsu, L type, lamp diameter 26 mm). Its advantage is the following: small size, lower power and no heating of the sample when passing through the reaction capillary tube inside the redactor. Sample heating results in sample degassing; the escaped gases (O 2 and N 2 ) cause that the detector shows increased signal fluctuations, which results in the decrease in reliability of the determination as well as lowering of the method detection limit. On the other hand, due to the smaller diameter of the flashing lamp, only a shorter part of the reaction capillary tube is irradiated in comparison with the arrangement in the FR2010. Hypothetically, it was expected that the lower lamp performance when compared with the Hg lamp in the FR 2010 could probably lead to the lower photolysis efficiency of the studied compounds even if, on the basis of the literature, it was evident that it wouldn t have to be like that. In spite of that, the MFR was constructed so that the Xe lamp with a parabolic collimator was used for the final version. The parabolic collimator concentrated UV radiation rays on a cylindrical parabolic mirror which was made of aluminium and positioned vertically to the lamp axis Final configuration of the miniaturized photolytic redactor The final configuration of the miniaturized photolytic reductor includes a 15 W Xe flashing lamp which irradiates a quartz capillary tube (ID 530 µm, the length of irradiated part is 25 mm) fixed vertically to the longitudinal lamp axis at the distance of 30 mm from the lamp. The parabolic aluminium mirror is installed beyond the capillary tube and focuses the light on the capillary tube. The advantage of the Xe lamp is that it does not cause the heating of the sample due to its lower performance. However the necessity of cooling does not take place and the apparatus is simplified. The optimum composition and flow rates of reagent and sample solutions are summarized in Table Limit of detection The final optimized version of the miniaturized reductor (flashing 15 W Xe lamp) in combination with optimized flow rates and reagent composition has been used for determination of the limit of detection (LOD) of the studied compounds. The values of the obtained limits of detection are given in Table 2. For the comparison the values of 18

20 limits of detection obtained using the photolytic reductor from 2010 (150 W Hg lamp) are also mentioned. Table 1 Optimized compositions and flow rates of solutions for the MFR Flow velocity Composition (µl.min -1 ) Sample SMA solution M SMA (2 g/1 L), HCHO (1.6 ml 37% HCHO/1 L), acetone (0.5 ml/1 L) Luminol solution M luminol, 0.01 M sodium pyrophosphate, 0.1 M KOH Table 2 Comparison of detection limits (mol/l) of studied compounds (3 S/N) Compound LOD (mol/l) LOD (mol/l) LOD ratio 150 W Hg lamp 15 W Xe lamp for Xe / Hg lamp Trinitrotoluene Pentaerythrite tetranitrate Hexogene Octogene Ethylenglycol dinitrate Picric acid ,3-dimethyl-2,3-dinitrobutane G glycerol trinitrate Trinitrobenzoic acid HNO Conclusion It results from the comparison of LODs values that the photolytic reductor with the 150 W Hg lamp (i.e. FR2010) has minimum 5x lower LOD value for all the studied compounds than the newly developed miniaturized version of the photolytic reductor with the 15 W flashing Xe lamp (i.e. MFR). Nevertheless, despite the lower efficiency of the UV lamp in the MFR it was a success to achieve such limits of detection through the optimization of flow rates and the composition of reagents. The limits of detection in connection with an original microcolony liquid chromatograph are a prerequisite for the construction of an analyzer which will be able to determine energetic compounds in the air. The financial support of the Ministry of Defence of the Czech Republic by the grant No R is also gratefully acknowledged. References [1] SMITH, J.P., HINSON-SMITH, V. The New Era of SAW Device. Anal. Chem. 78(11), pp ,

21 [2] GOODPASTER, J.V., McGUFFIN, V.L. Fluorescence quenching as an indirect detection method for nitrated explosives. Anal. Chem. 73(9), pp , [3] MEANEY, M.S., McGUFFIN, V.L. Luminescence-based methods for sensing and detection of explosives. Anal. Bioanal. Chem., 391, pp ,

22 THE EDUCATION IN THE AREA OF CRISIS MANAGEMENT Monika Davidová Abstract: The paper focuses the attention to the current system of education in the area of crisis management at all level, the basic accesses of development managers. The final part of the paper proposes to the new project of education and development of the crisis managers at University of Defence. Keywords: education, crisis management, human resource management 1. Introduction At present, knowledge is essential to the performance of any activities. Development of new technologies, innovation and changes in working process forces us constantly evolve and educate. Only well-prepared employee brings to his employer advantage and higher competitiveness. Employer who realizes the necessity of further education of employees, plans systematically, organizes, implements, monitors and evaluates the educational process in accordance with economical possibilities. The paper connects to the research project of economic laboratory. 2. Current state of education in the area of crisis management Education in the field of crisis management is based on The Concept of Education in the Field of Crisis Management in Connection with the Reform of Public Administration and Related Legal Standards Regulating Preparation and Training Other Employees in Public Offices, Officers of Territorial Units and Employees of Legal Persons and Entrepreneurs published in 2004 [1]. This concept contains appraisal of current state, education in the area of crisis management in which are taken into consideration basic facts, system for the preparation of persons, further professional training, target groups followed by coordination of the educational process and financial security. Education in the field of crisis management and population protection in the Czech Republic takes place in three levels: - Courses, - Secondary and higher vocational education, - University education. Courses and trainings are provided by training centres of the Ministry of Interior i.e. Population Protection Institute in Lazne Bohdanec, training centres of population protection of the Czech Republic (regional headquarters of Fire Rescue Service) and Institute for Local Administration. Figure 1 focuses attention on areas of activities of the training centres and courses. 21

23 Training centre Field of activity Course Population Protection Educational and training: Basic, specialized, training, Institute in Lazne -processing methodological retraining, supplementary, Bohdanec aids, language. - organizing lectures, courses, workshops, international conferences. Scientific and research: - developing of strategic concepts of the Fire Rescue Service of the Czech Republic, - improving areas of methods, technology, technological resources, ensuring the population protection. Institute for Public Administration Prague Informative: - collecting and evaluating information for the Fire Rescue Service of Czech Republic, - processes analysis of the population protection in the world and its development trends Specialised: - providing expert, advisory and consulting services, - provides chemical consulting services and supervises and regulates Chemical laboratory practice. Educational: - methodological guidance and coordination of the special professional competences as a qualification requirement for the state administration in delegated jurisdiction - Education of officials offering a comprehensive range of accredited training programs for the upgrading the qualification. Continuous and deepening education, training for elected representatives, preparation for special professional competence exams, initial training, basic pedagogical training of lecturers. Figure 1: Training centres which provides cources and traings in the field of crisis management Source: own 22

24 On education in the field of crisis management also participate in secondary institutions, whether public or private (refer to Figure 2). Name of the school Study program Course Military Secondary School and College in Moravska Trebova Protection of Troops and Population Fire Service College in Frydek-Mistek Population Protection and Crisis Management Secondary Public School and College of Crime Prevention and Crisis Management Prague, ltd. Crisis Management Figure 2: Secondary and higher vocational in the field of crisis management Source: own From the Figure 3 is obvious that The University of Defence provides the most fields of study in the area of the crisis management. University Faculty Name of the programme Police Academy of the Czech Republic in Prague Czech Technical University in Prague Jan Amos Komensky University Prague Private University College of Economic Studies, Ltd. University of South Bohemia in Ceske Budejovice University of Technology in Brno Faculty of Security Management Faculty of Biomedical Engineering Faculty of Health and Social Studies Name of the field of study Public Administration Security Management in public administration Population Protection Planning and Management of crisis situations Economics and Management Protection and Safety of Organizations Protection Inhabitants Security Studies Security Management of Protection of Inhabitants Focused on Chemical, Biological, Radiological and Nuclear Noxa and Explosives Faculty of Chemistry Population Protection Crisis Management and Population Protection 23

25 University of Defence in Brno Masaryk in Brno University Karl Englis College in Brno Faculty of Economics and Management Faculty of Social Studies Economics and Management Protection of Troops and Population Political Science Security and Law Studies Rasin College Economics and Insolvency VSB Technical University of Ostrava Palacky University in Olomouc Tomas Bata University in Zlin Silesian University in Opava University Pardubice of College of European and Regional Studies Faculty of Security Engineering Faculty of Physical Culture Faculty of Logistics and Crisis Management Mathematical Institute in Opava Faculty of Economics and Administration Fire Protection and Industrial Safety Population Protection Population Protection Security Management Modelling and simulation of processes of protection of troops and population The civil protection Weapons of mass destruction, harmful substances and the protection against them Security and Strategic studies Security and Legal Activities in Public Administration Crisis Management Emergency Planning and Crisis Management Security Planning Population Protection Population Protection Applied Mathematics Applied Mathematics in Risk Management for solving crisis situations Economics Management Security and Legal Activities and Management of Protection of Business and Society Security and Legal Activities in Public Administration Figure 3: Selected universities providing programmes close to the area of security Source: KLABAN, V. Vzdělávání v oblasti bezpečnosti. In: Bezpečnostní management a společnost. Sborník z mezinárodní konference pořádané Katedrou ochrany obyvatelstva FEM UO v Brně. Brno: Univerzita obrany, 2012, p. 194, ISBN University of Defence provides through educational activities also courses published in Journal: [2] - Psychosocial Aspects of Disaster and Crisis Management (secured by the Faculty of Military Health Sciences, duration 1 week), - Crisis Management, Combat Readiness, Mobilization Planning (secured by the Faculty of Economics and Management, duration 3 weeks). Educational institutions mentioned above provide professional-business basis. Nevertheless the business basis should be followed by educational activity that would eliminate weak points of personality of manager in order to enhance his competences and reduce potential losses, whether material, financial or human. 24

26 3. Training and development of crisis managers Education in the field of crisis management is currently examined by academic staff. [3] The majority of authors focus their look only at the brief summary of the current state i.e. concepts, legislation and overview of selected educational institution providing programs for education managers. Only chosen authors attempt to find deeper connections e. g. by concentrating on each manager competencies, psychological aspects, development of personal qualities, human behaviour under pressure and possible elimination of weaknesses of manager while dealing with crisis situations. For instance the publication from authors Horák, Krč, Ondruš and Danielová Crisis Management Guide for Public Administration [4] discusses the crisis management, economic measures for crisis states, crisis legislation and terminology. In the first part characterizes the author of the chapter management and its function. Among other things, the emphasis is also placed on personal aspects of manager and chosen methods of the decision making process. Authors point out the fact that one personality is not capable enough to solve stages of decision making process, managers generally handle only one specific stage of this process. The work of a crisis manager differs from the work of a common manager especially in specific working conditions. According to Moricová [5], a crisis manager manager in organization (company), leader of the public administration in the relevant resorts, management staff departments of crisis management in state and local government, mayor, the commander of the military and police forces, Fire Rescue Service, Medical Rescue Service. A crisis manager needs to consider and at the same time be capable of planning possible alternative solutions of situations, continually exercise, undergo trainings, be able to analyse information, communicate (both with colleagues or people affected by the crisis situation), declare and call off emergency situations. Work capability of a crisis manager is the degree of consistency between requirements and assumptions. It consists of physical, psychological, vocational and moral component. Capability and qualification of a crisis manager ought to be professional (ability to manage, organize, coordinate, make decisions flexibly and dynamically), social (lead people, motivate, stimulate, maintain moral quality of personality, be able to stand up to the psychological strain), conceptual (plan, realize solutions to situations, see connections and consequences of the decision). Requirements for performing work of a crisis manager, the role of crisis management, functions and principles that should be followed by crisis managers, work capability and personal qualities ought to be the basis for answers to these questions: How should the education of crisis managers along the line of psychology and resource management go on? Is it possible to eliminate weak points of manager personality and by that enhance his competences and reduce potential losses? A claim exists that managers learn best through working. However it is not possible to leave managers to their fate by their employer and moreover their further education and progress cannot be a random process. Specialist publications recommend three basic approaches to a growth of a manager: [6] - Informal education learning through work, - Formal education, - Feedback, help and support. 25

27 Informal approaches of a manager to education and development result from everyday work. Managers must be able to deal with any new situation lessons learned from this could be applied in the future. Discussion with other colleagues, superiors may reveal manager s weaknesses, which need to be developed. Formal approaches to development of managers include: - Progress while working by means of coaching, consulting, monitoring and response from the senior managers, - Progress through gaining work experiences such as job rotation, working in project teams learning through work, - Formal education through courses, - Structured self-development according to the individual learning programs. Manager obtain feedback from mentor, an expert in the field of education of managers who provides advices aimed on improving performed activities and leads the future graduate in his career. 4. New challenges in education of crisis managers New challenges in education of crisis managers may be seen in thematic orientation of current courses that do not offer focus on weaknesses of managers with goal of enhance his competences and reduce potential losses. How then may look like model of further education of crisis managers at the University of Defence? The main target group would be formed of selected lead workers of middle and senior management. Course would focus on acquiring knowledge and skills from the area of resource management and psychology for the support of lead workers. The emphasis would be on topics from the areas: - Resource management (human resources, financial resources economics of national defence, area of law and selected specialization soldiers, firemen, police members, pilots, doctors), - Psychology (human and organizational failure, stress and tiredness, information process, communication, management of work tasks, team work and leadership). These thematic fields would be actively applied by the target group on the course during solving case studies and own presentational activities, but also in practise. Thematic focus of the course, learning methods and organizational form of teaching would copy the course Crew Resource Management Instructor Course (CRM Instructor Course), which was orientated on dealing with crisis situations in aviation. The Author of this article attended Crew Resource Management Instructor Course (CRM Instructor Course) in London in 2011 from the resources of the research project Laboratory of Safety and People Protection in which is she involved as co-investigator. The aim of this project is application of new findings into Czech environment with focus on creation of methodology for education, development and military personnel training crisis managers. The entry requirement for the course would be to study the pre-preparation materials (sent by the University of Defence), which would be an essential pillar of the educational event from which the course participants would be able to draw during solving case studies and practical tasks. Lecturing activity would provide lecturers from the University of Defence and selected experts from the Ministry of Defence and Ministry of the Interior. The Figure 4 is the proposal of the education of crisis managers along the line of psychology and resource management. 26

28 Knowledge, skills, competences, experiences, work capability, personal qualities. Course at the University of Defence including psychological and physiological testing (personality structures) Individual planning of education and progress of manager and (elimination of weak points) New Knowledge, skills, competences, experiences, work capability, personal qualities. Entrance questionnaire Feedback of educational process Final questionnaire Figure 4: Proposal of education of crisis managers along the line of psychology and resource management at the University of Defence Source: own Manager would entry into educational activity with his current knowledge, skills, competences, experiences, work capability and personal qualities. After processing the entrance questionnaire he would study and develop himself according to the resource management and psychology topics. The part of this course would be psychological and physiological testing (personality structure), which would take place at the University of Defence through psychological tests, questionnaires and on biofeedback focused device (BFB) and that all would perform trained staff. Afterwards, experts would provide recommendations based on the results of the diagnostics, which would be the essential material for the individual plan of education and manager development. After completion of the course would graduates fill in the final questionnaire, where would they evaluate the course progress i.e. positives and negatives, suggestions to add other topics into course, approaches and leading of lecturers, self-reflection etc. Economical aspect of this proposal lies in visions and mainly in The University of Defence possibilities. Within the research project the Laboratory of Safety were purchased biofeedback devices and trained staff. A space for these devices ensures the University of Defence. Aspects that could further affect the cost of the crisis managers testing: - Time demand of testing, evaluation of tests and formation of the individual education plan and development of manager (current trained staff provide education, guide bachelor and master theses, teach courses in lifelong learning), - Consumables (medical, office supplies), - Who would finance education and development of managers from other resorts (Ministry of the Interior police members and firemen), - Will it be just single testing or will managers be tested at intervals and several times to monitor the elimination of their weaknesses. 27

29 If the proposal of education and crisis managers development along the line of psychology and resources management was approved and realized, then the University of Defence would become an important institution that dictates the directions of new trends and implements them. 5. Conclusion The education in the field of crisis management is specific and that is why it should prepare future crisis managers responsibly. Crisis managers should after the accredited educational activities completing undergo further education, which would be aimed on development of their personality and elimination of weaknesses and this would ultimately help reduce potential losses. References [1] The Concept of Education in the Field of Crisis Management in Connection with the Reform of Public Administration and Related Legal Standards Regulating Preparation and Training Other Employees in Public Offices, Officers of Territorial Units and Employees of Legal Persons and Entrepreneurs, [2] Journal of Educational Activities for [3] FOLTIN, P. Vzdělávání pro bezpečnostní systém státu. In: Bezpečnostní management a společnost. Sborník z mezinárodní konference pořádané Katedrou ochrany obyvatelstva FEM UO v Brně. Brno: Univerzita obrany, 2011, p ISBN [4] HORÁK, R. Manažer v krizových situacích, Obrana a strategie, 2004, č. 1, p [5] JURENKA, M. Vzdělávání v oblasti krizového řízení, Vojenské rozhledy, 2005, 2, p ISSN [6] KLUČKA, J. Príprava nového študijného programu na katedre krízového manažmentu. In: Bezpečnostní management a společnost. Sborník z mezinárodní konference pořádané Katedrou ochrany obyvatelstva FEM UO v Brně. Brno: Univerzita obrany, 2011, p ISBN [7] KLABAN, V. Vzdělávání v oblasti bezpečnosti. In: Bezpečnostní management a společnost. Sborník z mezinárodní konference pořádané Katedrou ochrany obyvatelstva FEM UO v Brně. Brno: Univerzita obrany, 2012, p. 194, ISBN [8] HORÁK, R. KRČ, M. ONDRUŠ, R, DANIELOVÁ, L. Průvodce krizovým řízením pro veřejnou správu. Praha: Linde, p. ISBN [9] MORICOVÁ, V. Vzdělávanie krízových manažérov so zameraním na rozvoj osobnostních kvalít. In: Bezpečnostní management a společnost. Sborník z mezinárodní konference pořádané Katedrou ochrany obyvatelstva FEM UO v Brně. Brno: Univerzita obrany, 2012, p ISBN [10] ARMSTRONG, M. Řízení lidských zdrojů. 10. vydání, dotisk. Praha: Grada Publishing, p. 493, ISBN

30 TESTING STRUCTURAL CHANGES IN ECONOMIC TIME SERIES Lucie Doudová and David Hampel Abstract: The paper is focused on testing significance of structural changes in time series. This problem is related to (non)constancy of regression parameters. Such assumption of linear regression model can be broken when a structural change appears, for example the world financial crisis actually. Basic methods dedicated for this purpose are group of Chow tests and CUSUM test. Different approaches to parameters constancy testing in the Chow style are discussed from the statistical point of view. Results of chosen methods are illustrated by application on data about military expenditures in the Czech Republic and the financial data. Keywords: economic time series, structural changes, testing parameters constancy 1. Introduction Quantitative methods are increasingly applied not only in the technical disciplines, but also in the social sciences. They cover a wide range of topics such as organization and decision making, see [13] and [15], risk analysis [11] or education [3]. In economics, a considerable attention is paid to the analysis of time series, see e.g. [10]. Regarding the statistical methods, one of the most widely used is a regression analysis. One of the important assumptions in regression analysis is that the parameter vector is invariant against the changes in data matrix within the sample, i.e. the parameters remain constant. In practice, this assumption may be violated over time and it gives rise to the problem of structural change. For example, the annual economic data may exhibit a structural change in the consumption pattern if there is a war and the point of structural change will be the first year of war. Consequently the parameters of the model before and after the war will not remain the same. Actually, financial crisis affects economic data in the similar way and it is necessary to take this fact into account. Since the stability of the regression coefficients is such an important part of the assumptions underlying the classical regression model, it may be advisable to regard it as a hypothesis to be tested. When the suspected variation of the regression coefficient is systematic, tests of the stability hypothesis are readily available. In the case of stochastically varying coefficient, it was found that a typical effect of coefficient variation is to make the regression disturbance heteroscedastic and possibly autocorrelated. This suggests the use of tests for homoscedasticity and nonautocorrelation. Further, to the extent that stochastic coefficient variation is caused by misspecification due to omitted variables or nonlinearity, tests such as RESET or the rainbow test would be appropriate. If we have well specified model where autocorrelation or heteroscedasticity is detected, appropriate modifications of parameters constancy tests should be used, see for example [2], [4], [6] and [16]. In this paper, several approaches to parameter constancy testing are analysed. Results of chosen methods are presented using actual data including structural change. 29

31 2. Material and methods To illustrate problems in the field of parameter constancy testing we use two datasets. The first one consists of military expenditures in the Czech Republic from the year 1993 to 2010, see Fig. 1. The data were obtained from Stockholm International Peace Research Institute, see [14]. This data are derived from the NATO definition, which includes all current and capital expenditures on the armed forces, including peacekeeping forces; defence ministries and other government agencies engaged in defence projects; paramilitary forces, if these are judged to be trained and equipped for military operations; and military space activities. Excluded are civil defence and current expenditures for previous military activities, such as for veterans' benefits, demobilization, conversion, and destruction of weapons. The Czech army has been considerably diminishing since It counted over 130 thousand people at that year, yet 68 thousand members were recruits in compulsory military service. In 1999 the Czech Republic joined NATO and the military went through significant structural changes including reduction. In 2003 the army had only 44 thousand employees and almost 20 thousand recruits. The year 2005 was a breakpoint in the history of the Czech army. The compulsory military service was discontinued and the army has begun to be fully professional. Since then, the number of soldiers and civilian employees has been decreasing each year (see [9]). We can expect a breakpoint in military expenditures in 2005 which is given by the real structural changes. Figure 1: Military expenditures in the Czech Republic from the year 1993 to 2010 (left graph); consumer credits provided by commercial banks from 2004 to 2010 in the Czech Republic (right graph). The second data are about consumer credits provided by commercial banks from 2004 to 2010 in the Czech Republic (obtained from the ARAD system of the Czech National Bank), see Fig. 1. This data are suspected to be affected by financial crisis, which started probably in the year Such suspicion where should be so-called break date is the necessary first step in the analysis. We can explore data by its graphical representation or by segmentation based on known historical events as a beginning of the new Act, emergence of a new government, etc. In further text we describe several parameter constancy tests. Outside the original papers and own calculations we use books [1], [8] and [12] for this purpose The Chow forecast test The idea behind the test (originally developed in [7]) is to divide the complete regression model into two independent regression models such that the sample of size T is divided into two subsamples of sizes T1 and T 2, where T = T1 T2. In the case of time series data, the observations should follow the natural order, i.e. the first T1 observations in the first subsample and the remaining in the second subsample. In 30

32 practice, such division should be based on historical event resp. is precised in accordance to information criterions when building up the model. In general, the size of the second sample T 2 should not be more than 5 15 % of the sample size T (see [12]). Partition y = X, where y is T 1 vector, X is T K matrix, into two independent regression models could be as follow: y1 = X1 1 1, y2 = X2 2 2, where y 1 is T 1 1 vector, X 1 is T 1 K matrix, y 2 is T 2 1 vector and X 2 is T 2 K matrix, with E ( 1 ' 2 ) = 0. Set = y ˆ 2 y2. The test statistics of Chow for testing the constancy of parameters through H0: = 1 2 (i.e. parameters remain same in both submodels), is of the form 1 1 ( I X ( X ' X ) X ' ) F = T 2 2 T2 ˆ' ˆ T1 K (1) F F (, ) under H0. The decision rule is to reject H0 when 1 T2 T1 K. This test can be used sequentially as follows (see [5]). Divide the observations into G mutually exclusive groups with m 1 ( m 1 > K ) observations in the first group, m 2 m m m T observation in the second group, etc. Note that = 1 2 G. Further, let ng = m1 m2 m g for g = 1,2,, G. Clearly, n G = T. The sequential F test then involves the construction of G 1 F statistics, each defined as SSE SSE F g = n g m SSE g 1 g g 1 K g 1, g = 2,3,, G, SSEg n is the least squares residual sum of squares based on the first g where SSE 1 observations and g is the residual sum of squares based on the first n g 1 Fg 1 are mutually independent, so the probability seq that observations. The statistics none of G 1 test statistics rejects the null hypothesis is 1 seq = (1 2)(1 3) (1 G) g, where, g = 2,3,, G is the probability of Error Type I for the g th test. Now, the null hypothesis will be rejected if any Fg F1 ( mg, ng 1 K) seq, g = 2,3,, G. How to determine the optimal number of groups of observations is unfortunately still an open question The Chow test as a mean-shift test The analogy of the Chow forecast test can also be derived using a bit different idea. Assuming that the observations follow the model y =, 1 X1 1 and the period of forecasting follow another linear model with parameter vector as y = X 2 = = X X X, 2 2 ( )

33 where = X 2 ( ). Since = 0 is equivalent to =, so the hypothesis of parameter constancy can be formulated as H0: = 0 can be tested using the statistic F of Chow from (1) The Chow test with both T1 and T2 relatively large Now we discuss situation, when both T 1 and T 2 are sufficient to construct two individual models (let us remember, that in previous text the size of the second sample T 2 should not be more than 5 15 % of the sample size T ). The first model we should write as yt = 1 2xt 2 K xtk t, (2) t = 1,, T1, and the second one as yt = ( 1 K 1) ( 2 K 2) xt 2 ( K 2K ) xtk t, (3) t = T1 1,, T1 T2 = T. The hypothesis of parameter constancy is in this case of the form H0: K 1 = 0,, 2K = 0, i.e. both models are the same in terms of parameters. It is possible to show that statistic SSE ( SSE1 SSE2) F = K SSE1 SSE2, T 2K where SSE1 resp. SSE2 are the residual sums of squares from the models (2) resp. (3) and the term SSE is residual sum of squares from the model yt = 1 2xt 2 KxtK t, t = 1,, T. The decision rule is to reject H0 when F F1 ( K, T 2K) The CUSUM test This test is connected to the so-called recurrent OLS method. In this method we solve y regression 1 = X t 1 1 for t = K 1,, T, where vectors y 1 and 1 have dimension ( t 1 1) and X t 1 is t 1 ) matrix. By this manner we obtain recurrent OLSE 1 bt 1 = ( X ' t 1 Xt 1) X ' t 1 y1 yˆ = and prediction t xtbt 1 f with prediction error t = yt xtbt 1. Recurrent OLS method is based on the set of equations b = b A x f A = ( where t X t X f t et = k 32 t t ) 1 ~ iid k t A t t = = t 1 A t 1 1 x A t t t x, t t 1 t t 1 A k t 1 t x x A X, dimension of t is t K. Under normality assumption, 2 N(0, ), t = K 1,, T. e Values t b are called recurrent OLS residues. Both t e and t are usable for parameters b constancy testing: when parameters are varying in time, values of t e and t will varying e visibly. If a structural change appears, absolute values of t will be relatively high and et b will be correlated in time. This all we can usually identify in graphs of t e and t. t t 1 (4)

34 The proper CUSUM testing is based on recurrent OLS residues (4). Under null hypothesis, that regression parameters are constant, are CUSUM statistics (cumulative t eu CUSUMt = ~ N(0, t K), sums) approximately normally distributed, u= K 1 s t = K 1,, T, where s is OLSE of based on total model. CUSUM test detects change of regression parameters in the timet, when the equation CUSUM t form too. 2 t K holds for the first time. This test can be useful in graphical 3. Results and discussion All the results and graphs are obtained from our own implementations of described procedures in computational system MATLAB R2021a or Gretl software. By this manner we have full control over these implementations, so we are sure that results are connected to particular method exactly. 3.1 Analysis of military expenditures data The data are depicted in Fig. 1, left graph. The structural break is clearly visible, and statistical verification is given by the Chow test statistics (1), F = Trend of the data can be modelled as where beta s are parameters, is time vector ( ) and is a dummy variable: zeros for and ones for Parameters and can be interpreted as coefficients of a basic regression line and parameters and as additions for appropriate line coefficients in the years We can estimate model equation as with all parameters statistically significant. 3.2 Analysis of consumer credit data Consumer credit data depicted in Fig. 1, right graph, brings more complex problem. At the first sight on the graph, there are no visible breakpoints. After considering the onset of financial crisis, the part of the data from the October 2009 seems to be shaped a bit different than previous data. These hypotheses have to be tested by exact tools. It is possible to evaluate parameters constancy roughly by depicting parameter estimates depending on time. Parabolic model was chosen for this purpose, results are given in Fig. 2. It is possible to see, that for all parameters holds: after stabilization (initial estimates are based on a few observations only) visible deflection from the end of 2008 is apparent. Moreover, SSE rise meaningfully (see right lower graph in Fig. 2) from that time. 33

35 Figure 2: Modelling consumer credit data omitting breakpoint. Used model 2 yt = 0 1xt 2xt t. Subsets of data (gradually observations 1st to 10th, 1st to 11th,...) were analysed, parameters were estimated and depicted in dependence on time: upper left graph ˆ 0, upper right graph ˆ 1, lower left graph ˆ 2. SSE depending on time is presented in lower right graph. Further useful tool is graph with data and predictions from recurrent OLS method (Fig. 3, left graph). Data and predictions begin to differ visibly from the end of 2008; this difference augments from the end of Testing statistics of the Chow forecast test is F = 73.53, what is more than critical value , the null hypothesis about parameters constancy is rejected ( T 1 was set to December 2008). Graphical representation of the CUSUM test is given in Fig. 3, right graph. CUSUM exceeds the criterion approximately in December 2009, where strong difference between data and recurrent OLS prediction appears. After detecting breakpoint, the next step is to choose appropriate model. Separation of the data can be done by dummy variables and for both parts can be used arbitrary function. The previous tests give only limited information about the time of breakpoint. This can be found by exploring SSE or information criterion (AIC, BIC, HQC, etc.) by setting different breakpoints sequentially. For our data, the first part is modelled by quadratic function and the second part by linear function. The breakpoint is set to December 2008, what is in accordance with results of the graphical analysis (Fig. 2 and 3) and also with the real beginning of financial crisis. Graph of this model is depicted in Fig. 4 together with parabolic model omitting the breakpoint. Higher quality of the model with breakpoint is visible. 34

36 Figure 3: Left graph: Data and predictions (and residues) from recurrent OLS method. Right graph: CUSUM statistics and CUSUM criterion for consumer credit data. Figure 4: Consumer credits data modelled with appropriate model (before breakpoint parabolic, after them linear) versus model omitting breakpoint (parabolic). Of course, this model is only illustrative. It is necessary to count with seasonality and verify classical model assumptions. Using Gretl software, we choose the model including constant, time, square of time, time*d (D means dummy variable, zeros before and ones after the breakpoint), square of time*d, periodic seasonal component for January, February, March and December, time * periodic seasonal component for December and lagged consumer credits as a model with the lowest informational criterions. All parameters are significant (p-values are always lower than 0.02). Moreover, parameters are meaningful, for example parameter for December seasonal component is positive, but time*periodic seasonal component for December is negative, what we can interpret as regular crediting of Christmas gifts, but with decreasing tendency in years. This model has adjusted coefficient of determination 0.99; we cannot reject following hypotheses: of proper specification (RESET test, p=0.271), of residuals normality (chi-square test, p=0.411), of nonautocorrelation (Breusch-Godfrey test, p=0.215) and of homoskedasticity (Breusch-Pagan test, p=0.969). The comparison of real data and predictions from this model is shown in Fig. 5, right graph. We try to model differences of consumer credits, because of relatively high variance inflation factors (VIFs), what can mean multicolinearity in the model. In this case, we obtain model with constant, D, time, time*d, periodic seasonal component for January, February, March, September and December and time*periodic seasonal component for December as a model with the lowest informational criterions. This model has the same good properties as previous model; even more, all VIFs are less than 10. The comparison of real data and predictions from this model is shown in Fig. 5, left graph. 35

37 Y d_y 5000 predicted real predicted real Figure 5: Final consumer credits data models. Left graph: differences, right graph: original data. In both cases, full line means real data, dashed line model predictions. 4. Conclusions Tests of parameters constancy seem to be a useful tool to explore possible structural change in the data. Some authors, however, have considered assumption that parameters should be stable too restrictive and proposed models that allow for variation in the regression coefficients. Some of these models are based on economic theory or other prior knowledge. As a rule, these models involve nonstochastic, systematic coefficient variation. Examples are personal changes in behavior, or changes in production function coefficients caused by technical progress. Almost all regression models with time-varying coefficients are related to the wellknown Kalman filter state-space model. This model provides a flexible tool for modeling variation in the regression coefficients and is very popular in engineering. Generally, models with varying coefficients have not been widely used in econometrics because of the ad hoc nature of their specification. Variation of the regression coefficients can be justified mainly as a way for accounting for a suspected misspecification of the regression equation. References [1] Cipra, T Finanční ekonometrie. Praha: EKOPRESS, 538 p. [2] Conerly, MD, Mansfield, ER An approximate test for comparing heteroscedastic regression models. J. Amer. Statist. Assoc. 83, p

38 [3] Čechová, I, Beránková, J, Zerzánová, D, Nedoma, R, Hrdlička, H Military professionals and their language training: research projects findings. Economics and Management 2012/1, p [4] Giles, D, Scott, M Some Consequences of Using the Chow Test in the Context of Autocorrelated Disturbances. Economics Letters 38, p [5] Harvey, AC An alternative proof and generalization of a test for structural change. The American statistician 30, p [6] Honda, Y, Ohtani, K Modified Wald Tests in Tests of Equality between Sets of Coefficients in Two Linear Regressions under Heteroscedasticity. The Manchester School of Economic & Social Studies, Wiley Blackwell, vol. 54(2), p [7] Chow, GC Tests of Equality between Sets of Coefficients in Two Linear Regressions. Econometrica 28(3), p [8] Kmenta, J Elements of Econometrics (2nd edition). Michigan: University of Michigan Press. 800 p. [9] Ministerstvo obrany České republiky Ročenka 2005 Praha, AVIS. 244 p. [10] Neubauer, J Modelling of Economic Time Series and the Method of Cointegration. Austrian Journal of Statistics 35, no. 2-3, p [11] Odehnal, J, Sedlačík, M, Michálek, J An Analysis of the impact of institutional environment on terrorism risk. Economics and Management 2012/3, p [12] Rao, CR, Toutenburg, H, Shalabh, Heumann, C Linear Models and Generalizations Least Squares and Alternatives (3rd edition). Berlin, Heidelberg, New York: Springer. 570 p. [13] Saliger, R Organizační struktura armády České republiky. Economics and Management 2012/2, p [14] SIPRI Yearbook: Armaments, Disarmament and International Security. Online: [15] Štěpánek, B., Otřísal, P Aplikace vybraných matematicko-statistických metod při rozhodovacích procesech v působnosti Join CBRN Defence Centre of Excellence. Economics and Management 2011/2, p [16] Thursby, JG A comparison of several exact tests and approximate tests for structural shift under heteroscedasticity. J. Econometrics 53, p

39 EFFECTIVE INTERPERSONAL COMMUNICATION: UNDERSTANDING OF THE TERM COMMUNICATION BY FUTURE PROFESSIONALS 38 Emilie Franková Abstract: The paper presents partial results of extensive qualitative research performed at the Faculty of Business and Management of Brno University of Technology. Within the research, the meanings of key management and economic terms in the minds of future professionals were explored by means of mind mapping. The paper deals with one of the examined terms communication and the possible connections between an effective interpersonal communication and the meaning and understanding of the term communication in the minds of respondents students of the field of Managerial Informatics. The obtained results are commented upon and discussed. The conclusion summarizes the recommendations for the teaching of effective interpersonal communication both at schools and within further training of managers, entrepreneurs and employees. The paper is one of the outputs of specific research project Usage of Mind Mapping Method for Mapping of Meaning (Understanding) of Terms registered at Brno University of Technology under no. BD Keywords: communication, meaning associated with the term communication, mind mapping 1. Introduction We cannot avoid communicating. This statement [1] can be considered the basic rule of social or interpersonal communication. We are often reminded that a human being is a social being and that we become people thanks to growing up among others and communication with them interweaves with our entire lives [2]. However, if that is so why do people so often not understand each other? May that be because the term communication, so frequently used nowadays, is used and understood in different meanings, which can easily cause problems not only in our personal but also study and work environments? The term communication comes from Latin communicare, which means to share, divide with, join with; the base of the word is communis which means common [3]. The quoted Czech entry in the encyclopaedia confirms our everyday experience that the word can be used in many different meanings, e.g. for conveying information, electronic communication, verbal communication, nonverbal communication, interpersonal communication, mass communication, group communication and others; moreover, in Czech it is used for roads, in English it is used for messages or documents and in plural for routes and transportation for moving troops [4]. It follows that the term usage is complicated by the many different meanings. However, if we seek our interpersonal communication to be effective and we wish to achieve mutual understanding, then it is vital that the communicators use terms in the same or at least similar ways.

40 Within an extensive qualitative research implemented at the Faculty of Business and Management, Brno University of Technology, we explored what meanings the term communication is associated with in the minds of respondents and how these meanings can affect the mutual understanding. 2. Research Aim and Methods 2.1. Mental Mapping of the Term Communication The above mentioned qualitative research focuses on mental mapping of meanings of key economic and management terms in the minds of future professionals in these fields. The respondents of the first stage of the research implemented in school year 2009/2010 were the students of first years of various study fields in the daily program, and the collection of data (i.e. the creation of mental maps) was carried out at the beginning of the first year, i.e. at the beginning of their studies. The research project assumes that future professionals will expand and deepen their knowledge of key terms from the fields of economics and management during their university studies and that this shift will be possible to record at a higher level of their studies. It means the research is designed as longitudinal Research Aims The aims of the part of qualitative research presented here were: - to elicit respondents mind processes related to the relevant term; - to capture the content and the structure of these mind processes by the method of mind mapping; - to use results of the obtained mind maps analysis for a demonstration of the possible ways of using this method for the mapping of the meaning (understanding) of terms; - to point out the possible use of this method for both teaching and managerial and entrepreneurial activities Methodology and Research Sample The method used in the presented research for the examination of the term communication in the respondents minds was mind mapping, i.e. an intentional evocation of theme-oriented mind processes and the capturing of their content and structure in mind maps ([5]; [6]; ]7]; [8]; [9]; [10]; [11]; [12]). The creativity expert Tony Buzan is considered to be the author of the concept of mind maps [13]. However, the use of spatial structures, models and images for the formation and expression of thinking and mind processes and systems has been known for many years (e.g. [14]; [15]; [16]; [17]; [18]; [11]; [12]; [19]; [7]). Nowadays, various methods for mapping and their different aims and results of their use both for individuals and for teams and organizations are being published and widely discussed ([5]; [6]; [20]; [21]; [22]; [23]; [24]; [25]; [26]; [27]; [28], etc.). The publications of these and other researchers prove that an appropriate mapping method used in correspondence with the demanded aim brings valuable information for the development of an individual, a team or an organization ([10]). Within the presented research individual mind maps were created. The respondents, i.e. the students of the first year of study fields in a daily program at the Faculty of Business and Management of Brno University of Technology, were among others presented with one of the key management terms, i.e. the term communication and their task was to capture their mind processes based on this central point and the resulting structure by means of an individually created mind map. 39

41 The obtained maps were analysed both as regards their form and content. The paper concentrates on the results of the content analysis of first level associations for a group of students (men) of Managerial Informatics. Among all respondents there were 102 of them, or rather 95 as this number of students submitted complete data and the remaining 7 students handed in incomplete data; therefore, they were excluded from further processing. 3. Results and Discussion 3.1. Results of the Term Communication Meaning Examination The results of the mind map analyses showed that each respondent created an original mind map capturing the content and structure of their mind processes initiated by the provided instruction and the central point, i.e. the term communication. In the analysis, we assume that the meaning of a provided (central) term, i.e. the meaning the respondents associate with the term, and also their knowledge related to the term, are reflected in different meaning levels visualized in each of the analysed mind maps. This paper will only present the first levels of meanings (associations) as we consider these to be the meanings which are most closely connected with a term [8]. In the qualitative methodology, each response, even a unique one, is significant. The mind maps obtained from 95 respondents concerning the term communication contained 581 first level associations in total. The following tables present the associations according sorted into the identified meaning categories; we are aware that the classification of associations is not always clear; further, that other ways of classification are also possible and some associations could be classified to different categories from those we have chosen. Table 1 presents the understanding of the term communication in the sense of interpersonal communication; Table 2 presents the understanding of the term communication in the sense of technical support for interpersonal communication, and Table 3 shows the associations expressing the evaluation of communication. We did not include associations of communication connected with transport (in total 18 first level associations) and those connected with the communication among animals (in total 2 first level associations). Moreover, further 14 first level associations were excluded from the tables for their variety and specific nature or unclarity of meaning. Table 1 Communication in the sense of interpersonal communication. Source: the author. Number of Content of identified categories first level associations 88 verbal communication, speech, language, letters, etc. 30 purpose of communication (relationship, relationships, greeting, fun, message conveying, education, lobbing, etc.) 28 people, a person 21 nonverbal communication, body language, gestures, etc. 18 place of communication (school, army, sport, disco, pub, shop, work communication, in private, space, etc.) 14 talk, chat, dialogue, conversation 12 clichés, swearing, lies, bullshit, etc. 12 friends, friendship, partnership 40

42 10 with parents, with a partner, with a professor, between a married couple, etc. 10 the essence of communication (basic feature, exchange of information, current, need, message, base of interpersonal relationships, necessity, etc.) 7 meeting, negotiations, discussion, team communication 5 social, society, contact 5 eloquence, expressing, impression, art 4 becoming closer, making ourselves understood, cooperation 2 names, titles 2 monologue 2 family 15 unclassified associations 285 sum of first level associations in the sense of interpersonal communication The overview of first level associations and their classification in Tables 1 and 2 show that the term communication is predominantly associated with interpersonal communication in the respondents minds (285 first level associations), and further with the technical support for interpersonal communication (235 first level associations). We can state that the meaning of the term communication reflects the necessity and the importance of interpersonal communication in the lives of individuals and the society and that in this group of respondents, Managerial Informatics students (men), the meaning of the term communication is probably linked not only to their common user experience with working on PC but also to the content of their study field. Table 2 Communication in the sense of technical support for interpersonal communication. Source: the author. Number of Content of identified categories first level associations 76 information media (internet, TV, radio, media) 55 telephone devices, incl. mobiles, faxes, PDA and HTC 25 communication applications for communicating via internet ( etc.) 25 computer communications (PC with components, data, informatics) 24 communication devices in their temporal development (from pigeon post to modern technologies) 10 wireless communication infrastructure (e.g. wifi, satellites, etc.) 7 voice communication via telephone devices 6 social networks for communication on the internet (mainly facebook) 5 wire communication infrastructure 2 other communication using telephone devices (SMS, videochat) 235 sum of first level associations in the sense of technical support 41

43 We also separated and classified first level associations with an obvious evaluating aspect (see Table 3). They form a small fraction of the total number of first level associations (4.6 %); however, it is notable that most of the evaluating associations are negatively biased 19 out of 27 evaluating associations. On the other hand, we are aware (as has been mentioned) that the classification of associations is sometimes ambiguous and other ways of classification can be used, which could show a different ratio between the negatively and positively biased meanings of the term. Number of first level associations Table 3 Associations with evaluating aspects. Source: the author. Content of identified categories 12 problem, problems, lack, not good at, unskilled, sometimes zero, hard to start, stagnates, tiredness, complicated, a lot of effort 6 joy, respect, sharing, tolerance, ethics, responsibility 3 aversion, fight, bullying 2 important, importance 2 stupid topic, silly 2 defects, noise 27 sum of evaluating first level associations 3.2. Fictitious mental map capturing the obtained results Figure 1 represent fictitious mental map capturing the obtained results. Source: the author. 42

44 3.3. Comparing results with the results of the mind mapping of the term communication in another group of respondents The results of the mind mapping of the term communication in the presented group of respondents are shown in Table 4 and compared with the results of the mind mapping of the term communication in another group of respondents see Table 5. The group for comparison, even though a smaller one, contained students (men) in the first year of Tax Consultancy field in the Faculty of Business and Management of Brno University of Technology. Also in this group, the mind mapping of meanings of terms was carried out at the beginning of their studies. In total, 13 respondents of the comparison group provided 82 first level associations (the table does not include associations concerning communication among animals 1 first level association in total neither associations concerning communication in the sense of transport 2 associations in total). All 82 first level associations acquired from the comparison group respondents were classified in the same system of categories as those created for the focus group; none of the associations had to be classified as unclassified associations. Table 4 The overview of first level association categories for Managerial Informatics respondents. Source: the author. First level associations absolute relative Content of the main identified categories number number interpersonal communication technical support for interpersonal communication associations with an evaluating aspect sum of first level associations Table 5 The overview of first level association categories for Tax Consultancy respondents. Source: the author. First level associations absolute number absolute number Content of the main identified categories interpersonal communication technical support for interpersonal communication associations with an evaluating aspect sum of first level associations The comparison of the two groups of respondents supports the above mentioned opinion that the meaning of the term communication in the respondents minds is affected by their dominant field. The associations of the respondents from the Tax Consultancy were connected with interpersonal communication to a higher degree than in the case of the respondents of Managerial Informatics, where on the other hand the associations of the technical support for interpersonal communication were more frequent. The influence of the field studied before entering the current field of study has been confirmed not only in this study into mind mapping of the meaning of the term 43

45 communication but also in the results of mapping of other significant terms from the fields of economics and management in our previous study [10], where the process of mind mapping proved that the respondents future information professionals in comparison to future managers and entrepreneurs understand the term informatics in a wider range of meaning, which can be interpreted as a sign that they are better informed about the meaning of the term. 4. Conclusion The paper deals with the term communication and its understanding by future university graduate professionals in the field of managerial informatics. The meaning of the term in the respondents minds is explored using a qualitative procedure referred to as mind mapping. The analysis of the obtained individual mind maps identifies categories of associations and classifies the first level associations into three basic categories: communication in the sense of interpersonal communication, communication in the sense of technical support for interpersonal communications, and associations with an obvious evaluating aspect concerning communication. The results of the classification are presented in tables and also visualized in Fig. 1, which represents a fictitious mind map of first level associations. The classification used for the first level associations predominantly shows the necessity and importance of interpersonal communication in the lives of individuals and the society and, what is more, the influence of respondents study fields on the meanings associated with the term. Moreover, a negative bias of associations with evaluating aspect concerning communication was identified. This aspect of the evaluation of communication will be further monitored and explored. As we remembered in the introduction, we cannot avoid communicating. This basic rule of interpersonal communication concerns both personal, family, and social life and also studies and work. The paper presents the understanding of the term communication by one group of respondents explored within larger research it will certainly be interesting to compare the results of the understanding of the term by other groups of respondents; however, these results are not available at the moment. Still, based on the presented results we can recommend the teaching practice of managerial and entrepreneurial study fields to focus both on knowledge and skills related to the psychology of interpersonal communication and its technical support, and also on the clarification, training and emphasis of positive principles and aspects of social contact and interpersonal communication which as a consequence could support effective communication substantially (see also e.g. [1]; [29]: [2]). A similar recommendation can also be given to managers and entrepreneurs who chair various businesses and work meetings including intentional effect on their co-workers. 44 References [1] KŘIVOHLAVÝ, J. Jak si navzájem lépe porozumíme : kapitoly z psychologie sociální komunikace. Praha: Svoboda, [2] FRANKOVÁ, E. Komunikace v řízení: studijní text pro kombinovanou formu studia. Brno, Akademické nakladatelství CERM, [3] Wikipedia, Open Encyclopedia [in Czech]. Retrieved February 19, Available from: [4] Dictionary.com. Retrieved March 14, Available from: [5] BUZAN, T. Mentální mapování. Praha: Portál, 2007.

46 [6] BUZAN, T., BUZAN, B. The Mind Map Book. 4 th revised ed. Harlow: Educational Publishers LLP, [7] FRANKOVÁ, E. Myšlenkové mapy a jejich využití při rozvoji manažerů. In: Česká ekonomika v procesu globalizace. Brno: MU, 2006, [8] FRANKOVÁ, E. Pojem informatika a chápání tohoto pojmu u budoucích manažerů a podnikatelů. In: Ekonomika, financie a manažment podniku [CD- ROM]. Bratislava, Ekonomická univerzita, p. [9] FRANKOVÁ, E. Kreativita a inovace v organizaci. Praha: Grada Publishing, [10] FRANKOVÁ, E., MARKOVAC, V. (2010). The Term Informatics, Its Meaning and Understanding by Future Professionals. Management Research and Practice [online]. Vol. 2, no. 2, pp Available from: [11] O KEEFE, J. Týden pro větší tvořivost. Praha: Talpress, [12] RITTER, D. & BRASSARD, M. THE CREATIVITY TOOLS MEMORY JOGGER. SALEM: GOAL/QPC, [13] ŽÁK, P. Kreativita a její rozvoj. Brno: Computer Press, [14] GUILFORD, J. P. The Nature of Human Intelligence. N.Y. - London: McGraw- Hill Book Company, [15] GUILFORD, J. P. Three Faces of Intellect. In: W. B. BARBE & J. S. RENZULI eds. Psychology and Education of the Gifted. New York: Irvington Publishers, Inc. 1975, [16] DE BONO, E. Letters to Thinkers. London: Penguin Books, [17] DE BONO, E. Atlas of Management Thinking. London: Penguin Books, [18] BIRKENBIHL, V. Piliny v hlavě? Návod k užívání mozku - od majitele mozku k uživatelům mozku. Hradec Králové: Svítání, [19] BENDER, P. U. Niterný leadership. Praha: Management Press, [20] GARAVAN, T. N., DEEGAN, J. Discontinuous change in organizations. Using training and development interventions to develop creativity. Industrial and Commercial Training [online]. 27(11), Retrieved February 17, Available from: =Article&Filename=Published/EmeraldFullTextArticle/Articles/ html [21] ZAMPETAKIS, L. A., TSIRONIS, L., MOUSTAKIS, V. (2007). Creativity development in engineering education: the case of mind mapping. Journal of Management Development [online].26, Retrieved February 17, Available from: &Filename=Published/EmeraldFullTextArticle/Articles/ html [22] Mind maps chart the way to business efficiency. (1998). Journal: Education + Training [online]. 40(4), Retrieved February 17, Available from: &Filename=Published/EmeraldFullTextArticle/Articles/ html [23] KOH, S. C. L., TAN, K. H. (2006). Operational intelligence discovery and knowledge-mapping approach in a supply network with uncertainty. Journal of Manufacturing Technology Management [online]. 17, Retrieved February 17, Available from: 45

47 &Filename=Published/EmeraldFullTextArticle/Articles/ html [24] WEXLER, M. N. (2001). The who, what and why of knowledge mapping. Journal of Knowledge Management [online]. 5, Retrieved February 17, Available from: &Filename=Published/EmeraldFullTextArticle/Articles/ html [25] VAN DEN BERG, C., POPESCU, I. (2005). An experience in knowledge mapping. Journal of Knowledge Management [online]. 9, Retrieved February 17, Available from: &Filename=Published/EmeraldFullTextArticle/Articles/ html [26] LIEBOWITZ, J. (2005). Linking social network analysis with the analytic hierarchy process for knowledge mapping in organizations. Journal of Knowledge Management [online]. 9, Retrieved February 17, Available from: &Filename=Published/EmeraldFullTextArticle/Articles/ html [27] HELLSTRÖM, T., HUSTED, K. (2004). Mapping knowledge and intellectual capital in academic environments. Journal of Intellectual Capital [online]. 5(1), Retrieved February 17, Available from: ml. [28] DRIESSEN, S., HUIJSEN, W-O., GROOTVELD, M. A framework for evaluating knowledge-mapping tools. Journal of Knowledge Management [online]. 11(2), pp Retrieved February 17, Available from: html [29] MCLAGAN, P., KREMBS, P. Komunikace na úrovni : jak dosáhnout ještě vyšší výkonnosti pomocí účinné komunikace. Praha: Management Press,

48 FISCAL RESTRICTION AND ITS IMPACT ON THE ECONOMY INCLUDING THE MILITARY ASPECTS Vendula Hynková Abstract: Nowadays it seems to be very adversarial topic the fiscal restriction and the fiscal policy at all. Fiscal policy means how the level of government spending and the taxation are set by government policymakers. These days the priority of the Czech Government is to lower state debt and prevent the dynamically increasing indebtedness that can lead even to the state bankruptcy. Regrettably, the fiscal restriction causes primarily the reducing of aggregate demand for goods and services. We can take this in the account in the short run. Together with the tax raise we can remain the serious output gap for a long time. And this gap can be serious due to the multiplier effect we have already been able to observe. Keywords: fiscal restriction, military expenditures, government debt, budget deficit, multiplier effect 1. Introduction This paper will outline the consequences of restrictive fiscal policy including the impact on defense area. The first chapter mentions the reason for choosing current fiscal policy, then describes the development of Government debt, budget deficits, state budget revenues and expenditures in given period. The second chapter reflects the negative impact of fiscal restriction on military expenditures. And the most important third chapter describes negative multiplier effect of the restrictive macroeconomic policy and points out the danger of additional fall of real GDP, tax revenues and continuous putting pressure on government expenditures (including military expenditures). 2. The Czech Government and its Fiscal Policy The Government of the Czech Republic has recently decided to increase tax burden and reduce government spending. This type of its policy is called fiscal restriction. The Government s goal is to decrease government debt and start it with the restraint of budget deficits. Table 1 shows the figures illustrating the rise in Government debt during 7 last years, from the year 2006 to Whereas in 2006 the debt was billion CZK (billion = 10 9 ), in 2012 it was doubled to 1,692.8 billion CZK. The growth can be described as exponential. Graph 1 is pointing out this fact. The exponential growth of debt was stopped by fiscal restriction in 2012 and this trend is still continuing at the beginning of current year

49 Table 1 Government Debt and Debt as a percentage of Nominal GDP Variable/Year Government Debt (Billion CZK, 10 9 ) Debt as a percentage of Nominal GDP , , , , , % 25.9 % 26.5 % 29.3 % 33.8 % 40.8 % - (not available) Source: The Finance Ministry of the Czech Republic: [1]; The Czech Statistical Office: [2]. Figure 1: Growth of Government Debt in Now it is time to look more deeply of what happens in the Czech economy during the fiscal restriction and what we can expect that will happen with the government debt in following years. We can find annual figures of approved state budget revenues, expenditures and budget deficit from the website of Ministry of Finance of the Czech Republic. These numbers are transferred in Table 2. As we can see, there is a decline in state budget revenues in 2010 due to the peak of recent economic recession in Then state budget revenues have been rising slightly until now, probably not so much as Czech policymakers have been expected. Government spending was managed to decrease only in 2011 and also not so rapidly for that purpose of reducing debt as it was expected. Thus, mainly due to mandatory expenditures, we have to accept budget deficit and we are still getting into debt. The situation of every indebted economy has been worsened due to the consequences of recent global economic recession started in

50 Table 2 State Budget Revenues, Expenditures and Budget Deficit of the Czech Economy Variable/Year Approved State Budget Revenues, , , , , ,084.7 billion CZK (mld. = 10 9 ) Approved State Budget Expenditures, , , , , , ,189.7 (10 9 ) Budget Deficit, billion CZK Source: The Finance Ministry of the Czech Republic: [1]; The Czech Statistical Office: [2]. Figure 2 represents the development of stated budget revenues, expenditures and deficits within the chosen period. During successful years 2006, 2007 and 2008 state budget deficits copies the gap between increasing government spending and revenues, except the 2007 it diminished, and the lowest deficit was showed in 2009: 38.1 billion CZK. After the recession in 2008 the situation worsened, mainly in 2009, when the approved budget deficit climbed up to billion CZK. In that time, income taxes together with GDP decreased and government spending was still on the higher level. Figure 2: Development of State Budget Revenues, Expenditures and Budget Deficit 3. Fiscal Restriction and its Impact on Military Expenditures Government s goal was to decrease government spending. And it touched the military expenditures very dramatically. Table 3 illustrates approved military expenditures in their nominal value and as a percentage of nominal GDP in the period As we can see, there is a decline in military spending after the year Military spending was strangled and a lot of saving there was required. For the year 2012 it was billion CZK and for the year 2013 again the lower spending billion CZK. The problem is that the obligation stated by the NATO (North Atlantic Treaty Organisation) is to keep the minimum military spending at the level of 2 % of GDP. And this is quite 49

51 far from almost 1 % GDP these days. Primarily Defense Ministers call for stopping this downward trend and are afraid of the security of the country. Due to the cuts, we have found ourselves on the edge that threatens the security of our country We may save some milliards in the short time, but we can cause irreparable damage in the long run (translated), Alexandr Vondra, the previous Defense Minister of the Czech Republic, said in June [3] Not only the Czech Ministry of Defense is continuously afraid of decreasing military spending in our country, but also The North Atlantic Treaty Organization (NATO) of decreasing aggregate military expenditures. Strict fiscal policy of European member states of NATO and rapid growth of China s real GDP seems to be the main causes why the Europe was overtaken by Asian military spending in last year Asian countries increased their defence budget by more than 3% in real terms last year, the IISS said. China increased its share of total military expenditure on weapons in the region to more than 30%. Official Chinese military spending totalled nearly $90bn last year, more than two-and-a-half times the 2001 level. [4] Now the Table 3 shows the development of military expenditures as a part of government spending, both in nominal value and as a percentage of nominal GDP. And in Figure 3 we can see the downward trend of military expenditure ratio in the Czech Republic. Variable/Year Table 3 Nominal GDP and Military Expenditures of the Czech Economy Nominal GDP, billion (10 9 ) CZK 3, , , , , , ,809.3 Approved Military Expenditures, mil. 52,953 55,694 53,906 54,167 55,984 48,867 43,878 CZK Military Expenditures/Nominal GDP (%) Source: The Finance Ministry of the Czech Republic: [1]; The Czech Statistical Office: [2]. 50

52 Figure 3: Development of Czech Military Expenditures as a percentage of Nominal GDP 4. Negative Multiplier Effect in the Economy When the government decided to lower state expenditures in the way of decreasing state purchases and the number and wages of state employees, it means that fiscal restriction began. Assume now a model situation to clarify what occurs during the fiscal restriction. For example, there is a cut of 10 billion CZK on government expenditures. According macroeconomic theory we know that it does not mean that budget deficit will be certainly reduced. We are also afraid of tax revenues fall due to this cut. Because of fiscal restriction, the real GDP will decrease, even by more than 10 billion CZK considered. The fiscal restriction is said to have a multiplier effect on aggregate demand and then on real GDP. The immediate effect of the decrease in state expenditures is lower demand and this means the occurring output gap, raising rate of unemployment, higher state benefits and lower profits for private firms. But it is not all, negative multiplier effect comes. As the workers get lower earnings and firm owners get lower profits, they respond to this decrease in profits and salaries by reduction of their own spending on consumer goods and services. As a result, the government restriction lowers the demand for products of many other firms in the economy. Decrease in GDP can be higher. And this is happening nowadays. Lower earning and profits reduce consumer spending once again and so on. Thus, there is negative feedback as lower demand leads to lower income that in turn leads to lower aggregate demand. As all these impacts are added together, there is no surprise that the total effect on the quantity of goods and services demanded can be much smaller than the initial decrease in government spending. We know the multiplier effect, but we do not know the figure of multiplier exactly. According to the macroeconomic literature we can derive that this figure depends on the following values: marginal propensity to consume, marginal rate of taxation and marginal propensity to import. [5] Marginal propensity to consume is the fraction of extra income that a household consumes rather than saves. The larger marginal propensity to consume in the economy is, the greater is this induced negative effect on consumption and aggregate demand. 51

53 The Government of the Czech Republic decided also to increase indirect taxes and expects now the improving of the situation with the state budget deficit and government debt. But it seems that the multiplier effect is ignored and also the effects related to the shadow economy flourishing. According the euobserver.com website, almost every member state of the European Union, including the Czech Republic, slides in recession. Recession occurs when the real GDP is falling longer than 6 month. Although there is an optimistic forecast consisting in the end of recession in spring 2013, we can expect more likely the continuing fall of real GDP and higher rate of unemployment in the Czech economy. According to estimates released on Thursday (14 February) by EU statistics agency Eurostat, economic output in the 17 eurozone countries fell by 0.6 per cent of GDP. This compares with a 0.5 per cent decline across the EU as a whole. [6] National statistics of the Czech economy and the statistics of European Union are worrying for policymakers. They are now seeking new ways how to improve economic situation. 5. Conclusion It is obvious that fiscal restriction has negative impact on the economy and undesirable effect in defense sector. Negative multiplier effect can worsen the economic situation and prolong the putting pressure on seeking more savings in the state budget. National statistics reflecting the health of the economy and also figures calculating government debt and budget deficits will be the evidence whether the continuing fiscal restriction should be considered as a legitimate measure. References [1] Ministry of Finance of the Czech Republic. State Budget. Available from: < [vid ]. [2] Czech Statistical Office. Macroeconomic Indicators. Available from: < [vid ]. [3] ČT24. Omezení výdajů na obranu Vondra odmítá, ohrozilo by bezpečnost. Available from: < [ broadcast]. [4] NORTON-TAYLOR, R. Asia s military spending likely to overtake Europe this year. [online]. Available from: < [ ]. [5] FRANK, R. H., BERNANKE, B. S. Principles of Macroeconomics. 3rd Edition. McGraw-Hill/Irwin: New York, ISBN p. [6] FOX, Benjamin. Eurozone Still Mired in Recession. [online]. Available from: < [ ]. 52

54 CUSTOMER SERVICE OF SUPPLY CHAIN MANAGEMENT OPERATION WITHIN ASSA ABLOY CZECH & SLOVAKIA Zbyšek Korecki, Radka Lopourová, Milan Lauber and Samuel A. Darkwah Abstract: The aim of this article is to evaluate current company transformation in the framework of the modern supply chain theory and offshoring trends being implemented in ASSA ABLOY. The new approach in company development is based on an effort to create Centre of Excellence being focused on specific type of production in low cost countries. Keywords: supply chain management, Center of Excellence, customer service, offshoring 1. Introduction Globalization has brought a new sight to development of the supply chain and its particular components and functions definition. Supply chain can be explained as a net of organizations connected to products flows, services flows, financial flows and information flows from the place of their origin to clients [5] or sequence of events being focused on the final customer. Development from logistical channel to supply chain has been influenced by economic environment and globalization trend with an effort to achieve efficient international division of labour. Globalization from the economic point of view represents deeper mutual cooperation among the countries of the core and peripheries. In comparison to the above mentioned definitions, supply chain means double-sided material flow and its operation brings new added value mainly for the final customers. According to [3] supply chains are then transferred into horizontal and vertical supply nets. Logistical channel forms the subsystem of the supply chain which is more demanding in case of information flow structure. Necessity to define logistical channel and system correctly belongs to basic preconditions of supply system successful transformation. Logistical channel can be defined as the sequence of activities, the performance of which is necessary for the final customer requirements fulfilment in the right time, quantity, quality and at the required place, [2] while logistical system can be explained as a set of organizations and their relationships, the elements of which deal with planning and sequence of activities performance within the logistical channel [2]. Supply chain is a set of horizontally and vertically connected logistical channels and supply system is a set of horizontally and vertically connected logistical systems. Result of precise definition of modern logistics functions (distribution, client service, reverse logistics) is the ability to restructure existing systems which enables us to separate activities and their holders. 53

55 The structure of the supply system will be used for better understanding the whole company production process: Figure 1: Supply system structure Source: adjusted by [2] Contemporary system analysis from the point of view of its determinism or stochastism, dynamics or statics is the necessary condition for system theory and supply system understanding. Let s suppose that company ASSA ABLOY, Czech Republic system is dynamic with the ability to adapt to customer demand. Than we can determine formula: Y (t) = b 1 u(t-1) + b 2 u(t-2) +..+ b m u(t-m)- a 1 y(t-1) - a 2 y(t-1) - - a n y(t-n) (1) for the assumption of system reaction to inputs u (t) and outputs y (t) in time t. A i and b i values represent regressive invariables for expression of dependence of the system reaction to inputs and outputs in time.[4] If the supply system (whis is influenced by customer behaviour and ability of a company to react to changing conditions) is defined than we talk about supply net. Horizontal and vertical dimensions belong to basic characteristics of the supply net. Vertical dimension is determined by the number of degrees through which material flows and horizontal structure is represented by the number of partners within the same degree. Offshoring can be defined as a process of mother company activity or a complex of activities transfer to low cost countries. It can be connected to increasing unemployment within mother company country, problems with production quality assurance, unreliable level of customer service and more demanding inventory management [1]. 54

56 If company decides to transfer part of its manufacturing process, it is important to consider: - appropriate product/service, - political and legal system of low cost countries, - production plants alocation, - level of infrastructure, - lead times length, - available production capacities, - inventory level, - possibility to use local suppliers and logistic services providers (e.g. for transportation, warehousing etc.), - operation of company ERP (Entreprise Resource Planning) system from the international point of view, - analysis of benefits and costs of this transfer from financial point of view [6]. Brno can serve as good example of offshoring trend operation in the Czech Republic. For instance American company FEI has decided to transfer one of its production plants for electron microscopes from Netherlands to Brno and the main reason was lower manufacturing costs. American company NetSuite (IT branch) has opened its research and development center in Brno first after California thanks to high density of IT specialists in our region and of course lower salaries than in the USA. Group Hartman (healthcare products) has transfered two of its Czech plants to India and China. Average hour wage rate in the Czech Republic was 4.50 EUR, in India 0.80 EUR in The effort to reach compromise between production costs optimization and the ability to satisfy customers needs has led to Centers of Excellence establishment which should represent higher level of operation from the point of view of quality, centralization of specialists and concentration on predefined products manufacturing in conformity with global company strategy. 2. Transformation of FAB ltd. into subsystem Centre of Excellence ASSA ABLOY Czech & Slovakia ASSA ABLOY is the world s largest lock group.the Nordic region constitutes the Group s base, with market-leading positions in Sweden, Finland, Denmark and Norway. The Group is also the market leader in Belgium, France, the Czech Republic and Germany and achieves leading position in Great Britain through VingCard, the forefront of the worldwide market for electronic hotel locks. The group is the second largest player in the USA. ASSA ABLOY is active in the product segments construction locks, industrial locks, door and window hardware and other accessories and electromechanical locks including hotel locks. ASSA ABLOY is also active in the security doors product segment in the USA and in automobile locks in the Czech Republic. Securitas AB s shareholders received the Assa Group as a dividend in 1994, after which Abloy was acquired from Metra Oy Ab through a new issue. As a result, Metra Oy Ab became the largest owner in ASSA ABLOY. Globally, the lock market comprises many small and medium-sized companies, many of which have very strong positions in their local markets, with long 55

57 histories. The total size of the lock market is estimated at SEK 150 billion. One characteristic of the market is that a high proportion of sales (approximately 50 percent) derives from the after-sales market. Strong brand names, local standards, closeness to national distributors and customers, combined with the brand loyalty of various customers, also contribute to company stability. ASSA ABLOY involves five divisions (EMEA with maximum sales share, Americas, Asia-Pacific, Global technologies, Entrance systems) being localized in Europe+MiddleEast+Africa (EMEA), America, China, Australia and New Zealand with following sales shares in %: Figure 2: Sales shares of the ASSA ABLOY divisions Source:adjusted by [12] There are numbers of very strong brand names in the Group, for example ASSA- Sweden, ABLOY-Finland, TrioVing-Norway, RUKO-Denmark, Vachette and JPM- France, FAB-Czech Republic, IKON-Germany, Sargent and Curries-U.S. as well as VingCard and Elsafe in hotel security. 3. Market and market trends Mechanical locks, electronic locks and security doors form the most important elements of the ASSA ABLOY production program. Production of mechanical locks is more or less stable as can be seen from the following figure. Locks production has significantly increased thanks to the contract with Skoda company covering deliveries for Skoda s latest model, the OCTAVIA. 56 Figure 3: Production share Source: [10,11,12]