Risk Management Of Public Debt In Emerging Countries Finance Essay - Free Essay Example

Sample details Pages: 8 Words: 2441 Downloads: 3 Date added: 2017/06/26 Category Finance Essay Type Argumentative essay Did you like this example? Overall objective of public debt management is to reduce the countrys fiscal vulnerability by stabilizing the debt ratio dynamics at some desirable level (Melecky 2007). The traditional approach to public debt management analyzes debt sustainability in the absence of risk. The risk management approach, in contrast, shows that risk is minimized if a debt instrument provides insurance against variations in the primary budget and the debt ratio due to uncertainty about output and inflation (Bloomenstien 2005). Don’t waste time! Our writers will create an original "Risk Management Of Public Debt In Emerging Countries Finance Essay" essay for you Create order Risk management, which lies at the heart of government debt management, makes crucial link between the formulation and implementation of debt management strategies (Wheeler 2004). Importance of public debt risk management as appropriate tool of debt control was confirmed by financial crises from the nineties and especially the late 2000s recession, which leave many economies worldwide, both developed and emerging, with high budget deficits and public and external debts. Managing risks associated with sovereign debt is particularly challenging in emerging market economies compared to more advanced economies due to the volatility in the macro environment, as well as the complexity of the debt structure and the underdevelopment of financial markets, which make it harder to use more advanced risk management tools (Bloomenstein 2004). More specifically, particular issues of sovereign debt risk management in EMCs include: Lack of natural stabilizers. EMCs lack the natural stabilizing structural characteristics that allow the use of effective counter-cyclical policies (Garcia and Rigobon 2004). Inefficient government bond market. Emerging debt managers often face difficulties or impossibilities to borrow in nominal terms in the domestic currency in the long-run, which results in less options for fiscal adjustments and more dependency from captive lending agreements. This phenomenon is well-known as original sin (Eichengreen, Hausmann and Panizza 2002). Limitations to benefit from risk-sharing. Many emerging markets are not in the position to benefit from efficient international or domestic risk-sharing, neither to share a significant degree their risks with their creditors (Bloomenstein 2005). High risk of contingent liabilities. Emerging market economies faces high risk of contingent liabilities World Bank Study of public debt dynamics shows that the realization of (implicit and explicit) contingent liabilities contributes nearly 50% to the increase i n public debt in a sample of 21 emerging markets (Anderson 2004). 3. LITERATURE REVIEW Public debt management as the general framework of the public debt risk management has been rarely issue of academic analysis until last two decades, although it has been practiced as a part of economic policy for centuries. Early academic papers in this field were primarily dealing with debt management objectives. Tobin (1963) regard government debt management primarily as a tool for macroeconomic stabilisation, with minimisation of interest costs coming secondary. Baro (1979) recommended tax smoothing as government debt objective, claiming that, if there is a sharp rise in government expenditure during a recession, this should not be compensated with tax increases, but rather be absorbed by a temporary deterioration of the budget balance. Consideration of tax smoothing as debt management objective became first mainstream line of academic reasoning about public debt governance and open the discussion on the issue of optimal debt structure that should provide a hedge against mac roeconomic shocks to the government budget, that is, by choosing a portfolio of securities with returns that co-vary negatively with government consumption and positively with the tax base and, thus, output (Lucas and Stokey, 1983; Barro, 1995; Bohn, 1990; Missale, 1997). Licandro and Masoller (2000) provide analytical solution for the optimal debt structure. Due to the Stabilization and Growth Pact that was introduced to European Monetary Union, budget deficit of member countries has been limited to 3%, thus Missale (2000) set the analytical solution for the optimal debt structure stating budget deficit to GDP as objective function. In general, budget stabilization or tax smoothing approach provides important insights in decision making process in public debt management and emphasized importance of the correlation matrix between key macroeconomic variables like inflation, GDP growth and interest and exchange rates for the optimization of debt structure. However, tax smoothing ap proach as public debt management objective was criticized in terms of their practical accuracy. Alesina, Roubini and Cohen (1997) argue that debt managers ignore the budget stabilisation approach because budgetary policy is not driven by tax smoothing motives. They claim that governments put up with the welfare losses caused by tax rate fluctuations. De Haan and Wolswijk (2005) attribute the lack of practical application of the budget stabilisation approach to the fact that countries find it difficult to investigate how the various macroeconomic variables affect the debt costs and the balance. Furthermore, it is not known what shocks (demand or supply shocks) a country may expect. As a result, it is practically impossible to determine the right hedge for the budget balance in advance. Additional critics that could be addressed to this approach is that it says little about exposure of debt portfolio to risk and costs of debt. New mainstream line of academic reasoning has started a t the beginning of the century, when Sweden Debt Management Office (Bergstrom and Holmlund, 2000) introduced new approach to debt management that set minimization of debt costs an objective of public debt management and employs stochastic process modeling in order to capture stochastic nature of risk factors. Power to the rise of new approach was given by the International Monetary Fund and the World Bank, which Guidelines for the Public Debt Management, issued in 2001, states that the main objective of public debt management is to ensure that the governments financing needs and its payment obligations are met at the lowest possible cost over the medium to long run, consistent with a prudent degree of risk. In practical sense, it means that governments should look for such debt structure that minimize potential loss of adverse shocks and market movements by efficient management of the risks. Additionally, Guidelines clearly stated six types of the risk that governments should manage . Cost minimization approach was widely accepted by debt management authorities worldwide and included as public debt management objective in associated strategies (Wheeler, 2004, pp. 14-15). Correspondingly, large number of academic papers dealing with minimization of a government loss function based on numerical approach has emerged. According to Melecky (2007), recent numerical approaches can be broadly grouped regarding the indicators they produce: Cost at risk (CaR) approach. The main indicator of interest that concerns this group is the CaR measure, whereby cost is typically measured as a ratio to GDP. The standard parts of the simulation the CaR computation is a framework simulating the paths of the underlying economic financial variables which are modeled using usual approaches like term structure modeling of interest rates (Bodler 2002, 2003) or autoregressive modeling of stochastic variables (Bergstrom and Holmlund, 2000). Default probability based on specified go vernments debt-to-GDP default ratio. This approach again uses simulated paths of economic variables and the debt structure to compute the corresponding government debt-to-GDP ratios, but switch the focus from CaR computation to sustainability of debt, using different stochastic modeling approach like Vector Autoregression models (Garcia and Rigobon, 2004) or system of Brownian motion (Xu and Ghezzi, 2004). Default probability based on a distress barrier. This approach work with an explicit measure of sovereign credit risk derived from a contingent claim analysis (Gapen, Gray, Limand Xiao (2005), Gray, Merton and Bodie (2005)) The first comprehensive research that discusses issues of risk management of public debt was conducted by the Organization for the Economic Cooperation and Development (2005), comprising both theoretical advances in the area and debt management authorities practices. However, this research encompasses mostly industrialized countries, paying a little atten tion to the developing and EMCs. Issues of risk management of public debt in emerging market countries still remain insufficiently covered field, although it has been argued that there is significant difference between volatility of macro variables between developed and emerging economies (Bloomenstein and Santiso, 2007). 4. RESEARCH GOALS Structure and level of government portfolio is driven by the government borrowing requirements, which are results of the broader fiscal and monetary policy of the country. Once the borrowing requirements are determined, the question that arises is whether risk management tools, which have been broadly used by business financial institutions like commercial banks or investments fund, could be efficiently applied to the public debt portfolio in order to minimize its costs. The main issue of the thesis is to assess the efficiency of the risk management approach to the mitigation of risk of public debt and the predictability of public debt costs and government loss. Tools for measurement of risk exposure of the public debt are considered and compared in order to investigate whether they could capture complexity of macro environment in EMCs. Then, dynamic modeling of the government loss function is analyzed trough the simulation models to assess robustness of the loss paths to the ad verse market movements. Further, contribution of the risk management approach to the optimization of the debt structure toward insurance of long-term sustainability and identification of appropriate instruments that should be used to hedge risk exposures is investigated. The major research questions based on general research framework are: Which measurement of the risk exposure is more appropriate to use for the assessment of the public debt riskiness? Does risk management approach to public debt management lead to the efficient cost-risk optimization of public debt portfolio? Which types of risks are mostly mitigated by application of risk management approach? Is it possible to structure public debt portfolio to be robust against shocks of supply or demand or sharp changes in interest and exchange rates? Do financial derivatives contribute to the mitigation of public debt risks? The following working hypotheses, which could be amended or refuted in the research process, are derived from the research questions: Risk measure based on VaR approach efficiently capture market risk of government portfolio loss. Application of VaR approach to the dynamic modeling of government loss is more efficient than Vector Autoregression Model (VAR) approach in terms of explanatory power. Optimal structure of the public debt lies at the efficient frontier reflecting risk-cost trade-off. Interest rate, exchange rate and rollover risks are successfully mitigated by risk management tools. Mitigation of operational risks and contingent liability risks are not affected by risk management tools. Maturity of the debt is affected by use of the interest or currency swaps as hedge instruments. The analysis will contribute both to the academic and economic policy fields. Within the academic field, it will give deeper insight how correlations between key macroeconomic variables, original sin and limited choice of market instruments and limited use of the financial instruments affect the efficient applicability of risk management tools to public debt management. Further, it contributes to the public debt offices of the EMCs, which have recognized the importance of the introduction of more sophisticated tools for quantification of the public debt risk. 5. RESEARCH METHODOLOGY The research design follows the deductive approach, starting with the review of the existing theoretical and empirical work as a basis for the operationalization of the hypotheses. In the second stage of the research, hypotheses are empirically tested; nature of the research hypotheses does not require collecting of primary data, thus for the empirical testing only secondary data provided by the relevant financial institutions and statistical offices are considered. In the theoretical part of the research, two sources of literature will be primary used. First, key academic papers published in renowned journals such as Journal of Political Economy, American Economic Review or Journal of Monetary Economics, on the subject of public debt management are reviewed. However, due to the relatively recent origins of the academic, review of already published academic papers is accompanied with numerous working papers which are still under the consideration of the expert public. Second, as the field of public debt is inevitably connected with economic policy practice, large number of public debt strategies, reports and policy papers issued by countrys debt offices and international organizations like World Bank, International Monetary Fund, Organization for Economic Cooperation and Development and Bank for International Settlements is reviewed to complete theoretical and practical advances in the research field. The empirical part of the project starts with the descriptive analysis of secondary data on public debt and other macroeconomic parameters of EMCs. Relevant database will consists of monthly time series of necessary variables. Primarily source of the data will be International Monetary Fund and World Bank statistical data, accomplished with data of national banks and country statistical offices. The central part of the empirical research will be based on the regression analysis and Value-at-Risk analysis. Regarding the time horizons, analysis is longitu dinal, as it is imposed by the nature of the proposed analytical tools. The dependent variable which is modeled is cost of public debt as a measurement of government risk of loss. Independent variables include all macroeconomic variables grounded as relevant by the existing theory subjected to public debt management, as real GDP, public sector borrowing requirements, inflation, interest rates, country risk and exchange rates. In addition, Monte Carlo models are employed to simulate the dynamic of the debt costs, and back testing analysis is used to assess efficiency of the proposed model. Selected countries for the empirical analysis are Hungary, Poland and Czech which are widely recognized as the European EMCs by the world most prominent financial analytic entities. Focus of the empirical research on the only European countries, although practical in the term of data availability, diminish the power of generalization that is implied by deductive approach. However, the conclusion s of the research will be representative for the other emerging economies from the Central and Eastern Europe, regarding the similarity of transition character of their economies. 6. STRUCTURE OF THE THESIS Beside the introduction and conclusion chapters, Thesis consists of two parts, theoretical and empirical. Problem background, research framework and structure of the thesis are presented in the introduction. Theoretical part is divided in three chapters, each dealing with the critical review of the important findings of the existing literature. First chapter deals with the foundations of public debt management as general framework for the managing of the costs and risks of government finance. Second chapter defines risk management tools and discuss the role and various application of them within the public debt management framework. Third chapter analysis previously mentioned specific issues of public debt related to the EMCs. Empirical part consists of four chapters. First chapter gives cross-country analysis of the EMCs public debt risk management policy practices. Second chapter deals with the development of the hypothesis based on the overall literature review from the first part, supported with the findings for the investigated EMCs countries. Third chapter presents methodology, data and limitations of the research. Fourth chapter presents findings of the analysis in line with their critical discussion and implications. Conclusion part gives the comprehensive summary of the most important findings of the thesis and recommendations for the further research issues.

The Moral Distinction Between Civil And Political Rights

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For example, civil and political rights require infrastructures such as a functioning court system, prisons respecting minimum living conditions for prisoners, legal aid, free and fair elections, and so on.† Civil/Political rights: safety and justice, no discrimination or oppression. Physical and mental integrity. Social/Economic rights: right to work, paid vacation, welfare. Rights of a certain group of people Disagree on values → no universalism doesn’t make sense Strong/weak duties with harm/sacrifice the state typically has todo something in order to protect rights. No police, no property Cranston thinks that the rights in the UDHR on the civil-political list fall on theShow MoreRelatedAre There Any Natural Rights?1143 Words   |  5 PagesPatrick Hart in the text â€Å"Are there Any Natural Rights?† argues, that if there are any moral rights, then there exists at least one natural right, the equal right of all men being free. 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Business Law Trade Clauses Inemployment

Question: Discuss about the Business Law for Trade Clauses Inemployment. Answer: 1. Issue The basic issues that originate from the given factual situations are: Whether there is a valid contract between the father and Richard? Whether Richard has any right in law against his father for weekly allowance? Law The above two issues can only be resolved when the basic elements which govern the formation of a valid contract can be analyzed. In Australia, the law of contract governs the elements which are required for the establishment of a valid contract. The law specifies that when an offer is made by an offeror is accepted along with consideration and the parties are capable and have legal intent to abide by the contract, then, a contract is said to be formulated. Thus, from the above definition, the basic elements which are required for the formation of a valid contract are: (The Law Handbook 2016) Offer An offeror is the person who initiates an offer. The intention of the offeror to do or not to any act when communicated to another person (offeree) with a hope of approval, then, such communication is called an offer. An offer must be made by an offeror and must be communicated to an offeree to be valid. An offer can be oral or written and can be made to one person or to the world at large Carlill v Carbolic Smoke Ball Co (1893). However, an offer is only valid when it is clear and without any ambiguity. An unclear offer has no relevance in law (Payne v Cave (1789). (Clark, 2012) Acceptance When the offeror by complying all the legal principles makes a valid offer to an offeree, then, if such an offeree gives his assent to the same, then, it is called an acceptance Latec FinanceLtdv Knight(1969). A valid acceptance only exists when it is made by an offeree to an offeror. An acceptance without the knowledge of an offer is no acceptance. Also, an acceptance must correspond to an offer in order to be valid and binding. (Gillies, 2004). Once an offer and acceptance is made then it results in the formation of agreement which when coupled with capacity, intention and consideration makes a valid contract. Capacity of the parties when a valid offer and acceptance is made by the parties, then, in order to make a valid contract it is necessary that the promises which are exchanged must be made by the parties who are capable to exchange the promises. The parties are capable when they are mentally stable, not unsound and have attained that majority age, that is, they are eighteen years of age Re Walker(1950). If the parties are not capable as per the law of the land, then, the mutual exchange of promises by such parties are not valid and the contracts made by such parties has no relevance in law and makes the contract voidable. But, if a minor enters into a contract with another party and the basis of the contract is for the necessity of the minor of for the benefit of the minor if for the employment of the minor, then, in such cases, the contract are considered to be valid and cannot be rescinded. Such contracts have legal sanctity in law ((De Francesco v Barnum(1890) Nash v. Inman (1908). (Moles Sangha 1998). Intention to create legal relations The offeror and offeree when makes an offer and acceptance respectively, then, it is a settled law that such exchange of promises are binding upon the parties only when such promises are made with a legal intention, if there is absence of legal intent then there is no contractual relationship between the parties even when all the other contractual elements are present (Ermogenousv Greek Orthodox Community of SA Inc (2002). Normally when a contract is of commercial nature then the parties are assumed to be legally intent whereas in domestic relationship the legal intent is absent Air Great Lakes Pty Ltd v KS Easter (Holdings) Pty Ltd (1989). But, this general theory can be disapproved by providing evidence to establish the same. (McKendrick Liu, 2015). Consideration - when the parties makes an offer and the other parties accepts the same, then, it is very necessary that such promises must be supported by consideration (Coulls v BagotsExecutor Trustee Co Ltd. (1967). A consideration is a value in money or kind which must support the promises to make them enforceable in law. a contract without considerations are not enforceable and are gratuitous in nature. (Gillies, 2004). Thus, all the elements of contract must always be present in any contractor to make it binding. Application The analysis of law is now applied to the facts of the case. It is submitted that the father has asked Richard to keep the yard clean. The father used to hire the Gardner for the same job at $350. However, the same job is now offered to Richard at $ 200. Thus, an offer is made by the father to Richard. Richard was a poor student and in order to earn the money he agreed to the said offer. Thus, a valid acceptance is made by Richard. This exchange of offer and acceptance is supported by a valid consideration of $ 200. Also, both Richard and father are major and are of sound mind, thus, are capable to make a contract. Finally, the relationship of father and Richard are non-commercial, thus, generally there is no contract between the two. But, it is submitted that the father made an offer to Richard because he is getting the same job done at much cheaper rate and thus intent to abide by the same. Also, Richard agreed to the job because he was poor and intent o abide by the job to earn money. Thus, both the parties wish to abide by the contract legally. So there is presence of all the contractual elements to establish a valid contract between the two. Conclusion Thus, there is a valid contract between father and Richard and thus Richard can sue the father to claim his weekly allowance. 2. Issue The basic issue that originates from the given factual situation is Can Joe liable to the clause that is incorporated by Frre Bros in the employment contract? Law The application and relevance of non-compete or restrain clauses made part of the employment contract are analyzed in the given part. Clauses which limit or restrict the rights of the employee to indulge in similar kind business which is undertaken by an employer are called restrain or non-compete clauses Write v Gasweld(1991). These are the clauses which are normally relied upon the employer and are made part of the employment contract. Law has given consent to the application of non-compete clauses in employment contract upon various grounds. Such as: (Doherty, 2016). That the reason for the incorporation of the clause is to restrain the employee and such restrain is considered to be valid only when the restrain is for a particular duration which is of a certain time limit. In Smith v Nomad Modular Building Pty Ltd (2007), the court held that the basic retrain of time limit on the employees if up to one year which may be extended up to three years if there are justified reasons to support the same. However, a limitation beyond such time period is not considered to be valid unless and until there are justified reason to support the same. Likewise, a restrain is only permitted to be imposed upon the employee when it is for a specific geographical area. A restrain that an employee will never work in particular areas is not valid and cannot be imposed upon an employee in law. Whenever an employers incorporating a non-compete clauses in an employment contract then it is necessary that such clauses must protect the good will of the company (Stenhouse Australia v Phillips (1974). The basic reason for the implementation of the non-compete clause is that if the employee is permitted to indulge in the similar kind of business then it will certainly affect the goodwill of the company which is earned by the company with hard work and labor. (Gibson Fraser, 2014) Further, the clauses are considered to be very essential when such clauses protect the legitimate interest of the employer. If the clauses have no relevance to protect the interest of the employer but are only made part of the employment contract in order to harass the employee then such clauses has no relevance in law and must not be made part of the employment contract (Woolworths Limited V Mark Konrad Olson (2014) The restrain clauses are also considered to be valid when such clauses protect the confidential information of the company. It is many a times analyzed that if the employee is permitted to indulge in similar kind of business without any time or place restrain, then, such an employee uses the relevant information which is acquire by such an employee while working for his ex-employee (AGA Assistance Australia Pty Ltd v Tokody (2012). And such information is used by the employee for his own benefit which not only hampers the confidentiality of the company but also affects the goodwill of the company in the market. (Hopgood Ganim 2016) Thus, because of the above laid down reasons, it is very necessary that the incorporation of restrain or non-compete clauses are considered to be valid. However, It is not always that the restrain clauses are considered to be valid. Many a times, if it is found that the incorporation of the clauses has breached the public policy or have hampered the legitimate interest of the employee or is of such a lengthy duration that affects the employee in every regard without justifications from the employer, then, in such situations, the clauses are considered to be invalid in nature Nordenfeldt v Maxim Nordenfeldt Guns and Ammunition Company (1894). (Mayor 2016) If the employer has to rely on the clause then it is very necessary him to prove that that application of clauses is very necessary for his legitimate interest. Otherwise the clause has no relevance in law. The law is now applied to the facts of the case. Application Frre Bros and Joe have entered into an employment clauses according to which Frre Bros is an employer and Joe is appointed by Frre Bros. Frre Bros has employed Joe to his acting services for a period of five long years. The employment contract also contains clauses that if Joe undertakes any acting project with any other company apart from Frre Bros, then, the contract is considered to be violated. However, Joe violated this restrain clause of the employment contract and made a contract with Pretty Picture. It is submitted that the contract with five long year restrain is very lengthy and if Frre Bros wants to rely on the same then it is very necessary for Frre Bros to prove that the clause is required to protect its legitimate interest and confidentially of the company. Otherwise, the clause is not valid and is not imposed upon the parties. Conclusion It is thus concluded, that the restrain clauses made part of the employment contract by Frre Bros is only considered to be valid when the clauses protects the legitimate interest, confidentiality and goodwill of Frre Bros. otherwise, Joe can avoid the clauses as the same is for a very long duration and thus hampers Joes legitimate interest and is against public policy. Reference List Brown M (2016) non-compete clause https://www.mayerbrown.com/files/uploads/Documents%5CGuide%20to%20Restrictive%20Covenants/MB_rest_cov_asia.pdf. [Viewed on 11th September 2016]. Clark, J. (2012). Australian Contract Law. Agreement. (online). Available at: https://www.australiancontractlaw.com/law/formation-agreement.html. [Viewed on 20th September 2016]. Doherty, JC. (2016) Non-compete and restraint oftradeclauses inemploymentcontracts (online). Available at: https://www.fglaw.com.au/non-compete-employment/. [Viewed on 20th September 2016]. Gillies, P. (2004). Business law. Federation Press. Gibson, A Fraser, D. (2014) Business Law 2014. Pearson Higher Education AU. Hopgood Ganim (2016) Non-compete Clause (online). Available at: https://www.hopgoodganim.com.au/page/Publications/Industrial_and_Employment_Law_Alert_Recent_court_case_provides_clues_to_successfully_enforcing_non-compete_restraint_obligations_-_31_Aug_2012/. [Viewed on 20th September 2016]. Moles Sangha (1998) consideration (online). Available at: https://netk.net.au/Contract/04Consideration.asp. [Viewed on 20th September 2016]. McKendrick, E Liu, Q. (2015). Contract Law:Australian Edition. Palgrave Macmillan The law HandBook (2016) Elements of contract (online). Available at: https://www.lawhandbook.org.au/07_01_02_elements_of_a_contract/. [Viewed on 20th September 2016]. Case laws Air Great Lakes Pty Ltd v KS Easter (Holdings) Pty Ltd (1989). AGA Assistance Australia Pty Ltd v Tokody (2012). Carlill v Carbolic Smoke Ball Co (1893). Coulls v BagotsExecutor Trustee Co Ltd. (1967). De Francesco v Barnum(1890). Ermogenousv Greek Orthodox Community of SA Inc (2002). Latec FinanceLtdv Knight(1969). Nash v. Inman (1908). Nordenfeldt v Maxim Nordenfeldt Guns and Ammunition Company (1894). Payne v Cave (1789). Re Walker (1950). Smith v Nomad Modular Building Pty Ltd (2007). Stenhouse Australia v Phillips (1974). Write v Gasweld(1991). Woolworths Limited V Mark Konrad Olson (2014).

Applied Business Ethics

Question: Discuss about the Applied Business Ethics. Answer: Introduction Human beings have for a long time been faced with the plague of making the right decision. In each and every day, the business world lives around making decisions and for most of them, making the right one needs one to be thoughtful and considerations while others have no conscious in thinking through a decision. Hospitality, an industry I would really like to join as a future profession is like any other business that is profit driven. In Singapore, in the efforts to increase the profits in the industry and to increase the revenues, the government was at one time seen to settle on decisions that came with a lot of ethical issues in societies. Ethical issues in the hospitality industry have been experienced mostly in the cruise ships engaging in casinos and gambling where the government of Singapore legitimized the gambling as a business like other businesses. Ethical Dilemma Description in Cruise Ships and Casino Gaming In as much as the cruise ship might be having a beneficial advantage to the country, by generating income to and adding up to the economy in Singapore, it is quite unfortunate that it discharges bilge water, sewerage and other waste to the water a few miles from the coast. Such activities are never regulated and they may be a great danger especially to the fishing industry as the waste and other discharge from the ship may cause a massive death of fish (Lo, 2005). Many stakeholders are naturally concerned that these wastes might cause negative impacts to the environment but then, they might not want to interfere and disturb revenue generating business and a part of the Singapores economy. The profit that is enjoyed from the cruise ships does not mean that the directors and other staff should be less ethical. Clearly, a company can be profitable and at the same time reducing the ethical issues through integrity (Balfour, 2006). In the process of using integrity, ethics would be prevailing and the right choices would be made. In the same cruise ships in Singapore, one of the businesses carrying the order of the day is gambling. In as much as casino gaming may seem to be a business like others, it is surrounded with many ethical issues. People engaging in gambling are prone to addiction to the game, might have tribal issues and others may be forced into organized crimes and suicide. While others may find their ways into gaming casinos for business and fun, others might take the opportunity to organized crimes; others may be tempted to commit suicide after losing a lot of money and property as others get addicted to the game. It thus leaves questions as to why the government could just decide to legalize gaming considering it come along with many ethical issues (Grinols Mustard, 2006). Statement of the Problem The aspect of being right or wrong appears to differ from culture to culture although the defending fact is about a persons behavior. An example is the principle of utilitarianism where it is about the good deeds for many people. Singapore is well recognized as one of the governments that are least corrupts different from many countries where corruption has turned to be a plague in the government (Walker Jackson, 2007). Many corporate agencies are full of corrupt administrators and governments are full of graft and bribes and as such people might not question a government running a country being ethical. Singapore, after its government announced that they will be legalizing gambling and allowing the construction of mega resorts with gaming facilities, it appeared that the country was thrown in a debating field about the implications that could come along with the decision. Questions are thus rising on how ethical or unethical the governments are becoming and the implications of the decisions made by these governments to allow building of casinos and the operations of the cruise ship (Lim, 2005). Justification of the Decision The government of Singapore came out to defend its decision to legitimize the integrated resorts claiming that the gambling and all the games in the casinos can be considered a form of entertainment and a worthy investment. Also, they based their justification on economic situations where they had to import some of the raw materials used in building the casinos and as a result, enhancing business relationships with other countries. Another major reason the government gave for legalizing the gambling was that the revenue of the country was falling and it was because many of their citizens were travelling to other states to gamble. One may look at it that the government of Singapore may have wanted to tap into its revenue to prevent the money from being spent out of the country (Banks, 2002). Tourism was also another reason that saw the government allow the construction of the casinos and the operation of the cruise ship. The decision by the country was seen to be aiming at increasing the demands for and the motivation of the tourists to the island state. The government also based its decision of the fact that Singapore appears to the third least corrupt states making their probability to attract many tourists around the world high. It was also anticipated that the casino would be a great opening of many employment opportunities (Sim, 2010). Casino Crime One of the ethical issues surrounding the casino and gambling business is the organized crimes taking place in these places. Crime is one of the factors that the anti-casino movements were seen to argue that will increase as a result of the legalization of the business. In other countries, there have been witnessed cases of assassinations around the casinos where the people gambling in these casinos seem not to be satisfied with the fact that they lose their money or property and thus, organize an assassination of their opponents (Garret, 2004). Proposed Solution to the Ethical Issues around Casino Gaming Before the government had legalized the casinos and gambling in Singapore, there were many forces and arguments for and against the case. Different people had different views concerning casino gaming where a group believed in the ethical part of casinos while others defended their opposition on grounds of the unethical parts causing an ethical dilemma in the case (Toneatto, Ferguson Brennan, 2003). From the beginning, the policy makers in the country had acknowledged the possible negative externalities and gave an assurance that these would be controlled through different measures that were put in place. The government passed the casino control act that issued the license to build the two integrated resorts with casinos in them. There are also statutory boards that were developed to limit the social impacts of the casino gambling and the state has been very strict in the act by progressively tightening the rules over time. There are exclusion measures and limits of visits to the cas ino. The exclusion measures are seen to bar people from entering the casino while the limits of visits puts barriers on the number of visits a person can visit the casino, and that being imposed on registered members (Grinols, 2004). Another measure is on the people operating the casino where they are not allowed to accept credit cards from the local residents and they are as well not permitted to extend credit to the local visitors. In any case the operators appear to breach the regulations; they are to face some disciplinary actions including the imposition of fines, suspension or even termination of their licenses (Werker, 2007). Ever since the casinos in Singapore started working, the regulations governing them have been tightened progressively. The issue of addiction was to be sorted through the enrollment of education programs to through family service centers and community development councils. These bodies were to give gambling addiction information to the public and also trained the staff on the compulsive gambling and how to provide basic counseling to the gamblers (Anderson, 2005). Ethical Theories However, the government should have applied the consequentialism theory with the approach of ethics. The consequential approach emphasizes that an ethical morality is a contingent on the action outcome or its consequence. Therefore, any right ethical actions should produce a positive result (Walker Jackson, 2007). The positive result should outweigh the negative outcome. The casino ACT mainly focused on the local residence hence benefiting them more than the residents. In conjunction with the shareholder's theory, the responsibility of the casino was to raise profits to the shareholders and benefit the residents positively. According to Banks (2002). Understanding the theories of justice comes from the business ethics. However, it has a political aspect due to the control of businesses by the government involvement. The government of Singapore defends its decision to legitimize the integrated resorts claiming that the gambling and all the games in the casinos can also be considered a form of entertainment. The claim is based on the economic conditions and the claim that purchasing of raw materials from other countries will support their relationships. The theory of justice mainly focuses on the creation of liberties equalization hence creating strong friendships and happiness between the other countries with a mutual benefit. Conclusion In each and every day, the business world lives around making decisions and for most of them, making the right one needs one to be thoughtful and considerations while others have no conscious in thinking through a decision. In as much as the cruise ship might be having a beneficial advantage to the country, by generating income to and adding up to the economy in Singapore, it is quite unfortunate that it discharges bilge water, sewerage and other waste to the water a few miles from the coast. Many corporate agencies are full of corrupt administrators and governments are full of graft and bribes and as such people might not question a government running a country being ethical. Singapore, after its government announced that they will be legalizing gambling and allowing the construction of mega resorts with gaming facilities, it appeared that the country was thrown in a debating field about the implications that could come along with the decision. The government passed the casino contr ol act that issued the license to build the two integrated resorts with casinos in them. There are also statutory boards that were developed to limit the social impacts of the casino gambling and the state has been very strict in the act by progressively tightening the rules over time. References Anderson, J. E., (2005). Casino taxation in the United States. National Tax Journal, 58(2), 303 324. Retrieved from https://ntj.tax.org/ Balfour, F. (2006). Macau gaming: Shady past, rosy future. BusinessWeek Online, pp. 6. Retrieved from Academic Search Premier database. Banks, G. (2002). The Productivity Commissions gambling inquiry: 3 years on. Presentation to the 12th Annual Conference of the National Association for Gambling Studies, Melbourne, Productivity Commission, Canberra. Retrieved from https://www.pc.gov.au/speeches/?a=7804 Garret, T.A. (2004). Casino gaming and employment trends. Federal Reserve Bank of St. Louis Review, 86(1), pp. 9-22. Retrieved from https://research.stlouisfed.org/publications/review/04/01/garrett.pdf Grinols, E.L. (2004). Gambling in America; Costs and benefits. The Press Syndicate of the University of Cambridge, The Pitt Building, Trumpington Street, Cambridge, United Kingdom. Grinols, E.L., Mustard, D.B. (2006). Casinos, crime, and community costs. The Review of Economics and Statistics. 88(1), 28-45. Retrieved from https://www.terry.uga.edu/~mustard/casinos.pdf Lim, H. K. (2005). Comment by Minster for Trade Industry Lim Hng Kiang.Ministerial Speeches Comments. Retrieved from Ministry of Trade and IndustrySingapore website: https://app.mti.gov.sg/default.asp?id=606 Lo, S. H. (2005). Casino politics, organized crime and the post-colonial state in Macau. Journal of Contemporary China, 14(43), 207-224. doi:10.1080/10670560500065454. Sim, A. (2010). Singapore already reaping benefits from IRs: Economist. Retrieved from https://www.asiaone.com/Business/News/Story/A1Story20100426-212421.html Toneatto, T., Ferguson, D., Brennan, J. (2003). Effect of a new casino on problem gambling in treatment-seeking substance abusers. Canadian Journal of Psychiatry, 48(1), 40.Retrieved from Academic Search Premier database. Walker, D., Jackson, J. (2007). Do casinos cause economic growth? American Journal of Economics Sociology, 66(3), 593-607. doi:10.1111/j.1536-7150.2007.00528.x. Werker, E. (2007). Company town: Fixing corrupt governments. Harvard Business School, Working Knowledge, Retrieved from https://hbswk.hbs.edu/item/5730.html

Social Stratification and Politics Essay Example

Social Stratification and Politics Essay Name: Instructor: Course: Date: We will write a custom essay sample on Social Stratification and Politics specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Social Stratification and Politics specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Social Stratification and Politics specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Social Stratification and Politics Introduction Social stratification is a concept that encompasses classifying members of the society into various groups based on common socio-economic status (Owen 3). This sociological concept involves relational sets of inequalities that have political, social, ideological and economical origins. Social stratification is a system that divides society into various hierarchies. This system is based on the principles that view social stratification as a generational inheritance, societal trait and societal belief. Social stratification is also considered not only a universal principle but also a variable principle. There are various system s used in social stratification. These systems are caste, class, slavery and estate systems. The estate system was predominant during the medieval time and consisted of the clergy, serfs and nobility. The slavery system was based on the ownership of individual s by others. The caste system encompassed ascribed status. This was popular in India. The hierarchies were scholars and priests, warriors and nobility, skilled artisans and merchants and finally there were the unskilled labor. The class system is a stratification based on occupational and economic roles. Different theories define different hierarchies in the class system. The concept of social stratification is synonymous to inequality as it segregates members of the society allowing others an easy access to resources. The implication of this is that societal stratification affects the political structures of society. Politics refers to the activities that surround the authoritative distribution of an entity’s resource (Tansey 4). National politics refers to exercising authority over the distribution of a country’s resources. Politics in its self is a study that involves an analysis of the factors that affects an individual’s ability to possess society’s resources and to have control over the ability of others to gain the same resources. It is a power concept. Social stratification is the basis for defining relational power. This is because the actions of man are dictated by their economic and social positions in society. Therefore, social stratification remains to be an important aspect that influences distribution of political power among members of a society. Theories Relating Politics to Social Stratification Theorists who talk about the relationship between social stratification and power are Karl Marx and Max Weber. Both Karl Marx and Max Weber approach the concept of social stratification using the class system. Karl Marx defines class based on the ownership of means of production. The stratification gives rise to class struggle. The basis of the class struggle is the political inequality that exists in society. Weber on the other hand, talks about class from the perspective of economic, political and social status. Karl Marx on Social Stratification Introduction Marx analyses the history of class struggle in his theory of social stratification (Owen 18). In his analysis, he looked at those who own the means of production. He also talks about those who participate in the production process and the relationship between labor and work. Karl Marx also looks at the members of society who not only produce but also control the surplus produce. Control of the society’s resources is what gives rise to political segregation and struggle. The ownership of property allowed particular members of the society to control the distribution of these resources. According to Marx’s theory, political power is allocated based on basis of one’s ranking on the social hierarchy. Theory Karl Marx’s analysis is of a capitalist society and the main classes are the proletariat and bourgeoisie. Other subclasses like the peasants, proletariats, property owners and petty bourgeoisie but they do not have a major impact on the theory. The bourgeoisies are the capitalist who own the means of production. The means of production are land and labor. They possess not only capital, but also power to exploit purchased labor. The surplus value obtained from the produce of the purchased labor is used by the bourgeoisies to expand their capital. The class of bourgeoisie is defined by the ownership of means of production and the use of this capital to exploit members of society and to expand their scope of possession. According to Marx, wealth is not sufficient to get one to the bourgeoisie class. This wealth has to be used to sustain status quo through the continuous manipulation of labor and the expansion of their capital. This has to be a continuous process that has to be sustained by the use of surplus value. In the contemporary society, the bourgeoisies represent the members who possess political power. This power is gained through their social status. Marx brings an economic basis for the stratification of the society. This implies that the political structures are controlled and maintained by the wealthy. They use their wealth to manipulate the structures of society like the judicial system, the electoral process and even the legislative process. This control is used to maintain the status quo and to ensure that the cycle of wealth accumulation is continuous. An implication made by Karl Marx is that members of various states have been socialized to believe that social status is a basis for distribution of political power. Marx takes a deeper analysis of the process of accumulation of wealth among the bourgeoisie. He talks about the historical fight against the feudal system that existed in medieval Europe. The proletariat comprised of mostly merchants, industrialists, craft men, traders and manufactures. They fought against the feudal authorities to gain the liberty to expand their businesses through marketing of their products. This struggle marked the formation of the class. Old feudal and hierarchical systems were undermined and while new structures and orders were put into place. The economical prowess among the bourgeoisies was later sustained through the purchase and manipulation of labor. This was the case in Britain during the nineteenth century when the bourgeoisie maintained ideological and political predominance. The British hired labor that created surplus value maintaining the wealth of their wealth. According to Karl Marx, the other class is that of the proletariat. It comprises the members of the society who own labor power. They dearth of property forces them to depend on the bourgeoisie for survival. This creates an exploitative relationship where the proletariat is hired by a capitalist bourgeoisie. There is a constant recreation and reproduction of this exploitative relationship. The proletariat works for extra hours with low wages. This is done to ensure that the bourgeoisie gets profits. The results are an increase in poverty and wealth for the proletariat and the bourgeoisie respectively. The proletariat’s output during the extra hour is sold. The process prevents the proletariat from gaining wealth and subsequently maintains society’s status quo (Owen 19). According to Marx, he predicted that various political events would occur in the capitalist society. In order to maintain their social status, the bourgeoisie would enact laws that are more repressive. With the increase of oppression, class-consciousness would increase among the proletariats and a subsequent labor movement would be formed. The end of the capitalist era would be marked by a revolution instigated by the movement among the proletariats. This would usher in a communist society. Conclusion A contradictory and antagonistic relationship exists between the proletariat and bourgeoisie. This is because the former is struggling to increase their wages and alleviate their social status while the latter is doing the opposite. The bourgeoisie manipulate labor and work to ensure that the proletariat remains without property. This represents the struggle that is seen in the contemporary society. The struggle is that for power in society. This is because power is the exercise of authority over the various structures in society. This shows that Karl Marx’s theory on social class shows the relationship between social stratification and politics. Max Weber on the Theory of Social Class Introduction Max Weber discusses the concept of social stratification with a view on social classes (Owen 20). He argues that social class is the most influential cause of conflict in the society. He stipulates that the different dimensions of social structure are class, status and honor. He establishes a relationship between the ideological and material aspects of society through status and class. He attributes social action to the both status and class. He argues that the concept of class comprises power, prestige and wealth. Wealth is a representation of the economic structures of the society while prestige is symbolic for the social aspect and power is the representation of political structures of the society. Theory Max Weber describes power as the ability to exercise authority over various resources in society (Owen 20). He argues that it is the ability of individuals to see the realization of their desire even against the will of other members of the society. Societal power encompasses political, economic and social powers. Weber also analyses the concept of domination, which he says is the possession of authority in a particular sphere. Domination can occur because of tradition, rational-legal reasons and charisma. Class, according to Weber, is a component of an individual’s life chances. The life chance results to wealth and economic interests. This wealth is represented in the aspects of market commodity and labor. Possession of property and advantage in the market place increase one’s living standards. Weber argues that those who own property are able to control the methods of wealth creation. This is because of their control over the market. Among the wealth owners, there exists a subdivision based on the means used to create wealth. Among those who do not own property, there exists further stratification based on the services that they provide to the market. There are skilled, unskilled and semi-skilled workers. The grouping is based on the value of one’s labor and the different values produce different standards of living. In his theory, Weber argues societal action will only occur when there is a consciousness on the influence of economic power and the distribution of property on stratification. While discussing the concept of status, Weber defines it as the probability of an individual’s life chances being influenced by prestige and social honor. Prestige is influenced by wealth and social restrictions. These restrictions are like residence and the patterns that are followed during marriage. High status groups enjoy distinct lifestyles and definite patterns of consumption and association. On the other hand, those occupying the low status in the society, have their sense of worth pegged on futuristic hope. Both class and status have an influence on the political aspect of society. Status and class interests define political power. This implies that the interests of a particular influential class are well reflected on the political structures. According to Weber, parties are the definite structures of political power. The main aim of parties is to obtain dominance in the various spheres of influence. Parties are organized based on the interests of various social classes. The influence that the different classes have in the market is well translated to the political sphere. Charismatic dominance occurs among the classes that are exposed to concepts of leadership and governance. This might me among the elite of the society who hail from a family background of leaders. Conclusion Max Weber’s argument is that class and status influences the dominance of an individual in the various spheres of society. This dominance affects the activities of parties in the political avenue. Those in the higher classes at times experience dominance based on the legitimacy that is pegged on traditional authority. Members of prestigious classes dominate over those of the lower classes based on the belief that they have better life chances in the economic, political and social spheres of life. Blackman’s Struggle for Social Equity American treatises published from as early as 1854 spoke of the racial segregation that existed. Conservatives such as Henry Hughes and George Fitzhugh justified the slave system in America (American Sociological Association, 265). Hughes argues that the essentials of slavery should remain unchanged because the practice is civilly and morally right. Fitzhugh expressed his concern in relation to the suggested liberty in America. This liberty was in regards to accommodating the African America community. Fitzhugh felt that this liberty had failed. He opposed democracy and justified the slavery among the black American community. He opposed a free society where every man acted for himself and he attributed the growth of poverty and crime in Europe to concepts like freedom, liberty and equality. He argued that morality could only be maintained in a society that upheld slavery along side Christianity. Fitzhugh and Hughes were proponents of the philosophical justification of slavery. The s ocial atmosphere among the African American community was echoed in other parts of the globe like in South Africa. The fight against apartheid was the black man’s plea for equity in all aspects of the society. Slavery was the basis for the African American struggle for equity. Slavery among the African community is vividly remembered because of its brutality and inhumanity. Although white slaves were used earlier than 1942 in the Mayan Temple, Egyptian pyramids and the Mongolian fighting machine, a lasting legacy of oppression was left by the enslavement of Africans. African slaves were not treated as humans but commodities. They were abused and sold for the main reason of accumulating profits. The abolition of slavery in various countries did not mark the end of the oppression. This is because current economic, social and political structures remind the society of the enslavement of the African community (Vorenberg 154). The end of the American civil war in 1865 was to mark the end of slavery in America. Slaves were freed after Abraham Lincoln’s Emancipation Proclamation. However, the white American still oppressed the African Americans. Attempts towards granting the African community equality were encouraged by amendments in America’s constitution. These were the Thirteenth to Fifteenth Amendments. The Thirteenth Amendment of 1965 illegalized slavery. This particular amendment passed Abraham Lincoln’s Emancipation Proclamation into law. The congress was granted the liberty to enact laws that abolished slavery. The implication of this law was that slave owners were to incur greater costs in order to have work done. Other slave owners wanted compensation for seceding slaves. In the northern states, the citizens feared that the released slaves would take their jobs. The African Americans were denied good jobs and they were restrained from accessing proper education (Vorenberg 160). After the Thirteenth Amendment, the Andrew Johnson succeeded Abraham Johnson as the American president. He enacted retrogressive laws that segregated the African American community. He stipulated that members of the white race were the only ones who could participate in the legislation of the Southern Constitutions. However, in 1866, the congress tabled a bill that acknowledged African Americans as American citizens. Johnson’s efforts to stop the bill were futile when it was finally passed by the congress. The bill acknowledged the incoherent rights of African Americans, regardless of their race. The bill stipulated that the federal government was to intervene in the event that a state would not comply with this law. The Fourteenth Amendment was enacted in 1868. This amendment stipulated that the freed slaves had to be given their rights. This amendment safeguarded the rights of the American citizens. Such rights were like those of a right to education, the ability to sue othe rs and the right to make political decisions and vote. The citizens in the south still undermined the African Americans and the white population still had more rights. The years 1867 and 1868 saw the congress pass the Reconstruction Act. This act stipulated that the African American community were granted the liberty to participate in political decisions that were involved in creating the Southern State Constitutions. The act distributed political power among the black and white community. The government gave all races in America the liberty to make political decisions. In the South, civil education was carried out among the Africa Americans. However, by 1867 many African American men could not vote because of the threat they received from the white citizens. Women were allowed to participate in other political activities apart from voting. In 1870, the Fifteenth Amendment was introduced in the American Constitution. This was an emphasis on the African American’s right to vote. The law stipulated that the government did not have the ability to refrain any citizen from voting regardless of their color or background as slaves. Black men were given the right to vote. The departure of the Union Soldiers who protected the rights of the black prompted the enactment of laws that made it difficult for black men to vote. The laws were referred to as Black codes. They were oppressive to the black population as some of them demanded that they sign labor contracts to work for full years. Other codes required the unemployed African Americans to be incarcerated and their children be taken up to work as slaves. The employers of the black community were also allowed to whip their workers. The codes required the African Americans to take and pass voting tests before they were allowed to vote. The white population easily passed th ese tests because unlike the black community, they knew how to read and were well educated. The African Americans were threatened by the Ku Klux Klan, a white men’s group that oppressed the black community. Apart from this, they also attacked members of the white community who accommodated the blacks. They carried out cruel punishments to these individuals. Such punishments were like hanging them, torching their homes and beating them. Despite of the enactment of these laws, the rights of the African American community were infringed. They were treated as animals and there was great inequality in the society (Vorenberg 172). Obama and the Politics of Race The year 2008 will remain recorded in American history. This is because, for the first time, a black president had been elected to lead America. Many had never expected the day to arrive because of the racial prejudices that are embedded in the American society. President Obama’s rise to power was met by large opposition that was driven by racial perspectives. Such racial aspects are the evidence of contemporary forms of slavery and discrimination among the African American society. During his 2008 political campaign, president Obama faced opposition from citizens who believed that a black man could not lead the country (Teasley Ikard 10). Racial prejudices prevented citizens from voting the America’s current president. The president’s healthcare reforms were also rejected by some based on racial discrimination. According to a study, more citizens would support a bill by the former president, Bill Clinton. Implicit racial prejudices affect the voting patterns in America. The simple identification of Obama as a ‘black’ candidate during the 2008 campaigns was a sign of social inequalities. This awakens the era of slavery in America. The roots of president Obama trace him to a black father and a white mother; this implies that he is biracial. He is as black as he is white. However, the categorical rejection of him being white due to mixing of the black and white race shows racism in America. Conclusion Politics and social stratification are correlated concepts. This is because the former deals with power struggle in the society while the latter is what determines who is allocated power in this struggle. Power struggle can be ascertained through an analysis of social stratification. This is because man’s actions are influenced by his economic and social position. Interest groups and political organizations are the avenues where interests of similar social groups are promoted. Various philosophers discuss the concept of social stratification in relation to power struggle. Politics becomes a major area of focus in these philosophical studies because it is believed to be teleological in nature. Man is in a constant struggle for power and his social position can act as advantage when it comes to gaining and sustaining this power. Therefore, social stratification will always be viewed in light of its effect on politics. Work Cited American Sociological Review. Washington, D.C: American Sociological Association, 1936. Internet resource. Owen, Carol. Social Stratification. London: Routledge K. Paul, 1968. Print. Tansey, Stephen D. Politics, the Basics. London: Routledge, 2002. Internet resource. Teasley, Martell, and David Ikard. â€Å"Barack Obama and the Politics of Race.† Journal of Black Studies. 40.3 (2010): 411 – 425. Print. Vorenberg, Michael. Final Freedom: The Civil War, the Abolition of Slavery, and the Thirteenth Amendment. Cambridge: Cambridge University Press, 2001. Print.

Kelloggs A Michigan Traded Company Essays - Kelloggs, Free Essays

Kelloggs A Michigan Traded Company Essays - Kelloggs, Free Essays Kelloggs A Michigan Traded Company Financial Statement Analysis Executive Summary Objective: Our goal in composing a financial statement is to construct the most comprehensive, thorough document possible, in order to attract investors and to confirm that we have taken the time to explore as many potential issues for your business as may arise. Summary of findings: Our level of cereal marketing investment early in 1998 was not sufficient in the face of extremely competitive market conditions. This situation hurt our volume performance for much of the year and, combined with other issues in markets around the world, led to a decline in both sales and earnings. Nonetheless, we continue to have the utmost confidence in the future of our grain-based businesses, and we are fully committed to return to both top-line and bottom-line growth. Appendix # 1- Market Research Description of firm and its management: Kellogg's products are manufactured in 20 countries on 6 Continents and distributed in more than 160 countries. Mr. Langbo has been employed by the Kellogg's Company since 1956. He was named President and Chief Operating Officer in 1990 and became Chairman of the Board and Chief Executive Officer in 1992. In June of 1998, Mr. Carlos M. Gutierrez was named President and Chief Operating Officer. The competitive environment: The Company has experienced intense competition for sales of all of its principal products in its major markets, both domestically and internationally. The Company's products compete with advertised and branded products of a similar nature as well as unadvertised and private label products, which are typically distributed at lower prices, and generally with other food products with different characteristics. Principal methods and factors for competition include new product introductions, product quality, composition, and nutritional value, price, advertising and promotion. Economic climate and outlook: Although our 1998 business results were below our performance expectation, it was a year in which we put in place key elements of a stronger foundation for future growth. This included investments in new product development and a complete overhaul of our corporate headquarters and North American organizational structure. Should suitable investment opportunities of working capital needs arise that would require additional financing; management believes that the Company's strong credit rating, balance sheet and earnings history provide a base for obtaining additional financial

Critical Analysis of the Trends in Vehicle Miles Traveled (VMT) in the Term Paper

Critical Analysis of the Trends in Vehicle Miles Traveled (VMT) in the United States - Term Paper Example The context factors act as Vehicle Mile Travelled (VTM) growth drivers. They include legal/political climate, family structure, social/cultural conditions and technological, economical and institutional structure of the American society. The discussion provided for the impact of the outlined factors is one-sided. Most of factors such as decentralization of companies can have either effect. Travel requirements decreases as a person ages due to the decrease in the activity level and decrease in work related travels. Contrary to the earlier arguments, the aging factor does not increase or reduce the VMT. This is because the decreased levels caused by the aging population are countered by the increasing travel levels caused by the maturing young adults. However, the improved health, wealth and higher licensing rates for the elder women have curtailed the reduction in the rates of mobility for the older generation. The argument on the aging factor overlooked the impact of the economic gro wth on the VMT. This reduces the rate of VMT. Changes in the nature of work will reduce VMT because most of the employment agencies and individuals are applying the use of computer technology to enhance production. Most of the workers can work from home and avoid travelling to their work places. Most institutions of higher learning are also leaning towards introducing online lessons. This will reduce the travel requirements for most students. Decentralization of companies to rural areas can also contribute into the reduction in the VMT because companies may be located near the workforce thus, negating the travel necessity. Finished goods will be brought near retailers and consumers negating the necessity of travelling over long distance to acquire them. The impact of the aging population is reasonable because the travelling tendency of a person is dependent on the activity level. The travel frequency increases as a person matures to middle age. Children may not directly produce VMT but they increase the travel demands for their parents. The middle aged adults would directly increase the VMT as they are in the peak levels of the work related travel. It is notable that the prevalence of dispersed suburban environments and more working parents have made many teenagers rely on auto-travel to and from school. The rise in the fuel prices will generally lead to the reduction in the VMT. However, changes will be insignificant because most people are forced to drive to and from work regardless of the oil prices. Stabilization of workforce participation rates may have either impacts i.e. it can reduce or increase VMT. The increase of women workforce may lead to the increase in the need for travel. However, the rate may still reduce because the involvement of women does not signify an addition in the work force. They just fill the vacancies that would have been filled by anyone, meaning that the number of the workforce is preserved as well as their travel needs. The impa ct of most of the outlined factors is dependent on the changes in other factors. For instance, changes in the increase in the cost of driving may increase VMT in case of the future growth in the economy and income levels (Ewing 2007). Changes in manufacturing and distribution and trends in the cost of real property are the two opposing factors that can lead to increase in VMT. The decentralization of industries due to the enhancement of new

Management of change Coursework Example | Topics and Well Written Essays - 2000 words

Management of change - Coursework Example The success of this change, thus, can be measured ultimately by the difference in the work performed by the individual employees multiplied by the specific number of employees affected by the change. Without the individual perspective, the change management amounts to the activities performed without the goals or the outcomes being achieved (Reh 2015). The main overarching reason for imposing change management is to accelerate the rate at which individuals move successfully through the entire process of change so that the anticipated benefits are attained faster. Apart from this, there are other benefits coupled with change management. These include allowing users to feel supported and valued by the organization making an investment in them and improving the performances and outcomes of the organizations. Furthermore it generates a higher level of teamwork, involvement, openness and trust among the workforce as well as building a change capacity and capability within the organization leading to the improved ability to respond to new situations quickly. Implementing a change in the organizational culture and employing new processes can be considered as a challenging task. This is mainly because this process requires the transformation of how the people not only interact but also how they work. The organizations usually design certain activities that tend to minimize the resistance demonstrated by the users to the change in the program. There are numerous components of the change management. These include, Communication management, organizational change readiness, change adoption and change impact review. Considering the manner in which change management occurs, it cannot be denied that the change is tough. This is mainly because the people in the organization is to implement the approved plan, get each task performed on the critical path and side by side monitor the progress as well as

The killer inside me by Jim Thompson and Ceremony by leslie marmon Essay

The killer inside me by Jim Thompson and Ceremony by leslie marmon silko - Essay Example They’ll listen to reason.† Persons in authority need to think what they are doing to help the people? For what they will be remembered for! Are they making a difference by making others live better, richer, and happier? Lou Ford must be thinking on similar lines. He must have done his bit to reform a boy by tendering him proper counseling and yet he accepts the compliments with utter humility. When the boy’s father tells him, â€Å"And always he talks about you—what a good man is Deputy Lou Ford,† he replies, â€Å"I didn’t do anything,† I said. â€Å"Just talked to him. Showed him a little interest. Anyone else could have done as much.†(p.4)Normally the suffering (or guilt) that one undergoes leaves an impact on the disposition of the man and his dealing with the people with whom he interacts. Though the people considered Lou a bit slow, it was on account of his sickness when he was younger and many people did not know about it. Lou is a sociopath and he is aware of it. Therefore his conversations are a bit philosophical. He is desperately trying to hide his â€Å"sickness† that he carries since his childhood, now threatening to resurface. So, the above conversations need to be understood in the context that Lou is a psychopath, and he is trying to wear the mask of simplicity on his real face.

Board Busyness: Target, Deviation, and Firm Performance

Board Busyness: Target, Deviation, and Firm Performance Abstract I investigate how firms demand for board services, agency issues, and labor market frictions are associated with board busyness, and reexamine the relation between board busyness and firm performance. My theoretical model predicts the existence of heterogeneous target levels of board busyness, which increase with firms demand for board advisory services and decrease with demand for monitoring services. However, frictions arising from agency issues and director labor market could prevent firms from reaching these target levels. My empirical results suggest that the variation in board busyness explained by firms demand for board services is positively associated with firm performance while the variation predicted by agency issues and labor market frictions is negatively related to firm performance. I also find that firm performance is positively associated with the busyness of audit committee, and negatively with that of nominating committee. Collectively, my results do not support the call for setting one size fit all limits of multiple directorships for all firms. Introduction The composition and effectiveness of the board of directors have been the focus of corporate governance literature for decades. While prior studies primarily focus on monitoring function and board independence, a growing literature investigates the advisory function and other board composition dimensions, such as board busyness, size, and diversity. Due to the increased time commitment needed for directors of public companies in recent years, the overboard concern has gained more attention increasingly. Activists and proxy advisors call for limits on multiple directorships with the belief that overboarded directors can harm firm performance. Firms have been increasingly adopting restrictive policies of multiple directorships. A growing literature has emerged to investigate multiple directorships as well. However, theoretical predictions and empirical findings are still ambiguous as to the impact of multiple directorships on firm performance. Multiple directorships are endogenously determined in the director labor market, in which directors work as the suppliers of board services while the firms play as the consumers (demanders). The director labor market plays an essential role in corporate governance by providing managerial talents with reputational incentives through board seats. It is established in the literature how the supplier side works. Specifically, the labor market recognizes the ability difference of managerial talents through various firm performance metrics and provides different numbers of board seats accordingly. However, our understanding of the consumer (demander) side is relatively limited. The previous literature assumes that firms have homogenous demand. Therefore, it is not clear how firms different preferences for director services and other characteristics play a role when firms provide director positions to the market. My study aims to fill this gap. My primary research question asks how firms preference for advisory services and monitoring services, agency issues, and labor market frictions are associated with the multiple directorships on the firm level. The answer to this question is fundamental to appreciate the relation between multiple directorships and firm performance. I posit that different firms have different target levels of board busyness, which maximize the value added by their boards. However, agency issues and labor market frictions could lead firms to deviate from the target levels. Therefore, the association between the observed levels of board busyness and firm performance depends on the composition of different components of board busyness. To examine this argument, I provide a model in which a firm considers its particular preference for advising services and monitoring services and trades off the different effects of multiple directors on advising quality and monitoring quality in determining the target level of multiple directorships held by its board members. The model shows that there exist heterogeneous and time-varying target levels of multiple directorships, which are positively related to the firms advisory need and negatively with its monitoring need. To empirically test the model, I decompose the level of firms multiple directorships into demand related component, friction related component, and unexplained residual component by regressing multiple directorships on a list of factors driving firms demand for board advisory services, demand for monitoring services, agency issues and labor market frictions. Then I examine the relation between these components and various performance metrics. I find consistent evidence of a positive association between firm performance and the demand related component, and a negative association with the friction related component. My committee level analysis shows that firm performance is positively associated with the multiple directorships of the audit committee, and negatively with the multiple directorships of the nominating committee. Given that audit committees are heavily scrutinized during my sample period, and nominating committees are in charge of nominating directors, this finding could b e related with agency issues and director labor market frictions, which I will investigate further. Hersey Blanchard: Situational Leadership Theory Hersey Blanchard: Situational Leadership Theory Hersey and Blanchard characterized leadership style in terms of the amount of Task Behavior and Relationship Behavior that the leader provides to their followers. They categorized all leadership styles into four behvior types: Telling / Directing is characterized by one-way communication in which the leader defines the roles of the individual or group and provides the what, how, when, and where to do the task Selling / Coaching while the leader is still providing the direction, he or she is now using two-way communication and providing the socioemotional support that will allow the individual or group being influenced to buy into the process. Participating / Supporting this is now shared decision making about aspects of how the task is accomplished and the leader is providing less task behaviors while maintaining high relationship behavior. Delegating / Observing the leaders is still involved in decisions; however, the process and responsibility has been passed to the individual or group. The leader stays involved to monitor progress. Golemans Six Emotional Leadership Styles Daniel Goleman, Richard Boyatzis and Annie McKee, in Primal Leadership, describe six styles of leading that have different effects on the emotions of the target followers. These are styles, not types. Any leader can use any style, and a good mix that is customised to the situation is generally the most effective approach. The Visionary Leader The Visionary Leader moves people towards a shared vision, telling them where to go but not how to get there thus motivating them to struggle forwards. They openly share information, hence giving knowledge power to others. They can fail when trying to motivate more experienced experts or peers. This style is best when a new direction is needed. Overall, it has a very strong impact on the climate. The Coaching Leader The Coaching Leader connects wants to organizational goals, holding long conversations that reach beyond the workplace, helping people find strengths and weaknesses and tying these to career aspirations and actions. They are good at delegating challenging assignments, demonstrating faith that demands justification and which leads to high levels of loyalty. It is best used when individuals need to build long-term capabilities. It has a highly positive impact on the climate. The Affiliative Leader The Affiliative Leader creates people connections and thus harmony within the organization. It is a very collaborative style which focuses on emotional needs over work needs. When done badly, it avoids emotionally distressing situations such as negative feedback. Done well, it is often used alongside visionary leadership. It is best used for healing rifts and getting through stressful situations. It has a positive impact on climate. The Democratic Leader The Democratic Leader acts to value inputs and commitment via participation, listening to both the bad and the good news. When done badly, it looks like lots of listening but very little effective action. It is best used to gain buy-in or when simple inputs are needed (when uncertain). It has a positive impact on climate. The Pace-setting Leader The Pace-setting Leader builds challenge and exciting goals for people, expecting excellence and often exemplifying it themselves. They identify poor performers and demand more of them. If necessary, they will roll up their sleeves and rescue the situation themselves. They tend to be low on guidance, expecting people to know what to do. They get short term results but over the long term this style can lead to exhaustion and decline. Done badly, it lacks Emotional Intelligence, especially self-management. A classic problem happens when the star techie gets promoted. It is best used for results from a motivated and competent team. It often has a very negative effect on climate (because it is often poorly done). The Commanding Leader The Commanding Leader soothes fears and gives clear directions by his or her powerful stance, commanding and expecting full compliance (agreement is not needed). They need emotional self-control for success and can seem cold and distant. This approach is best in times of crisis when organization needs unquestioned rapid action and with problem employees who do not respond to other methods. The present autocratic or telling leadership style happens to be the most ineffective one unless a militay base is in action. Follower of this style generally practices low competence, low commitment / unable and unwilling or insecure. Leaders are high task focused and low relationship focused. When the follower cannot do the job and is unwilling or afraid to try, then the leader takes a highly directive role, telling them what to do but without a great deal of concern for the relationship. The leader may also provide a working structure, both for the job and in terms of how the person is controlled. If the leader focused more on the relationship, the follower may become confused about what must be done and what is optional. The leader thus maintains a clear do this position to ensure all required actions are clear. Of these, no single style is considered optimal for all leaders to use all the time. Effective leaders need to be flexible, and must adapt themselves according to the situation. They should prepare a mix strategy to meet the demand of the situation. A clear blend of the above mentioned leadership styles or setting up an opportunity based style may be fruitful in managing a critical situation that Supfit is facing. Task 2: Agreeing appropriate objectives and making effective use of appraisals can improve business performance and help to assess just how well employees are working. Establishing clear, defined objectives helps employees to focus on specific tasks and company goals. A structured appraisal system can help employees feel that their good work is recognised and that they are valued. It can also provide the opportunity to discuss any weaknesses or problems they may have, and to come up with solutions. 1. Benefits of having an appraisals system The purpose of any performance appraisal program is employee development. The value of performance appraisal is in the process of communication between supervisor and employee. Benefits can be defined in broader aspect as under: To increase professional development, skills level, and performance of each employees against defined objectives. Skills and knowledge attained for both personal development and career advancement is the main stream here. It has been described as intensive and collaborative, ideally incorporating an evaluative stage. To strengthen working relationship between supervisor and employee by addressing all problems through a systematic and defined way. Expert Supervisors unique consultation feature gives employees expert advice on how to solve different types of employee behaviour and performance problems. To clarify job duties and responsibilities. The list of activities one is required to perform for any occupation are the job duties and this can be defined and monitored without error is performance appraisal. To establish mutually understood standards for measuring performance and discussing apparent weaknesses. This helps an organization to achieve optimum goal towards the success. To give constructive feedback and to praise staff for their good work that in turn will make them feel valued. A common demand of almost all the employees are to get fair feedback as per their performance and these can be only measured transparently if an effective appraisal system exists. To aid in promotion, retention and salary decisions and define further objectives for the employees. Most of the times employees beer a creeping inside that they are well paid and increments are given unfairly which remains the most de-motivating factors. The best way of mitigating such crisis is to have an appraisal system. 2. Elements those are apprised (Factors of an appraisal System): There are few important factors that are closely monitored and rated during an appraisal process and based on those the performance is measured: Inherited Leadership quality in a staff: This refers to the capabilities of an employee to motivate, counsel and direct an under command or subordinate. The biggest factors that an appraisal system looks for is the existence of the leadership quality in an employee. It is very important for the HR team to find out the potential leaders among the general staffs. Planning Decision making capabilities of an employee: Based on the preparation of administrative unit programs, activities and services by reaching firm, clearly defined decisions can be the most expected factors to be appraised. Capability of Managing Staff: The way how an employee manages employee selection, retention, development and appraisal of the others is also looked for during an appraisal system. The most effective way to achieve organization performance is to manage employees as the efficient workforce. Higher management always try to appraise the same quality within a staff who might the potential manager in future. Fiscal Management: The factor refers to the utilization of resources, safeguarding assets, effective internal controls, software/data security and so on. This is completely based on high technology and that is the integral part of modern HR appraisal process as a factor. Human Relations communications of staff: Interpersonal relations with internal and external constituents both verbal and written are known as another biggest factor. Appraisal system assesses how effectively a staff can maintain and retain human relations and how good he or she is in verbal and written communications. Professional expertise (job knowledge): Job knowledge of an employee is the factors of appraisal process where one is assessed based on the performance of the job description. Most of the time this factors carries the most vital role for future placement. Task 3 HONEY MUMFORDS LEARNING STYLE Honey and Mumford (1982) have built a typology of Learning Styles around this sequence, identifying individual preferences for each stage (Activist, Reflector, Theorist, and Pragmatist respectively). Kolb also has a test instrument (the Learning Style Inventory) but has carried it further by relating the process also to forms of knowledge. Fugure-1: Honey Mumfords Learning Style Knowing the learning style can accelerate our learning as we undertake activities that best fit the preferred style. Knowing the learning style can also help avoid repeating mistakes by undertaking activities that strengthen other styles For example, if we tend to jump in at the deep end, consider spending time reflecting on experiences before taking action. Activitists (Do) Immerse themselves fully in new experiences Enjoy here and now Open minded, enthusiastic, flexible Act first, consider consequences later Seek to centre activity around themselves Reflectors (Review) Stand back and observe Cautious, take a back seat Collect and analyze data about experience and events, slow to reach conclusions Use information from past, present and immediate observations to maintain a big picture perspective. Theorists (Conclude) Think through problems in a logical manner, value rationality and objectivity Assimilate disparate facts into coherent theories Disciplined, aiming to fit things into rational order Keen on basic assumptions, principles, theories, models and systems thinking Pragmatists (Plan) Keen to put ideas, theories and techniques into practice Search new ideas and experiment Act quickly and confidently on ideas, gets straight to the point Are impatient with endless discussion Forms of Knowledge and the Learning Cycle The four quadrants of the cycle are associated with four different forms of knowledge, in Kolbs view. Each of these forms is paired with its diagonal opposite. Figure-2: Learning Cycle KOLB LEARNING STYLES David Kolbs learning styles model and experiential learning theory (ELT) Having developed the model over many years prior, David Kolb published his learning styles model in 1984. The model gave rise to related terms such as Kolbs experiential learning theory (ELT), and Kolbs learning styles inventory (LSI). In his publications notably his 1984 book Experiential Learning: Experience as the Source of Learning and Development Kolb acknowledges the early work on experiential learning by others in the 1900s, including Rogers, Jung, and Piaget. In turn, Kolbs learning styles model and experiential learning theory are today acknowledged by academics, teachers, managers and trainers as truly seminal works; fundamental concepts towards our understanding and explaining human learning behaviour, and towards helping others to learn. Kolbs experiential learning theory (learning styles) model Kolbs learning theory sets out four distinct learning styles (or preferences), which are based on a four-stage learning cycle (which might also be interpreted as a training cycle). In this respect Kolbs model is particularly elegant, since it offers both a way to understand individual peoples different learning styles, and also an explanation of a cycle of experiential learning that applies to us all. Kolb includes this cycle of learning as a central principle his experiential learning theory, typically expressed as four-stage cycle of learning, in which immediate or concrete experiences provide a basis for observations and reflections. Kolbs model therefore works on two levels a four-stage cycle: Concrete Experience (CE) Reflective Observation (RO) Abstract Conceptualization (AC) Active Experimentation (AE) and a four-type definition of learning styles, (each representing the combination of two preferred styles, rather like a two-by-two matrix of the four-stage cycle styles, as illustrated below), for which Kolb used the terms: Diverging (CE/RO) Assimilating (AC/RO) Converging (AC/AE) Accommodating (CE/AE) Honey and Mumfords Variation on the Kolb System Various resources (including this one in the past) refer to the terms activist, reflector, theorist, and pragmatist (respectively representing the four key stages or learning steps) in seeking to explain Kolbs model. In fact, activist, reflector, theorist, and pragmatist are from a learning styles model developed by Honey and Mumford, which although based on Kolbs work, is different. Arguably therefore the terms activist, reflector, theorist, and pragmatist effectively belong to the Honey and Mumford theory. In summary here are brief descriptions of the four HM key stages/styles, which incidentally are directly mutually corresponding and overlaid, as distinct from the Kolb model in which the learning styles are a product of combinations of the learning cycle stages. The typical presentation of these HM styles and stages would be respectively at north, east, south and west on a circle or four-stage cyclical flow diagram. Having an Experience (stage 1), and Activists (style 1): here and now, gregarious, seek challenge and immediate experience, open-minded, bored with implementation. Reviewing the Experience (stage 2) and Reflectors (style 2): stand back, gather data, ponder and analyse, delay reaching conclusions, listen before speaking, thoughtful. Concluding from the Experience (stage 3) and Theorists (style 3): think things through in logical steps, assimilate disparate facts into coherent theories, rationally objective, reject subjectivity and flippancy. Planning the next steps (stage 4) and Pragmatists (style 4): seek and try out new ideas, practical, down-to-earth, enjoy problem solving and decision-making quickly, bored with long discussions. There is arguably a strong similarity between the Honey and Mumford styles/stages and the corresponding Kolb learning styles: Activist = Accommodating Reflector = Diverging Theorist = Assimilating Pragmatist = Converging Recommended Style: As per the scenario the existing European workforce has been a bit more problematic to management, demanding more holiday time and consultation than their American counterparts. The founder and CEO has recently decided to implement a more Americanised approach, which has meant less employee and union consultation, and more top down decision-making. As Supfit does invest heavily in company training, and has instigated more of an experiential and participative approach to learning and training, including the use of mentors, we can very well use the combination of Honey and Mumfords learning cycle and Kolbs Learning Style. Initially it may happen that the existing workforce may not be liking the style but as human nature is to get freedom, gradually the work force will be acquainted with the process. Task 4: The flexible firm combines functional, numerical and financial flexibility by operating with workforce consisting of both core and peripheral workers with a number of other workers on a variety of non-standard employment contracts. Some non-core functions are also outsourced or contracted out. Good answers offered examples to illustrate this range of flexible options for organisations. The implications of the flexible firm were less convincingly addressed in answers. Issues that could have been discussed were that organisations can minimise employment costs and become more responsive to change in markets and technology by reorganising their employment systems in this way. In terms of HR, the issues of administering a variety of contracts of employment should have been raised in terms of the organisations commitment to different types of employees (opportunities for training and development, reward etc) Also, the motivation of peripheral employees may differ from that of core employees. As per the Atkinson and Meager the firms sought four kinds of flexibility: Functional Numerical Pay Distancing Functional flexibility or multi-skilling was sought amongst core employees within the firm. Other categories of employment were subject to strategies of peripheralization. This involved various forms of numerical flexibility that included increasing the numbers of part-timers, short-term contractors, trainees and job sharers in order to maximize the fit between a firms perceived labour force needs and its employment practices. They suggested that pay flexibility was also sought, partly to purchase the functional flexibility outlined above and partly as a key to a global transformation of the effort-bargain within such firms. Atkinson and Meagers Model of the Flexible Firm Conjunctional Cases Outcomes Unemployment Weak Trade Unions Numerical Flexibility (part-timers, Short-term contractors, casuals, Greater Competitive Pressure new patterns of hours) Functional Flexibility (variability Greater Volatility Uncertainty of tasks) Distancing (sub-contracting) Technological Change Pay Flexibility Figure-3: Atkinson Meagers Model of the Flexible Firm Basis and Aspects of the Atkinsons Model: Let us discuss the various parameters where the model works on various aspects of flexible firm. 1. Flexible Hours: a. Flexitime: Flexitime allows an employee to select the hours he or she will work. There are usually specified limits set by the employer. Employees on a flexible schedule may work a condensed work week or may work a regular work week. Those working a condensed week may work four ten hour days, rather than five eight hour days. Those who work a five day week may work hours other than the typical nine to five. b. Crà ¨che: The Crà ¨che (from French) in zoology refers to care of anothers offspring, for instance in a colony. This term is used in the study of bird colonies. Many penguins form crà ¨ches, in addition to many other birds such as the Canada Goose, Common Eider and Common Shelduck. Here, the meaning is slightly different as the it means to arrange the stay of the workers/staffs in an area i.e. colony, arranged by the employer. c. Special Shifts: Special shift for married women had been a longstanding feature of employment relations in the human management. These are mostly twilight or evening shifts and especially designed for the benefit of the group of staffs. d. Child Care Arrangements e. Transport to Work 2. Payment Systems: This is actually based on the merit pay and change to the mundane payment system based on various elements to justify the capabilities of the workers i.e. performance and quality based payment system. 3. Part time Workers: 4. Use of other kinds of Peripheral labour a. Agency Workers: Workers engaged through, or by, an employment agency or bureau and supplied to a hiring employer on a temporary basis. Some agencies employ their workers directly and should therefore provide their staff with a contract of employment. Other agencies contract workers to provide a service to the hiring employer. In this case staffs are probably self-employed, though possibly not for tax purposes, and will have a contract for service. b. Short-Term Contractees: In other language they are called Floater who work for a certain short period especially when the work load increase during a certain period of the year. c. Casual Workers: A casual worker was defined in the survey as a temporary worker who only works when their employer asks them to, on an as-needed basis, whose work is typically done in short episodes. A casual worker may be asked to work a shift, for a few days or, less often, for several weeks at a time. Casual workers do not have any guarantee of regular ongoing work. d. Home workers/Out workers Applications of Atkinsons Model in Case of Supfit: The best implications of Atkinsons Model can in case the present organization (Supfit) in the sector of appointing non-permanent staffs. As we are in the context of European Workforce it would the best to have a good ratio of peripheral workers i.e. part time employees, agency workers, short term workers and casual workers with flexible shift, flexible payment term and crà ¨che facilities. This will create a feeling of cohesiveness among the permanent staffs and to fulfil their requirement of leave, personal interest and other facilities. It is very natural that staff would have some personal problems even during the high business hour and management should not forget that a complete life consists of personal and professional activities. Once the permanent staff is unable to attend in a specific time and job requirement the peripheral labours can be placed and get the maximum outcomes. Moreover, it is an expensive issue to have a goof numbers of permanent staffs as it involves overtime facilities, high salary and wages, uniforms, earn leave and other leave coverage, group or health insurance, good amount of bonuses and so on. To avoid we may have limited numbers of supervisory permanent staffs and a good number of peripheral workers who will be kept under the supervision of permanent staffs to get the maximum profit margin for the owner group. Based on the above a planning to be prepared to arrange such a flexible environment where the employees are highly satisfied. While doing so we should not forget to compromise with the organizational performance and profit maximization. It is the basic goal for human resource to create a highly satisfied staffs that leads to the organizational performance. Task 5: According to the Human Resource Development we can use various approaches for on the job learning for the overall development of the staffs as well as the organization. Job Rotations Special Assignments Coaching Mentoring Individual Development Plan Manager as Teacher Learning Groups (Teams) Among all the approaches I have the privilege to discuss on four approaches which are as under: Job Rotation: Job rotation is an approach to management development where an individual is moved through a schedule of assignments designed to give him or her a breadth of exposure to the entire operation. Job rotation is also practiced to allow qualified employees to gain more insights into the processes of a company, and to reduce boredom and increase job satisfaction through job variation. The term job rotation can also mean the scheduled exchange of persons in offices, especially in public offices, prior to the end of incumbency or the legislative period. This has been practiced by the German green party for some time but has been discontinued. At the senior management levels, job rotation frequently referred to as management rotation, is tightly linked with succession planning developing a pool of people capable of stepping into an existing job. Here the goal is to provide learning experiences which facilitate changes in thinking and perspective equivalent to the horizon of the level of the succession planning. For lower management levels job rotation has normally one of two purposes: promotability or skill enhancement. In many cases senior managers seem unwilling to risk instability in their units by moving qualified people from jobs where the lower level manager is being successful and reflecting positively on the actions of the senior manager. Many military jobs use the job rotation strategy to allow the soldiers to develop a wider range of experiences, and an exposure to the different jobs of an occupation. Coaching Coaching is a method of directing, instructing and training a person or group of people, with the aim to achieve some goal or develop specific skills. There are many ways to coach, types of coaching and methods to coaching. Sessions are typically one-on-one either in-person or over the telephone. Direction may include motivational speaking. Training may include seminars, workshops, and supervised practice. At the present days coaching refers to a method of personal development or human resource development (HRD). The field of coaching is becoming a distinct area of practice for individuals and in organizations. Today, coaching is a recognized discipline used by many professionals engaged in human development. However, as a distinct profession, it is relatively new and self-regulating. No independent supervisory board evaluates these programs and they are all privately owned. These bodies all accredit various coaching schools as well as individual coaches, except the IAC and ECI which only certify individuals. According to coach credentialing expert, Dr. Rey Carr, in North America the term accreditation only applies to organizations, and certification applies to individuals; whereas in European countries accreditation can mean either organizations or individuals. Mentoring Mentoring is to support and encourage people to manage their own learning in order that they may maximise their potential, develop their skills, improve their performance and become the person they want to be. Eric Parsloe, The Oxford School of Coaching Mentoring Mentoring is a powerful personal development and empowerment tool. It is an effective way of helping people to progress in their careers and is becoming increasing popular as its potential is realised. It is a partnership between two people (mentor and mentee) normally working in a similar field or sharing similar experiences. It is a helpful relationship based upon mutual trust and respect. A mentor is a guide who can help the mentee to find the right direction and who can help them to develop solutions to career issues. Mentors rely upon having had similar experiences to gain an empathy with the mentee and an understanding of their issues. Mentoring provides the mentee with an opportunity to think about career options and progress. A mentor should help the mentee to believe in herself and boost her confidence. A mentor should ask questions and challenge, while providing guidance and encouragement. Mentoring allows the mentee to explore new ideas in confidence. It is a chance to look more closely at oneself, ones issues, opportunities and what someone want in life. Mentoring is about becoming more self aware, taking responsibility for our life and directing the life in the direction we decide, rather than leaving it to chance. Self Development Self-Development is taking personal responsibility for ones own learning and development through a process of assessment, reflection, and taking action. This is a method of learning style helps to: To continually update skills and to remain marketable in the workplace To determine future career direction Strategies that we may use these skills highly depend of the individuals capability and willingness to take challenges. To do those effectively followings can be adhered: Assessing current skills and interest through paper-and-pencil career tests or through computer programs that analyze skills and interests. Maintain a learning log or diary to help us analyze what we are learning from work experiences. Write a personal vision and mission statement. Develop a personal development plan that identifies learning needs and goals. Find a mentor who can provide with best support, advice, and assistance in career direction. Become involved in professional organizations. Read professional journals and trade magazines to keep current on the latest developments in relevant field. Approach to be adhered by Supfit: It is always expected that employees to adhered the practices of continuous self developments within them which ultimately leads toward the optimal goal. Nevertheless, human nature is to relax (in most of the cases) unless a competitive environment is in place. Therefore, it is the responsibility of the higher management of Supfit to create a blend of the approached judiciously prepared and practiced on trail basis before implementing on the employees. In the given scenario it has been observed that the employee complaints, absenteeism, turnover and complaint to union which is not very good in the long run. A discussion session to be arranged with the union leaders in presence of the all the employees to make them understand by a participative manner that how it will help the individuals in the long run. Mentionable here that in most of the cases the staffs do not like to attend training session in holidays or by hampering their day to activities. This ba