Western Countries Influence on China in the 19th Century

For quite a long period of time, China has had the largest economy in the world. Concepts such as use of money and development of merchant class were introduced by the ancient China. The Chinese exhibited a false sense of superiority as they believed that they had nothing to gain by trading with other countries. The country was locked to external trade and it was not until after the Opium War that the country was forcefully opened to the world, which carried both positive and negative effects (Rawski, Para. 2). In the time of cold war, the literature which talked about China’s development focused on two major issues, one was that the involvement in international trade was less likely to be helpful in search of economic development for poor countries. The second was that the culture and social structure of China was a great impediment to its development. It was believed that substantial development in the country would only arise after major and dramatic changes were carried out to the social structure and individual behavior (Overholt. 22). According to Rawski (Para. ), the 19th century was in the Qing Period of the Canton trade and the balance of payment was in favor of Chinese as the silver flowed into the country. It was at this period that the British discovered a favorable market for opium in China as it shipped opium from India. This new discovery made the silver flow to reverse as outflow of silver increased. The balance of payment was no longer favorable as the trend decrease d money supply in the economy. The resultant effect was a downward pressure on general prices of goods and services that led to economic problems. The Qing court wanted to stop the outflow of silver and Commissioner Lin was sent to Canton in the efforts to stop the trade of opium. He confiscated property that belonged to the British traders and destroyed this business. When the traders complained to their government, the British government responded with military pressure which led to the opium war and unequal treaties system. The British soldiers easily outgunned the Qing forces as they had superior weapons. The Qing then surrendered in the year 1842 and the treaty of Nanking was signed. It allowed unrestricted European access to Chinese ports and the island of Hong Kong was ceded to Great Britain. During the war, farm areas were destroyed, and millions of lives were lost that made China’s income to fall. Another war that emerged between the British and the Chinese led to grievous losses and British warships obtained unlimited access to all rivers in China provided they were navigable. All official Chinese documents were to be written in English (U. S. Department of State, Para. 10a). The system of unequal treaties had economic impact on China and it also infringed on their political sovereignty. It led to the imposition of a free trade regime that allowed unlimited trade in all goods and services which eventually was obliged to allow foreign investment and foreign trade as well. The fact that China was large and far from the coast, was a reason that the foreign trade was not a large component of the economy. However, with the coming of new technology which involved rail road and telegraph, the Chinese were eager to utilize these opportunities. New commodities were thus adopted and organizational innovations implemented. In 1860s, the Qing dynasty initiated several institutional reforms in order to deal with the problem of modernization (Gibson 59). The Chinese had a vague concept of European countries and it was not until the opium war that they tried to understand the west in form of their ideologies, social and political structures. Technology was thus introduced into the country as much as democracy and capitalism were recognized by the citizens. They realized that by being locked to other countries, they were left ignorant of significant concepts and ideologies from other countries. The need to conquer the west made them interested in understanding the west in form of their economic structures and political structures. It was certain that the defeat in the opium war was due to the better technology; lethal western weapons, and strong ships. It was then that reform was underway in China (Beeching 47). Economic Reforms In the early 19th century, China was completely closed and isolated itself from other countries in the world. Foreign trade was limited in the city of Canton and it was not until the opium war that led to the signing of Nanjing treaty, that China’s ports were opened and western merchants found their way into the Chinese market. The effect on Chinese economy was significant as they had least expected it. The effect of opening up of China did not have just the negative effects but it also had good and positive effects on the economy and social relationships which existed in the people of Qing Dynasty. Among the negative effects that we shall look in details are internal struggles, increase in the rate of crime, economic downfall in the city of Canton and the increase in the economic welfare at the cities of Shanghai and Hong Kong (Chesneaux, Marianne & Maie-Claire 7). Chinese local industries were affected by cheaper western machine made products. This created so much pressure on the local industries as they had to adapt and reform in order to compete with the western merchants. The defeat of China in the opium war was enough to convince the Chinese that they were no longer the ‘Heavenly Middle Kingdom’ that they always thought they were. They were thus awakened and exposed to the reality of progress (Gibson 32). Chinese were used to being self reliant as they had a self sufficient domestic trade. This was occasioned to a large extent by the fact that it has an immense home trade. It has a vast land that their internal trade is sufficient to perform commercial operations. In opening up, China was able to compare itself with other nations internationally and thus realized that it was no longer on top of the world. Chinese thus developed a sense of purpose and a desire to improve their economy; it was a period of awakening the giant (Chesneaux, Marianne & Maie-Claire 53). Various economic repercussions were obtained after the opening of China. The flourishing of foreign trade was evident as China increased its export from 7. 5 million kilograms of tea in 1843 to 42 million kilograms in 1855. The export of silk also increased significantly. The demand of tea and silk led to the expansion of tea and silk producing regions as they greatly benefited from foreign trade. Another economic effect was a monetary crisis which resulted from the increased volumes of trade activities. There was a reduction in the Spanish silver dollar and it appreciated so much that it was abolished and the Mexican dollar introduced. These problems were enhanced by internal monetary crises that were instigated mainly by poor administration. The copper cash that prevailed in China depreciated significantly as a result of inadequate supply of copper. This devastated Chinese financial system and in 1853, the country had to result to paper money (Beeching 67). There was a significant effect on the textile industry. Prior to the Opium War, the Chinese made cloths by hand. This industry was almost eliminated as open system led to the importation of cheaper machine-made cloths and other products. The native textile industries had to adapt by lowering their charges, though this was detrimental to the textile workers. Their wages were reduced as the textile industries looked for ways of reducing their operation costs and led to lowering the living standards of these workers (Beeching 63). The old Chinese self-sufficient economy was changing under pressure. China’s social-economical development was affected by western capitalistic societies. This however did not lead to the formation of capitalistic China but rather made it to a semi-colonial semi-feudal state. The Chinese industries had been exposed to the outside states but at a time when they had not anticipated it. They were thus less prepared and less equipped to compete with these international industries. The opening up of China meant that the people who used to transport goods to Canton (mostly the Hakkas) were left without jobs. The majority of trade shifted from Canton to Shanghai as Shanghai had been opened for foreign trade. The Hakkas were considered to be ethnic minorities by the natives of Canton which led to a competition between the two clans in form of farming and economy. This led to wars between the two clans and as a result, hundred of thousands of lives were lost and the effect was quite significant to the China’s economy. The population which had made the country prosperous was being threatened by this internal wars and struggles (Chung, Para. 4). China was no more affected as a series of natural disasters also stroke the country. The Huang He River had burst its banks and flooded a vast portion of land in the year 1851. In 1855, the river flooded again and the fertile and among the most productive province of Jiangsu was in ruins as farmland was destroyed and loss of lives intensified. The Qing government could not afford to provide adequate aid to the survivors as funds had been drained during the opium war and against the Taipings rebellion. The government was also busy in negotiating for military aid with the European powers. The Qing government also faced contempt from the Nian movement which had just begun. The government was thus placed in a very unstable situation by all these occurrences and frustrations (Chung, Para. 5). According to Chung (Para. 7), the Muslim rebellions that tried to enhance equal rights among the Muslims and the non-Muslims, the Taipings rebellion, and other groups that were opposed to the Qing government failed to strike a solution to the prevailing social and economic crisis, as millions of people died. The much relied agricultural industry was severely affected by these rebellions as the countryside was ruined in these battles and countless people lost their lives. This led the Qing government to increase its dependence on the European Imperial forces and subsequent purchase of modern weapons. These internal conflicts made it hard for the Qing government to concentrate its military powers and it thus lost external wars: the Second Opium War (1856-1860) and Sino-Japanese War (1894-1895). The effect was an occupation of Beijing by an international force and the agreement of the Boxer Protocol (1901) which was done under humiliating terms. The government was to indemnify the European powers for the losses that they had suffered. The Qing court resisted reforms and revolutionaries and reformers advocated for overthrow of the Qing dynasty in order to form a republic. The Qing government was eventually weakened by the numerous rebellions as they tried to pursue economic stability as the economic crisis had worsened by the end of 19th century to a national status (Chung, Para. 10). The Rise of China’s Economy The growth and the sudden rise of China is one of the greatest economic successes in the world. With economic reforms in China which started in the year 1979, to 2008 China’s economy is believed to have grown 14-fold in real terms. This has led to the raising of hundreds of millions of people out of extreme poverty. On per capita basis, China is relatively poor though it is currently the world’s second largest economy. This has led to increase in economic ties between China and the U. S. China is still marked with low-cost labor and as such, most U. S. companies operate in China so as to benefit from the vast and booming Chinese Market and low cost of operations as a result of taking advantage of the low cost labor in their export-oriented manufacturing (Rawski, Para. ). The basic improvements seem to have originated from four modernization strategies in Agriculture, industry, science and technology, and National Defense. This meant that rural electrification had to be initiated, a total industrial automation, a focus on a new outlook of the economy, and an enhanced national security and strength on defense. Mechanization in agriculture and subsequent use of irrigation, led to the modification of the ind ustry so as to enhance production, better farming methods were also encouraged (Rawski, Para. 9). The Chinese social and cultural structure had been thought that it was a major constraint to economic growth and development. The rapid improvement in economic conditions of the Chinese is a clear indication that the social and cultural structures might be conducive to growth. There are certain elements of Chinese culture that generate an enterprising spirit which is not found in most cultures in poor countries. One would pose to wonder why this enterprising spirit didn’t have major effects in the 19th century as it had after the minor reforms in 1978 which initiated explosive growth. China used improvements in the heavy industry and infrastructure. Development of modern highways, and compounding of Petrochemical, steel and other industries ensured that the economic capacity of the nation was improved. This rapid growth was also initiated by the use of cheap labor which was used extensively in manufacture and subsequent export of low-end products (Overholt 23). The Implications The opening up of China and the subsequent catastrophic occurrences had negative impacts on the economic well being of China. The Western countries undermined China’s self sufficient economy, the rural homestead industries were as much adversely affected as the development that occurred in the urban market economy. On the other hand, it opened the nation to compare its progress with other nations as well. Technology was imported from the western countries and all this worked to enable the nation develop unbiased opinions on the working of international economies. The Chinese government established commercial and modern enterprises as a result of stimulation from the western capitalism. Many of the established enterprises went bankrupt as a result of poor administration, but the established modern industries thrived which enhanced the social-economic development of China. The modern industries stimulated the growth of Chinese capitalism and formed a basis which has marked a tremendous improvement of the Chinese economy (Chesneaux, Marianne & Maie-Claire 48). It is a wonder that a nation that could barely feed its citizens is an industrial giant with the leading capacity in steel production, aluminum, cement and coal. The U. S. ad been the world’s leading auto market but in January 2009, China had turned the tables. It had also been named the top producer of merchant ships in the year 2007. It is clear that the western influence had negative impacts to China at first but today China has all to gain. The exposure to the western markets at such a critical time gave the nation a clear understanding of improved technology and the workings of international markets and economies. China thus used its capacities and its capabilities so as enable it obtain control in this international market. When we compare China to North Korea, a country that was free from western influence, then we can confidently say that Western Influence was what was needed to awaken the sleeping giant in China (Overholt 29). According to the U. S. Department of State (Para. 20b), in the Mid-19th century, the western countries focused the capitalist diplomacy on Korea. The policy which was adopted by the Leaders made the region to be termed as Hermit Kingdom. Korea remained independent until late 19th century when China wanted to block the influence Japan had on Korean Peninsula and the pressure by the Russians. This led to the afore-mentioned Sino-Japanese war in which Japan emerged victorious. Korea was thus annexed as part of the Japan Empire which had strong colonial administration and control and it was not until the end of World War II in 1945 that Japan surrendered. This led to the division of Korea, where the United States administered the southern part and the U. S. S. R. took over the northern side. North Korea attacked South Korea in 1950 and the United Nations sent troops to support South Korea. China Supported North Korea until an armistice agreement was signed in 1953. North Korea is governed by a centralized government under the Communist Korean Worker’s Party (KWP). Minor parties do exist but under limited power and scope of authority. It has a record of wide violations of human rights as the government has total control on all issues in the state. The media is controlled by the government that it is not a wonder that ‘North Korea was ranked second to last on the World Press Freedom Index’ (U. S. Department of State, Para. 23b). North Korea spends quite a substantial proportion of its income on military, but the nation has not yet become self-sufficient in food production. Technological links were disrupted and affected with the collapse of communism in the former Soviet Union in 1989. The GDP of the nation has stagnated for quite a while and it is far much below China in economic development and in the living standards of its nationals (U. S. Department of State, Para. 18b). Conclusion The Chinese people were against the opening of China by the Opium War, but the control of China and influence by the Western countries made China a semi-feudal semi-colonial state. It was not until then that technology found its way into China and the Chinese were quick to use it to their advantaged. The shameful defeat in the Opium War made the Chinese vow to strengthen their country in order to prevent a repeat of the same. This has inspired the nation to the current situation of growth and influence in the world. In fact China is very reluctant to succumb to international pressure as it is on its way to gain the title the world’s economic giant.

The Big Switch

The president of our company has brought to our attention that he would appreciate it if our department could create a new information system for our company. The current information system that we use is Microsoft Excel and we need to create a way to transfer and implement the new office system of Microsoft Access. We need to explain the current downsides to using Microsoft Excel and explain the positive ways by using Microsoft Access that will help our company grow, expand, and be more efficient to our company. We also need to come up with software that is compatible to Microsoft Access just to have a contingency plan, in case the president is not pleased with the results we research and to help improve the internal communications along with help make the workflow of the sales department improve. We do know that the current plan is not working for our company and we need to all work diligently to improve our current system and make the transition easy. Microsoft office is a great tool and Excel, when used properly, is a valuable asset. The problem with Microsoft Excel is that there are various manual inputs that can go wrong. Other common problems that can cause an error involve not using a colon to indicate a range of cells, forgetting to close your parentheses, and adding common formats as part of the formula (Murray, 2013). The formulas that Excel uses would be complicated to track everything. (Murray, 2013) It is also very difficult to track the history of changes that our company uses has it moves forward. This would not only hinder the company but could possibly cause miscommunication of the data inputted. (Murray, 2013) These reasons stated above are why the company should not use the Excel program to move forward in the progression of the company. With Access, it is a relational database association that exists between the tables, which stores the data. These help to maintain the integrity of the data contained within. Access can store tons of data in different forms and yet still intertwine for easy referencing and analyzing. (Microsoft, 2013) Access is also great for the business since it has the ability to manage contacts, track inventory, track orders, and events. (Microsoft, 2013) One great feature about Access is that multiple users can have it opened working on the same database and only what the other person is working on is locked. Microsoft, 2013) This allows several people to input their data at the same time and it is secure. Conclusion As one can see there are far more advantages using Microsoft Access verses using Microsoft Excel. Access is more suited for our company’s needs now. Using Access will cut down on our company’s mistakes. This will utilize and maximize our company’s growth. This will increase the employee production. In the long run, Access will make the company’s bottom line profit grow, which at the end of the day is the most important thing.

Interpersonal Roles

Lamond, D. (2003). Henry Mintzberg vs. Henri Fayol: Of Lighthouses, Cubists and the Emperor's New Clothes. Journal of Applied Management and Entrepreneurship, 8(4), 5-23. This article talks about Mintzberg’s and Fayol’s theories regarding managerial work. It is mentioned that Fayol’s managerial function and Mintzberg’s managerial roles can be connected with one another. (Tsoukas 1994, as cited by Lamond, 2003) â€Å"the logical links between Fayol’s functions and Mintzberg’s roles are demonstrated†. This article explains the interrelation between managerial functions and managerial roles in particular group so that the management in organisation can run effectively. This article is useful for the author’s research as it gives explanation about the importance of interpersonal roles in relations with managerial functions while Robbins et al. (2003) book only provides the basic theoretical managerial roles without further relate with any other managerial components. Mintzberg, H. (1975). The manager's job: folklore and fact, Harvard Business Review, 53(4) 49-61. Mintzberg’s (1975) article shows how interpersonal roles play important part for managers to make decisions and strategies; it also describes the importance of how interpersonal roles are integrated with other roles to achieve effectiveness of managerial work. Mintzberg (1975) suggested that â€Å"Three of manager’s roles arise directly from his formal authority and involve basic interpersonal relationship. † (p. 54). This article is useful for the author’s research as it gives an insight towards the importance of interpersonal roles for manager to avoid misunderstanding between the modern and traditional managerial works. This article is better compared to Pavett and Lau (1983) about managerial work’s article because it provides several examples that support the importance of international roles by providing evidence in reality such as the modern and traditional managerial works that have been misunderstood by society. Pavett, C. M. , & Lau, A. W. (1983). Managerial work: The Influence of hierarchical level and functional speciality. Academy of Management Journal , 26(1), 170 – 177. Through this article, Pavett and Lau (1983) show the influence of hierarchical level and functional speciality on managerial roles. (Mintzberg, 1975, as cited in Pavett & Lau, 1983) â€Å"differences in managerial work involve the relative’s importance of the roles across hierarchical level and functional speciality†. The research focuses on the integration between hierarchical level and functional speciality with managerial roles. This article is useful to the author’s research topics as Pavett and Lau (1983) give a relevant statistics about how hierarchical level, functional speciality and managerial roles are integrated, especially when the interpersonal roles are dominantly seen in hierarchical level and functional speciality as an essential part compared to the book written by Robbins et al. (2003) which only mentioned about the theory without justified examples to support it. Robbins, S. P. , Bergman, R. , Stagg, I. , & Coutler, M. 2012). Management 6 (6th edition). French Forest NSW, Australia: Pearson Australia. Robbins et al. (2012) contains a brief explanation about Mintzberg’s interpersonal roles with its duties and responsibilities. Robbins et al. (2012) suggested that â€Å"All managers are required to perform duties that involve people (subordinates and persons outside the organisation) and other duties that are ceremonial and symbolic in nature†. The study explains that inter personal roles are more likely involve outsiders. This book is beneficial for the author’s research topic, as Robbins et al. (2012) gives plenty explanations about the benefit of interpersonal roles and how each roles are linked well together. The main limitation of the article is that the authors do not put sufficient details and examples about each roles compared to the article of Mintzberg (1975) which mentioned the clear evidence regarding interpersonal roles in everyday life by providing explanation about the modern and traditional way in defining managerial works.

The effectiveness of Cognitive Behaviour Therapy in the treatment of Literature review

The effectiveness of Cognitive Behaviour Therapy in the treatment of Bulimia Nervosa - Literature review Example This research aims to evaluate and present the effectiveness of cognitive behaviour therapy in the treatment of Bulimia Nervosa. Illnesses have been around since the world started. They plagued the lives of all organisms throughout history. Plants, animals and humans can acquire different illnesses at certain points of their lives in one way or another. As knowledge takes on its advancement, the solutions or cure to these illnesses diseases have been developed and are constantly being studied to create better cures. With the availability of those cures, the lives of organisms are prolonged allowing them to survive longer. Even though cures are being developed and improved, the existence of different illnesses is continuously considered as one of the main concerns in medical profession. Some older drugs and therapies may not be effective for illnesses today which mean consistent research must be done to ensure the survival of humans and other organisms. In that case, illnesses capture the attention of scientists and medical practitioners alike as those illnesses are big threats to the lives of many. Also there are diseases that are not yet curable as there are no stable solutions for those problems yet. In response to that topic, it would help to focus on the very meaning of disease and how it affects the lives of all living beings. The very existence being searched for by scientists is the disease which is defined together with health. The World Health Organization defined health in 1948 as â€Å"a state of complete physical, mental, and social well-being and not merely the absence of disease or infirmity,† (Bonita, Beaglehole, and Kjellstrom, 2006, p. 15). That definition of health is very much ideal as it would be difficult to measure the well-being or to create the exact criteria. Making standards for the well-being was close to impossible with that statement or definition that made it bombarded with criticisms. Others may say that health is the absence of disease, so in order to define disease and clearly separate it from health, the following can specifically

Republic of Irelands economy over the past three years Essay

Republic of Irelands economy over the past three years - Essay Example However, this economic boom started slowing down in 2001, two years later it resumed and then in 2006 it slowed down again. Efforts in this essay will be directed towards the post 'Celtic tiger' years. (O'Kane, 2007) Between the years 2005 and 2006, the government was successful in maintaining economic growth. However, after 2006 to 2008, there was a reduction in the economy and there are numerous factors that caused these increase and reduction. Between 2005 and 2006, the economy hade resurgence because the government dealt with some of the problems the country had encountered before and this was aided by some external factors. At that time, (2005-2006), the rate of economic growth in Ireland was over four percent while other countries such as France, Germany and Italy in the European Union had economic growth rates of between one percent and three percent. Ireland had been struggling with Foot and Mouth Disease at a certain point but this was dealt with accordingly and by 2005 and 2006, the problem had been eradicated thus boosting sales in the primary sector. (Clinch et al, 2008) Another factor that contributed to this economic growth in the first year under analysis could be because of increases in property values. Consequently, there was greater employment in the construction sector. But other external factors also contributed to the high economic growth rate. ... It also produces Apple, IBM, and HP makes. Therefore technology is a crucial factor in Ireland's economy. Ireland was a strong economic partner to the United States; therefore any factors affecting its partnmers were likely to trickle down to the country. Four years ago, the US had experienced the September eleven attacks, but by 2005, this had reversed and led to US' economic recovery. The government also encouraged further investments in industry, science and technology between 2005 and 2006. This was seen by the numerous international firms that have set up branches in Ireland. One such company is Google; others are Intel, Abbott Laboratories and Bell Labs. In line with these developments, the Ireland government decide to establish a body known as Science Foundation Ireland which was formed to assist science bodies in the Republic. The government had created an SSIA savings scheme and funds had matured. Consumers had been cushioned in their expenditure and this boosted growth in the retail sector. (CIA, 2006) But in the years 2006 and 2008, there has been resurgence in economic growth. This could be as a result of a recession in property values. Because of availability of labour and growing demand for homes after the Celtic Tiger years, the Republic started building homes aggressively. By 2006, homes had reached 90, 000 which is almost half of what the UK has yet the ratio of populations between the UK and Ireland is 15:1. This means that by 2007 and 2008, there were excess homes compared to the demand. Rent declined and there was less income coming from that sector. Another factor that led to this decrease in economic growth was the expansion of the European Union. During 2007, Romania and Bulgaria entered

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Experimental film analysis - Essay Example In Free Radicals, he synthesizes all his artistic abilities and sensitivities in order to create a truly majestic work. This paper intends to read Lye’s doodling on film through an examination of the multimedia character of the Free radicals. Although, the paper attempts to read the Free Radicals from within, i.e. by examining its medium and content on its own, it would try to incorporate necessary theoretical insights as well. 2. The Artistic Background of the Free Radicals Len Lye was always particular in drawing the source of his inspiration from music from various (often distant and little known) cultural backgrounds. In one of his first and best animated sound films, which is A Colour Box, Lye uses Caribbean jazz in a time when it was not much known to the outside the world. Peculiarly, in Lye’s animation films, shadows, streaks and colors are easily blended to an extraordinary music with quite perfection. Color could be seen bouncing back from the screen. It is th is very synchronization of colors and images with the music makes Lye’s animations more than appealing. Lye’s animated films were not only quite different from the movies produced in their respective times but also technologically advanced than other. This technological edge is one of the distinct features of Lye’s films. It was in 1926, Len Lye moved to England from New Zealand. He was attracted to the modernist movement in England and active in such circles having many friends among the stalwarts of arts and literature. Lye was also attracted into various art forms such as surrealist stories and poems and moving sculpture. He was both eclectic and eccentric. The indigenous art of Maori people in the New Zealand had strong influence on Ley’s idea of art, especially his conception of visual art. Moreover, he was extremely fascinated by the oceanic cultures from around the world. It is necessary to remember that he was expelled from the racist New Zealand for living among the Maori people. In his way to England, he had also visited many pacific islands and closely interacted with the aboriginal people. It might be because of this influence of the indigenous culture, Lye’s painted-on-celluloid art resembled a lot to the finger paintings which are common among the aboriginals. In 1944, Len Lye moved to the United States wherein he got more acquainted with the African music traditions. As his interests in kinetic sculpture grew, it was well reflected in the films he made later. 3. The Free Radicals as Doodling on the Film The Free Radical was made in 1958 and it was peculiar with its intense black and white nature. It appeared as drawings on a chalkboard. According to Kasmere, â€Å"an assured, signature work that Stan Brakhage called â€Å"an almost unbelievably immense masterpiece†,  Free Radicals  synchronizes etched hieroglyphs, squiggly horizontal lines and verticals of varying thickness to energetic drum music f rom The Bagirmi Tribe of Africa. Nothing in the film is static. â€Å"White ziggle-zag-splutter scratches†, inscribed using a variety of tools including arrowheads and saw-teeth, appear abruptly, leap, quiver, and dance alongside the beat, then vanish suddenly. Occasionally the flat picture plane is transformed into a three-dimensional space as fluid, rough-edged wiry shapes appear to rotate, as though circled by a camera/eye. At times one denotes the outline of quickly passing hill covered or jagged mountainous landscape as the line-play slips

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VIsiting Los Angeles County Museum of Art - Essay Example There were lots of permanent art collections, art galleries and dress exhibitions which I got an opportunity to see Matisse in one. In one building, the Ahmanson, the modern art collections displayed works that went all the way from back in 1900. I loved most David Hackneys’ works which ranged from paintings which spoke a thousand words about people and all the more to nature. I also was intrigued by the truth in art being everywhere. I discovered this as I moved from one piece of art to another and nature, people, common objects, Paintings, music and films revealed art. This is something I had learnt in class though I had really doubted. This visit ascertained this without a doubt. I did not however enjoy this one aspect where every piece of art had a placard giving its name though it did not give sufficient information concerning the art and the artist behind it. And can you imagine I had to pay $11 for iced tea and a bun! This was not funny at all. A serious stereotype I had before I visited this place was that it is a cultural wasteland and it made me not even think about visiting it for such a very long time. Through this project, I discovered that this is just but a lie and that contrary to it; this place is so beautiful and is so rich in culture. Am actually planning to visit it again now that I can’t say I explored it to my

My Diet Analysis Essay Example | Topics and Well Written Essays - 750 words

My Diet Analysis - Essay Example Finally, I realized my energy expenditure was significantly more than my calorie intake. This gave me room to enhance my diet to incorporate more food groups. II. Based on my original 5 day food log actual vs. recommended report there were a number of nutrients in my diet that I consumed less than or equal to 75% of the recommended daily intake. Among these nutrients in the calories category included overall calorie consumption (38%), calories from fat (23%), and calories from saturated fat (15%). Other nutrients that fell within this designated range included carbohydrates, sugar, and dietary fiber. In terms of fats there were a number that fell below this recommended range. These included saturated fat, mono fat, and poly fat. Other nutrients included cholesterol, water, vitamin A, vitamin B1, vitamin B6, vitamin D, and vitamin E. In addition to these nutrients below the recommended daily intake, there was one nutrient – sodium – of which I consumed over 125% of my re commended daily intake. There are a number of ways that the foods in which I don’t meet the recommended intake, as well my overconsumption of sodium can adversely affect my health. In terms of my sodium consumption I am at risk of hypertension and heart disease (Farfan). In terms of the foods I am deficient in there are a number of diseases and risks I face. ... In terms of carbohydrates I risk experiencing low energy levels. In terms of fiber deficiency I face digestion problems. Finally, in terms of my fat deficiencies I face the risk of skin, fingernail, and even menstrual problems. III. There were a great many foods in which my recommended daily intake was below. In thinking of three foods that are aimed at fulfilling these needs, I attempted to find foods rich in many of nutrients I was deficient in. As I was deficient in many of the vitamin B categories, I realize that I should add bananas and legumes to my diet as they would improve both vitamin B1 and B6 consumption (Daniellson). In meeting my monosaturated fat intake I could consume more olive oil with my main meals. As the only nutrient that I consumed over the recommended daily intake of was sodium, three foods that I could remove from my diet to lower my sodium intake include crackers, tuna, and hamburgers; in addition I could limit my general use of salt (Iannelli, 2010). IV. Wh en comparing my original food log with my made up menus there were a number of elements I noticed that differed between the two food logs. One of the most pervasive differences I noticed between the two foods logs was that in the made up menu the calorie count was consistently higher in the made up menus. It’s clear this is an element of not being able to maintain a balanced diet because of a variety of factors related to daily commitments. In terms of specific improvements I believe that some of the major improvements noted were the consistency in meals. In these regards, the made up menus more consistently contained foods from the recommended food categories. For instance, these menus consistently contained a

Answer the question Essay Example | Topics and Well Written Essays - 500 words - 6

Answer the question - Essay Example This might lead to a loss for the firm (Ederington, 1979). In the following table, the expected values are calculated if the dollar values weaken. As per the calculations shown above, it can be seen that when the value of dollars weaken, the expected returns are lower. As a result the firm ends up obtaining lower return in Sterling. Hence it can be seen that the returns available in each of month of March, June and September would be low considering the futures market prices in each of these months. In order to prevent such a situation it is essential that the company undertakes hedging strategy (Stulz, 1984). Under the hedging technique, it becomes possible to conduct the sales at the current spot price, even at the future date. As a result loss due to weakening of dollar values can be prevented. In the above table it can be seen that if the firm sells at the spot price, set as per hedging, the expected realisable values are higher than the expected realisable values as per future rates. Hence hedging can be stated to be a suitable strategy when the dollar values actually weaken (Nance, Smith and Smithson, 1993). Hedging is essentially not required. If the dollar values become stronger, that is when lower proportion of dollars are required to be paid against each dollars. In the above table it can be seen that when the firm future market prices are lower than the spot prices, the expected values are higher (Allayannis and Ofek, 2001). As a result the firm earns a profit without undertaking the hedging technique. Therefore the hedging technique must not be undertaken when the future values of contracts are expected to be lower than the spot exchange rates. Hence it is important to understand what the future contract prices would be in comparison with the sport prices and accordingly determine whether to undertaken hedging techniques or not. When the

MATLAB Dynamics & Control Assignment Example | Topics and Well Written Essays - 4500 words

MATLAB Dynamics & Control - Assignment Example Furthermore, both the time constant and dead time vary with the size of the step-change. The process gain is affected but it is affected only in half of the cases (see Concentration A, see below). †¢ Select a set of dynamic process constants resulting from one of the step-changes that you have tested, and use these to calculate initial values for the constants in each of the three different controller equations (P, PI & PID). Proportional control: It is simple, provides rapid adjustment of the manipulated variable (MV). Does not provide zero offset, although the error is reduced (E>0). It increase speeds in the dynamic response. It can cause instability if improperly tuned. Integral control: It is simple, achieves zero offset (E=0). It provides adjusts the manipulated variable (MV) in a slower manner than the proportional mode –this can lead to poor dynamic performance. It can cause instability if improperly tuned. Derivative control: It is simple. It does not influence the final steady-state value of the error (E). It provides rapid correction based on the rate of change of the controlled variable (CV). It can cause undesirable high-frequency variation in the manipulated variable (MV). †¢ Once you have chosen your optimal control scheme, justify why you have selected it. You can use various methods of assessing controller performance in order to reach your decision: rise time, peak overshoot ratio, decay ratio, settling time, IAE, ISE, ITAE. You are not expected to use all of these, but at least two should be used and compared with each other in relation to optimizing your controller constants. †¢ Test your control loop for its ability to cope with a disturbance (e.g. in the concentration of feed chemical, or the temperature of the cooling water), and also for its ability to move the process to a new operating region by making a step-change to the set-point (i.e.

The Members Church of God International and The Community Essay Example for Free

The Members Church of God International and The Community Essay The Members Church of God International, is one of the most prominent and well-established religious congregations in the Philippines today. The organization is known to be highly principled and incomparable in upholding Gods righteousness, existing for more than 40 years. Believing that one of the most important missions of the members of the Church of God International is to propagate the pure and untarnished Gospel of Christ on earth, the Church has conscientiously and fervently carries this obligation to fellowmen all over the world through the use of mass media and the Internet. As a member of the Church, one is taught to follow religiously and conscientiously the fundamental doctrines for Christians and righteousness as a way of life, and to be law abiding citizens recognizing the fundamental laws of the land they live in. The true essence of a pure religion is manifested in the Church of God’s high-regard and concern for the fatherless, widows, handicapped and disabled people. The Churchs charity and social welfare ministry, Lingap Kapatid was organized and established in 1997 to help the church in its mission to organize and help establish key orphanages in various places to house and care for our less privileged fellowmen who are widowed and abandoned. The historical and current importance of this religion and spirituality in Metro Manila, in particular, manifests in the manner of living of its members. In this community, there are more than 30,000 members who abide not only by God’s law but also by the laws of the country. The members do not smoke, nor become engaged in drug addictions, nor drink liquors. They are even encouraged not to marry if they are not yet in the proper age and if they are not physically, financially and psychologically stable. This thing leads to helping the community in promoting birth control. Religiosity influences a persons attitudes and values, providing meaning and purpose in life resulting to a healthy and safe community. Reference Soriano, Eliseo F. (2002). Leaving Behind the Fundamental Doctrines of Christ. Philippines. The Members of the Church of God in Christ.

Doing Business In Latin America

Doing Business In Latin America Introduction Todays world is ever changing. National borders are becoming less important in times of global capital movements, cross-border migration and highly interwoven transnational trade relationships. Globalisation is since the 1990 and the collapse of the bipolar world a well-known phenomenon and it is beyond question that nation states will have to adjust to its influences in the long run. The governmental response has so far been the creation of international free trade agreements and multilateral institutions like the WTO for instance, which are to oversee global trade systems and which also have as their task the liberalization of markets around the world. Advocates of trade liberalization claim that the eradication of trade barriers ultimately leads to an increase in a countries overall wealth, whereas more leftist opponents stress that free trade predominantly benefits multinational corporations and the corporate ruling class. As a matter of fact, States themselves or Governments do not trade. Consequentially, companies and corporation are most likely to benefit from free trade Areas and investment opportunities abroad. However, doing business in third countries underlies varying circumstances. Taxation, environmental regulations, labour standards and investment regulations are factors of production that vary from country to country. For businesses in order to make use of comparative advantages, it is therefore essential to know about the differences between countries in terms of the local business climate. This paper aims at unfolding those differences for three Latin American countries: Mexico, Belize and Cuba. Furthermore, this paper shall function as a guide to companies who are interested in doing business in the Latino Americas and especially in one of the three countries mentioned above. The paper starts with a general economic introduction of the countries in concern. For this purpose, economic data will be analysed. Then in the second part, the document will focus on unravelling differences in terms of business climate and investment opportunities. Lastly, a conclusion will be drawn. 2.0 Introduction to Mexico Mexico lies at the bottom of Central America, bordering the Caribbean Sea and the Gulf of Mexico, between Belize and the United States and bordering the North Pacific Ocean, between Guatemala and the United States. It has a population of about 112 million inhabitants. From 1930 to 1970, although starting from a low baseline, Mexico experienced tremendous economic growth. Achievement historians call it El Milagro Mexicano or The Mexican Economic Miracle. The annual economic growth of Mexico hit an average of 3% to 4% during this period, with an estimated annual rate of inflation of 3%. It was not really a miracle however; it was actually a result of the government policy. The policy put an emphasis on primary education which increased the enrollment rate between 1929 and 1949 by 300%. The policy also imposed high tariffs on imported domestic goods, and lastly, the policy publicly invested in agriculture, energy and transportation infrastructure. From the 1940s, foreign immigration into Mexicos cities expanded the countrys urban population. Despite the falling foreign investment of the Great Depression during that period, the economy grew. The assumption of mineral rights and the subsequent nationalization of the oil industry into Pemex during the p residency of Là ¡zaro Cà ¡rdenas del Rà ­o was a widely accepted move. On 1 January 1994, Mexico became a full member of the North American Free Trade Agreement (NAFTA), joining the United States of America and Canada. In 2005, North American economic integration was further strengthened by the signing of the Security and Prosperity Partnership of North America. Mexico has a free market economy that recently entered the trillion-dollar class. It contains a mixture of modern and outmoded industry and agriculture, increasingly dominated by the private sector. Recent administrations have expanded competition in sea ports, railroads, telecommunications, electricity generation, natural gas distribution, and airports. Per capita income is one-quarter that of the United States; income distribution remains highly unequal. Trade with the United States and Canada has tripled since the implementation of NAFTA. Mexico has free-trade agreements with more than 40 countries, governing 90% of its foreign commerce. 2.1 State of the Mexican Economy As mentioned before, Mexico has a free market economy in the trillion dollar class. It contains a blend of modern and outmoded industry and agriculture, increasingly dominated by the private sector. Recent administrations have expanded competition in seaports, railroads, telecommunications, electricity generation, natural gas distribution, and airports. Per capita income is roughly one-third that of the US; income distribution remains highly unequal. Trade with the US and Canada has nearly tripled since the implementation of NAFTA in 1994. Mexico has free trade agreements with over 50 countries including, Guatemala, Honduras, El Salvador, the European Free Trade Area, and Japan, putting more than 90% of trade under free trade agreements. In 2007, during its first year in office, the Felipe Calderon administration was able to garner support from the opposition to successfully pass pension and fiscal reforms. The administration passed an energy reform measure in 2008, and another fiscal reform in 2009. Mexicos GDP plunged 6.5% in 2009 as world demand for exports dropped and asset prices tumbled, but GDP is expected to post positive growth late in 2010. The administration continues to face many economic challenges, including improving the public education system, upgrading infrastructure, modernizing labor laws, and fostering private investment in the energy sector. Calderon has stated that his top economic priorities remain reducing poverty and creating jobs. 2.2 Doing business in Mexico In 2004 Mexicos securities market was a tiny fraction of what might be expected for an economy of its size. And while Latin America received 9% of global private equity flows, Mexico, with more than a third of the regions income, received only a tenth of that. More companies were delisting rather than issuing new shares on the Mexican stock exchange. It was time for reform. Mexico overhauled its securities laws, with useful input from stakeholders. A new law attacked self-dealing, a major problem in the country, to better protect investors. Mexico also extended corporate governance obligations to subsidiaries. In addition, listed companies were required to set up committees of independent directors. Changes in the law were enacted to help protect investors and boost their confidence in Mexican markets. Although Mexicos economy took a plunge during the 1996 recession, the worst has passed and Mexicos economy is headed towards a recovery. Mexicos economy depends a lot on the United States; it derives a great deal of income and stability from the United States. When purchases, tourism, hiring, and investment from the United States declines, Mexicos economy declines. If the United States continues to suffer from unemployment, tight credit, and general market instability, Mexico will suffer from the same. If unemployment in the United States soars to 10%, Mexicos unemployment will equally increase to follow suit. A simple solution would of course to break away from the dependence on the American economy but it would not be viable. The American economy is a strong one and instead of breaking away from it, Mexico should instead attract investors from other regions of the world (such as the European Union), so that their economy would not be so tightly tied to just one economy. 4.0 Introduction to Cuba Cuba, an island country, is located in the Gulf of Mexico. Cuba has a population of about 11 million inhabitants, most of them living in the cities of Havana, the nations capital, and Santiago de Cuba. The official language is Spanish. Cuba, like Mexico and most of the Latin American countries, has formerly been a Spanish colony, but managed to gain independence in 1902. In the 1950s the world famous Cuban revolution took place, which changed the political system in Cuba towards a regime based on communist socialism. Fidel Castro, Cubas dictator had close ties to the Soviet Union, which was at the same time the countries mayor trade partner and financial contributor. During the Cold war, Cuba took side of its communist allies and became center of public attention, as Soviet nuclear weapons were placed on Cuban territory during the 60s and the U.S felt threatened by this behaviour. It was due to this incidence that the U.S. imposed a trade embargo on Cuba, which exists in some form up till today. Since the breakdown of the UDSSR, Cuba lost its greatest ally and exports and financial support fell drastically. By now, Fidel Castro who led the Regime for 50 years has been replaced through his brother Raà ºl due to bad health conditions. Rà ¡ul Castro is likely to impose economical and political reforms in the near future in order to open up Cubas economy to investment and international trade. In addition to the world wide economic recession, Cuba suffered in 2008 severe damage due to Hurricanes Ike and Gustav. The Economist estimated the damage to lie around 10 billion US$, an amount that is hard to bear for a country that weak in terms of productivity and economic stability (The Economist, 2008). 4.1 The state of the Cuban Economy Socialism and poor governance have, over the years, hemmed economic development substantially. The countrys annual GDP is with 50 bn comparatively small and close to the poorest 25 % of the worlds countries. Cubas GDP has experienced an unstable development during the last decade (U.S. Department of State, 2010) [3.2 % growth in 2002, 1.4 % in 2001, 3.8 % in 2003, 5.8 % in 2004, 11.2 % in 2005, 12.1 % in 2006, 7.3% in 2007, 4.1 % in 2008, 1.3 % in 2009]. The decline in GDP growth during 2008 and 2007 can be ascribed to the global economic recession and it is apparent that the Cuban economy has been severely hit. According to the an article published by the Guardian, Cuba faces a long, hot summer of discontent. Virtually every key economic indicator is moving in the wrong direction as the global economic slowdown is excerbating deficiencies long been apparent in Cubas economic management (The Guardian, 2009). Cubas GDP per Capita was 4, 450 US$ per year and therewith around 10 times smaller then the capita GDP in the United States. The average monthly salary amounts to 18 $ which would mean that the average Cuban would live of 50 cents a day. As a consequence of this low income, Cubans are obliged to scrimp and hustle on the black market even when things are going relatively well (The Guardian, 2009). However, due to Cubans social policy, citizens receive free food vouchers and other governmental support. About 60 % Cubas labor force, which covers 5 million people, work in the services sector, with tourism being the largest part. The rest of the Cuban workers are either employed within the agricultural sector or the industry with the latter only producing light industrial goods. . The unemployment rate is with 1.7 % considerably low and is in fact the 9th lowest in the world. This , however, cannot be taken as a reliable figure as the socialist government tries to hide away unemployment through public occupation campaigns. The public dept in 2009 amounted to 35 %, according to the CIAs World Fact book (CIA, 2009). Moreover, the industrial production growth rate is declining (-1 % in 2009). Cubas main export partners are China (25 %), Canada (20%), Spain (6%) and the Netherlands (4.53%), importing primarily sugar, nickel, tobacco, fish, medical products, citrus and coffee. The value of Cubas exports in 2009 was 2.458 billion U.S. $. With imports in comparison being 4 times higher, Cuba runs a steeply negative trade balance. According to the World Fact Book, Cuba mainly imports food, machinery and equipment and chemicals. Summing up, the Cuban economy finds itself in a critical situation and economic reform are utterly necessary to guarantee stable economic growth. Unfortunately, data about Cuba from this years competitiveness index cant be presented here, since neither the World Economic Forum nor the IMF process the Cuban case. 4.2 Doing business in Cuba Since Canada is one of Cubas main trade partners, the Canadian Foreign Ministry releases information on the Cuban business climate as well as import regulations. For U.S. companies, doing business in Cuba is even more complicated as the international relationship still suffers from the trade embargo of the 1960s. Firstly, it turns out that importing can only be undertaken by Cuban government entities and joint ventures holding permits for the specific goods in question. Certain Agents and intermediaries are allowed to handle certain goods, but due to the political regime, these persons are not allowed to import on their own (Government of Canada, 2009). Furthermore, to obtain import licences, Canadian businesses will most likely see themselves forced to cooperate with Cuban partners first before any governmental approval will be issued. For about 4.500 products and commodities Cuba applies its MFN tariff, which is 10.4%. However, for some well protected commodities, Cuba applies a 30 % import tariff. According to the Canadian Government, Entities with foreign partners may be granted duty free status for some or all of those products as part of their economic association or joint venture agreement (2009). Mostly, this clause applies to members of the Latin American Integration Association (ALADI) in which Canada is not taking part. Canadian exporters are obliged to hire Cuban custom brokers for the carrying out of custom formalities. Moreover, it is essential to fully comply with all regulation and elaborate documentation is furthermore of great importance. According to the Canadian Government, Seemingly minor discrepancies can lead to confiscation of improperly imported goods. Although compliance with these regulations is technically the responsibility of the importer or the agent handling consignment shipments, careful documentation on the part of the shipper will reduce errors and delays (2009). Also, exporters have to comply with labelling, sanitary, phytosanitary and product safety standarts. What is more, due to Cuban investment law, foreign companies will find it difficult to set up representative offices and subsidiaries in Cuba since they are expected to establish a substantial trade relationship with Cuba for at least three years, before being allowed to establisha presence in Cuban national territory (Canadian Government, 2009). Regardless of these restrictions, consignment sales sales in which goods cross the border and are still considered to be owned by the exporter are possible as long as they are covered by a contract for sales of merchandise imported on consignment. Summing up, one can see that doing Business in Cuba is complicated in most of the instances we have addressed here. The Cuban government has to restructure its economy and especially open it up for foreign investment since foreign investment is one crucial factor for economic growth of a country.

Approaches And Methods Of Training Management Essay

Approaches And Methods Of Training Management Essay Training is a systematic process to develop knowledge, skill and attitude from learning experience to achieve maximum performance in an activity (Buckley and Caple 2007). Learning and education both are different but important for organisations. Learning is the process of acquiring knowledge, skills and attitudes by experience, reflection, study and instruction. While education is a series of activities which enables to develop knowledge, skills, values and understanding that allow a broad range of problem solving and analysis (Buckley and Caple, 2007). Training plays an effective role in different kinds of learning and development. The rapid change in global environment pressurized all organisations to enhance their focus on customers. That time of producing, conceiving and marketing products dropped as organisations adopted new ways to compete in the market (Capelli et al, 1997 cited in Rod and Collin, 2000). The successful organisations should have highly skilled and committed employees who can survive in this era of competition. Workers learn to enhance their performance and want to be more competent in their roles. Work place learning is very important after education to develop a long career (Legge, 2005). Organisations can get competitive advantage upon rivals through hiring skilled staff and through better training programs. According to Brookes (1995) organisations have to support training department and the least step is to appoint a dedicated staff in personnel for this task. It is important to make a training policy for the company and allocate specific budget for training. This all points to the fact that training and development is a prime business activity which has serious objectives and requires serious management (Nilson, 2003). There are a number of benefits for individuals as a consequence of training procedures; relative to the present positions, individuals may see job satisfaction increase as a result of undergoing training (Clements and Jones, 2002). Intrinsic satisfaction may result from being able to perform a task to a higher standard, where as extrinsic satisfaction may come as a result of increased job skills, which may lead to greater earnings, career prospects and promotion possibilities (Buckley and Caple, 2007). An obvious benefit to individuals is the change from their regular work pattern, which can have recreational benefits as well, for example, less boredom and greater variety during work (Buckley and Caple, 2007). Some of the benefits of training, from an organisations perspective included higher employee performance, productivity and possibly acting as a source of competitive advantage. There a number of other potential benefits to organisations of successful training procedures; decrease in wastage and increased productivity; lower labour turnover, saving costs (Rae, 2000); higher customer satisfaction, possibly leading to greater sales; shorter learning cycles for employees, reducing expenditure (Washington, 1995); lower absenteeism and fewer accidents (Buckley and Caple, 2007). The innovations in technology brought speedy change in business environment. Training plays a critical role for individuals at work to manage careers development and organisational change. Training and learning is a pivotal business function that maximise profit and the companys long term health (Nilson, 2003, P.2). The implementation of training plan depends on a lot of factors including the proper identification of training need and individuals recognition for training need (Reid et al, 2004). Proper learning and best utilization of resources equally effect on effective outcomes (Bramley, 1986). 2.1 Approaches to Training There are a number of approaches to train employees; the systematic approach is widely adopted in the organisations. However, the reactive and proactive approaches to training are still in use by some organisations. 2.1.1 Reactive Approach The reactive approach to training tends to be an approach adopted predominantly by less developed and/or smaller organisations; this does not tend to involve pre-planning, but can be seen as spontaneous to a certain degree (Legge, 2005). This approach to training turn into action when business performance and productivity falls or seems to drop beyond a suitable level; the organisation then attempts to configure training to counteract this downturn. In comparison, to the other approaches to training, the financial layout is therefore relatively small, since training expenditure is effectively being used when it is needed (Lundy and Cowling, 1996). This approach suits smaller organisations whose finances cannot afford comprehensive training programmes which are systematically planned and administered (Lundy and Cowling, 1996). 2.1.2 Proactive Approach The proactive approach to training is effective where Organisations are actively seeking ways for training to improve their business performance; when Organisations are looking not only to improve their current training methods, but also opportunities to extend training to wider segments of their organisation. Such an approach tends to be adopted by organisations that see training as important part of their business model and essential to gaining a competitive advantage (Schuler and Jackson, 2007). 2.1.3 Systematic Approach The Systematic Approach to training is by far the approach which has been given the most attention to in literature and research (Raffe, 2004- Bratton and Gold, 2003). It is also the theoretical approach which most organisations adopt thus it is often argued it is the most logical and most successfully effective in a practical sense (Raffe, 2004). The systematic approach to training effectively revolves around dividing the training process and procedures into stages and sub-stages. McNamara (2008) identifies the stages of basic systematic approach to training which are analysis, design, develop, implement and evaluate. Analysis: This stage involves the organisations needs and identification of training goals, and the strategies to equip trainees with knowledge and skills to meet the organisations objectives. Usually this stage also includes the identification of training timings and participants. Design: This stage involves making training procedures and systems that can allow objectives to be met and a system that learners and trainers can implement to meet the learning goals. This stage involves identifying learning objectives, required facilities, funding, etc. Thus planning skills are utilised heavily here in this stage (McNamara, 2008). Develop: This stage involves obtaining the necessary resources which will be required to put together the training package designed (McNamara 2008); for example, identifying premises, materials and resources which will be required and progressing to obtain and organise them. Implement: Implementation stage tends to involve putting the training package designed into practice. It includes a variety of tasks ranging from delivering the training, clarifying training materials, administrative processes and conducting a final evaluation. This phase can include administrative activities, such as copying, scheduling facilities etc. Evaluate: This stage involves assessing training prior to, during and after its duration. It can also involve a wide variety of tasks from testing attendees on what was taught during the training, to asking their opinions on the training (McNamara, 2008). 2.2 Methods of Training The training delivery methods can be divided into cognitive and behavioural approaches. Cognitive methods provide information orally or in written form, demonstrate relationships among concepts, or provide the rules for how to do something. They stimulate learning through their impact on cognitive processes and are associated most closely with changes in knowledge and attitudes. The lecture, discussion, e-learning and case studies are cognitive methods. The cognitive methods of training can influence skill development (referenceforbusiness.com). The behavioural methods allow the trainee to practice behaviour in a real or simulated fashion. They stimulate learning through experience and are best at skill development and attitude change. The equipment simulators, business games, role plays, the in-basket technique, behaviour modelling and, to some extent, case studies are behavioural methods. Both behavioural and cognitive methods can be used to change attitudes. On-the-job training is a combination of many methods and is effective at developing knowledge, skills, and attitudes. Source: www.referenceforbusiness.com 2.3 Types of training Training broadly categorized into two types i.e. pre-service training and in-service training. Pre-service training is more academic in nature and is offered by formal institutions following syllabuses for certain period to offer a formal degree or diploma. In-service training, on the other hand, is offered by the organisation from time to time for the development of employees skills and knowledge. 2.3.1 Pre-service Training Pre-service training is a process through which individuals are made ready to enter a certain kind of professional job. They have to attend regular classes in a formal institution and need to complete a definite curriculum and courses successfully to receive a formal degree or diploma. They are not entitled to get a professional job unless they receive a certificate, diploma, or degree from the appropriate institution. 2.3.2 In-service Training In-service training is a process of staff development for the purpose of improving the performance of an incumbent holding a position with assigned job responsibilities. It promotes the professional growth of individuals. It is a program designed to strengthen the competencies of extension workers while they are on the job (Malone, 1984). In-service training is a problem-centred, learner-oriented, and time-bound series of activities which provide the opportunity to develop a sense of purpose and increase capacity to gain knowledge and mastery of techniques. In-service training may be categorized into five different types: induction or orientation training, foundation training, on-the-job training, refresher or maintenance training, and career development training. Induction or Orientation Training: Induction training is given immediately after employment to introduce the new staff members with their positions. It begins on the first day the new employee is on the job (Rogers Olmsted, 1957). Induction training for all employees should develop an attitude of personal dedication to the service of people and the organisation. This kind of training supplements whatever pre-service training the new personnel might have had (Halim and Ali, 1988) concerning the characteristics of a new employee. According to Van Dersal (1962) when people start to work in an organisation, they are eager to know what sort of outfit they are getting into, what they are supposed to do, and whom they will work with. They are likely to be more attentive and open-minded than experienced employees. In fact, the most favourable time for gaining employees attention and for moulding good habits among them is when they are new to the job. Foundation Training: Foundation training is in-service training which is also appropriate for newly recruited employees. Besides technical competence and routine instruction about the organisation, every staff member needs some professional knowledge about various rules and regulations of the government, financial transactions, administrative capability, communication skills, leadership ability, coordination and cooperation among different institutions, report writing etc. Foundation training is made available to employees to strengthen the foundation of their service career. This training is usually provided at an early stage of service life. Maintenance or Refresher Training: Refresher training is offered to update and maintain the specialized subject-matter knowledge of the employees. Refresher training keeps the specialists, administrators, subject-matter officers, extension supervisors, and frontline workers updated and enables them to add to the knowledge and skills they already have. Maintenance or refresher training usually deals with new information and new methods, as well as review of older ones. This type of training is needed both to keep employees at the peak of their possible production and to prevent them from getting into a rut (Van Dersal, 1962). On-the-Job Training: The On-the Job training is ad hoc or regularly scheduled training, such as fortnightly training under the training and visit system .It is provided by the superior officer or the subject specialists to the field staff. This training is generally problem or technology oriented and includes formal presentations, informal discussion, and opportunities to try out new skills and knowledge in the specific field. The administrator or subject specialist of each department must play a role in providing on-the-job training to the staff while conducting day-to-day normal activities. Career or Development Training: This type of in-service training is designed to upgrade the knowledge, skills, and ability of employees to help them to perform greater responsibilities at higher positions. The career development training is arranged departmentally for successful employees at all levels, for their continuing education and professional development. According to Malone (1984) the extension services that provide the opportunity for all staff to prepare a plan for career training will receive the benefits of having longer tenured and more satisfied employees, which increase both the effectiveness and efficiency of an extension service. Malone (1984) also stated that career development is the act of acquiring information and resources that enables one to plan a program of lifelong learning related to his or her work life. The career or development training plays a key role when a junior staff member is promoted at a higher level. 2.4 Effectiveness of Training It can be difficult to assess how effectively an organisations training processes are (Price, 2007); people often see this will be represented by organisation profitability and its efficiency (Lundy and Cowling, 1996); however, such increases are difficult, since they can attributed to a variety of factors including increases in product demand, economic/political factors and demographic changes. Despite this, it is important that firms measure training effectiveness for a number of reasons. The most recognisable and frequently used model for measuring the effectiveness of training programs was developed by Donald Kirkpatrick in 1950(Bratton and Gold 2003; Kirkpatrick, 1959; Price, 2007). It has been adapted and changed by different academics, although the basic structure has well stood the test of time (Kirkpatrick, 1998). The basic structure of Kirkpatricks four-level model is illustrated below. Source: (ftknowledge.com) Fig 2: Kirkpatrick Model for Evaluating Effectiveness of Training Programs Evaluating each level of the model can highlight the strengths and weaknesses of any particular training program or procedure; despite the progressive level composition of the model, Kirkpatrick (1998) indicates that it is still possible for a training program to be effective at the higher levels while being ineffective at the lower levels; e.g. organisational performance (level 4) may be improving as a result of the training yet employees may not have an optimal attitude or reaction to it (level 1). This view is supported by previous studies (Stokking, 1996). It is necessary to explain and discuss each component of the model in detail. 2.4.1 Reaction Reaction evaluates how employees felt about the training (Kirkpatrick, 1998). It is necessary for training programme to be effective, that employees have a positive reaction to training. This may be in the form of enjoying or finding training interesting. If employees do not react or have positive attitudes towards the training, it is likely to affect its efficiency (Armstrong, 2006). It is important to evaluate how employees feel about training whether they like or dislike it and what they feel can be add to improve their reactions. Further aspects of this component which may need to investigated, involve assessing whether delegates felt the training was an effective use of their time, whether they felt the training was relevant and were they comfortable with and its different aspects (Kirkpatrick, 1998). This is sometimes done through feedback sheets, where the delegates are given the opportunity to convey their views (Kirkpatrick, 1998). 2.4.2 Learning The learning is the evaluation of the increase in knowledge prior to and after the training procedure (Kirkpatrick, 1959). The effectiveness of this component is dependent on whether employees learned what they were intended to be taught and to what degree did their knowledge increased. This can be measured through assessments prior to and after a training session taken place, although again a questionnaire can also be given to attendants monitoring whether they personally feel their knowledge has increased (Brookes, 1995). 2.4.3 Behavioural Change The behavioural change is the extent of applied learning when back on the job (Kirkpatrick, 1998), the implementation of any learning which may have taken place. This is necessary for the organisation to realize the practical benefit of the training undertaken by their employees. Measuring strongly revolves around questioning employees on whether they felt different and more prepared for their job, as a result of their training (Mckenna and Beech, 2002). Furthermore, delegates should also be questioned on the fact whether the change when working is noticeable and whether they have been utilizing the relevant skills learned, as a result of the training undertaken (Lundy and Cowling, 1996). 2.4.4 Organisational Performance The organisational Performance is the effect on the business environment, made by their trainee upon completion of their training (Kirkpatrick, 1998). It is typical measure in terms of key performance indicators such as volumes, values and percentages and other quantifiable aspects such as turnover, attrition, quality and profits. The measuring of organisational performance resulting directly from training can be a tedious and complex process. Kirkpatrick (1998) says this cannot be measured accurately without substantial investigation since external factors, away from the training, will have a huge impact on the aspects discussed. Investigating this is limited to questioning senior managerial personnel on the organisations performance in terms such aspects and how much of the improvements/falls can be given to the actual training (Lundy and Cowling, 1996). The weakness with this approach lies in the reliance on honesty of the managerial personnel questioned, as well as their judgment . The ideal would be to involve the wide variety of relevant quantitative figures (Kirkpatrick, 1998). 2.5 Criticism on Kirkpatrick Model Kirkpatricks model for evaluation of training is well-established and in widespread use. Many organisations find it useful and since its publication no better alternative has been suggested. It is however, some criticisms relating to the model itself and the assumptions upon which it is applied. There are some criticisms of Kirkpatricks model for evaluating effectiveness of training that have implications for the ability of training evaluation to deliver benefits in the interests of organisations. These include the incompleteness of the model, the assumption of causality, and the assumption of increasing importance of information. The model is incomplete: The Kirkpatricks model for evaluating effectiveness of training gives an oversimplified view of training effectiveness that does not consider individual or contextual influences in the evaluation of training. A broad stream of research over past two decades (Ford Kraiger, 1995; Salas Cannon-Bowers, 2001; Tannenbaum Yukl, 1992) has documented the presence of a wide range of organisational, individual, and training design and delivery factors that can influence training effectiveness before, during, or after training. This research has led to a new understanding of training effectiveness that considers characteristics of the organisation and work environment and characteristics of the individual trainee as crucial input factors (Cannon-Bowers, Salas, Tannenbaum, 1995). The contextual factors such as the learning culture of the organisation (Tracy, Tannenbaum, Kavanaugh, 1995), organisational or work unit goals and values (Ford, Quinones, Sego, Sorra, 1992), the nature of interpersonal support in the workplace for skill acquisition and behaviour change (Bates, Holton, Seyler, Carvalho,2000) the climate for learning transfer (Rouiller Goldstein,1993), and the adequacy of material resources have been shown to influence the effectiveness of training process. The Kirkpatricks model assumes that examination of these factors is not essential for effective evaluation of training. The assumption of causal linkages: Kirkpatricks model for evaluating effectiveness of training assumes that the levels of criteria represent a causal chain such that positive reactions lead to greater learning, which produces greater transfer and subsequently more positive results. Although Kirkpatrick is vague about the precise nature of the causal linkages between training outcomes, his writings do imply that a simple causal relationship exists between the levels of evaluation (Holton, 1996). In one of Kirkpatricks more recent publications he stated that if training is going to be effective, it is important that trainees react favourably and that without learning, no change in behaviour will occur (Kirkpatrick, 1994), research, however, largely failed to confirm such causal linkages. Incremental importance of information: Kirkpatricks model for evaluating effectiveness of training assumes that each level of evaluation provides data that is more informative than the last (Alliger Janak, 1989). This assumption has produced the perception among training evaluators that establishing level four results will provide the most useful information about training process effectiveness. Although there are some criticisms upon Kirkpatrick model for evaluating training effectiveness but this model is well suited in addressing the objectives of this research, which significantly focus on assessing if training problems exist, as well as training effectiveness and identifying potential improvements within bank. 2.6 Problems of Training Evaluation There are many problems which exist and can occur that can hinder the training process; these can vary strongly dependent on factors such as organisation type, training type, etc (Schuler and Jackson, 2007). To point out some of the common problems of the training process, the researcher has opted to use the components of Kirkpatricks model. Reaction: The common problem is that training may be boring, uninteresting and negatively seen by the employees; a positive reaction perception of training in the view of employees is important to the effectiveness of training. As with development aspects in general it is usually necessary for people to enjoy them or at the very least not dislike them, to be impressionable (Noe, 1998). Learning: The learning styles of employees can strongly affect the how much they can learn during training sessions. Honey and Mumford (1989) identify four styles of learning which outline ways to which an individual may be favoured to learning; these are activists, reflectors, theorists and pragmatists. Behavioural Change: Behavioural Change can be affected in numerous ways; this is the aspect which determines the extent to which the practical benefit of training is realized. The common problem which can prevent behavioural change being realized is that of a lack of relevance (Kirkpatrick, 1959). If the training undertaken by employees is not relevant to the skills required in their job then they are unlikely to change to a more effective way of working. The other main problems of effective behavioural change lie in the ability of the individuals to transfer any new skills they have learnt during training (Gibb, 2007). Organisational Performance: Training however successful at variety of levels may not necessarily translate into improved organisational performance; the variety of external factors affecting an organisations performance as well as individuals performance, can mean that even if the training is perfectly designed it may not lead to greater performance on a business level (Rod and Colin, 2000). There is fact that many training programs are focused on informing trainees as opposed to directly intending to improve their job performance (Gibb, 2007). 3.0 Research Methodology To obtain maximum output researcher has to devise an appropriate research strategy which will be beneficial for accurate results while analysing the data. Author elaborates the research methods and approaches which will be used in this investigation. An effective research can only conducted by using relevant strategies out of many and each of them can be used for exploratory, descriptive and explanatory research (Saunders, 2007). According to Deetz (1996) different modes of research allow us to understand different phenomena and for different reasons. The methodology chosen depends on what researcher is trying to do rather than a commitment to a particular paradigm (Cavaye, 1996). The methodology used must match the particular objectives of research. Different phenomena may require the use of different or a set of methodologies. By focusing on the phenomenon under examination, rather than the methodology, researchers can select appropriate methodologies for their enquiries (Falconer Mackay, 1999). 3.1 Research Paradigms The term paradigm is introduced by the Thomas Kuhn, he characterizes a paradigm as: An integrated cluster of substantive concepts, variables and problems attached with corresponding methodological approaches and tools (Kuhn, 1962).In the past century, different paradigms have introduced due to the remarkable growth in the research. There are two main paradigms to verify the theoretical propositions, i.e. positivism and anti-positivism. Positivism comprises on usage of natural science approach. Researcher prefers to work along with an observable social reality which results in making law similar to natural scientists (Remenyi et al, 1998,). This is useful for quantitative research with logics. An important factor of positivism approach is that research can go as far as possible and in a value free manner (Saunders, 2007). Although positivistic paradigm continued to influence educational research for a long time in the latter half of the twentieth century, it was criticized due to its lack of regard for the subjective states of individuals. It regards human behaviour as passive, controlled and determined by external environment. Hence human beings are dehumanized without their intention, individualism and freedom taken into account in viewing and interpreting social reality. According to the critics of this paradigm, objectivity needs to be replaced by subjectivity in the process of scientific inquiry. This gave rise to anti-positivism or naturalistic inquiry. Anti-positivism emphasizes that social reality is viewed and interpreted by the individual according to the ideological positions they posses. The anti-positivists believe that reality is multi-layered and complex (Cohen et al, 2000) and a single phenomenon are having multiple interpretations. Positivism emphasizes objectivist approach to studying social phenomena and gives importance to research methods focusing on quantitative analysis, surveys, experiments etc. Similarly, anti-positivism stresses on subjectivist approach to studying social phenomena attaches importance to a range of research techniques focusing on qualitative analysis like personal interviews, participant observations, account of individuals, personal constructs etc. Other research paradigms further exist in the form of Interpretivism and Realism. Interpretivism is based on beliefs of people and interprets the meaning which they perceive. This emphasises creating research among people than objects. The interpretivist approach is significant if research is conducted in the fields of marketing, organisational behaviour and human resource management (Saunders, 2007). Realism comprises on the fact that reality is independent of the mind. It is totally based on reality rather than idealism. The underlying assumption of realism is that senses show us reality and that is truth. In other words, objects have their existence and thats the reality (Saunders, 2007). Both qualitative and quantitative approaches are utilized when adopting a realism stance (Maylor and Blackmon, 2005). The researcher sees combination of both Interpretivist and Realism stances the most appropriate way to approach this study. The interpretive stance is essential to establish the effectiveness of training activities within the bank while the realism philosophy is important to allowing the other research objectives to be met. According to Easterby Smith it is rare for research to be conducted from a single philosophical perspective, a combination of stances is mostly needed to allow research objectives to be met (Easterby Smith et al, 2002). 3.2 Qualitative and Quantitative Methods Both qualitative and quantitative methods are to be used in this research, thus it is important that both of these to be discussed. Qualitative Methods: Qualitative research methods look more at human perceptions of issues. They tend to offer an insight and deeper, broader understanding of matters, rather than more clinical, concise quantitative approach (Collis and Hussey, 2003).Such methods uncover meanings and the variety of human response. Because they view issues with a social context methods tends to be unstructured and possesses an element of authenticity (Jankowicz, 2005). The qualitative methods which researcher intends to use primarily are semi-structured interviews. Quantitative Methods: Quantitative methods look at facts and figures that can be measured in some way to achieve a quantified, or generalized in terms of their relationship with each other (Collis and Hussey, 2003).The techniques in this type of research include experiments (in which a hypothesis may be tested out under controlled conditions), surveys and questionnaires. The questions are closed ended and structured interviews. 3.3 Primary Research Primary data is collected data, which has specifically being done to answer questions passed by the current research objectives. There are many means of obtaining primary data such as observation, surveys, interviews and questionnaire. The researcher intends to use questionnaires, semi-structured interviews and observation for primary data collection in this research. One of the main advantages of primary data is the availability of up to date data so the credibility of the data usually cannot be questioned (Collis and Hussey, 2003) while the major disadvantages of primary data collection is that it can be a difficult process, especially in terms of time consumption as finding participant, setting up the actual research process and then analyzing the results usually takes up a lot of time (Collis and Hussey, 2003

The Foreign Miners in the American Gold Rush Essay -- American History

The Foreign Miners in the American Gold Rush One Saturday night, a mob of masked men, who numbered forty to sixty, approached a small house. Arriving at the house, they dragged two slumbering men from their bunks and hustled them from the house, without even allowing them to put on their clothes, and started to kick and beat them. One of the invaders drew his pistol and shot at one of the victims. The bullet pierced the body of the man and inflicted a terrible wound. Both men who were attacked that night died. This event occurred in Rico, a camp in the San Juan Mountains of Colorado on May 13, 1882. The two Chinese miners that inhabited the village were kicked, cuffed, and dragged over the ground by the hair of their heads, clubbed with pistols and sticks by white men who wanted to run the Chinese out of town. Six Chinamen who resided next door were treated in much the same manner as their friends were that night. Mongolians of the village were thrown into the icy water half-naked. This was nothing new in the west, since the non-traditional miners, especially Chinese miners, were the victims of American racial prejudice from the beginning of the Gold Rush. When the Gold Rush struck the American continent, waves of people came to the west. One might think that only white people participated, but there were lots of miners who came from various places around the world. Their life and experiences were not widely known, whereas those of the white miners were pretty well known. Non-traditional miners certainly had much harder experiences than the white miners did. Many of them were discriminated against, abused and even killed. Looking into the life and experiences of the non-traditional miners, the American Gold Rush period w... ...du/~agf2/history391/nativism.html. Gerstaecker, Friedrich. California Gold Mines. NP: Greenwood Press, 1946. "Gold Fever Prospecting-Sonoran Arrastra." Gold Rush. 1998. 18 Apr. 2002. http://www.museumca.org/goldrush/fever13-ar.html. Hine, Robert V., and John Mack Faracher. The American West: A New Interpretive Story. Yale University, 2000. Lewis, Marvin. The Mining Frontier. Oklahoma: the University of Oklahoma Press, 1967. Milner, Clyde A, ed. The Oxford History of the American West. New York: Oxford University Press, 1994. Nugent, Walter. Into the West: the Story of Its People. New York: Alfred A Knopk, 1999. Sylva, Seville A. A Thesis-Foreigners in the California Gold Rush. California: University of Southern California. 1932. "The People Vs. Hall." Ancestors in the Americas. 1998. 10 Apr. 2002. http://www.cetel.org/1854_hall.html.

Post Traumatic Stress Disorder in Air Crash Victims :: Post-traumatic stress disorder, PTSD

Accidents occur unexpectedly and the effects they bring about may be severe depending on their nature. The effects that are brought about by accidents vary in severity, and duration within which they affect individuals either directly or indirectly attached to the incidence. Air crash is one of the most fatal accidents and in most of the reported cases; there have been more casualties than survivors. The effects that are brought about by an air crash may be classified as either physical or psychological. In the physical effects, air crash brings about death, disability and injuries. The effects from air crash are determined by among other things, the cause of the crash, the altitude and its speed at the time of crash. In addition, whether the aircraft catches fire or not after crash is another issue that determines severity of air accidents. There have been situations when survivors of air crash succumbed to fires erupting upon hitting the ground. Since the crash limits mobility, most of the victims succumb helplessly before the arrival of rescue teams. Among the different categories of persons affected by air crash, there are the survivors, family members and friends, members of the rescue team and the health practitioners handling the victims. While the survivors may be affected by both physical and psychological aspects, most of the indirect victims suffer from psychological problems. After crashing, there are individuals who manage to remain arrive and in some instances leave the airplane before fire eruption. These persons are mostly partially hurt but get to experience the others burning helplessly inside the aircraft. The experiences by either direct or indirect victims lead to development of Post Traumatic Stress Disorder (Epstein, Fullerton & Ursano 1998). This is a serious condition that affects persons having disturbing pasts, and who might have experienced shocking incidences. The problem is manifested within an individual after the scenes from past experiences starts top recur, and they disturb the peace and rational aspect in an individual. Such persons may start to hallucinate, experience strange and horrifying dreams and if not monitored in time, the disease can get worse. Physical defects that may be experienced after air crash differ according to the impact and the nature of the crash. While to some it may be worse, there are those who manage to escape with slight injuries. The survivors of air crash first develop stress and depression, coupled with fear.

Agency conflicts

The genius of public corporations teems from their capacity to allow efficient sharing or spreading of risk among many investors, who appoint a professional manager run the company on the behalf of shareholders. However, the public corporation has a key weakness – namely, the conflicts of Interest between managers and shareholders. The separation of the company ownership and control, which Is especially prevalent where corporate ownership Is highly diffused, gives rise to possible conflicts between shareholders and managers.In theory, shareholders elect the board of directors of the company, which in turn ire's managers to run the company for the Interests of shareholders. Managers are supposed to be agents working for their principals, that Is, shareholders, who are the real owners of the company. In a public company with diffused ownership, the board of directors is entrusted with the vital tasks of monitoring the management and safeguarding the interests of shareholders. Un fortunately, with diffused ownership, few shareholders have strong enough incentive to incur the costs of monitoring management themselves when the benefits from such monitoring accrue to all shareholders alike. The benefits are shared, but not the costs. When company ownership is highly diffused, this â€Å"free-rider† problem discourages shareholder activism. As a result, the interests of managers and shareholders are often allowed to diverge. With an ineffective and unmotivated board of directors, shareholders are basically left without effective recourse to control managerial self-dealings.Recognition of this key weakness of the public corporation can be traced at least as far back as to Adam Smith's Wealth of Nations (1 776), which stated: The directors of such Joint-stocks companies, however, being the managers rather of other people's money than of their own, it cannot well be the partners of a private cooperator frequently watch over their own†¦. Negligence and p rofusion, therefore, must always prevail, more or less, in the management of the affairs of such a company.Agency theory in a formal sense originated in the early asses, but the concepts behind it have a long and varied history. Among the influences are property-rights theories, organization economics, contract law, and political philosophy, including the works of Locke and Hobbes. Some noteworthy scholars involved in agency theory's roommate period in the asses included Airmen Lucian, Harold Demesne, S. A. Ross and the famous paper â€Å"Theory of the Firm: Managerial Behavior, Agency Costs, and Ownership Structure. † of Michael Jensen and William Neckline.In an ideal situation the manager (or entrepreneur) and the investors sign a contract that specifies how the manager will use the funds and also how the investment returns will be divided between the manager and the investors. If the two sides can write a complete contract that specifies exactly what the manager will do un der each of all possible future unforeseen events, there will be no room for any inflicts of interest or managerial discretion. Thus, under a complete contract, there will be no agency problem. However, it is practically impossible to foresee all future contingencies and write a complete contract.This means that the manager and the investors will have to set up the control rights to make decisions under those contingencies that are not specifically covered by the contract. Because the outside investors may be neither qualified nor interested in making business decisions, or if there will be too many of investors, the manager often ends up acquiring most of this residual control right. The investors supply funds to the company but are not involved in the company's daily decision making. As a result, many public companies come to have â€Å"strong managers and weak shareholders. The agency problem refers to the possible conflicts of interest between self – interested managers as agents and shareholders of the firm, who are the principals. In the described circumstances the manager will end up with residual control rights to allocate investors' funds, and sometimes the disclosure of investment channels may not be clear and full. So the investors are not longer assured of achieving fair returns on their funds, in other words the agency problem lies in a loss of trust for the manager by the shareholders of the company.In the following paper examples of the agency problem, proposed ways of solving and controlling methods and their analysis will be presented and discussed. Chapter 1 . Prerequisites of the agency problem and different approaches to solving it 1. 1 . How we detect an agency problem Agency theory suggests that the firm can be viewed as a combination of different relationships – some of them well and others can be loosely defined – between resource holders. The primary agency relationship in business is between stockholders and mana gers.The relationships are not necessarily harmonious; indeed, the agency theory is concerned with so-called agency conflicts, or conflicts of interest between agents and principals. This has implications for, among other things, corporate governance and business ethics. When the agency problem occurs sustain an effective agency relationship, those will be discussed a bit later. So what can be signals for managerial self-interested behavior? Sometimes, the manager simply steals investors' funds.Alternatively, the manager may use a more pesticides scheme, setting up an independent company that he owns and diverting to it the main company's cash and assets through transfer pricing. For example, the manager can sell the main company's output to the company he owns at below market prices, or buy the output of the company he owns at above market prices. Some oil companies are known to sell oil to manager-owned trading companies at below market prices and not always bother to collect the bills.Self- interested managers may also waste funds by undertaking unprofitable projects that benefit themselves but not investors. For example, managers may allocate funds the ay to take over other companies and overpay for the targets if it serves their private interests. Needless to say, this type of investment will destroy shareholders' value. What is more, the same managers may take anti-takeover measures for their own company in order to secure their personal Job and perpetuate private benefits.In the same vein, managers may resist any attempts to be replaced even if shareholders' interests will be better served by their resignation. These managerial entrenchment efforts are clear signs of the agency problem. One of the clearest signals for the existence of the agency problem can be management of free cash-flow. High level of free cash-flows are usually presented in companies on a maturity stage of life cycle, with a low level of growth, so those free cash?flows are supposed to be distributed as dividends or should be invested in some projects, both of the actions can probably increase the firm's value.But there are a few important incentives for managers to retain cash flows. First, cash reserves provide corporate managers with a measure of independence from the capital markets, insulating them from external scrutiny and discipline. This will make life easier for managers. Second, growing the size of the company via retention of cash tends to have the effect of raising managerial compensation. As is well known, executive compensation depends as much on the size of the company as on its profitability, if not more.Third, senior executives can boost their social and political power and prestige by increasing the size of their company. Executives presiding over large companies are likely to enjoy greater social prominence and visibility than those running small companies. Also, the company's size itself can be a way of satisfying the executive ego. Consequ ently, managers of those companies either sit n a huge bunch of money, or bound to invest in a lot of not so successful projects or to take over some other firms in attempt to diversify and not to pay dividends or at least too high dividends.In the contrast in high-growth industries, such as biotechnology, financial services, and pharmaceuticals, where companies internally generate funds, which fall short of profitable investment opportunities, managers are less likely to waste funds in unprofitable projects. After all, managers in these industries need to have a â€Å"good reputation†, as they must repeatedly come back to capital markets for funding. Once the managers of a company are known for wasting funds for private benefits, external funding for the company may dry up quickly.The managers in these industries thus have an incentive to serve the interests of outside undertaking their â€Å"good† investment projects. Generally, the heart of the agency problem is the conflicts of interest between managers and the outside investors over the disposition of free cash-flows, so in the following part I would like to present different approaches on how owners of the firm can hedge and maintain managers of the firm to lower the risk of agency problem ND, subsequently, agency costs. 1. 2.Remedies of agency problem Obviously, it is a matter of vital importance for shareholders to control the agency problem; otherwise, they may not be able to get their money back. It is also important for society as a whole to solve the agency problem, since the agency problem leads to waste of scarce resources, hampers capital market functions, and retards economic growth. Several main governance mechanisms exist to manage or completely remove an agency problem: 1. Board of directors 2. Incentive contracts 3. Concentrated ownership 4. Debt 5.Overseas stock listings 6. Market for corporate control (takeovers) In most of the countries, shareholders have the right to elect the board of directors, which is legally charged with representing the interests of shareholders. If the board of directors remains independent of management, it can serve as an effective mechanism for curbing the agency problem. For example, studies showed that the appointment of outside directors is associated with a higher turnover rate of Coos following poor firm performances, thus curbing managerial entrenchment.In the same vein, in a study of corporate governance in the United Kingdom, Daddy and McConnell report that the board of directors is more likely to appoint an outside CEO after an increase in outsiders' representation on the board. But due to the diffused ownership structure of the public company, management often gets to choose board members who are likely to be friendly to management. The structure and legal charge of corporate boards vary greatly across countries.In Germany, for instance, the corporate board is not legally charged with representing the interests of shareholders. Rather, it is charged with looking after the interests of stakeholders (e. G. , workers, creditors, etc. ) in general, not Just hardliners. In Germany, there are two-tier boards consisting of supervisory and management boards. Based on the German extermination system, the law requires that workers be represented on the supervisory board. Likewise, some U. S. Companies have labor union representatives on their boards, although it is not legally mandated.In the United Kingdom, the majority of public companies voluntarily abide by the Code of Best Practice on corporate governance recommended by the Catbird Committee. The code recommends that there should be at least three outside directors and that the board chairman and the CEO should be different individuals in USA there are a lot of examples of CEO and chairman being the same individual, what is in author's opinion, can be one of the most crucial factors of top-managerial frauds).Apart from outside directors, separati on of the chairman and CEO positions can further enhance the independence of the board of directors. In Japan, most welfare of the keiretsu to which the company belongs. As previously discussed, managers capture residual control rights and thus have enormous discretion over how to run the company. But they own relatively little of the equity of the company they manage. To the extent that managers do not own equity shares, they do not have cash flow rights.Although managers run the company at their own discretion, they may not significantly benefit from the profit generated from their efforts and expertise. In the end of sees researches showed that the pay of American executives changes only by about $3 per every $1,000 change of shareholder wealth; executive pay is nearly insensitive to changes in shareholder wealth. This situation implies that managers may not be very interested in the minimization of shareholder wealth. This â€Å"gap† between managerial control rights and cash flow rights may enlarge the agency problem.When professional managers have small equity positions of their own in a company with diffused ownership, they have both power and a motive to engage in self-dealings. Aware of this situation, many companies provide managers with incentive contracts, such as stocks and stock options, in order to reduce this gap and align better the interests of managers with investors'. With the grant of stocks or stock options, managers can be given an incentive to run the company in such a way that enhances shareholder wealth as well as their own.Against this backdrop, incentive contracts for senior executives have become common among public companies in the United States. As will be shown in the second chapter of the paper, however, senior executives can abuse incentive contracts by artificially manipulating accounting numbers, sometimes with the connivance of auditors (for example, Arthur Andersen's involvement's with the Enron debacle), or by alte ring investment policies so that they can reap enormous personal benefits.It is thus important for the board of directors to set up an independent compensation committee that can carefully design incentive contracts for executives and regularly monitor their actions, and these incentives contracts should be composed in accordance to the characteristics of firm's operational activity, as will be demonstrated in the third part of the chapter. An effective way to mitigate an agency problem is to concentrate shareholdings. If one or a few large investors own significant portions of the company, they will have a strong incentive to monitor management.For example, if an investor owns 51 percent of the company, he or she can definitely control the management (he can easily hire or fire managers) and will make sure that shareholders' rights are respected in the conduct of the company's affairs. With concentrated ownership and high stakes, the free-rider problem afflicting small, atomistic s hareholders dissipates. In the United States and the United Kingdom, concentrated ownership of a public company is relatively rare. Elsewhere in the world, however, concentrated ownership is regularly implemented.In Germany, for example, commercial banks, insurance and other companies, even families often own significant blocks of company stock. Similarly, extensive cross-holdings of equities among keiretsu member companies and main banks are commonplace in Japan. Also in France, cross-holdings and â€Å"core† investors are common. In Asia and Latin America, many companies are controlled by founders or their family members. In China, the government is often the controlling ownership has a positive effect on a company's performance and value, examples of Japan and Germany.This suggests that large shareholders indeed play a significant governance role. Of particular interest here is the effect of managerial equity holdings. Previous studies suggest that there can be a nonlinear relationship between managerial ownership share and firm value and performance. Specifically, as the managerial ownership share increases, firm value may initially increase, since he interests of managers and outside investors become better aligned (thus reducing agency costs).But if the managerial ownership share exceeds a certain point, firm value may actually start to decline as managers become more entrenched. With larger shareholdings, for example, managers may be able to more effectively resist takeover bids and extract larger private benefits at the expense of outside investors. If the managerial ownership share continues to rise, however, the alignment effect may become dominant again. When managers are large shareholders, they do not want to rob themselves. To summarize, there can be an interim range† of managerial ownership share over which the entrenchment effect is dominant.Studies showed (Merck, Shellfire, and Vishnu) that the â€Å"entrenchment effect† is roughly dominant over the range of managerial ownership between 5 percent and 25 percent, whereas the â€Å"alignment effect† is dominant for the ownership shares less than 5 percent and exceeding 25 percent. A relationship between managerial ownership and firm value is likely to vary across countries. Although managers have discretion over how much of a dividend to pay to shareholders, debt does not allow such managerial discretion.If managers fail to pay interest and principal to creditors, the company can be forced into bankruptcy and its managers may lose their Jobs. Borrowing and the subsequent obligation to make interest payments on time can have a major disciplinary effect on managers, motivating them to curb private perks and wasteful investments and trim bloated organizations. In fact, debt can serve as a substitute for dividends by forcing managers to disgorge free cash flow to outside investors rather than wasting it.For firms with free cash flows, debt can be a s tronger mechanism than stocks for credibly bonding managers to release cash flows to investors. Excessive debt, however, can create its own problem. In turbulent economic conditions, equities can buffer the company against adversity. Managers can pare down or skip dividend payments until the situation improves. With debt, however, managers do not have such flexibility and the company's survival can be threatened. Excessive debt may also induce the risk-averse managers to forgo profitable but risky investment projects, causing an underinvestment problem.For this reason, debt may not be such a desirable governance mechanism for young companies with few cash reserves or tangible assets. In addition, companies can misuse debt to finance corporate empire building. Companies domiciled in countries with weak investor protection, such as Italy, Korea, and Russia, can bond themselves credibly to better investor protection by listing their stocks in countries with strong investor protection, such as the United States and the United Kingdom.In other words, foreign firms with weak governance mechanisms can opt to outsource a superior corporate governance regime available decision to list its stock on the New York Stock Exchange (NYSE). Since the level of shareholder protection afforded by the U. S. Securities Exchange Commission (SEC) and the NYSE is much higher than that provided in Italy, the action will be interpreted as signaling the company's commitment to shareholder rights. Then, investors both in Italy and abroad will be more willing to provide capital to the company and value the company shares more.Generally speaking, the beneficial effects from U. S. Listings will be greater for firms from countries with weaker governance mechanisms. Studies confirm the effects of cross-border listings. Specifically, Dodge, Karol, and Stall (2002) report that foreign firms listed in the United States are valued more Han those from the same countries that are not listed in the U nited States. They argue that firms listed in the United States can take better advantage of growth opportunities and that controlling shareholders cannot extract as many private benefits.It is pointed out, however, that foreign firms in mature industries with limited growth opportunities are not very likely to seek U. S. Listings, even though these firms face more serious agency problems than firms with growth opportunities that are more likely to seek U. S. Listings. In other words, firms with more serious problems are less likely to seek the remedies. Suppose a company continually performs poorly and all of its internal governance mechanisms fail to correct the problem. This situation may prompt an outsider (another company or investor) to mount a takeover bid.In a hostile takeover attempt, the bidder typically makes a tender offer to the target shareholders at a price substantially exceeding the prevailing share price. The target shareholders thus have an opportunity to sell the ir shares at a substantial premium. If the bid is successful, the bidder will acquire the control rights of the target and restructure the company. Following a successful takeover, the bidder often replaces the management team, divests some assets or divisions, and trims employment in effort to enhance efficiency.If these efforts are successful, the combined market value of the acquirer and target companies will become higher than the sum of stand-alone values of the two companies, reflecting the synergies created. The market for corporate control, if it exists, can have a disciplinary effect on managers and enhance company efficiency. In the United States and the United Kingdom, hostile takeovers can serve as a rustic governance mechanism of the last resort. Under the potential threat of takeover, managers cannot take their control of the company for granted. In many other countries, however, hostile takeovers are quite rare.This is so partly because of concentrated ownership in th ese countries and partly because of cultural values and political environments disapproving hostile corporate takeovers. But even in these countries, the incidence of corporate takeovers has been gradually increasing. This can be due, in part, to the spreading of equity culture and the opening and deregulation of capital markets. In Germany, for instance, takeovers are carried out through transfer of block holdings. In Japan, as in Germany, inter firm cross-holdings of equities are loosening, creating capital market conditions that are more conducive to takeover activities.To the extent that companies with poor investment opportunities and excess cash initiate takeovers, it is a symptom, rather than a cure, 1. 3. Different approach for different types of companies In the Journal of Financial and Strategic Decisions Robert L. Lippies wrote an article named â€Å"Agency conflicts, managerial compensation and firm variance†, where e described different situations where one type of managerial compensation would be more effective than others as a solution for an agency problem.The recent literature on agency conflicts between managers and shareholders is characterized by studies that test whether the implementation of incentive compensation schemes mitigate the manager-shareholder conflict. While these studies present evidence that incentives do influence managerial decision-making, no dominant class of incentives has been found. This finding is consistent with evidence that suggests firms must compensate according to their particular characteristics.The article of Robert Lippies will consider incentive compensation in relation to the manager's ability to increase the risk of future cash flows. In this context the relationship between compensation, risk taking, and managerial behavior can be evaluated. I would like to introduce some of his findings with short arguments. 1. Managers who receive a large portion of their total compensation in fixed wages will m ake efforts to reduce the variance of future cash flows. 2. Managers who receive a large portion of their total compensation in the form of fixed wages will have interests aligned to those of bondholders.Both wage and bond payoffs are negatively affected by increased dispersion because any values beyond these fixed claims are of no concern. This result implies that the interests of the manager and the bondholder become increasingly aligned as the manager's fixed wage increases. In the case of the pure fixed wage earner or pure bondholder, minimizing variance increases expected utility. Specifically, in this scenario, bondholders and wage earners have interests that are naturally aligned, and that is in direct conflict with the manager's role as an agent for the shareholders.The manager should consider bondholders interests to the extent that they impact the value of the firm but there should not be a direct alignment of interest between the manager and bondholders because this would violate the agency agreement between the shareholders and the manager and ultimately lower the value of common equity. Thus, the incentive compensation scheme must encourage the fulfillment of the principal-agent relationship. 3. Managers who receive a large portion of their total compensation in equity-related securities will make efforts to increase the variance of future cash flows. Managers who receive a large portion of their total compensation in equity-related securities will have interests aligned to those of shareholders. If the manager has significant control over the dispersion of firm values, the compensation scheme should reflect this fact by providing a lower fixed wage and more equity-related rewards. Of course, when the firm compensate its manager by equity-related reward, there is always a threat that the manager will manipulate with a price of shares, those manipulations may harm the real market value of the firm and may even lead to the firm's edge.If, however, t he manager has little control over the dispersion, a different type of remuneration package should be developed which limits the manager's exposure to risk which is beyond his control. 5. Managers of earning high wages will choose to hold larger amounts of the firm's equity-related securities. Assuming that a manager receives a wage, in case of high level of variance the manager should hold enough stock to offset any potential loss in wages.For example, if a firm is subject to large dispersions in value over which the manager has no control, the manager could hedge against a possible loss in wages by holding an mount of stock proportional to his wage claim. This wealth allocation would allow him to offset his potential loss of wages with potential capital gains. 6. Managers of stable firms who have little control over the dispersion of future cash flows and who earn high wages should receive fewer equity-related rewards from the firm.Clearly, if a manager has a little control over a firm's cash-flows, there is no need to connect his reward to the particular indexes of the firm, but as far as the firm is stable and has a lot of cash, it can allow high wage for its manager, what in turn is expected to be fair reward for the manger to prevent him from wrong-doings. 7. Firms which provide their managers with the ability to increase the dispersion of future cash flows should include more equity related rewards in the manager's compensation system. 8.The existence of compensation in the form of stock options lowers the incentive of managers to expropriate wealth from shareholders and increases the incentive to expropriate wealth from bondholders. While prior research has focused on managerial compensation and its motivational qualities; this model suggests that firm-specific characteristics relating o the propensity for firm variance and the degree of control that the manager has over this variance should be the fundamental determinants of managerial reward.In the s econd chapter of my paper various examples of agency problem will be presented, also how different aforementioned solutions were implemented for these examples will be analyzed and discussed. Chapter 2. Practical examples of agency problem's solution 2. 1. Good intentions usually backfire Executive loans. In the asses and early asses, loans by companies to executives with low interest rates and â€Å"forgiveness† often served as a form of compensation. Before ewe loans were banned in 2002, more than 30 percent of the 1500 largest US firms disclosed cash loans to executives in their regulatory filings, sum totaled $4. Billion, with the average loan being about $11 million. Half of these companies, charged no interest on executive loans, and half charged below market rates, and in either case the loans were often â€Å"forgiven†. An estimated $1 billion of the loans extended before 2002 (when they were banned) will eventually be forgiven, either while the executives are still at their companies or when they leave. For executives in companies that went bankrupt during the informational genealogy bubble collapse (when in the most of cases value of Internet-based or oriented companies could have been created by adding e- in front of their names or . Mom after), when investors lost of billions of dollars, this was very useful. According to the Financial Times, executives at the 25 largest US public firms that went bankrupt between January 2001 and August 2001 sold almost $3 billion worth of their companies' stock during that time and two preceding years as the collective shares fell by at least 75 percent, 25 had executives sell a total of â€Å"$23 billion before their stocks plummeted†.Large loans to executives were involved in more than a couple of these companies, one of the most notable being World. World loaned (directly or indirectly) hundreds of millions of dollars?approximately 20 percent of the cash on the firm's balance sheet?to its C EO Bernard Beers to help him pay off margin debt in his personal brokerage account. The loans were both unsecured and about half the normal interest rate a brokerage firm would have charged.World filed for bankruptcy a few months after the last loans were made. As a reaction to these scandals and clear frauds by top-management of huge impasses, the Serbians-Solely Act was passed in mid-2002 to improve financial disclosures from corporations and prevent accounting fraud, but also involved executive compensation. It banned loans by companies to directors and executives, also included the return of executive stock sale profit if overstating earnings will be revealed.Enron's compensation and performance management system was designed to retain and reward its most valuable employees, the system contributed to a dysfunctional corporate culture that became obsessed with short-term earnings to maximize bonuses. Employees constantly tried to start deals, often disregarding the laity of cash flow or profits, in order to get a better rating for their performance review, such actions helped ensure deal-makers and executives received large cash bonuses and stock options. The company was constantly emphasizing its stock price.Management was compensated extensively using stock options. This policy of stock option awards caused management to create expectations of rapid growth in efforts to give the appearance of reported earnings to meet Wall Street's expectations. At budget meetings, target earnings were developed on the basis â€Å"What earnings do you need to keep our stock price up? And that number would be used, even if it was not feasible. At December 31, 2000, Enron had 96 million shares outstanding as stock option plans (approximately 13% of common shares outstanding).Enron's proxy statement stated that, within three years, these awards were expected to be exercised. Using Enron's January 2001 stock price of $83. 13 and the directors' beneficial ownership reported i n the 2001 proxy, the value of director stock ownership was $659 million for the chairman of Enron Kenneth Lay, and $174 million for the CEO Jeffrey Killing. Employees had large expense accounts and many executives were paid moieties twice as much as competitors. In 1998, the top 200 highest-paid employees received $193 million from salaries, bonuses, and stock.Two years later, in 2000 the figure Jumped to $1. 4 billion. As we all know Enron had gone bankrupt on November 30, 2001, before that the price of Enron's share fell to 0,61 $, yet Just in the beginning of the year the CEO promised 2001 will be â€Å"their easiest year†. All in all we can conclude that pay-for-performance policy in combination with excessive stock- options for top-management result in shadowy deals and non-deliberated decisions on all levels of the company.