Efficient Market Hypothesis - Financial Concepts Free Sample

Question: Explain how behavioural finance challenges the efficient market hypothesis. Within your explanation discuss the implications of behavioural finance for investment managers? Answer: Introduction The superiority of the Efficient Market Hypothesis was challenged due to the emergence of the Behavioral Finance. From that point forward, the conventional standard methodology has been in a consistent clash against this new and progressively acknowledged standard of the investing behavior. The shortcomings of the hypothesis have turned into the investing weapon of the new exploratory methodology (Kartaova, Remeikiene, Gaspareniene and Venclauskien, 2014). Efficient market process and the investing rationality have contradicted the psychology of investors, market bubbles and biasness of the investors. Efficiency of information and the integration approach of the arbitrage have been found to be conflicting with the inefficient access to the market information as well anomalies in the market in case of long term (Gupta, Preetibedi and mlakra, 2014). This paper will a provide deep and insight analysis regarding the concept of efficient market hypothesis and behavioral finance. Efficient Market Hypothesis Efficient market hypothesis is one of the most important investment theories and it is also considered as the spine of the present financial theories. Since early 1960s to the middle of 1990s the efficient market hypothesis was considered to be the principal investing theory and the most popular approach accepted by the financial analysts. According to Malkiel (2003), the efficient markets do not permit the investors to obtain returns which are higher than the average. It can be implied that that the efficient market hypothesis emphasizes on the efficient of the market in terms of the highly efficient level of news, information along with perfect communication (Borges, 2009). The efficient market hypothesis has described efficient market where huge number of investors who are rational and focuses on profit maximization through actively participating in the competition. In the efficient market, the investors focus on anticipating the future of the financial market for estimating the values of securities. Additionally, one of the most important features of the efficient market is all the relevant and information can be easily accessed by all the investors participating in the market. Hence, the individual stock as well as the aggregate stock market is characterized as efficient as the investors can access the entire available information foe integrating it into the present prices of the stocks. The efficient market hypothesis assumes that when any information or news arise, it gets easily spread within the market and instantly gets incorporated in the stock prices. Efficient market hypothesis has significantly focused on the integration, efficiency, market information and reflection. Eugene Fama has acknowledged the model and stated that in an actie market which is consisted of various rational as well as investors, stocks will be price appropriately and all the available market information will be reflected on the price of the stocks. The economists and scholars have distinguished efficiency in the market in three major forms. In case of the strong form, the public as well as the private information significantly contributes in pricing of stocks. Consequently, it does not allow the investors for achieving the competitive advantages. In the semi strong form, the stock prices significantly reflect the public financial information such as financial position of the company, announcement of the companies (Westerlund and Narayan, 2013). On the other, in case of the weak efficiency form, all the historical prices of the securities are integrated into the present price. Hence, these factors cannot be used for anticipating the future situation. In efficient markets, the investors have no scope to outperform and hence, investors cannot achieve higher returns from their investment. As all the information is available, no investor can be differentiated as market specialist or investment expert. Additionally, it has been found that any kind of new news or information in the market do not have the potential for bringing out unusual profit as those information will be easily available to the investors and will be reflected on the prices of stocks. It must be noted that the information which is instantly integrated in the market prices of which is public as well as can be accessed easily (Kartaova, Remeikiene, Gaspareniene and Venclauskien, 2014). The active managers will be unable to achieve higher level of performance though exploitation of the available private information. The market forecasts the future condition in an unbiased way and the information is reflected in a more objective manner in comparison to the insiders. Addi tionally, the return maximization from the uninterrupted trading is stopped as all the relevant information is integrated in the price of the stocks (McCauley, Bassler and Gunaratne, 2008). It is evident that the fundamental analysis of the stocks of a company is conductive for assessing the stock instead of the anticipation of the future price movements. On the other hand, technical analysis cannot be utilized for experiencing the further changes over the time. In case of efficient markets, the graphical representation and other technical studies do not offer significant benefits to the investors as the historical prices are integrated in the present prices. The efficient market hypothesis has found that loge term markets are more efficient (Westerlund and Narayan, 2013). Concept of Behavioral Finance The significance of efficient market hypothesis started losing due to the emergence of behavioral finance in the 1990s. This concept focused on consideration of the human behavior on the investment decision. Basically, this concept provides an insight to the influence of human psychology in financial and investment decision making. Behavioral finance has been attempting to describe how human behavior affects the decision making related to investment as well as its impact on the market (Wojcik, Kreston and McGill, 2012). It is evident that there are some financial effects which will be dependent on the psychological variables and biases of an individual. According to Alexakis and Xanthakis (2008), financial investors are not optimal decision makers and the psychological procedures significantly affects financial decision making. Heuristics is a major basis of the behavioral finance which is perceived as the pattern of human behavior. This concept majorly focuses on the obtaining knowledge or achieving a desirable outcome through employment of a smart guesswork instead of application of particular formula. Heuristics is involved with simple techniques which are based on experience and used for solving problem. It is known as shortcuts or rule of thumbs and responsible for explaining the decision making procedure of the investors (Mehra, 2008). This technique is more applicable when the investing decisions are made with poor information. Alternatively, the investment decision making procedure in case of market volatility and complicated investing atmosphere, where the decision making becomes extensively difficult, can be analyzed with the help of this concept. The cognitive heuristics significantly help in explaining the implications of the rules. Additionally, it provides evidence of the irrational decision making of the investors. Representativeness is one of the common heuristics that states that the investor tends to attempt for fitting into a new as well as unknown event into an existing event. Therefore, they focus on identification of the mutual components in the entirely distinct events. Additionally, it has been argued that that investors judge the probabilities by the degree of one element in comparison to other element. Anchoring is considered to be one of the important cognitive heuristic. It has been found that anchoring is significantly associated with the decision making procedure of an investor which is based on the initial anchor. It means the investors focus on estimating through starting from the initial value which will be adjusted to the yield. These adjustments are often found to be erroneous which leads to irrational decision making. Another common cognitive heuristics is herding which states that the investors seek to join a group and therefore eventually develops a collective behavior in case of decision making. In this situation, people prefer to follow others instead of using their cognitive ability and information. Overconfidence is another factor that states that investors may have a tendency of overestimating their cognitive and decision making skills (Shefrin, 2001). Theories and research studies have exhibited that fallacies significant dominate the investors and it prevents them from making right investment decision. Investors have a tendency to become risk averse for losses instead of profits (Zeelenberg and Pieters, 2004). It has been found that previous gains help in reducing risk and previous loss enhances it. Mental accounting is referred to a set of rational operations utilized by the human being for organizing evaluating and keeping track of the investment activities (Smith, 2008). It engaged the tendency of an individual for generating various mental accounts on the basis of special traits and registers the events which have been encountered. Regret aversion is associated with the desire of an investor for avoiding pain which is generated from the poor investment decision such as postponing the sale of stocks which leads to loss (Muradoglu and Harvey, 2012). Apart from the above stated considerations the investing decision is significantly affected by the cognitive bias, socio economic atmosphere and culture along with the personality. It has been found that these biases lead to different logical fallacies. Behavioral finance has exhibited significant concern for the investment time. Additionally, it has suggested that the stock market bubbles are not short term. Hence the loss bubble will not be easily reimbursed immediately (Goldberg and Nitzsch, 2001). Implication of behavioral finance for investment mangers Investment management may be defined as the financial process of managing the securities and tangible assets of an individual or an organization to meet specific goals (Muneer and Rehman, 2012). Investment decision making is a complex process involving various alternative scenarios. Some of the personal factors like age, education and income effect the investors decisions. To make effective investment decision the investor has to use various technical models like CAPM. Hence, the le of behavioral finance is extensive in case of understanding the investment decisions of an individual. (Alajbeg, Bubas and Sonje, 2012) has suggested that the selection of portfolios and stocks can be increased with the use of behavioral tools. However, at the time of relying on the portfolio managers for the investment decisions, the investors will have to accept the behavioral mistakes of the portfolio managers. In majority of cases, the portfolio mangers are seen to adopt a regret aversion strategy (Ba ker and Nofsinger, 2010). Barnes (2010) opined that the major psychological biases like over confidence, anchoring, cognitive dissonance, mental accounting and regret aversion and gambler fallacy. Due to the effect of these biases, the investors tend to take poor investment decisions. The relation between the biases and the investment decisions can be explained with the help of the following theories namely Heuristic decisions process Under this process of decision-making, the investor uses the common emotional norms and mixes them with the rational thoughts in order to arrive at suitable investment decisions. The following factors are responsible for the Heuristic decisions making process. Representativeness: In cases of making investment decisions high degree of stereotyping occurs. The investors make the decisions depending upon some past investment result. Hence, if the investor has a bad experience with a similar kind of bond investment then in the future the investor will reject any investment of the similar nature or of the similar bonds (Beck and Levine, 2002). Overconfidence: Confidence is the emotional factor within the individual investor that provokes the investor to take right decisions (Shefrin, 2000). Suppose if an investor suffers a high degree of loss in an investment then he gains encouragement in form of confidence to make effective investment decision in future. Anchoring: In this case, the investors decision is guided by irrational price levels as an important process of decision-making and therefore the investors misses investment opportunities and at times makes a wrong entry into the investment market (Marx and Mpofu, 2010). Gamblers fallacy: At times depending on positive past experience the investors tend to take high investment risks. Since the experiences have fetched the investor, good returns hence the tendency to opt for more returns pushes the investor to take risky investment decisions. This situation may either prove to be positive or negative for the investor suggesting that the investor knowingly takes chances of high losses. Prospect theory The prospect theory states that the individuals while making investment decisions chose between probabilistic alternatives that involve risk and the probabilities of outcomes are known. For instance, the investor will conceive the loss of $ 1 more painful compared to the gain of twice $ 1 (He and Shen, 2010). The theory is also termed as the loss aversion theory. The mental condition of the investor forces the investor to take poor investment decisions so that risk can be avoided. The key concepts of this theory are as follows: Framing: This concept states that the method of presentation of facts influences the decisions of the investor. Hence, a negative representation will result in a loss on the part of the investment decision. Loss aversion: Since the human psychology is to avoid risks, hence when the price of a share decreases the investor refuses to sell the same and continues to retain the shares with an expectation of future price growth (Hunton, 2009). Regret aversion: This psychology induces the investor to omit any good investment opportunity so that the individual can avoid any regrets of a loss resulting from the investment. Mental accounting: Mental accounting tendency prompts the individual to categories the sources of income according to their respective expenses. Hence, the investment decision depends on the prioritizing of the income categories. Challenges faced by efficient market hypothesis due to Behavioral Finance According to Mockus and Raudys, (2010) the process of efficient market hypothesis helps the investors to be acquainted with efficient share market information. Since all investors have access to the available share information, hence it is not possible to exploit the investors. However, the rapid movement within the stock market makes it difficult for the individuals to access all information at all time of investments. Since the stock market, information is available though elaborative channels of communication hence it is difficult for the individual to combine and assimilate the same. Moreover, the emotional status of the investor also hampers the assessment of the information. Keryt (2012) opined that majority of the cases the information of stock market is available to a limited group of investors. With the help of fundamental analysis and technical analysis, the investors try to analyze the security market. If the information supplied by these analysis techniques are positive then the investor frames a positive image about the company thereby fostering a sense of confidence in respect of the investing decision. However, the technical analysis produces a forecast of the direction of the share prices hence the investors relying on the forecasts may suffer losses in future. Thus, they may form a stereotype decision on the investments and develop a sense of risk aversion in this matter. De Bondt (2009) further stated that the EMH highlights that the individuals engaged in a stock market investment decision are individuals with common characteristics namely lack of unique personality, sharing common investing traits, lack of social life and engaging in common discussions. Thus, the hypothesis creates a wrong impression on the investors and they tend to stay away from the stock markets. Rozeff (2011) commented that when the market remains efficient the investors act rationally and take efficient investing decisions. However, the occurrences of investment bubbles like the internet bubble and the real estate market bubble has shown the instances that the market is not always efficient. The addition of .com after internet based organizations. The major reason for the growth of the share prices of the internet companies was the investors speculation that the addition of .com after the internet based companies would make the companies more profitable. Hence, Simmons (2012) suggested that behavioral finance has huge affect on the market efficiencies. The financial anomalies arise majorly due to the effect of behavioral finance on the EMH. Although the investing techniques have been changed over the time however, the EMH strategies remain unmodified for the contemporary and old stock markets (Ross et al. 2004). The information supplied by the hypothesis still takes the investors to be irrational. However, with the changing time the investors have become rational and have tended to change their investment techniques. The use of modern tools like credit default swaps in the global stock markets suggests that the efficient market hypothesis has become invalid in the eyes of the investors. Moreover, Beck and Levine (2002) argued that the efficient market hypothesis suggests that the investing is a long-term decision and the stock markets should acquire efficiency in long run. However, the fact is contradicted by modern concepts of stock market that suggests that the stock investment is now a short-term decision. The profit seeking and the risk aversion psychology of the investors suggest that the investors are relying on the short-term gains so that high risk of loss can be avoided. Since the primary concept of behavioral finance is to frame the investment structure based on the behavior patterns of the investors, hence it is more effective in attractive gainful investments compared to the use of market hypothesis. Conclusion The essay shows that the major three components of a stock market are the behavioral finance, efficient market hypothesis and the investing decision. On ascertaining, the relation between the three it can be noted that behavioral finance has a huge impact on both investment decision and market hypothesis. Depending on the emotional biases, the individual designs the investment decisions. The nature of the individual will contribute to the investment decision. Moreover, the change in the behavioral patterns of the investors influences the validity of the efficient market hypothesis. With the changes in the behavioral pattern, the investors have shown that not all market hypotheses are efficient and correct. Hence, it is advisable on the part of the individual to make rational investing decisions based on the present and current information available on the stock prices of the investments. IT is also noted that due to the behavioral weaknesses the majority of the investing decisions fa il. References Alajbeg, D., Bubas, Z. and Sonje, V. (2012). The efficient market hypothesis: problems with interpretations of empirical tests.fintp, 36(1), pp.53-72. Alexakis, C. and Xanthakis, M. (2008).Behavioral Finance. Greece: Stamoulis Publications. Baker, H. and Nofsinger, J. (2010).Behavioral finance. Hoboken, N.J.: Wiley. Barnes, P. (2010).Stock Market Efficiency, Insider Dealing and Market Abuse. Farnham: Ashgate Pub. Beck, T. and Levine, R. (2002).Industry growth and capital allocation. Cambridge, MA.: National Bureau of Economic Research. Borges, M. (2009). Efficient market hypothesis in European stock markets.The European Journal of Finance, 16(7), pp.711-726. Borges, M. (2009). Efficient market hypothesis in European stock markets.The European Journal of Finance, 16(7), pp.711-726. Brown, S. (2010). The efficient markets hypothesis: The demise of the demon of chance?.Accounting Finance, 51(1), pp.79-95. Bruce, B. (2010).Handbook of behavioral finance. Cheltenham: Edward Elgar. Burksaitiene, D. and Bernatonyt, D. (2012). TENDENCIES OF FOREIGN DIRECT INVESTMENT.ecoman, 17(4). De Bondt, W. (2009).Financial accounting and investment management. Cheltenham, Glos, UK: Edward Elgar. Goldberg, J. and Nitzsch, R. (2001).Behavioral finance. New York: John Wiley. Gupta, E., Preetibedi, P. and mlakra, P. (2014). Efficient Market Hypothesis V/S Behavioural Finance.IOSR Journal of Business and Management, 16(4), pp.56-60. He, W. and Shen, J. (2010). Investor Extrapolation and Expected Returns.Journal of Behavioral Finance, 11(3), pp.150-160. Hunton, J. (2009).Advances in accounting behavioral research. Bingley: Emerald Group Publishing Limited. Kartaova, J., Remeikiene, R., Gaspareniene, L. and Venclauskien, D. (2014). Transformations of Efficient Market Hypothesis under the Influence of Behavioral Finance.Mediterranean Journal of Social Sciences. Keryt, A. (2012). INVESTMENT RISK ANALYSIS: THEORETICAL ASPECTS.ecoman, 17(3). Malkiel, B. (2003). The Efficient Market Hypothesis and Its Critics.Journal of Economic Perspectives, 17(1), pp.59-82. Marx, J. and Mpofu, R. (2010).Investment management. Pretoria: Van Schaik. McCauley, J., Bassler, K. and Gunaratne, G. (2008). Martingales, nonstationary increments, and the efficient market hypothesis.Physica A: Statistical Mechanics and its Applications, 387(15), pp.3916-3920. Mehra, R. (2008).Handbook of the equity risk premium. Amsterdam: Elsevier. Mockus, J. and Raudys, A. (2010). On the Efficient-Market Hypothesis and stock exchange game model.Expert Systems with Applications, 37(8), pp.5673-5681. Muneer, S. and Rehman, U. S. (2012). Materialization of Behavioural Finance and Behavioural PortfolioTheory: A Brief Review.Journal of Economics and Behavioural Studies, 4(8), 431-435 Muradoglu, G. and Harvey, N. (2012). Behavioural finance: the role of psychological factors in financial decisions.Review of Behavioural Finance, 4(2), pp.68-80. Ross, S. A., Westerfield, R. W. and Jefferey, J. (2004). Corporate Finance. 7th ed. New York, NY: McGraw-Hill/Irwin Rozeff, M. (2011). Market Pricing Beyond the Efficient Market Hypothesis.SSRN Journal. Shefrin, H. (2000).Beyond greed and fear. Boston: Harvard Business School Press. Shefrin, H. (2001).Behavioral finance. Northampton, MA: Edward Elgar Pub. Simmons, P. (2012). Using a Differential Evolutionary Algorithm to Test the Efficient Market Hypothesis.Comput Econ, 40(4), pp.377-385. Smith, D. (2008). Moving from an Efficient to a Behavioral Market Hypothesis.Journal of Behavioral Finance, 9(2), pp.51-52. Westerlund, J. and Narayan, P. (2013). Testing the Efficient Market Hypothesis in Conditionally Heteroskedastic Futures Markets.Journal of Futures Markets, 33(11), pp.1024-1045. Wojcik, D., Kreston, N. and McGill, S. (2012). Freshwater, saltwater and deepwater: efficient market hypothesis versus behavioural finance.Journal of Economic Geography, 13(2), pp.257-277. Zeelenberg, M. and Pieters, R. (2004). Consequences of regret aversion in real life: The case of the Dutch postcode lottery.Organizational Behavior and Human Decision Processes, 93(2), pp.155-168.

Financial System of China Free-Samples for Students- Myassignment

Question: What is Shadow Banking ? Does it pose a threat to the stability of China's Financial System? Answer: Introduction The term shadow banking is not new, however, it came into large use only recently and there is no particular definition for the term. The Financial Stability Board (FSB) widely described the term as the intermediation of credit that involves the activities and the organizations outside regular banking system. The Peoples bank of China (PBOC) utilizes the definition of the term shadow banking that demands to take particulars on their own national situation under the full account. Whatever be the definition, the shadow banks undertakes the same tasks and presumes the same risks as the banks, for instance, the activities associated with credit, maturity and the transformation of liquidity (Lardy 2013). Te definition of shadow banking is exposed to practical difficulties with regard to its precise definition as well as the usefulness for explaining the real world. Further, it is not easy to draw the borders among those activities and institutions that are guaranteed by and not guaranteed by the governments (Elliott, Douglas, Arthur Kroeber, and Yu Qiao 2013). Decoding shadow banking from the Financial Stability Board The system of shadow banking attracted much attention before global financial crisis that started during 2007. However, it became one of the root causes for the worst depression in the financial depression. There are two methods that explain the causes for the financial crisis. As per the theory of global saving glut, it is the high savings that influenced the flow of money from the emerging market economies and assisted in pushing the interest rate on the long run to be down to the bottom level. Further, the Financial Stability Board (FSB) indicated that during 2002 to 2007, the system of shadow banking increased to US$33 trillion and the size of the assets doubled from US$27 trillion to US$67 trillion. The shadow banking is considerable increasing over the past years not only in China but in the other parts of the world and the IMF has advised that the Shadow banking sector of China shall be monitored appropriately (Lu, Yunlin, Haifeng Guo, Erin H. Kao, and Hung-Gay Fung 2015). Causes of rapid growth in shadow banking There are various causes that attributed to the rapid growth of shadow banking after the financial crisis. They are Increasing of the interconnectedness and financial deregulation: the procedures of deregulation experienced the shadow financial institutions, for instance, NBFCs are becoming much more interconnected with the other sectors of financial system and much more complex with regard to the risk-taking approaches and activities. Thus, they are becoming more vulnerable with regard to other financial markets that increase the systematic risk (Elliott, Douglas J., and Yu Qiao 2015). Financial exclusion: the small personal businesses and the SMEs find it costly and difficult for accessing the credit from the formal bank and the gap is filled by the NBFCs. The poor people are denied the load owing to low income, lack of sufficient collateral and the possibilities of default. However, the microfinance offers easy access to the funds to the self-employed and the poor people at high interest rate. As the poor have no other options, they avail the loan with higher rate of interest only (Riasi, Arash 2015). Functions of China Banking Regulatory Commission Formulation of the regulations and the supervisory rules that governs the banking institutions Responsibilities of the supervisory boards administration for the major banking institutions owned by the state and the other activities that are delegated by state council (Ueda, Kenji, and Yuko Gomi 2015) Authorize the changes, termination, business scope and the establishment for the banking institutions. Conduct the fit and proper tests for the senior management under the banking institutions (Hsu, Sara, and Jianjun Li 2015). Publish and compile the reports and statistic of the overall industry of banking as per the required regulations. Provide the proposals related to the resolution related to the issues of the deposit-taking institution with regard to the required regulations Conduct the off-site surveillance and on-site examinations for banking institutions and taking into considerations the enforcement actions against the rule-breaking behaviours (Hsu, Sara 2017). Growth of shadow banking in Chinas financial system Some people from China believe that the shadow financing over China is the banking reform that has gone wrong. The shadow banking is a sign that the banks are circumventing the regulations with regard to increase or at least protect the margin of profit. However, as per the critics, this led to the possibilities of high amount for the bad debts on the bank books. As the Chinese government accounts the banking as as the strategic industry, this issue is quite bigger. In the true sense, the shadow banking is not actually banking as it includes all types of investment products that include private equity and mutual funds. The term shadow banking sometimes called as the loan from bank in disguise (Huang, Robin Hui 2015). As per the G20s financial stability board 2015, Chinas shadow banking was approximately 26% of the GDP during 2014 that was much lower as compared to the 59% average of other countries. Therefore, the most important and interesting development in China was the growth of the trusts. These trusts are the major form of equity investment and listed assets like money market and loans. Thus, they offer the banks to provide finance to the higher-risk areas that are generally restricted as per the general regulations. Owing to the shadow banking, some of the products related to wealth-management were significantly successful and offered exceptional returns to the investors (Dang, Tri Vi, Honglin Wang, and Aidan Yao 2014). Further, the corporate sector may have to sit on the level of high-debt and the leverage under the household and government sectors is lower as compared to various developed countries. As the frameworks involves various factors like high probability of exceptional price volatility, trade barriers, liquidity, exchange controls and the associated risks with the emerging markets, the frontier markets are magnified. Further, due to the shadow banking, the prices of the stocks will be fluctuates dramatically and rapidly which in turn will have impact on individual organizations, sectors, general market conditions and the specific industries (Zou, Xiao-Peng, Yu-Xiao Pang, and Hui-Lin Zhu 2013). The financial risk among the regulated financial intermediation and the shadow banking The tightening of the regulatory system of China is targeted for reducing the leverage in the financial segment, particularly the assets that are funded through the wealth management products. However, this may direct to unintended consequences for higher risk in activities of other shadow banking in shifting the composition of banking sector, as per the analysts. Peoples bank of china raised the rates of short-term policy twice during the year and developed tougher the assessment based on the macro-prudential for the financial institutions. The regulatory commission of China banking is also taking steps for curbing the risks of the products related to the wealth management and the online lending, guarantee chains of the borrower and the trusts. Borrowers in the division of property, financer of industries and vehicles that are burdened by the overcapacity face that are reduced by the access to the loan of the international bank and the market for the domestic bond (Wang, Hao, Hongli n Wang, Lisheng Wang, and Hao Zhou 2016). SWOT analysis Strength The main strength of the shadow banking is that the system of shadow banking does not require any regulation. As there are so many regulations in association with the bank, this is the biggest advantage that can offset various associated disadvantages. No regulation required for raising the money through selling of the securities that allows the shadow banking to manage as much as risks possible without defeating the obligations. Reports and compliance procedures that can cost million dollars and disruption of the operation are no more required. Weaknesses Shadow banking is not supported by central bank. Therefore, they do not have any back-up that can protect them against the issues if the depositors withdraw their cash all of a sudden. Though the commercial banks indirectly back them up, however, it is quite tough to them for diverting cash into the shadow arm, especially during the crisis period. Opportunities lending provided by the asset managers is the crucial aspect for the effective capital market as the provision of additional credit are crucial to the borrowers, particularly during the distress period of the commercial banking. Further, the private equity funds, hedge funds and other funds will provide loan to the higher risk associated business, for instance, the start-up organizations. However, decisions for lending is usually taken after due diligence with regard to greater flexibilities. Threats the benefits from financed fund have its own costs as the asset managers face the risks associated with the regulatory structures and the operation of the assets. Shadow banking are exposed to various risks that may not have an impact on the conventional large banks. The main threats are as follows: Credit risk an due diligence e. while lending loan to the borrower, the procedures for assessing the credit risk of the borrower accurately, it requires complete disclosures and gatherings of the financial information of the borrower and availability of all the information may not be always available Liquidity risk shares from the ETFs and the open-ended mutual funds are generally tradable and redeemable whereas the invested assets are less liquid. Thus, easy liquidity and redemption options are not easy (Tsai, Kellee 2015). Threats to Chinas highly geared financial system In last decades, China witnessed the boom under the shadow finance, specifically with regard to the entrusted loans. The banks use the shadow credit purchase in big size for circumventing the policy restrictions and the regulations related to bank loan. Proliferation of the shadow credit products and the increasing dependency on the wholesale and short-term funding could lead to the substantial risks with regard to the solvency of the borrower and the default of the corporate loan. Further, the risk related to stability may include under the potential risk for the defaults on the largely held shadow products with regard to the short-term investments associated with high-risk borrowers (Claessens, Stijn, and Lev Ratnovski 2015). Governments reform to mitigate the threats Government of China has taken various reforms for mitigating the threats associated with shadow banking. These are Peer to peer banking the non bank capital raised from various sources that involves trust firms, brokerage firms, insurance firms and the platform for the peer to peer lending. These sources are lend to the stock investors through various innovative channels like offline private fund that matches with the organizations and structured organizations for the mutual funds. Further, one of the most significant developments throughout the stock market bubble is the business related to the matching business of online fund. The peer to peer platform of lending enables the match funding organizations to attract the huge individual lenders which in turn enables the mobilizing of large capital into stock market during the short time period (Li, Jianjun, Sara Hsu, and Yanzhi Qin 2014). Underground banking system under the underground banking system the money is transferred through the informal banking instead of the the formal banking and is recognized through the method that legitimately remitted from oversees workers that are transferred. However, the underground banking are regarded as the channel for money laundering and it is crucial for achieving the balance among regulation of the underground banking to decrease the flow of the illicit funds and giving permissions for the continuous usage of the alternative, legitimate remittance system (Li, Tong 2014). Conclusions It has been concluded from the above discussion that the financial system of China has shifted from the isolated, heavily regulated and bank-dominated system into the increasingly diversified, large and interconnected system. The transformation is developed the efficiencies of financial system and are expected to get benefits for the economic development over the short-term period. This is particularly exists while the financial systems are under excessive pressures from competition to expand them into the riskier market for the assets and the developed regulatory framework is not been kept in pace with the changes. However, the crucial question regarding this is is whether the coordinated arrangements that appeared to be efficient during crisis are equally suited with the normal condition sof operations References Claessens, Stijn, and Lev Ratnovski. "What is shadow banking?." (2015). Dang, Tri Vi, Honglin Wang, and Aidan Yao. "Chinese shadow banking: Bank-centric misperceptions." (2014). Elliott, Douglas J., and Yu Qiao. "Reforming Shadow Banking in China."Economic Studies at Brooking. Available at: https://www. brookings. edu/~/media/research/files/papers/2015/05/12-reforming-shadow-banking-china/elliott--shadow-banking. pdf(2015). Elliott, Douglas, Arthur Kroeber, and Yu Qiao. "Shadow banking in China: A primer."Research paper, The Brookings Institution(2015). Hsu, Sara, and Jianjun Li. "The rise and fall of shadow banking in china."Political Economy Research Institute, Working Paper Series Number375 (2015). Hsu, Sara. "Shadow Banking in China Shen Wei Northampton, MA: Edward Elgar, 2016 xiv+ 455 pp. $175.00 ISBN 978-1-78471-676-9."The China Quarterly229 (2017): 232-233. Huang, Robin Hui. "The regulation of shadow banking in China: International and comparative perspectives."Banking Finance Law Review30, no. 3 (2015): 481. Lardy, N. "Shadow Banking in China." InPresentation at the Chicago Feds Sixteenth Annual International Banking Conference. 2013. Li, Jianjun, Sara Hsu, and Yanzhi Qin. "Shadow banking in China: Institutional risks."China Economic Review31 (2014): 119-129. Li, Tong. "Shadow banking in China: expanding scale, evolving structure."Journal of Financial Economic Policy6, no. 3 (2014): 198-211. Lu, Yunlin, Haifeng Guo, Erin H. Kao, and Hung-Gay Fung. "Shadow banking and firm financing in China."International Review of Economics Finance36 (2015): 40-53. Riasi, Arash. "Competitive advantages of shadow banking industry: An analysis using Porter diamond model."Business Management and Strategy6, no. 2 (2015): 15-27. Tsai, Kellee S. "The political economy of state capitalism and shadow banking in China." (2015). Ueda, Kenji, and Yuko Gomi. "Shadow Banking in China and Expanding debts of Local Governments."Newsletter23 (2013). Wang, Hao, Honglin Wang, Lisheng Wang, and Hao Zhou. "Shadow banking: China's dual-track interest rate liberalization." (2016). Zou, Xiao-Peng, Yu-Xiao Pang, and Hui-Lin Zhu. "The study between shadow banking and financial fragility in China: an empirical analysis based on the co-integration test and error correction model."Quality Qua

Write a Narrative Sample Essay

Write a Narrative Sample EssayAn at-home college student can begin a narrative sample essay, a college sophomore can start a narrative sample essay, and a college senior can start a narrative sample essay. The kind of first-person essay that I'm talking about is something like a chronicle of the writer's life, chronicling events in his/her life that have led to his/her situation. Many people will cite their first love as a driving force in their lives, or their first job. If you start with your first experience, it should bring your story alive.Using chronicles as a first draft can be well worth the student's time. A well-written narrative sample essay allows the student to see things from a fresh perspective. Writing from the writer's perspective can help with writing in first person, an important skill for students who need to be able to relate to their characters.The best way to write from first-person is to use something more personal. Use your first memories to illustrate the pr oblems of the character. Let them relate what they had for breakfast and where they went for lunch. Focus on the events leading up to the ending of the story, then follow along with a question or thesis statement.If a student chooses to write a narrative sample essay for first-year composition, he/she may want to take some time to decide on a topic. This way, a student can focus on the theme of the class rather than the specifics of the subject matter. Focus on the one piece of furniture that has stayed in the student's home throughout the years. If the student has only moved this item once, why not create a unique piece?All great narratives use repetition in one form or another. Any narrative sample essay can be made more effective by using a narrator. The teacher is always the narrator, but the student is the narrator in this case. They are the reader. In addition, the narrator should also speak from a perspective.For example, if the story is about a middle school student, the stu dent would talk about their favorite thing about school (they may be a nerd, an athlete, a bad kid, etc.). Then, the narrator says something like 'The day continued to go by as classes and extracurricular activities all around me helped to keep me busy. As the afternoon wore on, it was time for everyone to go home, including the bus driver, who was behind on his route.'One of the most exciting parts of writing a narrative sample essay is writing about a hobby or pastime. This will allow the student to research and connect the subject to what is happening in the essay. And as the student writes about this subject, the student's life should make sense. At the end of the article, the student will be able to provide an answer to the question or thesis statement.Do not force your student to write without a thesis statement. Sometimes, the student does not know what they want to say, and they can't even say it themselves. Using a narrative sample essay can help them begin the process of c reating the outline for their own epic writing.

Political corruption free essay sample

Many political leaders, especially in Africa, are known to engage in financial malpractice involving public funds meant for the communities they represent. The few people who run the resources of a country end up abusing the resources. These resources that are supposed to be channeled to develop infrastructure or educate the citizens end up being misused, misapplied or misappropriated by those entrusted to bring development. For example in Zambia, Constituent Development Funds (CDF) have been diverted by Members of Parliament to their personal use. There is no doubt that financial malpractice by leaders is a stumbling block to meaningful development in any country. One would not expect leaders in a democratic society like Zambia to embezzle funds meant for the welfare and development of their communities. According to Acemoglu and Robinson, this kind of behaviour by leaders is only possible in autocratic regimes. They argue that democracy makes this kind of theft difficult to accomplish and to conceal for two reasons. We will write a custom essay sample on Political corruption or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Firstly, the formal institutions of government such as the legislature constrain the behaviour of leaders. Secondly, popular participation in the process of government ensures that elected leaders are accountable to the citizenry. In a truly democratic society, there will be honesty, fairness, responsibility and accountability to and for each other (Djokoto and Chama: 2006). However, in most democratic societies, especially in sub-Saharan Africa, leaders can misuse, misapply or misappropriate community funds without the affected citizens raising any serious queries against the culprits. The citizens seem to be indifferent to such occurrences. Their silence or indifference could be a result of either not caring about what goes on around them politically or just being unaware of such things happening. This essay will attempt to explain why citizens do not raise any serious queries against their leaders when they misuse, misapply or misappropriate funds meant for their communities. This essay will begin by defining democracy and give the meanings of the words misuse, misapply and misappropriate. It will then try to explain why the affected citizens do not query their leaders when they abuse community funds. Finally, it will conclude. Democracy is a word with many meanings. Sir Stafford Cripps defines democracy as a system of government in which every adult citizen is equally free to express his or her views and desires upon all subjects in whatever way he or she wishes and to influence the majority of his fellow citizens to decide according to those views and to influence those desires. H. B. Mayo defines a democratic political system as one in which public policies are made on a majority basis by representatives subject to effective popular control at periodic elections which are conducted on the principle of political equality and under conditions of political freedom (Mahajan 1988:794). Democracy is usually understood as majority rule and the holding of regular elections. But if it has to work effectively, it must include active participation by all citizens and a conscious awareness of both rights and responsibilities (Mbewe 2012:16-17). According to the Macmillan English Dictionary, the word misuse means to use something in a wrong way or for the wrong purpose. To misapply is to use something in a wrong or illegal way. Misappropriation means to take for oneself money that one is responsible for but does not belong to them. One of the primary challenges of some democratic societies such as Zambia is the lack of leaders who vie for political office with the goal of serving the people, instead of themselves. During election campaigns, aspiring leaders give false information to people. They promise them of things they fail to give them after elections. This has been the tradition in the Zambian politics. Once voted for, the leaders become part of the rich while the poor Zambians remain cut off. They will invite rich people to dine with him at their newly acquired mansions while the poor who are the majority voters remain poor if not poorer. To host rich people, these politicians will need to have huge sums of money. They also need money to afford their newly acquired status. These people will shun the services in the country; they will send their children to private schools, or to schools abroad. They will seek medical advice outside the country and they will buy their clothes from outside the country. With the above behaviour little or no attention will be paid to improving the services they will never access or to improve the conditions of those who voted for them. Since most of the politicians in poor democratic societies have financially humble backgrounds, where do they get such monies? Records show that it is easy to steal public money in most African countries. The Auditor-General’s report on the Zambian government accounts shows how public funds have been stolen in Zambia. Weaknesses in accounting and revenue collection make it easier for public servants to steal huge sums of public money. At times, the money is not stolen but just misapplied. For example, a forensic audit of Solwezi District Council books by the Office of the Auditor-General (OAG) for the financial year ending 31 December 2004 revealed glaring financial irregularities. The auditor’s report showed that the K168 million grant given to the municipal authority with instructions that 70 percent of the money be spent on social services went towards salaries, allowances for councilors and cell phones for chief officers. Only 25 percent of the money went towards social services (op cit Djokoto and Chama). An example of a case of misappropriation of public funds by a leader is one in which a former Defence Minister in the Chiluba administration was found guilty by the Lusaka High Court for using CDF for his campaign during the 2001 elections (ibid). The minister was never jailed but lost his ministerial appointment. Despite such rampant financial malpractices by leaders, the citizens who are deprived of the funds and other amenities fail to raise any serious queries against such leaders. In most cases, revelations about misuse or misappropriation of community funds have been largely driven by the private media. Sometimes, the greatest pressure on government leaders to be accountable for their actions has come from the international media and Western donors. Anti-corruption campaigners such as Transparency International (TI) and other interest groups have also been involved in the fight against abuse of public funds. Through their activism they try to amplify the weak voice of the poor citizens in keeping political leaders in check. However, this is not easy. The constant struggle by these interest groups to hold leaders accountable for their expenditure of public funds cannot be won without the greater involvement of the affected citizens (ibid). Unfortunately, citizens in these societies are just not angry enough. They seem not to care about what happens to the community funds meant to improve their livelihoods. Their indifference to financial malpractices by their leaders does not help the situations at all. As a matter of fact, it increases their already high levels of poverty and widens the gap between the rich and poor. To understand why affected citizens do not take any serious steps against their leaders when they embezzle public funds, there is need to understand the political awareness of the majority of citizens and their involvement in public issues, whether the political system gives a voice to the poor or not, and the way government agencies charged with the responsibility of handling such cases respond to citizens’ grievances. There are quite a number of reasons why citizens choose to keep quiet about the wrongs committed by their leaders. As we try to look at some of these reasons, there is need to understand that people have different levels of awareness with regard to what happens in their communities. There are those that are aware of the situation prevailing in their communities and those that are not. Those that are aware may try to voice their concerns through whatever means are available to them, but their voice will not be heard because it is not strong enough. The reason is that they are just a small minority of the affected citizenry. At times this is made worse by the fact that among this group there may be others who also benefit from the plunder of their community resources by way of receiving gifts or bribes from their community leaders. These will be unwilling to divulge any malpractice by their leaders because they fear losing their extra source of income, which is the bribes they receive to remain silent about the misuse, misappropriation or misapplication of community resources by the leaders. These may even try to protect such erring leaders by hiding whatever information they may know about such happenings to investigative agencies. The other group comprises those that are unaware or have just decided not to participate in such matters, and these are the majority. The majority of citizens are usually not well informed about public issues because of the general lack of information about such issues, especially about government spending policies. For example, in Zambia, there is no community involvement in the budgetary process at whatever level. At community level, there are no access points for ordinary citizens to participate in the budgetary process. The budgeting is done by officials and leaders. Participation of citizens in the budget process is inhibited by lack of access to information on both the national and community budget processes (http://info. worldbank. org/governance/wgi/index. asp). Although citizens may not play a direct role in the preparation process of the budget, they can contribute by fostering leaders’ accountability through positive engagement in monitoring of the implementation of the community projects. If the information about community projects being funded is readily available and understood by citizens, they can easily ask questions when planned projects are not implemented. Unfortunately, this does not happen even in some democratic societies. As a result, leaders continue to misuse, misapply or misappropriate community funds and get away with it because citizens are not aware of the malpractices being committed by their leaders. This can be prevented or lessened by availing citizens with all the necessary information pertaining to projects planned in their communities and how the allotted funds are to be used. Another reason why affected citizens fail to complain against the financial malpractices committed by leaders in their communities is the negative or unfavourable response by government agencies and investigative agencies charged with responsibility to deal with such cases. It appears that the government or political statements are, in most cases, not matched by action. For example, in 2005, a former Health Ministry permanent secretary was accused by the Task Force on Economic Plunder of misusing public funds. As he had openly voiced his support for the President, the latter ordered the chief prosecutor to drop the case. However, the prosecutor refused and ultimately managed to secure a conviction (http://www. freedomhouse. org/template. cfm? ). What this implies is that the citizens lose confidence in the ability of the responsible government agencies to ably handle their complaints without undue influence from higher offices. There have also been cases, for instance in Zambia, where the Director of Public Prosecutions (DPP) had given consent to prosecute some government officials but the government has interfered to protect the accused from being prosecuted. People accused of abusing public resources are allowed to remain members of the ruling party. Such inconsistencies erode the credibility of the government’s stance in fighting such vices and make citizens lose confidence in the government. As a result, citizens begin to feel that even if they complained very little or nothing at all would be done by the government to correct the situation. This is a good reason for citizens to keep quiet and not complain against their leaders when they misuse, misapply or misappropriate community funds (ibid). In conclusion, it can be said that the citizens’ tendency to remain silent despite widespread acts of financial misconduct by the leaders is mainly due to fear by the affected citizens to lose the financial and material support they receive from the culprits because when leaders steal community funds, they bribe a few members of the community to buy their silence and loyalty. The other reasons are the lack of information pertaining to expenditure of public funds, and the unfavourable response by the responsible government agencies in handling issues of financial malpractice by leaders after receiving complaints from concerned citizens. In order for citizens to become willing, informed and effective participants in issues of democracy and good governance, they must be minimally taught to understand good governance and democratic principles and virtues and in the process begin to practice democracy and good governance themselves.

Essentials of Human Resource Management free essay sample

Management involves setting goals and allocating scarce resources to achieve them. †¢Management is the process of efficiently achieving the objectives of the organization with and through people. †¢Primary Functions of Management Planning – establishing goals Organizing – determining what activities need to be done Leading – assuring the right people are on the job and motivated Controlling – monitoring activities to be sure goals are met 2. What is Human Resource Management? Definitions: . †¢Human Resource Management (HRM) is a subset of the study of management that focuses on how to attract, hire, train, motivate and maintain employees. Strong employees become a source of competitive advantage in a global environment facing change in a complex ways at a rapid pace. DeCenzo et al (2010:1) Human resource/personnel management may be defined as the planning, organizing, directing and controlling of the procurement, development, compensation, integration and maintenance and separation of human resources to the end that individual, organizational and societal objectives are accomplished. We will write a custom essay sample on Essentials of Human Resource Management or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Edwin B. Elippo †¢Ã¢â‚¬ËœAll those activities associated with the management of employment relationships in the firm’Boxall and Purcell (2003: 1) †¢Ã¢â‚¬Ëœ The management of work and people in organizations’Boxall et al (2007. ) HRM as ‘an inevitable process that accompanies the growth oforganizations’Boxall and Purcell (2010: 29) †¢The policies, practices,and systems thatinfluence employees’ behavior, attitudes, and performance. Noe et al (2011. 1) HRM covers activities such as †¢human capital management, †¢knowledge management, †¢organization design and development, †¢resourcing (workforce planning, recruitment and selection, and talent management), †¢performance management, †¢learning and development, †¢reward management, †¢employee relations and employee well-being. HRM has a strong conceptual basis drawn from the behavioural sciences and from human capital and industrial relations theories. The philosophy of human resource management As conceived by the pioneers in the 1980s, HRM is fundamentally different from the personnel management practices of the time. †¢Beer et al (1984: 1) (the ‘Harvard school’)started with the proposition that: ‘Human resource management (HRM) involves all management decisions and actions that affect the nature of the relationship between the organization and employees – its human resources’. They suggested that HRM had two characteristic features: (1) line managers accept more responsibility for ensuring the alignment ofcompetitive strategy and HR policies; (2) HR has the mission of setting policies that govern how HR activities are developed and implemented in ways that make them more mutually reinforcing. †¢Fombrun et al (1984) – developed what has been termed their ‘matching model’, which indicated that HR systems and the organization structure should be managed in a way that is congruent with organizational strategy. The critical management task is to align the formal structure and human resource systemsso that they drive the strategic objectives of the organization’ (ibid: 37). †¢Hendry and Pettigrew (1990: 20) observed that: ‘What HRM did at this point was to provide a label to wrap around some of the observable changes, while providing a focus for challenging deficiencies – in attitudes, scope, coherence, and direc tion – of existing personnel management’. †¢Legge(1989: 25), whose analysis of a number of HRM models identified the following ommon themes: That human resource policies should be integrated with strategic business planning and used to reinforce an appropriate (or change an inappropriate) organizational culture, that human resources are valuable and a source of competitive advantage, that they may be tapped most effectively by mutuallyconsistent policies that promote commitment and which, as a consequence, foster a willingness in employees to act flexibly in the interests of the ‘adaptive organization’s’ pursuit of excellence. Storey (2001: 7) noted that the beliefs of HRM included the assumptions that it is the human resource that gives competitive edge, that the aim should be to enhance employee commitment, that HR decisions are of strategic importance and that therefore HR policies should be integrated into the business strategy. Underpinning theories of HRM David Guest (1987: 505) commented that: ‘Human resource management appears to lean heavily on theories of commitment and motivation and o ther ideasderived from the field of organizational behaviour’. These theories are summarized below. 1. Commitment the strengthof an individual’s identification with, and involvement in, a particular organization 2. Organizational behaviour theory describes how people within their organizationsact individually or in groups and how organizations function interms of their structure, processes and culture. 3. Motivation explains the factors that affect goal-directed behaviourand therefore influences the approaches used in human resource managementto enhance engagement (the situation in which people are committed to theirwork and the organization and motivated to achieve high levels of performance). . AMO theory- set out by Boxall and Purcell (2003) states that performanceis a function of Ability + Motivation + Opportunity to participate. 5. Human capital theory concerned with how people in an organizationcontribute their knowledge, skills and abilities to enhancing organizationalcapability and the significance of that contribution 6. Resource dependence theory. Resource depende nce theory groups and organizations gain power overeach other by controlling valued resources. HRM activities are assumed toreflect the distribution of power in the system. . Resource-based theoryoften referred to as the resource-based view, blendsconcepts from organizational economics (Penrose, 1959) and strategic management(Barney, 1991). The theory states that competitive advantage is achievedif a firm’s resources are valuable, rare and costly to imitate. HRM can playa major part in ensuring that the firm’s human resources meet those criteria. 8. Institutional theory. Organizations conform to internal and external environmental pressures inorder to gain legitimacy and acceptance. 9. Transaction costs theory assumes that businesses develop organizationalstructures and systems that economize the costs of the transactions (interrelatedexchange activities) that take place during the course of their operations. 10. Agency theory -also known as principal-agent theory, explains that in mostfirms there is a separation between the owners (the principals) and the agents(the managers). Agency theory indicates that it is desirable to operate a systemof incentives for agents, ie directors or managers, to motivate and rewardacceptable behaviour. 1. Contingency theory states that HRM practices are dependent on the organization’senvironment and circumstances. This means that, as Paauwe (2004:36) explained: ‘the relationship between the relevant independent variables(eg HRM policies and practices) and the dependent variable (performance)will vary according to the influences such as company size, age and technology,capital intensity, degree of unionization, industr y/sector ownership andlocation’. The goals of HRM The overall purpose of human resource management (or people management) is to ensure that the organization is able to achieve success through people. The following policy goals for HRM were suggested by David Guest (1991: 154–59): †¢Commitment: behavioural commitment to pursue agreed goals andattitudinal commitment reflected in a strong identification with theenterprise. †¢Flexibility: functional flexibility and the existence of an adaptableorganization structure with the capacity to manage innovation. Quality: this refers to all aspects of managerial behaviour that beardirectly on the quality of goods and services provided, including themanagement of employees and investment in high-quality employees. †¢Strategic integration: the ability of the organization to integrateHRM issues into its strategic plans, ensure that the various aspects ofHRM cohere, and provide for line managers to incorporate a HRMperspective into their decision making. Characteristics of HRM Conceptually, the characteristics of HRM are that it is: †¢strategic with an emphasis on integration; commitment-orientated; †¢based on the belief that people should be treated as assets (human capital); †¢unitarist rather than pluralist, ie based on the belief that management and employees share the same concerns and it is therefore in both their interests to work together †¢individualistic rather than collective in its approach to employee relations; †¢a management-driven activity – the delivery of HRM is a linemanagement responsibility; †¢focused on business values, although this emphasis is being modified The diversity of HRM Dyer and Holder (1998) have pointed out that HRM goals vary according to competitive choices, technologies, characteristics of employees (eg could be different for managers) and the state of the labour market. †¢Boxall (2007: 48) remarked that: ‘Human resource management covers a vast array of activities and shows a huge range of variations across occupations, organizational levels, business units, firms, industries and societies’. Hard and soft HRM A distinction was made by Storey (1989:8) between the ‘hard’ and ‘soft’ versions of HRM. The hardone emphasizes the quantitative, calculative and business-strategic aspects of managing human resources in as â€Å"rational† a way as for any other economic factor. †¢By contrast, the soft version traces its roots to the humanrelationsschool; it emphasizes communication, motivation and leadership. ’ The ethical dimension HRM has an ethical dimension; that of exercising concern for the interests (well-being) of employees, bearing in mind Schneider’s (1987: 450) view that ‘organizations are the people in them: people make the place’. Beer et al (1984: 13) emphasized that: ‘It is not enough to ask how well the anagement of human resources serves the interests of the enterprise. One should ask how well the enterprise’s HRM policies serve the well-being of the individual employee’ (original emphasis). Ulrich (1997: 5) argued that HR professionals should ‘represent both employee needs and implement management agendas’. Boxall et al (2007: 5) pointed out that: ‘While HRM does need to support commercial outcomes (often called â€Å"the business case†), it also exists to serve organizational needs for social legitimacy’. 3. Why is HRM important to corporations? †¢The role of human resource managers has changed . HRM jobs today require a new level ofsophistication. oGovernment legislation has placed new requirements on employers. oJobs have become more technical and skilled. oTraditional job boundaries have become blurred with the advent of such things as project teams and telecommuting. oGlobal competition has increased demands for productivity. oOrganizations need HRM specialists trained in psychology, sociology, organization and work design, and law oEqual employment opportunity is emphasized and geared to hire the best-qualified candidate without regard to race, age, religion, color, sex, disability, or national origin. The Strategic Nature – HRM must be oa strategic business partner and represent employees. oforward-thinking, support the business strategy, and assist the organization in maintaining competitive advantage. oconcerned with the total cost of its function and for determining value added to the organization †¢HRM is the part of the organization concerned with the à ¢â‚¬Å"people† dimension. †¢HRM is both a staff, or support function that assists line employees, and a function of everymanager’s job. †¢HRM Certification oColleges and universities offer HR programs. The Society for Human Resource Management and Human Resource Certification Institute offer professional certification. 4. What are the Primary Activities of HRM? †¢Four basic functions: oStaffing Staffing function is concerned with seeking and hiring qualified employees. It involves strategic human resource planning, recruitment and selection. The goal of recruiting is to give enough information about the job to attract a large number of qualified applicants and simultaneously discourage the unqualified from applying. oTraining and Development The goal of training and development is to have competent, adapted employees who possess the up-to-date skills, knowledge and abilities needed to perform their current jobs more successfully. If that is attained, HRM turns its attention to finding ways to motivate these individuals to exert high energy levels. Training and development function tends to be a continuous process. This function encompasses the following – Employee Training, Employee Development, Career Development and Organization Development. oMotivation Motivation is a multifaceted process which involves the employee, the manager and the organization. The employee’s performance is based on his ability and willingness to the job. Review of job design and provision of latest technology can motivate employees. The element of respect between management and the workers should be maintained. This can be seen as involving employees in decisions that affect them, listening and implementing their suggestions. Performance setting and evaluation, feedback and reward system must be in place to motivate employees. Throughout the activities required in the motivation function, the efforts all focus on one primary goal: to have highly productive, competent, and adapted employees, with up-to-date skills, knowledge and abilities. oMaintenance Maintenance function is concerned with maintaining employee’s commitment and loyalty to the organization. This function puts into place activities that will help retain productive employees. HRM must ensure a safe and healthy working environment; caring for employees’ well-being has a major effect on their commitment. Employees’ assistance program and communication programs must be in place. Time and effort expended in this function help HRM achieve its ultimate goal of retaining highly productive, competent, and adapted employees, with up-to-date skills, knowledge, and abilities, who are willing to maintain their commitment and loyalty to the company. The process is difficult to implement and maintain, but the rewards should be such that the effort place in such endeavors is warranted. The following diagram will summarize the primary functions of HRM. Another look at the functions of HRM which goes beyond the four basic tasks: FunctionResponsibilities Analysis and design of workWork analysis; job design; job descriptions Recruitment and selectionRecruiting; job postings; interviewing; testing; coordinating use of temporary labor Training and developmentOrientation; skills training; career development programs Performance management Performance measures; preparation and administration of performance appraisals; discipline Compensation and benefits Wage and salary administration; incentive pay; insurance; vacation leave administration; retirement plans; profit sharing; stock plans Employee relations Attitude surveys; labor relations; employee handbooks; company publications; labor law compliance; relocation and utplacement services Personnel policies Policy creation; policy communication; record keeping; HR information systems Compliance with laws Policies to ensure lawful behavior; reporting; posting information; safety inspections; accessibility accommodations Support for strategyHuman resource planning.

END OF LIFE CARE AND SPIRITUALITY essays

END OF LIFE CARE AND SPIRITUALITY essays In the last century the average life span in the United States has increased by more then 30 years. One hundred years ago the average American died at the age of forty-six, at home surrounded by family and friends1. Death was seen as an inevitable part of the journey through life. People used spirituality to come to grips with their suffering. (Spirituality is that which gives meaning to ones life, it can be religious in nature, but it can also be found in art, family or friendship. Dying provides an opportunity to find this meaning to life, because it gives an individual the occasion to deal with the deeper questions of existence. This is how people approached death through most of human history.2) In the twentieth century the advances in medical technology have dramatically improved quality and length of life. This progress has also dramatically changed the way people die. Death has become institutionalized; today 90% of Americans die in a hospital, a sharp contrast to one hundred years ago, when 95% of Americans died at home1. Removal of death from the home has turned it into a foreign and frightening process, which is difficult to deal with and understand. It is much easier to isolate the dying to a hospitals intensive care unit (ICU). This institutionalization of death has created the modern-day medical nightmare a death alone, in pain, without dignity, tethered to expensive machines. Friends and relatives do not visit the dying, they avoid them in naive hope that putting death behind a sterile curtain will make it vanish. Death in the ICU can be devoid of spirituality; rather, it is agonizing, and humiliating. The broad spectrum of problems created by the institutionalized of death was discussed in the PBS documentary: Before I Die: Medical Care and Personal Choices3. In the program people were allowed to talk openly about the experiences and emotions they encountered while their loved ones w...

Free Essays on Language Differences

The essays â€Å"Mother Tongue† by Amy Tan and â€Å"Public and Private Language† by Richard Rodriquez are recollections of both authors personal battles with language. Their stories are very different but each essay attempts to illustrate the personal struggle the two of them went through to discover their voice. The two of them battled with all the forms of language they had to learn. In their lives they were faced with having two forms of language, the â€Å"private† language that was only spoken at home and the â€Å"public† language that was for everyone else. For Richard Rodriquez his struggle was with English and Spanish alone. Amy Tan, on the other, was faced with different levels of English. In both essays there is discussion of public and private language. Each author defines it differently. Amy Tan defines her â€Å"private† language as a language of intimacy. â€Å"The English I spoke to my mother† (21). It seems to be what she uses with those that are within her family spectrum. â€Å"My husband was with us as well, and he didn’t notice any switch in my English. And then I realized why. It’s because over the twenty years we’ve been together I’ve often used that same kind of English with him, and sometimes he even uses it with me. It has become our language of intimacy, a different sort of English that relates to family talk, the language I grew up with†.(4) The way that Tan and her mother speak to each other is in a form of broken English, an English that comes from an immigrants comprehension of the language. This â€Å"private† language is like a secret code between Tan and her mother. It is the tie that kee ps them connected and close. Richard carries a different perspective of his private language. For Richard there is no explanation or clarification needed. Spanish is what his family speaks at home and to each other. His language is what ties him to his roots and his colture. Rodriquez identifies with his Spa... Free Essays on Language Differences Free Essays on Language Differences The essays â€Å"Mother Tongue† by Amy Tan and â€Å"Public and Private Language† by Richard Rodriquez are recollections of both authors personal battles with language. Their stories are very different but each essay attempts to illustrate the personal struggle the two of them went through to discover their voice. The two of them battled with all the forms of language they had to learn. In their lives they were faced with having two forms of language, the â€Å"private† language that was only spoken at home and the â€Å"public† language that was for everyone else. For Richard Rodriquez his struggle was with English and Spanish alone. Amy Tan, on the other, was faced with different levels of English. In both essays there is discussion of public and private language. Each author defines it differently. Amy Tan defines her â€Å"private† language as a language of intimacy. â€Å"The English I spoke to my mother† (21). It seems to be what she uses with those that are within her family spectrum. â€Å"My husband was with us as well, and he didn’t notice any switch in my English. And then I realized why. It’s because over the twenty years we’ve been together I’ve often used that same kind of English with him, and sometimes he even uses it with me. It has become our language of intimacy, a different sort of English that relates to family talk, the language I grew up with†.(4) The way that Tan and her mother speak to each other is in a form of broken English, an English that comes from an immigrants comprehension of the language. This â€Å"private† language is like a secret code between Tan and her mother. It is the tie that kee ps them connected and close. Richard carries a different perspective of his private language. For Richard there is no explanation or clarification needed. Spanish is what his family speaks at home and to each other. His language is what ties him to his roots and his colture. Rodriquez identifies with his Spa...