How Does Groupthink Affect Decision Making in an Organasation Essay

Colman(2001) in a dictionary of psychology defines groupthink as â€Å" a collective pattern of defensive avoidance , characteristic of a group decision making in organisations in which group members develop rationalisations in supporting illusions of their own infallibility and invulnerability within the organisation . †p. 318. It entails that there is more of concurrence than critical thinking when making decisions in an organisation. This article will discuss how groupthink can affect decision making in an organisation such as school, political party and airtel (Business Company). Groupthink can cause poor performance or even failure to achieve the organisations objectives. Its tendency of seeking concurrence can for example make a wrong decision triumph (Shepherd, 1964). For instance, a cafeteria committee can change the supplier of food stuffs. If the group does not objectively consider the decision may end up selecting poor food stuffs that may be unhealthy to the students. Coon and Mitterer (2007) state that the urge to make such decisions may arise from the need to maintain others approval even at the cost of critical thinking. In apolitical party groupthink results in poor allocation of resources. For example, parties spend a great deal of resources of University Party Wings at the expense of the grassroots electorate. It a phenomenon that protectors of their group do not scrutinise critically but merely sustains the tradition due to failure to see other alternatives that could be available. Groupthink creates failed systems in organisations (Harvard business School, Online). Institutions are likely to repeat or continue of ineffective projects. Members of a group converge their opinions without objective analysis (Brown, 1965). This results in no consultations as outer groups are seen as enemies. They also feel to be infallible. A failed system is thus likely to emerge due to groupthink. For instance, airtel introduced some irrelevant airtime bundles which they had to reverse after some time because they discovered that they made two identical bundles. In a school as an institution, a possible example of how groupthink can affect decision making is that some students in class may yield to groupthink. Teachers have to note the enormous ability of students to influence others in decisions. Through groupthink learners might agree on a wrong decision or force others to agree (Gage, 1995). Learners may thus fail to grasp the intended learning outcomes. Groupthink also affects decision making in organisations in the way that solutions that are initially presented by most members are never re-examined to seek out less obvious shortfalls and strengths. They even fail examine those original points that were supported by the majority. This leads to decisions that result in costly mistakes. For example, there could be an element of groupthink in primary schools who force learners to pay money to access the free primary education. The teachers claim that the money is for the salary for watchmen among other claims, yet it is clear that that is the duty of government. The results in such primary schools has been increased abscondment let alone drop outs. Similarly, some primary school committees have decided to compel learners to be fetching firewood for the as School Feeding Programme. This costs students time and the rationality of the decision is questionable. The other way in which groupthink affects decision making in organisation is that decisions are centre around the control of one person usually a leader who protects the group from adverse information that might undermine the existing complacency. Direct pressure is also mounted on any member who might hold dissenting views on consensus opinion (Colman, 2001; Weiten, 2007). This automatically rules out comfortable participation from members there by compromising the credibility of an rganisation’s decisions. This in turn blocks communication flow which is vital in any organisation. For example, in Political Parties such tendencies lead to divisions manifested in emergency of mutinies such as that of United Democrat Front earlier this year when others went on with the Convention while other shunned it. In conclusion, groups are supposedly thought to have high likelihood of making brilliant decisions yet this is not always the case (Cartwright and Zander, 1968 cited in Levine and Moreland, 1995). It has been found that groupthink can affect the decision making in organisations that lead to poor decisions. Costy mistakes are made, objectives are not effectively achieved and groups fail to change a failing policy. Whyte (1989) points out that the wish for unanimity overrides members motivation to realistically appraise alternative courses of action. Thus, it can be argued generally that the effect of groupthink in organisation decision making is that it declines the quality of decisions tha t compromise the ambitions, efficiency and productivity of an organisation.

Character Sketch of Patrick Jane in The Mentalist

Character Sketch – Patrick Jane, The Mentalist Patrick Jane is the primary character on The Mentalist, a dramatic series that uses the homicide team of the California Bureau of Investigation (CBI) to showcase Jane’s talents. He has a reputation for his observation skills, which are highly useful when questioning suspects and witnesses, even though he can appear unfeeling when interacting with the recently bereaved. He frequently challenges his superiors, and does it in a mocking manner.Jane’s career prior to the CBI gig was as a charlatan, actually. He was the kind of entertainer that people in need actually believe in – they think he can speak to their dead relative and deliver messages. He was really just reading the audience members’ body language, and filling in the blanks from his imagination. In his interactions with his co-workers and suspects he comes off as quirky, but is quite often spot-on. Otherwise the series wouldn’t have lasted four years (so far).His has a great sense of humor, and is mischievous, even though he is still in mourning for his wife and child, who were murder victims. This creates a high degree of tension and may act as Jane’s motivation in his quest to find the murderer in each episode. Jane is a very attractive white male in his thirties. He’s of average height, with a slim build. His curly, light-brown hair is a little too long to be considered professional. While he always wears a jacket and usually wears a vest, he never wears a tie.Jane’s unconventional attire matches his apparent need to flaunt authority by baiting his superiors. When Jane is trying to work out a problem, he lies on the couch in the the detectives’ area, shuts his eyes, and lets the pieces fall into place. Quite often he sits on that same couch to have a cup of tea. We never see him drinking anything else. Jane is a round character, as we see his struggle to deal with his loss, to develop h is relationships with co-workers, particularly Lisbet. She may be, at some point, a love interest.There are flashbacks to illustrate (showing us) the horror he encountered when he discovered his family’s bodies, and we see that he’s getting emotionally healthier, though he still struggles. His character is dynamic in that regard, yet consistent in his appeal, his cockiness and his mockery of those who take themselves too seriously (telling us his personality traits). He is plausible to the degree that it is possible there’s a person like this – he isn’t superhuman, or anything. He’s just so charming, and so sympathetic, that it’s unlikely that any of us will meet anyone like this. It does work, though.

Ap Us History Outline Essay Example for Free

Ap Us History Outline Essay General Information: Use your review text, other history text books, and/or reliable internet sources to complete each of the five (5) outlines over U.S. history from exploration through the Civil War. Be sure that all terms are defined and specific information is added under each topic. We will use this work in class over the first several weeks of school. All of this work should be placed in a folder and turned in by the designated date. This should be typed. You will need much more space than provided below. Adjust the spacing when you type your work. Native Cultures & Early Exploration Do you remember this topic from elementary or middle school? Brainstorm any information that you remember. In 1492 Columbus sailed the ocean blue The first people to discover the land were the nomads that traveled over the â€Å"land bridge† from Asia The Mayflower brought the first British pilgrims The Native Americans showed the pilgrims how to grow maize Pilgrims introduced the plague to Native American Christopher Columbus and his crew landed on the Canary Islands on October 12, 1492. List regions of North America and the Native groups living in each— Southeast- Cherokee,Seminole, Apalachee, Catawba Chickasaw, Choctow, Coushatta, Creek, Houma, Lumbee, Miccoukee, Timacu Mid Atlantic/Northeast- Piscataway, Lenape, Powhatan, Yaocamico, Algonquin, Iroquios, Narrangansett, Nipmuc, Peqet, Pokanoket, Wampanog Great Lakes- Cippewa, Fox, Shawnee, Huron, Kickapoo, Menominee, Miami, Oneida, Onondaga, Ottowa, Potawatomi, Winnebago Great Plains- Sioux, Blackfeet, Cheyenne, Comanche, Arapoho, Crow, Dakota, Kiowa, Mandan, Osage, Pawnee, Wichta Califrornia/Mountains- Paiute, Shoshone, Cahuilla, Chemihuevi, Chumash, Costanoan, Diegueno, Hupa, Luiseno, Maidu, Pomo, Ute Pacific Northwest- Spokane, Aleut, Athabascan, Chinook, Colville, Coos, Nez Perce, Puget Sound Salish, Quileute, Quinault, Tlihgit, Tulalip Southwest- Navajo, Apache, Pueblo, Hopi, Keres, Maricopa, Mojave, Tohono O’odham, Pima, Yaqui,Yuma, Zuni The Columbian Exchange refers to the transcontinental movement of animals, foods, plants, and diseases after 1492. II.Age of Exploration (1420 – 1620) What developments/changes BEFORE this time that had an impact on exploration? Political—the unification of small states into larger ones with centralized political power Technological— compass, astrolabe, cross staff, hour glass, the Spanish galleon Religious— the Protestant Reformation as a result of The Renaissance Military— The change in the way people payed for wars and the sudden need for a strong military was western Europe’s response to the challenges of warfare in the new age of gunpowder weapons Economic—The rise of capitalism created a largely urban middle class committed to expanding markets. As more people looked to buy products and goods, national and international trade interests grew . Nations/ Their explorer(s)/Major Reasons& Motives for Exploration/Location/Success Portugal—& Treaty of Tordesillas Ferdinand Magellan- first voyage around the world Christopher Columbus- discovered the New World; landed in Bahamas on first voyage Bartholomeu Dias- lead voyage around Cape of Good Hope (southern tip of South Africa) Pedro Alvarez Cabral- first European to see Brazil The Treaty of Tordesillas was created to settle disputes between Spain and Portugal over land discovered by Columbus. Motives: Wealth – gold, silver and spices Power Increasing opportunities for Portuguese trade Spreading the Catholic Religion Spain— Christopher Columbus- financed by Spain and claimed much of the New World in the name of Spain Vasco Nunez de Balboa- crossed the Isthmus of Panama and claimed the Pacific Ocean for Spain Juan Diaz de Solis- landed in Uruguay Hernan Cortes- founds Veracruz in Mexico Motives: Wealth Power Prestige Increasing opportunities for Spanish trade Spreading the Catholic religion Building a Spanish Empire France— Jaques Cartier- landed in Newfoundland Samuel de Champlain- established Port Royal in present day Nova Scotia, founded Quebec Sieur de Bienville- founded New Orleans Motives: Gold Expand French Empire To capture and sell American animals furs in France 4. England— Sir Frances Drake- circumnavigates the world Sir Walter Raleigh- The Discovery of Guiana and establishing the Virginia colony of Roanoke Island Sir Humphrey Gilbert- established St. Johns, Newfoundland Motives: Wealth (failed) Competition with Spain and France Spreading Christianity C. Other European powers exploring the New World/Areas Claimed/Goals of Colonies Dutch- Henry Hudson was an Englishman who was sent by the Dutch; he landed in Labrador and headed south, down the coast. Colonized New Netherlands and New Amsterdam II.English Colonization in North America escape religious prosecution  economic (business investments overseas)  place to work for unemployed  more political freedom Royal- owned by the King Proprietary- land grants from British Government to colonists Self-governing- set up ongovernment seperate of the crown (King at any time could revoke  privillage and declare the colony a Royal Colony) Thirteen English Colonies (complete chart in detail) Be able to compare/contrast. |Region |Date of Founding|Founder or People associated with Early History of Colony |Environment, Economy, and Labor of the Region;| | | |Notes on the Early History of the Colony: Why it was founded, |the role of religion in these colonies | | | |significant characteristics, terms, and/or laws | | |New England | |Plymouth and |Plymouth – 1620 |101 colonists left England to head for the Virginia Colony in 1620. |It was very cold in the New England colonies, | |Massachusetts |Mass. Bay – 1630 |However, the Mayflower was blown off course and landed in |but this helped prevent the spread of deadly | | | |present-day Cape Cod and the town they established on December 21, |diseases (although it did not stop it). The | | | |1620 was named Plymouth. |harsh winters killed many. The land was | | | | |covered in hills and rocky soil. There was a | | | | |short growing season, so the natural resources| | | | |such as fish, whales, trees, and fur became | | | | |the most reliable so urces for survival. The | | | | |towns were to support the religion of the | | | | |Puritans, who did not tolerate other religious| | | | |views. | |Connecticut |1636 |John Winthrop, Thomas Dudley, and other non-separatist Puritans | | | | |founded the colony. The first Governor, John Endecott, was a staunch| | | | |Puritan who percecuted anyone with opposing views. | | |Rhode Island |1636 |Roger Williams was a Protestant minister who sought separation from | | | | |the Church of England. Eventually he was tried in Salem and banished| | | | |for his views. He purchased land from the Narragansett Indians and | | | | |founded Providence, Rhode Island. | | |New Hampshire |1623 |In 1623, under the authority of an English land-grant, Captain John | | | | |Mason sent David Thomson, a Scotsman, and Edward and Thomas Hilton, | | | | |fish-merchants of London, with a number of other people in two | | | | |divisions to establish a fishing colony in what is now New | | | | |Hampshire, at the mouth of the Piscataqua River | | |Middle Colonies | |New York |1625 |Originally call ed New Netherlands, was so named in honor of the Duke|These colonies are politically, socially, and| | | |of York to whom the territory was granted on its conquest from its |economically diverse. The rich land in | | | |first settlers, the Dutch who came for trade and furs. |Pennsylvania and the easy access to the ports | | | | |are the reason the Middle Colonies are | | | | |agricultural and industrial. This region | | | | |experienced the most religious pluralism. | |New Jersey |1664 |New Jersey was sold by the Duke of York to George Carteret and Lord | | | | |Berkley. It was colonized majorly for farming and trade. | | |Pennsylvania |1681 |The King granted the land to William Penn, who set sail from England| | | | |August of 1682 with Captain Greenway and the soon-to-be colonists, | | | | |who were mostly Quakers. | | |Delaware |1638 |Peter Minuit was Dutch and formed New Sweden as part of New | | | | |Netherland. When Charles II, King of England gave his brother James,| | | | |the Duke of York, New Netherland, James demanded and received its | | | | |surrender. He renamed New Sweden to Delaware | | |Southern Colonies | |Maryland |1632 |The territory was named Maryland in honor of Henrietta Maria, the |The founders of the se colonies came for the | | | |queen consort of Charles I. It was founded by Lord Baltimore, |sole purpose of making money. The area is | | | |because he had attempted to settle in Virginia and was rejected for |almost entirely agricultural, so there was a | | | |being a Catholic. |high need for slaves due to the increasing | | | | |demand for labor. The most common religion was| | | | |Anglican. | | Jamestown and Virginia |1607 |Virginia was founded by John Smith, who is remembered for his role | | | | |of establishing the first permanent English settlement in America, | | | | |Jamestown. This was the first successful English colony, which did | | | | |very well. With all of it’s exports and imports, it was able to | | | | |sustain itself very easily | | | | | | | |North Carolina |Carolinas – 1663 |The Carolinas were settled by proprietors, who were successful due | | | |NC – 1712 |to the rich soil for farming and the available wildlife for fur | | | | |trading. | | |South Carolina |Carolinas – 1663 |The Carolinas eventually split into the modern day North and South | | | |SC – 1712 |Carolinas because of general cultural differences. | | |Georgia |1732 |James Oglethorpe was a British general from London, who joined the | | | | |army when he was 18, in 1714. After he had become successful in the | | | | |army, he was assigned to establish a new colony, Georgia, in 1732. | | | | |This was the last English colony to be founded in America. | | | | | | | General Social/Cultural Information Problems of early settlement – Jamestown, Plymouth, and Massachusetts Bay: Jamestown- difficult to produce harvest in the virginian soil spent all of their time looking for gold when they should have been preparing for survival had disputes with natives over land Plymouth- the settlers arrived at the very beginning of winter there was such a severity of food shortage that people resorted to cannibalism. Massachusetts Bay- most succumbed to disease or starvation Religion – ideas, important people and events: The colonies were mostly that of Puritans, Quakers, and Anglicans. Social ideas: If a man was absent from church, he would not be given his provisions for the week. For multiple offenses he could be whipped, or even hanged. Major cities: Philadelphia, New Amsterdam (changed to New York in 1674), Albany, Boston, Newport, Jamestown, Williamsburg, Annapolis, Charleston, Savannah, Providence, Baltimore, and Alexandria Labor: Law/politics/major steps toward democracy: Economic issues/relations with Britain: (define mercantilism) Problems a.Health: people often died of starvation or malnourishment. Disease also spread rapidly in the colonies. b.Cities: settlers had to develop their own form of government that was acceptable to the people of the colony. Indians (New England Indian Wars of 17th century): Both the Europeans and the Native Americans had a sense of superiority over  each other. This of course resulted in many disputes over things such as land. The New England Indian Wars of the 17th century include the French and Indian War of 1688-1763. These battles were a struggle for land and power, and resulted in the near-death of the indigenous tribes of eastern North America. Rebellions against authority: (Bacon’s, Leisler’s, Paxton Boys, Regulators, Pope’s) Bacon: In the New England Indian Wars of the 17th century, Nathaniel Bacon, Jr. rebelled against the authority of Governor of Virginia Sir William Berkley. After Bacon began his own group of volunteer Indian fighters and raiding a couple Indian camps, he was taken by Berkley’s men and made to appologize to Berkley and the council for his actions. After immediately being pardonned, Bacon demanded to be named a General in the forces against the â€Å"hostile natives†. Reluctantly, Berkley g ave in. The Enlightenment/Great Awakening: French and Indian War/Seven Years War (1754 – 1763)—For any war that we study, you should gather the following information. This will NOT be repeated on each outline. Major cause(s) (incl. â€Å"spark†): The French and Indian War resulted from ongoing frontier tensions in North America as both French and British imperial officials and colonists sought to extend each country’s sphere of influence in frontier regions. Major people/heroes (and what they did): William Johnson- He was one of the most successful negotiators with the Native Americans. Later he would lead the British to victory in the Battle of Lake George in 1755. William Pitt- Pitt assumed leadership of the British ministry in December 1756. His aggressive new policies for the war were a crucial part of turning the tide in Britain’s favor in the latter half of the war. James Wolfe- Major British general who led the British to victory in the Battle of Quebec. Major events (incl. turning point & concluding battles): May 28, 1754 George Washington lead a successful surprise attack on the French. His troops retreat and establish Fort Necessity. July 3, 1754 The French take Fort Necessity June 17, 1755 The British seize Acadia May 8, 1756 Britain declares war on France August 8, 1757 The commander-in-chief of the French forces, Louis-Joseph de Montcalm takes Fort William Henry. The infamous massacre occurs. The turning point began when William Pitt took over wartime operations Advantages/disadvantages of each side: France had the support of most of the Native American tribes. New France’s government was more uniform, and was able to communicate to different areas more efficiently. While the colonies were more separate and had issues with communication, their navy was much stronger and had a population 15 times that of New France, so it was easier for the British to defend attack. The French kept most of their forces in Europe, hoping a victory closer to home would be more beneficial. They sent barely any troops or supplies to their colonies. The British were almost always able to effectively blockade ports and prevent the trade and distribution of French trade and supplies. In The French and Indian War there were 13,000 casualties and 40 million Pounds were spent. G. Results (treaties, land changes, PERMITS): The French and Indian War resulted in The Treaty of Paris. Ap Us History Outline. (2016, Mar 17). We have essays on the following topics that may be of interest to you

Sociology 461 (400 level) - Philosophy of Arts 1st paper Coursework

Sociology 461 (400 level) - Philosophy of Arts 1st paper - Coursework Example There are many philosophers who have tried to define what art is but in this case, the essay will explore the perspectives of Immanuel Kant and Leo Tolstoy. The essay will show that even though the two philosophers have very different approaches to art, they do agree on its universality in that it transcends contexts. First, the definition of art will be discussed followed by how the philosophers judge art and lastly, conclusion. What is art? Immanuel Kant (1724-1804) defines art as â€Å"production through freedom† (Kant 182). This means that a piece of work must be ground on reason or rational considerations. As such, productions which develop without any rational considerations for Kant cannot be regarded as art but as works of nature. For example, the bees honeycombs though they seem well designed are produced through nature and not human design or action hence cannot be regarded as art. For Kant therefore, human intellect is crucial for a piece of work to be produced and be regarded as an art. Art is therefore a skill of human beings developed through experience or after several trials hence perfection. Art is also liberal in nature according to Kant hence does not need compulsion but free spirit (p. 183). Leo Tolstoy (1828-1910) on the other hand, refutes this claim by Kant of art being the product of a rational mind and emphasizes on the role of emotions. For Tolstoy, art is an activity aimed a t conveying the feelings or â€Å"means of communication among people† (Tolstoy 37). In this case, the artist is given great importance in that he or she has to arouse feelings in people. Art is therefore, a human activity whereby one man consciously conveys to others, by certain external signs (movements, lines, colours, sounds), the feelings he/she has experienced (p. 37-40). The audience thus must be infected by those feelings and experience them otherwise the piece of work would cease to be an art. For example, a poem should

Radicals and organ donations Essay Example | Topics and Well Written Essays - 1250 words

Radicals and organ donations - Essay Example This aspect developed as a result of minimal democratic support that eventually resulted to the development of the Vietnam in the year 1965. Ideas such as the classical economics of Smith and Ricardo, Marxism in late 19th century and the issue of the U.S military involvement in Vietnam were common in the development of RAD. Currently we note that RAD tends to be one of the continuing factor of RAMM and DAMM, which are the major building elements of the RAD streams. These factors have indicated the influence of RAD; including ecological economics, feminist economics and evolutionary economics. Through these aspects we note that the interpretation of RAD has been developed in relation to the major key elements currently. Organ donation has developed to be one of the current technological developments of modern medicine. Organ transplant entails of donation of various biological tissues and organs from a living or dead human being to a recipient who requires the organ. According to a research, it has been noted that the deceased donors tend to provide kidneys, liver and lungs that have saved many lives globally. The donors can also provide tissues such as skin, veins, corneas and the heart valves. Although many patients ability to benefit from the donation is usually hindered by the shortage of the organs, many individuals have been fascinated by the process. We note that organs are donated based on strict rules that consider if they physically match with the recipient’s tissues and blood type (United States, 2008). The physicians also consider the medical aspect used, the waiting duration and the level of the sicknesses. The organ donations rules tend to have developed over the past couple of years with an aim to ensure that physician are keen while conducting the transplants. Organ donation ensures that the basic needs of patients in the society are fulfilled, a factor that contributes to RAD supporting Organ Donation.

Project Management Essay Example | Topics and Well Written Essays - 1500 words - 1

Project Management - Essay Example Most pizzerias do not use a high temperature brick oven for their day to day operations due to their size, weight, and high operational costs. The difference of D'Angelo Pizzeria lies in the patent pending light weight, efficient, modular oven design exclusive to our company. Patents can protect a product innovation up to 20 years (Ustpo, 2008). By combining the freshest ingredients our specially developed fermented dough formula and our revolutionary patent pending oven design, D'Angelo Pizzeria provides the genuine pizza experience with subtle aromas and outrageous flavors that only a properly prepared pizza and high temperature brick oven can provide. D'Angelo incorporates fully equipped high end pizza parlor with three independently controlled high temperature pizza ovens on an 8'x12' temperature controlled trailer. Our exclusive franchising concept will bring to the masses a superior quality pizza experience at a competitive price. The priority of the project is to open the two pilot stores, not selling franchises since it is going to take six months to a year prior to the company been ready to sell franchises (Projectkickstart, 2011). Objectives: The goals of this project are: 1) To finalize the design, build and test the D'Angelo Pizzeria final trailer prototype and custom outdoor enclosed tarp for customer seating with a capacity for 24 individuals 2) To design and test manufacturing operational procedures and build all the necessary operating infrastructure for the manufacturing of trailers, distribution and customer service of the D'Angelo Pizzeria franchise. 3) To interview and hire the necessary personnel for the operations of the D'Angelo Franchise division. 4) To document and write the franchisee, employee, training and operational manuals for the D,Angelo Pizzeria franchise. 5) To build the trailers for the first two corporate owned D,Angelo Pizzerias 6) To launch the grand opening of the first two corporate owned D'Angelo pizzerias and franchise division. In order to complete the project a we will need to concentrate our efforts in the following important items or deliverables (Desouza, 2008): 1) Outline and design layout and equipment requirements for final trailer prototype. 2) Investigate and compare available suppliers for equipment and raw materials requirements. 3) Acquire bids from chosen suppliers for the unmodified trailers ,equipment, food and general staples. 4) Sign a contract with one supplier for the trailer and equipment and two suppliers for food and operational supplies. 5) Finalize enclosure design for the three modular ovens to be used in the chosen trailer model. 6) Order trailer, equipment and materials from chosen suppliers for leasehold improvements and final trailer prototype. 7) Acquire bids and choose one fabrication shop for custom sub assemblies to be used in the trailer. 8) Lease suitable commercial building for the warehouse and manufacturing area and corporate facilities for D'Angelo Pizzeria corporate headquarters. 9) Incorporate D'Angelo Pizzeria Co. and franchise division. 10) Interview and hire personnel for D’Angelo Pizzeria manufacturing and corporate operations. 11) Assemble final trailer prototype and perform testing and debugging. 12) Choose and document final design parameters for trailer after prototype testing. 13) Establish and

Discuss the statement In the future, hierarchical management Essay

Discuss the statement In the future, hierarchical management structures will be less evident. The management of intellectual - Essay Example 23). Hierarchical management structure is an organisational structure in which each and every entity of an organisation follows a top down hierarchical level. It is true that the trend of hierarchical organisational management structure is shifting towards the flatter organisational management structure to enhance organisational communication process between several departments of the organisation (Boxall and Purcell, 2007, p. 98). There are several advantages and significance of flatter organisational structure. It enhances decision making process, operation cost control and better communication between the employees of different departments in an organisation. The essay will discuss on the statement that â€Å"In the future, hierarchical management structures will be less evident†. ... These economic issues and fluctuating global economic environment will motivate the leaders or the management of the organisation to adopt flatter organisational management hierarchy (Buchanan and Huczynski, 2010, p. 31). Each and every organisation is trying to focus on the business operation cost reduction. It is highly important for the organisations to control the operation cost in order to ensure high profit maximisation (Buelens, Sinding, Waldstrom, Krietner and Kinicki, 2011, p. 69). Several leading organisations are adopting flatter organisational structure in order to reduce business operation cost. A flat organisational structure can be defined as an organisation structure with limited or no management level between the staff and management level employees. Flat organisation structure deals with low employee supervision (Burke, 2012, p. 36). The leaders in a flat organisation use to promote the employees and involve them in the decision making process. Organisation can gain huge benefit through flat organisational structure in this economic distress period. The major objective of flat organisation structure is to eliminate the level and salaries of middle management. This reduction in management level and salaries help the organisation to reduce overall business operation cost and budget of an organisation (Dawson, 2003, p. 84). In addition to this, flatter organisational structure elevates the level of responsibility of the employees in an organisation as this organisational structure brings more efficiency in the organisational communication process (Maylor and Blackmon, 2005, p. 89). As this organisational structure removes the excess layers of a management structure, the speed of coordination and communication

Consumer Proection Essay Example | Topics and Well Written Essays - 1000 words

Consumer Proection - Essay Example First of all, according to the Consumer Credit Act, a credit organization is now allowed to come into repossession of the goods bought in credit in case all payments and installments are performed in due time. According to the latest amendments, included into the Consumer Credit Act 2006, all agreements higher than  £25,000 are now subject to the regulation by this act and thus the Act statements can be used in Dove’s attempt to protect its rights. The case is in fact connected with the fact that the seller has used the misleading trade descriptions when selling the goods to Duck, and the seller in this case is subject to penalties according to the Trade Descriptions Law 1968. - the clause 17, on the basis of which Chicken Credit Ltd demanded the payment of the sum of  £13,629 in addition to the arrears of installments of  £5,043 is not valid, as Dove Ltd didn’t initiate the termination of the agreement, and just wanted the changes of the agreement on the basis of the dysfunction of the goods (the lorries) he has bought. - the clause 17 may be subjected by Dove Ltd under the statements and regulations of the Unfair Contract Terms Act as the agreement terms, which break the consumer rights of Dove Ltd and thus demand too high arrears sums and installments in case he decides to terminate the agreement with Chicken Credit Ltd; - even in case the actions of Chicken Credit Ltd were partially right, they had to keep to the term of 14 days before repossessing the goods, according to the Consumer Credit Act 2006. As far as the 14 days term has not been followed by the Chicken Credit Ltd after having sent the notice to Dove Ltd, it may address the court in his request to recognize the credit company’s actions as illegal. The same actions may be performed in relation to the clause 17 of the credit agreement, though there are some notes, which should be taken into account by Dove Ltd. First of all, under

Asphalt Essay Example | Topics and Well Written Essays - 250 words

Asphalt - Essay Example The power racer accomplice can also further be synchronized with the contemporary era Play station 4 and X-box 720 for maximum gaming practice and online arcade gaming using the iPhone. This has made gaming places such as supermarkets, Casinos, and arcades to become famous (Saponas et. al, 2008). The racer accessory is further associated with other gaming favourite apps that include Fifa 15 and Taken as a result of its ease of game control. As a means of customizing buyer needs and wants, the power racing has been produced in different colours and shapes that meet customer demands. The organization aims to be a multi-national company and attain market leadership in the gaming industry on a global scale. The mission of the business is to become the leader in the gaming industry (Saponas et al, 2008). Saponas, T., Lester, J., Froehlich, J., Fogarty, J., and Landay, J. (2008).Ilearn on the iphone: Real-time human activity classification on commodity mobile phones.  University of Washington CSE Tech Report

Portfolio risk management Assignment Example | Topics and Well Written Essays - 2250 words

Portfolio risk management - Assignment Example In this relation the overall comparison of the risk and return from the different investment alternatives that comprise of real estate investment and portfolio without real estate investment and correlating the same with the current weighing of investment certain result has been derived. In this relation, making the portfolio of investment through 10% investment in real estate along with 41% in SCS and 49% in LTGB is regarded to be highly efficient investment alternative or portfolio, as the relative return of such portfolio is 2.61 and risk is 4.50. Moreover, the overall analysis reveals the fact that different portfolio provides different risk and return scenario but investing the RE with relative weighting of 0.10 in RE, 0.41 in SCS and 0.49 in LTGB will provide relative lower amount of risk and higher return over the similar risk category. This is why the particular portfolio has been mentioned. Portfolio is an important concept of financial management, which refers to the combination of various investment tools including stocks, bonds, shares, mutual funds, and cash that varies based on the income, budget and period of the investor (Reilly & Brown, 2011). Additionally, the art of selection of appropriate investment approach in terms of minimal amount of risk along with maximum return is regarded as the approach of portfolio management. Moreover, the key importance of portfolio management is to derive superior investment plan for the investors. Furthermore, managing the entire budget of investor based on the different alternative will enable them to minimize the risk in comparison to investing the fund in single investment proposal and increase the likelihood of profitability. In relation to the portfolio theory, it has been assumed that investor is risk adverse and they like to select the investment proposal from the given set of investments with equal rate of return havin g minimal amount of risk. The ability to combine and form the investment based on

Alfred Doolittle’s Lower Class Representation In Pygmalion Essay Example for Free

Alfred Doolittle’s Lower Class Representation In Pygmalion Essay Alfred Doolittles Lower Class Representation in Pygmalion Realist author George Bernard Shaws Pygmalion challenges Englands upper class to realize the pointlessness of their flamboyant lifestyle and pokes fun at this society. Shaw writes to expose the differences in the lifestyles of the social classes and how different characters react to their status. Shaw uses Alfred Doolittle and his social status to depict a character that freely accepts his status and his reaction to eventually moving up social classes. Because of his dislike of middle class morality, appreciation of and the freedom that accompanies his lower social status, and his eventual climb into the upper class, Doolittle presents a desire to remain in undeserving poverty. Doolittle, throughout the play, demonstrates a dislike for middle class morality. Before he becomes rich, Doolittle defines middle class morality as an excuse of never giving me anything. Doolittle represents a dislike for middle class morality and wishes for cheerfulness and a song like those in the upper classes. Doolittle believes middle class morality claims its victims. Eventually Doolittle becomes a victim when he is given money to lecture. Doolittle becomes apart of the upper class but dislikes being viewed as a member of this society. Doolittle says that he believes lower class men look at him and envy him. Doolittle says he, in fact, will look down to the lower class helpless and envy them. Doolittle does not like the upper classes and middle class morality. Throughout the play, Doolittle presents characteristics that suggest he accepts his current lower class social status and enjoys the freedom associated with his status. When asked by Colonial Pickering if he has no morals, Doolittle Stokes 2 establishes his status and distance from upper class characteristics by replying, I cant afford them, Governor. Doolittle comments to Henry Higgins that undeserving poverty is my line. Doolittle represents an individual who lives in poverty and accepts his current placement in society. He continues by saying, Im undeserving; and I mean to go on being undeserving. Doolittle does not want to be apart of the upper class society because so much is expected of them. Doolittle is extremely happy being in his current social status. He says, They (millionaires) dont know what happiness is. Doolittle believes the upper class is unhappy because they are living an imaginary life. Doolittle does not wish to be apart of the upper class because he would be expected to speak and act properly in order  to retain his status within the class. Doolittle, an undeserving member of the lower class, is comfortable and happy in his lower class social situation. Doolittle suddenly encounters money and is thrust into upper class society. Doolittle receives a share in a trust and is required to lecture for three thousand a year. Doolittle freely accepts the financial gain but soon realizes the social obligations that accompany it. Doolittle says, I have to live for others and not myself. Individuals who seek to take advantage of his newfound wealth surround him. Doolittle believes that everybody touches me for money. Doolittle sights one example of how individuals with money are treated better than those without money. Before he had money doctors would shove him out of the hospitals. Once the doctors realize Doolittle has money they cant live unless they looks after me twice a day. Doolittle, who retains the personality of a Stokes 3 member of the lower class, is upset because people are using him for money. Doolittle feels his is now expected to provide for everyone. Doolittle says he was happy before he got the money. Doolittle, who is propelled into the upper class, recognizes people are using him. He wishes and strives to remain the same person he was before he encountered money. Doolittles dislike of middle class morality, appreciation of and the freedom that accompanies his lower social status, and his eventual climb into the upper class presents his desire to remain in undeserving poverty. Doolittle, a character who emerges financially from poverty to being rich, strives to maintain his lower class status and the way of life they accompanied this status. Shaw, by using Doolittle, successfully presents a character that is happy with and comes to appreciate his status in the lower class society and wishes to remain in that social class.

Factors Affecting Health Essay Example for Free

Factors Affecting Health Essay Define the following key terms: ï‚ · ï‚ · ï‚ · Ageing population Youthful population Dependency Ratio www.geobytesgcse.wordpress.com Youthful Population – a population with a very high proportion of young people under the age of 15 Fold along here Dependency Ratio – the ratio between economically and noneconomically active population – normally expressed as a % www.geobytesgcse.wordpress.com Yr 10 Population St Ivo School Geography Department GCSE REVISION What is meant by the term ‘dependent population’? Yr 10 Population www.geobytesgcse.wordpress.com Fold along here The people who are not working and are therefore dependent on the economically active population (ages 0-14 and 65+) www.geobytesgcse.wordpress.com St Ivo School Geography Department GCSE REVISION Define the term Infant Mortality. The number of infants dying before the age of 1 per 1000 live births per year Fold along here Yr 10 Population www.geobytesgcse.wordpress.com www.geobytesgcse.wordpress.com St Ivo School Geography Department GCSE REVISION Population Distribution – how a population is spread out over an area Population Density – the number of people living in a given area 2 (people per km ) Fold along here Define the following key terms: ï‚ · ï‚ · ï‚ · Population Distribution Population Density Population Explosion www.geobytesgcse.wordpress.com Population Explosion – a very rapid increase in population www.geobytesgcse.wordpress.com Yr 10 Population St Ivo School Geography Department GCSE REVISION What does DTM stand for and what is it used to show? DTM stands for The Demographic Transition Model – this is a model showing population change over time in relation to changing birth and death rates and the consequent change in overall population Fold along here Yr 10 Population www.geobytesgcse.wordpress.com www.geobytesgcse.wordpress.com St Ivo School Geography Department GCSE REVISION Natural Decrease – the fall in population caused by deaths exceeding births. Natural Increase – the rise in population caused by births exceeding deaths Fold along here Define the following key terms: ï‚ · ï‚ · ï‚ · Natural Decrease Natural Increase Depopulation www.geobytesgcse.wordpress.com Depopulation – a decline in the numbers of people living in an area due to out-migration or changes in birth and death rates. www.geobytesgcse.wordpress.com Yr 10 Population St Ivo School Geography Department GCSE REVISION Population Growth Rate – the increase in population over a year – normally expressed as a % Population Structure – the age and sex composition of a population Fold along here Define the following key terms: ï‚ · ï‚ · ï‚ · Population Growth Rate Population Structure Population Pyramids www.geobytesgcse.wordpress.com Population Pyramid – a diagram used to show the age and sex of a population (also known as age-sex pyramids) www.geobytesgcse.wordpress.com Yr 10 Population St Ivo School Geography Department GCSE REVISION Name the following case studies: ï‚ · ï‚ · ï‚ · A case study to show the consequences of an ageing population A case study to show the consequences of a youthful population A comparison of population structures between a LIC, MIC and HIC www.geobytesgcse.wordpress.com A case study to show the consequences of an ageing population – UK – East Devon (Torbay) A case study to show the consequences of a youthful population – The Gambia (Africa) Fold along here A comparison of population structures between a LIC, MIC and HIC – Philippines, Brazil Germany www.geobytesgcse.wordpress.com Yr 10 Population St Ivo School Geography Department GCSE REVISION Name the following case studies: ï‚ · ï‚ · ï‚ · ï‚ · A case study to show how a government has reduced the birth rate An example of a densely populated area of the UK A case study to show how a government has set out to increase the birth rate (pro-natalist policy) An example of a sparsely populated area of the UK www.geobytesgcse.wordpress.com ï‚ · ï‚ · ï‚ · Fold along here ï‚ · Yr 10 Population A case study to show how a government has reduced the birth rate – China’s One Child Policy An example of a densely populated area in the UK – London and the South East A case study to show how a government has set out to increase the birth rate (pro-natalist policy) – Singapore’s â€Å"3 or more Policy† An example of a sparsely populated area of the UK – Scottish Highlands www.geobytesgcse.wordpress.com St Ivo School Geography Department GCSE REVISION The world’s population is unevenly distributed Some areas have a high population density eg, Asia / 2 Europe (75+people/km ) Other areas of the world have a low population density 2 e.g. Canada/Greenland and Russia (

Problems of the Credit Rating Agencies

Problems of the Credit Rating Agencies Introduction On July 18th, 2007, while referring to adjustable rate mortgages (ARM) (also known as subprime mortgages) bonds, an executive of the Fitchs residential mortgage group said We continue to be confident that AAA ratings reflect the high credit quality of those bonds. Since then, between 2008 and 2009, 140 US banks declared bankruptcy while the International Monetary Fund now estimates world banks global losses due to loans and credit derivatives to approximate $4.1 trillion. If the subprime crisis has been the crisis of credit, it has also been the crisis of credit rating. Credit Rating Agencies (CRAs) (namely the tree major ones: Fitch Ratings, Moodys Investors Service and Standard Poors) have been under a lot of criticism in the recent credit crisis. Indeed, not only have CRAs been accused of making errors of judgment in rating structured debt securities, but also of operating a biased business model in an oligopolistic market. As a matter of fact, bond issuers, government regulators and investors have now lost their blind faith in credit ratings and therefore feel the compelling need to change, reorganize and restructure the CRA current business model and industry. Even though CRAs cannot be considered the sole responsible agent for the credit crisis, they have encountered great irregularities and problems: How can they be fixed? What solutions should be implemented to prevent the next credit crisis from happening? How has the credit and CRA crisis affected the leveraged finance industry? To tackle this question, we will first analyze what criticisms credit rating agencies have been subject to and what problems have been identified in the recent years. By evaluating different solutions and suggesting necessary changes, we will then examine how the credit rating business model and market structure could be improved. Finally, as it directly relates to the credit market and CRAs, we will study the impact of the crisis on the leveraged finance industry, with a special focus on leverage buyouts, buyout debt financing and structured finance. Section 1: Current problems of the Credit Rating Agencies business model Though many other players, such as lenders, borrowers, regulators, issuers, and macro factors, can be associated with and blamed for the current credit crunch, Credit Rating Agencies (CRAs) have been accused of being the main actors behind the malfunctioning and mispricing of the credit markets. Not only have CRAs been blamed for misrating complex structured debt products[1] and other subprime mortgage related products, but also of operating a biased business model in an oligopolistic market. In this first section, we will summarize these three main accusations and analyze in detail the validity of each argument. Solid and pertinent recommendations can only be made if the true problems have been identified. By analysing Moodys financial statements, we can observe that between 2002 and 2006, Moodys profits nearly tripled because of the growth of structured products, accounting for more than 40% of its total revenues in 2006, and the higher margins charged for these products.   Given the revenues generated, one would expect that CRAs did control the rating of these products. Now, after the default rate on adjustable rate mortgages (ARMs) reached its peak during the crisis and collateralized debt obligations (CDOs) became worthless, CRAs defended themselves by explaining how sophisticated these products were and how hard it was to rate them. This leads us to question, did CRAs rate products they did not understand? Before the mortgage market collapse, analysts like John Paulson expressed incredulity at what appeared to be a complete mispricing of the structured debt products and began predicting that the market would crash: For me it was so obvious that these securities were completely mispriced and we were living in a casino. I think the other players that were involved in the business got caught up in the exuberance, [] in the competition to increase their underwriting volumes, [] to increase their fees. They were very focused on annual earnings, quarterly earnings and annual bonus pools and with the amount of the liquidity, everyone got caught up in what became a massive credit bubble. (Distressed Volatility 2009) Mark Zandi, an economist at Moodys, noted in a report on U.S. Macro Outlook published in May 2006, that household debt was at a record and a fifth of such debt was classified as subprime. Unfortunately, the economic forecasting division is separate from the ratings division of the corporation. But how could CRAs not foresee the crisis and the flaws of their valuation models? The model used to rate structured products has been criticized for two reasons. First, Moodys rating model for assessing CDOs is a statistical model reliant on historical patterns of default. The main assumption behind this model is that past data would remain relevant, even during a period in which the mortgage industry (and its related products) was undergoing drastic change. Second, the use of this model revealed a large failure of common sense (Lowenstein, Triple-A failure 2008)by rating agencies as very complex securities shouldnt have been rated as plain vanilla bonds, for which the model was designed. CRAs were checking their statistical model, but not the underlying assets. As a consequence, Moodys noted in April 2007 that the model was first introduced in 2002. Since then, the mortgage market has evolved considerably with the introduction of many new products and an expansion of risks associated with them (Mason 2007) and thus revised the model it used to evaluate subprime mortgages. Similarly, in a response letter to Roger Lowensteins Triple-A failure article, Vickie Tillman, Executive Vice President of SPs Rating Services claims that her companys rating model includes both historical data and informed assumptions to assess credit quality. This adjusted model doesnt seem to solve the accuracy problem. Deven Sharma, president of SP, admits [] historical data we used and the assumptions we made significantly underestimated the severity of what has actually occurred (Sharma 2008) Even though one can acknowledge the greater complexity of CDOs and the difficulty of accurately assessing the risk profile of these products, the CRAs defence doesnt seem justifiable given the source of wealth these structure products represents to them. One would expect that CRAs would only provide a service they understood. There is still plenty of room for improvement in their models. Research led by Skreta and Veldkamp (Skreta and Veldkamp 2009) suggests that the complexity of any given asset hasnt increased but rather that the more complex types of assets became more prevalent. Indeed, when combined with the phenomenon of rating shopping, where issuers shop from one CRA to another to pick the best rating possible, asset complexity can lead to rating inflation and biased judgment. As a consequence, failure to address potential sources of bias inherent in the business model of the ratings industry could generate future problems. This discussion leads us to the conflict of interest inherent in the issuer-pay model, the second main accusation in our analysis. The conflict of interest between CRAs and bond issuers has been identified as the main problem because it drives the entire CRA business model. This conflict of interest between rating agencies and the bond issuers from whom they receive fees undermines the CRAs ability to give an unbiased assessment of credit risk. There are two types of potential conflicts of interest inherent in the issuer-pay model that may arise from the activities of the CRAs. The first is that rating agencies may be enticed to give better ratings in order to continue receiving service fees. Since CRAs revenues come from issuers, this conflict can lead to an agency problem. The second potential conflict relates to the consulting services CRAs provide to help the issuer to better design products to meet their models different thresholds. In both cases, CRAs run the risk of the issuer going to a different rating agency, which leads to the phenomenon of ratings shopping. Up until the 1970s, the investor-pay business model of credit rating agencies was straightforward: investors bought a subscription to receive ratings. It was during the 1970s that the business model evolved into an issuer-initiated ratings system where the issuers of securities began paying to be rated. Free riding by investors, leading to a reduction in profits for credit rating firms, was the main reason for this transition. As White (White 2002)observes, this shift also coincided with the rise in popularity of the photocopying machine. Although the issuer-pay business model has been around for more than forty years now, concern over ratings bias only recently emerged. Indeed, the conflict of interest, amplified by the rise of complex structured financial products, calls into question the objectivity of ratings that are critical to the efficiency of the market. (Levitt, Conflicts and the Credit Crunch 2007) In response to these accusations, CRA executives have maintained that the issuer pay model is not contradictory to the efficiency of their business model. It seems that a firm cannot support both issuers and investors simultaneously. In fact, the Report of the Staff to the Senate Committee on Governmental Affairs during the Enron case[2] cited empirical evidence: The conflict appears to be particularly acute for large important issues such as [] Enron []. In these cases investors desperately need guidance from credit rating firms, but often do not get it because of pressure from issuers, [] and in some cases, SEC officials. (Egan and Jones 2010) However, CRA executives have also asserted that CRAs have nothing to benefit from adjusting their ratings to their clients needs because they have a reputation to uphold. In June 2007, SP claimed that reputation is more important than revenues (Becker and Milbourn 2009) thus asserting that maintaining a good reputation had been a sufficiently strong motivating factor for CRAs to keep their high levels of efficiency and objectivity. In reference to this assertion we can ask ourselves: is reputation a sufficient motivating factor to maintain discipline among rating agencies? As a matter of fact, research led by Mathis, McAndrews and Rochet (Mathis, McAndrews and Rochet, Rating the Raters: Are Reputation Concerns Powerful Enough to Discipline Rating Agencies? 2009)has suggested that this argument is only valid when a large fraction of the CRA revenues comes from other sources than the rating of complex products. When the reputation of a CRA is good enough, and rating complex products become a large source of revenues (more than 40% of Moodys revenues), the CRA will become too lax and inflate its ratings. This mechanism builds on a three-step reputation cycle, ultimately resulting in crises of confidence where a single default provokes a complete loss of reputation by the CRA. First, the CRA tries to build and improve its reputation and gain investors trust by being very strict. Then, once a positive reputation has been gained, the CRA issues more ratings and takes advantage of its reputation. This is when CRAs become more lax and the risk of default incre ases.   Ultimately, when default occurs, there is a crisis of confidence: the opportunistic CRA is detected and its reputation is very negatively affected. This reputation cycle, which is also a confidence cycle, explains why opportunistic CRA are hard to spot and why ratings biases only recently emerged as a concern in response to inquiries from Vailiki Sketra (Sketra and Veldkamp 2009).[3] To exemplify this concept of reputation cycle, scholars find that CRAs are more likely to understate credit risk in booms than in recessions (Bolton, Freixa and Shapiro, The Credit Ratings Game 2009). Moreover, reputation seems greatly affected by competition, as it will reduce the effectiveness of the reputational mechanism for two main reasons.   First, reputation is only valuable if there are future producer rents. As a result, the incentive for maintaining a good reputation is reduced by competition. Second, from a microeconomical approach, if the demand elasticity facing individual sellers is higher in a competitive market, the temptation to either reduce prices or otherwise attract business may be stronger which undermines the quality of output. Therefore, the conflict of interest is not solved by reputation concerns. The second aspect of the conflict of interest relates to the collaboration between CRAs and issuers when designing a debt security. Lewis Ranieri, a pioneer in the mortgage bonds market, once said The whole creation of mortgage securities was involved with a rating (Norberg 2009). As a consequence, starting in the 1990s, CRAs started to offer consulting and advisory services to issuers to improve their ratings; a process that involves extended consultations between the agency and its client. The collaborative process that ensues is as follows: issuers propose a rating structure on a pool of debt. Then, the CRA will usually request a cushion of extra capital, known as an enhancement, to meet the necessary conditions for a specific rating. This practice can be dangerous because it is the CRAs responsibility to ensure that the cushion is big enough to safeguard the product, but issuers will try to minimize this extra capitalization in order to maximize their profit margin. Inside the CR As, consultants and raters were meant to be strictly separated by a Chinese wall'[4]. Regardless, CRAs (namely Moodys) began providing unsolicited ratings and offering consultancy services to improve them. Mr. Arthur Levitt, a former chairman of the Securities and Exchange Commission, pointed out in a recent article in the Wall Street journal that the conflicts of interest arising from such activities are the central problems with CRAs: [Credit rating agencies] are playing both coach and referee in the debt game. They rate companies and issuers that pay them for that service. And, in the case of structured financial instruments, which make it possible to securitize all those subprime mortgages, they help issuers construct these products to obtain the highest possible rating. These conflicts are hard to spot because transparency among these agencies is murky at best, and currently it is difficult to hold these agencies accountable for any wrongdoing (Levitt, Conflicts and the Credit Crunch 2007) The agencies are aware of the conflicts that are inherent to their business model but they claim that they are doing their best as to avoid them. In a letter to Roger Lowensteins Triple-A failure article, Vickie Tillman, Executive Vice President of SPs Rating Services defends her companys business models and practices: At Standard Poors, we recognize the business model we use may raise potential conflicts of interest. Thats why we have always had rigorous policies in place to manage conflicts, and why we currently are implementing additional measures to further strengthen the independence and quality of our ratings opinions. [] the role ratings firms play in the market [] is to provide independent assessments of the creditworthiness of bonds.  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   In order to make up for these practices, the US Securities and Exchange Commission (SEC) issued a release in February 2007 proposing rules which would identify the issue of unsolicited credit ratings (those not issuer-initiated), as unfair, coercive, or abusive, and thus would prohibit Nationally Recognized Statistical Rating Organizations (NRSROs) from releasing unsolicited credit ratings.   Even though the SEC intervention seemed necessary, it didnt change the industrys business model: by 2007, the mortgage boom had already reached its peak. Regardless of the criticism surrounding the relationship between issuers and rating agencies, the fact of the matter is that they were simply bringing bonds to market based on market demand, which clearly indicates a crisis of the issuer-based model. CRAs misbehaviour has played a central role in the current subprime mortgage crisis. As such, the governments and regulatory bodies should take steps forward to correct the current business model. We shall therefore investigate alternatives to this model in Section 2 of this paper. This conflict of interest leads us to ask, who finally owns the ratings? The evidence regarding whether rating agencies bend to the issuers will is mixed. A paper written by contract-theory scholars, Faure-Grimaud, Peyrache and Quesada (Faure-Grimaud, Peyrache and Quesada 2007) investigates this issue by looking at corporate governance ratings in a market with truthful CRAs and rational investors. They show that at equilibrium, in a monopoly, a CRA will fully disclose information but that issuers may prefer to suppress their ratings if they are too noisy because full disclosure is impossible even when firms have the possibility for ownership (i.e., the right to disclose the rating). Additionally, they find that competition between rating agencies can result in less information disclosure since CRAs make zero profit and fully disclose information on firms that have values higher than the CRAs marginal observation cost. In fact, the current business model seems to favour the banks in their quest to receive better ratings. Dr. Joseph Mason compared default rates for corporate bonds to equally BAA-rated CDOs before the bubble burst and found that the CDOs defaulted more than ten times as often (Mason 2007). While, as we discussed earlier, it may be true that CDOs are much more complex securities than plain-vanilla bonds, another interpretation of the data is that CRAs were much more lax when dealing with a Wall Street securitizer as client. But who can blame them? While it is true that on the traditional side of the business (unsophisticated bond rating) CRAs have a large variety of clients (virtually every corporation and municipality that issues public debt), this is not the case in structured finance. On the contrary, the panel of clients is much smaller and the fees are much bigger. The only issue is that the client pays only if the CRA delivers the desired rating. If they do not, the client can e ither adjust the numbers or take another chance with a competitor, a process known as ratings shopping. Brian Clarkson, former president and CEO of Moodys Investors Service acknowledged, There is a lot of rating shopping that goes on. What the market doesnt know is whos seen certain transactions but wasnt hired to rate those deals (Bolton, Freixa and Shapiro, The Credit Ratings Game 2009). In fact, an important feature of the credit ratings market microstructure is the capacity for a security issuer to choose which ratings to purchase. During this process, a structured debt product is issued and the issuer typically proposes a structure to a CRA. The issuer then asks for a shadow rating, which remains private between the CRA and the issuer, unless the issuer pays to make the rating official. Such choices can reflect both explicit and implicit shopping for desired credit reviews and induce a selection effect in the rating process. Selection highlights the relation between the decision about whether to rely on unsolicited ratings and the potential for ratings shopping, illustrating how different types of potential conflicts of interest in the credit rating process could interact. Indeed, shopping for ratings is a practice at the heart of the different conflicts of interest we mentioned above, as it partly invalidates the reputation argument because there seems to be a trade-off between reputation concerns and the risk for ratings shopping. It also encourages CRAs to strengthen their ties and relationship with issuers, most notably by offering a wider range of services. In an interesting paper, Skreta and Veldkamp (Sketra and Veldkamp 2009) examine cherry-picking in ratings, especially for securitization, by issuers who shop for the highest ratings in order to obtain the hi ghest price when selling to naive or little-informed investors. They highlight the influence of risk aversion in motivating the purchase of multiple ratings. Indeed, because investors are risk-averse, they will try to invest in the best-rated securities for an expected yield without having to asses the risk of every security they may be interested in, and thus rely heavily on ratings. The more ratings they have for a security, the more likely they will be to invest in it. Skreta and Veldkamp (Sketra and Veldkamp 2009) conclude that when combined with asset complexity, rating shopping can lead to rating inflation and thus biased judgment. To support that evidence, Kurt Schacht, managing director of the CFA Institute Centre explained that CRA executives [] were concerned about the hype and insinuation that CRAs easily inflate their ratings in response to pressure from issuers and issuers, implicating the integrity of their process and ratings. In exploring that topic, we were very surprised by the results of our member poll where some 211 of the 1,956 respondents said they have indeed witnessed a CRA change ratings in response to external pressures (CFA Institute 2008). As a consequence, not only does ratings shopping enhance ratings distortion, but it also corrupts the entire rating process by giving issuers an incentive to trick their clients into buying overrated securities. A third and final issue to investigate is the lack of competition in the credit-rating industry.   According to The Economist (The Economist 2007), Moodys and Standard Poors dominated the industry by controlling about 80% of the total market in 2007. The third-place competitor, Fitch, had only about 15% of the total share that same year. The current form of these institutions received legal status when the SEC introduced the notion-barrier of the NRSROs in 1975. The rest of the market is divided among only a few other institutions that have received legal status.   While alluding to the dominance of Moodys and Standard Poors in the credit market, the U.S. Department of Justice has referred to the credit-rating industry as a partner duopoly (Laing 2007). As noted by Jonathan R. Laing, a partner duopoly differs from an oligopoly because the partners in the duopoly do no face fierce competition against each other because ones good fortune in winning a piece of business is typicall y followed by the others receiving the same deal at the same lush fee level (Laing 2007).This duopoly has proven quite profitable, as Moodys operating margin is typically around 50% (if not more) better than Microsoft, Accenture, Intel, Nike or Coca-Cola. In fact, according to Congressman Henry Waxmans statement during the Congressional hearings in October 2008, Moodys had the highest profit margin of any company of the SP 500 index for five years in a row. An important complaint arising from this situation is that the lack of competition permits the main players to shirk, engaging in less effort and research that if they were true active competition (Coffee 2006). It may therefore seem that a free market would ensure competition among its CRAs guaranteeing a higher quality and lower price of the ratings. For that reason, competition from new agencies might create a healthy diversity of opinion, leading to more accurate assessments of debt issuers default probabilities Many scholars have analyzed whether this industry structure contributes to the efficiency of the global credit market. We shall investigate in further detail what seems to be the optimal market structure in the next section by examining the solutions and changes necessary to combating the various issues we have so far considered. Other scholars recognize that the existing duopoly may present risks to the market, especially since the two-rating norm is still in full force. Furthermore, since the CRA business model is reputational-driven business, new competitors may face very high barriers to entry. The CRA industry could therefore not allow for more participants. On the other hand, some scholars suggest that the SECs role in both creating and perpetuating this duopoly by which establishing the status and necessary requirements to become a NRSROs, and an official registry. Since competition can both be seen as a problem and as a solution to the CRA industry and business model, we shall now examine the different initiatives that can be undertaken to improve the overall model and functioning of the credit rating market. Section 2: Solutions to fix the identified problems The subprime crisis has brought to light the poor performance of CRAs in rating structured financial products and reminded investors of CRAs past poor performance in predicting the East Asian crisis and the collapse of Enron[5]. Either directly by regulations, or by market force, there are strong signals that the credit rating business is about to change. The main accusations we previously addressed and the perception that CRAs contributed to the financial crisis led to various investigations and calls for reform. In this section, after briefly presenting CRAs reaction to criticism, we will first analyze the different alternatives suggested by scholars and experts to the current business model and the overall industry structure. We will then study the different reforms and regulatory recommendation that have been suggested to the current business model that would improve CRAs effectiveness and enhance the overall market efficiency. Finally, once these changes examined, from a regulat ory standpoint, we will observe the measures recently adopted by both the European Union and the US government (and regulating agencies), determine how the approaches differ and how necessary regulation is. CRAs reaction to accusations CRAs have responded to the allegations with cries of innocence.   If some rating firms claimed that they did nothing wrong and have indicated that they will cooperate openly in any investigation that comes their way, others   did acknowledge some mistakes and have announced the intention to reform their practices.   For example, spokespersons for Moodys, Standard Poors and Fitch have claimed that their organizations will demand more data and more verification and will subject their analysts to more outside checks (Lowenstein, Triple-A failure 2008) However, some may say that CRAs might have implemented these changes simply to avoid further criticism and regulatory intervention.   Indeed, as Lowenstein claims, none of this [] will remove the conflict of interest in the issuer-pays model .   We shall further analyze the case for self regulation in our analysis. In their effort to defend themselves, the CRAs have sought to minimize their role and influence within the financial industry.   According to a spokesperson for Moodys: We perform a very significant but extremely limited role in the credit markets. We issue reasoned, forward-looking opinions about credit risk. [] Our opinions are objective and not tied to any recommendations to buy and sell (Benner and Lashinsky 2007) The consensus of these critics is that the agencies dropped the ball by issuing investment-grade ratings on securities backed by subprime mortgages they should have known were shaky (Benner and Lashinsky 2007) Rather than accept responsibility for their own lack of diligence, the major CRAs have sought to lay the blame on the mortgage holders who turned out to be deadbeats, many of whom lied to obtain their loans (Lowenstein 2008).   Of course, it must be noted that other groups and individuals share the responsibility for the global financial downturn.   As Laing says in regard to CRAs, they were just one link in a subprime production line that stretched from sleazy storefront mortgage brokers, corrupt appraisers and avaricious originators to fee-crazed securitizers and, yes, mendacious borrowers (Laing 2007).   Nonetheless, as Laing further notes, CRAs must be seen as key enablers in the problems development.   i) New agency industry structure and business model Proposals have been made to improve the credit-rating system and thereby reduce the problems we identified. First, it seems that CRA need more independence. As Laing suggests it, many of the changes implemented in the auditing industry with the Sarbanes-Oxley Act could be similarly carried out. (Even though one may discuss whether this Act has improved capital markets transparency or not, one must note it has enforced the implementation of internal control, due diligence and transparency procedures in firms)For instance ratings agency employees should be prohibited from accepting any favors (whether it is money of gifts) from their clients and the leading analyst should rotate from a client to another with a certain frequency and should wait at least one year before joining their clients firm (an issuer or investment bank in this case) Laing also suggests that the 2003 SEC proposal, which prohibits the linkage of analyst compensation with new business development, could be reenacted. First, CRAs should be more transparent in two distinctive ways. The global credit market needs greater transparency about CRAs overall rating model: rating assumptions, methodologies, but also the fee structures, and past performance. To be more transparent CRAs should follow stricter disclosure requirements (as mentioned in the Rating Agency Act in 2006). Professor Charles W. Calomiris (Calomiris 2009) suggests that, more disclosure could also be required for publicly traded companies with rated debt when filling in debt-offering documents Particularly, in order to prompt CRAs to reduce or eliminate their conflicts of interest, they should disclose any structuring service or consulting-related activity (and the fees related to such practices) provided to a company in connection with the rating of fixed-income securities Second, there is a strong need, expressed by both scholars and analysts, for a clear distinction between the rating of structured products and traditional debt products and thus different rating symbols could be used so as to avoid confusion. The issue is, not all AAA-rated securities are created equally. As demonstrated in the current credit crisis and as proven by Drexel University finance professor Joseph Mason, CDOs receiving a Baa rating from Moodys were more than ten times as likely to default as similarly rated corporate bonds (Mason 2007). As a matter of fact, despite the identical symbols, structured products typically do not have the same risk profile as traditional corporate bonds. By nature, whereas corporate default can be estimated by very few factors (namely the level of leverage of the firm and its capacity to generate stable cash flows from operations), default on structured debt is dependent on hundreds or thousands of individual defaults [e.g., an underlying mortga ge pool] that are estimated given some distribution. They are not the same analysis so they should not be the same ratings. (CFA Institute 2008) A different rating scale according to the risk profile of the products could be used as to not mislead investors into buying misrated securities. As an alternative, Professor Coffee at Columbia University suggests the SEC could define a maximum default rate for different class of ratings, so that if a CRAs ratings were to exceed SEC parameters, it would loose their NRSRO status. (Coffee 2006) Building on this, the entire rating nomenclature could be changed and ratings could be expressed quantitatively as to avoid grade inflation in CRAs opinions. Indeed, in contrast to numerical estimates (of the probability of default (PD) and loss given default (LGD)),which do have objective and quantifiable meanings, letter grades leave more room for sub

The Importance of George Wilson in The Great Gatsby Essay -- Great Gat

The Importance of George Wilson in The Great Gatsby   Ã‚  Ã‚   F. Scott Fitzgerald's The Great Gatsby is a superbly written and an intrinsically captivating novel that deals with the decline of the American Dream and how vapid the upper class is. To illustrate and capture the essence of these themes, Fitzgerald uses characters Gatsby, who epitomizes the actual American Dream, and Daisy, who is based on the ideal girl. Yet, as these characters grasp the topics Fitzgerald wants to convey, there is something inherently like missing from the story as a whole. To fill this void, Fitzgerald utilizes minor characters as a means to move the plot along, develop characters further, and build upon the themes present in the novel. One such character is George Wilson.    George Wilson is the naà ¯ve husband to Myrtle Wilson, the woman having an affair with Tom Buchanan, who is the "brute of a man, a great, big, hulking physical specimen"(Fitzgerald 16) husband to Daisy Buchanan, the woman whom Jay Gatsby, the main character, is in love with: a very removed yet significant role in the story. Evidently playing the role of the common man, in a story revolving around wealth and possessions, George Wilson is the owner of an auto body shop and is described as a "spiritless man, anemic and faintly handsome"(29). Wilson's common man image helps to further develop the theme of Wilson is deeply in love with Myrtle to a point where he is paranoid of losing her. "`I've got my wife locked in up there,' explained Wilson calmly. `She's going to stay there till the day after tomorrow and then we're going to move away"(143).    Truly a character that centers on irony, Wilson's wife is indeed having an affair with Tom Buchanan. ... ...murder of Myrtle, neither of which he committed. After fulfilling his vengeance, George sees no need to continue his life and kills himself, as his only reason for living was his love for the late Myrtle. As well as being a climatic point in the plot, the murder of Gatsby concludes the prevalent theme of the decline of the American Dream.    George Wilson's role, however small it may be, in F. Scott Fitzgerald's The Great Gatsby is nonetheless clearly one of consequence and importance. Through Fitzgerald's use of Wilson, major characters, prevalent themes, and points in the plot are developed further. And, ultimately, through these characters that at first seem superficial to the story, Fitzgerald is able to weave a complex and charismatic novel.    Work Cited Fitzgerald, F. Scott. The Great Gatsby. London: Penguin Books, 1990.      

Analysis of Writing Womens Worlds by Lia Adu-Lughod Essay examples --

Analysis of Writing Women's Worlds by Lia Adu-Lughod Writing Women's Worlds is some stories on the Bedouin Egyptian people. In this book, thwe writer Lia Adu-Lughod's stories differ from the conventional ones. While reading, we discover the customs and values of the Bedouin people. We see Migdim, a dominator of the people. Even though her real age is never given, one can assume that she is at the end of her life, maybe in her mid to late eighties. Migdim's life seems to include all the changes inside the Boudin community. Throughout the narrative of her life, we are able to realize the life way and changes within this exclusive society. One of the more in depth stories that Migdim told was how she refused the marriage to the man her father chose for her. It is customary for a woman to get married to her paternal first cousin. Her female relatives made her the tent she was going to live in and brought her some bridal gifts. Migdim refused to eat as well as covering herself in color in order to holdup the wedding. After much objection, Migdim did not marry the man that her father chose. Actuality, her father failed twice trying to arrange a marriage for her. All the way through Migdim's incident with arranged marriages, we can understand the old customs that has to do with marriage. It is obvious that, although women were believed to be obedient, they were capable to effectively convince men. Yet, today there seems to be a sign toward polygamous marriages that are eventu...

Hacking :: Essays Papers

Hacking Computer hackers in today's world are becoming more intelligent. They are realizing that people are constantly developing more hack-proof systems. This presents the hackers with a bigger challenge and a bigger thrill. The government is realizing this and is working on making harsher laws to, hopefully, scare the potential hackers. With the increase in hacking and hacker intelligence, governmental regulation of cyberspace hasn't abolished the fact that it's nearly impossible to bring a hacker to justice. Kevin Mitnick, a hacker who has yet to have a harsh punishment when caught, can somehow lower his punishment for his hacking crimes down to a couple months probation. When Kevin was seventeen, he was caught for breaking into a phone center in Los Angeles. He was tried and sentenced to three months stay in a juvenile detention center and a year probation. Kevin is a very intelligent man. He could use his computer skills in a good way by stopping other hackers. He didn't, so he faced the law many times. In all those times, he never spent more than a year in prison (Shimomura 1). Kevin was also a Phreak; a phone freak. He studied the phone system. He soon knew how to make free phone calls from payphones and how to crash a system. Kevin Mitnick has yet to be harshly punished for these crimes, which are very numerous (Shimomura 1). Another major player in the hacking industry is an unidentified man, identified by his pseudonym, or nick-name, Deth Vegetable. His group of hackers, Cult of the Dead Cow (cDc), is one of the oldest hacker organizations still in effect today. He is the leader and founder of (Cult of the Dead Cow). Cult of the Dead Cow is a leading group in the hacking industry; another leader that has fun with what they do. (Vegetable 1). They are a notorious group of hackers who have a couple problems; one of which is drugs. At a convention that the cDc holds for "some of the most notorious hackers from around the world" (Vegetable 1), one of the members of cDc said "Drugs and hacking go hand-in-hand" (qtd in Vegetable 3). Deth Vegetable said "Taking Drugs is like hacking your brain" (qtd in Vegetable 3). This is the way hackers are, they have fun in hacking, and the more they hack, the more fun they have. "If hacking is taking an electro-chemical computing device and altering it for your own enhancement, then taking XTC [, a type of drug,] is doing the same for your brain.

Tracer 480 Sc

Insecticide Tracer 480 SC MENU: What is it ? Tracer 480 EC is a suspension concentrate, with a short residual action acting as a contact and stomach insecticide, with trans – laminar properties for the control of insects on agricultural crops as listed. Tracer 480 SC EC’s active ingredient is Spinosad (Naturalyte) with a 480 g/l. active ingredient and, placed in the 5A chemicals group for agricultural use in S. A. Manufactured by Dow AgroScience S. A. (PTY) LTD. with registration No. L 6557 under act 36 /1947. . What does it do? Tracer 480 SC is a very specific type of chemical made from a fermentation process from wild mushrooms.The short residual of the product and the minimal effect on natural predators including predatory mites makes it well suited for use in IPM control programs. Tracer 480 SC sprays are rainfast within 1 hour after application. Apply Tracer 480 SC sprays, with equipment that is correctly calibrated and in good working order that provides full cove rage of the crop, for obtaining the best results against the pest trated for. Tracer 480 EC has a rapid knock down action on larva by contact, but contact and stomach action still provides the best results.Tracer 480 SC has some effect on certain predators & parasites in citrus, and Honeybees. (Read the label) List of Crops and pests on wich Tracer 480 SC is registered. Crops Apples Citrus Pests Thrips ( Various species ) Including Western Flower Thrip F. occidentalis Thrips,. ( S. aurantii ), (See Comments for IPM program ) Green Beans & Peas Potatoes Table Grapes Tomatoes Leafminer ( L. huidobrencis) Tubermoth larva ( P. operculella ) . Thrips Spp including Western Flower Thrip (F. occidentalis ) American leafminer ( L. trifolii ) A. Boll worm ( H. armigera )Obey the waiting periods on various crops, and follow the recommendation for resistance management as specified on the label. How and When to Apply: Tracer 480 SC. must be sprayed according to dosages and threshold values as s pecified on the label for the various crops. Read warnings on label for resistance strategy. Tracer 480 SC is not pH sensitive. . (Refer the label for the specific crops) Compatibility: Tracer 480 SC is compatible with B P Agripron Super, Light or medium narrow range sprays oils and Sanawett 90 –940 SL. Mixing instructions for tank mixes: Use clean water and fill spray tank up to one third and start agitation.Add different formulation types in the order indicated below, allowing time for complete mixing and dispersion after addition of each product. Allow extra mixing and dispersion after addition of each product. Allow extra mixing and dispersion time for dispersible granular (WG) products. Add following types in the following order: u Water dispersible granules. (After pre mixing with water. ) u Wettable powders. ( After pre mixing with water) u Tracer and other aqueous suspensions. ( Maintain agitation and fill spray tank to three quarters of total spray volume. Then add : u Emulsifiable concentrates. Spray adjuvants. ( Where Tracer 480 SC is needed to be applied in combination with a spray oil . first pre – mix the required volume of tracer 480 SC and spray oil, before adding to the spray water). u Foliar fertilizers. Application: All Tracer 480 SC spray applications must be made with suitable equipment that is in a good working order with good agitation, and correctly calibrated, to give the desired coverage for that particular method of application. Study and follow the recommendations on the label for spray volumes / Ha for row crops, fruit tree crops, deciduous fruit trees and table grapes. Read the label. ) Product Label: Download Now A specimen Product Label is available for download. Amongst other information, the Tracer 480 SC label outlines the current registered uses as well as rates, directions for use, general instructions, safety instructions and warnings. If you have any problems downloading the product label, please contact (01 2) 842 0200 during business hours and a copy will be faxed or mailed to you. Material Safety Data Sheet: Download Now A MSDS is available for immediate download.The MSDS identifies the chemical and physical properties of the product, outlines the health hazard data, precautions for use, safe handling and other information pertaining Tracer 480 SC insecticide. If you have any problems downloading the Material Safety Data Sheet, please contact (012) 842 0200 during business hours and a copy will be faxed or mailed to you. Where to get it: Tracer 480 SC is available from your local Agricultural Chemical Dealer. If you have any problems finding Tracer 480 SC please call (012) 842 0200 and they will bring you in touch with an Agricultural Chemical Dealer near you.

Employment Dispute Resolution in Singapore

1. Introduction a. Objectives The objective of the report is to provide a better understanding of the roles of the different courts in settling employment disputes. At the end of the report, reader would be able to find alternatives in settling employment disputes too. b. Methods of Research In this report, there will be real life case studies settled by different courts for settling disputes. These cases will help in illustrating the criteria for using the different courts. This report will also include internet research. 2. Causes of DisputesDisputes are caused when both parties, namely the employer and employee, cannot come into an agreement over monetary issues such as wages, benefits and overtime pay. Other circumstance will be a violation of health safety standards or law that can be common law or related to employment. Court cases will arise when these disputes are not resolved by conciliation or mediation. 3. Acts Relating to Employment There are two main acts that concern th e procedures of settling disputes. They are the Employment Act (EA) and Industrial Relations Act (IRA). c. Employment ActFor employees covered by the Employment Act, employment disputes will only be referred to the Labour Court for adjudication if they are unable to be resolved amicably through conciliation. Conciliation is a process which involves negotiations between the parties, then coming up with a mutually agreed decision that is fair to the parties involved. However, certain conditions must be satisfied, that the claim must be on matters arising not earlier than one year from the date of lodging the claim, and if the employee concerned had already left employment, the claim must be lodged within six months from the date of leaving employment.For managers and executives who are not covered by the Employment Act, the Ministry will consider providing mediation service to help resolve employment disputes on breach of contract or retrenchment. Mediation, a non-adversarial process, involves a mediator who will facilitate the entire process by helping the parties involved to first identify issues, negotiate, then find a practical solution and settlement that all parties involved are mutually agreeable to and able to accept. The mediation process is voluntary and considered on a case-by-case basis.There are certain requirements that will apply, which includes that the managers and executives are earning $4500 and below, the claim is in respect of a matter which occurred within the period of one year before the date that the issue is reported, if the claim is for items related to their termination (e. g. notice, the issue must be lodged within six months from the date on which the employee has left employment), and when viable alternatives such as private amicable settlement with employer had been exhausted.However, if either party fails to respond to mediation or if no amicable settlement could be reached after mediation, the matter will then be pursued in the civil court. d. Industrial Relations Act The Industrial Relations Act is passed in 1960 to provide a mean to settle employment disputes through collective bargaining which involves the union, conciliation and if unresolved, through arbitration held by the Industrial Arbitration court. This act aims to protect employees who are members of the union, allowing them to enjoy benefits covered under.Examples of union include the Food, Drinks and Allied Workers Union and Singapore Airlines Staff Union. This act limits the representation of employees who are in managerial and executive positions in certain areas. As defined in Section 30(1) of Industrial Relations Act, an executive employee is an employee who is employed in a managerial or executive position. They are not allowed to have representatives from the union to negotiate for retrenchment benefits upon retrenchment or resolving any dispute in the contract of employment.As this act is a bridge to the tripartite relationship in Singa pore, namely the government, employer and employee, there are certain procedures to follow in accordance to filing a case against the employer in a unionized organization. Preceding the filing, the employee would have to try to resolve the dispute with his immediate supervisor. Failing that, he or she can choose to bring the matter up to a member of the branch committee of the Union who would make a representation of the employee in resolving the dispute.In more serious cases, it can be brought up to the Human Resource Department by the General Secretary of Union and may even request a union management meeting with the management of the company. After all means, both parties will then refer the case to Ministry of Manpower for conciliation which is an invitation to negotiate under the Act. If an agreement is not reached by both parties, they can seek mediation by the Industrial Arbitration Court. 4. Different Courts The employees covered under the different acts will bring up their unresolved disputes to different courts. . Labour Court The Labour Court, deals with issues between employers and employees when they cannot be resolved through mediation or reconciliation at the MOM level. It is empowered by law to inquire into and arbitrate disputes between employees and employers. If mediation between the parties does not yield any agreement, for example, company not paying their employee salary or wrongful dismissal. The decisions or orders by the Labour Court are enforceable. It is also more viable for the employee to go through the Labour Court to settle employment disputes.However, the employees must not be earning more than S$2500 per month and are covered under the Employment Act. In the case of Vertex Global Holdings Pte Ltd, they owed an employee in arrears for about 2. 5 months. They gave the reason of having financial difficulties and were not able to pay the employee. The case was brought up to the Labour Court but they did not accept this explanation and the company was ordered to pay the employee amounting to $2820. In another case whereby a cook employed by VP Food Pte Ltd, he was terminated after 3 days.However, the employer was to pay him a sum of $235. 38 for work done but was underpaid. The reason that the employer gave was the distress caused by the cook’s harassment and there was no notice period specified. The explanation was rejected. The court held that Employment Act prevails and notice pay was payable In such cases, Labour Court comes into good use when dealing with unfair treatment from the company. But in recent years, the number of cases being brought up to Labour Court has decreased from 2009 to 2010.This shows that mediation or reconciliation has contributed to a huge part of the decrease in number of cases and they would be a better solution to problems than going to court. f. Industrial Arbitration Court Employment disputes, concerning union members, are not resolve under the conciliation of MOM are re ferred to the Singapore Industrial Arbitration Court (IAC) for further remediation. The IAC resolve disputes between employers and employees by offering the best possible solutions that are not only fair and beneficial to both parties but also in the interest of the community and country’s economic situation.The decision made by the Justice of IAC is concluding hence it cannot be disputed or appealed against. Voluntary and compulsory arbitration are the two ways that employers, unions or the government can refer an employment disputes to the IAC. Through the voluntary arbitration, employers and unions can refer their cases to the IAC through a joint or ex-parte application however this is only applicable when mediation at the MOM level is deem inconclusive. Under compulsory arbitration, a dispute is referred to the IAC when it is directed by the MOM or the President of Singapore.With increasing efforts from tripartite co-operation, Singapore has seen a great decrease in the n umber of cases being handled at IAC. The number of employment dispute cases averaged 10 per year and this indicate that that majority of the cases are being resolved at MOM and union level. This is essential as it helps to reduce unnecessary loss of work man hours and provide foreign investor’s confidence to invest in Singapore which in turn boosts the Singapore economy. Over the years, IAC has proven to be an effective way in solving disputes between employees and employers however there are cases when one party might feel otherwise.In the case of the dispute between Singapore Refinery Company and the representing union, the general secretary of SRCEU mentioned that â€Å"the union is disappointed with the ruling as a whole. † The case was brought up to the IAC for settlement as the union demanded salary and service increment for SRC employees. The president of IAC concluded that SRC will increase the service increment to 5 per cent plus $15 and 3 per cent salary incr ement. The union felt that the increment was too low and there was no effective communication between them and the company.This case show that whiles the IAC may provide the best feasible solution however it does not mean that it is the best fit for all the parties involved in the dispute. g. Civil Court The role of civil courts in resolving employment disputes is at minimal. Disputes raised by Professionals, Manager and Executives, also known as the PMEs, earning up to S$4,500, are solved in civil court. However, the Ministry of Manpower in Singapore is looking into resolving their salary disputes in Labour Court in the near future, limiting it to S$20,000.This allows PMEs to seek a lower cost alternative in resolving their disputes. For breaches in employment contract, it will still be handled by civil courts under law of contract. 5. Comparison h. Differences Between The 3 Courts | Civil Court| Labour Court| Industrial Arbitration Court| What they settle? | Employment disputes on breach of contract or retrenchment that cannot be resolved through mediation| Employment disputes that cannot be settled through conciliation| Trade disputes that cannot resolve through conciliation| How they settle? The role of Civil Court in resolving disputes is at minimal. Civil Court handles breaches in employment contract under law of contract. | The court has the authority to analyse and settle disputes(for example, unfair treatment from the company)| Resolve employment dispute through arbitration. The decision made by the Justice of IAC cannot be disputed or appealed against. | Criteria| PMEs(Professionals, Manager and Executives) earning up to $4,500| No legal representation is allowed in Labour Court.Employees not earning more than $2,500 per month and are covered under Employment Act| An executive employee who are employed in a managerial or executive position are not allowed to have representatives from the union to negotiate for them(retrenchment or disputes in the con tract of employment)| Who can go? | Managers and executives that are not covered under Employment Act| Employers and Employees under Employment Act| Employers and trade unions| In the past, Singapore employment law has been favorable to employers.However, the trend in recent years shows that enhancement of employee welfare and safety became more important. i. Singapore versus United States of America Both countries show various similarities of the roles of court in settling employment disputes. In United States of America (USA), employees are allowed to sue for dismissal due to discrimination of gender, religion, origin and many more. Employees are generally protected against discrimination under U. S Equal Opportunity Commission (EEOC).In Singapore, employers are encouraged to practice fair employment promoted by Tripartite Alliance for Fair Employment Practices (TAFEP). In both countries, employees are allowed to bring their employers to court in any event that there are employmen t disputes and unresolved by conciliation and arbitration. However, there are differences too. In United States of America, the government is more in favor of the employees whereas in Singapore, the government is more in favor of the employers.Also, in any disputes, the United States of America allows employees to hire a lawyer or an attorney to represent them in court. In Singapore, employees covered under different acts are represented by different people such as the union leader or even unrepresented in front of the labour court. The different courts are designed to different cases involving money or other disputes while all disputes in United States are brought to only one court. 6. Conclusion Through intensive research and findings, this report covers the key points on how the different courts resolve employment disputes.Although MOM have proven to be an effective medium in mediating disputes between employers and employees, there is still a need for the presence of court to re solve cases that are more complex. Case studies are being brought up in the report to further illustrate how disputes are being resolved at different levels. In referring to the SRC case, it clearly highlight that although the IAC has provided the best possible remedy however it does not satisfy all parties who are involved in the case.This means that better procedures can be considered to better understand the problems underlying between employees and employers. Through our recommendations, it will provide possible solution to further enhance the system that is already in place. The recommendation will not only look at the current problems but it will also propose how corporations can create a harmonious working relationship among employers and employees. 7. Recommendations