The Real Estate Investment Trust Finance Essay - Free Essay Example

Sample details Pages: 18 Words: 5489 Downloads: 7 Date added: 2017/06/26 Category Finance Essay Type Research paper Did you like this example? The origins of the real estate investment trust or REIT (pronounced reet) date back to the 1880s. At that time, investors could avoid double taxation because trusts were not taxed at the corporate level if income was distributed to beneficiaries. This tax advantage, however, was reversed in the 1930s, and all passive investments were taxed first at the corporate level and later taxed as a part of individual incomes. Don’t waste time! Our writers will create an original "The Real Estate Investment Trust Finance Essay" essay for you Create order Unlike stock and bond investment companies, REIT were unable to secure legislation to overturn the 1930 decision until 30 years later. Following WWII, the demand for real estate funds skyrocketed and President Eisenhower signed the 1960 real estate investment trust tax provision which reestablished the special tax considerations qualifying REIT as pass through entities (thus eliminating the double taxation). This law has remained relatively intact with minor improvements since its inception. REIT investment increased throughout the 1980s with the elimination of certain real estate tax shelters. Investments in real estate provided investors with income and appreciation. The Tax Reform Act of 1986 allowed REIT to manage their properties directly, and in 1993 REIT investment barriers to pension funds were eliminated. This trend of reforms continued to increase the interest in and value of REIT investment. Singapore REIT commonly referred to as S-REIT. There are currently 20 REIT l isted on the SGX, starting with CapitaMall Trust in July 2002. They represent a range of property sectors including retail, office, industrial, hospitality and residential. S-REIT hold a variety of properties in countries including Japan, China, Indonesia and Hong Kong, in addition to local properties. S-REIT are regulated as Collective Investment Schemes under the Monetary Authority of Singapores Code on Collective Investment Schemes, or alternatively as Business Trusts. S-REIT benefit from tax advantaged status. BACKGROUND OF STUDY Real estate is the worlds biggest business accounting for 15 percent of global gross domestic product (GDP) with assets of US$50 trillion compared with US$30 trillion in equities (Bloomberg, 2004). Moreover more than 50 percent of the worlds total assets are invested in direct real estate and securitized real estate investment vehicles such as real estate investment trusts (REIT) or real estate stocks. In the US, REIT was created by Congress in 1960 to allow small investors to have indirect access to large-scale income producing real estate investment. In Singapore, REIT offers an indirect vehicle for developers with large portfolio of low-yield income producing commercial properties to divest the asset holdings and unlock book values of the assets. This is an exit strategy for some developers to liquidate their equity stake in real estate projects, such as the divestment of Suntec retail mall and office towers via Suntec REIT that ended the joint ownership relationship of the 11 Hong Kong tycoons that initiated the project in 1988. The road to a buzzing REIT market today in Singapore was not smooth-sailing. The idea was mooted back in 1986, when Singapore property market was in doldrums following its first post-independent economic recession in 1985. The idea did not take off, but subsequently interest in REIT was re-ignited in late 1990s when the Monetary Authority of Singapore (MAS) revealed the guidelines for Property Funds in May 1999. The first attempt to launch a REIT was made by CapitaLand with its SingMall Property Trust (SPT) in November 2001, but the listing was aborted due to under-subscription of the new issues. Market timing and lack of tax transparency were cited by analysts as the main causes for the lukewarm response to the maiden S-REIT at the time. (Tien Foo, 2005) In July 2002, SPT was restructured with the same portfolio of three retail properties (Junction 8, Tampines Mall, Funan IT Mall) and re-launched under the new name CapitaMall Trust (CMT). The CMT IPOs were priced at $0.96, which was estimated at 2% discount to NAV compared to the earlier attempt that priced the IPO at 2.7% premium. The re-launch of CMT was a success with 5-time oversubscription, and it has been an important cornerstone in the REIT chapter in Singapore. Ascendas- REIT (A-REIT) was subsequently listed on the Singapore Exchange in November 2002, and it IPO was also over-subscribed by 5 times. As of July 2005, there are six REIT listed and traded on Singapore Exchange, and their details at IPO are summarized in Figure 1. 1.2 PROBLEM STATEMENT In effect, due to the fact that the inputted parameters are unstable, the estimated optimal allocations can differ markedly between periods. This is made even more acute as optimiser typically produce portfolios with extreme holdings in a limited number of assets with some assets taking zero weights while others have very large allocations. Black and Litterman (1992) refer to these as corner solutions. Although the resulting portfolios are optimal in the statistical sense, the results would be unacceptable to any prudent portfolio manager (Jorion, 1985). Such corner solutions portfolios quickly become sub-optimal with changes in the means over time, leading to a further reduction in ex ante performance. In addition such extreme portfolio allocations assets seem to be against the spirit of diversification, Michaud (1989). One way to control for such extreme holdings are to place constraints (upper and lower bounds) on the amount any one asset, or group of assets, can have in the optimum portfolio. Indeed papers such as Frost and Savarino (1988) and Chopra (1993) suggest portfolio optimisations, which are subject to such constraints, have better ex ante performance compared with unconstrained solutions. However, any constraints are likely to be arbitrary, leading to the results being hard to generalise. For example, one possible constrained portfolio is the equally weighted naive portfolio. Morrell (1993), however, argues that that it is generally not possible for property funds achieve equal-weighting in a portfolio and at the same time be represented in key market segments. In addition fund managers typically desire to maintain weights similar to a benchmark portfolio. Also at a practical level due to the indivisibility of property and the marked differences in lot size between say the office and industrial sectors an equal-weighted portfolio strategy would be impossible to implement. Thus an equal-weighted portfolio is therefore probably not a realisti c, or even a desirable goal of fund managers. In addition such an approach fails to tackle the fundamental reason for the major shifts in portfolio allocations over time, the instability in the sample means. In contrast the estimation error in variances and covariances is not as much of concern since these parameters are relatively stable over time and therefore are more precisely estimated. Thus the use of a portfolio selection procedure based on historical parameters that ignores the estimation risk due to the uncertain in mean returns is likely to produce sub-optimal results in subsequent periods. Indeed previous work on the application of MPT to the real estate portfolio shows this to be the case. 1.3 RESEARCH QUESTIONS 1.3.1 Are Economic effect really gives impacts to REIT? 1.3.2 Which Economic effect gives most changes to REIT indices? 1.4 OBJECTIVES OF STUDY Based on the research question, thus, two research objectives were formulated. 1.4.1 To find out whether the macroeconomic variables have impact on REIT performance. 1.4.2 To determine the macroeconomics factor that influenced most on REIT performance. 1.5 SIGNIFICANT OF THE STUDY The main purpose of carrying out this research is to determine the REIT performance and analyze it throughout the macroeconomics variables and how REIT react on it. The group of people who gain the benefit from this study: 1.5.1 Researcher The study gives benefits to colleges people and can be used in their study and references. 1.5.2 Company The research may give important information to the company and corporation who are related in REIT and sectors related to REIT activity for them make decision. 1.5.3 Investor Gives overview and guidelines before they can make decision on investment. 1.6 SCOPE OF STUDY The scope of this study would cover S-REIT index performance within ten years period. The macroeconomics variables that used in this study will be GDP, industrial production output, inflation, money supply, and exchange rate. 1.7 LIMITATION OF STUDY REIT performances are sometimes outperform the stock market. Due to the characteristics of real estate that have high in value, it will give the confident to the investors and increase the demand towards REIT. This kind of demands is tremendous but sometimes it will not following the macroeconomic variables trend. For example, for production variable, the production may not match the demand on REIT and it will gives unusual result in regression. What are the limitations of your study? Here, it seems that you are talking about an issue/problem statement. 1.8 DEFINITION OF TERMS 1.8.1 REIT/S-REIT Real Estate Investment Trust/Singapore REIT 1.8.2 S-REIT index FTSE ST Real Estate Investment Trust Index 1.8.3 GDP Gross Domestic Product 1.8.4 FX Foreign Exchange 1.8.5 M2 Money supply 1.8.6 GNP Gross National Product 1.9 SUMMARY Issuing of REIT is some kind of investment trust that have significant the assets hold are real estate compared to shares. Macroeconomic variables seem effect the REIT performance as well as the stock market, unit trusts, bonds, and other instruments. This study will examine the effects of microeconomic on REIT performance. Few variables are taken to test whether there are significant correlation between the dependent and independent variables. The dependent are S-REIT index and the independent variables are macroeconomic variables. For final report, theres no by chapter summary. Just concluded them and put it under the last topic conclusion. CHAPTER 2 LITERATURE REVIEW INTRODUCTION S-REIT yields have normalized back to a market cap weighted 7.4% FY10 DPU or 480bps over the 10-year bond yield, in tune with long term historical levels. Hence, the S-REIT sector is expected to trade in line with the broader market in 2010 with a projected total return of 15.6%. Balance sheets are now healthier with gearing at 31% and refinancing risks have abated with only 16% of the S-REIT indebtedness due for review next year. At this point, with little prospect of significant asset reflation, we believe that S-REIT are unlikely to favour gearing up much from here. Hence, any capital management exercises to fund new purchases are likely to be smaller and opportunistic in nature. Investors are likely to refocus back on earnings growth potential, driven by both organic and acquisition means as a catalyst for stock performance. PREVIOUS STUDY Islam (2003) conducted the studies in examining the short run dynamic adjustment and long term equilibrium relationships between the Kuala Lumpur Composite Index and the selected macroeconomic variables (interest rates, exchange rates, inflation rates and industrial productivity). His found that the existence of the short runs (dynamic) and the stable long run (equilibrium) relationships between stock returns of Kuala Lumpur stock market and that selected macroeconomic variables by using the monthly data from January 1990 to June 2002. Maysami, Lee and Mohamad (2004) also investigated the relationship between macroeconomic variables (interest rates, industrial production, price levels, exchange rates and money supply) and Singapore stock market index (STI) as well as with various Singapore Exchange Sector Indices (finance index, property index and hotel index). His concludes that the Singapores stock market and the property index form cointegrating relationship with changes in t he short term and long term of the selected macroeconomic variables. Maghyereh (2002) investigated the long-run relationship between the Jordanian stock prices and selected macroeconomic variables, again by using Johansens (1988) cointegration analysis and monthly time series data for the period from January 1987 to December 2000. The study showed that macroeconomic variables were reflected in stock prices in the Jordanian capital market. Reily and Brown (2000), however, complicated the matter a bit by stating that cash flows from stocks can change along with interest rates and it is not certain whether this change in cash flows will augment or offset the change in interest rates. Ibrahim (1999) also investigated the dynamic interactions between the KLSE Composite Index, and seven macroeconomic variables (industrial production index, money supply M1 and M2, consumer price index, foreign reserves, credit aggregates and exchange rate). Observing that macroeconomic variables l ed the Malaysian stock indices, he concluded that Malaysian stock market was informationally inefficient. Omran (2003) focused on examining the impact of real interest rates as a key factor in the performance of the Egyptian stock market, both in terms of market activity and liquidity. The cointegration analysis through error correction mechanisms (ECM) indicated significant long-run and short-run relationships between the variables, implying that real interest rates had an impact upon stock market performance. Chong and Gohs (2003) results were similar: they showed that stock prices, economic activities, real interest rates and real money balances in Malaysia were linked in the long run both in the pre- and post capital control sub periods. Maysami and Koh (2000) examined such relationships in Singapore. They found that inflation, money supply growth, changes in short- and long-term interest rate and variations in exchange rate formed a cointegrating relation with changes in Singapores stock market levels. Islam and Watanapalachaikul (2003) showed a strong, significant long-run relationship between stock prices and macroeconomic factors (interest rate, bonds price, foreign exchange rate, price earning ratio, market capitalization, and consumer price index) during 1992-2001 in Thailand. Vuyyuri (2005) investigated the cointegrating relationship and the causality between the financial and the real sectors of the Indian economy using monthly observations from 1992 through December 2002. The financial variables used were interest rates, inflation rate, exchange rate, stock return, and real sector was proxied by industrial productivity. Maghyereh (2002) investigated the long-run relationship between the Jordanian stock prices and selected macroeconomic variables, again by using Johansens (1988) cointegration analysis and monthly time series data for the period from January 1987 to December 2000. The study showed that macroeconomic variables were reflected in stock prices in the Jordanian capital market. Gunasekarage, Pisedtasalasai and Power (2004) examined the influence of macroeconomic variables on stock market equity values in Sri Lanka, using the Colombo All Share price index to represent the stock market and (1) the money supply, (2) the treasury bill rate (as a measure of interest rates), (3) the consumer price index (as a measure of inflation), and (4) the exchange rate as macroeconomic variables. Mansor and Wan Sulaiman (2001) analyzed the dynamic interactions among three macroeconomic variables (real output, price level and money supply), exchange rates and equity prices in Malaysia. Their findings show that the Malaysian stock prices response more by changes in domestic factors mostly on money supply by exerts a positive effect on stock prices in the short run and negatively associated in the long run. Check your line spacing. 2.2 MICROECONOMICS INDICATORS AND REIT While much works have been done on stock markets and USA REIT, this research provides an alternative perspective on the dynamic relationship between listed real estate market and the macroeconomic. Specifically, we examine whether the expected risk premium on property stocks of Singapore could be linked to the conditional volatilities of a set of principal components derived from six chosen observable macroeconomic variables. Another contribution of the paper stems from the use of a three-step methodological framework in addressing the objectives of the paper. Since property stock combines the investment characteristics of direct real estate and general stock, property stock market return and volatility profiles are likely to be different from those of stock markets (especially) in the long term. Moreover, property stocks are also different from REIT in their organization form, tax status, institutional framework and risk-return performance. Thus, we propose to extend the inquiries of this study to cover major property stock markets and examine the potential impact that macroeconomic risk may have on property stock excess returns. In a preview of our results, we are able to find that the expected risk premium on property stocks of the four markets are time-varying and dynamically linked to the conditional volatilities of the macroeconomic factors. Significant results are obtained from the macroeconomic volatilities as useful predictors for the expected risk premium and their conditional variances. But these significant results depend upon the individual markets involved. THEORETICAL FRAMEWORK Six economic factors are selected to test the relationships of these factors and S-REIT performance. Growth rate in GDP Growth rate in Industrial production output Unexpected inflation Interest rate Growth in money supply Changes in exchange rate I suggest you should exclude this part (2.3) since you will illustrate the framework in Chapter 3. Its redundant. SUMMARY Collectively, the evidence from this study indicates that for all the four markets studied, the six macroeconomic variables, GDP growth, INDP growth, unexpected inflation, money supply, interest rate and exchange rate can be represented by three principal components which are time-varying. In addition, between five and six macroeconomic risk factors are highly correlated with the retained principal components. Furthermore, GARCH and GMM evidence suggests that the expected risk premium and conditional volatilities of the risk premium for the four markets are time-varying and dynamically linked to the conditional volatilities of the three retained principal components (and hence the macroeconomic factors). However the impact of the macroeconomic risk factors on the expected risk premium in terms of direction and significance do vary across the four markets studied. Hence there are opportunities for risk diversification in international property stock markets CHAPTER 3 METHODOLOGY AND DATA 3.0 INTRODUCTION The purpose of this paper is to provide an analysis of the relationship between property stocks and some major macroeconomic risk factors as reflected in the general business and financial conditions. Ten years time period will be used to find the correlation and regression between microeconomic variables and S-REIT performance. 3.1 DATA COLLECTION Data concerning on the macroeconomic variables and the S-REIT performance index were gathered to see whether there are any correlation between them as being the main objective of this study. In completing this study, the researcher will use secondary data. The data are collected from DataStream, related journals, news articles, and views from analysts, comments from professionals, books references, magazines, news paper, investors reports and updates of financial industry reviews. Data means your raw data (the one with figures) and it usually collected by students from the datastream. Those that you get from journals, articles etc. are NOT data. They are information. So, rearrange your sentence to separate between sources of data and information. 3.2 SAMPLING FRAME To secure an acceptable result, this study decided to use S-REIT index within 1999 to 2010. How about your IV? 3.3 SOURCES OF DATA The data on S-REIT performance index will be collected from the Data Stream provided by University of Technology Mara and also related website. The data from all Singapore companies REIT listed within 2000 to 2009 will be used to identify the movements of S-REIT performance index. 3.4 VARIABLES AND MEASUREMENT The variables used in this study can be categorized into two main types which are; the dependent and the independent variables. 3.4.1 Dependent Variables The dependent variable for this study is the Singapore REIT index. 3.4.2 Independent Variables The independent in this study is macroeconomic variables. The macroeconomic variables used in this study are GDP, Money Supply, Inflation, Industrial Production and Exchange Rates and Unexpected inflation. RESEARCH DESIGN This research is designed to explore the relationship between dependent and independent variables. In this study, it engages in hypotheses testing that were explaining the certain significant correlations between economic variables and the decision of going public. 3.5.1 Purpose of the Study The purpose of this study is to determine the relationship between the index of REIT performance and the macroeconomic variables. 3.5.2 Types of Investigation This study involved the correlation types of investigation where the researcher intends to investigate whether the dependent and independent variables have positive or negative relationship. 3.5.3 Unit of Analysis In this study, all the data regarding the REIT performance index and economic variables of Malaysia (Consumer Price Index, Exchange Rates, Money Supply and Industrial Production Index) as a whole were taken to test the relationship between them. 3.5.4 Time Horizon Time horizon of this study is cross-secti onal studies, which the data are gathered just once over a period. This study was used yearly basis data from 2001 until 2009 as a time frame for this study. THEORETICAL FRAMEWORK There is a classical theory that explained the high correlation between the macroeconomic variables and the stock market index. This study tries to look at the possibility of the relationship between the dependent and the independent variables in Malaysia market. Dependent variable: S-REIT Performance Index Independent variables: Gross Domestic Product, Inflation, Exchange Rates (US$/RM), Money Supply (M2) and Industrial Production Index, Interest rate. Below is the schematic diagram to show the relationship between the relationship between the dependent and independent variables: Figure 2: Schematic Diagram (Relationship Diagram) GDP Inflation Exchange Rates Money Supply REIT Performance Index Industrial Production Index Interest rate Independent Dependent According to the schematic diagram above, it can be elaborated that the performance of S-REIT index are determine by the GDP, inflation, exchange rates, money supply, iInterest rate and ind ustrial production index. The dependent variables will reflect in any changes in independent variables. Recheck your spelling and grammar. Make sure they are past tense since youve completed your study. 3.7 DATA ANALYSIS AND TREATMENT The statistical tools use in the study is Multiple Linear Regression Model. This model was examined the real-time effects of several independent variables towards dependent variable that is interval scaled. Multiple linear regression analysis aids in understanding how much of the variance in the dependent variable is explained by a set of predictors. This type of analysis is also done to trace the sequential previous that cause the dependent variable through path analysis. This model is more appropriate to be used since it can explain the correlation between the dependent and independent variables much better. SPSS Software was used to generate the result from the data that have been collected. Multiple Linear Regression Model: (Equation 1) Where; Y = Dependent variable which represent S-REIT index = The constant number of equation = Coefficient Beta value = Growth rate in GDP = Growth rate in Industrial production output = Inflation = Interest rate = Growth in money supply = Changes in exchange rate = Error 3.8 HYPOTHESIS STATEMENT Hypothesis 1 H0: Growth rate in GDP has no relationship with S-REIT movements H1: Growth rate in GDP has a relationship with S-REIT movements Hypothesis 2 H0: Growth in money supply has no relationship with S-REIT movements H1: Growth in money supply has a relationship with S-REIT movements Hypothesis 3 H0: Inflation has no relationship with S-REIT movements. H1: Inflation has a relationship with S-REIT movements Hypothesis 4 H0: Changes in Exchange Rate has no relationship with S-REIT movements H1: Changes in Exchange Rate has a relationship with S-REIT movements Hypothesis 5 H0: Growth rate in Industrial production output has no relationship with S-REIT movements H1: Growth rate in Industrial production output has a relationship with S-REIT movements Hypothesis 6 H0: Interest rate has no relationship with S-REIT movements H1: Interest rate has a relationship with S-REIT movements SUMMARY In the nutshell, this chapter will provide the research design that will be used in this study. The study aims to determine the relationship between economic factors with the index movements of S-REIT. This research will be done in accordance to the objective where to know whether there is any significant relationship between the economic factors with the timing and the decision of the investors who willing to get into S-REIT. Since study focuses on the data from 1999 until 2009, if would give a better picture on the decision and timing of buying S-REIT and using this information for gaining future return as well. CHAPTER 4 FINDING AND ANALYSIS INTRODUCTION As mentioned in the previous chapter, the objective of this study is to determine the significance correlation between the macroeconomics variables and the S-REIT performance. In addition, the study also tends to identify which macroeconomic factors that have a relationship with the index. Multiple linear regression is one of the useful method to examine the relationship between independent and dependent variables. In testing the hypotheses, the tests have been run for both dependent variables (S-REIT index) and independent variables GDP, Inflation Rate, Exchange Rate, Money Supply, Industrial Production Index and Interest Rate. 4.1 MULTIPLE LINEAR REGRESSION ANALYSIS OF S-REIT AND MACROECONOMIC VARIABLES (January 2000 June 2010) The data have been converted into rate [X= (P1 P0) / P0] and be regressed in order to get the solid model to explained the conclusion derive from the analysis. Table 4.1: Multiple Linear Regression of S-REIT index (2000-2010) Coefficientsa Model Unstandardized Coefficients Standardized Coefficients T Sig. B Std. Error Beta 1 (Constant) 2.959 2.419 1.223 .229 GDP -4.480E-5 .000 -1.457 -2.569 .015 MONEYSUPPLY 2.130E-6 .000 .937 2.277 .029 INFLATIONRATE -.095 .032 -.304 -2.978 .005 FOREX .898 .512 .341 1.755 .088 IND.PROD .011 .013 .263 .898 .375 INT.RATE .799 .139 .767 5.743 .000 a. Dependent Variable: SREITINDEX Table 4.1 shows the model summary of S-REIT index and the selected macroeconomic variables. Before analyzing all the data above, residual analysis on that model has been tested to ensure that the model will meet all the assumptions in multiple regression method. 4.2 FINAL FINDING OF MULTIPLE LINEAR REGRESSION OF S-REIT INDEX Table 4.2: Final Model Summary of S-REIT index (2000-2010) Model Summaryb Model R R Square Adjusted R Square Std. Error of the Estimate Change Statistics R Square Change F Change Sig. F Change 1 .906a .821 .791 .23921 .821 26.792 .000 Predictors: (Constant), INT.RATE, GDP, INFLATIONRATE, FOREX, IND.PROD, MONEYSUPPLY b. Dependent Variable: SREITINDEX Table 4.3 shows the model summary of S-REIT index and the selected macroeconomic variables. From the table above, it shows that adjusted R2 is 0.791 in which represents the total amount of variance in the population. The value of adjusted R2 can be interpreted that only 79.10 percent of variability of data regressed can be explained between the independent and dependent variables. In this case, it can be concluded that GDP, Inflation Rate, Exchange Rate, Money Supply, Industrial Production Index and Interest Rate were explained 79.1% of the variance in S-REIT index. It also explained by adjusted R2 that there are strong correlations between the variable s since the adjusted R2 is above 50%. Then, the Analysis of Variance (ANOVA) test has been conducted again to test the null hypothesis that several groups mean are equal in the population by comparing the sample variance estimated from the group means to that estimated within the group. Below is the hypothesis of this model: H0: None of the 6 independent variables GDP, Inflation Rate, Exchange Rate, M2, Industrial Production Index and Interest Rate will significantly explain the variance in S-REIT index. (ÃÆ'Ã… ½Ãƒâ€šÃ‚ ²1=ÃÆ'Ã… ½Ãƒâ€šÃ‚ ²2=ÃÆ'Ã… ½Ãƒâ€šÃ‚ ²3=ÃÆ'Ã… ½Ãƒâ€šÃ‚ ²4 = 0) You mentioned that you have 6 IVs H1: The 6 independent variables of GDP, Inflation Rate, Exchange Rate, M2, Industrial Production Index and Interest Rate will significantly explain the variance in S-REIT index. (At least one of  Ãƒâ€šÃ‚ ¢ is not equal to zero) After the test that has been conducted, the null hypothesis (H0) will be rejected if the p-value 0.05. The F-signifi cant value (p-value) stands at 0.0000, which shows that the model is significant with 99 percent confidence level. The finding shows that this test will reject the null hypothesis. Means that, at least one of the  Ãƒâ€šÃ‚ ¢ is not equal to zero. Thus, following findings and analysis will interpret the result for the independent variables and test on the hypothesis. Table 4.3: Final Coefficient of Multiple Linear Regression Analysis Model Unstandardized Coefficients Standardized Coefficients t Sig. B Std. Error Beta 1 (Constant) 2.959 2.419 1.223 .229 GDP -4.480E-5 .000 -1.457 -2.569 .015* MONEYSUPPLY 2.130E-6 .000 .937 2.277 .029* INFLATIONRATE -.095 .032 -.304 -2.978 .005* FOREX .898 .512 .341 1.755 .088 IND.PROD .011 .013 .263 .898 .375 INT.RATE .799 .139 .767 5.743 .000* a. Dependent Variable: SREITINDEX Table 4.3 r epresents the result from multiple linear regression analysis of S-REIT index from year January 2000 to June 2010. It reports the coefficient values for each independent variable that has been regressed against the S-REIT index. The test has been conducted to test the H0 of the S-REIT index and the selected macroeconomic variables. The H0 will be rejected if the p-value 0.05. Hypothesis 1 H0: Growth rate in GDP has no relationship with S-REIT movements Looking the analysis between S-REIT index and GDP (table 4.3), it is found that the t-significant value stand at 0.015, which is significant. The finding hereby rejects the null hypothesis for GDP. It also explained that there is significance correlation between GDP and S-REIT index. Hypothesis 2 H0: Growth in money supply has no relationship with S-REIT movements Based on analysis between S-REIT index and Money Supply (table 4.3), this study found that there is significant correlation between S-REIT index and Money Supply, which is the t-significant value stand at 0.029. The finding shows that this study will reject the null hypothesis for exchange rate. It explained that there is relationship between Money Supply and S-REIT index. Hypothesis 3 H0: Inflation has no relationship with S-REIT movements Based on analysis between S-REIT index and Inflation (table 4.3), this study found that there is significant correlation between S-REIT index and Inflation, which is the t-significant value stand at 0.005. The finding shows that this study will reject the null hypothesis for Inflation. It explained that there is correlation between Inflation and S-REIT index. Hypothesis 4 H0: Changes in Exchange Rate have no relationship with S-REIT movements Based on analysis between S-REIT index and exchange rate (table 4.3), this study found that there is no significant correlation between S-REIT index and Exchange Rate, which is the t-significant value stand at 0.088. The finding shows that t his study failed to reject the null hypothesis for Exchange Rate. Hypothesis 5 H0: Growth rate in Industrial production output have no relationship with S-REIT movements Looking the analysis between S-REIT index and Industrial production output (table 4.3), it is found that the t-significant value stand at 0.375, which is not significant. The finding hereby failed to reject the null hypothesis for Industrial production output. It also explained that there is no significance correlation between Industrial Production Output and S-REIT index. Hypothesis 6 H0: Interest rate has no relationship with S-REIT movements Looking the analysis between S-REIT index and Interest rate (table 4.3), it is found that the t-significant value stand at 0.000, which not significant. The finding hereby rejects the null hypothesis for Industrial production output. It also explained that there is significance correlation between Industrial Interest rate and S-REIT index. 4.4 LINEAR EQUATION Ye = 2.959 0.00004480(GDP)* + 0.000002130(MS)* 0.095(INF.R)* + 0.898(FX) + 0.011(IND.P) + 0.799(INT.R)* (t-value) (-2.569) (2.277) (-2.978) (5.743) Significant at 95% confident level Y = Dependent variable which represent S-REIT index DGP = Gross Domestic Product MS = Money Supply INF.R = Inflation Rate FX = Exchange Rate IND.P = Industrial Production INT.R = Interest Rate * sig. From the equation above, it can be said that GDP has inverse relationship with S-REIT index. These results are explained that when the GDP increases, then the S-REIT index will decrease. Decrease of GDP by 1 % in show an increase on S-REIT index by 0.00004480% when holding other variables constant. But contra with Kim Hiang Liow, Muhammad Faishal Ibrahim and Qiong Huang (2005) the stock market have positive relationship with GDP. Previously in chapter 1, it was highlighted that properties have value that increasing that can over perform the stock market. It is unnecessari ly that the trend of S-REIT will follow the GDP. S-REIT also contains the real property outside of Singapore such as Malaysia, Vietnam, China, Indonesia and others. It will not necessarily will relate to Singapore GDP or other variables directly. Money Supply has positive relationship with S-REIT index. From the equation, when Money Supply increases by 1%, S-REIT index will increase 0.000002130% when holding other variables constant. Inflation Rate has negative relationship with S-REIT index. From the equation, when Inflation Rate increases by 1%, S-REIT index will decrease 0.095% when holding other variables constant. Interest Rate has positive relationship with S-REIT index. From the equation, when Interest Rate increases by 1%, S-REIT index will increase 0.799% when holding other variables constant. CHAPTER 5 CONCLUSION AND RECOMMENDATION CONCLUSION The paper has examined the relationship between S-REIT index with GDP, Inflation Rate, Exchange Rate, Money Supply, Industrial Production Index and Interest Rate. The study were employed the quarterly data and used multiple linear regression method to test the relationship between the dependent and independent variables. The results found that there are strong correlations between the S-REIT indexs with the selected macroeconomic factors. It means that, there are other factors that affect the performance of S-REIT rather than the six (6) selected economic factors. From this study, it can be conclude that the S-REIT performance in the strong form efficient market hypothesis seems the S-REIT performance are not fully reflected with all information from public and private sources that included the information about economic events in Singapore. Specifically, GDP, Money Supply, Inflation Rate, and Interest Rate were significantly related with S-REIT performance. It means that, any c hanges in GDP, Money Supply, Inflation Rate, and Interest Rate it seems to reflect the changes in S-REIT indexs. The past studied also found there are strong relationship between exchange rate and money supply towards the performance of stock market index. Maysami, Lee and Mohamad (2004) found the co-integrating relationship between exchange rates and money supply in Singapores stock market in their past studied. While, Islam (2003) proved that there are short run and long run relationship between stock returns of Bursa Malaysia stock market with interest rates, inflation, exchange rate and industrial productivity. 5.1 RECOMMENDATION As a recommendation, it seems there are opportunities to other students to further study on the relationship between S-REIT index and macroeconomic variables. The future researcher is suggested to measure the relationship between stock market index and the economic factors by using other method rather than use multiple linear regression method. There are also suggested by other past researchers in the similarly research that co integration analysis and Error Correction Method it seems to give the robust result and will give the deep explanation of the relationship between the stock market index and macroeconomic factors. (Islam (2003), Mansor and Hassanuddeen (2003). Other than that, it also recommended to the future researcher to add other macroeconomic variables such as Consumer Price Index (CPI) and Unemployment Index in examining the relationship of economic factors with stock market index.

Health Care Systems in Coumbia, Finland, and United Kingdom

According to The Director General of the National Public Health Institute, Professor Pekka Puska health is very important to everyone, individuals and nationals all over the world, but we all have our own perceptions of health and the cultural issues affect strongly to health. Generally we have good health point, but the differences between nations are large. In developed countries people are living longer, at the moment a baby girls life expectancy will be over a hundred years. We have good control of infectious diseases too. But the development will bring problems too: obesity, diabetes, problems with alcohol etc. As Pekka Puska said we have a great deal of clinical and medical research, drug and clinical research are important, but†¦show more content†¦The public sector in addition to providing services to private companiesand organizations. In Finland the government is obliged to guarantee adequate social and health services and promote the health of population. The public sector with private sectors and organizations provide health care services. (STM, 2013) In Finland we have program Health for all by the year 2000 done by government to parliament. The strategy focuses on health promotion, not so much in developing the health. Age-specific objectives 1 Childrens well-being health will increase, and the insecurity associated symptoms and diseases are significantly reduced. 2 Smoking among young people is reduced in such a way that 16 to 18 year olds less than 15% of smokers, alcohol and young people and drug-related health problems will be dealt with appropriately and they are more common than in the early 1990s. 3 Young adult males an accident and violent death is reduced by one thirdIn the late 1990s level. 4 Working-age people to work and function and working conditions in developing such a way that they contribute toretirement will work and be about three later than in 2000.5 With more than 75 years, the average capacity will continue to improve as thethe last 20 years. (STM) The Health Systems in Transition (HiT)

Pedophilia Causes And Typologies Essay Example For Students

Pedophilia: Causes And Typologies Essay Pedophilia: Causes and TypologiesPerhaps no single act causes such strong emotions as the act of childsexual abuse. Child molesters can not even find refuge in prisons whererapists and murderers are commonplace.These offenders are shunned in everyaspect of our society, yet there is no consensus as tothe causes of thisbehavior. Sexual abuse of children is not new, and has not always been sociallytaboo.The ancient Greeks and Romans used children for sexualgratification(Langevin, 1983).In Greece, it was commonplace for adolescentmales to be forced into sexual relationships with mature males.This behaviorwas normal and not objected to by the childs parents nor the Greekgovernment(Langevin, 1983).The Romans encouraged adolescent boys and girls notto protest being sold into prostitution.The Roman government even went so faras to declare a public holiday honoring young prostitutes(Kahr, 1991). Sex with children in the modern era is alive and well, the power of anolder person is so great that their young victims often never tell of thehorrors that they have endured.There is also a pedophile enhancement movement,with confessed pedophiles insisting that their behavior is not wrong or immoral. Organizations dedicated to the social acceptance of sex with children are notnew, yet have had a large upstart in membership since the early 1970s(Charon,1979). Because of the extreme sensitivity of the subject, research in thisfield is quite underdeveloped.Researchers have even had trouble in agreeingwhat to call the phenomenon.Much research on the victims has dubbed the act aschild sexual abuse, most research on the offenders has labeled it as childmolesting or pedophilia.The term pedophilia has some utility since it suggestsa predisposition for the act separate from the act itself.The ambiguity ofthis term however, is what causes confusion.Pedophilia can mean child sexualabuse ranging from an arousal to children with no or little action, to sexualpenetration of the child.For the purposes of this paper the terms pedophilia,child sexual abuse, and child molestation will be used interchangeably. This paper will focus on the possible causes of child sexual abuse.Itwill examine several etiologies of pedophiles as suggested by researchers.Toreduce this behavior in offenders, we must first attempt to gain anunderstanding of WHY?This question has no easy answer,and the researchers inthis field have found very little to agree upon.There is is however, commonground which may enable us to combine theories into a workable start to asolution of the unspeakable crime. Pedophiles can be classified into different categories by several issues,the most common of which are causation, and victim-relationship Gary Soto's Guilt EssayThe needs of the child are given very little recognition by the parents. Families have been classified into two general types of units in whichincest is more likely to occur.These include the Chaotic family and the normal-appearing family(Kempe and Kempe, 1984).The chaotic family istypically of low socioeconomic status; is dysfunctional in that the familymembers have histories of substance abuse, incarceration, violence, and mostmembers have very little or no education.Children raised within family unitssuch as this are more likely to become targets of interfamilial sexual abuse. The normal-appearing family gives off the impression that everythingis perfectly normal.Frequently the parents have been married for years, arefinancially secure, and have established roles within the community(Kempe ;Kempe, 1984). Incestuous parents in this type of family are often unable tocare for their children our themselves, either emotionally or physically.Theyare usually quite needy and turn to their children to fulfill those needs. Incest in this type of family is especially troublesome since even if it isreported, a conviction is unlikely without solid physical proof.The adult isan fine upstanding member of the communityintheir eyes.Often theauthorities will side with the adult and punish the child for these attempts tobring pain upon their parents(Kempe ; Kempe, 1984). In both the chaotic and the normal-appearing families, incest isoften carried on from one generation to another.This phenomenon has beendubbed the intergenerational transmission of incest(Kempe ; Kempe, 1984). Researchers have found similarities in families in which this phenomenon ha

Challenges in the Implementation of New It Systems free essay sample

Davenport (1998) agrees that system implementation do come with enormous technical challenges but the complexities and technical challenges are not the main reason for the difficulties in implementing the systems but rather attributes it to business problems. Most information technology systems by their nature impose their own logic on a company’s strategy, organizations and culture. Some company’s may have their own customized processes that provide them with a competitive advantage and these processes may not necessarily be support by the new systems. As such the conflict between the logic of the systems and the logic of the business or the company can lead to an implementation failure and cause a great deal of disruption and possible weaken the company’s source of competitive advantage. To mitigate such a situation, companies must have a clear understanding of the business implications of installing any new system and its impact on their business and legal requirements before proceeding with its implementation. There may be the need for some customization to for the system to properly support the business. Such a scenario was encountered during an SAP implementation I was part of for my previous employer in Cote D’Ivoire. During the assessment stage we realized that Cote D’Ivoire had a complicated system for calculating the tax component on raw material imported into the country. This calculation process was not part of the SAP application since it was unique only to that country. We eventually had to make some change request and development in the SAP system to be able to accommodate this taxation calculation and developed another software that interfaced with SAP. Failure to identify and address this could have led to a significant implementation failure. This led to losing some amount of integration benefits of SAP but overall it also allowed us to meet the regulatory requirements of the country. Another potential area that can impact the implementation of new IT systems is failure to consider the employees who are the actual use of the ystem in the implementation process and ensure they are well trained and prepared to work with the new systems. Burke et al (2001) states that the success or failure of any implementation rests on the ability of those in charge to manage the human factors of the project. From personal experience implementing SAP, one key thing I noticed was that most of the staff in the early months after go-live were using the new system in ways similar to the old legacy systems they were used to. This divide between how the system was being used and how it actually should have been used did not ensure that the objective of the implement new systems was achieved. This also led to many complaints from staff and their managers about how the new system was making their jobs difficult. In as much as a lot of awareness was created about the new systems and most members of staff knew about it, there was a gap in training. Super users and trainers for some functional units were not able to effectively train all the end users on how to use the new systems. There was also a gap in the soft skills of some users especially the factory hands and warehouse staff who were not completely comfortable with barcode scanners and computers. The following recommendation made in the learning log by the implementation team to mitigate any such reoccurrence:- †¢During the early project tasks, there should be a mapping out of the roles and job function and the necessary training needs identified. Analyze the impact of the system on each job and ensure training is customized to enable employees perform their task †¢Ensure there is a training budget as part of the implementation process †¢Training should start as early as possible and day in life cycles should be used as part of the training scripts †¢Identify employees who need training on soft skills (use of computers, barcode scanners, etc. as part of the early project tasks and ensure they are trained prior to implement the new system In as much as implementation of IT systems can be complex, there is the need to ensure all the aspects of human intervention are properly address prior to implementation. Chopra and Meindl (2007) also suggest three ideas to keep in mind when implementing IT systems. First is to install new IT systems in incremental stages rather than a full scale implementation. The idea is to limit the damage should problems arise with the installation and also to make it easier to identify problem areas during installation. The second is to run both the new and old systems parallel for a period such that when a problem is encountered with the new systems in the early stages, the old system can be relied upon for business continuity while the issues are addressed. The final idea is to implement only the level of complexity that a company needs. New systems always seem to have a lot of functionality that most managers will like to have. The focus should always be on exactly what is needed and provides the benefit the company needs. References Burke, R. , Kenney, B. , Kott, K. and Pflueger, K. (2001) Success or Failure: Human Factors in Implementing New Systems. Chopra, S. Meindl, P. (2007) Supply chain management: Strategy, planning, and operation 3rd ed. Upper Saddle River, NJ: Prentice-Hall. Davenport, T. H. (1998) â€Å"Putting the enterprise into the enterprise system. † Harvard Business Review, July-August 1

The Importance of Human Skills

Introduction Human or interpersonal skills are believed to be essential for every effective manager or leader. This component has been discussed by many scholars and researchers. This paper will illustrate the importance of human skills by discussing the examples of successful leaders and managers such as Charlie Bell. In part, this discussion will be based on the ideas of Robert Katz (1955) who identified and examined the attributes of good administrator and executives.Advertising We will write a custom essay sample on The Importance of Human Skills specifically for you for only $16.05 $11/page Learn More It is also necessary to compare his views with more modern theories of leadership and management. This analysis will enable us to better see the role of human skills in everyday management. Moreover, this discussion will also identify some of important and unresolved questions related to the development of interpersonal competencies of those people who want to make a managerial career. The examples illustrating the significance of human skills There are several cases which can demonstrate the significance of interpersonal skills. One of such examples is Charlie Bell, the former CEO of McDonald’s Corporation. He began to work in this company at the age of 15 as a regular employee. In later years, he made a brilliant career in this organization ultimately becoming the chief executive officer of this international corporation. In part, his successes can be explained by the fact that he always worked on his managerial skills. For example, his attentiveness toward employees and excellent memory for faces earned him support of many people in McDonald’s (Robbins et al 2009, p. 16). It should be borne in mind that in the course of his career Charlie Bell worked in a variety of different teams and he always managed to cooperate effectively with every member of the staff (Boje 2008, p. 136). These qualities enabled him to rev italize this corporation and increase its market share. On the whole, Charlie Bell’s successes can attributed to perseverance, willingness to work in a team, and ability to pass his enthusiasm on other people. His example substantiates many theories of leadership and management. For instance, one remember Katz’s model[1] of managerial qualities, and particularly his idea that human skills are vital for business administrators. The case of Charlie Bell is worth attention because it shows that human skills are important for people who work at different levels of managerial hierarchy. He began to work in McDonalds as a crew member and he occupied virtually every position that exists in this corporation (Boje 2008, p. 136). During every stage of his career he was known as a reliable team player, excellent communicator, and motivator.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More It is possible to cite other cases which prove that excellent human skills are among the attributes of a highly effective manager. Once can certainly mention Jack Welch, the former CEO of General Electric. Despite the fact that he has often been criticized for his brutality and extremely high performance standards standards, Jack Welch is more famous for his openness to the employees, ability to motivate every member of the staff, and attentiveness to the opinions of his colleagues (Rowe Guerrero 2010, p. 217). In fact, these skills are one of the reasons why General Electric improved organizational structure, production, and subsequently financial performance. Finally, we should definitely speak about Anne Malcuhy, the president of Xerox who saved this company from bankruptcy (Hamilton 2010, p. 296). Among her human or interpersonal competencies, one can surely distinguish great listening skills and motivational ability (Hamilton 2010, p. 296). First, they helped her understand w hy this company was facing significantly problems. But more importantly, she was able to convince the investors and employees that this corporation could survive the time of crisis. Her achievement might not be possible without great human skills. Theoretical aspects of human skills Thus, we have discussed three very successful administrators and leaders. They may have various educational backgrounds, spheres of interests, personality traits, and so forth. Nonetheless, they share some common attribute, namely the ability to communicate with and influence other people. This is the significant component of human skills. Overall, this element of managerial efficiency has been of considerable interest to many scholars and researchers. One of the most important works written in this area is the article Skills of an Effective Administrator by Robert Katz. This scholar defines human skill as the manager’s ability â€Å"to work effectively as a group member and build cooperative eff ort within the team† (1955, p. 34). According to the author, a good administrator must be able to understand the needs of the employees in order to better motivate them. Moreover, this person must be very attentive to what his/her colleagues are saying and why (Katz 1955, p. 35). These qualities are essential for every person who is willing to gain the support of co-workers, business partners, clients, contractors, and so forth. It is important to people, who work at various levels of management (Katz 1955). These people can be the main executive officers in a company or frontline managers.Advertising We will write a custom essay sample on The Importance of Human Skills specifically for you for only $16.05 $11/page Learn More Thus, Katz’s interpretation of human skills is mostly related to such areas as motivation, emotional intelligence, and willingness to involve the subordinates into decision-making. Although modern scholars may disagree with Katz’s classification of managerial competencies[2], many scholars admit that human skills are really indispensible for every business administrator. At the given moment, there are numerous frameworks which strive to describe, classify, and analyze the main strengths of a successful manager. For instance, one can mention Trait Theory, the Hersey-Blanchard Model of Leadership, or Transactional Theory. Some of them pay attention primarily on the personal characteristics and traits of a business administrator, while others emphasize the functions that this professional has to perform. Yet, each of these theoretical approaches attaches great importance to various interpersonal skills such as delegation of tasks, motivation, listening skills, emotional intelligence, or ability to establish rapport with colleagues (Manjunath Nagendra 2009). Thus, one can say that existing theoretical approaches to management support the ideas of Robert Katz. Nonetheless, this discussion of l eadership theories also shows that it may be difficult to identify every interpersonal skill that a manager should possess. The researchers, who currently investigate the changing role of management, argue that human skills have become much more important nowadays than they were several decades ago (Mackenzie 2010, p. 529). The thing is that modern companies operate in globalized markets which are driven information technologies. Modern managers have to work with the employers, clients, contractors, or investors who represent different cultures. Moreover, in many cases, they cannot communicate face-to-face (Mackenzie, 2010, p. 529). These changes in the workplace suggest that a modern business administrator has to have considerable human skills; otherwise they will not be able to compete in the labor market. The main issue which is still to be solved is how to measure and evaluate human skills of a person. In his article, Robert Katz admits that the assessment of interpersonal skill s is likely to be very subjective (1955, p. 41). This question is particularly relevant to those professionals who recruit managers or promote them. Without an objective evaluation method they can hardly cope with this task. Apart from that, currently the educators and scholars attempt to create methods and techniques of improving and developing interpersonal skills of future business administrators. This task has yet to be fully accomplished.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Conclusion This discussion indicates that a person can achieve success as a manager, leader, or administrator, only if he/she has well-developed interpersonal skills. The theory introduced by Robert Katz strives to explain the core competencies of a good executive. Despite the fact that the author’s classification of managerial skills can be disputed, however, his views on human skills are still valid. The existing theoretical frameworks emphasize the importance of these qualities. Moreover, the process of globalization and increasing adoption of online technologies only increase the importance of human skills. Yet, there are several issues which still need to be addressed. First, the researchers must find ways of identifying various human skills and their applications in the workplace. Secondly, one has to develop techniques of evaluating this managerial competency. Reference List Boje, D. (2008). Storytelling organizations. London: SAGE Publications. Hamilton, C. (2010). Co mmunicating for Results: A Guide for Business and the Professions. NY: Cengage Learning. Katz, R. L. (1955). Skills of an Effective Administrator. Harvard Business Review,  33(1), 33-42. Mackenzie, M. L. (2010). Manager communication and workplace trust: Understanding manager and employee perceptions in the e-world. International Journal Of Information Management, 30(6), 529-541. Manjunath, V. Nagendra, S. (2009). Entrepreneurship Management. Delhi: Pearson Education. Robbins, S., Bergman, R., Stagg, I., Coulter, M. (2009). Management (9th ed.). NY: Prentice Hall. Rowe, W. Guerrero, L. (2010). Cases in Leadership. NY: SAGE. Footnotes In the next section, the ideas of Robert Katz will be discussed in more detail. Robert Katz divides managerial competences into three groups: 1) technical skills; 2) human skills, and 3) human skills. This essay on The Importance of Human Skills was written and submitted by user Knox Barnes to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Definition and Examples of Conditional Clauses

Definition and Examples of Conditional Clauses In English grammar, a conditional clause is a type of adverbial clause that states a hypothesis or condition, real (factual) or imagined (counterfactual). A sentence containing one or more conditional clauses and a main clause (which expresses the result of the condition) is called a conditional sentence  (also known as a conditional construction). A conditional clause is most often introduced by the subordinating conjunction if. Other conditional subordinators include unless, even if, provided that,  on condition that, as long as, and  in the case of. (Note that unless functions as a negative subordinator.) Conditional clauses tend to come at the beginning of complex sentences, but (like other adverbial clauses) they may also come at the end.   Examples and Observations If we had no winter, the spring would not be so pleasant; if we did not sometimes taste of adversity, prosperity would not be so welcome. (Anne Bradstreet, Meditations Divine and Moral)Romans park their cars the way I would park if I had just spilled a beaker of hydrochloric acid on my lap. (Bill Bryson,  Neither Here Nor There: Travels in Europe. William Morrow, 1992)Even if it snows, even if there is a tornado, nothing will put off this expedition. (J.F. Powers, Death of a Favorite, 1951)After that first taste of the sandal in the dining room, I foolishly believed I would be safe as long as I stayed away from the table. (Adrienne Kress,  Alex  . Weinstein Books, 2007)and  the Ironic GentlemanIf you can keep your head when all about youAre losing theirs and blaming it on you,If you can trust yourself when all men doubt you,But make allowance for their doubting too;If you can wait and not be tired by waiting,Or being lied about, dont deal in lies,Or being hated, dont give wa y to hating,And yet dont look too good, nor talk too wise...(The first stanza of Rudyard Kiplings If- , 1895) What Are 'Conditions'? Conditions deal with imagined situations: some are possible, some are unlikely, some are impossible. The speaker/writer imagines that something can or cannot happen or have happened, and then compares that situation with possible consequences or outcomes, or offers further logical conclusions about the situation. (R. Carter,  Cambridge Grammar of English. Cambridge University Press, 2006) Stylistic Advice: Positioning Conditional Clauses Conditional clauses have traditionally been placed at the beginning of a sentence, but you should feel free to place a conditional clause elsewhere if doing so would make the provision easier to read. The longer the conditional clause, the more likely it is that the provision would be more readable with the matrix clause rather than the conditional clause at the front of the sentence. If both the conditional clause and the matrix clause contain more than one element, you would likely be better off expressing them as two sentences. (Kenneth A. Adams,  A Manual of Style for Contract Drafting. American Bar Association, 2004) Types of Conditional Clauses There are six main types of conditional sentence: For example, the equilibrium between liquid and vapor is upset if the temperature is increased.(General rule, or law of nature: it always happens.)If you start thinking about this game, it will drive you crazy.(Open future condition: it may or may not happen.)But if you really wanted to be on Malibu Beach, youd be there.(Unlikely future condition: it probably wont happen.)If I were you, I would go to the conference center itself and ask to see someone in security.(Impossible future condition: it could never happen.)I would have resigned if they had made the decision themselves, she said.(Impossible past condition: it didnt happen.)If he had been working for three days and three nights then it was in the suit he was wearing now.(Unknown past condition: we dont know the facts.) (John Seely,  Grammar for Teachers. Oxpecker, 2007)

Ecotourism Essay Example | Topics and Well Written Essays - 750 words

Ecotourism - Essay Example However, according to the normative definition, ecotourism is centered on three main criteria: (i) 'it should have nature based attractions (ii) visitor interactions should focus on education, and (iii) experience and product management should follow the principles associated with ecological, socio-cultural and economic sustainability' (Weaver and Lawton 2007:170). Prescriptive definitions of ecotourism is preferred amongst experts which include 'value-based dimensions' such as conservation, community involvement and social responsibility.(Weaver and Lawton 2007: 1169). Ecotourism is being promoted by governments and the tourism industry as a sustainable alternative to mass tourism. However, this too has not escaped critics' comments and myths. They have suggested that ecotourism can be damaging to the natural environment. Critics are skeptical that the future of tourism industries can be at risk (Mihalic 2000) with the motivation of ecotourists. There are different types of eco/nature tourists. Lindberg's 1991 typology distinguishes hard-core, dedicated, mainstream tourists from casual nature tourists. Similarly Laarman and Durst (1987) has drawn a distinction between 'hard' and 'soft' ecotourism experiences based on the degree of difficulty in ecotourism. Ecotourism is one of the 'new' forms of tourism based around sustainable ideas. As compared to other forms of tourism ecotourism is small in scale, non-consumptive, ethical/responsible, and of benefit to local people. However, in the absence of an adequate management regime ecotourism is unlikely to be sustainable ecologically by any relevant measure. Most ecotourism destinations are geographically remote and hence ecotourism involves the issue of carbon expenditures with long distance travel and their contribution to climatic changes. Therefore, ecotourism can never meet the parameters of environmental sustainability. Critical Comments The sustainability of ecotourism is a controversial issue. As long as ecotourism serves its purpose as an 'alternative tourism' by satisfying ecotourists and fulfills their mission, it has already achieved its goal and purpose. There is a definite scope of developing ecotourism both at the local and global scales in order to promote tourism industry as such. Critical Reflections Different types of ecotourism have to be formed and developed by the government systems of developing and developed countries. Ecotourism must aim to gain the economic advantages of tourism development causing minimal negative environmental impact. SUMMARY 2 Tourism and Environment With reference to the environmental impacts of tourism from geographical perspective tourism as an industry depends on physical environment. Tourism is associated with environmental benefits although it is not free from negative impacts. Tourism is not free from related pollution problems. Most of these are related to traffic, tourist infrastructure and the activities of tourists. In congested areas emissions negatively influence vegetation, soil and visibility. Heating systems of tourist related buildings emit some

Career in Pharmaceutical Sales Research Paper Example | Topics and Well Written Essays - 500 words

Career in Pharmaceutical Sales - Research Paper Example Many of the decisions that pharmacists make are life and death ones, and so we require a strong code of ethics from them and the people who supply them with their products (Altilio, 2009). Like many other important professions, drug salespeople are respected but they are also held to high standards.   I work very well in team situations and have always developed a good rapport with peers, co-workers, professors and employers. While I highly enjoy teamwork I also have the motivation and knowledge to work efficiently and independently on major projects. I work extremely well under pressure and have always been able to put my best forward and receive top results.  These are important qualities in a sales professional. Sales can be a high-pressure, high-stress field and you have to work very hard at it to make a go of it (Appelbe, 2005). Another important aspect of pharmaceutical sales is travel. You need to cover a lot of ground and meet a lot of people. I have a good sense of geography and can fit in in many unique situations. You have to charm them and make them want to buy the product. But more than that you have to be credible and knowledgeable. You have to understand the position that pharmacy managers and pharmacists are in. Their profession can be high stress and they will want to ensure that the products they receive are the best (Kevin, 2001). Fortunately, I am good at all of these things.    In life, one has to fight and work hard in order to get ahead. I have always been a hard worker and a person who is dedicated to improving myself through academic study and work as well as everyday experience.   I respond to setbacks by working even harder and increasing my determination.    I possess the intellectual commitment and compassionate interest to make this a satisfying and successful vocation. I truly want to leave my mark on the world by helping others. I realize this will not be an

Models of decision making and problem solving Essay

Models of decision making and problem solving - Essay Example Decision making is about choosing from several options or ideas and taking action to generate a particular result. It is usually considered to be a rational and logical thinking process. It is defined as a process of choosing a course of action for dealing with a problem or opportunity (Schmerhorn, 2003, p 174). Problem solving is one of the steps involved in decision making. Decision making is a part of everyday life for all of us. However this essay is confined to analysis of the process of decision making in an organizational context. In an organization, decision making is one of the key managerial activities. Decisions taken in a timely manner, making optimum use of information and a sound implementation are the hallmarks of organizations which perform effectively. This essay covers aspects of decision making processes in an organization and the models which can be used to describe them. The roles of creativity in individual as well as organization decision making, intuition, gro up and collaborative decision making and leadership that makes the decision making and problem solving in organizations efficient is also discussed.It is important to understand the context under which decisions are made in the organization. Decision making within organization can be broadly classified as happening at four levels. The first is the long-term strategic decision making process. ... The operations level managers will be involved. Speed and implementation of decisions will be very important here. Very often problems to be solved will be routine in nature. The last is the corrective decisions that an organization will have to make based on the monitoring it does of its decisions and the feedback that it receives through such monitoring. Another type of classification on the decisions within an organization are those that can be differentiated as programmed decisions , those which are routine and can be solved by standard methods and the other un-programmed, those which cannot be solved by routine responses, but which require tailor made solutions. Decisions are usually made by managers as individuals, but in organizations, the particular decisions or policies chosen by decision-makers can often be explained through organizational culture and practices. These practices may be decision making by committees and groups, or by adopting fixed or standard operating procedures. Culture of the organization will decide whether decisions are taken autocratically, creatively or through participation. Decisions are often not made by an individual alone in an organization alone. Decisions are made through a complex set of interaction between different people at different parts (functions) and levels of organizations, since the stakeholders of the outcome of decisions will be many. In real life in organizations it is rare to find decision making and other processes where social and political activity does not play a significant part (Teale et al, 2003, p 289). Decision making depends upon the environment under which decisions are made. Schermerhorn, (2003, ch. 17) describes these as certain, risky and uncertain environment. "Certain"

Issues of Alcohol Misuse

Issues of Alcohol Misuse Ethyl alcohol, also known as ethanol, is a chemical, liquid, colorless, flammable compound used industrially for the manufacture of medicines, perfumes, sprays and spirits as well as wine, beer, whiskey and others.There are two main methods for their production by the fermentation of sugars, the most common, or from the ethylene by a synthetic method. The production by fermentation of sugars is from macerated grain, fruit juices, honey, milk, potatoes or molasses, using yeast that create an enzymatic reaction that converts complex sugars into simple and then in alcohol.94 History There is evidence that consumption of intoxicating substances has been around since the Paleolithic era, although the purpose of its use is unknown, and the frequency of use in the Neolithic born an alcoholic beer-like product, which was obtained from barley fermentation. Wine was used almost exclusively by Roman settlers of origin and citizenship and this part of the imperial refined cuisine.95 Pharmacodynamics Alcoholis consumed by the oral route, after being ingested 20% of it is absorbed in the stomach and 80% in the small intestine, the absorption process is completed in an average of 30 to 60 minutes, even if a food intake simultaneously may be delayed up to 3 hours.Alcohol circulate freely in plasma, its metabolism occurs in the liver at a rate of between 7 to 10 grams per hour, this is removed from the body in small amounts so as respiratory renally.96 Metabolism The alcohol is oxidized to acetaldehyde by alcohol dehydrogenase (ADH), which is saturated with low levels of blood alcohol concentration, then acetaldehyde is converted to acetate by aldehyde dehydrogenase.Under normal situations acetaldehyde is metabolized rapidly and fails to accumulate normally, however when large amounts of alcohol consumed, the accumulation of acetaldehyde can cause symptoms such as headaches, nausea, dizziness and gastritis, which is a possible hangover.97 Types of alcoholic beverages Alcohol is industrialized in different presentations of the same, varying in taste, odor and color each time, the proportion of use of each type of alcohol varies between different social groups, both age and sex, as with social class the person.In this research the types of alcohol used in the universitys population.  Cervezabe defined, is the product of fermentation of malted barley, is one of the oldest alcoholic beverages.The basic elements of beer are malted barley, hops, yeast and water.The beer is known for being a little bitter and foamy and usually, except in special beers, it looks bright and clear.  Whiskey and Vodka  are distillated starch, distilled Vodka is produced from the fermentation broth of starch.Whiskey is distilled from the broth produced by fermenting grain and aged in wooden casks.  Ron,  is an alcoholic beverage obtained from the distillation of molasses and cane juice sugar and is colored with caramel.  Came,  we obtain fermentation of grape j uice, wine to distill methanol, aldehydes, esters, acids and higher alcohols is obtained.The obtained ethyl alcohol, also called heart, is essentially wine.98 Effects on the body Alcohol is part of our lives and culture, but the overuse of this can trigger serious health problems. Alcohol can not only lead to accidents or dependency, but alcohol abuse can cause organ damage, weaken the immune system and promote the development of neoplasms.99 Because alcohol potentially affects physical and mental health, chronic use both as a high intake at one time may increase the risk of death, directly, in the case of alcohol poisoning, or indirectly by altering behavior and induces violence.100 Immune and bloodsystem,the alcohol in excessive amounts can suppress the immune system making this way harder fight both viral and bacterial infections.Chronic use of large amounts of alcohol can also develop anemia and low platelets in the user. Bones andmuscles,Moderate use of some types of alcohol can prevent the development of osteoporosis, however when used excessively, this interferes with the absorption of calcium and contrary then develop into finalinstance osteoporosis.A great use alcohol chronically has also been associated with muscle weakness. Brain and nervoussystem,being under the influence of alcohol impairment involves judgment and concentration, lethargy involve extremely high amounts and in worst cases, coma.It is equally common temporary memory loss in those drinkers high rate of consumption.Brain tissue damage in people who use large amounts of alcohol, thiamine deficiency (vitamin B1), which can be caused by poor dietary intake or associates because alcohol reduces absorption and interferes with the use of this in the body, thiamine deficiency can evolve in a severe condition called Wernicke encephalopathy.Chronic alcohol use can likewise alter the cerebellum, which is responsible for balance and coordination of movement.Furthermore,peripheral nerves are also affected, causing pain and weakness. Heart and bloodpressure,excessive alcohol use increases the risk of coronary artery disease.Have been recorded cases of sudden cardiac death in patients with a history of heavy alcohol consumption, irregular heartbeat and chronic disease of the heart muscle.A high alcohol intake is linked to high blood pressure more frequently in men. Intestines,alcohol can lead to developing malnutrition because it blocks the absorption of many important vitamins and nutrients. Kidneys,alcohol intake leads to fluid loss since this acts as a diuretic, which can cause dehydration.Similarly von lost fluids can escape minerals and salts from the body, such as magnesium, phosphorus, sodium and potassium. Liver,chronic use of alcohol can damage the liver, with conditions ranging from fatty liver to alcoholic hepatitis and eventually cirrhosis.It is very common in fatty liver drinkers large amounts of alcohol, although this is reversible when the alcohol intake ceases.Alcoholic hepatitis is developed by a 10 to 35% and leads to symptoms such as fatigue and malaise, death from liver failure may occur in severe cases.Cirrhosis becomes suffered by 5 to 15% of you large consumers of alcohol, at this stage the liver has suffered irreparable harm where the affected cells are replaced by fibrous tissue. Lungs,drunkenness increases the risk of pneumonia, since high concentrations of alcohol in the blood are sedative and relax the mouth and throat, suppressing reflections and reduces the ability of the lungs to clear mucus and foreign bodies.Chronic alcohol use has also been associated with an increased risk of pneumonia, tuberculosis and acute respiratory distress syndrome (ARDS). Mentalhealth,alcohol affects mood in different ways, leading the person to feel happy, sad or aggressive.There is a risk of dependence when alcohol intake is given by anxiety or stress relief.Because alcohol increases aggressiveness and affects judgment, is often associated with people who have attempted or completed suicide.In people who drink large amounts of alcohol, mood disorders, including depression, anxiety and psychosis, alcohol abuse and dependence develop is also common in people with pre-existing mental condition.100 Reasons for use Young,  the reasons why young people use alcohol involve several factors such as the environment in which the person was raised during his childhood, peer pressure, social activities, and inadequate parental control.Children born in an environment where the sale of alcohol is part of the family economy are more likely to use it when they grow up, as well as children whose parents abused alcohol.The abundance of spirit with which society has today, also plays an important role in the development of the habit of using alcohol.  Adults,  there are similarities between the reasons that young people and adults consume alcohol, social and therapeutic reasons , stress, need for stimulation, pressure from peers.Adults report that alcohol offers relaxation after a busy day at work.101 Consumption patterns in university In universities there are students who are not consumers of alcohol, and sometimes consumers and consumers of high amounts of alcohol, there are predisposing reasons for students to consume alcohol or not, including the influence of family and friends.The fact that a student has consumed alcohol at some point in your life does not make an active consumer, however those who consume alcohol regularly, consumers can be classified into low-risk and high-risk consumers.Studies say that about 20.9% of adolescents report being regular drinkers.102 Toxic Dose It is established that the lethal dose of pure ethanol is 300 to 400ml in less than an hour in adults being potentially lethal dose of 10 ml / kg in children and 5ml / kg, as children are highly sensitive to ethyl alcohol.The clinical manifestations of alcohol intoxication will be related to blood alcohol concentration of10 to 50mgis still in a state of sobriety, so the stage is asymptomatic;30to120mg,produces euphoria, covering motor incoordination, emotional instability, restlessness, inattention and association of ideas;90to 250mgexcitability appears where irritability, dysarthria, muscular incoordination, hypoglycemia, lactic acidosis and visual disturbances seen;180to 300mgcomes the confusion, including sleep, drowsiness, marked incoordination, hypothermia and temporary amnesia;270 to 450mgof the patient falls into a coma, expressed punctate miosis, respiratory depression, areflexia, superficial and profound analgesia, metabolic acidosis, hypoglycemia and seizures;increased to45 0mg,death occurs from paralysis of Cardiorespiratory Centre.103 Alcohol Dependence When the individual has used his body to chronic alcohol intake, this begins to develop addiction and dependency, worsening by more consumed, inadequate intake of alcohol causes malaise, called withdrawal.WHO defines alcohol dependence as a mental and physical state usually also resulting from the ingestion of alcohol, characterized by responsesbehaviorand others, which always include a compulsion to drink alcohol continuously or periodically to experience its psychic effects and sometimes way to avoid the discomfort of withdrawal;tolerance may have or may not be present.104 Alcohol tolerance When high amounts of alcohol are ingested for prolonged periods, the body tends to develop a series of adaptive responses due to the constant presence of ethanol in the bloodstream.Studies demonstrated that continuous exposure to ethanol, results in a significant loss of activity of membrane in neurons besides adaptive changes in electrophysiological responses from them.105 Abuse in young The percentage of college students who ate five or more alcoholic beverages for a period of one month is 41.7% to 45.2% according to the National Institute on Alcohol Abuse and Alcoholism (NIAAA).Of those university students who inferred alcohol, 26.1% to 29.2% driving under the effects of alcoholic beverages.106 The age with the highest incidence of alcohol use are those being 21 and 23 years of age, the percentages being 49.9% at 21, 46.6% at 22 and 47.7% at 23, the fact that the highest percentage is at 21, it may be that in the most populous countries the legal age to consume alcohol is 21 years, the freedom to consume alcohol upon reaching the required age encourages young people to get alcohol as a sign that they are already adults.Anyway as young people themselves is easy to get alcohol even when you are under 21 years of age, this being expressed by 87% of students.106 Diagnostic criteria for alcohol abuse. There are four criteria according to DSM-IV avalà ºan if the consumer is within the range of alcohol, then it is enunciated identically to DSM-IV: a)  Recurrent use of alcohol, which leads to the violation of obligations at work, school or at home (eg, repeated absences or poor work performance related to substance use,.. Substance related absences, suspensions or expulsions school, neglect of children or household duties). b)  Recurrent alcohol use in situations in which it is physically hazardous (p. Example., Driving an automobile or operating a machine when impaired by substance use). c)  Repeated legal problems related to alcohol (p. Example., Arrests for alcohol-related disorderly conduct). d)  Continued alcohol use despite having persistent or recurrent social problems caused or exacerbated by the effects of alcohol interpersonal problems (p. Example., Arguments with spouse about consequences of intoxication, physical fights).107 Legality Across America the use of alcohol is allowed, however it is restricted to certain ages depending on the country.Some countries do not have regulationsfor the age at which it is allowed to use alcohol, this representing a risk for young people to develop negative behaviors on the use of alcohol.108 Alcohol and energy drinks The use of alcohol and energy drinks with high caffeine content has become popular in recent times.Previously the use of caffeine to maintain sobriety after having ingested alcohol was known for a large proportion of frequent drinkers today, because of this trend, there are drinks energy properties included in its composition, ie, according to studies allows the user not feel drunk even if you are at a stage where the alcohol in your system is categorized as intoxicated.109 Alcohol is addictive in a large proportion of people have used these once your palate to this, just as energy drinks with addictive substances like caffeine, alcohol and energy drinks use sum the probability that the individual will develop addiction to this such substances.Another property that has this binding substance is to increase the desire to continue taking more alcohol, increasing the risk of over-consumption and worsening the caudate damage by alcohol, since with increasing alcohol consumption people show less inhibitions.110 Due to the large increase in the simultaneous use of these substances the FDA (U.S. Food and Drug administration) issued notices care about inconsiderate alcoholic and energy drinks.Since the population is currently the most affected population is mostly young university, the FDA called the authorities to consider studies to understand clearly and precisely as these substances affect both together and individually, to college students in health and academic activity.111 There are many risks that bring the use of these substances from the increased likelihood of developing dependence to a greater chance of developing alcohol poisoning.The use of energy drinks during the same period in which they are drinking alcohol keeps an alert position and gives the perception of a lesser degree of intoxication which leads people to consume greater quantities of alcohol.Drinking alcohol and energy drinks together is associated with a decline in the notion of deteriorating mental and physical health caused by alcohol.112 The use of energy drinks is associated in many cases people who have a problem with alcohol.Studies show that in people where a problem is reported in the consumption of energy drinks, usually a high frequency of episodes of high alcohol intake, and problems resulting from consumption of alcohol and increased symptoms of alcohol dependence were reported.113 Regarding susceptibility possessing people ingest energy drinks tend to develop alcohol dependence, studies show that people who used energy drinks with high frequency had begun to consume alcohol and become intoxicated at a younger age than those who do not frequently consumed energy drinks, like having drunk more alcohol in the past year and more drinks on a typical night of drinking alcohol, plus they were more likely to meet diagnostic criteria for alcohol dependence.114 There are several reasons that motivate young people to consume alcohol with energy drinks, in fact these are the drinks consumed while on holiday and that adding some kind of energy drink alcohol improves the taste of the beverage.Observations indicate that college students who visited a bar reported greater use of alcohol in those who had consumed energy drinks, these students also had a threefold increased risk was after leaving the bar highly intoxicated by alcohol.115 Among the factors that influence the use of alcohol with energy drinks among young people is equally the fact that these young people mostly believe in the idea thatwill look better in front of others if they consume these types of drinks, associating greater popularity with the same classmates. College students report that if they are seen with some energy drink while consuming alcohol, they feel somehow more striking and interesting manner.116

Einhard and Charlemagnes Palace School: A Mechanism for Wealth, Prestige, Power and Success :: essays research papers fc

Einhard was a courtier in Charlemagne’s Frankish Kingdom. During Charlemagne’s rule/life (768-824), he dedicated a vast amount of time and energy into supporting the notions of classical learning. He went so far as to start a school comprised of many scholars within his palace. Their role was to educate the nobility, the priesthood and the people, as well as hold counsel with the king. This is where Einhard and Charlemagne first encountered each other. Einhard was a small but intelligent man who came to prominence in the PiousCharlemagne’s and Charlemagne’s son’s kingdom. It is often asked how such a small man came to be the heart of the kingdom, and how the court school and the opportunities it provided influenced his success. During the late 8th and early 9th century, Charlemagne came to power. He expanded the kingdom and conceived many reforms during his reign. Charlemagne ruled the Frankish Kingdom from 768-814. He was one of Pepin the thirds two sons. Charlemagne’s brother, Carolman died in 771, and Charlemagne became the sole ruler of the Franks. Almost as soon as Charlemagne assumed the throne he commenced a series of campaigns. From 772-804 Charlemagne was at war with Saxony, from 773-774 Charlemagne was also at war with the Lombards in Italy. In 778, Charlemagne was invited into Northern Italy to extend Christian influence. In 787 Charlemagne invaded and seized Bavaria. Finally, from 788-797, Charlemagne launched a campaign against the tribal horsemen, the Avars. In 789, Charlemagne issued â€Å"The General Admonition†, the concept of the document was that moral reform requires education. At this time, Charlemagne created the palace school at his court, scholars were brought to this school to reform the Frankish priests and people. Various other reforms took place during this time, such as the new form of writing, Caroli ngian Minuscule, and the writing down of law codes. On December 25, 800, Charlemagne was crowned Holy Roman Emperor by Pope Leo the third in the St. Peter’s cathedral in Rome. Charlemagne died in 814, and was succeeded by his only remaining son, Louis the Pious. Louis the Pious reigned as Holy Roman Emperor from 814-840. When he assumed the throne he quickly replaced administers within the palace. Louis the Pious had three sons; Lothar, Charles the Bald, and Louis the German. Near the beginning of his reign, Louis already faced conflict. In 818, Louis quashed a rebellion orchestrated by his cousin, Count Bernard of Aquitaine . Einhard and Charlemagnes Palace School: A Mechanism for Wealth, Prestige, Power and Success :: essays research papers fc Einhard was a courtier in Charlemagne’s Frankish Kingdom. During Charlemagne’s rule/life (768-824), he dedicated a vast amount of time and energy into supporting the notions of classical learning. He went so far as to start a school comprised of many scholars within his palace. Their role was to educate the nobility, the priesthood and the people, as well as hold counsel with the king. This is where Einhard and Charlemagne first encountered each other. Einhard was a small but intelligent man who came to prominence in the PiousCharlemagne’s and Charlemagne’s son’s kingdom. It is often asked how such a small man came to be the heart of the kingdom, and how the court school and the opportunities it provided influenced his success. During the late 8th and early 9th century, Charlemagne came to power. He expanded the kingdom and conceived many reforms during his reign. Charlemagne ruled the Frankish Kingdom from 768-814. He was one of Pepin the thirds two sons. Charlemagne’s brother, Carolman died in 771, and Charlemagne became the sole ruler of the Franks. Almost as soon as Charlemagne assumed the throne he commenced a series of campaigns. From 772-804 Charlemagne was at war with Saxony, from 773-774 Charlemagne was also at war with the Lombards in Italy. In 778, Charlemagne was invited into Northern Italy to extend Christian influence. In 787 Charlemagne invaded and seized Bavaria. Finally, from 788-797, Charlemagne launched a campaign against the tribal horsemen, the Avars. In 789, Charlemagne issued â€Å"The General Admonition†, the concept of the document was that moral reform requires education. At this time, Charlemagne created the palace school at his court, scholars were brought to this school to reform the Frankish priests and people. Various other reforms took place during this time, such as the new form of writing, Caroli ngian Minuscule, and the writing down of law codes. On December 25, 800, Charlemagne was crowned Holy Roman Emperor by Pope Leo the third in the St. Peter’s cathedral in Rome. Charlemagne died in 814, and was succeeded by his only remaining son, Louis the Pious. Louis the Pious reigned as Holy Roman Emperor from 814-840. When he assumed the throne he quickly replaced administers within the palace. Louis the Pious had three sons; Lothar, Charles the Bald, and Louis the German. Near the beginning of his reign, Louis already faced conflict. In 818, Louis quashed a rebellion orchestrated by his cousin, Count Bernard of Aquitaine .

Change Process Theories

Change Process Theories: A Review Outline Introduction Four types of Organizational Change Theories: Van de Ven and Poole †¢ Dialectical: Kurt Lewin †¢ Evolution: o Lippitt, Watson, and Wesley o Bartlett and Kayser †¢ Teleology: o Edgar Schein o Prochaska and DiClemente †¢ Life Cycle: Ichak Adizes Conclusion Introduction An enduring quest of management scholars is to explain how and why organizations change. The processes of change or sequences of events have been difficult to define, let alone manage. Researchers have borrowed many concepts from many fields of study, including sociology, biology, and physics. Van de Ven and Poole (1995) proposed four categories of organizational change: dialectical, evolution, teleological and life cycle. Dialectical theory is the development of an organization through the conflict, competition, and/or collaboration of internal or external interests, wherein the status quo is changed regardless of the overall benefit or detriment to the organization. Evolutionary theory views organizational change as the cumulative change brought about through the continuous cycle of variation, selection and incorporation, and retention, caused by competition for scarce resources, environmental change or imposed conditions. Teleology is the purposeful development of an organization towards a defined end result or in line with a predetermined collective ideology by means of repetitive sequences of goal definition, implementation, evaluation and modification. Finally, Life Cycle theory is the linear, organic development of an organization from a homogenous, undefined entity to a differentiated, structured entity through accumulated experiences arising from the pressure of external events as mediated by internal logic, rules or programs. Within these four categories, I present six theories of organizational change to illustrate the underlying concepts within each category. Dialectical Theory Kurt Lewin is widely regarded as one of the pioneers in the study of change processes. A social scientist, Lewin postulated that human behavior is based on a relatively stationary equilibrium of two groups of forces. While driving forces facilitate change by pushing in the desired direction, counterforces known as restraining forces immediately sprout to hinder the change. When a significant change in these forces occurs, behavior must also shift to maintain equilibrium. After equilibrium is reached, the new behaviors gradually become the standard for maintaining the status quo. Lewin described this process in his article, Frontiers in Group Dynamics: â€Å"A change toward a higher level of group performance is frequently short lived; after a â€Å"shot in the arm† group life soon returns to the previous level. This indicates that it does not suffice to define the objective of planned change in group performance as the reaching of a different level. Permanency of the new level, or permanency for a desired period, should be included in the objective. A successful change includes, therefore, three aspects: unfreezing (if necessary) the present level, moving to the new level, and freezing group life on the new level† (p 34). The Evolutionary Theories Lippitt, Watson, and Westley expanded on Lewin’s work by introducing the idea of a relationship between the change agent and the ‘client’ or organization to be changed. Lippitt et al. ’s theory proposes seven phases. The first phase focuses on developing a need for change. A client must not only be aware of a problematic situation, but must believe a better state of affairs is possible, and that the change agent (whether a consultant or method) is relevant and available. Phase two is the establishment of a change relationship. As with any human relationship, one of the most delicate yet absolutely crucial elements in forming the change relationship is the first impression. â€Å"Often the client system seems to be seeking assurance that the potential change agent is different enough from the client system to be a real expert and yet enough like it to be horoughly understandable and approachable† (Lippitt et al. p 134). Phases three, four, and five are an elaboration on Lewin’s moving stage, and can be grouped together under the heading: moving toward change. These straightforward phases are (3) Clarification or Diagnosis of the client’s problem (4) Examination of the Alternative Routes and Goals and Establishing Goals and Intention s of Action, and (5) Transformation of Intentions into Actual Change Efforts. Lippitt et al. return to Lewin’s Refreezing stage with phase six: The generalization and stabilization of change. A critical factor in the stabilization of change is the spread of change to neighboring systems. A change is much more likely to be retained if reinforced by colleagues’ usage. The final phase, achieving a terminal relationship, focuses on preventing a dependency on the change agent for support and developing a form of client self-reliance for future problem-solving. Lippitt et al. issue a final caution, noting that the seven phases present are not always sequential, and the phases can overlap or repeat themselves throughout the change process. Bartlett and Kayser (1973) propose that successful change depends on a reactive redistribution of power within the structure of an organization. This power redistribution optimally occurs through a six phase series of stimuli and reactions. Stimulus 1: Pressure on top management takes the form of both internal pressure (such as union strikes, low productivity, high costs or interdepartmental conflict) and external pressure (such as lower sales, stockholder discontent, or a competitor's breakthrough. When these pressures offset one another, e. g. high sales despite employee grumbling, there is little incentive for top management to induce change. However, when internal and external pressures are aligned, Reaction 1: Arousal to take action senior management seeks a consultant or other diagnostic tool to discover the problem. Stimulus 2: Intervention at the top – While long-term managers tend to look for individuals and groups to blame, â€Å"outsiders† tend to see the org anizational structure or processes as equally likely culprits. The â€Å"outsider†, presumably hired and respected for his expert ability to improve organizational practices, is in an ideal position to Reaction 2: Reorient top management to internal problems. In order to Stimulus 3: Diagnose problem areas effectively, top management speaks with multiple levels of the organization. This step largely determines the success of the change. Top menagers who only consult their immediate subordainates gather little to no new data. Managers who conduct a comprehensive hierarchy-spanning feedback search not only acquiremore information but have a positive reinforcing effect on the change to come. By consulting all hierarchy levels, managers achieve employee buy-in, drawing employees to believe that not is management itself willing to change, but actual important problems are being acknowledged and ideas from lower levels are being valued by upper levels (Bartlett and Kaser, 1973, p. 58). In contrast, manager who take a unilateral approach are making changes based on limited viewpoints with little to no employee buy-in. Perhaps even worse is the CEO who delegates the change to a subordinate, who potentially has less information, less clout within the organization, and the lingering uncertainty that top management isn't sincere about the change. Reaction 3: Recognition of specific problems found through the diagnosis process will cause deliberation resulting in the Stimulus 4: Invention of a new solution. Suggestions for solutions can be gathered in phase 3. Barlett and Kayser place particular importance on group collaboration for generating potential solutions. Through this collaboration, there is greater Reaction 4: Commitment to the new courses of action. Stimulus 5: Experimentation with new solutions inevitably produces occasional setbacks and/or outright failure. During this period, the multi-level employee endorsement of change becomes critical as the organization Reaction 5: Reviews the results of the change. While non-effective ‘solutions' are thrown out, effective solutions are propagated and expanded. Ideally, the quietly discarded solutions only briefly demoralize their advocates, while the retained superior solutions have an infectiously positive effect. Finally, this Stimulus 6: Reinforcement from positive results ushers in a full scale Reaction 6: Acceptance of the new practices. Teleological Theories Edgar Schein further defined Lewin's three stage theory, proposing that the Unfreezing stage can be subdivided into three steps: Disconfirmation, Induction of Guilt or â€Å"survival anxiety†, and Creation of Psychological Safety. Disconfirmation is characterized by the dissatisfaction and/or frustration with the current state of affairs. Survival anxiety occurs when the dissatisfiers are accepted as valid and linked to the nonattainment of goals. The primary restraining force at this stage is learning anxiety – having to admit that the current behaviors are â€Å"wrong† and the additional fear that attempting a new process may result in failure and a loss of esteem. The Creation of Psychological Safety step is the addressing and overcoming of this fear. Schein further subdivided Lewin’s theory by splitting the moving process into three phases. The first phase, Cognitive Redefinition is typified by organizational members discovering that the definitions, concepts and other anchors previously relied upon are not absolutes. While the unfreezing stages create motivation for change, the second phase, termed Imitation and Identification with a Role Model, determines whether the change is beneficial or harmful, depending on the role model chosen. However, if there are no attractive role models, the third phase, Scanning of Alternatives and Trial and Error, comes into play. Occasionally, if there is sufficient psychological safety, spontaneous insight into a solution may occur. This spontaneous insight is highly valuable because such insights often take into account both stated and hidden unique obstacles to a change, unlike process consultants who often can only address the stated barriers. With regard to the Refreezing stage, Schein notes that the new behaviors must be at least somewhat compatible with the remaining behaviors or the cycle of disconfirmation may restart, potentially reversing the progress made, or devolving into an endless cycle of new behaviors. Prochaska et al (1992) developed a change behavior model for the health care field which has gradually been extended to other disciplines. Much like Lewin's model, their model defines the general process of change. Unlike Lewin, Prochaska et al. present their five stages of behavioral change as cyclical in nature rather than as a simple progression. Please see figure 1. Precontemplation (PC) is the stage at which there is no intention to change behavior in the near future. Typically, an external force such as a lawsuit or technological advancement occurs to push an organization into the next stage. Contemplation (C) is the stage where the problem or undesirable behavior is recognized, and serious consideration is given to change the behavior. This stage is characterized by the weighing of current opportunity costs against the actual costs of modifying the problem. Preparation (PP) is a stage that combines intention and initial attempts to change behaviors. The organization intends a full transformation of the indicated ‘problem behaviors' in the very near future. The cessation of undesirable behaviors and embrace of the new behaviors marks the advent of the Action (A) stage. The Maintenance (M) stage is often, and incorrectly, viewed as a static stage. In truth, this stage is the continuation and reinforcement of the new behaviors. This stage becomes particularly pertinent when the initial attitude of ‘new and improved' begins wearing thin and organizational members consciously or subconsciously attempt to return to the ‘old and trusted' methods. This backslide can continue (precontemplation) until the problem is once again addressed (contemplation). Life Cycle Theory In his 1998 book, Adizes presents one of the clearest descriptions and in depth refinements of Life Cycle organizational development models to date. Based on ten sequential stages of development, he addresses the attitudes, issues, and threats at each stage of life. These life stages are categorized into the growing phase, second birth and coming of age, and aging organizations. Please see figure 2 for reference. (In the interest of brevity, a few potential alternative stages have been omitted. ) The Growing Phase begins with the courtship stage where the organization is only an idea in the founder’s mind. At this time, the founder is building inspirational momentum – revving his courage so that when the time comes to make the decision to take the risk, he has the internal commitment to survive the external doubts and hardships. During the courtship stage, this commitment determines whether the idea will result in a healthy organizational child or if it is merely an affair, a momentary infatuation with entrepreneurship. Once the risk has been undertaken, the nature of the organization mutates drastically. At this Infancy stage of the organization, there is an overriding emphasis on doing rather than thinking; thinking of new products may be useful in the future, but sale of current products ensures a future will exist. The organization is incredibly personal, with little hierarchy. Formal procedures are non-existent except for those imposed by outside forces, i. e. laws and government regulation. Like an infant, the organization requires periodic infusion of milk (cash) and the constant tending of its creator. The period of infancy is necessarily short. The energy level required plateaus as brand loyalty builds, suppliers stabilize, and the production problems are no longer a daily crisis: the baby begins sleeping through the night. The infant organization moves into the Go-Go stage. With the idea working, ends meeting, and sales flourishing the founder and the organization become arrogant. The struggle to survive fades to the back of the mind and every opportunity becomes a priority: after all, if one dream came true, why not other dreams as well? The toddler shoves every opportunity into its mouth, without regard for nutritional value. Whereas in the infancy stage there was no hierarchy, the Go-Go stage begins development of a structure. At the beginning of the stage, the responsibilities are shared and many tasks overlap: the organization is organized around the people not the tasks. The CEO risks falling into the Founders Trap: failing to realize the organization has moved beyond a one-man show, that decentralization and delegation have become imperative. The signs of imminent crisis, the arrogance, uncontrolled growth, lack of structure and centralized decision making, are obfuscated by soaring sales, overconfidence from success, and the residual stubbornness of an entrepreneur fighting for his dream. When the crisis hits, the company falters and a second birth occurs. The Second Birth and Coming of Age Phase begins with Adolescence: an awkward period that is more painful and prolonged than infancy. Like a teenager trying to establish independence from his family, the adolescent organization’s characteristic behaviors include conflict and inconsistency. In delegating, the founder must content himself with offering advice instead of taking control: he must allow his organizational child to make mistakes in order to learn from them. Gradually, the organization establishes its sovereignty, with the occasional clash with ‘old management’. This can precipitate a divorce, especially if the founder decides that the organization's goals have become incompatible with his own. The adolescent organization experiences a shift from merely generating more sales, to generating better sales with less overhead and more profit. When the overall structure of the administration stabilizes and leadership roles become institutionalized, the organization moves to the next stage of development: Prime. Prime is the optimum point on the life cycle curve, combining the vision and aggressiveness of a Go-Go with the structure solidified in Adolescence to back it up. This is not to say that a company in its prime has stopped growing, but that growth has become planned and controlled. The challenge of Prime is to continue the momentum, and not become complacent and ride the inertial growth from previous stages. If a Prime organization does not refuel this momentum, organizational vitality will level off, and will enter the stage called Stable, the end of growth and the beginning of decline. The Stable stage is first in the Aging Phase in the organizational life cycle. The organization slowly loses flexibility; the persistent sense of urgency departs and is replaced with a feeling of security in the relatively stable market share acquired over the years. Several changes slip in: the developmental spending budget grows while the product and market research budgets decline, management training is substituted for management development, and there is a power shift to the finance department from engineering, marketing, or research and development. Despite these changes, there is markedly less conflict in the Stable stage. There are no major transitional events in the Aging phase as there were in the Growing phase. Instead, there is a slow process of deterioration. As the organization draws back from personalized attention to each client, it slides into Aristocracy. The organization is often cash rich, leading organizational members to misclassify themselves as in the prime stage. â€Å"Don’t make waves† becomes the company motto, and uniformity of thought, dress, and address becomes the norm. While Bob and Mary may be on a first name basis outside of the office, or behind closed doors, during meetings it is inevitably Mr. Smith and Ms. Jones. Another notable communication change is that focus is placed on how something was said, rather than what is said. Because of the organizational taboo against sparking conflict, consultants are brought in to give voice to the deadly trend of expecting external forces to increase market share without the executives having to admit anything. The consultant reports are often read, but ignored until the advent of Early Bureaucracy. With revenues and profits plummeting and a high turnover of good people, the Early Bureaucracy witch hunt begins. Internal conflict, back stabbing and paranoia obliterate any remaining customer focus. The organization focuses on who caused a problem rather than on what to do about it. The remaining creative individuals jump ship or are fired as though they were the source of the problems. The organization has two options remaining: Bureaucracy or Death. If a company is subsidized or nationalized, it has attached itself to life support: autonomic (administrative) functions are kept moving, but the vital spark from the infancy stage has been extinguished. The organization has become a Bureaucracy; its only purpose is to perpetuate its existence. Eventually, through internal decision making or government reallocation of funds, the organization quietly dies. Conclusion As theories develop, they become more specific and therefore more limited in scope. Scholars examining these theories develop a form of tunnel vision, and can become stymied by unexplainable behavior outside their specialty. Van de Ven and Poole's taxonomy of change theory types helps to reacquaint researchers with the wide variety of possibilities. Further research on the meta-analysis of change theories is indicated. References Adizes, Ichak. (1988). Corporate Lifecycles: How and Why Corporations Grow and Die and What to do About It. Prentice Hall. Englewood Cliffs: New Jersey. Armenakis, Achilles and Bedeian, Arthur. (1999). Organizational Change: A Review of Theory and Research in the 1990s. Journal of Management. 25. 293 – 315. Bartlett, Alton and Kayser, Thomas. (1973). Changing Organizational Behavior. Prentice Hall. Englewood Cliffs: New Jersey Lewin, Kurt. (1947). Frontiers in Group Dynamics. Human Relations. 1. 5-41. Prochaska, James, DiClement, Carlo, and Norcross, John. In Search of How People Change: Applications to Addicitive Behaviors. American Psychologist. 47. 1102 – 1114. Romanelli, Elaine. (1991). The Evolution of New Organizational Forms. Annual Review of Sociology. 17. 79-103. Retrieved November 29, 2006 from JSTOR. http://links. jstor. org/ sici? sici=0360-0572%281991%2917%3C79%3ATEONOF%E2. 0. CO%3B2-M Van de Ven, Andrew. (1995). Explaining Development and Change in Organizations. Academy of Management Review. 20. 510-540.