Workshop Critique Essay Example | Topics and Well Written Essays - 2000 words

Workshop Critique - Essay Example The plan picked by this particular gathering put into impact KOLB's hypothesis of trial learning (Kolb 1976). This was against different models for an assortment of reasons. The Johari Window is explicit to each individual in light of its division into what the individual thinks about them, what others think about the person that is known and obscure to them and what is obscure about the person to both himself and the gathering (Luft and Ingham). In this way all the Johari Window does is speak to data about the person comparable to his group or gathering. The stepping stool of derivation focuses on the understanding that keeps a person from arriving at an inappropriate resolutions (Senge 1994). Along these lines, at the end of the day it helps a person to think about the realities and reality before settling on any choice. The stepping stool plays on the person's conviction that his thoughts and information probably won't be the right or levelheaded verification that the group looks for. This thought was excessively explicit to persuading and training reality so it was predestined as the picked idea Tuckman's hypothesis is viewed as one of the best group ideas at any point made. The idea spins around focusing in the group's history: from its creation to the satisfaction of the errand, the hypothesis amasses and prevails with regards to understanding the aggregate of accomplishing any given assignment (Tuckman 1965). Tuckman likewise feels the need of including a stage known as: suspending and changing that applies simply after the group has completed their task. In this way, the idea discusses five stages: making a group, conceptualizing thoughts, making decides and values that must be followed, doing the training and gaining as a matter of fact. Our group decided to follow Kolb's idea. For this idea to come into influence completely it was important to run it against a specific kind of experimentation. Kolb's model chips away at the possibility of a four-phase learning cycle: solid experience, intelligent perception, theoretical conceptualization and dynamic experimentation. Therefore every person in the group surrenders to four unique feelings: feeling, watching, thinking and doing (Chapman 2003). Our group combined the Kolb model with specific parts of the Tuckman model to make a movement and condition that would suit the requirements to show the activities and complexities of cooperation. By deciding to play a short game, Tuckman's hypothesis of short tasks to be the best pointer became possibly the most important factor. Not exclusively was the movement picked, short however it likewise permitted the facilitator to watch the conduct of the group over a quantifiable time span, permitting the decisions that were made to be useful and exact. Likewise, the movement which took set permitted each individual from the group to take part in every part of Kolb's model. Not exclusively was each colleague expected to be a functioning member however they were likewise connected with into observing the guidelines of sincerely including themselves into the errand, taking an interest in it, improving by viewing the kindred individuals and in the end doing the most ideal activity they thoug ht (Kolb and Fry). Results and

Health Prevention of Heart Disease for Plano Texas Essay Example for Free

Wellbeing Prevention of Heart Disease for Plano Texas Essay Because of the expansion chance for Heart ailment in Plano, the populace is Risk for creating Hypertension which thusly could bring about diminished cardiovascular yield, action prejudice, imbalanced sustenance by taking more than body necessities, and a learning insufficient in with respect to condition, treatment intend to incorporate, diet, work out, development, Untreated Hypertension possibly puts them in danger for Congestive cardiovascular breakdown, angina, or myocardial localized necrosis. These thusly can bring about serious agony, diminished heart yield, incapable tissue perfusion, and again a learning inadequate as to condition, treatment plan and self-care after release. Advancement of any of the above puts the patient in danger for potential uneasiness and melancholy which might be a consequence of changes in job, especially for the male provider, in this manner bringing about a danger or change in financial status, changes in condition and schedules or danger or saw danger to self-idea and Interpersonal clashes. In surveying availability to learn in Plano, Texas it is essential to note over 53% of grown-ups have a bachelor’s certificate or higher (more than double the national normal) (Demographics). This populace is in a superior spot to assimilate information. Normally, youthful and moderately aged grown-ups take part more than more established grown-ups, and the normal age in Plano is 37. 2 so this is a positive for learning as we push ahead on our Health Promotion plan (Adults). The populace more in danger for trouble in learning is the destitute. The all out number of destitute as of September 2012 is 291; this is a 55% expansion since a year ago (Conrad, 2012). Despite the fact that this is definitely not an immense number relatively it is critical in assessing availability to learn. Vagrants are at an extraordinary disservice for accepting access to training since it isn't as effectively promptly accessible to them. There are various network assets for the destitute, and it is significant we work with The Samaritan Inn, The Family Promise Network, My Friend’s House just as the Collin County Homeless Coalition, and the Metro Dallas Homeless in introducing the instruction materials we have a superior potential for success of the material being gotten, ingested and applied by the destitute populace. It is likewise imperative to work with these projects to check whether the training is being executed inside the offices by assessing feast choices, access or support of activity. This can fill in as not just physical by enthusiastic favorable position to all in danger patients.

18 Interesting and Inspirational Quotes About Editing and Proofreading

18 Interesting and Inspirational Quotes About Editing and Proofreading If you think the business of writing is difficultâ€"try editing. In fact, both writers and editors alike have a lot to say about the often-frustrating process of whittling words and emotions down to only the best. Heres our list of 18 quotes about editing that keep it real.So the writer who breeds more words than he needs, is making a chore for the reader who reads.Dr. SeussKill your darlings, kill your darlings, even when it breaks your egocentric little scribblers heart, kill your darlings.Stephen King, On Writing: A Memoir of the CraftTo me, the single biggest mark of the amateur writer is a sense of hurry.Hurry to finish a manuscript, hurry to edit it, hurry to publish it. Its definitely possible to write a book in a month, leave it unedited, and watch it go off into the world and be declared a masterpiece. It happens every fifty years or so.For the rest of us, the single greatest ally we have is time. Theres no page of prose in existence that its author cant improve after its be en in a drawer for a week. The same is true on the macro level â€" every time I finish a story or a book, I try to put it away and forget it for as long as I can. When I return, its problems are often so obvious and easy to fix that Im amazed I ever struggled with them.Amateur writers are usually desperate to be published, as soon as possible. And I understand that feeling â€" you just want it to start, your career, your next book, whatever. But I wonder how many self-published novels might have had a chance at getting bought, and finding more readers, if their authors had a bit more patience with them?Charles FinchWriting without revising is the literary equivalent of waltzing gaily out of the house in your underwear.Patricia FullerWhile writing is like a joyful release, editing is a prison where the bars are my former intentions and the abusive warden my own neuroticism.Tiffany MadisonEditors can be stupid at times. They just ignore that authors intention. I always try to read una bridged editions, so much is lost with cut versions of classic literature, even movies dont make sense when they are edited too much. I love the longueurs of a book even if they seem pointless because you can get a peek into the authors mind, a glimpse of their creative soul. I mean, how would people like it if editors came along and said to an artist, Whoops, you left just a tad too much space around that lily pad there, lets crop that a bit, shall we?. Monet would be ripping his hair out.We never end up with the book we began writing. Characters twist it and turn it until they get the life that is perfect for them. A good writer wont waste their time arguing with the characters they create...It is almost always a waste of time and people tend to stare when you do!C.K. WebbWhen an editor works with an author, she cannot help seeing into the medicine cabinet of his soul. All the terrible emotions, the desire for vindications, the paranoia, and the projection are bottled in there, al ong with all the excesses of envy, desire for revenge, all the hypochondriacal responses, rituals, defenses, and the twin obsessions with sex and money. In other words, the stuff of great books.Betsy Lerner, The Forest for the TreesA good editor doesnt rewrite words, she rewires synapses.S. Kelley HarrellThis leads me to the Higher Editing. Take of well-ground Indian Ink as much as suffices and a camel-hair brush proportionate to the inter-spaces of your lines. In an auspicious hour, read your final draft and consider faithfully every paragraph, sentence and word, blacking out where requisite. Let it lie by to drain as long as possible. At the end of that time, re-read and you should find that it will bear a second shortening. Finally, read it aloud alone and at leisure. Maybe a shade more brushwork will then indicate or impose itself. If not, praise Allah and let it go, and when thou hast done, repent not. The shorter the tale, the longer the brushwork and, normally, the shorter th e lie-by, and vice versa. The longer the tale, the less brush but the longer lie-by. I have had tales by me for three or five years which shortened themselves almost yearly. The magic lies in the Brush and the Ink. For the Pen, when it is writing, can only scratch; and bottled ink is not to compare with the ground Chinese stick. Experto crede.Rudyard Kipling, Something of MyselfThe first draft is black and white. Editing gives the story color.Emma HillWriting is not like painting where you add. It is not what you put on the canvas that the reader sees. Writing is more like a sculpture where you remove, you eliminate in order to make the work visible. Even those pages you remove somehow remain. There is a difference between a book of two hundred pages which is the result of an original eight hundred pages. The six hundred pages are there. Only you dont see them.Elie WieselWhen you write a story, you are telling yourself the story. When you rewrite, your main job is taking out all the things that are NOT the story...Your stuff starts out being just for you...but then it goes out. Once you know what the story is and get it right, as right as you can...it belongs to anyone who wants to read it, or criticise it.Stephen King, On Writing: A Memoir of the CraftAn editor doesnt just read, he reads well, and reading well is a creative, powerful act. The ancients knew this and it frightened them. Mesopotamian society, for instance, did not want great reading from its scribes, only great writing. Scribes had to submit to a curious ruse: they had to downplay their reading skills lest they antagonize their employer. The Attic poet Menander wrote: those who can read see twice as well. Ancient autocrats did not want their subjects to see that well. Order relied on obedience, not knowledge and reflection. So even though he was paid to read as much as write messages, the scribes title cautiously referred to writing alone (scribere = to write); and the symbol for Nisaba, the Mes opotamian goddess of scribes, was not a tablet but a stylus. In his excellent book A History of Reading, Alberto Manguel writes, It was safer for a scribe to be seen not as one who interpreted information, but who merely recorded it for the public good.In their fear of readers, ancients understood something we have forgotten about the magnitude of readership. Reading breeds the power of an independent mind. When we read well, we are thinking hard for ourselvesâ€"this is the essence of freedom. It is also the essence of editing. Editors are scribes liberated to not simply record and disseminate information, but think hard about it, interpret, and ultimately, influence it.Susan Bell, The Artful Edit: On the Practice of Editing YourselfEditing fiction is like using your fingers to untangle the hair of someone you love.Stephanie RobertsLet the reader find that he cannot afford to omit any line of your writing because you have omitted every word that he can spare.Ralph Waldo EmersonDont cross out. (That is editing as you write. Even if you write something you didnt mean to write, leave it.) Dont worry about spelling, punctuation, grammar. (Dont even care about staying within the margins and lines on the page.) Lose control. Dont think. Dont get logical. Go for the jugular. (If something comes up in your writing that is scary or naked, dive right into it. It probably has lots of energy.)Natalie Goldberg, Writing Down the Bones: Freeing the Writer WithinLearn to enjoy this tidying process. I dont like to write; I like to have written. But I love to rewrite. I especially like to cut: to press the DELETE key and see an unnecessary word or phrase or sentence vanish into the electricity. I like to replace a humdrum word with one that has more precision or color. I like to strengthen the transition between one sentence and another. I like to rephrase a drab sentence to give it a more pleasing rhythm or a more graceful musical line. With every small refinement I feel that Im coming nearer to where I would like to arrive, and when I finally get there I know it was the rewriting, not the writing, that won the game.William Zinsser, On Writing Well: The Classic Guide to Writing NonfictionIve reached that final moment of editing a bookâ€"the one where the text manifests as a living breathing person and starts slugging me in the face.Richard Due

THE PRINCIPLES OF MANAGEMENT ANALYSIS - Free Essay Example

Sample details Pages: 21 Words: 6249 Downloads: 8 Date added: 2017/06/26 Category Management Essay Type Analytical essay Did you like this example? We must understand who is manager before further our study into the aspects of management. Managers have long been responsible for planning, organizing, leading and controlling in such a way as to ensure that the organizations objectives are achieved efficiently. A major change is occurring in many organizations, however Management is increasingly becoming a responsibility of every individual in the organization, not just those who are formally designated as managers. Don’t waste time! Our writers will create an original "THE PRINCIPLES OF MANAGEMENT ANALYSIS" essay for you Create order In many organization, all members are managing themselves more than was generally in the past. They are performing some of the functions of management, such as planning, not simply the task assigned to them as part of the organizing process. 1.1.2 Who are managers? Manager can be defined as, A manager is an individual who is directly responsible for ensuring that tasks are performed by people or employees in an organisation. or A manager is a person tasked with overseeing one or more employees or departments to ensure these employees or departments carry out assigned duties as required Practically, managemer is divided into three levels, 1) Senior / Top managemer 2) Middle manager and 3) First level / Lower manager. Top managers, who are responsible for making ornagization decision and establishing the plan and goals that affect the entire organisations. These individuals typically have titles such as Executive Vice President, Vice President, President, Chief Operation Officer (COO) or Chief Executive Officer (CEO). Senior or Top manager commonly consists of a board of directors or shareholders who own the company and are responsible for making key decisions that affect the company. Middle managers include all levels of mana gement between the first level manager and top level of the organisation. These managers manage the work of first-line managers and may have titles such as regional managers, project leader, plant managers or division managers. First-line managers, the lowest level of management, manage the work of nonmanagerial employees who typically are involved with producing the organizations products or servicing the organizations customer. There are three key elements to get to know about the manager. The fuctions performed by managers in the management environment, roles and the skills. This three key elements will be discussed later. 1.1.3 What is management? Self check : In your opinion, what is the definition of management? Management can be defined as follows: Management is defined as the process of overseeing and coordinating resources efficiently and effectively in line with the goals of the organisation. The attainment of organizational goals in an effective and efficient manner through planning, organizing, leading and controlling organizational resources In the simplest of terms, management is all about getting things done. However, it is the way and the process of how one achieves ones target or goals and it is in this respect that management is considered an art and a science as well. Peter Drucker (1993) defined management as Supplying knowledge to find out how existing knowledge can best be applied to produce results is, in effect, what we mean by management. But knowledge is now also being applied systematically and purposefully to determine what new knowledge is needed, whether it is feasible, and what has to be done to make knowledge effective. It is being applied, in other words, to systematic innovation. (Drucker, 1993) From all the above definitions, it is clear that management is a creative as well as a systematic flow of knowledge that can be applied to produce results by using human as well as other resources in an effective way. Management has not been limited to managing human resource; management today has been segregated into various branches like financial management, strategic management, operations management, time management, crisis management, marketing management etc. Each of these is a separate branch that is being handled by managers who specialize in these fields. Today the importance of management from an organizations point of view has increased multifold. It is only through effective management that companies are developing and executing their businesss policies and strategies to maximize their profits and provide with the best of products and services. Management today combines creative, business, organizational, analyt ical and other skills to produce effective goal-oriented results! Some of the key functions in management includes learning to delegate, planning and organizing, communicating clearly, controlling situations, motivating employees, adapting to change, constantly innovating and thinking of new ideas, building a good team and delivering results which are not just figure -bound but results that also focus on overall growth and development. Management focuses on the entire organization from both a short and a long-term perspective. Management is the managerial process of forming a strategic vision, setting objectives, crafting a strategy and then implementing and executing the strategy. Management goes beyond the organizations internal operations to include the industry and the general environment. The key emphasis is on issues related to environmental scanning and industry analysis, appraisal of current and future competitors, assessment of core competencies, strategic control and the effective allocation of organizational resources. Nevertheless, based on definition number 2, effectiveness is the attainment of goals that enables the realisation of the objectives of an organisation or, briefly, as doing the right thing whereas efficiency is performing a job using minimum effort, cost and wastage or simply put as doing things right. The end result of an efficient and effective management is the success of an organisation. A person can be described as efficient but not effective or effective but not efficient in managing a specific task. Both elements are not interdependent. Lets say a factory worker finds a shortcut to doing a task with lower cost but by doing so, he deviates from the ethical objectives of the organisation. For example, he disposes of production waste by dumping it into the river. But one of the organisations ethical objectives is to preserve local harmony. So, the factory worker, through his action, deviated from the objective although he was efficient. In short, he was efficient but not effective. In contrast, an employee is considered effective but not efficient if he uses an old method to resolve a management issue even if it could have been resolved efficiently without deviating from the objectives of the organisation. For example, in delivering information, the employee sends a letter via post instead of e-mail. Although it does not affect or clash with the organisations objectives, the employee has wasted a part of the resources allocated to him. Both efficiency and effectiveness cannot be excluded from the definition of management as these are essential elements in defining management. 1.1.4 What is organizations ? When two or more people get together and agree to coordinate their activities in order to achieve their common goals, an organization has been born. There is really no doubt about the present meaning of organization. Its purpose is to create an arrangement of positions and responsibilities through and by means of which an enterprise can carry out its work. An academic textbook definition of organization can be formulated as follows: a. the responsibilities by means of which the activities of the enterprise are dispersed among the (managerial, supervisory, and specialist) personnel employed in its service; and b. the formal interrelations established among the personnel by virtue of such responsibilities. It must be emphasized that an organization should not be seen as rigid as the term framework implies. In reality, almost all organization structures must be occasionally reviewed due to various changes in the external environment of the organization in question. Moreover, intern al changes also occur oftentimes due to the development of various informal relationships. However, in order to develop a so-called science of organizations a conceptual framework of theory and principle must first be developed. It is true to state that principles of management have existed for a long time. These principles were not recorded as scientific truths, but simply applied as practical means to accompany the process of modernization. As societies became more complex, an acceptable framework to encompass the unscientific principles of management was needed. Since the nineteenth century, many writers and researchers have contributed a great deal to existing principles and accepted practices. It is in the formulation of principles that the science of management can be developed. A management principle distils and organizes knowledge that has been built up through experience and analysis. It is highly unlikely that management will ever become an exact science with many la ws governing it because personal judgment will always be needed to supplement available knowledge. Unlike principles in the natural sciences, management principles are not fundamental truths, they are only conditional statements which largely depends on many other variables. However, it is still necessary to continue the process of understanding and applying accepted principles to improve the quality of day-to-day management practice. For this reason management will always be an art. 1.2 Who are managers and what they do? There are three key elements to get to know about the manager. Management Fuctions Management Roles Management Skills. 1.2.1 Management Functions Today in most management book, basic management functions The manager is involved in various basic activities. These activities are usually grouped in a concept categorised as management functions. These functions are illustrated as follows. Management functions Planning, Organising, Leading Controlling Referring to the table below, all four management functions elorated. Table 1.1: Management Functions Management Functions Descriptions Planning Defining objectives to be achieved for a given period and what needs to be done to achieve the objectives. All management levels in an organisation need to be involved in planning. Managers need to develop objectives in line with the overall strategies of the organisation. Organising Determining what tasks are to be done; who will implement and co-ordinate them; how the tasks are to be grouped; who reports to whom; and where decisions are to be made. The manager needs to logically and effectively organise the information, resources and workflow of the organisation so that he is able to react positively towards changes in the business environment. Leading This involves motivating subordinates; selecting the most effective communication channels; resolving conflicts; and directing as well as guiding the actions of others with the intention of achieving all objectives. The effective leader of today has to be visionary in foreseeing the future, sharing the vision and encouraging employees in realising the vision. Controlling The measuring of performance in all pre-determined objectives, determining reasons for deviation and taking appropriate actions, where necessary. Controlling is an important function in the management process as it provides ways to ensure that the organisation moves towards achieving its objectives. 1.2.2 MANAGEMENT ROLES Manager can identified by the role they play in the organisations. An expert in management, Prof Henry Mintzberg, did a research by observing what managers did during their work hours. His research conclude that managers not only have 4 elements as discussed in Management Functions, but they have to play another roles as detailed below (Lewis, P.S. et al; 2001). Role as a Figurehead A manager must carry out ceremonial duties. For example, the vice-chancellor of a university must be involved in the opening ceremony of programmes conducted at the university. The head of a department is responsible for entertaining his clients. Role as a Leader A manager indirectly functions as a leader. Each manager must function as a leader in motivating and encouraging his subordinates. The manager steers members of his unit to continuously work effectively to achieve the goals of the unit and organisation besides resolving problems and issues. Role as a Liaison Officer A manager conveys relevant information gathered to individuals outside his unit or to other relevant parties outside his organisation. The manager will allocate time for interacting with people outside his organisation. Thus, a manager acts as a channel for communications between his department and those within as well as those outside his organisation. For example, a human resource manager may liaise with the finance manager to check on funds allocated for the recruitment of new employees by the organisation before embarking on a recruitment drive. Role as a Spokesperson The manager of an organisation usually acts as its spokesperson. For example, a supervisor will usually ensure that the operations manager is furnished with the latest information on the running of his production plant. Similarly, the general manager of a factory will lobby local authorities for a new tender. Role as a Negotiator No organisation is without problems. A manager is compelled to find a solution for each of its problems regardless of complexities. The manager needs to spend a lot of time in discussions as he plays the role of a negotiator. For example, a manager will negotiate with the trade union chief to reach an amicable agreement on salaries. Role as an Initiator Two management experts, Sumantra Ghoshal and Christopher Bartlett (Dessler, G; 2001), highlighted the additional role of a manager as an initiator of corporate actions and transformations. Moreover, an excellent manager is one who cultivates three processes that steer his employees towards achieving initiatives for change. These processes are as follows: Entrepreneurship Process The manager will try to improve his units performance and when he gets a good idea, he will launch a programme to realise the idea. Researches carried out in Japan, the United States and Europe showed that a successful manager is one who focuses a lot of time and effort on steering his employees towards thinking like an entrepreneur. To meet this objective, the manager needs to empower, support and provide incentives for employees to attain self-direction. Capability Development Process In a technology-centred world, conglomerates need to fully utilise their advantage as a large establishment not only in matters of economies of scale but also in the aspects of widening and deepening the knowledge and abilities of its employees. A manager who succeeds will focus on creating a conducive environment that encourages employees to shoulder additional responsibilities. He will also focus on preparing the necessary training and guidance to build their self-confidence. The successful manager will allow employees room for making mistakes without the fear of being penalised while undergoing training and encourage them to learn from their mistakes. Reformation Process A successful manager will identify situations that might pose challenges to the strategies of the organisation and assumptions made. In other words, the manager is capable of cultivating a querying disposition such as why something is done in a certain way and whether there are alternative ways of doing it. 1.2.3 MANAGEMENT SKILLS SELF-CHECK 1.2 When an organisation shortlists employees for the position of a manager, it will usually select individuals with technical, interpersonal and conceptual skills. Therefore, the third approach to understanding the tasks of managers is to analyse the skills required to carry out the tasks. Figure 1.2 shows three types of essential skills required at each level of management. The arrow pointing upwards shows the type of skills that are needed by top-level management. The arrow pointing downwards shows the type of skills that are needed by lower-level management or line managers. Figure 1.2: Skills required of a manager (a) Conceptual Skills Conceptual skills refer to the ability to view the organisation as a whole, and the impact the different sections have on the organisation, as a whole and on each other. It also involves observing how an organisation adapts to or is affected by external environmental factors such as society, economic pressure, customers and competition. An efficient manager should be able to identify, understand and solve the various problems and critical perspectives. The need for conceptual skills becomes increasingly crucial when a manager climbs higher in the management hierarchy. (b) Interpersonal Skills Interpersonal skill is the ability to work well with other people. Managers with good interpersonal skills work more effectively in a group, encouraging other employees to input their ideas and comments as well as being receptive to the needs and views of others. The manager will also, indirectly, become a good listener and speaker. Interpersonal skills are crucial, regardless of the level of management. However, a low-level manager will be more occupied in solving technical problems while a manager at the middle and higher levels will be mainly occupied with dealing directly with others. (c) Technical Skills Technical skills are the ability to apply procedures, techniques and specialised knowledge required in a ce rtain task. For a shoe factory supervisor, the technical skills required will include the steps involved in shoe manufacturing from the beginning until the final product is ready. A housing developers technical skills will include ways to complete the development of a housing estate. Technical skills are crucial for low-level managers as they supervise employees in manufacturing or service sectors. The manager needs to have technical knowledge and the skills to train new employees and assist employees in solving problems. Skills and technical knowledge are required to solve operational problems that cannot be handled by employees. Nevertheless, the higher the position of a manager in a hierarchy, the fewer the technical skills required. SELF-CHECK 1.3 Self check Based on what you have learned, identify the differences between the three levels and tabulate your answers. Exercise Explain each of the management functions that you have learned about. 1.3 HISTORY OF MANAGEMENT Scientific Management Theory (1890-1940) At the turn of the century, the most notable organizations were large and industrialized. Often they included ongoing, routine tasks that manufactured a variety of products. The United States highly prized scientific and technical matters, including careful measurement and specification of activities and results. Management tended to be the same. Frederick Taylor developed the :scientific management theory which espoused this careful specification and measurement of all organizational tasks. Tasks were standardized as much as possible. Workers were rewarded and punished. This approach appeared to work well for organizations with assembly lines and other mechanistic, routinized activities. Bureaucratic Management Theory (1930-1950) Max Weber embellished the scientific management theory with his bureaucratic theory. Weber focused on dividing organizations into hierarchies, establishing strong lines of authority and control. He suggested organizations develop comprehensive and detailed standard operating procedures for all routinized tasks. Human Relations Movement (1930-today) Eventually, unions and government regulations reacted to the rather dehumanizing effects of these theories. More attention was given to individuals and their unique capabilities in the organization. A major belief included that the organization would prosper if its workers prospered as well. Human Resource departments were added to organizations. The behavioral sciences played a strong role in helping to understand the needs of workers and how the needs of the organization and its workers could be better aligned. Various new theories were spawned, many based on the behavioral sciences (some had name like theory X, Y and Z). General Administrative Theories Administrative theory, Classical administrative theory An early form of organization theory, pioneered mainly by Henri Fayol (1841-1925), which was concerned principally with achieving the most rational organization for co-ordinating the various tasks specified within a complex division of labour (see his Administration industrielle et gà ©nà ©rale, 1916) . The translation of this book into English as General and Industrial Management (1949) implies that Fayol was concerned mainly with business management, although he himself makes it clear that his ideas about management were intended to apply to all formal organizations, including political and religious undertakings. Expressing the French administration as management has also led to the alternative designation of this approach as the classical school of scientific management. More recent exponents include Lyndall Urwick and Peter F. Drucker. Fayol, who is acknowledged to be the earliest advocate of a theoretical analysis of managerial activities, identified the key functions of management as being those of forecasting and planning. The most rational and efficient organizations were, in his view, those which implemented a plan that facilitated unity, continuity, flexibility, precision, command and control. Universal princip les of administration were then distilled from these objectives. These include the key elements of the scalar chain (authority and responsibility flowing in an unbroken line from the chief executive to the shop floor); unity of command (each person has only one supervisor with whom he or she communicates); a pyramid of prescribed control (first-line supervisors have a limited number of functions and subordinates, with second-line supervisors controlling a prescribed number of first-line supervisors, and so on up to the chief executive); unity of direction (people engaged in similar activities must pursue a common objective in line with the overall plan); specialization of tasks (allowing individuals to build up a specific expertise and so be more productive); and, finally, subordination of individual interests to the general interest of the organization. This list is not exhaustive, but illustrates the key proposition of administrative theory, which is that a functionally specific a nd hierarchical structure offers the most efficient means of securing organizational objectives (see M. B. Brodie , Fayol on Administration, 1967) . Classical administrative theory, like its near-contemporary the scientific management approach, rests on the premisses that organizations are unproblematically rational and (effectively) closed systems. In other words, organizations are assumed to have unambiguous and unitary objectives, which the individuals within them pursue routinely, by obeying the rules and fulfilling their role expectations, according to the prescribed blueprint and structure. Moreover, in the attempt to maximize efficiency, it is only variables within that structure that need to be considered and manipulated. The interaction of the organization with its environment, together with the various factors which are external to the organization but nevertheless have consequences for its internal functioning, are systematically ignored. Clearly, both perspectives take a rather deterministic view of social action, since each assumes that individuals will maximize organizational efficiency, independently of their own welfare, and with no thought for the relationship between the collective goal and their own particular purposes. The Human Relations Movement in organizational analysis, an otherwise diverse group of writers and approaches, is united by its opposition to precisely this assumption. Despite such criticisms, the classical theory of administration has exerted considerable influence on the fields of business studies and public administration, and it still provides the basic concepts which many managers use in clarifying their objectives. Question why they need evolution in the first place? What change the theory, From the start of the 19th century until the 20th century, managers and scholars formed a theoretical framework to explain what they believe to be good practices of management. Their efforts led to five different classes of perspectives on management classical, behavioural, quantitative, systems and contemporary. Each perspective is based on different assumptions toward s the objectives of the organisation and human behaviour. Figure 1.3 will help you to understand the chronological sequence of the perspectives. Figure 1.3: Evolution of management theory You might be wondering why it is important and necessary to study the historical development or the evolution of management thought. Studying history enables us to learn from mistakes made in the past so as to avoid making them in the future. History also enables us to study past successes that can be emulated accordingly in the future. Most importantly, we must understand the reasons behind such occurrences in order to improve in the future. 1.4.1 Classical Perspective This perspective existed in the 19th century and early 20th century. It focused on the rational and scientific approaches to the study of management and on finding ways to mould an organisation to become more efficient. There are three sub-classes in this perspective, the scientific management, bureaucracy management and administrative management. (a) Scientific Management This approach existed at a time when productivity was deemed critical by businessmen. Businesses were growing rapidly but businessmen were facing a critical shortage of workers. Hence, management was continuously finding ways to improve the performance of its employees. The focus on improving employees efficiency is known as the scientific management approach. A number of researchers contributed towards the findings of scientific management, among them Frederick Winslow Taylor, Frank and Lilian Gilbreth and Henry Gantt. Frederick Taylor (1856-1915), a mechanical engineer, was of the opinion that problems arose mainly due to bad management practices and, to a lesser degree, problems with employees. He stressed that management itself needed to transform and that the transformation method could only be established through scientific research. He suggested that decisions based on rules of thumb be substituted with established procedures, after analysing each situation. Taylors theory, which stated that the productivity of the labour force could be improved through scientifically-based management practices, earned him the title Father of Scientific Management. To improve the work performance of employees, Taylor conducted a research entitled Time and Motions Study. From the research findings, Taylor identified five principles of management that could boost production efficiency. The five principles were: (i) Using the scientific approach to determine best practices and not relying on rules of thumb; (ii) Selecting suitable employees to perform a particular task. Suitability cov ers mental and physical aspects; (iii) Training and developing an employee so that he is able to perform a given task according to established procedures; (iv) Giving monetary incentives to ensure that employees perform a task accordingly; and (v) Reassigning all responsibilities pertaining to planning and organising to the manager. Taylor was not alone in this research. Henry Gantt (1861-1919), a friend of Taylor, focused on the control system in the scheduling of production. The Gantt Chart is still used today in planning the schedule of a project and has also been adapted in computerised-scheduling applications. The husband and wife team of Frank (1868-1924) and Lillian Gilbreth (1878-1972), also strived to further expand the scientific management approach. Lillian was a pioneer in the field of industrial psychology and contributed greatly to human resource management. She believed that if scientific management was widely utilised, the abilities of each employee wo uld grow considerably. (b) Bureaucratic Management Bureaucratic management is an approach to management that is based on guidelines, hierarchy, clear division of labour as well as rules and procedures. Max Weber (1864-1920), a German social theorist, introduced many bureaucratic concepts. Among the components of bureaucracy are: (i) Authority and clearly defined responsibilities; (ii) Positions in an organisation that are structured according to hierarchy; (iii) Promotions based on qualifications; (iv) Records of all administrative actions and decisions to ensure continuity of organisational rules; (v) Separation of ownership and management; and (vi) Guidelines implemented to all employees without bias. The bureaucratic approach strives to increase efficiency and ensure continuity of overall operations of the organisation. This approach differs from scientific management, which only focuses on the employee as an individual. Nevertheless, this principle, us ed to improve efficiency, also may cause inefficiency. Rigid guidelines create red tape and slow down the decision-making process, resulting in the inability to change swiftly to adapt to the needs of the environment and, at times, create conflicts in performing a task professionally. (c) Administrative Management The administrative management principle focuses on the organisation as a whole. Among the contributors to this approach are Henri Fayol, Mary Parker Follett and Chester I. Barnard. Henri Fayol (1841-1925), a Frenchman, is considered the pioneer of administrative theory as he introduced the organisational principles and administrative functions. His most relevant contribution was presenting the definition and roles of an administrator. Fayol defined administration and management as planning, organising, directing, coordinating and controlling. He identified 14 principles of management: Division of labour: This is a concept on specialisation of work, based on the assumptions that: No one can do all the work; Each job requires different skills; and Repetition of work will increase efficiency. Authority: The right to give directions and power to be complied with. Here, authority at the office has to be differentiated from personal authority. Discipline: Based on respect and conformity. Unity of command: An employee should receive instructions from one superior only. Unity of direction: One superior and one direction for a particular activity with the same objective. Subordination of individual interests to the general interests: Personal interest should not exceed or precede over common interest. Remuneration: Salary payment based on various factors. Centralisation: The centralisation of work depends on the situation and formal communications channel. Scalar chain: This is about the line of authority and its formal communication channel. Order: Resources are allocated in the right place at the right time . Equity: Formed out of justice and virtue. Stability of tenure: This is a necessity in good human resource planning. Initiative: This is the hope that employees will work diligently and sincerely. (xiv) Esprit de corps: A term, borrowed from the French language, that means loyalty and devotion in uniting the members of a group. It emphasises on harmony and unity in an organisation. Mary Parker Follet (1868-1933) was trained in the field of philosophy and political science. Her approach focused on the involvement of employees and sharing of information among managers. She stressed the importance of common goals among subordinates to reduce personal conflicts. Follets ideas were contrary to the ideas in scientific management but conformed with modern management. Her approach focused on the individual and not engineering techniques. Follet stressed on issues relevant to the 1990s such as mankind, ethics, authority and leadership to inspire employees to excel in their jo bs. Her main concepts included delegation of authority, leading employees and not commanding them as well as allowing employees to act according to situations. Chester I. Barnard (1886-1961) introduced the informal organisation concept. An informal organisation exists in a formal organisation. He believed that organisations were not mere machineries and that informal relations could be a powerful tool and an asset to an organisation if properly managed. He also introduced the Acceptance Theory of Authority which stated that employees have options in complying with the directives of the management. Managers should treat their employees well as the acceptance of authority by employees is critical in ensuring the success of an organisation. Overall, the classic perspective towards management is very important and has given organisations a basic skill to increase productivity and garner effective support from employees. 1.4.2 Human Perspective Mary Parker Follet and Chester Barnard were the main founders of the human approach in management which emphasises the importance of understanding human behaviour, employees needs, the attitude of employees in a working environment besides social interaction and group processes. The categories of the human approach are the movement of human relations, the human resource view and the approach to behavioural science. Human Relations Movement This approach is based on the premise that effective control comes from individual employees rather than strict control by authorities. This approach originated from research that was conducted at the Western Electric Companys Hawthorne Works in Chicago between the years 1927 and 1932. The research was overseen by Elton Mayo and Fritz Roethlisberger, two psychologists from Harvard University. The research originally intended to study the relationship between physical conditions and production. Light irradiation temperature and other factors related to the working environment were selected as physical conditions. The original conclusion obtained by the researchers contradicted the results they anticipated. Three series of experiments were conducted and the results of all the experiments contradicted what was expected. The first experiment had conducted the experiment of lighting radiation as a physical situation. It assumed that levels of brightness would facilitate higher output for the employees. From this, it was found that when the lighting radiation is brightened or dimmed, the production output will continue to increase. This meant that there were other factors that may have caused the increase in productivity. It was the same for the second and third experiments where other physical situations were chosen; the results could not clearly explain the causes for increase in production. In conclusion, the Hawthorne research shows that the productivity of employees increases because they had received special treatment from management. The human relationship was connected to the increase in output. Group pressure will also affect a persons behaviour. Group quality is very effective in determining the output of an employee and monetary compensation is less effective if compared to group quality, sentiments and guarantee. As an overall conclusion, the Hawthorne research started a new era the awareness that humans are complex and an influential input to det ermining the performance of an organisation. Human Resource Approach The human resource approach stresses that employees productivity will increase when the employees satisfaction of basic requirements are met. This movement is likened to a dairy farm where satisfied cows will produce more milk. From the management point of view, the pattern of satisfied employees will increase their work performance. This approach combines the work structure with the motivation theories. Among the main motivators of this approach are Abraham Maslow and Douglas McGregor. (please refer to Topic 7 on motivation) Social Science Approach The social science approach developed the theories of human behaviour based on the scientific and learning methods. It is derived from the fields of sociology, psychology, anthropology, economic and other disciplines to understand the behaviour of employees and interactions in an organisation. This approach can be seen in most companies. The economic and sociology sector has significantly influenced how managers probe further into an organisations strategy and structure. Psychology has influenced the management approach through motivation, communication, leadership and personnel management. 1.4.3 Quantitative Management Approach This approach began in the era of World War Two, where quantitative techniques were used in the war in the handling of ships and bombs by the British army. The three main concepts of this approach are the management of science, management of operations and management of information systems. (a) Management of Science This approach was put forward to resolve the problems that arose due to World War Two. A group of mathematicians, physicists and scientists had been formed to resolve military issues. As these were recurring issues that involved the transfer of equipment and humans quickly and efficiently. Later, these techniques were applied by large-scale firms. (b) Management of Operations This approach refers to the management sectors that focus on the production of physical products or services. The members of operations management use quantitative techniques to resolve manufacturing issues. Among the methods usually use are forecasting, inventory modelling, linear and non-linear programming, and theories of rotation, scheduling, simulation and break-even analysis. (c) Management of Information Systems This approach is a new sub-sector in the quantitative management approach. Systems were designed to provide relevant information to managers at the appropriate time and cost. With the creation of high-speed digital computers, it opened up potential for management to utilise this as a tool. These computer systems compile information to assist in managements decision making. 1.4.4 Contemporary Approach Management is naturally complex and dynamic. The elements of each approach that has been discussed is still being used till now. The humanity approach is the most evident approach, yet lately, there have been some changes to this approach. The two main theories under this perspective are the systems and contingency theories. (a) Systems Theory A system comprises of closely related sections that function in general to achieve the same objective. A system functions to transform input found from the external environment to output. The five components of a system are: Input equipment, people, finance or information source that are used to produce products or services. Transformation process the use of production technology to transform input to output. Output comprises of products and services of an organisation. Feedback decisions that will influence the selection of input used in the next process cycle. Environment includes social, political and economic influences. Ideas of systems that influence the mind sets of management comprise of: Open system a system that interacts with the external environment to survive. Closed system a system that does not interact with the external environment to survive will face failures. Entropy the tendency for a system to become obsolete. Synergy individuals, groups and organisations that can achieve more if they cooperate compared to working alone. Sub-system sections of a system that are interdependent. (b) Contingency Approach The classical management approach is perceived as a universal observation. The management concept is perceived as universal when the management practice is the same in all situations. In business studies, an alternative observation arose. A person learns management by experiencing the problems of case studies. The Contingency perspective combines the universal and case observations. SUMMARY Management is an art to direct other people in performing work by emphasising the aspects of effectiveness and efficiency in its implementation. Effectiveness is achieving the objectives that enable the realisation of the organisations objective or doing the job the right way. Efficiency is implementing the work by using minimum ability, cost and wastage or doing things right. In brief, managers are known for their management functions that are implemented. The functions can be divided into planning, organising, leading and controlling. The manager plays several roles in an organisation. The roles include figure-head, leader, liaison officer, spokesperson, negotiator, ideas initiator, developing capability and motivator for transformation. Management skills are crucial to ensure the success of a manager. It consists of conceptual, interpersonal and technical skills. The types of managers can be divided into three main sections: top management, middle management and lower/line management. The evolution of management expanded in tandem with the beginning of human civilisation in Egypt, China and Babylon. The methods of management at that time were quite different from today. Modern management significantly expanded with the emergence of the Industrial Revolution in Europe. Generally, there are two well-known systems in discussions pertaining to trend or management of mind sets, which are the rational system and the social system. Amongst the renown figures of the rational system are Henri Fayol, Max Weber and Frederick Taylor, whereas in the social system are Elton Mayo, William Ouchi and Henry Mintzberg. KEY TERMS Concept skills Controlling Effectiveness Efficiency Interpersonal skills Leading Organising Planning Scientific management Technical skills Theory X Theory Y

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Money and Banking Study Guide Chapter 1-5 Free Essays

string(88) " a financial market in which securities that have been previously issued can be resold\." Chapter 1- Why study Money, Banking and Financial Markets? Why are Financial Markets Important? Financial markets are crucial to promoting greater economic efficiency by channeling funds from people who do not have a productive use for them to those who do. Well functioning financial markets are a key factor in producing high economic growth, and poorly performing financial markets, vice versa. Financial markets and intermediaries have the basic function of getting people together by moving funds from those who have a surplus of funds to those who have a shortage of funds. We will write a custom essay sample on Money and Banking Study Guide Chapter 1-5 or any similar topic only for you Order Now The Importance of Interest Rates On a personal level, high interest rates can deter you from buying a house or a car because the cost of financing would be too high. Conversely, they could encourage you to save because you earn more interest by putting your money aside in savings. ON a more general level, interest rates affect the overall health of the economy because they affect not only consumers’ willingness to spend but also businesses’ investment decisions. High interest rates for example might cause a corporation to postpone building a new plant that would provide more jobs. The Importance of Stocks On a personal level the fluctuations in stock prices affect the size of people’s wealth and as a result may affect their willingness to spend. On a general level, it affects business investment decisions since the price of shares affects the amount of funds that can be raised by selling newly issued stock to finance investment spending. A higher price for a firm’s shares means that it can raise a larger amount of funds, which it can use to buy production facilities and equipment. A higher price means it can raise a larger amount of funds, which it can use to buy production facilities and equipment. Role of Financial Intermediaries Financial intermediaries are institutions that borrow funds from people who have saved and in turn make loans to others. Banks are included in this category. They accept deposits and make loans. These include commercial banks, savings and loan associations, mutual savings banks and credit unions. Investment banks are, insurance companies, mutual funds etc. are a different category. Money growth and Inflation Inflation may be tied to continuing increases in the growth rate of the money supply. Countries with the highest inflation are those with the highest money growth rates. Questions: – Quantitative easing is done by the Federal Reserve buying more bonds. This is how they decrease the interest rate. 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It is more feasible for them to do this because of their economies of scale and ability to shy off transaction costs. Also it provides liquidity services, and risk sharing. This process of risk sharing is also sometimes referred to as asset transformation, because in a sense, risky assets are turned into safer assets for investors. Firm and Individual Ways to Obtain Funds First way is to issue a debt instrument such as a bond or a mortgage. Second is by raising funds through issuing equities, such as common stock. Primary vs. Secondary Market Primary is where new issues of a security such as a bond or sock are sold to initial buyers by the corporation or government agency borrowing the funds. A secondary market is a financial market in which securities that have been previously issued can be resold. You read "Money and Banking Study Guide Chapter 1-5" in category "Papers" An investment bank assists in the initial sale of securities in the primary market by underwriting the securities: it guarantees a price for a corporation’s securities and then sells them to the public. A corporation acquires new funds only when its securities are first sold in the primary market. Importance of Secondary markets Although they don’t directly increase corporations stock they nonetheless serve two important functions. (1) they make it easier and quicker to sell these financial instruments to raise cash; that is they make the it more liquid. This increased liquidity then makes them more desirable and thus easier for issuing firm to sell in the primary market. (2), the secondary market determines the price of the security that the issuing firm sells in the primary market. The investors buying in the primary will pay the corporation no more than the price they think the secondary market will set for the security. Brokers vs. Dealers Brokers are agents of investors who match buyers with sellers of securities; dealers link buyers and sellers by buying and selling securities at stated prices. A dealer is a person who will buy and sell securities on their account. On the other hand, a broker is one who will buy and sell securities for their clients. When dealing with securities, dealers make all decisions in respect of purchases. On the other hand, a broker will only make purchases as per the client’s wishes. While dealers have all the rights and reedom regarding the buying and selling of securities, brokers seldom have this freedom and these rights. Money Market vs. Markets The money market is a financial market in which only short-term debt instruments are traded. The capital market is the market in which longer-term debt instruments and equity instruments are traded. Money markets are usually more widely traded so tend to be more liquid. Short-term securities are also less volatile in p rices than long-term securities, making them more safer investments. Certificate of Deposit (CD) Is a debt instrument sold generally by commercial banks that pay annual interest of a given amount and at maturity pays back the original purchase price. They are sold in the secondary market. Repurchase Agreements (Repos) These are effectively short-term loans usually with a maturity of less than two weeks, for which treasury bills serve as collateral, an asset that the lender receives if the borrower does not pay back the loan. A large corporation for example may have some idle funds in its bank account say $1 million that it would like to lend for a week. Microsoft uses this excess $1mil to buy Treasury bills from a bank, which agrees to repurchase them the next week at a price slightly above Microsoft’s purchase price. The effect is that Microsoft makes a loan of $1 million ot the bank and holds $1 million of the bank’s treasury bills until the bank repurchase the bills to pay off the loan. Federal Funds and Federal Funds rate These are confusing because the federal funds designation is not to be confused with loans made by the federal government. It is rather by banks to other banks. One reason they might borrow from other banks is to meet the amount required by regulators. The federal funds rate is a closely watched barometer of the tightness of credit market conditions in the banking system. Its the interest rate at which depository institutions actively trade balances held at the Federal Reserve, called federal funds, with each other, usually overnight. When high that means banks are strapped for funds, when low, banks credit needs are low. Thus with a high federal funds rate banks require more money reserve in their vaults and thus can’t issue out loans as regularly. Asymmetric Information: Adverse Selection and Moral Hazard When one party often does not know enough about the other party to make accurate decisions. For example a borrower who takes out a loan usually has better information about the potential returns and risk associated with the investment projects for which the funds are earmarked than the lender does. Lack of information creates problems on two fronts: before the transaction is entered into and after. Adverse Selection The problem created by asymmetric information before the transaction occurs. It occurs when the potential borrowers who are the most likely to produce an undesirable (adverse) outcome –the bad credit risks- are the ones who most actively seek out al oan are are thus most likely to be selected. Moral Hazard The problem created by asymmetric information after the transaction occurs. It is the risk and hazard that the borrower might engage in activities that are undesirable from the lender’s point of view; because they make it less likely that the loan will be paid back. When you make a loan, it is usually by trust that they do what they say they’ll do with the money. Depository Institutions Commercial banks, Savings and loan Associations, Mutual Savings Banks, Credit Unions. These are financial intermediaries, referred to as simply banks in the text, that accept deposits from individuals and institutions and make loans. Thrift Institutions are all of these minus commercial banks. Commercial Banks Raise funds primarily by issuing checkable deposits, savings deposits, they then use these funds to make commercial, consumer, and mortgage loans and to buy US government securities and municipal bonds. They are the largest financial intermediary and have the most diversified portfolios of assets. Savings and Loan Associations and Mutual Savings Banks Obtain funds primarily through savings deposits often called shares and time checkable deposits. Over time they have been less constrained and are turning into commercial banks. Credit Unions Usually very small cooperative lending institutions organized around a particular group: union members, employees of a particular firm, and so forth. They acquire funds form deposits called shares and primarily make consumer loans. Contractual Savings Institutions Financial intermediaries that acquire funds at periodic intervals on a contractual basis, since they can predict with reasonable accuracy how much they will have to pay out in benefits in the coming years. Liquidity is not as important. Involve life insurance companies, fire and casualty insurance companies, and pension and government retirement funds. Finance Companies Raise funds by selling commercial paper and by issuing stocks and bonds. They lend funds to consumers who make purchases of items and to small businesses. Some are organized by parent corporations to help sell its product. Mutual Funds Acquire funds by selling shares to many individuals and use the proceeds to purchase diversified portfolios of stocks and bonds. Mutual funds allow shareholders to pool their resources so that they can take advantage of lower transaction costs when buying large blocks of stocks or bonds. Money Market Mutual Funds Similar to a mutual fund but they also function to an extent as a depository institution. They sell shares to acquire funds that are then used to buy money market instruments that are both safe and liquid. A key feature is that shareholders can write checks against the value of their shareholdings. Investment Banks It is not a bank or a financial intermediary in the ordinary sense; that is, it does not take in deposits and then lend them out. Instead, an Investment Bank is a different type of intermediary that helps a corporation issue securities. First it advises the corporation on which type of securities to issue (stocks or bonds) then it helps sell (underwrite) the securities by purchasing them from the corporation at a predetermined price and reselling them in the market. They also act as deal makers and earn enormous fees by helping corporations acquire other companies through mergers and acquisitions. Regulations involved Restrictions on entry, only those who have impeccable credentials and a large amount of initial funds are given a charter as a financial intermediary. Stringent reporting requirements for financial intermediaries. Restrictions on certain assets and activities. Deposit Insurance, Limits on Competition. Also, there is a restriction on interest rates that can be paid on deposits. These regulations were instituted because of the widespread believe that unrestricted interest-rate compensation helped encourage bank failures during the Great Depression. In terms of regulation abroad, the major differences between financial regulation in the US vs. Abroad relate to bank regulation as in the past the US was the only industrialized country to subject banks to restrictions on branching which limited banks size. Questions: When a company issues a secondary IPO, is it in the primary market or secondary market? Chapter 3 – What is Money? What are the requirements for Money? (1) Must be easily standardized making it simple to ascertain its value (2) It must be widely accepted (3) It must be divisible so that it easy to make change (4) It must be easy to carry and (5) It must not deteriorate quickly. Examples have included strings of beds used by Indians, to tobacco, and whiskey, to cigarettes. Functions of Money Money is used as (1) a medium of exchange to pay for goods and services (2) a unit of account used to measure value in the economy (3) a store of value used to save purchasing power from the time income is received until the time it is spent. Commodity Money Money made up of precious metals or another valuable commodity is called commodity money. Problem is that it is hard to transport. Fiat Money Paper Currency. It has the advantage of being much lighter than coins or precious metal, but it can be accepted as a medium of exchange only if there is trusting in the authorities that issue it and if printing has reached a sufficiently advanced stage that counterfeiting is extremely difficult. Major drawbacks are that they are easily stolen and can be expensive to transport in large amounts because of their bulk. To combat this there has been the invention of checks. Monetary Aggregates M1 = Currency + Traveler’s Checks + Demand deposits + Other checkable deposits. M2 = M1 + small denomination time deposits + savings deposits and money market deposit accounts + money market mutual fund shares. M1 is the most liquid while M2 is money including assets that have check-writing features and other assets that can be turned into cash quickly at little cost, but are not as liquid. Chapter 4 – Understanding Interest Rates Simple Loan PV = CF/(1+i)^n, there’s not payments in between, it’s just the lender provides the borrower with an mount of funds (principal) which is then repaid back to lender at the end of the maturity (can be any amount of years) as well as an interst. Fixed Payment Loan Lender provides borrower with an amount of funds which must be repaid by making the same payment every period consisting of part principal and part interest. Coupon Bond Your normal type of bond, pays interest by coupon payment, price changes, principal at end. Corporate bonds, treasury bonds, all are coupon bonds. Discount Bond Zero-Coupon Bond, this is a type of coupon bond where it is bought at a price below its face value and the face value is repaid at the end of the maturity date. However it does not make any interest payments. It’s coupon rate = 0. YTM = F-P / P Perpetuity Type of coupon bond that is a perpetual bond and has no maturity date where it repays a principal amount. P = C/i Current Yield With long-term bonds or perpetuities, I = C/P and this just equals the current yield. Distinction Between Interest Rates and Returns A lender is not better off if the interest rate rises. How well a person does by holding a bond or any other security depends on their assets return. Here for a bond, the return is defined as the payments to the owner plus the change in its value, expressed as a fraction of its price. R = C+P2-P1 / P1. R = i + g.. = Coupon rate + rate of capital gain. Greater fluctuations with Long Term Bonds When interest rates rise, long-term bonds bear the worse effect since their present values are taken into far far into the future, therefore their prices are more drastically changing. The more distant a bond’s maturity the greater the size of the percentage price change associated with an interest rate change. It’s all because of the change in capital growth. Interest Rate Risk Prices and returns for long-term bonds are more volatile than those for shorter-term bonds. The riskiness of an assets return that results form interest rate changes is called interest-rate risk. Bonds with a maturity that is as short as the holding period have no interest rate risk. This is true only for discount bonds and zero-coupon bonds. The key is to recognize that the price at the end of the holding period is already fixed at face value, the change in interest rates then have no effect on the price at the end of the holding period for thos bonds, and the return will therefore be equal to the yield to maturity. Fisher Equation Nominal interest rate always equals the real interest rate + the expected rate of inflation. Chapter 5 – The Behavior of Interest Rates Determinants of Asset Demand 1) Wealth – Increasing wealth creates more resources available with which to purchase assets and therefore quantity of assets we demand increases. (2) Expected Returns – An increase in an asset’s expected return relative to alternative assets raises the quantity of assets we demand. (3) Risk – The degree of risk or uncertainty of an asset’s ret urns also affects the demand for the asset. Increasing risk decreasing the quantity of assets demanded. (4) Liquidity – The more liquid an asset is relative to alternative assets, the more desirable it is and greater the quantity demanded. What determines interest rates? There’s two theories: the Bond Market Framework and the Money Market framework called the Liquidity Preference. The best Theory is the combination of the two. Demand Curve in the Bond Market As the interest rate rises, or prices of the bonds decrease, people or willing to lend out more money therefore increase their quantity of buying bonds. This explains the negative slope of the bond demand curve. Supply Curve in the Bond Market As the interest rates rise, or prices of the bonds decrease, people are less willing to borrow by selling bonds considering that their interest payments are higher. Therefore as interest rates increases, quantity of bonds decrease thereby explaining the positive slope of the supply curve. Shifts in the Demand for Bonds The theory of asset demand demonstrated before provides factors which cause the demand curve for bonds to shift. Therefore these four parameters are included: (1) Wealth – Increase in wealth increases demand for bonds. This is because with higher wealth, there is a growing business expansion, and therefore people are willing to lend out money more. Also, propensity to save, if households save more, wealth increases and demand for bonds rises. 2) Expected Returns – Increase in expected returns on bonds relative to alternative assets increases demand for bonds. (through expected interest rates and expected inflation) a. Interest Rates E – Higher expected interest rates in the future, say 10% to 20%, would lead toa sharp decline in price and a very large negative turn. Therefore if people expect higher interest r ates next year, the demand for bonds will decrease. b. Inflation Rate E – An increase in the expected rate of inflation lowers the expected return for bonds. This is because a change in expected inflation is likely to increase the return on physical assets relative to bonds, therefore leading to a fall in relative return on bonds therefore decreasing asset demand. (3) Risk – Increasing risk of bonds relative to alternative assets decreases demand for bonds. (4) Liquidity – Increasing liquidity of bonds relative to alternative assets increases demand for bonds. Shifts in the Supply Curve (1) Profitability of Investment Greater economic expansions yield increases in supply of bonds. The more profitable plant and equipment investments that a firm expects it can make, the more willing will borrow. When the economy is growing rapidly, investment opportunities that are expected to be profitable abound, and the quantity of bonds supplied at any given bond price will increase. (2) Expected Inflation – When inflation is expected to rise, the real cost of borrowing is more accurately measured by the real interest rate which is the nominal rate minus the expected inflation rate, thus real cost of borrowing falls hence quantity of bonds supplied increases. 3) Government Budget – Higher government deficits increase the supply of bonds and shift the supply curve to the right. Government surpluses however do the opposite. Fisher Equation WHEN EXPECTED INFLATION RISES – INTEREST RATES WILL RISE Changes in the Interest Rate due to a Business Expansion In an expansion, the amount of goods and services produced in the economy increase so the national income increases and therefore wealth increases. Therefore demand for bonds increases. At the same, opportunities that are profitable also increase and supply for bonds increase as people want to borrow more. Therefore what happens? Theoretically, nothing, quantity of bonds increases but price/interest rate can go either way. According to data though, usually the supply effect demand effect as more people invest in new opportunities. Therefore interest rates generally rise during an economic expansion. Business Cycles and Interest Rates Data shows that interest rates rise during business cycle expansions and fall during contractions. Focusing into the Money market now. Liquidity Preference Framework says that the analysis of the money market is the same as the analysis of the bond market. Bs – Bd = Md – Ms. The reason that we approach both in the determination of interest rates with both frameworks is that the bond supply and demand framework is easier to use when analyzing the effects from changes in expected inflation, whereas the liquidity preference framework provides a simpler analysis of the effects from changes in income, the price level, and the supply of money. Demand Curve for Money REMEMBER THAT FOR THE MONEY MARKET THE Y AXIS IS INTERST RATE ICNREASING. As interest rates rise, the opportunity cost of holding money increases therefore quantity demanded for money decreases. The Federal reserve controls the amount of money supplied therefore they are able to cause it into equilbirum. Liquidity Preference Framework: Shifts in Demand for Money (1) Income – A higher level of income causes the demand for money at each interest rate to increase and the demand curve to shift right. People want to hold more money. Thus interest rates will rise. (2) Price-Level Effect – When price level rises the same nominal quantity of money is no longer as valuable; it cannot be used to purchase as many real goods or services. To restore their holdings of money in real terms to its former level people want to hold more money. Therefore increasing the price level increases the demand for money. Thus interest rates will rise. Liquidity Preference Framework: Shifts in Supply of Money (1) Only changes by the federal reserve. Now Combining Liquidity Preference and Bond Framewor When we Increase the MS (1) Income Effect – Because an increasing money supply is an expansionary influence on the economy, it should raise national income and wealth. Both the LP and BSD framwork indicate that interest rates will then rise. Thus the income effect of an increase in the money supply is a rise in interest rates. (2) Price – Level Effect – An increase in the money supply causes verall price level in the economy to rise. The liquidity preference framework indicates that this will lead to a rise in interest rates. (3) Expected Inflation Effect – The higher inflation rate that results from an increase in the MS also affects interest rates by affecting the expected inflation rate. The Bond Supply fr amework believes this leads to higher levels of interest rates. But does a higher rate of Growth of the Money Supply Lower Interest Rates? Of all the effects, only the liquidity effect indicates that a higher rate of money growth will cause a decline in interest rates. In contrast, the income, price level and expected inflation effects indicate that interest rates will rise when money growth is higher. Generally the liquidity effect from the greater money growth takes effect immediately because the rising money supply leads to an immediate decline in the equilbrium interest rate. The income and price level effects take tim to work because it takes time for the increase money supply to raise the price level and income which in turn raise interest rates. The expected inflation rate can be slow or fast depnding on wether or not people adjust expcations quik enough. How to cite Money and Banking Study Guide Chapter 1-5, Papers

Normative Development free essay sample

It indicates a typical range of what can be expected at a given time. These are generally referred to as developmental milestones to indicate steps in certain abilities that should be reflected at different ages, as determined by supporting research. In this way, normative development is important because it allows us to understand what to expect at different ages (Sigelman and Rider, 2006). The works of different theoretical viewpoints will be examined, each with differing perspectives on the nature of human development. The degree of variability between these theories brings into question the viability of normative development. The changes and continuities of human development are examined across three broad areas. These are the physical growth of the body, organs and motor skills; the cognitive abilities such as language, perception and memory; and the psychosocial development, which includes social interactions, personality traits and identity (Sigelman Rider, 2006). Human growth, development and aging are guided by a unique genetic program, set into action by the brain and hormones released by the endocrine system. We will write a custom essay sample on Normative Development or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Areas of physical development include brain development, locomotor skills and sensory capabilities. including perception. Developmental phases studied across the lifespan are the infant, from birth to two years, the child from approximately three to twelve years, the adolescent of twelve to eighteen years and finally the adult; young, middle, and elderly. The endocrine system, together with the nervous system, is fundamental to growth during childhood, sexual and physical maturation of the adolescent, performance and aging over the lifespan (Sigelman Rider, 2006). Jean Piaget’s Cognitive Development Theory is still widely influential today and remains directly relevant to contemporary theories on child development. Piaget proposed that all children progress through four universal, stage-like phases, and believed development was predominantly biological-based although he did recognize environmental-learned experience. He considered humans to be adaptive and active in their cognitive development, and to construct new understandings through their explorations. These developments are qualitative and replace former strategies at each new stage (Sigelman Rider, 2006). By arguing these stages were similar and common to all children, Piaget espoused normative development. Piaget’s first stage, from birth to two years, is the sensorimotor period. Infants explore and discover their world using their innate senses and motor skills, solving problems through experimenting. By constructing organized patterns of thought and action schemes they are able to make sense of their world. As children’s knowledge and experiences change, these schemes adapt and change as a result of the ensuing mental conflict and the interpretation of new information. According to Piaget, they learn to construct mental symbols, leading to more purposeful thought and early language, such as babbling and cooing (Sigelman Rider, 2006). Infancy is a time when most fundamental capacities emerge and develop and on which the rest of the lifespan is determined, so it is a crucial period. Babies are born with reflexes, sensory and perceptual capabilities and are able to learn through their experiences. Motor skills are closely connected to perceptual-cognitive developments. Newborns are checked for normal physical development using the Agpar test for heart, colour, reflex, muscle and respiratory (Sigelman Rider, 2006). The critical period for brain development is during late pregnancy and early infancy. Although normal genes roughly determine normal functioning, early xperiences establish the brain’s patterning. Research has shown that babies born into lower socio-economic environments and institutions are at a disadvantage. This is possibly due to poor maternal nutrition, lack of healthcare and advice, and lack of a stimulating environment. Physical and emotional conditions surrounding the pregnant and early inf ant environment can determine and influence whether a baby develops within the developmental norm. Environmental hazards such as pollutants, and exposure to drugs and alcohol can have adverse affects on development that impact across the lifespan. Risks include low birth weight, mental retardation and congenital abnormalities, such as spina bifida and Down syndrome (Sigelman Rider, 2006). There are also sensitive periods within early infancy in which normal vision, perception, hearing and language development can be compromised. Abnormalities can have profound affects on the development of close family members too (Sigelman Rider, 2006). Clearly, considering the complex clinical reality of infant development and factors that cannot be predetermined, Piaget’s theory is too restrictive. Infants and children most likely to experience stable normative development benefit most from a stimulating loving home environment. In his Attachment Theory, psychiatrist John Bowlby argued that humans are biologically disposed to forming close affection ties and behavioral systems that help us normalize our emotions. A secure early attachment to our primary caregiver has been shown to have a positive impact on an individual’s social development and the quality of attachment during infancy can influence the quality of relationships across each subsequent developmental period. Those infants and children, who never form a stable attachment bond through circumstances such as parental absence, are more likely to suffer relationship issues throughout the lifespan. Early emotional strain can raise stress hormone levels in infants and this can impact on their neural development. Evidence shows social relationships affect health and wellbeing, so dysfunction has a direct impact on our development (Sigelman Rider, 2006). Psychologist Albert Bandura’s Social Cognitive Theory stresses the role our social interactions have on our development. Bandura believed that by observing other people we construct and memorise mental symbols, which we later use to direct our behaviour. He emphasized the importance of active information processing in behavioural and learning development. By observing the potential consequences of others actions, learners will then decide whether to imitate (Bandura, 2001). This can account in part for language progression. By listening to talking, infants begin to process words. They then imitate other people’s speech, and if this behaviour has favourable consequences, they are more likely to have advanced early language development (Sigelman Rider, 2006). Infants with older siblings also show superior word comprehension, signifying the influence of the social-interaction element (Fletcher-Flinn McCormack, 2000). The core feature of Bandura’s theory is that â€Å"people play a part in their self-development, adaption, and self-renewal with changing times† (Bandura, 2001, p2). Self-efficacy, the belief that one can successfully create a desired outcome, ultimately affects what courses of action people choose, and so affect development. In this way, development is context specific, multi-directional and can differ at all ages. He rejects the notion of universality and believes developmental change occurs gradually and continuously (Sigelman Rider, 2006). In Piaget’s theory, pre-school children aged two to seven, are in the pre-operational stage. Children’s physical growth is steady and they master more advanced motor skills as their muscles strengthen and their agility improves. Their symbolic capacity flourishes as they play and develop language. Creativity rises but appears to lessen at the advent of school. They are unable to think logically and view the world egocentrically. They become more aware of gender and develop early theory of mind, beginning to understand people have different mental states that cause certain behaviours. Dependent on a normal brain, this ability to understand others and adopt their perspective generally leads to better social integration. Piaget believed it is through the interaction with their peers, not adults, that children advance their cognitive development. This appears true for children’s social cognition too, with evidence showing children with siblings have a higher developed theory of mind (Sigelman Rider, 2006). In contrast to Piaget, the Russian psychologist Les Vygotsky’s sociocultural perspective emphasizes the role of culture and society in cognitive development. Children learn through interaction with a skilled helper and in response to cultural influences. Language is a key learning tool the child internalizes into personal thought processes, problem solving and language development. As statistics show, in children less than three years, large differences in vocabulary are apparent due to quantity and quality of language they are exposed to. Unlike Piaget who believed guided training does not increase development, Vygotsky’s perspective relies on the premise that children learn and advance through teaching. Evidence of special preschool education services for disadvantaged children shows better performance in cognitive and social skills, suggesting that children can improve their skills if given a stimulating learning environment (Sigelman Rider, 2006). The Bayley Scales test normal mental, motor and behaviour development of infants and are thus a diagnostic tool for neurological problems. Children who suffer autism have trouble developing theory-of-mind, empathy for others and experience socialising problems (Sigelman Rider, 2006). Their development and that of their families will deviate from the expected norms. The rapid growth of electronic technology we are experiencing in the 21st Century will surely advance children’s early cognitive abilities in ways not studied by Piaget and raises doubts as to what we can define as normative today (Bandura, 2001). In Piaget’s concrete-operational stage, children ages seven to eleven begin to reason logically and deductively, thereby improving memory skills and problem solving. Their knowledge base and ability to process information increases. Piaget stated that these cognitive developments are qualitative and occur almost abruptly with each stage, whereas information-processing theorist Robert Siegler argues that these changes occur gradually and variably over time. His â€Å"overlapping waves theory† suggests children adapt and select their strategies to tasks as needed (Sigelman Rider, 2006, p230). Piaget proposed children develop a â€Å"heteronomous morality†, believing in the sacredness of rules, with little consideration of intentions (Sigelman Rider, 2006, p328). More recent findings suggest children are able to differentiate between rules and their level of social cognition is more sophisticated then Piaget expected (Sigelman Rider, 2006). The issue of good nutrition is still crucial to normal development and those children from low socio-economic households are shown to be disadvantaged (Sigelman Rider, 2006). Obesity and the associated disease type 2 diabetes are becoming more prevalent and are one of the biggest health challenges facing western developed nations. Traditionally considered a disease of adults, type 2 diabetes is increasingly diagnosed in children in parallel to rising obesity rates. Another by-product of 21st Century living, the epidemic raises questions as to what constitutes a normative physical development (Australian Institute of Health Welfare). In Piaget’s formal-operations stage, from approximately twelve years onwards, adolescents’ cognitive abilities improve as the brain increases, with the beginning of abstract and hypothetical thought, and increased attention span. During adolescence, strong bonds with peers are formed and many experience with intimate relationships. They develop more advanced social perspective-taking capacities, entering what Piaget termed the â€Å"Autonomous morality† stage, where they start to take into account others intentions and view rules as changeable contracts (Sigelman Rider, 2006, p383). In his social cognitive perspective, Bandura stresses that our moral cognition is tied to our moral behaviour. This behaviour is learned through observation, and is reinforced by the consequences of our behaviour. It is monitored internally by our individual standards of morality. So if we have not internalised strong moral standards, we are more likely to become involved in immoral behaviour. Personality traits and resulting behaviours alter and adapt according to specific social environments. Adolescent’s ability to think more independently can also lead to greater confusion and rebellion. This is particularly evident in adolescent’s often reckless conduct and risk taking that can have huge implications on their future development (Sigelman Rider, 2006). Adding to the internal confusion is the dramatic physical changes that occur. A surge in growth hormones creates a growth spurt and muscles develop rapidly. Both sexes experience sexual maturation, or puberty. The psychological effects of puberty are significant as teenagers grapple with their sexual changes and increased levels of hormones. Adolescents often become preoccupied with body image and how they are perceived and a period of internal conflict and self-identity emerges. Evidence also indicates the age at which adolescents experience puberty has a significant affect on all aspects of their development, including sense of identity, academic performance and social confidence. Levels of cognitive development, home and cultural environment and scope for opportunities create a diverse range of experiences and differing developmental results (Sigelman Rider, 2006). Research has shown that some adults do not reach or use Piaget’s final stage, formal-operational thought, especially in remote rural cultures where social experiences are limited. There is also evidence that people swing between Piaget’s later stages depending on the social and environmental context (Sigelman Rider, 2006). This questions Piaget’s assertion of universality and discontinuity. Although Piaget suggested that cognitive development was mastered by age eighteen, research indicates some adults reach another level, known as postformal thought. The qualitative difference is relativistic thinking, that is, â€Å"†¦ understanding that knowledge depends on the subjective perspective of the knower† (Sigelman Rider, 2006, p 206). In young and middle adulthood, cognitive abilities strengthen and intelligence stabilizes. In later adulthood, some mental and physical capabilities slowly start to weaken. The decline in neural functioning affects cognition and perception, with the most universal changes in capacities being visual and auditory. However self-esteem and identity seem to remain stable. As we age, disease and physical ailments increase although good nutrition and keeping physically active contribute to healthy development. Keeping mentally alert and socially active can also slow down declines in cognition. Deterioration of the nervous system occurs leading to degrees in memory loss, and often alzheimers. There are considerable differences in aged development, while many older adults remain alert and active across most of the lifespan, others contract debilitating diseases (Sigelman Rider, 2006). An expected normative development, then, appears problematic. Universal stage theories, such as Piaget’s, have been formulated within specific social contexts and value systems. A normal developmental milestone expected in one culture may not be valued or relevant in another. These developmental norms are also influenced by factors such as the group studied, culture and generation and so conceal wide variations among the subjects. Criticisms of many studies include a cultural and gender-bias, and a lack of consideration for the relevant historical and social contexts (Sigelman Rider, 2006). While Piaget has been hugely influential in furthering understanding cognitive development, particularly in children, and there may be some degrees of universal growth, such theories fail to factor in our unique experiences, the dynamics of change and the significant individual variabilities to these norms as evident in our world. As German psychologist Paul Baltes (1980) successfully argues, developmental-processes can occur at any age in life and are influenced by historical, biological, sociocultural and unexpected life events that can account for substantial individual variation. Bandura’s social cognitive theory takes into account this complex interplay of individual biological potentialities, different psychosocial influences and the adaptive modes of behaviour people adopt to shape their development (Bandura 2001). People are proactive and â€Å"†¦bring their influence to bear on how they live their lives† (Bandura, 2001, p13). Today, with the advance of genetic research and a more sophisticated understanding of human development, the focus of development now lies in the fluctuating balance of gene-environment interaction (Sigelman Rider, 2006). The study of identical and non-identical twins has advanced scientists’ findings. By studying twins reared together and apart, scientists are able to better estimate the degree to which heredity and environment contribute to an individual’s makeup (Wright, 1997, p1). So although it will always be problematic establishing beyond a doubt the exact degree of influence, the sheer scale of contributing and conflicting factors that shape our development means there will remain ambiguity concerning normative development. â€Å"Assuming that the infant has normal opportunities to explore and experience the world, the result will be a normal brain and normal development† (Sigelman, 2006, p155). The degree to which this can be true depends greatly on seemingly immeasurable, complex and changing conditions. At best, by attempting to define normative development, theorists offer guidelines that aid us in understanding the many developmental possibilities and alert us to the vast differences in human development. But the different sources of influence such as genetics, nutrition, rearing, social class, temperament, ethnicity and culture that determine our development are too diverse and complex to allow for a truly predictable normative development.