Hcc Industries

1. Evaluate the decision to use â€Å"minimum performance standard† (MPS) targets instead of â€Å"stretch† targets. The purpose of setting a budget system is to briefly forecast a company’s performance in the following year, and it can also be a result control system that makes people in the corporation work properly to achieve the objectives and give them incentives by bonus related to performance. From this point of view, the budget system should be reasonable, achievable, and also have some challenge to ensure the hard working. HCC Industries was using â€Å"stretch† performance targets until 1987.The main idea of using â€Å"stretch† targets was to motivate managers to perform at the highest level possible by setting aggressive targets with probability of achievement between 75 % and 80 %. In order to motivate the managers, incentive system was directly related to the budget targets. The bonus potential for division managers was 30% of base sal ary and was equally based on profit before taxes (PBT) and subjective rating of performance depending on the degree of accomplishment of the targets in all seven performance areas.In case that only few of performance areas were not met, but the management considered them important, no subjective bonus would be provided. Objective bonus based on profit before taxes was provided as following: if 60 % of the budget was achieved, 80 % of the bonus potential was paid; if 100 % of the budget was achieved, 100 % of the bonus potential was paid; and if 140% of the budget was achieved, 150 % of the bonus potential was paid. Bonuses were paid quarterly at the level of 80 % of what was earned in order to prevent paying the bonuses that were not earned.However, philosophy of using â€Å"stretch† performance targets in HCC Industries did not work very well, since it encouraged thinking optimistically that pushed employees to perform at a higher level leading to innovation. This philosophy is advantageous for particular companies with a certain size that have an understanding of the markets and have an ability to influence them. HCC Industries was a small publicly held corporation which was just taking orders and not doing marketing. For this reason, there was little probability for the employees to enlarge the market and achieve an aggressive growth in sales every year.Performance targets were set too high and optimistic, they were unrealistic, unachievable, and not suitable for a company which could not make a sustaining growth by influencing the market. One of the main disadvantages of â€Å"stretch† targets was that they were set too high. This led to the situation that for the last four years HCC Industries never achieved its targets. As a result, employees lost their motivation and commitment to achieve the targets; they were discouraged, and exert less effort by giving up trying, as they felt that â€Å"stretch† concept was causing the corporatio n not to achieve its plans.If a division keeps missing the budgets, employees feel like a failure. Taking into account that the employees could not achieve the targets for already four years, they had lost their confidence and became used to missing the budget and the enthusiasm to strive for the objectives was weakened. Although the targets were set at an unreachable level, the control system was not that tight. Even if the managers failed to achieve the targets, they may also be paid the bonus. For example, the managers were still paid 80% of objective bonus potential based on profit before taxes if they had just achieved 60% of the budget.So if a manager was not so ambitious, he did not have to worry about meeting the budget. Moreover, important constraint to motivation of division personnel was that they did not know their bonus potential and the bases on which the bonus awards were made, as division managers did not want to disclose division-level financial information to their personnel. As a result, being unaware of the main objectives of the corporation and its incentive system, employees did not exactly know what they are expected to do and how they would be rewarded for their efforts.As a result of the lack of communication between division managers, middle managers and employees, division personnel became discouraged and demotivated. In addition, if employees are systematically undercompensated, the corporation may suffer from losing key employees. Another disadvantage of â€Å"stretch† performance targets was subjectivity of incentive system. According to the information, provided from the case study, bonuses were paid only to employees included in the bonus plan. It can be concluded that not all employees were included in this plan.Moreover, half of the bonus potential was based on subjective evaluation of top management. However, there is a concern whether top management could judge each division in appropriate way, taking into account all the differences between them. The aforementioned subjective aspect influences performance and motivation of employees. In addition, important demotivating factor was that awards had to be paid quarterly at the level of 80% of what was earned. It took three to four months before they actually were paid because the necessary approvals by several levels were needed before the payments could be made.The remaining 20 % was paid at the end of the year based on annual performance. Taking into account aforementioned challenges of using â€Å"stretch† performance targets, the management of the corporation had taken a decision to change the philosophy to â€Å"minimum performance standard† (MPS) targets from the fiscal year 1988 onwards. The philosophy provided a two-level budget standards. The first level included the minimum performance standard that determined the basic financial target that divisions should reach. The second level included the targets that were set more cha llenging, and had some incentive effect.The main objective of this decision was to submit budgets with realistic targets with an achievement probability of 100% in order that divisions could meet the targets. As a result, division managers and other employees would become motivated by being proud of themselves, having self-esteem and starting feeling like â€Å"winners†. Being motivated, division personnel would be encouraged to work hard, be entrepreneurial and increase the level of aspiration for the future. Moreover, they would be given an opportunity to earn extra rewards.Another advantage of highly achievable budget targets is that they reduce the costs of needed interventions from corporate managers and the costs of optimistic revenue projections. Highly achievable budget targets also reduce the risk of game-playing. However, not all potential advantages of MPS targets were achieved in HCC Industries. Before implementing MPS targets, corporate managers did not analyze c arefully all problems that the company faced on the level of operations, marketing and finance. Corporate managers of HCC industries introduced the following changes in the corporation connected with the switch to MPS budgeting philosophy.First of all, the probability of the achievement of the budgets had been changed. MPS budgets were to be set with the felt probability of achievement 100%. In addition, managers were asked to set targets that exceed normal capability and involve an increase by 25-30 % with the probability of achievement of 50 %. However, although the budgets were planned to be set realistic and achievable, in reality they were too high and some division managers were even more than before concerned whether it would be possible to achieve them.In some divisions, such as Glasseal and Sealtron, corporate managers just increased the planned budgets without any analysis of the actual situation and discussion about business potential and risks with the division managers. As a result, division managers became even more demotivated because of too optimistic budgets. Moreover, by missing the new budgets, employees could be fired. The division manager of Hermetite was not provided by top managers with essential information about the corporation, its strategy, targets and the actual situation, and targets of his division before planning the budget.Being just hired and having the lack of experience and knowledge, he set too optimistic targets that could never be achieved in reality. As a result, the new division manager experienced failure and frustration at the beginning of his working experience in HCC Industry that had led to undermining of his confidence and commitment. Secondly, the incentive system had also been changed. According to new incentive compensation plan, bonus pool consisted of 20 % of the amount by which actual division PBT exceed MPS and 25 % of the amount by which it exceeded the target.Bonuses were paid quarterly at a level of 90 % of that earned and the remaining 10 % at the end of the year depending on the performance. It can be concluded that the rewards became lower than with â€Å"stretch† performance targets. The probability of losing the job in case the MPS targets would not be met, became greater. The disadvantage of subjective judgment concerning the bonuses was not eliminated under the new philosophy, as the division managers were given the discretion to decide which of their subordinates would share in the bonus pool and how the pool would be allocated among themselves and the others included.The key factor to the success of the budget system lied in the accuracy of forecasting the market share, the booking rate, the potential growth of sales, and so on. If a manager had little knowledge about the market information and the competitors, it would be difficult to set the MPS. The effectiveness of the budget system would be weakened, and this was the one of the main problems HCC faced after intr oduction of the MPS system. Evaluating the decision of changing the corporation’s philosophy based on early results, allows concluding that the new concept was not implemented well, even given the fact that it was a good idea.After the first quarter of fiscal year 1988, none of the divisions achieved all of its MPS and some of the divisions missed their minimum performance by large margins. 2. Should HCC managers have expected that the MPS target-setting philosophy would be equally effective in all four operating divisions described? HCC Industries was organized into four operating divisions: Hermetic Seal, Glasseal, Sealtrol that were producing connectors of various types, and Hermetite that was producing custom-designed, micro-electronic packages. Each division was run by a general manager who was responsible for all business functions of a certain division.In order to proper evaluate and monitor divisions’ results on which the bonuses were based, controllers of each division reported to HCC’s CFO. Corporate managers should have taken into account that the divisions differ from each other, and should have considered each division separately while using MPS target-setting philosophy as each division had some specific characteristics that were different from others. Although all the three connector divisions were similar in that they were profitable but growing slowly, there was a significant difference in the degree of standardization of their product lines.For example, division Sealtrol was highly standardized and produced connectors with large economies of scale. On the contrast, Hermetic Seal was the least standardized division and operated primarily as a job shop that designed and produced small batches of custom connectors. Glasseal’s product lines had the medium level of standardization. The forth division Hermetite was completely different from the connector divisions. In comparison with the first three divisions, its market and competitors were well defined and its potential for growth was tremendous.In addition, Hermetite faced huge price competition and significant production technology and control challenges. Moreover, the production processes were complex and its engineering and production organizations were instable. Given the fact that all four divisions were independent from each other, had different targets, accounting and information systems, product standards, served different customers, had different professional background of division managers, a detailed analysis should have been made whether MPS targets would be equally effective in all four divisions.Mike Pelta, the manager of the first division Hermetic Seal was more motivated after the changes, as with â€Å"stretch† performance targets, the probability of the achievement of the targets was 85-90%, whereas with MPS targets it has increased by 95-98%. The reason of such a high probability of achievement the targets was the fact that the division manager had set conservative targets. Mike Pelta was a cofounder of HCC, and was more familiar with the situation of the company. From the first quarter revenue result of 1988, we can find that only Hermetic Seals exceeded target in both bookings and profit before tax.But on the other hand, there were some problems in product qualities such as returns and rework. The manager of the second division Glasseal was even more demotivated after the changes than under the â€Å"stretch† performance targets. After the division manager had prepared the budget based on realistic forecast, the targets were increased by corporate managers. As a result, the probability of the achievement of the targets remained 90%, as it was before changes. However, with the â€Å"stretch† targets the rewards were greater and could be earned even if the budget was missed.It could be concluded that the change for MPS targets had not become better and more motivated for the second d ivision. Historical performance of the third division Sealtron was not so good. Efficiency in sales per employee was 50 % below other connector divisions, and budget was missed so salaries were frozen. The division manager, Lou Palamara, was recruited in 1986. Lou Palamara had a background of an engineering manager, so he was not that familiar with the corporation and had less knowledge about budget and cost saving. The division manager was discouraged by newMPS targets, as the targets he set had significantly been increased by corporate managers and the probability of its achievement according to division manager, was only 60-65%. As a result, if the budget would have increased by 18 % compared to the previous year, there would be still no bonus earned. Moreover, in case MPS standards would not be achieved the manager could be fired. At the same time, CFO of the corporation assessed the probability of the achievement of the targets by 90%. His idea was to stimulate sales as the Sea ltron’s efficiency was below other connector divisions.It can be concluded that the opinion of top managers and division manager on the achievement of targets was significantly different (90 % versus 60-65 %). In this situation, in order to come to common solution, additional analysis should have been done of actual situation and current performance of the division. It should have been carefully analyzed the reason of poor performance of the third division. Before the fourth division Hermetite was acquired in August 1985, it had been operating at a loss for the price competition and the production problems.The former general manager of Hermetite left a serious delinquency problem, which had worsen the reputation of the company, so booking could not be guaranteed. The manager Alan Wong, being new in the corporation and lacking particular experience and knowledge, was not provided with additional training and explanation of the corporation’s and division’s main ob jectives. He thought the corporate managers would not accept a budget that projected a loss. As a result, he had set very aggressive and optimistic targets that were unrealistic and corporate managers decreased the targets.However, the probability of achievement of the performance target at sales was 80 % and PBT target was only 5 %. The performance of the forth division was very risky and uncertain. From the first quarter results of 1988, we can discover that the bookings and shipments were both below MPS. After analyzing MPS targets in all four divisions, it could be concluded that only the manager of the first division, that was the original HCC business, was motivated by the changes. The managers of the other three divisions were even more concerned than before the changes.The main reason of such situation was that corporate managers thought that the targets were achievable, whereas division managers had the opinion that they are not achievable and unrealistic. It can be conclud ed that there was a lack of communication between corporate and division managers. Moreover, the evaluation standards were the same for every division without taking into account different situation and various targets of each division. Given the fact that there were only four independent divisions, individual approach and specific evaluation standards for each division should have been used. 3.What, if anything, could have been done to improve the implementation of the new philosophy? From 1988 onwards, the philosophy in HCC Industries had been changed from â€Å"stretch† targets to minimum performance standard (MPS) targets. However, according to the results of the first quarter of 1988, none of the divisions had achieved all of its MPS. It can be concluded that there were some problems in implementing new philosophy. First of all, the targets of every division should be aligned with the long-term strategy of the corporation. Top managers should clearly set the company stra tegy and priorities and communicate them to all divisions.Division managers should in turn have been communicated to the corporate managers opportunities, resource needs, constraints and risks. HCC Industries would achieve success if all divisions would work together towards common targets and objectives instead of being concentrated on personal goals of each division that could diverge from the strategy of corporation. According to the information provided in the case study, corporate managers were confident that the set objectives were achievable and realistic, division managers had the opposite opinion.As a result, division managers were discouraged to perform from the beginning. In order to avoid demotivation and increase the probability of the achievement of the targets, the balance should be found between the desires of the top management and the possibilities of the divisions. In that case, they closely need to communicate with each other and come together to the common solut ion. This would lead to more realistic budgets, would build employees up and increase managers’ commitment to achieve the targets.Secondly, as long as at HCC all divisions were decentralized, the differences and unique characteristics of each division should be taken into account. As a result, different performance evaluation standards should be used for every division. It is impossible to compare Hermetic Seal which is the original HCC business with Glasseal and Sealtron that were acquired even if all of them produce connectors. Moreover, the degree of standardization of product lines within these divisions is completely different. The forth division is completely different from the first three.That is why individual approach should be used for every division. There are only four divisions, that is why it is realistic for corporate managers to evaluate and analyze each division separately. Whereas some divisions could achieve higher targets, for others lower targets are more realistic. When planning the budget, the actual situation and performance of each division should be analyzed instead of comparison with other divisions. Before increasing the targets of the second and third divisions a more detailed analysis was needed.In addition, it would be helpful for corporate managers to discuss with the division managers the possible constrains of poor performance of their divisions and to evaluate whether additional actions are needed in order to improve performance. In order not to demotivate employees, it would be better to agree the targets and to find compromise rather than just to set them. Corporate managers should establish the dialogue with division managers and other personnel in order to gather an objective opinion about the real situation inside the company.Such working atmosphere would encourage employees to be involved in the company more and would give them the feeling that corporate managers listen to them when changing strategic issues. Div ision managers would feel themselves important in the organization and would be more encouraged to perform at the highest level possible and would feel more responsibility for the achievement of the targets. Thirdly, top management before changing the budgeting philosophy should have made a sound analysis of current performance on corporate level as it is a very important decision.Implementing new standards for evaluating involves the research of effectiveness of operation potential growth, the personal characteristics, the financial constraints, resource limitations, opportunities and risks. Fourthly, personal controls could be used by training division managers. For instance, it was very important for the fourth division to provide the manager with some additional information about the corporation before planning the budget.Taking into account the fact that Alan Wong was relatively new in the corporation, it is quite obvious that he lacks some experience and knowledge to plan an e ffective and realistic budget. It is also clear from the information provided in the case study, that he was unfamiliar with the strategy of the corporation and the expectations from the top managers from his division. Planning the budget is very important for the corporation. It requires deep understanding not only the goals and objectives of a particular division but also of the entire corporation.As there was a lack of communication between the top management and the division managers, the new division manager had set unrealistic budget. Fifthly, there was not only a lack of communication between top management and division managers, but also between the division personnel. In order to increase the motivation amongst personnel, the division managers should clearly communicate the main objectives and set the targets to their employees and provide them with the detailed information concerning the incentive system.In this case, employees would understand what they are expected to do and how they would be rewarded for that. Sixthly, as the marketing information collection was an obvious obstacle for the accurate forecast of the future, it is important to set up a marketing team in the four divisions. The target of the team is to collect the market share data of each product in previous years, the reasons for the up-and-downs of the market share, find out what kind of improvement will the target consumers need in the future, the scale of potential customers, and so on.With the detailed information of the market, it will be easier for the division to forecast the future sales and try to expand the existing market. Seventhly, it can be suggested, that for the first year when the changes were applied, the top management could set very realistic conservative targets in order to encourage employees and make them feel that the targets are achievable. Given the fact that the targets were not achieved for the last four years the employees got used to missing targets and became demotivated.In addition, given the fact that some divisions, for example Hermetite, experience current problems, flexible targets could be set, that would depend on certain conditions at a particular time. Finally, before taking a new decision about the changes, it could be helpful to organize the meeting with all division managers in order to announce them personally about the expected changes and gather some ideas from them about how to implement the new philosophy. Such brainstorming could help to pay attention to some important aspects from the bottom that top management was not considering. Hcc Industries 1. Evaluate the decision to use â€Å"minimum performance standard† (MPS) targets instead of â€Å"stretch† targets. The purpose of setting a budget system is to briefly forecast a company’s performance in the following year, and it can also be a result control system that makes people in the corporation work properly to achieve the objectives and give them incentives by bonus related to performance. From this point of view, the budget system should be reasonable, achievable, and also have some challenge to ensure the hard working. HCC Industries was using â€Å"stretch† performance targets until 1987.The main idea of using â€Å"stretch† targets was to motivate managers to perform at the highest level possible by setting aggressive targets with probability of achievement between 75 % and 80 %. In order to motivate the managers, incentive system was directly related to the budget targets. The bonus potential for division managers was 30% of base sal ary and was equally based on profit before taxes (PBT) and subjective rating of performance depending on the degree of accomplishment of the targets in all seven performance areas.In case that only few of performance areas were not met, but the management considered them important, no subjective bonus would be provided. Objective bonus based on profit before taxes was provided as following: if 60 % of the budget was achieved, 80 % of the bonus potential was paid; if 100 % of the budget was achieved, 100 % of the bonus potential was paid; and if 140% of the budget was achieved, 150 % of the bonus potential was paid. Bonuses were paid quarterly at the level of 80 % of what was earned in order to prevent paying the bonuses that were not earned.However, philosophy of using â€Å"stretch† performance targets in HCC Industries did not work very well, since it encouraged thinking optimistically that pushed employees to perform at a higher level leading to innovation. This philosophy is advantageous for particular companies with a certain size that have an understanding of the markets and have an ability to influence them. HCC Industries was a small publicly held corporation which was just taking orders and not doing marketing. For this reason, there was little probability for the employees to enlarge the market and achieve an aggressive growth in sales every year.Performance targets were set too high and optimistic, they were unrealistic, unachievable, and not suitable for a company which could not make a sustaining growth by influencing the market. One of the main disadvantages of â€Å"stretch† targets was that they were set too high. This led to the situation that for the last four years HCC Industries never achieved its targets. As a result, employees lost their motivation and commitment to achieve the targets; they were discouraged, and exert less effort by giving up trying, as they felt that â€Å"stretch† concept was causing the corporatio n not to achieve its plans.If a division keeps missing the budgets, employees feel like a failure. Taking into account that the employees could not achieve the targets for already four years, they had lost their confidence and became used to missing the budget and the enthusiasm to strive for the objectives was weakened. Although the targets were set at an unreachable level, the control system was not that tight. Even if the managers failed to achieve the targets, they may also be paid the bonus. For example, the managers were still paid 80% of objective bonus potential based on profit before taxes if they had just achieved 60% of the budget.So if a manager was not so ambitious, he did not have to worry about meeting the budget. Moreover, important constraint to motivation of division personnel was that they did not know their bonus potential and the bases on which the bonus awards were made, as division managers did not want to disclose division-level financial information to their personnel. As a result, being unaware of the main objectives of the corporation and its incentive system, employees did not exactly know what they are expected to do and how they would be rewarded for their efforts.As a result of the lack of communication between division managers, middle managers and employees, division personnel became discouraged and demotivated. In addition, if employees are systematically undercompensated, the corporation may suffer from losing key employees. Another disadvantage of â€Å"stretch† performance targets was subjectivity of incentive system. According to the information, provided from the case study, bonuses were paid only to employees included in the bonus plan. It can be concluded that not all employees were included in this plan.Moreover, half of the bonus potential was based on subjective evaluation of top management. However, there is a concern whether top management could judge each division in appropriate way, taking into account all the differences between them. The aforementioned subjective aspect influences performance and motivation of employees. In addition, important demotivating factor was that awards had to be paid quarterly at the level of 80% of what was earned. It took three to four months before they actually were paid because the necessary approvals by several levels were needed before the payments could be made.The remaining 20 % was paid at the end of the year based on annual performance. Taking into account aforementioned challenges of using â€Å"stretch† performance targets, the management of the corporation had taken a decision to change the philosophy to â€Å"minimum performance standard† (MPS) targets from the fiscal year 1988 onwards. The philosophy provided a two-level budget standards. The first level included the minimum performance standard that determined the basic financial target that divisions should reach. The second level included the targets that were set more cha llenging, and had some incentive effect.The main objective of this decision was to submit budgets with realistic targets with an achievement probability of 100% in order that divisions could meet the targets. As a result, division managers and other employees would become motivated by being proud of themselves, having self-esteem and starting feeling like â€Å"winners†. Being motivated, division personnel would be encouraged to work hard, be entrepreneurial and increase the level of aspiration for the future. Moreover, they would be given an opportunity to earn extra rewards.Another advantage of highly achievable budget targets is that they reduce the costs of needed interventions from corporate managers and the costs of optimistic revenue projections. Highly achievable budget targets also reduce the risk of game-playing. However, not all potential advantages of MPS targets were achieved in HCC Industries. Before implementing MPS targets, corporate managers did not analyze c arefully all problems that the company faced on the level of operations, marketing and finance. Corporate managers of HCC industries introduced the following changes in the corporation connected with the switch to MPS budgeting philosophy.First of all, the probability of the achievement of the budgets had been changed. MPS budgets were to be set with the felt probability of achievement 100%. In addition, managers were asked to set targets that exceed normal capability and involve an increase by 25-30 % with the probability of achievement of 50 %. However, although the budgets were planned to be set realistic and achievable, in reality they were too high and some division managers were even more than before concerned whether it would be possible to achieve them.In some divisions, such as Glasseal and Sealtron, corporate managers just increased the planned budgets without any analysis of the actual situation and discussion about business potential and risks with the division managers. As a result, division managers became even more demotivated because of too optimistic budgets. Moreover, by missing the new budgets, employees could be fired. The division manager of Hermetite was not provided by top managers with essential information about the corporation, its strategy, targets and the actual situation, and targets of his division before planning the budget.Being just hired and having the lack of experience and knowledge, he set too optimistic targets that could never be achieved in reality. As a result, the new division manager experienced failure and frustration at the beginning of his working experience in HCC Industry that had led to undermining of his confidence and commitment. Secondly, the incentive system had also been changed. According to new incentive compensation plan, bonus pool consisted of 20 % of the amount by which actual division PBT exceed MPS and 25 % of the amount by which it exceeded the target.Bonuses were paid quarterly at a level of 90 % of that earned and the remaining 10 % at the end of the year depending on the performance. It can be concluded that the rewards became lower than with â€Å"stretch† performance targets. The probability of losing the job in case the MPS targets would not be met, became greater. The disadvantage of subjective judgment concerning the bonuses was not eliminated under the new philosophy, as the division managers were given the discretion to decide which of their subordinates would share in the bonus pool and how the pool would be allocated among themselves and the others included.The key factor to the success of the budget system lied in the accuracy of forecasting the market share, the booking rate, the potential growth of sales, and so on. If a manager had little knowledge about the market information and the competitors, it would be difficult to set the MPS. The effectiveness of the budget system would be weakened, and this was the one of the main problems HCC faced after intr oduction of the MPS system. Evaluating the decision of changing the corporation’s philosophy based on early results, allows concluding that the new concept was not implemented well, even given the fact that it was a good idea.After the first quarter of fiscal year 1988, none of the divisions achieved all of its MPS and some of the divisions missed their minimum performance by large margins. 2. Should HCC managers have expected that the MPS target-setting philosophy would be equally effective in all four operating divisions described? HCC Industries was organized into four operating divisions: Hermetic Seal, Glasseal, Sealtrol that were producing connectors of various types, and Hermetite that was producing custom-designed, micro-electronic packages. Each division was run by a general manager who was responsible for all business functions of a certain division.In order to proper evaluate and monitor divisions’ results on which the bonuses were based, controllers of each division reported to HCC’s CFO. Corporate managers should have taken into account that the divisions differ from each other, and should have considered each division separately while using MPS target-setting philosophy as each division had some specific characteristics that were different from others. Although all the three connector divisions were similar in that they were profitable but growing slowly, there was a significant difference in the degree of standardization of their product lines.For example, division Sealtrol was highly standardized and produced connectors with large economies of scale. On the contrast, Hermetic Seal was the least standardized division and operated primarily as a job shop that designed and produced small batches of custom connectors. Glasseal’s product lines had the medium level of standardization. The forth division Hermetite was completely different from the connector divisions. In comparison with the first three divisions, its market and competitors were well defined and its potential for growth was tremendous.In addition, Hermetite faced huge price competition and significant production technology and control challenges. Moreover, the production processes were complex and its engineering and production organizations were instable. Given the fact that all four divisions were independent from each other, had different targets, accounting and information systems, product standards, served different customers, had different professional background of division managers, a detailed analysis should have been made whether MPS targets would be equally effective in all four divisions.Mike Pelta, the manager of the first division Hermetic Seal was more motivated after the changes, as with â€Å"stretch† performance targets, the probability of the achievement of the targets was 85-90%, whereas with MPS targets it has increased by 95-98%. The reason of such a high probability of achievement the targets was the fact that the division manager had set conservative targets. Mike Pelta was a cofounder of HCC, and was more familiar with the situation of the company. From the first quarter revenue result of 1988, we can find that only Hermetic Seals exceeded target in both bookings and profit before tax.But on the other hand, there were some problems in product qualities such as returns and rework. The manager of the second division Glasseal was even more demotivated after the changes than under the â€Å"stretch† performance targets. After the division manager had prepared the budget based on realistic forecast, the targets were increased by corporate managers. As a result, the probability of the achievement of the targets remained 90%, as it was before changes. However, with the â€Å"stretch† targets the rewards were greater and could be earned even if the budget was missed.It could be concluded that the change for MPS targets had not become better and more motivated for the second d ivision. Historical performance of the third division Sealtron was not so good. Efficiency in sales per employee was 50 % below other connector divisions, and budget was missed so salaries were frozen. The division manager, Lou Palamara, was recruited in 1986. Lou Palamara had a background of an engineering manager, so he was not that familiar with the corporation and had less knowledge about budget and cost saving. The division manager was discouraged by newMPS targets, as the targets he set had significantly been increased by corporate managers and the probability of its achievement according to division manager, was only 60-65%. As a result, if the budget would have increased by 18 % compared to the previous year, there would be still no bonus earned. Moreover, in case MPS standards would not be achieved the manager could be fired. At the same time, CFO of the corporation assessed the probability of the achievement of the targets by 90%. His idea was to stimulate sales as the Sea ltron’s efficiency was below other connector divisions.It can be concluded that the opinion of top managers and division manager on the achievement of targets was significantly different (90 % versus 60-65 %). In this situation, in order to come to common solution, additional analysis should have been done of actual situation and current performance of the division. It should have been carefully analyzed the reason of poor performance of the third division. Before the fourth division Hermetite was acquired in August 1985, it had been operating at a loss for the price competition and the production problems.The former general manager of Hermetite left a serious delinquency problem, which had worsen the reputation of the company, so booking could not be guaranteed. The manager Alan Wong, being new in the corporation and lacking particular experience and knowledge, was not provided with additional training and explanation of the corporation’s and division’s main ob jectives. He thought the corporate managers would not accept a budget that projected a loss. As a result, he had set very aggressive and optimistic targets that were unrealistic and corporate managers decreased the targets.However, the probability of achievement of the performance target at sales was 80 % and PBT target was only 5 %. The performance of the forth division was very risky and uncertain. From the first quarter results of 1988, we can discover that the bookings and shipments were both below MPS. After analyzing MPS targets in all four divisions, it could be concluded that only the manager of the first division, that was the original HCC business, was motivated by the changes. The managers of the other three divisions were even more concerned than before the changes.The main reason of such situation was that corporate managers thought that the targets were achievable, whereas division managers had the opinion that they are not achievable and unrealistic. It can be conclud ed that there was a lack of communication between corporate and division managers. Moreover, the evaluation standards were the same for every division without taking into account different situation and various targets of each division. Given the fact that there were only four independent divisions, individual approach and specific evaluation standards for each division should have been used. 3.What, if anything, could have been done to improve the implementation of the new philosophy? From 1988 onwards, the philosophy in HCC Industries had been changed from â€Å"stretch† targets to minimum performance standard (MPS) targets. However, according to the results of the first quarter of 1988, none of the divisions had achieved all of its MPS. It can be concluded that there were some problems in implementing new philosophy. First of all, the targets of every division should be aligned with the long-term strategy of the corporation. Top managers should clearly set the company stra tegy and priorities and communicate them to all divisions.Division managers should in turn have been communicated to the corporate managers opportunities, resource needs, constraints and risks. HCC Industries would achieve success if all divisions would work together towards common targets and objectives instead of being concentrated on personal goals of each division that could diverge from the strategy of corporation. According to the information provided in the case study, corporate managers were confident that the set objectives were achievable and realistic, division managers had the opposite opinion.As a result, division managers were discouraged to perform from the beginning. In order to avoid demotivation and increase the probability of the achievement of the targets, the balance should be found between the desires of the top management and the possibilities of the divisions. In that case, they closely need to communicate with each other and come together to the common solut ion. This would lead to more realistic budgets, would build employees up and increase managers’ commitment to achieve the targets.Secondly, as long as at HCC all divisions were decentralized, the differences and unique characteristics of each division should be taken into account. As a result, different performance evaluation standards should be used for every division. It is impossible to compare Hermetic Seal which is the original HCC business with Glasseal and Sealtron that were acquired even if all of them produce connectors. Moreover, the degree of standardization of product lines within these divisions is completely different. The forth division is completely different from the first three.That is why individual approach should be used for every division. There are only four divisions, that is why it is realistic for corporate managers to evaluate and analyze each division separately. Whereas some divisions could achieve higher targets, for others lower targets are more realistic. When planning the budget, the actual situation and performance of each division should be analyzed instead of comparison with other divisions. Before increasing the targets of the second and third divisions a more detailed analysis was needed.In addition, it would be helpful for corporate managers to discuss with the division managers the possible constrains of poor performance of their divisions and to evaluate whether additional actions are needed in order to improve performance. In order not to demotivate employees, it would be better to agree the targets and to find compromise rather than just to set them. Corporate managers should establish the dialogue with division managers and other personnel in order to gather an objective opinion about the real situation inside the company.Such working atmosphere would encourage employees to be involved in the company more and would give them the feeling that corporate managers listen to them when changing strategic issues. Div ision managers would feel themselves important in the organization and would be more encouraged to perform at the highest level possible and would feel more responsibility for the achievement of the targets. Thirdly, top management before changing the budgeting philosophy should have made a sound analysis of current performance on corporate level as it is a very important decision.Implementing new standards for evaluating involves the research of effectiveness of operation potential growth, the personal characteristics, the financial constraints, resource limitations, opportunities and risks. Fourthly, personal controls could be used by training division managers. For instance, it was very important for the fourth division to provide the manager with some additional information about the corporation before planning the budget.Taking into account the fact that Alan Wong was relatively new in the corporation, it is quite obvious that he lacks some experience and knowledge to plan an e ffective and realistic budget. It is also clear from the information provided in the case study, that he was unfamiliar with the strategy of the corporation and the expectations from the top managers from his division. Planning the budget is very important for the corporation. It requires deep understanding not only the goals and objectives of a particular division but also of the entire corporation.As there was a lack of communication between the top management and the division managers, the new division manager had set unrealistic budget. Fifthly, there was not only a lack of communication between top management and division managers, but also between the division personnel. In order to increase the motivation amongst personnel, the division managers should clearly communicate the main objectives and set the targets to their employees and provide them with the detailed information concerning the incentive system.In this case, employees would understand what they are expected to do and how they would be rewarded for that. Sixthly, as the marketing information collection was an obvious obstacle for the accurate forecast of the future, it is important to set up a marketing team in the four divisions. The target of the team is to collect the market share data of each product in previous years, the reasons for the up-and-downs of the market share, find out what kind of improvement will the target consumers need in the future, the scale of potential customers, and so on.With the detailed information of the market, it will be easier for the division to forecast the future sales and try to expand the existing market. Seventhly, it can be suggested, that for the first year when the changes were applied, the top management could set very realistic conservative targets in order to encourage employees and make them feel that the targets are achievable. Given the fact that the targets were not achieved for the last four years the employees got used to missing targets and became demotivated.In addition, given the fact that some divisions, for example Hermetite, experience current problems, flexible targets could be set, that would depend on certain conditions at a particular time. Finally, before taking a new decision about the changes, it could be helpful to organize the meeting with all division managers in order to announce them personally about the expected changes and gather some ideas from them about how to implement the new philosophy. Such brainstorming could help to pay attention to some important aspects from the bottom that top management was not considering.

Oedipus/Antigone Response

Annie February 19, 2013 Oedipus / Antigone Response 1. What factors contributed to Antigone’s downfall, and does the end of the play satisfy the audience’s demands for justice? There are different factors that contribute to the downfall of Antigone. Firstly, the fact that two of her brothers have been fighting to death for the throne has had a negative impact on her life. She has lost both of her brothers at the same time. Secondly, Antigone believed that her decision was following divine justice. For example, she once said to Creon â€Å"Your order was outrageous. And lastly, she has been arrested and put into a cave for following her sense of justice has led to the downfall of Antigone. Despite the fact that Creon has taken back his words and fix what he did, everyone has died and hence, the audience’s demand for justice is not satisfied. 2. Referring to at least three tragic elements, determine whether Creon or Antigone is the more tragic hero(ine). According to â€Å"Once upon a Greek stage†, we can determine that Creon is definitely the more tragic hero than Antigone via some elements: hamartia, hubris and catharsis.First, hamartia is basically when Creon suffered greatly because of his actions. That caused the lost of his family and the support of his country. Next, the tragedy concept of hubris is largely demonstrated through Creon. For instance, as the king of Thebes, the people all looked to him for the answer. This made him believed that he was always right and everything had to go in the way he wanted to: â€Å"I am King of Thebes, Antigone. I have a duty as a monarch. Moreover, he also believed that his decision was right in the punishing of Antigone, despite that fact that she was engaged to Haemon, Creon’s son. â€Å"A broken law is a broken law, and lawbreakers must be punished. Antigone will be no exception. † In this case, his sense of pride was the tragic flaw that led him to his downfall. At the end , Creon finally realized that his pride has brought everything down, and also was the cause of his family’s death. Comparing to Antigone, in the end of the story, she still did not realize her faults and thought everything she did was following divine justice.About Creon, he was able to realize his mistakes at least, and this showed the tragedy of catharsis. The moment when he lost his wife and his son, it responded the sense of pity. Not only that, the sense of divine justice performed when he announced burying Polynices. Eventually, the conflict of the play developed him to be the more tragic hero than Antigone. 3. What universal truth is discussed within the play â€Å"Once upon a Greek stage†, and what implications result from this message? The play â€Å"once upon a Greek stage† contains a couple of universal truths.The fight between two blood brothers for the throne points out that family may not always support each other. Furthermore, Creon, uncle of Anti gone, has acted cruelly to Antigone and Polynices; once again justify the truth above. Both Polynices and Eteocles have done wrong but only Eteocles was buried. It points out the universal truth that life is not always fair. It implies that sometimes, you might not get what you deserved, and that luck plays a vital role in life. In conclusion, â€Å"Drama is a fine way of teaching a universal truth. † – Aristotle.

Trek Bicycles Paper Essay Example | Topics and Well Written Essays - 1000 words

Trek Bicycles Paper - Essay Example We believe in a better world (TrekBikes, 2012). Trek Bicycles’ vision is to make the world a better place by using bicycles as a tool. Bicycles are the most efficient form of human transportation. Trek Bicycles’ vision is to contribute to making a world a better place as use of cycles will help to combat climate change, help people to be fitter, reduces traffic congestion, and has many more positive effects. SWOT analysis Swot analysis is an important tool that helps to carefully evaluate the opportunities and threats (external to the organization) of an organization along with its strengths and weaknesses (internal to the organization) (Griffin, 2011). Following is the Swot Analysis of Trek Bicycles Strengths Weakness Outside of China Trek Bicycles is the biggest bike company (Phillips, 2008). This is the company’s biggest strength. Trek’s main weakness is its poor understanding of customer demographics. It is unaware of who their core consumers are (John son, 2008). The company has established itself as one of the best bicycle manufacturers and suppliers with great innovative products, eco-friendly bicycle development, dynamic partnerships (Bikes Belong and Bikes Around the Community), efficient dealers and exceptional customer care (Johnson, 2008). Because of the great brand equity that the company has built, it has developed a very aggressive management style (Johnson, 2008). The brand image of the company is exceptional. Lance Armstrong has been instrumental in given the company a great brand image. By winning Tour De France 7 times he has contributed in demonstrating the quality of Trek Bicycles (Guffey & Loewy, 2010). The company also sponsors/funds other sportspersons and competitions. Human resources are also a major strength of the company. The employees of the company are driven and committed to working towards the company’s mission and vision. Trek Bicycles is mainly focused on the mountain bike segment. Unlike, its competitors it has not tried to dominate all segments of the bicycle market. This has helped trek Bicycles to specialise in a single key area. But Trek has diversified inside the segment to meet the requirements of different customers. It has also expanded into offering various biking accessories, clothes, training, road support, etc (Electric Bikee, 2011). Trek’s R&D has excellent capability. It manufacturers numerous products in broad product range that are affordable and it achieves this by effectively using its low cost manufacturers (Griffin, 2011). Trek’s green strategy is another important strength of the company that differentiates it from its competitors and gives a competitive edge. This green strategy not only

Jesus in the eyes of the American Jewish population in the 21st Essay

Jesus in the eyes of the American Jewish population in the 21st century - Essay Example A discussion of American Jewish attitudes towards Jesus can sensibly start with the small (but growing) sect of Judaism called Messianic Judaism which believes that Jesus was indeed the Messiah. Messianic Jews claim 47,000 followers and 280 congregations worldwide by the turn of the Twenty-First century (Kaplan, 2005). The idea that Jesus was the Messiah is seen as antithetical to the vast majority of American Jews. Kaplan succinctly states the problem that they have with the Messianic adherents: Christianity, which is perceived to be incompatible with any form of Jewishness . . . .Messianic Jewish groups are thus seen as antithetical to Judaism and are completely rejected by the majority of Jews. Thus Messianic "Jews" regard themselves as a culmination of Judaism rather than a branch of Christianity. Even their very claim to being Jewish has been rejected by nearly all Jewish denominations, organizations and the State of Israel itself. This is remarkable as Jews have been consistent throughout their history in being, as a whole, a tolerant religion used to adapting to various kinds of creed within their religion. The line that cannot be crossed, as far as most Jews are concerned, is regarding Jesus as the Messiah. It would thus seem that a majority of American Jews will not regard Jesus as the Messiah in the Twentieth Century, even though their Messianic brethren would claim this as a fact. The Central Conference of American Rabbis puts the situation in context: For us in the Jewish community, anyone who claims that Jesus is their savior is no longer a Jew and is an apostate. Through that belief she has placed herself outside the Jewish community. Whether she cares to define herself as a Christian or as a 'fulfilled Jew,' 'Messianic Jew,' or any other designation is irrelevant; to us, she is clearly a Christian. (Harris-Shapiro, 1999) Some have even related Messianic Judaism with an attempt to convert Jews, which is in reality an attempt to destroy Judaism through being a wolf in sheep's clothing. Or, to mix the metaphor, Messianic Judaism is seen as a Trojan Horse within this argument, designed to topple Judaism from within. Again, it is American Jews who seem to take this argument to its most extreme conclusions: ... Except in relations with Christians, the Christ of Christianity is not a Jewish issue. There simply can be no dialogue worthy of the name unless Christians accept - nay, treasure - the fact that Jews through the two millennia of Christianity have had an agenda of their own. There can be no Jewish-Christian dialogue worthy of the name unless one Christian activity is abandoned, missions to the Jews. It must be abandoned, moreover, not as a temporary strategy but in principle, as a bi-millennial theological mistake. The cost of that mistake in Christian love and Jewish blood one hesitates to contemplate. ... A post-Holocaust Jew can still view Christian attempts to convert Jews as sincere and well intended. But even as such they are no longer acceptable: they have become attempts to do in one way what Hitler did in another. (Fackenheim, 1987) (my emphasis) The idea that Christians trying to convert Jews to their religion, which often seems to

Jean Paul Sartre was a philosopher Essay Example | Topics and Well Written Essays - 3500 words

Jean Paul Sartre was a philosopher - Essay Example Nowhere is this more evident that in his one-act play, "Huis Clos." A dialogical exposition of the hellish nothingness which pervades three characters, "Huis Clos" does not simply emanate from within Sartrian existentialism but, may be defined as an enactment of it, with each of the characters therein personifying a particular aspect of this complex philosophical construct. Understanding "Huis Clos" and appreciating it as an enactment of, and metaphor for, Sartrian existentialism, necessitates identifying and defining Sartre's existentialist concerns and conceptualisations. Sartre' existentialist concerns and his perception of the human condition are, according to some critics, most concisely and precisely expressed in his Being versus Nothingness treatise.3 In L'Etre et le Nant, Sartre explicates his philosophical conceptualisation of human existence and the relation between man and himself, man and others and man and the environment within which he exists.4 Within the context of these relationships, man wavers between being and nothingness. Assuming that life has meaning, that the universe has some grand design, man is forever striving for meaning, convinced that he will attain being-hood once he has found meaning to his life. This quest is erroneously predicated on the belief that meaning, thus, being, is attained through others. Man believes his life acquires meaning, that he attains being-hood, from the positive perceptions and opinions that others may have of him. However, within Sartrian philosophy, this definition of being is nothing.5 Man's overwhelming predilection to define himself through the perception and opinion of others and his unwavering tendency to assume that he, accordingly, acquires being-hood, is inherently false. From the Sartrian existentialist perspective, it is false insofar as it assumes that life has meaning and creation has a noble purpose. Life, however, has no meaning and can only be defined as a void, as nothingness.6 Furthermore, the attempt to derive meaning, identity from the perception of others is a form of self-annihilation or a determined attempt to suppress the consciousness, or the authentic self. It is only when man accepts his authentic self, embraces nothingness, and realises that meaning emerges from within him, that he can acquire being-hood.7 Sartre's conceptualisation of being and nothingness is remarkably complex and if misunderstood, would seem self-negating. On the one hand, he claims that man lives in a void and that nothingness is the definitive feature of the human condition. He further maintains that the quest for being from without the self is futile.8 On the other hand, Sartre contends that the embrace of nothingness and the realisation of the void within which we live and which defines the human condition can lead to something. Not only that but he further asserts that once man realises that meaning cannot be imposed from without but, resides within the self, man can aspire towards being-hood. In this case, being is an outcome of the conscious realisation, and

Performance management and high performance working Essay

Performance management and high performance working - Essay Example Therefore, performance is the process which adds to the effective management of individuals and teams so as to attain levels of organization performance. In addition, performance management initiates a shared understanding about what is to be attained and a vital approach to leading and improving peoples’ skills that will ensure achievement of company’ objectives (Foster, 2008). Therefore, performance management is a strategy which is related to every activity of the organization set up in the perspective of its human resources culture, policies, style and communication systems. The character of the strategy majorly relies on the organizational context and is dynamic from one organization to another. Consequently, the way in which employees are managed at work place tends to make a big difference in organizational performance (Jesuthasan, 2011). In today’s organizations, there is considerable evidence that a coherent style to manage people provides the foundation for significant gains in performance. Recently, a modern approach to manage organizations has cropped up that places employees and their skills at centre stage. This approach is referred to as high performance working. ... In addition, there should be fair treatment for individuals who leave the company as it changes and engages in the demands of the external community thus showing trust and commitment based on relationships within and outside the organization. A high performance working entails embracing greater employee involvement in order to achieve high levels of performance. The correct dimension this takes varies, however it entails activities in human personnel management for example, appraisal, workforce development, pay and incentives (Jesuthasan, 2011). It also involves work organization such as job design and team working, employment relations, management and leadership activities encompassing strategic management and business advancement as well as line management and organizational development. In high performance work places, all of these practices and policies are underpinned by a philosophy of individuals’ management that emphasizes on learning participation and autonomy. Many o rganizations have already initiated a high performance working approach and are harvesting the fruits of doing so, otherwise for those who have not; it can sometimes seem an expensive and discouraging possibility (Foster, 2008). In spite of the proven gains, the perceived difficulty of enhancing such comprehensive transformation can be a real obstacle. Skill utilization involves maximizing the contribution that individuals can make in the work place and the level of which people’s abilities have been deployed, developed and harnessed optimizes organization output capacity. Whatever takes place at work place is thus considered crucial to utilization of the available skills and this justifies why various organizations should run to achieve a high performance working (Foster, 2008).

Published opinion of Rosa Brooks from Los Angeles Times analysis Personal Statement

Published opinion of Rosa Brooks from Los Angeles Times analysis - Personal Statement Example Because as economists put it, when US cough, the world catches cold. The recent years have seen the stronger and tighter relations among nations as they open up their borders for freer trade through the formation of trade blocs and regional partnership. Aside from local produce, most of the consumers' income in US is spent in cheaper imported goods coming from Asian trading partners like China, Philippines, Malaysia, and Thailand. These nations have long been the biggest trading partners of US and have long benefited from the strong demand in our country. With the technological development, services have also been imported from these nations as well through business process outsourcing. So, with these nations heavily dependent on US partnership, it is irrefutable that the economic recession in our country will also bring about slowdown in other smaller and less stable economies. On the other hand, the collapse of Lehman Brothers is also expected to sabotage growth in the Eurozone. So, it's not just the US which should be given with this letter and th e much needed economic assistance from IMF and WB.

Financing and management of risk Essay Example | Topics and Well Written Essays - 1500 words

Financing and management of risk - Essay Example The Post Office Ltd. and General Logistics Systems are wholly owned subsidiaries of Royal Mail Group. Post Office Ltd. runs the post office counters and the General Logistics Systems is a global logistics company. The company employs around 2 lakh people working for the organization with a net income of ?300 million. Royal Mail has a network of around 14000 post offices. The network of Royal Mail distributes millions of letters and parcels everyday all over the world. The Royal Mail services include collection of mails and letters from all parts of the world and distribute the same to the respective postal addresses. The letters are posted by the senders in the wall posts which are collected everyday and despatched to the communication addresses. The first class deliveries take one day’s time to reach the address of the receiver. On additional payments, there are special deliveries to the receiver that reaches by 9 a.m. or 2 p.m. on the next day. Royal Mail also has provisions for insurance of the items sent to the receiver. In case the receiver is not present at the time of delivery, an information card is left for the receiver to be noticed. The special deliveries are used by the business houses, small businesses and consumers for prompt deliveries and insurance covers are taken for protection of the items sent by post. Royal Mail also runs a business mail service separately which offers provision for the business houses to send letters, parcels and items at reduced price. The network of distribution for deliveries consists of large fleet containing 40000 vehicles on the road along with the operation through air and rail network throughout day and night. The mails are collected from the wall boxes and collection points, sorted and delivered to the recipients. The various stages of the network through which the delivery is done include collection of mails in major three mail centres which are then passed to the network hubs where it is sorted and delive red across various parts of the country. The collection and delivery services vary according to the requirements and volume. The network of collection and delivery is finalised according to the work plan and targets of operation. Evaluation of risk exposures of Royal Mail The risk exposure to the operations and business environment of Royal Mail could be understood by analyzing the operational issues faced by the organization. Despite maintaining a large fleet for its operations, there are several risks faced by Royal Mail services depending on the location of collection and delivery, time of operations, existing infrastructural issues, etc. The operations of the Royal Mail pertaining to services for collection and delivery of post are carried out in areas which involve huge traffic congestion. Heavy traffic conditions in the localities affect the time of delivery of the postal service. Due to the existing local conditions, the company bears the risk of delay in delivery of items de spatched. The collection and delivery services of Royal Mail from the heart of the city and other localities occur at congested situations during peak traffic conditions. The fleet of workers who are responsible for collection and delivery within the stipulated times face tough operating conditions in order to meet the deadline or

Six Keys to the Arts Essay Example | Topics and Well Written Essays - 2250 words

Six Keys to the Arts - Essay Example Standard visitors can be bored or not get interested due to the readings or educational content in a museum, consequently, a museum should promote enjoyment relatively to learning. This is because; such category of the museum can be designed to be visually stunning by obtaining interactive events or even games in the section of its exhibitions. A person should focus on education by concentrating on exhibition to try and teach people about things that they do not know. More often than not, the history included in the museum. To promote cultural competent, as well as, linguistically necessary exchanges there must exist collaboration among families, professionals, students, and communities. Where these collaborations encourage equitable outcomes for all students and result in the identification and provision of services that are responsible for issues of race, culture, gender and social, economic status. Anthropology is all about the scientific study of human culture as well as their biological relation. It tries to define what human beings are, by either through historically, socially, and biologically. Culture has been defined by a wide range of behavior patterns and knowledge learned and acquired by a society of people. One of the institutions that promote culture is museums, where cultural sensitivity in museums is attributed to main race, age and color. Some of the cultural conflict experienced in museums includes information about divergent roles of women in family decisions as well as practices and symbol systems among cultural groups. Museums are institutions where the core values of a culture are acquired. Such institutions can determine one’s culture through educative and historical narratives, where museums personnel have the responsibilities of making instructions that is culturally responsive to all students without favoring one group over the other.  

Communication and Children Essay Example for Free

Communication and Children Essay Parents are among the earliest person that are in contact and always stay by the children’s side and thus there are many saying that parents are the first teacher of the children. Since children start from zero from the day they are born, they will start to learn something new by watching the adults and imitating them. Example that can be given is when a baby first learning to talk, they will imitate what the adults are saying. The first word that usually teaches by the parents is either papa or mama and the baby then will imitate the word. This is how the children first learn to talk and same goes when an adult is cursing others, they will also recording the words used. Next, children can be said as a mirror that will reflect back what they observed. This can be seen by the conduct of the adults that watched by the children. They will simply copying the conduct as children do not know to differentiate between right and wrong. Example that can be given is when a child observing his father acted violently towards his mother in their house and he will then do the same to others. Some cases reported saying that a violent man or woman usually had experienced those situation since their young age. People will normally hard to change their habits, especially one that they learned from their childhood. An example that can be given is when the adults around the children are smokers or alcoholics, these bad habits usually will be tried by the children when they have access to that stuff. Nowadays the stuffs can be easily be bought even by a minor from the convenience stores such as 7-eleven and other stores. Same goes to good habits such as reading, appreciating others and also helping those needed. When a child used to follow their parent doing charity work, they will never feel hard to help others. Thus it shows that children learn best by observing the adults. In the other aspects such as foods or fashion, and also in respect of their thinking, adult give many influence in these matters. The behavior of adults can give good and bad implication to the children. This is because children always observes what the adults are doing. When an adult wears sexy dress, they will do the same since they used  to see and did not know it is actually wrong. Same goes to the thinking, adult usually ask the children what to do and not to do but sometimes the adult will do to the contrary. This will make the children think whether to do something or to follow what the adults are doing. As the conclusion, it is strongly agreed that the children learn best by observing the behavior of the adult since th e children was born zero and the adults who are the nearest person in contact with the children are those who responsible to teach everything and shape the children. [ 500 words ] 2) What do schools need to do to prepare students for the 21st century? Discuss your opinions. Year 2000 to 2100 is known as 21st century where the society also describes the period as a modern era especially in technology. In order to make sure that the teaching and learning session in this modern era running smoothly as well as to make sure the student may adapt themselves with the era, there are a few steps that the schools need to do in order to prepare the students. The first thing that the school can do is by introducing the technology to the student. In the 21st century, almost all business in our daily life needs the application of technology. Thus in order to prepare the student with technology application, the teaching and learning process can be done using various gadgets such as computers, iPad, projector, netbooks and others. The use of textbook is no doubt still relevant but by using the modern gadgets, the session of teaching and learning will be more adventure and interesting. Next, the school may prepare the student in the aspect of creative thinking and problem solving. In the 21st century, there will be more competition in life thus person will need critical thinking and problem solving skills to survive and compete with others in all aspects. In order to ensure the students own this skill, the school may start by providing or training the students with problem based question. In this session, the students will need to creatively think for the solution to the situation, thus this exercise will boost or force their mind. In respect of communication, there are two kind of communication, either oral or written  communication. Both types are important of all time, including in 21st century, where the communication will be more fast and easy in this modern era. In the development of various types of gadgets, communication between people seems to be easy since we can contact people from all over the world. The school may train the students in both types of communication so that they will be ready to communicate with almost everyone. The students need m ore practice so that they can communicate confidently and perfect. Practice will make perfect. The other skill that the student will need in 21st century is the ability to work with others. This is because although there will be competition in getting something but there is still the need of cooperation to fulfill some task. Example that can be given is in an organization where teamwork is something necessary to fulfill the organization’s goal. Thus, the school may engage students in collaborative groups to conduct investigations, discuss and share learning, and create products that demonstrate what was learned. This will ensure that the students may cooperate with one another in order to produce what their group’s plan. There are many things that can be done by the school to prepare the students to go through 21st century other than discussed above. Students will easily adapt the 21st century with the help of the school’s programs, plans and exercises. [ 500 words ] 3) Technology is making communication easier in today’s world, but at the expense of personal contact as many people chose to work at home in front of a computer screen. What dangers are there for a society which depends on computer screens rather than face to face contact for its main means of communication? People nowadays prefer to communicate through technology more than face to face and this can be seen almost everywhere. People are busy with their smartphones gadgets although they are sitting together with their family members or friends. Everyone are busy texting, calling, updating their social account such as facebook, twitter, instagram, wechat, and may other modern applications. Although there are many benefits from these  applications but still there are bad effects to the communication. One of the effects is that people will have lack of communication skills where when they always communicate through online medium, they will have no ability or lack of skills to speak face to face with others. They will also will hard to differentiate on how to talk or handle different level of person such as in formal or informal occasion. Communication skill is one of the interpersonal skills of a person and this is one of the most important skills that one’s should have. Next, the person who always depends on online medium of communication will have the problem of lack of confident level. This is because in online medium communication, the person will not need to meet the person to communicate but face to face communication will need the person to meet with others. When someone who has no experience in face to face dealing with others, they will have the problem with their confident level especially someone who has the nervous attack problem. Thus when they need to communicate face to face, usually the deal will hard to be accomplished. The other effect is the technological communication is it may affect the ability to express someone’s ideas clearly. When someone are constantly using short forms and slang while texting or in others online medium communication, it is hard to remember to use proper grammar when they need to write formal emails, letters or papers. Technology may harm the communication skills at work and in school since it may degrading the ability to speak publicly and in writing formally. Sometimes the person will not realize that they are using short forms in their formal works. Technology may also harm our ability to deal with conflict. This can be seen from a situation where we have a fight with our friend, we can just send them a text message or Facebook message to tell what is wrong rather than confront them face to face. Sometime, a personal issue will become a big issue when the problem is posted through the social account with the interventions of others. Many people in society are beginning to take it as an easy way out when it comes to conflict. Although modern technology brings a lot of pleasure in our life but it also may bring harm to us. Instead of having a pleasant conversation with our family, friends or significant others, we are busy to focus on our computer screens. This will not only harm the skills but also will create a distance with our family and friends. [ 500 words ] 4) In your life experience, what is the best advice you have ever received? Advice is given to remind someone what they should do or what they should not do in their life. Usually an advice was given by someone to the person that they care such as by parents to their child, by friend to another friend, and by a teacher to the students. People may receive the advice and translate it according to their understanding. It may be used as guidelines in someone’s life. The best advice that I ever receive is from my parent where they remind me to never give up in whatever I am doing. In my understanding, the advice may be used in many situations. The first situation is during my study, where until now I am still struggle to get the highest education that I am capable to achieve. Although I admit that there are hard times during my study especially in dividing time between work, family, and study but the advice given by my parent are inspiring me to do my best. When I feel stressed during my revision or when I need to faced timeline to send my assignment, the advice keep on playing in my mind to make sure that I will always success in what I am doing. Next, the advice of never give up is also inspiring me in my marriage life, where as a wife and mother who is working and in the same time studying, I feel the pressure but when remembering the advice, I feel strong. I manage to fulfill my responsibility towards my husband and children. I will never give up in fulfilling my responsibility towards my family. I keep reminding myself to stay strong so that I can take care of my family members wherever they need me. In working, as one of the subordinates there will be a lot of pressure given by the employers or high ranking officers. Advice given by my parent is the inspiration for me to be one of the courage and highly motivated staff. I keep on reminding myself not to give up when given many task and always stay calm in facing the situation. In my work, I have to deal with the public, from various levels of life, attitude and race. Thus I have to always give my best to help them although sometime I have been cursed by them but it is my responsibility to give the best service to the public. The advice of never give up given is suitable to use in every single inch of life. It can be regarded as inspiration for us to always do our best in whatever we are doing in life. Giving up is not a mean of facing any difficulties in life since if we give up before giving our best, we will never know what we actually can do, our ability to face any conflict of life. Once we manage to settle any conflict rose in our life, we will feel the satisfaction and we will feel stronger. [ 500 words ] 5) Tourism is becoming increasingly important as a source of revenue for many countries but its disadvantages should not be overlooked. What are some of the disadvantages of tourism? Tourism in a country happens when the outsiders or people who live in other countries come to visit our country. In tourism, the people who come will be call as a tourist and they will usually visit interesting places in a country either because of the custom of the place visited such as village, beauty of that place such as island around Malaysia, or maybe because they like the weather or activities at that place. Although tourism is one of the source of revenue to our economy but it also may bring some disadvantages to us. One of the disadvantages that can be identified is from the aspect of criminal, where there are many criminals happen with the entrance of the tourist. Some of the tourist will come using the social visit pass into the country to do crime such as black money, drug trafficking, prostitution and some others. Many cases reported that all the crime was done by the outsiders who came as a tourist in Malaysia and this will ruin our Malaysian. The other disadvantage is the attire of the tourist that comes to Malaysia. In their country they are free to wear anything that they are comfortable with but in Malaysia there are many attire that they are wearing is not suitable and it can be regarded as not respecting the local’s tradition and customs. Further, there are Malaysian who already influenced by those attires and they start to wear just like the tourist. In Malaysia, there is ethnic’s sensitivity to be respect by the tourist especially Muslims citizen’s sensitivity. Next, in respect of social life, the tourist that come are from different type of religion, for them it will be not an  offence to mix between genders but in Malaysia it is indecent to do it especially in public. In some cases, there are tourists that invite the beach boys to their chalet to accompany them. For the villagers nearby it is wrong and may ruin Malaysian. It is not right for the tourist to do such things in other’s country. Further, since many places have been upgraded to be tourism spot, ma ny things are changes, including prices of goods and services. The local traders are increasing their goods and services price since the place is now full with the tourist and it is the time for them to get more profit in their business. This has led to the local to also suffer the expensive price of goods and services. In addition, the local needs to compete with the tourist to get a place in the public transport and also if they are going to a vacation with their family. The tourist are everywhere and usually in getting a place in the local chalet or hotel in the tourism spot, the tourist will booked months before their vacation but the local will only booked their place in less than a month. The local needs to compete with the tourist although this is their own country.

Accounting Essays Tax Evasion Popularity

Accounting Essays Tax Evasion Popularity Tax evasion is a national pastime that is growing ever more popular. Nick Montague defines taxation as the means by which a civilised society performs that sometimes-uncivil task of taking money from one group in order to give it to another. This definition highlights an important purpose served by taxes. As it is already known, that taxes are a fiscal policy instrument used by the government to achieve broad macroeconomic goals. Generally speaking, taxes are a means used by the government to provide its residents with amenities and facilities like hospitals, safety and education. Thus, any shortage in revenue means that the people wouldnt be able to avail the benefits. From this perspective, as law-abiding citizens, it is imperative for people and corporations to pay taxes. Despite, this common knowledge, tax evasion is prevalent in the society, even worse, individuals and corporations go through great length to devise tactics of evading taxes. The main reason why individuals and corporations engage in tax evasion activities is that it increases the level of disposable income and profits respectively. Tax evasion is defined as the failure to meet tax liabilities by illegal action, such as not declaring income. Needless to say tax evasion is a criminal offence. Prior to starting a discussion on tax evasion it would be essential to briefly highlight that in the UK, tax administration is divided between two departments of state, the Inland Revenue and Customs and Excise. The Inland Revenue administers Income Tax, Corporation Tax (on company profits), Capital Gains Tax, petroleum taxation (relating to oil exploration and extraction in the UK and surrounding waters) and Stamp Duties (e.g. on land transactions). The levying of VAT, tax on gambling and customs and excise duties is the responsibility of the Customs and Excise Department. In addition to these two revenue departments, local authorities levy the new Community Charge (poll tax) and the Department of Social Security is responsible for national insurance contributions. Often tax evasion is confused with tax avoidance. According to Denis Healey, former UK Chancellor of the Exchequer: The difference between tax avoidance and tax evasion is the hickness of a prison wall. This paper will aim to present an in depth analysis of why individuals/companies engage in tax evasion. It will also analyse whether the self-assessment system encourages or discourages tax evasion. And, finally the paper will conclude by evaluating the efforts made by the government to combat tax evasion. It must be highlighted that taxation is used for many other purposes than raising revenue. Some writers have argued that the purpose of taxation can also be seen as an instrument of economic and social policy to influence behaviour. In other words, it can therefore be the intention of the tax that it is avoided. For example, it has been argued that higher taxes on alcoholic drinks (Cook and Moore, 1994, Irving and Sims, 1993) and tobacco (Viscusi, 1994) would reduce the consumption of those products and lead to improvements in the health of the population. In the UK, Inland Revenue has, traditionally, had a deferential approach towards income. With the introduction of self-assessment system from 1996/7 there has been a movement away from that stance in recent years. Evasion of taxes Tax evasion analysis typically assumes that evasion involves individual taxpayers responding to some given policies. However, evading taxes could require the collaboration of at least two taxpayers. Detection depends on the costly avoidance activities of both transacting partners. An increase in sanctions leads to a direct increase in the expected cost of a transaction in the illegal sector, but it may also increase the incentive for the partners to cooperate in avoiding detection. The total cost of transacting in the illegal sector can fall, and tax evasion may increase. Most countries tend to follow a progressive taxation system, more the income more tax would be levied. From this perspective it might appear that it is unfair for the government to levy more taxes on individuals/companies for generating more income for the economy and themselves. However, it must be a noted that in addition to boosting the economy, it is governments responsibility to think about economic development and welfare of everyone. They have to balance economic growth and economic development. This concept has been debated and the viewpoint of unfairness of the tax system has led parties to evade them, in other words, discovering ways and means of not paying the dues to the government. Research studies conducted to find out the extent of the UK black market economy indicate that it has increased. The number of unincorporated business accounts and company accounts received annually by the Inland Revenue have increased from 2m to 2.25 million and from under 600,000 to nearly 700,000 respectively between 1984/85 and 1988/89 alone (Inland Revenue, 131st Annual Report, 1989). Surveys conducted by Brown, Levin, Rosa and Ulph (1984) concluded that about 5% of workers in Britain held two or more jobs and that the income tax lost from second job tax evasion probably amounted to around 1.1% of income tax receipts or 0.3% of national income. Their survey excluded evasion by persons who have only one job (which includes large numbers of the self employed), Capital Gains Tax and VAT evasion, and evasion of tax by companies. In response to deterring people from engaging in tax evasion, Inland Revenue introduced the self-assessment system, very simply, is a way of working out and paying tax. As required by the Inland Revenue (IR), self-employed people, company directors, minister of religion are required to fill up the self-assessment form at the end of every tax year. Supporting documents are provided to make it easier for the people to fill up the form and submit it. With the improvement in technology, IR offers business services for employers, individuals, contractors, companies and agents, option to fill up the forms online, which ensures automatic tax calculation, quicker repayment, and online acknowledgement which is safe and secure. Thus, IR is removing any possibility of hassle and introducing the convenience factor to make people comply with the tax requirements. Many initiatives have been taken to combat tax evasion. In the UK, for instance, attempts are being made to increase co-operation between the Inland Revenue and Customs and Excise. This has involved joint policy consultation and improvements in exchanging information. One particular initiative has been to set up a joint unit to provide a single source of information and advice for businesses facing financial difficulties and who wish to enter into voluntary arrangements. A step in this direction has been that of the European Union Savings Directive. It aims to counter cross border tax evasion by collecting and exchanging information about foreign resident individuals receiving savings income outside their resident state. The Government believes that exchange of information between tax authorities is the best way to ensure that individuals pay the right amount of tax on cross-border income from savings. The Government therefore supports the Directive, the ultimate aim of which is effective taxation by exchange of information. The above is a major step towards decreasing evasion of tax. The above highlights the importance of transparency in accounts and benefits of sharing information across the countries. Introducing VAT was also an attempt towards tax harmonisation and making it more difficult for companies to evade tax. The recent scandals of Enron and Parmalat have highlighted the importance of having transparency. VAT was introduced to combat cheating, smuggling and minimise tax evasion. The same principle was behind harmonising VAT in the EU one of the advantages was the limited possibility for fraud in the supply chain. However, it was found that VAT system was used to systematically defraud tax administrations. Despite the efforts made to minimise tax evasion, fraudsters have detected the inherent weaknesses that exist in the controls exercised and have been exploiting those weaknesses for their own financial gain. It was found that with the introduction of the VAT and intrastate system, compliance costs had been reduced by approximately two-thirds. It is a known fact that taxes in any form, whether direct or indirect, is a source of revenue for the government. Government tends to use tax money either from individuals or businesses to fund various country development projects and work towards providing a better living condition to its citizens. While this is an idealistic picture about the motive of the government, in reality, people tend to evade taxes for many reasons. It has been a subject of constant debate to find out the best measure or basis for taxation and the latest taxation system for indirect tax is the consumption base. It has been argued that it would more suitable to charge taxes based on the consumption made. VAT is the tax system which follows the above mentioned tax base. The purpose was not only to curb tax evasion but also be an efficient model for taxation. The European model of the VAT system has been applauded and adopted by many countries as it is a common belief that VAT system based on the European mode l provides least possible way of evading tax because it has a system of invoicing which helps in establishing an audit trail. Authors like Cnossen have listed the various advantages associated with the following the VAT system. Amongst other things, to ensure that tax evasion is minimised, the government needs to look into improving tax compliance. The following pointers were suggested to improve tax compliance: Training employees so that they have an understanding of the entire system of tax administration. There should be better publicity about how the tax system works, the benefits derived from complying with the tax system and how the IRS deals with abuses of the system. Making the procedure automatic to eliminate any possibility of reducing unscrupulous practice. Simplification and fairness is required because continuous changes and complexity in tax law have a negative effect on compliance. Also the law should be applied consistently. Organisational structure should be arranged so that taxpayers issues or problems can be resolved through a single point of contact. There is also a need for specialisation so that expertise of particular industries may be developed to improve dealings with taxpayers and there should be better customer service. Better and increased cooperation with state, local and foreign governments is required to tackle the problem. More assistance should be provided for small businesses to help them comply and increase their awareness levels. Coordination of compliance efforts would be required and incentives must be provided when people comply and penalties must be imposed when people evade taxes. A more organised approach to influence legislation A sense of responsibility must be inculcated in the people towards taxes. It is easier to get something done when people take responsibility towards it. Inland Revenue faces problems to tackle the problem due to shortage in trained tax inspectors, reflecting the departments more general difficulty in recruiting and retaining staff. Research studies conducted in this area have indicated that people tend to move towards the private sector where pay and conditions are perceived to be better. The department believes that the situation can only improve when there is more political commitment in Government to tackling evasion, supported by the allocation of the necessary resources to pay inspectors competitive salaries. Conclusion In summary it can be said that though steps have been take to minimise tax evasion yet it exists and continues to exist. Despite the efforts made towards curbing it, there will always be elements in the society who would come up with mechanisms to defeat the system. The challenge therefore lies in keeping up the efforts to minimise tax evasion. As individuals taxes must be paid accurately and as corporations ethical business practices would ensure that illegal activities like tax evasion could be kept at bay. Thus in conclusion it can be said that even though tax evasion appears to be a national pastime that is growing ever popular, measures are being devised to combat it. BIBLIOGRAPHY Melville, A. Taxation: Finance Act 2004, 10th Edition, (2004), Financial Times, Prentice Hall, London El-Agraa, A.M., The European Union Economics and Policies, (2001), Sixth Edition, Prentice Hall. Gwartney, J.D., Stroup, R.L., and Sobel, Russell, S. Economics Public and Private Choice, (2000), Ninth edition, Dryden Press JOURNALS AND ARTCILES Agha, A. and Haughton, J. (1996), Designing VAT Systems: Some Efficiency Considerations, The Review of Economics and Statistics, Vol. 78 (2) pp 303-308 Joumard, I. (2001), Tax Systems in European Union Countries, OECD Working papers ECO/WKP(2001)27 Nam, C.W., Parsche, R. and Schaden, B. (2001), Measurement of Value Added Tax Evasion in Selected EU countries on the basis of National Accounts Data, CESInfo Working Papers 431. Ohsawa, Yoshiaki (2003), A Spatial tax harmonisation model, European Economic Review 47, pp 443-459 Scabrosetti, S. (2002), Tax System and Reforms in Europe: France, Societa Italiana di economica pubblica, Working papers 186/2002 Shoup, C.S. (1957), Some distinguishing characteristics of the British, French, and United States Public Finance System, American Economic Review, Vol. 47 (2) pp 187-197 Verwaal, E. and Cnossen, S (2002), Europes new border taxes, JCMS Vol. 40 (2), pp 309-330 Entrepreneurship and Growth: Tax Issues, (2002) Directorate for Science, Technology and Industry. OECD. Indirect Tax Treatment of Financial Services and Instruments, (1998), Report of the OECD