Advantages and disadvantages of increasing interdependence and interconnectedness

Advantages and disadvantages of increasing interdependence and interconnectedness Since the 1970s the globalisation of finance has made the economic fortunes of states increasingly interdependent. Until relatively recently international finance was still considered principally to be an adjunct to trade (McGrew, 2007), a necessary mechanism that enabled the exchange of goods and services at the international level. Its phenomenal growth over the past few decades has shattered this perception. Today the global economy is characterised by the sheer volume and velocity of international financial transactions. Average daily turnover on traditional foreign exchange markets increased from $15bn in 1973 (Gilpin, 2001) to $3.2tr in April 2007 (BIS, Sep 2007). While the successes of financial liberalisation include lifting millions out of poverty in China, East Asia, and elsewhere, and improving the developing worlds access to markets, its failures have also been stark. Various crises of the 1990s showed that problems in one country or even a particular industry can fast become global. The recent financial crisis of 2007 has again generated discussion at the normative and theoretical level about the contemporary global financial architecture, its widely perceived benefits, and its increasingly evident costs. The increasing significance of the global financial system over the past two decades has been mirrored by a surge of interest from the academic field of international political economy. Its effects are now so far-reaching that commentators have drawn connections between international financial integration and such diverse developments as social turbulence in East Asia, monetary union in Europe, and failed development strategies in Latin America (Pauly, 2005). Most of this literature, however, tends to focus on specific aspects of financial globalisation, such as its implications for national economic policy or the power of transnational corporations (TNCs). This essay intends to broaden the debate, to demonstrate the apparent paradox of international financial integration while it has made states, economies, firms and individuals more intimately interconnected than ever before, it is an inherently divergent process. It will argue that the international financial system is increasingly producing a global dichotomy. The benefits of financial integration, in the main, accrue to capital-rich states and the owners of capital, those free to move their resources around the world to seek the highest returns. Developing states, and those without control of capital resources, while receiving less of the advantages of integration, are more adversely affected by its disadvantages, such as contagion and capital flight. The first section will discuss the evolution of the contemporary global financial system, and how it came to be in its current form. I will argue that advanced industrial states, following a neo-liberal paradigm of liberalisation, facilitated the deregulation and increased interdependence of the financial system through political actions. However, it has been technological and market innovation that has accelerated and expanded this interconnectedness to an unprecedented level. These origins are key to understanding why capital-rich entities are better equipped to reap the benefits of financial integration. The next two sections will put forward the principle advantages and disadvantages of this integration. The following section will provide an analysis of these, contending that the capital-poor gain less of the former, and are more exposed to the latter. The concluding section will summarise this argument and touch on its implications for the future of the global economy while glo balisation promises universal benefits, these cannot be realised under the current system, which precipitates a global dichotomy between the capital-rich and the capital-poor. Origins of the contemporary global financial system As Benjamin Cohen (1996) suggests, little consensus exists concerning the causes of financial globalisation, and many scholars have attempted to apply their own structure to the study. The critical contribution to the debate comes from Eric Helleiner (1994), who persuasively argues that the globalisation of finance was advanced by the political decisions of major states. Helleiner also, however, neglects the exponential effect that technological and market innovations have had on the financial system, a factor considered key by others such as Cerny (1993) and Strange (1998). Political actions by leading states have enabled the globalisation of finance since the 1970s. By far the most significant was the abolition of capital controls, firstly by the USA and the UK, and then other major economies. As Goodman and Pauly (2000) suggest, liberalisation became and continues to be a competitive practice, and other countries had to react to prevent mobile domestic capital and financial business from migrating abroad. By the 1990s an almost fully liberal pattern of financial relations had emerged and today market actors experience freedom in cross-border activity unparalleled since the 1920s (Helleiner, 2007). International capital mobility is the most significant, and defining, characteristic of the global financial system. It has created many of the advantages and disadvantages associated with integration, and has also been instrumental in creating and sustaining the global dichotomy. The embracing of a new neo-liberal economic ideology among the major economic powers in the 1980s was key for the international financial system, which was given a large boost by plans to remove the state from the economy and allow the market mechanism to work (Soros, 1998). This theory was less sympathetic to the Bretton Woods ideal that national policy autonomy had to be protected, and was content to let the markets impose an external discipline on governments pursuing not sound policies (Helleiner, 2007). Financial liberalisation has been successfully institutionalised as a component of several multilateral agreements (Eichengreen, 2003). As early as 1976 the USA successfully lobbied for a change to the International Monetary Funds Articles of Agreement so that the new official goal of the Fund was to preside over a regime that facilitated the free exchange of capital between countries (Watson, 2007). This regime, however, has been deepened and broadened to an unprecedented extent by technological and market innovations. The volatility of prices and exchange rates in the 1970s led to phenomenal growth in the derivatives market, particularly after the emergence of an over-the-counter (OTC) derivatives market in the 1990s. In 1990 OTC contracts totalled $3.45bn, which had risen to $18tr in 1995 and $24tr by 1996 (Strange, 1998). These new financial instruments involved an initial outlay only a fraction of the notional value of the contract, giving banks and other TNCs the means at relatively low cost to hedge themselves against losses from unpredicted changes in exchange rates, interest rates, and commodities. Huge advances in computing and telecommunications over the last thirty years have been central to the huge volume and velocity of international financial flows (Held et al., 1999). Before the 1990s only data could be exchanged instantly between corporate offices and banks. The rise of the Internet meant opinions and rumours could also be traded, contributing to dangerous fluctuations but increasing interdependency. International banks and firms transfer huge amounts of money quickly and safely due to automatic clearing systems. In 1995 the USAs Clearing House Interbank Payment System (CHIPS) became the largest international clearing system processing some 200,000 transactions a day (Strange, 1998). Today CHIPS, and its state-run competitor Fedwire, clear an average daily value of $1.5tr (CHIPS, 2010) and $2.5tr (Fedwire, 2009) respectively. The root causes of the globalisation of finance are crucial to the understanding of its advantages and disadvantages, as it is evident that major states initiated the process because of the benefits it promised to them and to the rest of the world. It is also clear that innovation in both technology and markets has accelerated the process, making the benefits more pronounced for those involved, while also increasing the potential costs. The advantages of integration The advantages of increased interdependence and the expansion of the global financial system are often championed by international institutions, politicians and international business leaders. At a fundamental level, the benefits cited are backed up by economic theory, that which is at the heart of the neo-liberal paradigm of international finance advocated by many of the worlds economies. It holds that markets allocate resources in socially desirable ways. Flows from capital-abundant to capital-scarce countries, on the assumption that the marginal product of capital is higher in the latter than the former, increase welfare on both sides (Eichengreen Mussa, 1998). International financial transactions allow economies experiencing business-cycle disturbances to smooth the time profile of consumption and investment. Free capital movements thus facilitate a more efficient global allocation of savings and resources to their most productive uses. An advantage of the expansion of the financial system advocated by the global financial institutions is the convergence of national policies. The neo-liberal programme holds as desirable the homogenisation of national policy across state boundaries. The freedom of capital is said to have enabled the European Unions single currency, tax harmonisation across national borders and the international convergence of macroeconomic policy (Frieden, 1991). This, the argument goes, is good for eradicating instability in the global financial system. The incentive for resources to evade controls and regulations is lessened if national regulations are homogenised. The problem with this argument, however, is that capital mobility breeds a competitive environment between emerging economies for investment, which will be discussed below. Some international firms now command more resources than many states (OBrien, 2005). For these firms, the development of the contemporary global financial system has brought two huge distinct advantages: higher returns on their investments, and the ability to diversify risk internationally. Higher returns have been produced by two factors the inherent volatility of the system, and the greater opportunity to exploit it. Firstly, the inherent volatility and uncertainty of the financial system leads to higher returns for investors. Firms are able to trade on the volatile prices of currencies and commodities. With vast capital resources huge sums can be made very quickly with even small fluctuations on international capital markets. The best example of how capitalists gain from this volatility is the benefit that many manage to take from the systems crises. Currency trader George Soros is alleged to have made  £1bn from the devaluation of the British Sterling in 1992. Private companies are also said to have benefitted from the Asian financial crisis of 1997. Stiglitz (2002) argues that the intervention of the IMF, a Western-backed institution, ensured that Western firms were paid back their loans, while numerous national firms in Asia were left to collapse. Most of the $ 55bn the Mexican government owed following its 1994 crisis was to private creditors (OBrien Williams, 2007). The nature of the financial system means that investors can pull money out of a currency virtually instantaneously, and move back in after a collapse making a handsome profit. This leads to self-fulfilling prophecies of currency speculation, discussed below, but the investors are protected from most of the risk involved, whereas the economies concerned can suffer decline for years. Secondly, with the opening of countries capital markets, the opportunity for investment has increased substantially. Banks, hedge funds, and international manufacturing firms have all benefitted from having a much larger global market to do business in. With the ease of transferring financial resources to emerging markets and new host states, TNCs have access to a mass global pool of cheap labour. This capital mobility means governments all over the world have to provide more attractive conditions for companies, from low capital gains tax to relaxed financial and labour regulation (Frieden, 1991). Emerging economies, deemed to be high risk, must offer attractive interest rates to attract investment. There is constant competition between economies for foreign direct investment with which to finance development, meaning better and better business environments for investors. The key advantage for the capital-rich entities is that while gaining from the volatility and uncertainty of the system, they can also protect themselves against it. Modern financial markets operate to allow risks to be packaged and redistributed so that actors can hedge against specific risks like exchange rate fluctuations (Held et al., 1999). High-risk investments yield high returns, but if these investments do not yield, investors are protected by the profits from investments elsewhere. Market innovations such as options, futures and swaps even help protect investors from future fluctuations. There are also huge advantages associated with the development of the global financial system for less-developed countries (LDCs). The economies of East Asia, China, India and others have shown what can be achieved utilising international investment. Millions have been lifted out of poverty, economies transformed to industrial powers, and their national firms compete at the global level. These developments have been enabled by the crucial advantage of interdependence to smaller economies, access to financial markets. The opening of financial markets, as Jeffrey Frieden (1991) suggests, has strengthened labour-intensive industries, in which developing economies have a distinct advantage, through increased investment. The ease of transferring capital across national borders has increased the use of outsourcing and facilitated an explosion of FDI in the 1990s to areas like East Asia and Latin America, providing a huge boost to industries in the recipient countries. Access to financial markets also means that the governments of smaller economies can borrow to fund their development. Borrowing allows such economies to hold their currencies at preferred rates to suppress inflation and keep up debt repayments without inflicting a huge recession at home (Green, 2003). The remarkable development of the East Asian economies would not have been possible without huge inflows of capital, both in FDI and government borrowing to fund economic development strategies. The disadvantages of integration While the advantages of greater financial integration mentioned above have helped many less-developed countries expand their industries and grow their economies, their progress has been beset by financial crises, most notably in the 1990s. These crises were notable because they happened in very similar circumstances in completely different parts of the world, and spread across national boundaries and even to different regions. Contagion of financial crises is the most serious disadvantage of increased interdependence. This effect was most obviously witnessed in the late 1990s, where integration turned a currency crisis in Thailand into the Asian crisis, and turned the Asian crisis into a global recession. Thailands devaluation made Thai exports very cheap, meaning other economies selling very similar exports to the same markets were forced to devalue in order to protect demand. The crash in Asia precipitated crashes in Russia, Brazil and Argentina. As Jones (2000) explains, the contagious effects of Asia were threefold: psychological upon investors, the collapse of regional markets for Southeast Asian exports, and upon other world markets as demand collapsed. This demonstrates a key point, that due to the nature of their economies, developing countries bear much more of the cost of crises because of capital flight. As crisis spreads, investors begin to question the wisdom of their investments in, and the reliability of, other emerging market economies. Due to the Asian crisis capital was withdrawn en masse as traders sold the currencies of Russia, Brazil and Argentina for safer currencies in Western Europe, and the dollar. Capital flight also devastated the Mexican economy in 1994-5. From 1990 to 1993 $91bn flowed into Mexico, a fifth of all capital going to developing states (OBrien Williams, 2007). Higher interest rates in the USA, combined with a rebellion in Chiapas and the assassination of a presidential candidate, caused investors to doubt that Mexico could keep its peso fixed to the dollar. In December 1994 investors sold the peso in such large quantities that the dollar link was abandoned. Living standards were cut in half (OBrie n Williams, 2007), the poor suffered, and the middle class faced skyrocketing interest rates and diminished savings due to the devaluation. Some claim that these disadvantages, and their specific effect on LDCs, are not given proper consideration by advanced states and their neo-liberal programme of reform. As Barry Eichengreen (2003) attests, LDCs have specific financial problems. Their monetary and fiscal institutions lack credibility. Their regulators lack administrative capacity. Their financial markets are shallow, and they cannot borrow abroad in the domestic currency. Stiglitz (2002) protested against the liberalisation agenda being pushed too quickly on smaller states lacking proper financial institutions and banking systems, countries like Mexico and Argentina, which saw precipitous and blanket financial liberalisation (Phillips, 2005). It is now widely accepted that reform was too rapid, and the result of neo-liberal reform in Latin America has been a pattern of poor economic performance and increasing political tension. This lends weight to the argument that capital-rich states have much more to gain from the growth of the global financial system. What is important for the conclusions of this essay, however, is that it cannot simply be said that the advantages accrue to rich states and the disadvantages to the poor, as rich states, and their firms and individuals, suffer disadvantages from integration also. Advanced states, of course, also suffer from the effects of crisis and contagion. This has been evident from the fallout of the 2007 global crisis, but due to integration it is now increasingly difficult for all economies to insulate themselves against the effects of recession. Crisis in one area of the global economy means falling demand for goods and services in others, and with the scope of international firms, and the vast number of countries in which single firms do business means that collapses have far-reaching consequences. However, the biggest disadvantage in terms of advanced states is felt by their national industries and firms, those unable to shift production to areas of cheaper labour and production costs. National firms are becoming increasingly unable to compete with firms either in countries with such conditions, or international firms able to conduct business there. This is bad news for the industrial workers of advanced economies, who today can be easily replaced by cheaper counterparts around the globe. Implications the emerging global dichotomy These advantages and disadvantages show that there is a global dichotomy emerging. The principle beneficiaries of the integration brought about by the globalisation of finance are the controllers of capital, those able to move their resources freely around the global economy for the highest return and security. The principle losers are the capital-poor, whether labour or those with assets tied within national boundaries. While China has been one of the biggest beneficiaries economically from financial globalisation, its rising inequality shows that its poorest people, like many others around the world, remain subject to, rather than participants in, the global economy. The advantages and disadvantages discussed above demonstrate two critical characteristics of the global financial system. First, as internationally mobile capital has become more powerful, so have the holders of it in relation to other groups. The argument that capital now holds a structural power within the system has been advanced by scholars such as Gill and Law (1989), and Thomas and Sinclair (2002). The latter study argues that today the expectations of the resource-rich are anticipated by the resource-poor. In the modern system knowledge workers are fortunate, as they can move to wherever they command the highest salary. Others are manufacturing workers facing fierce competition from counterparts in numerous countries, and still others are subsistence workers trying to survive in a system moving towards broader commercialisation in areas like agriculture. This effect has been compounded by the tertiarisation of global economic activity (Phillips, 2005) brought about by financia l globalisation. There is a growing movement towards production and trade of services rather than goods, which produces a divergence between entities that can compete in the service sector and those that cannot. Second, the leadership role of the most economically powerful states, and the nature of the financial system they have created, has rendered alternative policies imprudent. Susan Stranges (1986) casino has many reluctant players. Capital mobility means sustainable macroeconomic policy options available to states are systematically circumscribed (Andrews, 1994); integration has raised the costs of pursuing policies that diverge from regional or international trends. The fact, as discussed, that there is so much to gain for investors means there is the same amount to lose for countries following policies detrimental to their profits, such as running budget deficits to fund welfare policies. The global financial system has been directed by an ideology of liberalisation since the 1970s, and the benefits for the capital-rich, the majority of those that lead the modern system, are too great for the direction to change. This could be the reason for the difference between the development of global trade and finance. Financial liberalisation has incredible advantages for capital-rich states, while with open trade LDCs have the advantages of cheap labour and export-led strategies. Advanced states have continued to protect their national industries with degrees of protectionism. While it is an extreme claim that rich states preserve the system because of the dichotomy this essay presents, the evidence is certainly that the major economies still believe whole-heartedly in the theory of globalisation, that its benefits justify this cost. The recent financial crisis has demonstrated that major states, particularly the USA and the UK, are willing to prop up a system that has shown significant disadvantages in contagion and volatility. This has been a stark example of the asymmetry between the capital-rich and the capital-poor in the event of crisis traders and investors regroup and take their capital to the safest location in order to resume the pursuit of high returns, while taxpayers and workers face austerity measures and unemployment as investment decreases. While the benefits for the developing world have been massive, these benefits are only received by integrating into a system whose disadvantages effect it in a disproportionate way, and which produces a dichotomy, the wrong side of which many of its people will remain. The economic theory behind globalisation still favours trickle-down development rather than bottom-up. The benefits cited by its chief proponents, such as the growth of LDC economies and global economic stability, are no doubt desirable, but they will require a truly global system with truly global markets, neither of which has yet been achieved. In the decades it will take for the global economy to become truly global and precipitate universal benefits, the gap between the capital-rich and capital-poor will continue to grow. Conclusions The global financial system has been heading in a single direction since the 1970s, towards liberalisation and the greater interdependence and interconnectedness of economies, firms and individuals around the globe. This direction was facilitated by the advanced industrial nations through political actions to free international capital, and expand and open global financial markets. Innovations in computing and telecommunications, as well as market innovations, have contributed heavily to the volume and velocity of international capital flows exploiting the volatility and uncertainty of the system. The emerging strategic interests of the USA, the UK, and later Japan, led them to promote a more open international financial order (Helleiner, 1994). The major economies interests still lie in this order, and thus they promote its advantages and push its neo-liberal agenda through international financial institutions and multilateral agreements. This enthusiasm is an indication that the advanced states, and the capital-rich firms and individuals that call them home, have much to gain from financial globalisation, but they also believe in the benefits the neo-liberal programme promises to all. The problem is that the universal benefits of financial globalisation will only fully materialise under the conditions of a truly global economy, with many more participants than there are currently. It is possible that as markets continue to expand to become truly global, more universal benefits will be seen, but the global dichotomy is likely to grow faster than financial markets and access to them. The challenge for the world economy as it moves forward is how to deal with the social aspect of this expansion.

Death of Salesman by Arthur Miller Essay -- Death Salesman Arthur Mill

Death of Salesman by Arthur Miller The Requiem seems to simply conclude the play at the funeral and let us see the other character's view of events with some retrospect. However, with closer scrutiny, we see that old issues and resentments are still very prevalent. The Requiem can be split into two halves. The first half sees Charley, Biff, Linda and Happy over Willy's grave. Each character is unique in their perspective at this point, reflecting Willy's own change of perspective towards the end of play and reminding us of several themes in the text. Happy still clings to the memory of Willy Loman as the successful salesman and general good man. Indeed, he holds this view with some ferocity. He tries to stop Biff being negative about his father (the stage directions include 'almost ready to fight Biff infuriated') and his last words are ones of defiance: 'I'm gonna show you and everybody else that Willy Loman did not die in vein this is where I'm gonna win it for him' This seems rather absurd to the reader as it is clear now that the American Dream for the Loman family is just that- a dream. The spectacular failure of his father and the collapse of the family show that the dogmatic pursuit of success is fruitless and even dangerous. 'Happy' is a very apt name for the son who tries to be happy and show a brave face even when things have collapsed around him. Other examples of this include Happy rallying Biff both when they talk about setting up business together and when Happy tries to make Biff attract women at the restaurant in Scene 2. Happy also represents the side of Willy that he was most used to (Happy, unlike Biff, lived with Willy day to day and so was more indoctrinated to the lies and... ...wife. Instead of seeing the inevitable, as Charley does, or being somehow released like Biff, she can only see things in terms of money and time, like Willy used to obsess over- 'He even finished with the dentist'. The second half of the Requiem is dedicated to Linda. It is quite hard to understand. She says that she 'can't cry' but then seconds later she is 'sobbing more fully'. Why is this? Maybe telling her true feelings to Willy instead of suppressing them like when he was alive releases her, but she keeps repeating 'we're free'. As she whispers this she seems to be on a higher plane and connecting with Willy. This, however, is open to interpretation and all we can safely say is that the Requiem releases the pressure that was mounting in the Loman household in possibly the only way it could; with the realisation of the failure of the American Dream.

Organizational Culture and Strategic Human Resource Management Essay

Organizational Culture and Strategic Human Resource Management Introduction   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Different scholars have given the term culture different meanings according to the context in which it is applied. People have different cultures from their area of origin, but organizations tend to have almost similar cultures governing the relationship between the employer and employees or among the employees themselves. Carla defined culture as interactions, behavior patterns affective understanding and cognitive constructs which are acquired through the socialization process. These patterns are used in distinguishing members of different cultures through the way they behave. Lederach (1985) stated that culture refers to shared schemes and knowledge obtained from a set of people through interpreting, perceiving, responding and expressing social realities.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Consequently, Organizational culture refers to how people from a given organization are required to behave concerning their employment and their code of behavior concerning the operations and activities carried out in any given organization. These codes give employees a sense of belonging or identity, appointing and aligning a common view which enables them to act according to such cultures (Bates, Amundson, Schroeder, & Morris, 2010: p. 1565). Different organizations have different ways of maintaining organizational cultures. Most of the companies adopt an impressive rate of retaining employees with a high level of satisfaction as a way of maintaining strong cultures in the workplace. These are important towards the success of the business as well behaved and motivated employees are more productive compared to those who are non-motivated in a given organization. These strong organizational cultures can be maintained through the following ways:   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Responsive to the needs of an employee; despite the company catering for the pension schemes and the salary of the employees, it is also required to respond to other interests of the employees such as; lifestyle benefits, healthy, working conditions, leisure and the study days. This motivates the employee to maintain good standards of behavior and in turn increases their output.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Ongoing development; this comprises of the developments that are carried out in the business organization such having talents day mentoring schemes, which offers training to employees on how they can improve their services. This makes the employees feel that their future is being invested in and that the company is supporting their professional and personal growth.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Social calendar; this involves a well balanced social interaction regarding business activities, which creates a good morale. It involves social healthy and social events, which are carried outside the office setting, which creates an inter-team bonding and a buoyant atmosphere which is a form of motivation to the employees.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Honest feedback and openness; employers are required to create an environment that brings an open culture which makes employees in every stage share their suggestions, ideas and concerns. When strategies of a well structured feedback are put in place, business owners can as well monitor the levels of employees’ satisfaction and be able to alleviate any arising issue.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Innovative approach; this comprises of the ways a business conducts its activities and the ways it relates with the members of staff. The company should strive to portray good examples and allow its employees to attend industrial events. This makes sure that they become updated with the c trends and advance in their area of work.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Committed leadership; leadership is a very essential component in any given organization; this should involve all team members especially those in the management sector. Company culture can only be maintained through having committed, clear and inclusive leadership where all members are represented. Importance of Maintaining Organizational Culture   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The recent past, there has developed a high concern on how businesses have chosen to carry out their daily operations. The culture of an organization in the leadership concept has become a major component used by leaders to come up with a dynamic organization. Leaders do ignite the process of culture formation through imposing expectations and assumptions on their subjects or followers. Schein (2011: p. 370) stated that as companies stabilize due to their success of completing its primary tasks, assumptions of leaders becomes shared which facilitates the socialization process of new members. This result to the success of the organizational leaders’ consistency, giving clear signals regarding their priorities, believes and values.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   When ethical cultures are promoted through leadership, leaders become successful which facilitates organizational growth, maintains good services that the society demands, ability to solve issues before they end up becoming serious disasters and become competitive against their rivals. Schein (2011: p.374) also discovered that corporate cultures are very important on matters concerning decision making in the organization. He stated that if decisions are made without considering the forces of the operative culture, it may result to undesirable and unanticipated consequences. This is due to complex issues confronting leaders when deciding on the best method of generating the achievements of the organization when faced with complex environments. Their success will depend on the understanding, and the knowledge leaders have concerned the organizational culture. This makes them predict the results of their decisions by preventing anticipated re percussions. Arguably, an organization that maintains such strong culture can also realize the following benefits. Enhanced corporation and mutual trust Development of an informal control system within the organization   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Assisting workers in modifying their behaviors through providing behaviors, which are justified Schein (2011: p.373) also characterized the culture of an organization in three levels. The first level consisted of artifacts and behavior levels which are most visible as they are always around us. Such an observable cultural level consist of an outward manifestations behavior patterns of culture which can be seen in the physical layout of dress codes, work environments, levels of technology, behaviors and attitudes of people. The second level comprised of the organizational values that determine behavior and are unobservable which are different from the artifacts and physical behaviors. They give the difference between operating values and the stated values such valuing customers and qualities. Operating value refers to actual manifestation of true values in force. Schein (2011: p.373) emphasized that for better understanding of culture one h as to get the deeper level of beliefs and assumptions. The relevance of culture is the learned beliefs, values and assumptions which are taken for granted and shared as the company becomes successful.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The most challenging issue concerning the organizational culture is whether they can be changed. Some of these cultures are maintained, created and transformed by leaders or the people. Hartman (2006) stated that culture comprises of laws, history, language as well as systems and rules, informal and formal practices, rituals and beliefs. However, ethics of an organization operates on the whole moral culture of the business organization. Schein (2009: p.109) recommended the following five embedding primary mechanism which can be used by leaders as major tools to teach the organizations they lead on how to think, perceive, behave and feel from their own unconscious and conscious convictions.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Leaders’ attention on a regular basis control and measures: organizational leaders and founders communicate their beliefs, values and priorities based on where they are paying their attention. Their overtime measure and emphasizes can lead to a greater effect on the culture of the organization. Schein (2009: p.110) stated that such a process ends up becoming a powerful way of delivering a message especially when the leaders portray a total consistent to their behavior. These leaders consistency is the one that sends a message showing their priorities, beliefs and values which is high importance rather than the actions’ intensity. Northouse (2008: p.370) argued that every leader should have an agenda, proposals, a series of beliefs; values issues and ideas which they desire to discuss which has significant effects on the values the organization exhibits. Schein (2009: p.112) stated that leaders can apply both negative and posi tive signals as tools of capturing the subordinates’ attention on important issues concerning the organization.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Leaders’ reactions towards organizational crises and critical incidents: all organizations are bound to experience crises which are known to draw every ones attention in such an incidence. The way leaders react to such crises; it gives more information concerning the values, culture and norms of the organization (Pacanowsky & Trujillo, 2013: p.130)   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Schein ((2009: p.113) quoted that if an organization is confronted with crises, the way leaders and other shareholders deals with such a situation, it creates values, new norms, working procedures and reveals underlying assumptions, which are important. Crises generate emotional involvement and attention to those related to the organization mostly if such crises threaten the existence of the organization. When the organizations assumptions are exposed in such an incidence, the potential is increased to either reinforce the current culture or make a change on such current culture. In such situations, leaders may influence the culture of the organization so as to support ethical behaviors and strong morals which reinforces creation of new values in the organization. Such situations give the leaders an opportunity to coach, teach and mentor their followers.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   How resources are allocated by leaders, status and rewards: organizations are required to prepare a budget which is a basic tool used in resource allocation of the company, this allocation reveals the leaders beliefs and assumptions. If the allocation of resources is balanced, it improves the efficiency of the operations, creates consumer satisfaction and increases the values of the company.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Deliberate teaching, role modeling and coaching: when a leader becomes a good role model by showing personal examples, it sends a very beneficial and a powerful message to the organizational members mostly for consistent and ethical actions. Schein (2011: p.272) stated that a subordinate derives their personal ethics from what they perceive or observe as ethical standards practiced by the leaders.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   How leaders select, recruit, excommunicate and promote: this gives a significant way through which leaders can transform the culture of the organization and their assumptions through selecting, promoting and retaining people business organization. Schein (2009: p.115) stated that leaders and organizational founders establish unconscious culture in the organization through advancing and hiring anyone, whom they thought has such values they desire and eliminate the undesirable ones. If the corporate culture of the business organization is corrupt, people in the organization tend to ignore the right things and engage in activities which are unethical along their ways of operations.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   SHRM on the other hand refers to the intentions and plans of the organization on how it should achieve its goals through people. It is a process which comprises of three propositions: the first one indicates that competitive advantage has a major source which is human capital; secondly, it indicates that the organization strategic plan is implemented by people. Finally, is that the organization should adopt a systematic approach that defines where the company wants to go, and the ways it should do to get there. These strategies of HRM define the plans and intentions associated to organizational overall considerations such as its effectiveness and more precise aspects related to people management, which involves resourcing, employee relations and rewards, learning and development. It addresses organizational issues in a broader perspective which are associated to changes in culture and structure, organizational performance and its effective ness, matching resources concerning future requirement, and management of change. Its main aim is to develop capability processes, which ensures things, are done effectively. Aims of adopting SHRM   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The rationale of SHRM is to bring an agreement and understanding based on developing an approach of people management in the long-term. Boswell (2010: p. 1489) suggested that SHRM is meant to achieve competitive advantage using HRM.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   It provides a perspective on how to address success factors or critical issues related to people, strategic decisions made which have a long term and a major impact on the organizational success and behavior. Its fundamental aim is to come up with strategic capability by making sure that the business has a skilled, well motivated and committed employee which brings competitive advantage.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The objective of SHRM is providing a sense of direction always in a tabulated environment in order to ensure the company needs and the employees collective needs are met through implementation and development of coherent and practical programs and policies of human resource. Holder and Dyer (2008: p.66) stated that the aims of SHRM should be to provide a unifying framework which is integrative, broad and based on contingency. Storey, Wright, & Ulrich, 2009: p. 108) termed the aims of SHRM that they should emphasize on aspects of human relations of people management, communication, emphasizing continuous development, involvement, working life quality, security of employment and balance of work-life.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   It should attempt to have an achievement of balancing both the soft and hard elements. Almost every organization strives to achieve its objectives and must ensure that the required resources needed to achieve such objectives they are used efficiently. Quinn (2013: p. 96) stated that when the management is taking an extensive planning, they should consider the people in mind, take an account of the aspirations and the needs of all the organizational members in the soft concept of SHRM. Importance of having SHRM in an organization   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   In most cases, the importance of SHRM in a business organization becomes hard to overemphasize them because human beings act as the driving forces in any business organization. This calls for the organization to have strategies of implementing a well-thought out and well planned SHR ideas (Kang & Kim, 2011: p. 390). This will facilitate coordination and having a proper channel of human capital to ensure increased productivity (Kane, 2006: p. 190). Better strategies on human resources, which are solid, allow the business organization to develop a good relationship with the organizational workers, and have peaceful coexistence and mutual benefits from the host community.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   A well and properly implemented a plan on SHRM helps the organization to attain its goals through the employees performing their necessary duties which are geared towards achieving such goals. In such a situation, the benefits of SHRM are seen since departments of human resources identify key areas in the organization which requires manpower (Sarros, Cooper & Santora, 2008: p.150)   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   These departments are also required to carry out key steps on matters of recruiting ideal candidates who can fill vacancies and helps the organization to achieve its short-term, long-term goals and its vision. Strategic approaches to HRM   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Approach based on resources: Barney (2011: p.46) indicated that aims of based resource approach are developing the capability of achieving the fit between opportunities, resources and obtaining value addition from well deployment of resources.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Strategic fit: strategies of human resource should have an integral part that contains strategies of the business which contributes in the planning processes of the business as they are carried out. Integration is a necessary concept in a business as it gives the congruence between strategies of human resource and the business itself when done vertically (Barney, 2011: p.48). The aim of carrying out both horizontal and vertical integration in a business is to ensure a coherent approach is achieved as far as management of people is concerned.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Management at high-performance: this management aims at making an effect on the firm’s performance through its people in areas such as quality, productivity, levels of consumer services, profits, growth and delivery of improved shareholders value. This management carries out practices such as selection procedures and vigorous recruitment, relevant training and extensive management, development activities and process of management performance.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Few years ago, researchers and professionals have been focusing on whether corporate culture has any effect on the company performance and its effectiveness. Kanter (2013: p.22) in his book Managing Knowledge Workers Unleashing Innovation and Productivity demonstrated that companies with better SHRM outperformed those with less progressive practices. In illustrating the link between organizational culture and its effectiveness, the proposition focuses on four major traits of culture which needs to be examined in order to get the clear link between the two. Such traits are; involvement, adaptability, consistency and mission.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Consistency and involvement are mainly focused on the internal composition of the organization and its mission. Mission and adaptability on the other hand focuses on how external factors of the environment and the organization are collated. Research has proposed that the culture of an organization has to be strong, and give strategic competitive benefits and its values and believes have to be firmly held and widely shared (Koch & McGrath, 2010: p.340). This proposal is only meant if the purpose of the corporate culture is to improve its effectiveness and the overall performance.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Although previous reviews and studies show that SHRM has become general probably with respect to performance and HRM, it has been mainly limited to the relationship between organizational performance and HR practices (Vijayasiri, 2010: p.48). Strategic HRM accepts functions of HR as a strategic important partner when formulating the strategies of the company and their implementation through practices of HR. Deley (2009: p.38) adopted a perspective view based on resources which emphasized on acquiring competitive benefits through the means of utilizing organizational resources through employees. Through the research for SHRM of organizational effectiveness, the following areas were used to determine whether such strategies are successful:   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Outcomes on human resource, which made an evaluation concerning the behaviors of the workforce/ employees;   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Outcomes of the organization which are based on quality, productivity and services;Outcomes on financial accounting related to profitability and investment returns;Outcomes on capital market for public organizations that are, shareholders returns and stock value.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Finally, strategic HRM is a very important factor to be mentioned despite whether there is a significant research done or not. There is supportive evidence which shows that there is a strong link between effectiveness and culture. SHRM fully depends on the organizational culture for its successful implementation (Denison, & Mishra, 2013: p. 214). Valuation of styles and viewpoints and development of ways which are concrete facilitates learning in the organization from differences which shows high benefits obtained when organizational structure, processes and procedures are maximized.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Conclusively, research has been done which shows how national cultures are diversified and how they influence the behaviors of the employees, this inspires optimism on the emerging perspectives related to SHRM practices and culture (Siddique, 2013: p.230). Globally, there is a lot of research that is carried out on how organizations allocate resources, make decisions, manage, negotiate and motivate employees, develop and train their employees (Linn, 2008: p. 90). These researches reveal that culture is one of the most important determinants of the organizational behavior. Consequently, a culture plays a great role in the field of HRM which takes heed of methodological and the existing theoretical pitfalls. This shows that, for the SHRM to be implemented successfully, organizational culture has to be maintained at high standards by both the employer and the employees. References Barney, N. J. (2011). Competence, governance, and entrepreneurship: advances in economic strategy research. Oxford: Oxford University Press. (Original work published 2000) Bates, K. A., Amundson, S. D., Schroeder, R. G., & Morris, W. T. (2010). The Crucial Interrelationship Between Manufacturing Strategy And Organizational Culture. Management Science, 41(10), 1565-1580. Boswell, W. (2010). Aligning Employees With The Organization’s Strategic Objectives: Out Of à ¢Ã¢â€š ¬Ã‹Å"line Of Sightà ¢Ã¢â€š ¬Ã¢â€ž ¢, Out Of Mind. International Journal of Human Resource Management, 17(9), 1489-1511. Deley, A. (2009). Best human resource management practices in Latin America. London: Routledge. Denison, D. R., & Mishra, A. K. (2013). Toward A Theory Of Organizational Culture And Effectiveness. Organization Science, 6(2), 204-223. Holder, J., & Dyer, G. (2008). Strategic human resource development. London: Sage Publications. (Original work published 2003) Kane-Urrabazo, C. (2006). Management’s Role In Shaping Organizational Culture. Journal of Nursing Management, 14(3), 188-194. Kang, M., & Kim, H. (2011). Influence Of Strategic Human Resource Management Of On Organizational Culture And Organizational Citizenship Behavior Of Private Facility Security Guards. The Journal of the Korea Contents Association, 11(4), 389-403. Kanter, A. D. (2013). Managing knowledge workers unleashing innovation and productivity. Westport, Conn.: Quorum Books. Koch, M. J., & McGRATH, R. G. (2010). Improving Labor Productivity: Human Resource Management Policies Do Matter. Strategic Management Journal, 17(5), 335-354. Linn, M. (2008). Organizational Culture: An Important Factor To Consider. The Bottom Line: Managing Library Finances, 21(3), 88-93. Northouse, C. (2008). A Model To Explore The Mystery Between Organizations’ Downsizing Strategies And Firm Performance: Integrating The Perspectives Of Organizational Change, Strategy And Strategic Human Resource Management. Journal of Organizational Change Management, 21(3), 367-384. Pacanowsky, M. E., & O’Donnellà ¢Ã¢â€š ¬Ã‚ Trujillo, N. (2013). Organizational Communication As Cultural Performance. Communication Monographs, 50(2), 126-147. Quin, C. (2013). The effectiveness of a paid parental leave policy on return rates of new mothers: [a research report submitted to the Victoria University of Wellington in partial fulfilment of the requirements for the] Diploma in Human Resource Management. Hoboken: Springer. Sarros, J. C., Cooper, B. K., & Santora, J. C. (2008). Building A Climate For Innovation Through Transformational Leadership And Organizational Culture. Journal of Leadership & Organizational Studies , 15(2), 145-158. Schein, E. H. (2009). Organizational Culture.. American Psychologist, 45(2), 109-119. Schein, E. H. (2011). Organizational Culture And Leadership: A Dynamic View, By Edgar H. Schein. San Francisco, CA: Jossey-Bass, 2010. Human Resource Management, 24(3), 370-375. Siddique, C. (2013). Job Analysis: A Strategic Human Resource Management Practice. The International Journal of Human Resource Management, 15(1), 219-244. Storey, J., Wright, P. M., & Ulrich, D. (2009). The Routledge companion to strategic human resource management. London: Routledge. Vijayasiri, G. (2010). Reporting Sexual Harassment: The Importance Of Organizational Culture And Trust. Gender Issues, 25(1), 43-61. Source document

Guide to Past Simple and Past Continuous Verb Tenses

There are two principal past tenses used to make general statements about the past: The past simple and the past continuous. The two tenses are quite different. Use the past simple to talk about an event which happened at some point in time in the past. Tom flew to Chicago last week.Peter visited his friends in Florida two months ago. If you are a teacher, use this guide on how to teach the past simple tense for more help. The past continuous is usually used to refer to events happening at the same time that something important happened in the past. They were doing their homework when she arrived.Jack was studying while Dave was cooking dinner. The past continuous is also used to express what was happening at a precise moment in the past. I was attending a lecture at 2.30 yesterday afternoon.Alice was reading a book at six yesterday evening. If you are a teacher, use this guide on how to teach the past continuous tense for more help. Past Simple Structure Positive Subject Verb ed OR Irregular Past Form Objects I, You, He, She, We, They played golf yesterday afternoon.I, You, He, She, We, They went lunch at noon. Negative Subject did not (didnt) Verb Objects I, You, He, She, We, They didnt go on vacation last summer. Subject did not (doesnt) Verb Objects Questions (Why, What, etc.) did Subject Verb Objects? Did I, you, we, they attend the meeting last week? Past Continuous Structure Positive Subject conjugate the helping verb be verb -ing. I was, You were, He was, She was, We were, You were, They were watching TV when I arrived. Negative Subject conjugate the helping verb be not verb -ing. I wasnt, You werent, He wasnt, She wasnt, We werent, You werent, They werent working when he came into the room. Questions Question word conjugate the helping verb be subject verb -ing What were you, they doing at seven oclock?What was I, he, she doing at seven oclock? More Guides for Past Simple These guides were prepared especially for beginners and include dialogues and a short quiz. Past simple with the verb to be for beginnersPast simple with regular and irregular verbs for beginners Teach a Lesson About the Past Simple and Past Continuous Here are lessons on the site which focus on the past simple or past continuous and their use with other tenses.Then - Now - integration lesson for upper-level students.Time Expressions - past simple and present perfect compared and contrasted.Integrating Past Continuous - integrating past continuous into writing.Guilty! - communication lesson using a variety of past tenses. Activities With the Past Simple and Past Continuous Some activities that will help you practice: What Were You Doing? - Use of the past continuous in combination with the past simple.A Holiday in Italy - Describing a past holiday.Time Expressions and Tenses.