Relationship between money supply and the inflation Essay

Relationship between money supply and the inflation - Essay Example However, when the government securities are purchased from the market, central bank actually inject money into the market thus increasing the money supply in the economy. (Mankiw, 2008) Another important method through which money supply can be controlled in the economy is the adjustment in the discount rate. Discount rate is the interest rate at which central bank lends to other banks and is also serves as the primary rate in any economy. When discount rate is increased, central bank therefore invariably makes it difficult for the households and firms to obtain the obtain money at relatively cheaper rates thus making borrowing costly. A decrease in the discount rates otherwise because by reducing the rate, central bank makes it easier for the firms and the households to borrow money easily. (Sloman, & Garratt.2010). Inflation and money supply Inflation is an increase in the general price level in the economy and signifies a reduction in the purchasing power of the money. Normally in flation is measured through a consumer price index where the prices of a fixed basket of goods and services are compared with the prices of the same basket of goods and services at a give base year. An increase in the prices as compared to the base year therefore is considered as an increase in the inflation and hence erosion in the purchasing power of money. A decrease in the purchasing power would mean money would buy fewer things. (Krugman & Wells, 2009) According to the classical economics, an increase in the money supply actually does not result into an equal increase in the aggregate demand for goods and services. As such any change in the money supply will... This paper outlines the relationship between aggregate money supply and the growth of the real GDP and overall level of prices in the economy. One of the central debates in monetary economics rests upon the neutrality of money and whether money can actually result into the development of price increase or not. This debate is also based on the notion that the central bank of a country actually does not have any role in contributing towards the economic growth because money actually remains neutral and does not result into the growth. Moreover, it is argued that the higher money supply can result into higher prices and thus if money supply is increased, it will create inflation in the economy and will hurt the real economic growth. This is because of the fact that higher inflation level decreases the purchasing power of money quickly. In order to achieve objectives of the economic growth and price stability, central bank adapts different tools and techniques which help it to control the money supply in the economy. One of the most commonly used methods is the open market operations under which central bank actually purchases or sells the government securities in the market. Another important method through which money supply can be controlled in the economy is the adjustment in the discount rate. According to the classical economics, an increase in the money supply actually does not result into an equal increase in the aggregate demand for goods and services. Classical economists also argue in such situation an increase in the money supply would result into inflation. At the full equilibrium level, a positive change in the money supply would result into inflation and the negative growth rates.

Impacts of Motivation in Employee Performance Essay Example for Free

Impacts of Motivation in Employee Performance Essay 1. INTRODUCTION 1.1 Back Ground of the Study The study was attempted to investigate analytically the major causes of employees’ motivation in Commercial Bank of Ethiopia. To accomplish this, the research was considered to take appropriate data that relevant to the problem. Since, Commercial Bank of Ethiopia is the major sector that supports the current development of Ethiopia economy and the five years of transformation plan, so it should be better to take study to identify the major causes that affects of employees’ motivation toward their work and to propose necessary tools of solution to mitigate the problem. This will be at least a solution currently and in the future for the organization. The major initiatives to conduct this study are also one of the researchers is working in Commercial Bank of Ethiopia that observe most of employees are not satisfied or motivated to work. This forced the rest researchers to examine the basic problems of human resource management unable to conduct how frequently motivate employees’ in the existing work place using financial and non financial tools. If this problems not solved, it may affects the image of the organization, belongingness workers etc†¦gradually. Considering this, it should be necessary to conduct study to identify the major causes of employees’ dissatisfaction in their work place that affects motivation, and the drawback of motivation packages relative to the image of the organization and its strategic plan which is to be â€Å"Classic Bank In The World†. To do an extensive study, the researcher performed methodological ways of gathering data pursuant to the problems and objective of the study paper. The employees are one of the vital resources or ingredient that will help organization to achieve its objectives. Employees supply their talents, knowledge, skill and experience towards to the achievement of organizational objectives. To get maximum performance from employees, the organization must have the necessary motivational scheme that encourages employees for better performance. Optimizing performance of employees by motivational factors is challenging and sensitive due to uniqueness of working force which came to organization from different socio-economical background. Performances of motivated employees create high productivity, innovativeness and good attitudes towards the organizations. There is a relationship between motivational factors and some facts of the employees behavior such as performance, turnover, absenteeism, poor attendance, willingness to do more, creativity, flexibility, and commitment to the organization. So motivation has important implications because it affects the individual quality of work, life, and performance. Therefore, managers are expected to have necessary skill on how to motivate employees. Commercial Bank of Ethiopia as a service rendering organization thereby maximizing its profit, its quality of service is highly determined by devotion of its employees. Therefore, the bank has to give importance to the recruitment of educated employees, to staff training and the improvement of workers’ benefit packages. Besides, it has to revise its benefit package with a view to motivating its staff towards greater efficiency and competence. In general, the study was focused on to investigate the real causes of employees’ dissatisfaction at their work place in the Bank and its impacts toward the image, rest of employees’ belongingness. 1.2 Back Ground of the Organization Currently, the Commercial Bank Ethiopia (CBE) has 15 district offices and above 300 branches throughout the country serving as market outlets. As the largest bank and development partner of the Ethiopian Government, the CBE has transferred Birr 1.23 Billion in 2008 1 to the coffers/treasure of the state. In 2005/2006, the market share of the Bank was 24% and 76% for credit extension and deposit mobilization, in that order. The Commercial Bank of Ethiopia (CBE) is the leading Bank in the country. It has over 8,600 employees and close to 2 million accounts holders throughout the country, and total asset of Birr 73.7billion, total deposit and other liabilities of Birr 56.1 billion and outstanding loans of Birr 22.9 billion, and close to 70 years of solid accumulated banking experience. The CBE is in the forefront of the banking industry in meeting the financial needs of the various sectors, sub-sectors and ongoing varied investment projects in the economy. It has diversified credit portfolio with loan facilities extended ranging from farmers’ cooperatives to commercial farmers and large manufacturing and construction project. Commercial Bank of Ethiopia currently has given services for customers such as Deposit, Loan service, foreign currency service etc†¦ The CBE has a vision to be world a worldwide class commercial bank by 2025.It has also set a strategy of exceeding customers and stake holder’s expectation through service excellence and business growth supporting the development efforts in the country. Commercial Bank of Ethiopia currently played a great role for the development of the economy to achieve the million goal of the country. (CBE Public Relations Documentation, 2011). 1.3 Statement of the Problem It is obvious that currently Commercial Bank of Ethiopia is a major blood for the current economic growth of Ethiopia. In order to fulfill this, the company mobilized big amount of foreign and domestic currency to facilitate and support high investment process in the economy. To perform effectively this, the firm should have well developed human resource management tools to enhance the work forces motivation toward their work which help to create loyal and belonging employees in the work area. This has a direct relationship with the service quality level to satisfy the existing and prospect customers. Moreover to introduce new and modern type of working system throughout the organization, there should be also a sound strategy of workers motivation program, which helps to increase workers retention in the bank. Organizations that only focus on its goal, without considering the factors of employees motivation toward their works has become a cause of fragility of the business in the long run. In this essence, employees that are not satisfied in their organization could not be initiated to exert more efforts effectively in the organization, instead they will look for other opportunities externally and vote with their feet by moving their allegiance to competitors, and this will affect the firms in the long run. The outcomes of the research will help the organization to take the necessary corrective measurements in the future and to revise its motivation strategy of employees. Because of the above major problems, the existing employees’ lack confidence on the bank. Moreover, the bank faces problem of employees’ turnover due to lack of effective motivation, this also results in high cost of getting experienced employees and recruiting of new one. Therefore; regarding the above problem, the study attempted to respond the following basic research questions. 1.What is the feeling and attitudes of employees towards to motivational factors used in Commercial Bank of Ethiopia? 2.What are the consequences of job dis-satisfaction in Commercial Bank of Ethiopia? 3.What are the consequences of lack of motivated employees’ performance? 4.What is the effect of motivation on employees’ loyalty to the organization? 5.What kind of action should be taken by the bank to increase employees’ motivation toward work areas? 6.What are the basic factors for employees’ motivation in the work area? Is it financial or non financial benefits? 1.4 Objective of the study Due to lack of effective motivation, most employees are dissatisfied to their work place; this creates desperate work forces that perform their work till to get other opportunities of work in order to get the root of the problem the study set the following objectives. General objective The general objective of the study was to identify the causes and impacts of lack of employees’ motivation and to identify the basic causes of dissatisfaction of employees to ward their work, which aggravated lack of employees’ motivation. Specific Objective †¢To indicate which is the basic factors for lack of employees motivation currently in the bank †¢To show the relation between lack of employees’ motivation impacts and employees’ turnover. †¢To assess the potential consequences of lack of employees’ motivation in the Bank. †¢ To set appropriate recommendation for the problem based on the findings. 1.5 Significance of the study The study identified the major causes of employees’ dissatisfaction, which is a major factor that affects motivation of employees at the work area. The outcomes of the research help to increase employees’ satisfaction at their works that support to increase the service level of customers’ satisfaction. Moreover, increase of work force motivation has also a direct relationship to minimize turnover in the bank. The other advantages of increase of motivation of employees at the work area are enables employees to enhance their loyalty for the organization and at the same time employees’ belongingness increase. This also helps for the reputation of the image of the bank. Employees will increase their efficiency to serve their customers with smiling face. Moreover also; the study provided a hint for other researchers as a reference, and the findings of the study will help to give valuable information for top management to establish new system to increase employe es’ motivation. 1.6 Scope of the study The study considered major causes of employees’ lack of motivation in the Bank especially focusing in the area of Addis Ababa core operation. It scopes limited to study employees’ lack of motivation in Addis Ababa area only, by taking as a population and sample of the existing employees. 1.7 Limitation of the Study The major limitation of the study is constraints of time and collecting appropriate data from respondents since there was few samples unwillingness to return the questionnaires properly. 1.8 Research Methodology 1.8.1 Research Design The study applied the following types of research method to investigate the problems. The research is designed by using both Primary Secondary data. 1.8.2 Source of Data Methods of Data Collection The method of data collection carried out by distribution of questioners, which consist of both closed and open-end questioners. The questioners were being the main instrument of primary data collection. The secondary data gathered from different books, literature review, internet and printed materials. 1.8.3Sampling Design Techniques A sampling technique of random sampling adopted by taking the sample from the selected four city branches and two departments of Manager and non-manager line staff employees of commercial bank of Ethiopia. The total population was taken 200. 1.8.4Methods of Data Analysis Descriptive and explanatory methods of data analysis applied. Test hypothesis for possible interdependence and effect relation ships conducted for easy understanding of trends of some patterns of distribution, table, percentage and interpretation of data conducted based on the response and theoretical concepts. 1.9 Organization of the paper The study paper included four chapters. The first chapter is about the introduction part which contains back ground, statement of problems, objective of the study, significance, methodology of research, limitation of the study and organization of the paper. In Chapter II, Theoretical concepts from internet are included. Chapter III included the important part of the study, which is data analysis and interpretation, this lead to the final Chapter IV, which described the summary of findings, conclusions and recommendation of the paper. CHAPTER TWO 2. LITERATURE REVIEW OF MOTIVATION 2.1 Motivation and Motivation Theory The term motivation is derived from the Latin word movere, meaning to move. Motivation can be broadly defined as the forces acting on or within a person that cause the arousal, direction, and persistence of goal-directed, voluntary effort. Motivation theory is thus concerned with the processes that explain why and how human behavior is activated. (http://www.csb.gov.hk/hkgcb/hrm/pdf.fcle/e-motivation). The broad rubric of motivation and motivation theory is one of the most frequently studied and written-about topics in the organizational sciences, and is considered one of the most important areas of study in the field of organizational behavior. Despite the magnitude of the effort that has been devoted to the study of motivation, there is no single theory of motivation that is universally accepted. The lack of a unified theory of motivation reflects both the complexity of the construct and the diverse backgrounds and aims of those who study it. To delineate these crucial points, it is illuminating to consider the development of motivation and motivation theory as the objects of scientific inquiry. (http://www.csb.gov.hk/hkgcb/hrm/pdf.fcle/e-motivation). 2.2 Historical Development Early explanations of motivation focused on instincts. Psychologists writing in the late 19th and early twentieth century have suggested that human beings were basically programmed to behave in certain ways, depending upon the behavioral cues to which they were exposed. Sigmund Freud, for example, argued that the most powerful determinants of individual behavior were those of which the individual was not consciously aware. (http://www.csb.gov.hk/hkgcb/hrm/pdf.fcle/e-motivation). According to Motivation and Leadership at Work (Steers, Porter, and Bigley, 1996), in the early twentieth century researchers began to examine other possible explanations for differences in individual motivation. Some researchers focused on internal drives as an explanation for motivated behavior. Others studied the effect of learning and how individuals base current behavior on the consequences of past behavior. Still others examined the influence of individuals cognitive processes, such as the beliefs they have about future events. Over time, these major theoretical streams of research in motivation were classified into two major schools: the content theories of motivation and the process theories of motivation. (http://www.csb.gov.hk/hkgcb/hrm/pdf.fcle/e-motivation). 2.3 Major Content Theories Content (or need) theories of motivation focus on factors internal to the individual that energize and direct behavior. In general, such theories regard motivation as the product of internal drives that compel an individual to act or move (hence, motivate) toward the satisfaction of individual needs. The content theories of motivation are based in large part on early theories of motivation that traced the paths of action backward to their perceived origin in internal drives. Major content theories of motivation are Maslows hierarchy of needs, Alderfers ERG theory, Herzbergs motivator-hygiene theory, and McClellands learned needs or three-needs theory. (http://www.csb.gov.hk/hkgcb/hrm/pdf.fcle/e-motivation). 2.3.1 Maslows Hierarchy of Needs. Abraham Maslow developed the hierarchy of needs, which suggests that individual needs exist in a hierarchy consisting of physiological needs, security needs, belongingness needs, esteem needs, and self-actualization needs. Physiological needs are the most basic needs for food, water, and other factors necessary for survival. Security needs include needs for safety in ones physical environment, stability, and freedom from emotional distress. Belongingness needs relate to desires for friendship, love, and acceptance within a given community of individuals. Esteem needs are those associated with obtaining the respect of ones self and others. Finally, self-actualization needs are those corresponding to the achievement ones own potential, the exercising and testing of ones creative capacities, and, in general, to becoming the best person one can possibly be. Unsatisfied needs motivate behavior; thus, lower-level needs such as the physiological and security needs must be met before upper-level needs such as belongingness, esteem, and self-actualization can be motivational. (http://www.csb.gov.hk/hkgcb/hrm/pdf.fcle/e-motivation). Applications of the hierarchy of needs to management and the workplace are obvious. According to the implications of the hierarchy, individuals must have their lower level needs met by, for example, safe working conditions, adequate pay to take care of ones self and ones family, and job security before they will be motivated by increased job responsibilities, status, and challenging work assignments. Despite the ease of application of this theory to a work setting, this theory has received little research support and therefore is not very useful in practice. (http://www.csb.gov.hk/hkgcb/hrm/pdf.fcle/e-motivation). 2.3.2 Alderfer’s Erg Theory. The ERG theory is an extension of Maslows hierarchy of needs. Alderfer suggested that needs could be classified into three categories, rather than five. These three types of needs are existence, relatedness, and growth. Existence needs are similar to Maslows physiological and safety need categories. Relatedness needs involve interpersonal relationships and are comparable to aspects of Maslows belongingness and esteem needs. Growth needs are those related to the attainment of ones potential and are associated with Maslows esteem and self-actualization needs. 1.The ERG theory differs from the hierarchy of needs in that it does not suggest that lower-level needs must be completely satisfied before upper-level needs become motivational. ERG theory also suggests that if an individual is continually unable to meet upper-level needs that the person will regress and lower-level needs become the major determinants of their motivation. ERG theorys implications for managers are similar to those for the needs hierarchy: managers should focus on meeting employees existence, relatedness, and growth needs, though without necessarily applying the proviso that, say, job-safety concerns necessarily take precedence over challenging and fulfilling job requirements. (http://wwww.csb.gov.hk/hkgcb/hrm/pdf). 2.3.3 Motivator-Hygiene Theory. Frederick Herzberg developed the motivator-hygiene theory. This theory is closely related to Maslows hierarchy of needs but relates more specifically to how individuals are motivated in the workplace. Based on his research, Herzberg argued that meeting the lower-level needs (hygiene factors) of individuals would not motivate them to exert effort, but would only prevent them from being dissatisfied. Only if higher-level needs (motivators) were met would individuals be motivated. (http://www.csb.gov.hk/hkgcb/hrm/pdf.fcle/e-motivation). The implication for managers of the motivator-hygiene theory is that meeting employees lower-level needs by improving pay, benefits, safety, and other job-contextual factors will prevent employees from becoming actively dissatisfied but will not motivate them to exert additional effort toward better performance. To motivate workers, according to the theory, managers must focus on changing the intrinsic nature and content of jobs themselves by enriching them to increase employees autonomy and their opportunities to take on additional responsibility, gain recognition, and develop their skills and careers. 2.3.4 Mcclellands Learned Needs Theory. McClellands theory suggests that individuals learn needs from their culture. Three of the primary needs in this theory are the need for affiliation (n Aff), the need for power (n Pow), and the need for achievement (n Ach). The need for affiliation is a desire to establish social relationships with others. The need for power reflects a desire to control ones environment and influence others. The need for achievement is a desire to take responsibility, set challenging goals, and obtain performance feedback. The main point of the learned needs theory is that when one of these needs is strong in a person, it has the potential to motivate behavior that leads to its satisfaction. Thus, managers should attempt to develop an understanding of whether and to what degree their employees have one or more of these needs, and the extent to which their jobs can be structured to satisfy them. (http://www.csb.gov.hk/hkgcb/hrm/pdf.fcle/e-motivation). 2.4 Major Process Theories Process (or cognitive) theories of motivation focus on conscious human decision processes as an explanation of motivation. The process theories are concerned with determining how individual behavior is energized, directed, and maintained in the specifically willed and self-directed human cognitive processes. Process theories of motivation are based on early cognitive theories, which posit that behavior is the result of conscious decision-making processes. The major process theories of motivation are expectancy theory, equity theory, goal-setting theory, and reinforcement theory. (http://www.csb.gov.hk/hkgcb/hrm/pdf.fcle/e-motivation). 2.4.1 Expectancy Theory. In the early 1960s, Victor Vroom applied concepts of behavioral research conducted in the 1930s by Kurt Lewin and Edward Tolman directly to work motivation. Basically, Vroom suggested that individuals choose work behaviors that they believe lead to outcomes they value. In deciding how much effort to put into a work behavior, individuals are likely to consider: †¢Their expectancy, meaning the degree to which they believe that putting forth effort will lead to a given level of performance. †¢Their instrumentality or the degree to which they believe that a given level of performance will result in certain outcomes or rewards. †¢Their valence, which is the extent to which the expected outcomes are attractive or unattractive. All three of these factors are expected to influence motivation in a multiplicative fashion, so that for an individual to be highly motivated, all three of the components of the expectancy model must be high. And, if even one of these is zero (e.g., instrumentality and valence are high, but expectancy is completely absent), the person will have not motivation for the task. Thus, managers should attempt, to the extent possible, to ensure that their employees believe that increased effort will improve performance and that performance will lead to valued rewards. (http://www.csb.gov.hk/hkgcb/hrm/pdf.fcle/e-motivation). In the late 1960s, Porter and Lawler published an extension of the Vroom expectancy model, which is known as the Porter-Lawler expectancy model or simply the Porter-Lawler model. Although the basic premise of the Porter-Lawler model is the same as for Vrooms model, the Porter-Lawler model is more complex in a number of ways. It suggests that increased effort does not automatically lead to improved performance because individuals may not possess the necessary abilities needed to achieve high levels of performance, or because they may have an inadequate or vague perception of how to perform necessary tasks. Without an understanding of how to direct effort effectively, individuals may exert considerable effort without a corresponding increase in performance. (http://www.csb.gov.hk/hkgcb/hrm/pdf.fcle/e-motivation). 2.4.2 Equity Theory. Equity theory suggests that individuals engage in social comparison by comparing their efforts and rewards with those of relevant others. The perception of individuals about the fairness of their rewards relative to others influences their level of motivation. Equity exists when individuals perceive that the ratio of efforts to rewards is the same for them as it is for others to whom they compare themselves. Inequity exists when individuals perceive that the ratio of efforts to rewards is different (usually negatively so) for them than it is for others to whom they compare themselves. There are two types of inequity—under-reward and over-reward. Under-reward occurs when a person believes that she is either puts in more efforts than another, yet receives the same reward, or puts in the same effort as another for a lesser reward. For instance, if an employee works longer hours than her coworker, yet they receive the same salary, the employee would perceive inequity in the form o f under-reward. Conversely, with over-reward, a person will feel that his efforts to rewards ratio is higher than another persons, such that he is getting more for putting in the same effort, or getting the same reward even with less effort. While research suggests that under-reward motivates individuals to resolve the inequity, research also indicates that the same is not true for over-reward. Individuals who are over-rewarded often engage in cognitive dissonance, convincing themselves that their efforts and rewards are equal to anothers. (http://www.csb.gov.hk/hkgcb/hrm/pdf.fcle/e-motivation). According to the equity theory, individuals are motivated to reduce perceived inequity. Individuals may attempt to reduce inequity in various ways. A person may change his or her level of effort; an employee who feels under-rewarded is likely to work less hard. A person may also try to change his or her rewards, such as by asking for a raise. Another option is to change the behavior of the reference person, perhaps by encouraging that person to put forth more effort. Finally, a person experiencing inequity may change the reference person and compare him or herself to a different person to assess equity. For managers, equity theory emphasizes the importance of a reward system that is perceived as fair by employees. (http://www.csb.gov.hk/hkgcb/hrm/pdf.fcle/e-motivation). 2.4.3 Goal-Setting Theory. The goal-setting theory posits that goals are the most important factors affecting the motivation and behavior of employees. This motivation theory was developed primarily by Edwin Locke and Gary Latham. Goal-setting theory emphasizes the importance of specific and challenging goals in achieving motivated behavior. Specific goals often involve quantitative targets for improvement in a behavior of interest. Research indicates that specific performance goals are much more effective than those in which a person is told to do your best. Challenging goals are difficult but not impossible to attain. Empirical research supports the proposition that goals that are both specific and challenging are more motivational than vague goals or goals that are relatively easy to achieve. (http://www.csb.gov.hk/hkgcb/hrm/pdf.fcle/e-motivation). Several factors may moderate the relationship between specific and challenging goals and high levels of motivation. The first of these factors is goal commitment, which simply means that the more dedicated the individual is to achieving the goal, the more they will be motivated to exert effort toward goal accomplishment. Some research suggests that having employees participate in goal setting will increase their level of goal commitment. A second factor relevant to goal-setting theory is self-efficacy, which is the individuals belief that he or she can successfully complete a particular task. If individuals have a high degree of self-efficacy, they are likely to respond more positively to specific and challenging goals than if they have a low degree of self-efficacy. (http://www.csb.gov.hk/hkgcb/hrm/pdf.fcle/e-motivation). 2.4.4 Reinforcement Theory. This theory can be traced to the work of the pioneering behaviorist B.F. Skinner. It is considered a motivation theory as well as a learning theory. Reinforcement theory posits that motivated behavior occurs as a result of reinforces, which are outcomes resulting from the behavior that makes it more likely the behavior will occur again. This theory suggests that it is not necessary to study needs or cognitive processes to understand motivation, but that it is only necessary to examine the consequences of behavior. Behavior that is reinforced is likely to continue, but behavior that is not rewarded or behavior that is punished is not likely to be repeated. Reinforcement theory suggests to managers that they can improve employees performance by a process of behavior modification in which they reinforce desired behaviors and punish undesired behaviors. (http://www.csb.gov.hk/hkgcb/hrm/pdf.fcle/e-motivation). 2.5 People Motivation- Non – financial Notes Most business recognizes the need for non- financial methods of motivation. The main ones are described briefly below. 2.5.1 Job Enlargement Job enlargement involves adding extra, similar tasks to a job. In job enlargement, the job itself remains essentially unchanged. However, by widening the range of tasks that need to be performed, hopefully the employees will experience less repetition and monotony. With job enlargement, the employees rarely need to acquire new skills to carry out the additional task. A possible negative effect is that job enlargement can be viewed by employees as a requirement to carry out more work for the same pay. (http://tutor ). 2.5.2 Job Rotation Job rotation involves the movement of employees through a range of jobs in order to increase interest and motivation. For example, an administrative employee might spent part of the week looking after the reception area of business, dealing with customers and enquires. Some time might then be spent manning the company telephone switch board and then inputting data onto a database. Job rotation may offer the advantage of making it easier to cover for absent colleagues, but it may also reduce productivity as workers are initially unfamiliar with a new task. Job rotation also often involves the need for extra training. (http://tutor ). 2.5.3 Job enrichment Job enrichment attempts to give employees greater responsibility by increasing the range and complexity of tasks they are asked to do and giving them the necessary authority. It motivates by giving employees the opportunity to use their abilities to the fullest. Successful job enrichment almost always requires further investment in employee training. (http://tutor ). 2.5.4 Team Working and Empowerment Empowerment involves giving people greater control over their working lives. Organizing the labour force into team with degree of autonomy can achieve this. This means that employees plan their own work, take their own decision and solve their own problems. Teams are set targets to achieve and may receive and may receive rewards for doing so. Empowerment teams are an increasingly popular method of organizing employees at work. (http://tutor ).

Foreign Direct Investment (FDI) in Bosnia and Herzegovina

Foreign Direct Investment (FDI) in Bosnia and Herzegovina Merjema Aletic Introduction The very definition of Foreign direct investment is controlling ownership in a bussiness enterprise in one country by an entity based in another country. The collapse of the former Yugoslav Federation, Croatia and Slovenia declared independence in 1991 while paramilitary origins from Serbia occupied several Bosnia and Herzegovina towns killing civil Bosniaks and Croat. In this clash of ethnic groups, BIH was confronted with serious humanitarian and social problems in which thousands of people died. The conflict lasted (1992-1995) until the Dayton Peace Agreement was signed in Paris in December 1995 between the counterparts (Malcolm 2002). With one confederation, two entities, ten cantons in the Federation, five administrative areas in the Serb Republic, a special Brcko district, plus municipalities and local government unit presents a very complex political system in the world which conceals meaningful barriers and bureaucratic obstacles that will need to overcome (Ilgun, 2009). Many aspects of the regulatory quality reforms have stagnated over a number of years, making BiH among the least competitive economies in the Europe and Central Asia (ECA) region. To enhance the prospects of the country as a destination for foreign investment further steps were taken, especially by establishing the Promotion Agency (FIPA), privatization and incentives for foreign investors. Literature review Foreign direct investment (FDI) plays an extraordinary and growing role in global business. It has long been recognized that the benefits of FDI for the host country can be significant, including knowledge and technology transfer to domestic firms and the labor force productivity spillovers, enhanced competition, and improved access for exports abroad, notably in the source country (Demekas et al, 2005 and Botric, 2010). Due to the low domestic savings there is need for attraction of foreign direct investment for future economic growth (Botric, 2010).The consensus view in the literature is that the benefits of FDI tend to significantly outweigh its costs for host countries (Demekas et al, 2005). There are two types od FDI: Horizontal FDI (HFDI) is market-seeking investment, aimed primarily at the domestic market in the host country, when local production is seen as a more efficient way to penetrate this market than exports from the source country, and Vertical FDI (VFDI) is cost-mini mizing investment, when a multinational corporation chooses the location of each link of its production chain to minimize global costs (Demekas et al, 2005). As a result of these differences in motivation, a number of host country factors, such as market size, trade restrictions, and transport costs, can have different effects on HFDI and VFDI. Predictable policy environment that promotes macroeconomic stability, ensures the rule of law and the enforcement of contracts, minimizes distortions, supports competitiveness, and encourages private sector development can be expected to stimulate all private including foreign investment (Demekas et al, 2005). Among the macroeconomic and political environment factors it is the political stability as the most important factor that influences investment decision. Furthermore in the case of the institutional environment, protection of investors is one of the important factors. Those can be the tax systems, lack of corruption, the ease of starting up a company, law of contract, transparency, safeguarding of property rights and efficiency of justice (Ilgun, 2009). Although Serbia and Montenegro and Bosnia and Herzegovina are slightly lagging behind the other countries, they are on a good path to make further progress in this area of reform implementation (Penev and Rojec, 2004). High poli tical risks in the region in the past decade posed one of the greatest obstacles to FDI inflow although this varied amongst countries. Private foreign capital is very sensitive to any investment risk, so that the countries with an unstable political and economic environment are almost unattractive to private foreign investors (Penev and Rojec, 2004). After the political failure, BIH has also started a wide reaching process of reconstruction and development of its political, economic, social and legal systems of the country (Ilgun, 2009). All Southeastern European countries, each to a different degree, need to make further efforts to simplify complex tax and customs laws and regulations, facilitate access to land and construction permits, strengthen the judiciary, accelerate the resolution of commercial disputes, and eliminate remaining discriminatory provisions against foreign investors. It is found that high unit labor costs, a high corporate tax burden, and, to a lesser extent, a high level of import tariffs discourage FDI (Demekas et al, 2005), while a liberal foreign exchange and trade regime and advanced reforms in the infrastructure sector encourage FDI (Penev and Rojec, 2004). Reforms in Bosnia and Herzegovina related to FDI The role of FDI in economic growth and development is now widely acknowledged, and all countries are actively seeking to attract it. Several forms can be used for capital investing abroad: investment in a joint venture with a local firm, acquisition of a foreign firm (mergers acquisitions) or construction of a facility (wholly owned) (Ilgun, 2009). In order to create and improve bussiness climate Bosnia and Herzegovina accelerated Economic Reform process. The aim of BH is to eliminate legal and administrative obstacles for doing business in BH, as well as create the most attractive business environment in the SEE (FIPA). Many aspects of the regulatory quality reforms have stagnated over a number of years, making BiH among the least competitive economies in the Europe and Central Asia (ECA) region. BiH currently ranks 131st out of 189 economies on the Doing Business indicators for 2014 (World bank). The business environment in BiH is the least friendly in the region, as it is burdene d by a large and complex public administration system and layers of administrative approval authorities which increases costs (World bank). World bank (2013) supports BiH’s business environment reforms and includes areas such as reducing the time and cost for registering a business, streamlining procedures for obtaining construction permits, and facilitating trade across borders shown in Figure 1. Based on IAB results (2010), countries tend to attract more FDI if they allow foreign ownership of companies in a variety of sectors, make start-up, land acquisition, and commercial arbitration procedures efficient and transparent, and have strong laws protecting investor interests. For instance, studies have shown that 70% of countries miss out on foreign investment due to deficiencies of investment promotion institutions in providing potential investors with accurate and up-todate information (IAB, 2010). These policies target improving BiH’s competitiveness, helping to facilitate the country’s dialogue with the EU on accession, and promoting economic growth. The May 2014 floods are estimated to have caused around US$2.9 billion in damages and losses, the equivalent of nearly 15 percent of GDP in 2014. Figure 1. Fastest and slowest countries for starting a foreign business. BiH is in a delicate position, caught between the â€Å"middle-income trap† (too poor to be a world-class innovator and service provider, but too rich to compete for low-cost manufacturing) and legacy issues on the one hand, and having the potential and opportunities to improve the business environment and attract more investment on the other (world bank, 2013). The main goal of BH is EU membership. Bosnia and Herzegovina is a potential candidate country for EU accession and BH has signed the Stabilization and Association Agreement with the European Union, which is a step toward EU membership (FIPA, 2012). Bosnia and Herzegovina has signed the Central European Free Trade Agreement (CEFTA), creating a free trade zone with access to a large consumer market. Also,the process of negotiation to join the World Trade Organisation is underway. Privatization in Bosnia and Herzegovina is an overall process, through which attractive investment opportunities are opened up to foreign investors in sectors such as the energy sector and telecommunications. Bosnia and Herzegovina is accelerating the privatization process for companies of strategic importance in order to increase economic growth and enhance the volume of foreign investment. The existence of free zone as part of the customs territory of Bosnia and Herzegovina, which is specially fenced and marked and where business activities are carried out under special conditions in accordance with the Law on Customs Policy of BH and the Law on Free Zones of BH (FIPA). Any industrial, commercial or service activity, (banking, insurance and reinsurance of property and persons, etc.), can be carried out in the free zone. The users of free zone do not pay VAT and import customs, so investment in the free zone, transfer of profit and transfer of investment are free of charge. One of t he main reasons for investing in BH is also favorable tax system. Bosnia and Herzegovina has one of the lowest rates of VAT (17%) in the region and Europe, as well as the very acceptable corporate tax rates that are also among the lowest in the region and Europe (10%) (FIPA). Bosnia and Herzegovina has Agreements on avoidance of double taxation with the following countries: Albania, Algeria, Austria, Belgium, China, Croatia, Czech Republic, Cyprus, Denmark, Egypt, Finland, France, Germany, Hungary, Iran, Ireland, Italy, Jordan, Kuwait, Malaysia, Moldova, Montenegro, Netherlands, Norway, Pakistan, Poland, Qatar, Romania, Serbia, Slovakia, Slovenia, Spain, Sweden, Sri Lanka, Turkey, United Arab Emirates, United Kingdom and Northern Ireland (FIPA). Agreements on Avoidance of Double Taxation, which mean that companies only have to pay tax in their home country, accelerate the flow of investments into the signatory countries, encourage joint ventures, create more investment opportunities, expedite the transfer of technology and constitute a legal framework to bolster economic cooperation and enhance strategic economic partnership (FIPA). With the purpose of facilitating trade, creating preconditions for the increase in exchange of goods (and particularly expor t), the creation of a favorable environment for domestic and foreign investments, Bosnia and Herzegovina concluded certain number of bilateral/multilateral free trade agreements. Bosnia and Herzegovina has signed the Central European Free Trade Agreement (CEFTA), in effect as of November 2007, with the following countries: Albania, Serbia, Croatia, Macedonia, Moldova, Montenegro, UNMIK/Kosovo (FIPA). BH has also signed a Free Trade Agreement with Turkey which provides additional free access to this consumer market with 70 million people. Bosnia and Herzegovina has 40 Agreements on Promotion and Protection of Investments with the following countries: Albania, Austrua, Belgium and Luxemburg, Belarus, Canada, China, Croatia, Czech Republic, Denmark, Egypt, Finland, Germany, Greece, Hungary, India, Iran, Italy, Jordan, Kuwait, Lithuania, Macedonia, Malaysia, Moldova, Netherlands, OPEC Fund, Pakistan, Portugal, Qatar, Romania, San Marino, Serbia, Slovakia, Slovenia, Spain, Switzerland, Sweden, Turkey, Ukraine, United Kingdom and USA OPIC (FIPA). Foreign investors concerned about risks of transfer restrictions, expropriation, war and civil disturbances and denial o f justice, can be insured against these risks with the European Union Investment Guarantee Trust Fund for Bosnia and Herzegovina, administered by the Multilateral Investment Guarantee Agency (MIGA, member of the World Bank Group). According to the Central Bank of BH (CBBH) annual data shown in Figure 2. And Figure 3., total amount of Foreign Direct Investment (FDI) in Bosnia and Herzegovina till December 2013 was 11,044 million BAM or 11 billion BAM (5,647 million EUR or 5.6 billion EUR). The inflow of FDI in 2013 amounted to 418 million BAM (214 million EUR). Figure 2. Foreign currency reserves, in million euro Source: FIPA Figure 3. Flow of FDI in Bosnia and Herzegovina, by years, million â‚ ¬ Source: FIPA; *preliminary data withouth reinvested earnings The biggest amount of investments in BIH was made by companies from Austria (27.1 %) and Serbia (15.6%). Croatia (11.7%), Slovenia (11.4%), Switzerland (6.8%), Germany (5.5%), Russia (5%), The Netherlands (2.5%), Italy (2.1%), USA (1.9%), Turkey (1.3%), and other countries (9.1%) follow them (Table 1). Table 1. Top investor countries in BiH, Country Amount (Million Euro) Percent Austria 1,446 27.10% Serbia 832 15.60% Croatia 626 11.70% Slovenia 610 11.40% Switzerland 364 6.80% Germany 294 5.50% Russia 268 5.00% The Netherlands 134 2.50% Italy 114 2.10% USA 99 1.90% Turkey 68 1.30% Other Countries 487 9.10% TOTAL 5,300 100% Source: FIPA – Foreign Investment Promotion Agency of Bosnia and Herzegovina (2012), Investment Opportunities in Bosnia and Herzegovina, February 2012, Sarajevo. A part of the efforts aimed at attracting foreign investors, the Bosnia and Herzegovina Parliamentary Assembly adopted the Law on Foreign Direct Investments, which established political directions for favorable treatment of foreign investors and protection of their interests. Foreign investors enjoy the following benefits (APF 2009; FIPA 2012): Exemption from customs duties on investments; Unlimited right to open and keep an account in all commercial banks in the entire territory of Bosnia and Herzegovina, in domestic or any other foreign convertible currency; The right of free and undisturbed foreign transfer of all income realized by investments in Bosnia and Herzegovina in all convertible currencies; Equal property rights with all citizens of Bosnia and Herzegovina; Protection from nationalization, expropriation, requisition, or measures with similar consequences; The right to employ foreign citizens in accordance with Bosnia and Herzegovina laws on labor and immigration. International Development Agency (IDA) and Investment Guarantee Agency (IGA) provide guarantees for protection from political risks for short term and medium term commercial transactions between Bosnia and Herzegovina companies and foreign companies, suppliers and banks. Conclusion The main advantage of FDI is its contribution to economic growth in host countries. The extent of such growth enhancing responses depends on country specific characteristics such as liberal trade regimes, accumulation of human and physical capital and macroeconomic stability (ilgun, 2009). Bosnia and Herzegovina is accelerating the privatization process for companies of strategic importance in order to increase economic growth and enhance the volume of foreign investment. BiH’s business environment reforms includes areas such as reducing the time and cost or registering a business, streamlining procedures for obtaining construction permits, and facilitating trade across borders. With the purpose of facilitating trade, creating preconditions for the increase in exchange of goods (and particularly export), the creation of a favorable environment for domestic and foreign investments, Bosnia and Herzegovina concluded certain number of bilateral/multilateral free trade agreements. Due to the good reputation and long industrial tradition of Bosnia and Herzegovina, the manufacturing sector received the largest amount of FDI (32%). A significant share of investment has been in banking sector (22%). References APF Agency for Privatization in Federation of Bosnia and Herzegovina, (2009), http://www.apf.com.ba Botric, V. (2010). Foreign Direct Investment in the Western Balkans: Privatization, Institutional Change and Banking Sector Dominance. Economic Annals. Voolume LN, No. 187. The Institute of Economics, Zagreb. Demekas, D.G., Horvath, B., Ribakova, E., Wu, Y. (2005). Foreign Direct Investement in Southeastern Europe: How (and How Much) Can Policies Help? IMF Wroking Paper. European Department. FIPA – Foreign Investment Promotion Agency of Bosnia and Herzegovina (2012). Investment Opportunities in Bosnia and Herzegovina. March 2012, Sarajevo. Investing Across Borders. (2010). Investment Climate Advisory Services. World Bank Group. Ilgun E., Coskun A. (2009). Foreign Direct Investments in Bosnia and Herzegovina: Banking sector example. Vol. 4. No. 2. Alatoo Academic Studies Malcolm, N. (2002). Bosnia: A short history, Pan Books, Pan Macmillian Ltd. London Penev, S. Rojec, M. (2004). Foreign Direct Investment and Investement Climate in South-East Europe. Economic Annals. Economic Institute, Belgrade. World Bank Group – Bosnia and Herzegovina Partnership: Country Program snapshoot. (2014). http://www.worldbank.org.ba 1

Essay example --

Palmore v. Sidoti(1984),the court ruled that it was unconstitutional to transfer custody of white children to their father solely on the fact that the mother lived with a colored (black) man. The court did acknowledge the fact it may not be in the â€Å"best interest† for the child to actually live in a transracial family but held the equal protection doctrine preventing consideration that the race of a potential parent could hinder in the making of custody decisions. Around the 60’s and 70’s, other courts prohibited legal state bans on transracial, seeing them as inconsistent with equal protection doctrine. South Africa today has a related development lifting transracial adoption bans in order to move toward abolishment of racism. â€Å"The quickest cure for racism would be to have everyone in the country adopt a child of another race. No matter what your beliefs, when you hold a four-day-old infant, love him, and care for him, you don’t see skin color, you see a little person that is very much in need of your love.†(Robert Dale Morrison). In 1972 something strange happened within the U.S; a...

Analyzing Macbeth According To The 7 Habits Of Highly Effective Teens :: Stephen Covey, Seven Habits

In reading William Shakespeare's play, MacBeth, readers can plainly see that character development is crucial to developing the plot, as well as the overall appeal of the literature. One can see the growth in Macbeth and Lady Macbeth throughout the story. The changes in the characters' personas is very much visible to the reader throughout the storyline. In analyzing MacBeth, one can use Sean Covey's insightful book, The 7 Habits of Highly Effective Teens, to show the seven characteristics, as Covey describes them, show the changes in Macbeth and Lady Macbeth.To teach one's self a lesson in changes of character, one should read up on the character Macbeth. This man made a turn from a, more or less, flat character in the beginning of the story to a much rounder character with many complex parts of a personality by the time the story was over. But the common denominator within his character in all parts of the story was that, despite his stature as a "good guy" or a "bad guy", Macbeth exhibited absolutely no good qualities as shown in Seven Habits. When the witches foretold of his destiny, Macbeth did not Begin with the End in Mind. Hewas not proactive in helping his destiny come to pass, having his wife actually scheme to assassinate King Duncan. He did not follow the habit: "Seek First to Understand, Then to be Understood". He never tried to understand anything. He just followed what his wife told him to do. When he thought that there was a threat to his position he would do anything, included cold-blooded murder, to alleviate the strain in his deranged mind. Even those close to him such as Banquo and others were killed just because of MacBeth's reactive nature. This is definitely a sign of a man with a win-lose paradigm. It was his way or the highway. MacBeth also had bad habits, such as being a procrastinator, waiting for Lady MacBeth to come up with a plan before he thought about the consequences. On the other hand, Lady MacBeth exhibited some positive habits during the story. When she found out of MacBeth's destiny to become Thane of Glamis, Thane of Codor, and ultimately, king, she took initiative in planning out the king's untimely murder. She cunningly planned and plotted, all for the straight-forward reason of her husband being able to assume the throne as king.

The Power of Place :: Essays Papers

The Power of Place â€Å"The main thing is to root politics in place. The affinity for home permits a broad reach in the process of coalition building. It allows strange bedfellows to find one another. It allows worldviews to surface and change. It allows politics to remain an exercise in hope. And it allows the unthinkable to happen sometimes.† Allen Thein Durning, This Place on Earth , P.249 The concept of place, home and community is a transnational and trans-community concept. Human places have just recently been given political boundaries. Previously, human boundaries were determined the same way that animal, plant, and ecosystem boundaries were defined. They were defined by ecology and they were defined by geography of region and hemisphere. Tony Hiss Author of The Experience of Place brings to our attention that as humans â€Å"We react, consciously or unconsciously, to the places where we live and work, in ways we scarcely notice or that are only now becoming known to us†¦In short, the places where we spend our time affect the people we are and can become.† Place defines characteristics in both human and extended moral communities. Place is not necessarily specific to gender, race, generation or specie. This understanding and recognition of place is fundamental when thinking about institutionalizing ecological and social responsibility. Because of human and nonhuman connections to specific places including knowledge, experience and community, using a sense of place and permanence as a green transnational multilateral initiative could be a successful step towards green democracy and ecological citizenship. Robyn Eckersley offers the suggestion of a constitutionally entrenched principle that would enhance ecological and social responsibility: the precautionary principle. I suggest connecting localized, place-specific boundaries with the principle. This addition is meant to aid in fostering ecological citizenship, expanding the moral community, and creating a responsible society. This addition would also be meant to unite a transnational issue that all nations could agree upon. This would create a binding multilateral principle that would be thoroughly accepting of specific ecological needs and characteristics of specific places. In short, the big picture of an international perspective needs the resolution of the peculiarities of place that can't be emphasized in a global viewpoint. The second major international environmental conference was held in Rio de Janeiro, in 1992. It was at Rio that the precautionary principle first became known to the public. Called principle 15, the precautionary principle provided that: â€Å"Where there are threats of serious or irreversible damage, lack of full scientific certainty shall not be used as a reason for postponing cost-effective measures to prevent environmental degradation† (p.

Compare and Contrast the Techniques Used by Bronte in Describing Thornfiled Hall in Chapter 11, with those used by Woolf in Describing London

Jane Eyre's tone is both gothic and romantic, often conjuring an atmosphere of mystery and secrecy. Her description of Thornfield in chapter 11, is very Victorian and thorough, which draws us into the novel. On page 122 of Chapter 11, when approaching the third floor, Jane uses a visual first person narrative text. When Bronte writes, â€Å"Mrs Fairfax stayed behind a moment to fasten the trap-door†, she is giving us an aspect of ambiguity, the word ‘fasten' emphasises the refusal of entry. The description of the staircase in Thornfield Hall illustrates the rigid and constricted atmosphere, as they are described as ‘the narrow garret staircase'. Bronte uses alliteration when stating, â€Å"lingered in the long passage†, to emphasise the description of her movement in the surroundings. The phrase ‘separating' used in the passage exemplifies the secrecy within Thornfield, which also intrigues us. The use of semicolons and commas in the passage, adds to the appeal of Thornifield, illustrated when Bronte writes, â€Å"the third story; narrow, low, and dim†. These techniques disrupt the flow of the sentence to show the fascination and anxiety that she has for the attic. This allows the structure of the sentence to be sharp, with short gaps to keep the reader curious and interested. The depiction of the building demonstrates the typical Victorian accommodation, of small, gothic and narrow appearance. Furthermore, the conclusive text of the ‘little window at the far end' shows the isolation within Thornfield, as light can barely enter the house. Bronte shows the seclusion in addition to this, as Jane says â€Å"with its two rows of small black doors†. The technique of colour imagery used here, exemplifies the obscurity and secrecy, which adds to the suspense of Thornfield. In Jane, Bronte gives us a detailed description of the events that occur in her life. Despite these Gothic elements, Jane's personality is friendly and the tone is also affectionate and confessional. Her unflagging spirit and opinionated nature further infuse the book with high energy and suspense. Mrs Dalloway is written in the first person narrative and so all her images are also very thorough. The dialect used by Woolf is very energetic and visual. This is immediately demonstrated on the first page, as Woolf uses onomatopoeic terms such as â€Å"What a lark! What a plunge! † The use of exclamation marks also illustrates the exuberant atmosphere in London. The opening paragraph is also heavily punctuated, but the technique used by Woolf is less symbolic in contrast to Jane Eyre. We get a great image of the frantic and constructive lifestyle Mrs Dalloway has in London, as Woolf uses terms such as ‘traffic' and ‘solemnity'. The dialect is very active in comparison to Jane Eyre, as the onomatopoeic image of Big Ben is described as â€Å"There! Out it boomed†. Here Woolf is utilising heavy sounding terms, to attract the reader into the novel and to allow us to appreciate all the elements of London city. The long sentences used by Woolf and constant repetitive descriptions anchor the dialect in the novel and help hold the prose down. Woolf also frequently uses semi-colons rather than commas in Mrs Dalloway, to break the language and interpretation of the novel down, to prevent an easy and fluent read. This is illustrated when Woolf writes, â€Å"and swinging; brass bands; barrel organs; in the triumph†¦ nd the strange high singing of some aeroplane overhead was what she loved; life; London;† The tone that Woolf takes is very sensitive in contrast to the solid language used by Bronte. Woolf has a poetic rhythm in her prose, illustrated when she writes, â€Å"there was a beating, a stirring of galloping ponies, tapping at cricket bats†. The consistent use of this sound imagery, also exemplifies the typical buoyant London atmosphere. In contrast to Jane Eyre, Woolf uses a positive colour imagery to show the attractive London environment, when writing â€Å"soft mesh of the grey-blue morning air†. Furthermore when entering the park, Woolf uses a technique of alliteration, to show the contrasting atmosphere of London city, to the park when writing â€Å"the slow-swimming happy ducks†. A more calming and subtle dialect is now used, in comparison to Jane Eyre, where Bronte uses a sharper and more emotional tone. The main contrasts between the two novels are the different use of punctuation in each. Woolf's Mrs Dalloway, although heavily punctuated, employs a more simple style. The descriptions, although very thorough, are basic to interpret, to compliment the simple imagery used. However Bronte uses the technique of punctuation in Jane Eyre, to compliment Jane's feelings. Though both novels use similar techniques of punctuation, Bronte's utilises this aspect to compliment her novel more, which adds to the element of suspense and mystery. This intrigues the reader and allows us to feel Jane's emotions at the current time. The technique and punctuation that Woolf' uses, helps to elevate the environment of London and help create a very expressive novel, which concentrates more on the surroundings.