1.0 Introduction
Strategies are central to the achievement of sustainable development. These are the driving force of practically every organisation that are motivated to grow fast ahead of the competitors, grow in line with the industry or to simply catch-up and defend an existing status. The orientation of these organisations is to expand, to reach and to penetrate into new market segments despite of all the hindrances that the market environment imposes. IBM is not an exemption to this as this multinational corporation is known for initiating efforts to maximise profit and minimise risks through strategizing.
This paper discusses in detail the research proposal of the market entry strategy of IBM in China. In particular, the research will focus on evaluating the most appropriate entry strategy and the basic entry decisions that IBM should consider prior to penetrating an otherwise highly-paternalistic, communist market like China. In this research proposal, the context and theme of the study are presented; the objectives of the study and the research statements are formulated. Here, vital concepts and questions are stated. Finally, the methodology to be used is discussed.
2.0 Theoretical Framework
The theory that supports the aims of this research is Hofstede's (1980) four value dimensions, which explain differences among work-related value patterns which affect the structuring and functioning of organizations. The four dimensions are the following: large versus small power distance; strong versus weak uncertainty avoidance; individualism versus collectivism; and masculinity versus femininity. According to Hofstede's analysis for China, the Chinese rank lower than any other Asian country in the Individualism (IDV) ranking, at 15 compared to an average of 24 (ITIM, 2003). This may be attributed, in part, to the high level of emphasis on a Collectivist society by the Communist rule, as compared to one of Individualism (ITIM, 2003).
China is proven to be a collectivist society (Triandis, 1994). Chinese are generally willing to give priority to the goals of the collective over their own personal goals, and emphasize their connection to the members of these collectives. Furthermore, they focus their trust and solidarity toward the norms of the members of their collectives, also called in group, and is often distrustful of out-group. The Chinese believes that individualism connotes selfishness, a lack of concern for others, and an aversion to group discipline, whereas collectivism is understood to affirm the solidarity of the group (Ho & Chiu, 1994).
3.0 Literature Review
The study will review a document and present related literatures. This will primarily include literatures from Hofstede, Hill and Jones and Johnson and Scholes. Basically, Hill and Jones discuss the basic entry decisions a company faces when going international. There are three basic decisions that a firm contemplating foreign expansion should take into account: which markets to enter, when to enter those markets, and on what scale.
a) Choosing foreign market. The choice must be made on the basis of an assessment of their long-run profit potential. As such, the attractiveness of a country as a potential market for an international business depends on balancing the benefits, costs, and risks associated with doing business in that country.
b) Timing of entry. The philosophy is: entry is early when an international business enters a foreign market before other foreign firms, and late when it enters after other international businesses have already established themselves.
c) Scale of entry and strategic commitments. Entering a market on a large scale involves the commitment of significant resources to that venture. Though not all companies have the resources, even some large companies prefer to enter foreign markets on a small scale and then gradually build their presence as they become familiar with the foreign market.
According to Hill and Jones (2001), there are five options that companies could ponder on. These are exporting, licensing, franchising, joint ventures, and the establishment of a wholly owned subsidiary.
Johnson and Scholes (2002) establish the role of strategic management incorporates the corporal understanding of the application of strategic positioning, the power of strategic choices and putting such strategies into practice. Such strategies are inherent for the companies which are diverting their attention from a domestic marketplace into the international scene.
A) Strategic positioning illustrates the implications of strategies on the external environment, the strategic capability of the organisations and the corporate expectations.
B) Strategic choices provide an array wherein the companies could decide what approaches, directions, or methods use in achieving business-level and corporate-level objectives. Expansions purport a greater profit for the company through business and corporate-levels strategies towards cost leadership, differentiation and competitive advantage.
C) The companies' effort to ensure that strategies are functioning is acknowledged as translating strategy into action.
Literatures about international marketing strategies will also be reviewed, as well as literatures about how a culture plays an important role in determining market strategies for multinational corporations so as the reader will have references about the different concepts and elements used in the study.
4.0 Statement of the Problem
The problem that will be addressed in this research is the most suitable market entry strategy of IBM in China. The key question to answer is: For IBM, how does the company could successfully penetrate the Chinese market? In lieu with this, the following specific questions will be answered.
1) What are the strategies that IBM should engage in entering the Chinese market?
2) What are the challenges and hindrances that IBM will face relating to Chinese market penetration?
3) How will the IBM combat the challenges imposed by the Chinese culture?
4) How important is succeeding to penetrate the Chinese market for IBM?
5.0 Research Objectives
The main purpose of the study is to analyse the most suitable market entry strategy that IBM could adopt in penetrating one of the most powerful yet convoluted markets in the world – the Chinese market. The following specific objectives will be addressed.
§ To evaluate how Chinese culture will affect the expansion strategies of IBM
§ To determine the challenges that IBM will expectantly face in penetrating the Chinese market
§ To scrutinise how the Chinese market penetration will provide benefits and advantages to IBM
6.0 Research Methodology
The study will explore the problem in a positivist view, using exploratory research strategy because it aims to know more about the phenomenon of employing market entry strategies. Exploratory research will enable the study to look at the problem in both descriptive and exploratory manner. It will look into the problem by exploring the views of different sets of respondents, as well as by exploring different literatures related with the study.
This research is also cross-sectional because of limited time. This research is a study of a particular phenomenon (or phenomena) at a particular time. (Saunders et al, 2003) Accordingly, cross-sectional studies often employ the survey strategy, and they may be seeking to describe the incidence of a phenomenon or to compare factors in different organizations.
In this study, primary and secondary research will be both incorporated. The reason for this is to be able to provide adequate discussion for the readers that will help them understand more about the issue and the different variables that involve with it. The primary data for the study will be represented by the survey results that will be acquired from the respondents. On the other hand, the literature reviews to be presented in the second chapter of the study will represent the secondary data of the study.
Showing posts with label Research. Show all posts
Showing posts with label Research. Show all posts
Saturday, March 21, 2009
Market Entry Strategy of IBM in China
1.0 Introduction
Strategies are central to the achievement of sustainable development. These are the driving force of practically every organisation that are motivated to grow fast ahead of the competitors, grow in line with the industry or to simply catch-up and defend an existing status. The orientation of these organisations is to expand, to reach and to penetrate into new market segments despite of all the hindrances that the market environment imposes. IBM is not an exemption to this as this multinational corporation is known for initiating efforts to maximise profit and minimise risks through strategizing.
This paper discusses in detail the research proposal of the market entry strategy of IBM in China. In particular, the research will focus on evaluating the most appropriate entry strategy and the basic entry decisions that IBM should consider prior to penetrating an otherwise highly-paternalistic, communist market like China. In this research proposal, the context and theme of the study are presented; the objectives of the study and the research statements are formulated. Here, vital concepts and questions are stated. Finally, the methodology to be used is discussed.
2.0 Theoretical Framework
The theory that supports the aims of this research is Hofstede's (1980) four value dimensions, which explain differences among work-related value patterns which affect the structuring and functioning of organizations. The four dimensions are the following: large versus small power distance; strong versus weak uncertainty avoidance; individualism versus collectivism; and masculinity versus femininity. According to Hofstede's analysis for China, the Chinese rank lower than any other Asian country in the Individualism (IDV) ranking, at 15 compared to an average of 24 (ITIM, 2003). This may be attributed, in part, to the high level of emphasis on a Collectivist society by the Communist rule, as compared to one of Individualism (ITIM, 2003).
China is proven to be a collectivist society (Triandis, 1994). Chinese are generally willing to give priority to the goals of the collective over their own personal goals, and emphasize their connection to the members of these collectives. Furthermore, they focus their trust and solidarity toward the norms of the members of their collectives, also called in group, and is often distrustful of out-group. The Chinese believes that individualism connotes selfishness, a lack of concern for others, and an aversion to group discipline, whereas collectivism is understood to affirm the solidarity of the group (Ho & Chiu, 1994).
3.0 Literature Review
The study will review a document and present related literatures. This will primarily include literatures from Hofstede, Hill and Jones and Johnson and Scholes. Basically, Hill and Jones discuss the basic entry decisions a company faces when going international. There are three basic decisions that a firm contemplating foreign expansion should take into account: which markets to enter, when to enter those markets, and on what scale.
a) Choosing foreign market. The choice must be made on the basis of an assessment of their long-run profit potential. As such, the attractiveness of a country as a potential market for an international business depends on balancing the benefits, costs, and risks associated with doing business in that country.
b) Timing of entry. The philosophy is: entry is early when an international business enters a foreign market before other foreign firms, and late when it enters after other international businesses have already established themselves.
c) Scale of entry and strategic commitments. Entering a market on a large scale involves the commitment of significant resources to that venture. Though not all companies have the resources, even some large companies prefer to enter foreign markets on a small scale and then gradually build their presence as they become familiar with the foreign market.
According to Hill and Jones (2001), there are five options that companies could ponder on. These are exporting, licensing, franchising, joint ventures, and the establishment of a wholly owned subsidiary.
Johnson and Scholes (2002) establish the role of strategic management incorporates the corporal understanding of the application of strategic positioning, the power of strategic choices and putting such strategies into practice. Such strategies are inherent for the companies which are diverting their attention from a domestic marketplace into the international scene.
A) Strategic positioning illustrates the implications of strategies on the external environment, the strategic capability of the organisations and the corporate expectations.
B) Strategic choices provide an array wherein the companies could decide what approaches, directions, or methods use in achieving business-level and corporate-level objectives. Expansions purport a greater profit for the company through business and corporate-levels strategies towards cost leadership, differentiation and competitive advantage.
C) The companies' effort to ensure that strategies are functioning is acknowledged as translating strategy into action.
Literatures about international marketing strategies will also be reviewed, as well as literatures about how a culture plays an important role in determining market strategies for multinational corporations so as the reader will have references about the different concepts and elements used in the study.
4.0 Statement of the Problem
The problem that will be addressed in this research is the most suitable market entry strategy of IBM in China. The key question to answer is: For IBM, how does the company could successfully penetrate the Chinese market? In lieu with this, the following specific questions will be answered.
1) What are the strategies that IBM should engage in entering the Chinese market?
2) What are the challenges and hindrances that IBM will face relating to Chinese market penetration?
3) How will the IBM combat the challenges imposed by the Chinese culture?
4) How important is succeeding to penetrate the Chinese market for IBM?
5.0 Research Objectives
The main purpose of the study is to analyse the most suitable market entry strategy that IBM could adopt in penetrating one of the most powerful yet convoluted markets in the world – the Chinese market. The following specific objectives will be addressed.
§ To evaluate how Chinese culture will affect the expansion strategies of IBM
§ To determine the challenges that IBM will expectantly face in penetrating the Chinese market
§ To scrutinise how the Chinese market penetration will provide benefits and advantages to IBM
6.0 Research Methodology
The study will explore the problem in a positivist view, using exploratory research strategy because it aims to know more about the phenomenon of employing market entry strategies. Exploratory research will enable the study to look at the problem in both descriptive and exploratory manner. It will look into the problem by exploring the views of different sets of respondents, as well as by exploring different literatures related with the study.
This research is also cross-sectional because of limited time. This research is a study of a particular phenomenon (or phenomena) at a particular time. (Saunders et al, 2003) Accordingly, cross-sectional studies often employ the survey strategy, and they may be seeking to describe the incidence of a phenomenon or to compare factors in different organizations.
In this study, primary and secondary research will be both incorporated. The reason for this is to be able to provide adequate discussion for the readers that will help them understand more about the issue and the different variables that involve with it. The primary data for the study will be represented by the survey results that will be acquired from the respondents. On the other hand, the literature reviews to be presented in the second chapter of the study will represent the secondary data of the study.
Strategies are central to the achievement of sustainable development. These are the driving force of practically every organisation that are motivated to grow fast ahead of the competitors, grow in line with the industry or to simply catch-up and defend an existing status. The orientation of these organisations is to expand, to reach and to penetrate into new market segments despite of all the hindrances that the market environment imposes. IBM is not an exemption to this as this multinational corporation is known for initiating efforts to maximise profit and minimise risks through strategizing.
This paper discusses in detail the research proposal of the market entry strategy of IBM in China. In particular, the research will focus on evaluating the most appropriate entry strategy and the basic entry decisions that IBM should consider prior to penetrating an otherwise highly-paternalistic, communist market like China. In this research proposal, the context and theme of the study are presented; the objectives of the study and the research statements are formulated. Here, vital concepts and questions are stated. Finally, the methodology to be used is discussed.
2.0 Theoretical Framework
The theory that supports the aims of this research is Hofstede's (1980) four value dimensions, which explain differences among work-related value patterns which affect the structuring and functioning of organizations. The four dimensions are the following: large versus small power distance; strong versus weak uncertainty avoidance; individualism versus collectivism; and masculinity versus femininity. According to Hofstede's analysis for China, the Chinese rank lower than any other Asian country in the Individualism (IDV) ranking, at 15 compared to an average of 24 (ITIM, 2003). This may be attributed, in part, to the high level of emphasis on a Collectivist society by the Communist rule, as compared to one of Individualism (ITIM, 2003).
China is proven to be a collectivist society (Triandis, 1994). Chinese are generally willing to give priority to the goals of the collective over their own personal goals, and emphasize their connection to the members of these collectives. Furthermore, they focus their trust and solidarity toward the norms of the members of their collectives, also called in group, and is often distrustful of out-group. The Chinese believes that individualism connotes selfishness, a lack of concern for others, and an aversion to group discipline, whereas collectivism is understood to affirm the solidarity of the group (Ho & Chiu, 1994).
3.0 Literature Review
The study will review a document and present related literatures. This will primarily include literatures from Hofstede, Hill and Jones and Johnson and Scholes. Basically, Hill and Jones discuss the basic entry decisions a company faces when going international. There are three basic decisions that a firm contemplating foreign expansion should take into account: which markets to enter, when to enter those markets, and on what scale.
a) Choosing foreign market. The choice must be made on the basis of an assessment of their long-run profit potential. As such, the attractiveness of a country as a potential market for an international business depends on balancing the benefits, costs, and risks associated with doing business in that country.
b) Timing of entry. The philosophy is: entry is early when an international business enters a foreign market before other foreign firms, and late when it enters after other international businesses have already established themselves.
c) Scale of entry and strategic commitments. Entering a market on a large scale involves the commitment of significant resources to that venture. Though not all companies have the resources, even some large companies prefer to enter foreign markets on a small scale and then gradually build their presence as they become familiar with the foreign market.
According to Hill and Jones (2001), there are five options that companies could ponder on. These are exporting, licensing, franchising, joint ventures, and the establishment of a wholly owned subsidiary.
Johnson and Scholes (2002) establish the role of strategic management incorporates the corporal understanding of the application of strategic positioning, the power of strategic choices and putting such strategies into practice. Such strategies are inherent for the companies which are diverting their attention from a domestic marketplace into the international scene.
A) Strategic positioning illustrates the implications of strategies on the external environment, the strategic capability of the organisations and the corporate expectations.
B) Strategic choices provide an array wherein the companies could decide what approaches, directions, or methods use in achieving business-level and corporate-level objectives. Expansions purport a greater profit for the company through business and corporate-levels strategies towards cost leadership, differentiation and competitive advantage.
C) The companies' effort to ensure that strategies are functioning is acknowledged as translating strategy into action.
Literatures about international marketing strategies will also be reviewed, as well as literatures about how a culture plays an important role in determining market strategies for multinational corporations so as the reader will have references about the different concepts and elements used in the study.
4.0 Statement of the Problem
The problem that will be addressed in this research is the most suitable market entry strategy of IBM in China. The key question to answer is: For IBM, how does the company could successfully penetrate the Chinese market? In lieu with this, the following specific questions will be answered.
1) What are the strategies that IBM should engage in entering the Chinese market?
2) What are the challenges and hindrances that IBM will face relating to Chinese market penetration?
3) How will the IBM combat the challenges imposed by the Chinese culture?
4) How important is succeeding to penetrate the Chinese market for IBM?
5.0 Research Objectives
The main purpose of the study is to analyse the most suitable market entry strategy that IBM could adopt in penetrating one of the most powerful yet convoluted markets in the world – the Chinese market. The following specific objectives will be addressed.
§ To evaluate how Chinese culture will affect the expansion strategies of IBM
§ To determine the challenges that IBM will expectantly face in penetrating the Chinese market
§ To scrutinise how the Chinese market penetration will provide benefits and advantages to IBM
6.0 Research Methodology
The study will explore the problem in a positivist view, using exploratory research strategy because it aims to know more about the phenomenon of employing market entry strategies. Exploratory research will enable the study to look at the problem in both descriptive and exploratory manner. It will look into the problem by exploring the views of different sets of respondents, as well as by exploring different literatures related with the study.
This research is also cross-sectional because of limited time. This research is a study of a particular phenomenon (or phenomena) at a particular time. (Saunders et al, 2003) Accordingly, cross-sectional studies often employ the survey strategy, and they may be seeking to describe the incidence of a phenomenon or to compare factors in different organizations.
In this study, primary and secondary research will be both incorporated. The reason for this is to be able to provide adequate discussion for the readers that will help them understand more about the issue and the different variables that involve with it. The primary data for the study will be represented by the survey results that will be acquired from the respondents. On the other hand, the literature reviews to be presented in the second chapter of the study will represent the secondary data of the study.
Essay on the Role Played by Economics in the process of development
Introduction
On the model of physics and mathematics, for more than a century now economics has been advanced and practiced as a science, though it wasn’t always so. Economics was viewed as a branch of moral philosophy astonishingly under-develop by earlier philosophers from Adam Smith’s Inquiry, into the nature and the causes of the Wealth of Nations in 1776, thus until it well after the publication of John Stuart Mill’s Principles of Political Economy in 1848. Yet it is true, that it seems hardly possible that before the time of Adam Smith no classic author, no Aristotle, not Aquinas, not Bacon nor Descartes that had been asked regarding the cause of the wealth of nations in any sustained and fruitful was.
Neither person nor property being safe from marauders, brigands, and feuding princes, but the problems of political order and the rule of law were of such importance, whether in Europe or in other places on the planet that the development of economics required the prior development of politics and law. Had it been successfully pursued in earlier, poorer centuries, such an inquiry may well have been of great social utility. As we all know that, economics is very important in our daily ways of living. Economics is the study of how people choose to use resources. These resources are the time, talent people have available, the land, equipment, buildings and other tools on hand, and the knowledge of how to combine them to create useful products and services. Economics also includes the study of labor, land, and investments, income, of money, and production and of taxes and government expenditures. Economics also addresses the collective behavior of business and industries, governments and countries, although the behavior of individuals is important, and the globe as a whole. Macroeconomics and Microeconomics are the two points of view that are essential in understanding most economic phenomena. Macroeconomics is considered aggregate outcomes, while microeconomics starts by thinking about how individuals make decisions. To improve well being, often people appear to use their resources. Well-being includes the satisfaction people gain from the products and services they choose to consume, from their time spent in leisure and with family and community as well as in jobs, and the security and services provided by effective governments.
How much time to devote to work, to school, and to leisure, are important choices involve, others are how many dollars to spend and how many to save, how to combine resources to produce goods and services, and how to vote and shape the level of taxes and the role of government. Why those ends are chosen lies outside the domain of economists. According to Gary Becker, economics define as the study of the allocation of scarce means to satisfy competing ends. Economics is the science of the means to be applied for the attainment of ends chosen, as Ludwig von Mises wrote.
Economics in the process of development
In the process of development, economics play an important role in this world, knowing and studying economics is needed because we as individuals and a society experience scarcity (of raw materials, of goods and services, of time, and so on) in relationship to our ever growing needs and wants. Economics go in hand in the process of growing in the development and to be in progress. Through economics it views and examines how we make choices. With this, essentially it provides a way of understanding on how to make best use of natural resources, machinery, and people’s work efforts. Between various goals and anticipate the outcomes of changes in governmental policies, economics helps us examine trade-offs, so as with company policies, or composition of the population, and so on. Economics is everywhere, almost all issues of public and private policy involve economics and so do your own individual choices.
Through economics, we understand the basic concepts of consumer economics, understands the traditional command and market economic systems, thus we also able to understand the types of business ownership and types of market structures, economics play the role in financial institutions in saving, investing, and borrowing. As mention above about the meaning of economics, in addition to that economics also describe as the study of humans behaving in response to having only limited resources to fulfill unlimited wants and needs. Economics has a great impact on decision-making, by making good decision, people have incentive to get ahead, and this is another aspect of basic economics the decision-making. Decision –making is very important in our daily life, every decision we make uses up money, time, or both. In the process of development, decision-making is one of the parts that have to be implemented and needed to obtain a good output. In decision-making the person may consider the opportunity cost, tradeoff and projected cost of that decision. Economics involves choices, decisions can be categorized namely; heroic, threshold, or incremental. In every aspect economics is present like in business, health sector, education, and in decision making. However, there is good news that economics can tell us the likely results of a sales tax. As a matter of fact, it is also as a scientific discipline. It provides extremely useful analytical tools.
By this, an individual, a group may have a framework for understanding human behavior in the areas of getting and spending money, by which it occupies the majority of most people’s waking hours. It deals with fundamental, often life-or-death issues. That is why economics is important. Through economics, we are able to know the status in our country. Economics is about giving solution in our daily problems in our means of livelihood. It does not only tackle about on how to get resources but as well as on doing some decisions. As a member in the family, and in the society, we can see the essence of economics in every aspect in our life, because we are making decision everyday. Thus provides a rich context in making decisions in business, professional, and financial life. As ocean is to fish, economics is to business. It is the environment in which business operates, because the better you know about this environment, the more that you will be functioning as an analyst, manager and a decision-maker. Economics, its challenge lies in its mysteries. Dealing with the process of development, the role of economics play a significant great value to human kind, in our economy, business, market and everywhere, with the supply and demand we have, thus economics get involve on its process. We don’t know if a federal tax will be limit will help the economy grow. We also don’t know when will be next expansion or recession will come. We don’t know how to overcome poverty, hunger, crime, and other evils rooted in economic reality, since economics most concerned with these matters, and thus it will equipped to help us deal with them. In the arena of human capital, the ultimate drama in economics is acted out. In the field of economics, in recent years, in fact, the most interesting developments have come with the new attention paid to moral factors in economic progress.
As I mention above regarding economics is a branch of science, but if economics were not only a science, but if it is also a way off looking at reality and hence a way of thinking. For future generations of thinkers, modern economics offers enormous resources, and the possibilities for a new synthesis are immense. Speaking with modern economics it is not a modern medicine, it taught in either discipline ought to be the promotion of health, be as the human or the socio-economic organism. To understand the social world, economics unified in its approach. It is a social science that is at once very broad in its subject matter. Economics helps us in our every day living because it also studies the behavior of social systems include markets, corporations, legislatures, and families. Institutions between goals directed individuals, as this is the outcome of interactions. With the help of our economist in which they are the one who monitor and knows the process of it, economist is making a policy recommendations that they believe will make people better off. As our economy today we are facing every challenges and trials, problems, decision-making as I said earlier that it had a great impact in the field of economics. With these, many people learn to make exchange, or barter, to invest in other country make common goods, supply the needs of the people in which they are also basing the immediate demands of the people. Through economics a certain location would be in progress and could be develop.
If a certain country had a good economy they may lead to well progress, and can be a developing country, if one country is not able to utilize the needs of the people, and their economy is not good, then it might lead to shrinking boat. It is because economics basically focused on understanding the prices, competitive markets, like in Hong Kong, China, US, they have a very competitive market, and the interactions between markets as example market from the other country then negotiate with the other country with their supplies like the cell phone. Economic growth, monopolies and antitrust, income inequality, are important topics and the business cycle continue to be central areas of inquiry in economics. The subject matter of economics, recently, though, has broadened, that why economist today remarkable address a variety of social science questions. Economics in the process of development, it doesn’t only give a helping hand to the country but as well as for the students, professionals because it provides a background in banking, law, professional work in business and even medicine. Many students like to study economics because it plays an important role in our economy. Maybe other people would wondering if business is economics, economics and business are related but economics is not business and business is professional training ultimately aimed at making profits, and thus economics is a science. Economics also is not a policy, it is just that since we are dealing on our economy and helping on it, there are ways in which we also to follow, policy considerations is true that often motivate economic analyses. With regards to economic development, it is define as a process of change in which it focused on the betterment of the community, state or nation.
Through economics people tend to learn and know how to budget their money, they able to make decision on their own and through it all, economics helps in building a prosperous society, because economics is the foundation of all. Economics in the process of development, speaking with economic development, it is also in the development of economic wealth, for the well being of their inhabitants. It is an effort that seeks in order to improve and well develop the quality of life. In economic development there are three models but there are also 3 building blocks we have first, the production function, saving function and labor supply function which is related to population growth. Three models are Harrod-Domar model focus on growth rate of gross domestic product, it also used in economic planning and exogenous growth model which focus on role of technological change.
Conclusion
To end it therefore I conclude that economics really play a great role in our economy, in the process of development, because through this people we able to determine the process on our economy, the prices, the supply and demands, the allocation of a certain state. Decision-making is essential in our everyday life as this enable us to be wise and knows to budget it. We keep on questioning on how the does it happens, the status and the process of out money, the goods as with this we knew through economics, as it is the study of labor, land, and investments, income, of money, and production and of taxes and government expenditures. People ask and keep on complaining, why did the price of oil goes up, unemployment and others, questioning how companies will be able to continue producing their products and etc, still economics is just revolving in our life. As with this economics really plays an important role, it plays a central role in our every life. All these questions were just revolving around economics, economics is all around us.
On the model of physics and mathematics, for more than a century now economics has been advanced and practiced as a science, though it wasn’t always so. Economics was viewed as a branch of moral philosophy astonishingly under-develop by earlier philosophers from Adam Smith’s Inquiry, into the nature and the causes of the Wealth of Nations in 1776, thus until it well after the publication of John Stuart Mill’s Principles of Political Economy in 1848. Yet it is true, that it seems hardly possible that before the time of Adam Smith no classic author, no Aristotle, not Aquinas, not Bacon nor Descartes that had been asked regarding the cause of the wealth of nations in any sustained and fruitful was.
Neither person nor property being safe from marauders, brigands, and feuding princes, but the problems of political order and the rule of law were of such importance, whether in Europe or in other places on the planet that the development of economics required the prior development of politics and law. Had it been successfully pursued in earlier, poorer centuries, such an inquiry may well have been of great social utility. As we all know that, economics is very important in our daily ways of living. Economics is the study of how people choose to use resources. These resources are the time, talent people have available, the land, equipment, buildings and other tools on hand, and the knowledge of how to combine them to create useful products and services. Economics also includes the study of labor, land, and investments, income, of money, and production and of taxes and government expenditures. Economics also addresses the collective behavior of business and industries, governments and countries, although the behavior of individuals is important, and the globe as a whole. Macroeconomics and Microeconomics are the two points of view that are essential in understanding most economic phenomena. Macroeconomics is considered aggregate outcomes, while microeconomics starts by thinking about how individuals make decisions. To improve well being, often people appear to use their resources. Well-being includes the satisfaction people gain from the products and services they choose to consume, from their time spent in leisure and with family and community as well as in jobs, and the security and services provided by effective governments.
How much time to devote to work, to school, and to leisure, are important choices involve, others are how many dollars to spend and how many to save, how to combine resources to produce goods and services, and how to vote and shape the level of taxes and the role of government. Why those ends are chosen lies outside the domain of economists. According to Gary Becker, economics define as the study of the allocation of scarce means to satisfy competing ends. Economics is the science of the means to be applied for the attainment of ends chosen, as Ludwig von Mises wrote.
Economics in the process of development
In the process of development, economics play an important role in this world, knowing and studying economics is needed because we as individuals and a society experience scarcity (of raw materials, of goods and services, of time, and so on) in relationship to our ever growing needs and wants. Economics go in hand in the process of growing in the development and to be in progress. Through economics it views and examines how we make choices. With this, essentially it provides a way of understanding on how to make best use of natural resources, machinery, and people’s work efforts. Between various goals and anticipate the outcomes of changes in governmental policies, economics helps us examine trade-offs, so as with company policies, or composition of the population, and so on. Economics is everywhere, almost all issues of public and private policy involve economics and so do your own individual choices.
Through economics, we understand the basic concepts of consumer economics, understands the traditional command and market economic systems, thus we also able to understand the types of business ownership and types of market structures, economics play the role in financial institutions in saving, investing, and borrowing. As mention above about the meaning of economics, in addition to that economics also describe as the study of humans behaving in response to having only limited resources to fulfill unlimited wants and needs. Economics has a great impact on decision-making, by making good decision, people have incentive to get ahead, and this is another aspect of basic economics the decision-making. Decision –making is very important in our daily life, every decision we make uses up money, time, or both. In the process of development, decision-making is one of the parts that have to be implemented and needed to obtain a good output. In decision-making the person may consider the opportunity cost, tradeoff and projected cost of that decision. Economics involves choices, decisions can be categorized namely; heroic, threshold, or incremental. In every aspect economics is present like in business, health sector, education, and in decision making. However, there is good news that economics can tell us the likely results of a sales tax. As a matter of fact, it is also as a scientific discipline. It provides extremely useful analytical tools.
By this, an individual, a group may have a framework for understanding human behavior in the areas of getting and spending money, by which it occupies the majority of most people’s waking hours. It deals with fundamental, often life-or-death issues. That is why economics is important. Through economics, we are able to know the status in our country. Economics is about giving solution in our daily problems in our means of livelihood. It does not only tackle about on how to get resources but as well as on doing some decisions. As a member in the family, and in the society, we can see the essence of economics in every aspect in our life, because we are making decision everyday. Thus provides a rich context in making decisions in business, professional, and financial life. As ocean is to fish, economics is to business. It is the environment in which business operates, because the better you know about this environment, the more that you will be functioning as an analyst, manager and a decision-maker. Economics, its challenge lies in its mysteries. Dealing with the process of development, the role of economics play a significant great value to human kind, in our economy, business, market and everywhere, with the supply and demand we have, thus economics get involve on its process. We don’t know if a federal tax will be limit will help the economy grow. We also don’t know when will be next expansion or recession will come. We don’t know how to overcome poverty, hunger, crime, and other evils rooted in economic reality, since economics most concerned with these matters, and thus it will equipped to help us deal with them. In the arena of human capital, the ultimate drama in economics is acted out. In the field of economics, in recent years, in fact, the most interesting developments have come with the new attention paid to moral factors in economic progress.
As I mention above regarding economics is a branch of science, but if economics were not only a science, but if it is also a way off looking at reality and hence a way of thinking. For future generations of thinkers, modern economics offers enormous resources, and the possibilities for a new synthesis are immense. Speaking with modern economics it is not a modern medicine, it taught in either discipline ought to be the promotion of health, be as the human or the socio-economic organism. To understand the social world, economics unified in its approach. It is a social science that is at once very broad in its subject matter. Economics helps us in our every day living because it also studies the behavior of social systems include markets, corporations, legislatures, and families. Institutions between goals directed individuals, as this is the outcome of interactions. With the help of our economist in which they are the one who monitor and knows the process of it, economist is making a policy recommendations that they believe will make people better off. As our economy today we are facing every challenges and trials, problems, decision-making as I said earlier that it had a great impact in the field of economics. With these, many people learn to make exchange, or barter, to invest in other country make common goods, supply the needs of the people in which they are also basing the immediate demands of the people. Through economics a certain location would be in progress and could be develop.
If a certain country had a good economy they may lead to well progress, and can be a developing country, if one country is not able to utilize the needs of the people, and their economy is not good, then it might lead to shrinking boat. It is because economics basically focused on understanding the prices, competitive markets, like in Hong Kong, China, US, they have a very competitive market, and the interactions between markets as example market from the other country then negotiate with the other country with their supplies like the cell phone. Economic growth, monopolies and antitrust, income inequality, are important topics and the business cycle continue to be central areas of inquiry in economics. The subject matter of economics, recently, though, has broadened, that why economist today remarkable address a variety of social science questions. Economics in the process of development, it doesn’t only give a helping hand to the country but as well as for the students, professionals because it provides a background in banking, law, professional work in business and even medicine. Many students like to study economics because it plays an important role in our economy. Maybe other people would wondering if business is economics, economics and business are related but economics is not business and business is professional training ultimately aimed at making profits, and thus economics is a science. Economics also is not a policy, it is just that since we are dealing on our economy and helping on it, there are ways in which we also to follow, policy considerations is true that often motivate economic analyses. With regards to economic development, it is define as a process of change in which it focused on the betterment of the community, state or nation.
Through economics people tend to learn and know how to budget their money, they able to make decision on their own and through it all, economics helps in building a prosperous society, because economics is the foundation of all. Economics in the process of development, speaking with economic development, it is also in the development of economic wealth, for the well being of their inhabitants. It is an effort that seeks in order to improve and well develop the quality of life. In economic development there are three models but there are also 3 building blocks we have first, the production function, saving function and labor supply function which is related to population growth. Three models are Harrod-Domar model focus on growth rate of gross domestic product, it also used in economic planning and exogenous growth model which focus on role of technological change.
Conclusion
To end it therefore I conclude that economics really play a great role in our economy, in the process of development, because through this people we able to determine the process on our economy, the prices, the supply and demands, the allocation of a certain state. Decision-making is essential in our everyday life as this enable us to be wise and knows to budget it. We keep on questioning on how the does it happens, the status and the process of out money, the goods as with this we knew through economics, as it is the study of labor, land, and investments, income, of money, and production and of taxes and government expenditures. People ask and keep on complaining, why did the price of oil goes up, unemployment and others, questioning how companies will be able to continue producing their products and etc, still economics is just revolving in our life. As with this economics really plays an important role, it plays a central role in our every life. All these questions were just revolving around economics, economics is all around us.
Essay on the Role Played by Economics in the process of development
Introduction
On the model of physics and mathematics, for more than a century now economics has been advanced and practiced as a science, though it wasn’t always so. Economics was viewed as a branch of moral philosophy astonishingly under-develop by earlier philosophers from Adam Smith’s Inquiry, into the nature and the causes of the Wealth of Nations in 1776, thus until it well after the publication of John Stuart Mill’s Principles of Political Economy in 1848. Yet it is true, that it seems hardly possible that before the time of Adam Smith no classic author, no Aristotle, not Aquinas, not Bacon nor Descartes that had been asked regarding the cause of the wealth of nations in any sustained and fruitful was.
Neither person nor property being safe from marauders, brigands, and feuding princes, but the problems of political order and the rule of law were of such importance, whether in Europe or in other places on the planet that the development of economics required the prior development of politics and law. Had it been successfully pursued in earlier, poorer centuries, such an inquiry may well have been of great social utility. As we all know that, economics is very important in our daily ways of living. Economics is the study of how people choose to use resources. These resources are the time, talent people have available, the land, equipment, buildings and other tools on hand, and the knowledge of how to combine them to create useful products and services. Economics also includes the study of labor, land, and investments, income, of money, and production and of taxes and government expenditures. Economics also addresses the collective behavior of business and industries, governments and countries, although the behavior of individuals is important, and the globe as a whole. Macroeconomics and Microeconomics are the two points of view that are essential in understanding most economic phenomena. Macroeconomics is considered aggregate outcomes, while microeconomics starts by thinking about how individuals make decisions. To improve well being, often people appear to use their resources. Well-being includes the satisfaction people gain from the products and services they choose to consume, from their time spent in leisure and with family and community as well as in jobs, and the security and services provided by effective governments.
How much time to devote to work, to school, and to leisure, are important choices involve, others are how many dollars to spend and how many to save, how to combine resources to produce goods and services, and how to vote and shape the level of taxes and the role of government. Why those ends are chosen lies outside the domain of economists. According to Gary Becker, economics define as the study of the allocation of scarce means to satisfy competing ends. Economics is the science of the means to be applied for the attainment of ends chosen, as Ludwig von Mises wrote.
Economics in the process of development
In the process of development, economics play an important role in this world, knowing and studying economics is needed because we as individuals and a society experience scarcity (of raw materials, of goods and services, of time, and so on) in relationship to our ever growing needs and wants. Economics go in hand in the process of growing in the development and to be in progress. Through economics it views and examines how we make choices. With this, essentially it provides a way of understanding on how to make best use of natural resources, machinery, and people’s work efforts. Between various goals and anticipate the outcomes of changes in governmental policies, economics helps us examine trade-offs, so as with company policies, or composition of the population, and so on. Economics is everywhere, almost all issues of public and private policy involve economics and so do your own individual choices.
Through economics, we understand the basic concepts of consumer economics, understands the traditional command and market economic systems, thus we also able to understand the types of business ownership and types of market structures, economics play the role in financial institutions in saving, investing, and borrowing. As mention above about the meaning of economics, in addition to that economics also describe as the study of humans behaving in response to having only limited resources to fulfill unlimited wants and needs. Economics has a great impact on decision-making, by making good decision, people have incentive to get ahead, and this is another aspect of basic economics the decision-making. Decision –making is very important in our daily life, every decision we make uses up money, time, or both. In the process of development, decision-making is one of the parts that have to be implemented and needed to obtain a good output. In decision-making the person may consider the opportunity cost, tradeoff and projected cost of that decision. Economics involves choices, decisions can be categorized namely; heroic, threshold, or incremental. In every aspect economics is present like in business, health sector, education, and in decision making. However, there is good news that economics can tell us the likely results of a sales tax. As a matter of fact, it is also as a scientific discipline. It provides extremely useful analytical tools.
By this, an individual, a group may have a framework for understanding human behavior in the areas of getting and spending money, by which it occupies the majority of most people’s waking hours. It deals with fundamental, often life-or-death issues. That is why economics is important. Through economics, we are able to know the status in our country. Economics is about giving solution in our daily problems in our means of livelihood. It does not only tackle about on how to get resources but as well as on doing some decisions. As a member in the family, and in the society, we can see the essence of economics in every aspect in our life, because we are making decision everyday. Thus provides a rich context in making decisions in business, professional, and financial life. As ocean is to fish, economics is to business. It is the environment in which business operates, because the better you know about this environment, the more that you will be functioning as an analyst, manager and a decision-maker. Economics, its challenge lies in its mysteries. Dealing with the process of development, the role of economics play a significant great value to human kind, in our economy, business, market and everywhere, with the supply and demand we have, thus economics get involve on its process. We don’t know if a federal tax will be limit will help the economy grow. We also don’t know when will be next expansion or recession will come. We don’t know how to overcome poverty, hunger, crime, and other evils rooted in economic reality, since economics most concerned with these matters, and thus it will equipped to help us deal with them. In the arena of human capital, the ultimate drama in economics is acted out. In the field of economics, in recent years, in fact, the most interesting developments have come with the new attention paid to moral factors in economic progress.
As I mention above regarding economics is a branch of science, but if economics were not only a science, but if it is also a way off looking at reality and hence a way of thinking. For future generations of thinkers, modern economics offers enormous resources, and the possibilities for a new synthesis are immense. Speaking with modern economics it is not a modern medicine, it taught in either discipline ought to be the promotion of health, be as the human or the socio-economic organism. To understand the social world, economics unified in its approach. It is a social science that is at once very broad in its subject matter. Economics helps us in our every day living because it also studies the behavior of social systems include markets, corporations, legislatures, and families. Institutions between goals directed individuals, as this is the outcome of interactions. With the help of our economist in which they are the one who monitor and knows the process of it, economist is making a policy recommendations that they believe will make people better off. As our economy today we are facing every challenges and trials, problems, decision-making as I said earlier that it had a great impact in the field of economics. With these, many people learn to make exchange, or barter, to invest in other country make common goods, supply the needs of the people in which they are also basing the immediate demands of the people. Through economics a certain location would be in progress and could be develop.
If a certain country had a good economy they may lead to well progress, and can be a developing country, if one country is not able to utilize the needs of the people, and their economy is not good, then it might lead to shrinking boat. It is because economics basically focused on understanding the prices, competitive markets, like in Hong Kong, China, US, they have a very competitive market, and the interactions between markets as example market from the other country then negotiate with the other country with their supplies like the cell phone. Economic growth, monopolies and antitrust, income inequality, are important topics and the business cycle continue to be central areas of inquiry in economics. The subject matter of economics, recently, though, has broadened, that why economist today remarkable address a variety of social science questions. Economics in the process of development, it doesn’t only give a helping hand to the country but as well as for the students, professionals because it provides a background in banking, law, professional work in business and even medicine. Many students like to study economics because it plays an important role in our economy. Maybe other people would wondering if business is economics, economics and business are related but economics is not business and business is professional training ultimately aimed at making profits, and thus economics is a science. Economics also is not a policy, it is just that since we are dealing on our economy and helping on it, there are ways in which we also to follow, policy considerations is true that often motivate economic analyses. With regards to economic development, it is define as a process of change in which it focused on the betterment of the community, state or nation.
Through economics people tend to learn and know how to budget their money, they able to make decision on their own and through it all, economics helps in building a prosperous society, because economics is the foundation of all. Economics in the process of development, speaking with economic development, it is also in the development of economic wealth, for the well being of their inhabitants. It is an effort that seeks in order to improve and well develop the quality of life. In economic development there are three models but there are also 3 building blocks we have first, the production function, saving function and labor supply function which is related to population growth. Three models are Harrod-Domar model focus on growth rate of gross domestic product, it also used in economic planning and exogenous growth model which focus on role of technological change.
Conclusion
To end it therefore I conclude that economics really play a great role in our economy, in the process of development, because through this people we able to determine the process on our economy, the prices, the supply and demands, the allocation of a certain state. Decision-making is essential in our everyday life as this enable us to be wise and knows to budget it. We keep on questioning on how the does it happens, the status and the process of out money, the goods as with this we knew through economics, as it is the study of labor, land, and investments, income, of money, and production and of taxes and government expenditures. People ask and keep on complaining, why did the price of oil goes up, unemployment and others, questioning how companies will be able to continue producing their products and etc, still economics is just revolving in our life. As with this economics really plays an important role, it plays a central role in our every life. All these questions were just revolving around economics, economics is all around us.
On the model of physics and mathematics, for more than a century now economics has been advanced and practiced as a science, though it wasn’t always so. Economics was viewed as a branch of moral philosophy astonishingly under-develop by earlier philosophers from Adam Smith’s Inquiry, into the nature and the causes of the Wealth of Nations in 1776, thus until it well after the publication of John Stuart Mill’s Principles of Political Economy in 1848. Yet it is true, that it seems hardly possible that before the time of Adam Smith no classic author, no Aristotle, not Aquinas, not Bacon nor Descartes that had been asked regarding the cause of the wealth of nations in any sustained and fruitful was.
Neither person nor property being safe from marauders, brigands, and feuding princes, but the problems of political order and the rule of law were of such importance, whether in Europe or in other places on the planet that the development of economics required the prior development of politics and law. Had it been successfully pursued in earlier, poorer centuries, such an inquiry may well have been of great social utility. As we all know that, economics is very important in our daily ways of living. Economics is the study of how people choose to use resources. These resources are the time, talent people have available, the land, equipment, buildings and other tools on hand, and the knowledge of how to combine them to create useful products and services. Economics also includes the study of labor, land, and investments, income, of money, and production and of taxes and government expenditures. Economics also addresses the collective behavior of business and industries, governments and countries, although the behavior of individuals is important, and the globe as a whole. Macroeconomics and Microeconomics are the two points of view that are essential in understanding most economic phenomena. Macroeconomics is considered aggregate outcomes, while microeconomics starts by thinking about how individuals make decisions. To improve well being, often people appear to use their resources. Well-being includes the satisfaction people gain from the products and services they choose to consume, from their time spent in leisure and with family and community as well as in jobs, and the security and services provided by effective governments.
How much time to devote to work, to school, and to leisure, are important choices involve, others are how many dollars to spend and how many to save, how to combine resources to produce goods and services, and how to vote and shape the level of taxes and the role of government. Why those ends are chosen lies outside the domain of economists. According to Gary Becker, economics define as the study of the allocation of scarce means to satisfy competing ends. Economics is the science of the means to be applied for the attainment of ends chosen, as Ludwig von Mises wrote.
Economics in the process of development
In the process of development, economics play an important role in this world, knowing and studying economics is needed because we as individuals and a society experience scarcity (of raw materials, of goods and services, of time, and so on) in relationship to our ever growing needs and wants. Economics go in hand in the process of growing in the development and to be in progress. Through economics it views and examines how we make choices. With this, essentially it provides a way of understanding on how to make best use of natural resources, machinery, and people’s work efforts. Between various goals and anticipate the outcomes of changes in governmental policies, economics helps us examine trade-offs, so as with company policies, or composition of the population, and so on. Economics is everywhere, almost all issues of public and private policy involve economics and so do your own individual choices.
Through economics, we understand the basic concepts of consumer economics, understands the traditional command and market economic systems, thus we also able to understand the types of business ownership and types of market structures, economics play the role in financial institutions in saving, investing, and borrowing. As mention above about the meaning of economics, in addition to that economics also describe as the study of humans behaving in response to having only limited resources to fulfill unlimited wants and needs. Economics has a great impact on decision-making, by making good decision, people have incentive to get ahead, and this is another aspect of basic economics the decision-making. Decision –making is very important in our daily life, every decision we make uses up money, time, or both. In the process of development, decision-making is one of the parts that have to be implemented and needed to obtain a good output. In decision-making the person may consider the opportunity cost, tradeoff and projected cost of that decision. Economics involves choices, decisions can be categorized namely; heroic, threshold, or incremental. In every aspect economics is present like in business, health sector, education, and in decision making. However, there is good news that economics can tell us the likely results of a sales tax. As a matter of fact, it is also as a scientific discipline. It provides extremely useful analytical tools.
By this, an individual, a group may have a framework for understanding human behavior in the areas of getting and spending money, by which it occupies the majority of most people’s waking hours. It deals with fundamental, often life-or-death issues. That is why economics is important. Through economics, we are able to know the status in our country. Economics is about giving solution in our daily problems in our means of livelihood. It does not only tackle about on how to get resources but as well as on doing some decisions. As a member in the family, and in the society, we can see the essence of economics in every aspect in our life, because we are making decision everyday. Thus provides a rich context in making decisions in business, professional, and financial life. As ocean is to fish, economics is to business. It is the environment in which business operates, because the better you know about this environment, the more that you will be functioning as an analyst, manager and a decision-maker. Economics, its challenge lies in its mysteries. Dealing with the process of development, the role of economics play a significant great value to human kind, in our economy, business, market and everywhere, with the supply and demand we have, thus economics get involve on its process. We don’t know if a federal tax will be limit will help the economy grow. We also don’t know when will be next expansion or recession will come. We don’t know how to overcome poverty, hunger, crime, and other evils rooted in economic reality, since economics most concerned with these matters, and thus it will equipped to help us deal with them. In the arena of human capital, the ultimate drama in economics is acted out. In the field of economics, in recent years, in fact, the most interesting developments have come with the new attention paid to moral factors in economic progress.
As I mention above regarding economics is a branch of science, but if economics were not only a science, but if it is also a way off looking at reality and hence a way of thinking. For future generations of thinkers, modern economics offers enormous resources, and the possibilities for a new synthesis are immense. Speaking with modern economics it is not a modern medicine, it taught in either discipline ought to be the promotion of health, be as the human or the socio-economic organism. To understand the social world, economics unified in its approach. It is a social science that is at once very broad in its subject matter. Economics helps us in our every day living because it also studies the behavior of social systems include markets, corporations, legislatures, and families. Institutions between goals directed individuals, as this is the outcome of interactions. With the help of our economist in which they are the one who monitor and knows the process of it, economist is making a policy recommendations that they believe will make people better off. As our economy today we are facing every challenges and trials, problems, decision-making as I said earlier that it had a great impact in the field of economics. With these, many people learn to make exchange, or barter, to invest in other country make common goods, supply the needs of the people in which they are also basing the immediate demands of the people. Through economics a certain location would be in progress and could be develop.
If a certain country had a good economy they may lead to well progress, and can be a developing country, if one country is not able to utilize the needs of the people, and their economy is not good, then it might lead to shrinking boat. It is because economics basically focused on understanding the prices, competitive markets, like in Hong Kong, China, US, they have a very competitive market, and the interactions between markets as example market from the other country then negotiate with the other country with their supplies like the cell phone. Economic growth, monopolies and antitrust, income inequality, are important topics and the business cycle continue to be central areas of inquiry in economics. The subject matter of economics, recently, though, has broadened, that why economist today remarkable address a variety of social science questions. Economics in the process of development, it doesn’t only give a helping hand to the country but as well as for the students, professionals because it provides a background in banking, law, professional work in business and even medicine. Many students like to study economics because it plays an important role in our economy. Maybe other people would wondering if business is economics, economics and business are related but economics is not business and business is professional training ultimately aimed at making profits, and thus economics is a science. Economics also is not a policy, it is just that since we are dealing on our economy and helping on it, there are ways in which we also to follow, policy considerations is true that often motivate economic analyses. With regards to economic development, it is define as a process of change in which it focused on the betterment of the community, state or nation.
Through economics people tend to learn and know how to budget their money, they able to make decision on their own and through it all, economics helps in building a prosperous society, because economics is the foundation of all. Economics in the process of development, speaking with economic development, it is also in the development of economic wealth, for the well being of their inhabitants. It is an effort that seeks in order to improve and well develop the quality of life. In economic development there are three models but there are also 3 building blocks we have first, the production function, saving function and labor supply function which is related to population growth. Three models are Harrod-Domar model focus on growth rate of gross domestic product, it also used in economic planning and exogenous growth model which focus on role of technological change.
Conclusion
To end it therefore I conclude that economics really play a great role in our economy, in the process of development, because through this people we able to determine the process on our economy, the prices, the supply and demands, the allocation of a certain state. Decision-making is essential in our everyday life as this enable us to be wise and knows to budget it. We keep on questioning on how the does it happens, the status and the process of out money, the goods as with this we knew through economics, as it is the study of labor, land, and investments, income, of money, and production and of taxes and government expenditures. People ask and keep on complaining, why did the price of oil goes up, unemployment and others, questioning how companies will be able to continue producing their products and etc, still economics is just revolving in our life. As with this economics really plays an important role, it plays a central role in our every life. All these questions were just revolving around economics, economics is all around us.
Report on Diversity Management
1.0 Introduction
The demography of the workplace is changing and will continue to do so over the years. This condition is known as the workplace diversity. Encarta Dictionary defined diversity as ethnic variety as well as socioeconomic and gender variety in a group, institution or society. Diversity could also mean differences in physical abilities, learning and communication styles. By its very nature, conflict is inherent to diversity. Put simply, diversity is the uniqueness of all individuals. When applied to workplace, these differences can affect and worsen organizational performance.
Diversity then is a challenge to many business leaders and managers though it is necessary to note that diversity knows no organizational boundary and limitations and is not positional. As such, diversity can be a problem but also a solution, a detriment but also a benefit and destructive but also constructive. The challenge then is to extract the very essence of diversity and strategically manage it for the advancement of the people and the organization.
2.0 Diversity in the Workplace
2.1 The importance of diversity
According to Sonneschein (1999), diversity means differences and these differences could create challenges for the organization. But nevertheless, these differences could also open avenues for immense opportunities. Diversity at the very least could help the organizations in creating new and more innovative products and services. As well, diversity could mean better ways to meet the demands and needs of customers and clients and thus better serve the community where they belong and serves for (p. 3).
In particular, diversity enables a wider range of views to exist in an organization, including those views that could challenge the status quo from all sides; focuses and strengthens an organization’s core values; simulates social, economic, intellectual and emotional growth and helps an organization understand its place in the global community. Manifestly, diversity is instrumental in organizational change and is effective for delivering conformity to the customer base. Diversity is an effective tool in minimizing turnover costs and maximizing return on investment (pp. 3-4).
Another importance of diversity is the achievement of the sp-called competitive edge. A common knowledge is that the skills, expertise and competencies of the workforce are the most important resource to any organization. These are translated then into creative strategies that will deliver the organization an utmost position. Diversity is the key whereby the combination of the employees’ know-how, proficiency and experience will be the key elements.
Because the changes in demographics create tension, an effective diversity management is critical. These tensions challenge the conditioning and perceptions of people about the nature of things and tension creates both dangers and opportunities. To counter, diversity management must be integrated into the overall strategic plan and must be applied at every levels of the organization.
2.2 The importance of diversity management
The principles of diversity management (Diversity Management) are as follows: establishment of business strategies for effective management of a diverse workforce; creation of positive work environment; promotion of personal and professional development; empowerment of people to reach their full potential; attraction of talent; and removal of barriers that hinder progress. As such, there are six strands that diversity management must overcome: race, age, gender, sexual orientation, disability and religion or belief.
Diversity management is not about reducing standards, removing prejudices but rather recognizing that they exist, a distraction from more important issues such as quality, language and political correctness and obtaining a ‘quota of diverse individuals. Diversity management as defined by Kandola and Fullerton (1998) is the acceptance that the workforce is consists of a diverse population of people with visible and non-visible differences and that harnessing these differences will create a productive environment wherein everyone feels valued, talents are being fully utilised and organizational goals are met.
There are four essential phases for managing a diverse workforce. First is communicating commitment to diversity so that every employee would be aware of the diversity strategy, making it a part of the workplace culture. Second is the diversity management assessment that is accomplished by answering the ten questions to test your diversity management (refer to Table 1) ranging from documentations to community reflections. Third is the evaluation of effectiveness and impact or the assessment of how healthy and sound your diversity management. Next is the development of action plan that supports the policies with clear measurable objectives and targets (Diversity Management Assessment, 2007).
There are business and ethical case that could be considered as the strategies for diversity management. Recruitment and retention of staff; improved moral and job satisfaction; positive public image and access to untapped markets are for business case. For ethical case, this encompasses the changing social values and public expectations especially about ethical investment, fair trade, individual human rights and environmental impact as well as promotion of inclusion, respect, equity and openness (Chartered Management Institute, 2007).
Effective diversity management will enable the organizations towards improving organizational performance, helping prevent unlawful discrimination or harassment incidents, improving workplace relations, building more effective work teams, improving organizational problem-solving, improving customer service and enhancing recruitment efforts. All told, diversity management functions as remover of barriers and as catalyst for achieving workplace balance (Diversity Management).
2.3 The barriers towards a more balanced workforce
Diversity inflicts challenges prior to reaping its benefits. Examples of this are racism, sexism and ageism. Homophobia, in addition, results in disrupts the workplace; prevents the team in accomplishing goals and keeps the organization from achieving its missions. Conflicts at individual, collegiate and organizational levels would be then possible. Diversity therefore has an impact on leadership and management (Sonneschein, p. 4).
Aside from these, there are also organizational challenges brought by diversity. These are: management complexity, fairness, individual differences versus unanimity and identity and loyalty (p. 5). First, diversity is central to the premise that it is easier to manager similar-minded people. Without diversity, the homogenous organization could likely to experience lesser conflicts since there is no need to adjust managerial and leadership styles, to listen in different ways to organizational members, or to find new approaches in doing tasks.
Second, diversity also raises questions regarding fairness. This is because of the fact that no one can be fair when different cultures define fairness in different ways. Moreover, the organization must design mechanisms that ensure equal access to the workplace, protect individuals and groups against discrimination and equitably treat every individual.
Third, people have presupposition that it is easier to work with people with similar background with ours. Oppositely, it is rather difficult to learn to work with people of different styles, to understand new perspectives and to adjust contrasting attitudes.
Finally, with no diversity people do not need to redefine themselves constantly and there is also no need to reassess and realign own values with their values and therefore wonder if these people are could be trusted or not and if they will stay with the organization or not.
Apart, there are also possible barriers in the form of: limiting area of consideration, lack of diverse applicant pool in key positions, lack of diversity in the senior ranks, categorizing people in certain position, always recruiting from same source, grooming/developing a single individual, pre-selection and “golf course” meetings (Diversity Management).
These activities center the human resource management (HRM) functions especially on recruiting, selecting and hiring people. As Gottfredson puts it, putting restrictions prior to accepting would-be workers to organizations is therefore irrelevant. Aside from being unjust, treating people differently would only create additional barriers between groups within the organization and disintegrate the morale that is necessary for high levels of performance unless these organizations works on removing barriers (in Jackson et al, 1992, p. 289).
2.4 Diversity management in UK
Europeans in specifically knows the fundamental nature of diversity management more than rising above these workplace barriers. They are well aware that diversity could be an asset for organizations since diversity is said to be the mindset of the organization, the climate of an organization and the different perspectives people bring to an organization (Reichenberg, 2001, p. 1). However, not all European countries or even European Union (EU) members easily accept the concept of diversity management.
In the United Kingdom (UK) alone, there are concerns about the efficacy and legitimacy of diversity management as an approach in the pursuit of equality and ending discrimination within organizations. Diversity management is a ‘soft option’ for those who would choose not to embrace political and social justice and discrimination and fairness issues that are championed by traditional equal opportunity schemas. Diversity management is also viewed as normative, utilitarian and individualistic (cited in Cornelius, 2002, p. 32).
A report by the EU Agency for Fundamental Rights (FRA) reflects the current status or level of acceptance of diversity management in UK. FRA found out that workplace discrimination prevails in UK as evidenced by statistics of inequality, complaints and court cases and research evidence. For instance, there are 3, 173 court and tribunal cases against employment discrimination. When asked if there should be headscarf ban, UK agreed (29%) though it is much lower than France (78%) and Germany (54%).
To combat this, FRA initializes the six types of organizational policy that could help the organizations in improving public image and in reducing the risk of unlawful practices. These are training the immigrants/minorities, making cultural allowances, challenging racists attitudes, combating discrimination, equal opportunities policies with positive action and diversity management (Wrench, 2007). The difficulty would lie in here whereby the organizations may not be able to implement all this altogether especially if it will obstruct organizational productivity and performance.
EU by and large outlined the legal status of workers to avoid employment discrimination: citizens living and working within their own country of citizenship, citizens of an UE members state who work in another country within the Union, third country nationals who have full rights to residency and work in a members state, third country nationals who have leave to stay on the basis of a revocable work permit for a fixed period of time and undocumented or ‘illegal’ workers (Wrench, 2007). In lieu with this, the organizations could not comply with this because of the fact that still in each country there could be multiculturalism and guestworkers.
In ensuring that UK organizations are adhering to ‘a level playing field’ or Equality of Opportunity, the government implements a range of laws and guidance. Aside from the business case and ethical case discussed in 2.2, there are legal cases that shall govern the employers and employees. Since there are no ‘diversity acts’, a series of acts is the most plausible step that includes: Race Relations Act of 1976, Employment Equability Regulations 2006, Sex Discrimination Act 1975, Gender Equality Duty 2007, Gender Recognition Act 2004, Employment Equality Regulations 2003, Disability Discrimination Act 1995, Employment Equality regulations 2003 and Equality Act 2006.
Today, the Positive Action Model (Diagram 1) is just one of the advanced tools for the application of diversity management. This tool takes direct action against under representation in the workplace. Positive Action Model is consists of range of measures from which employers and other persons can lawfully take actions to help minority or disadvantaged groups to compete on equal terms for jobs, career development and training in the labour force where they are underrepresented.
3.0 Conclusion and Recommendation
In sum, this paper presents diversity as the core of organizational development that takes into account not just the people but also their actions; the principles and the business, ethical and legal case for organizations as fundamental to diversity management; and the steps should be taken into consideration. Further, the paper demonstrates the gradual acceptance of UK organizations regarding the concept of diversity management and what might be the probable violations to which the Positive Action Model is primarily designed to combat the discriminating acts. Nonetheless, there are two areas that is tended to be overlooked in general. These are the lack of universally accepted definition of the term diversity and the lack of comprehensive law or act that will govern organizations. This paper recommends that there shall be a convention that will give solution to both challenges.
4.0 Appendix
TEN QUESTIONS THAT WILL TEST ORGANIZATIONAL DIVERSITY MANAGEMENT
Do you have a clear business case for working on diversity linked to your business objectives?
Do you have a clear action plan on diversity linked to your business objectives?
Do you tell all existing and prospective employees about your commitment to diversity management?
Do you have any Key Performance Indicators or other objectives on diversity management for senior managers?
Do you use any demographic information to compare your workforce with the local communities in which you operate?
Have your marketing teams or policy makers evaluated the potential value of diverse customers to your organisation?
Do you have a supplier diversity policy?
Do you consult your various employees on their experience of working in your organisation?
Does your organisation monitor the diversity of your job applicants, for example by using the Census 2001 race/ ethnicity classifications?
Does your organisation monitor the position, grade and level of all employees?
Table 1 Ten Questions for Organizational Diversity Management
Diagram 1 Positive Action Model
5.0 References
Cornelius, N 2002, Building Workplace Equality: Ethics, Diversity and Inclusion, Cengage Learning EMEA.
Diversity Management, retrieved on 28 April 2008 from http://www.nesdis.noaa.gov/About/Diversity/documents/DiversityManagementrevisedsept2004nocasestudy.ppt#300,19,Possible Barriers.
Diversity Management Assessment, 2007, University of Bath, retrieved on 28 April 2008 from http://www.bath.ac.uk/managediversity/diversitymanage/where.shtml.
Embracing Diversity – Guidance for Managers, 2007, Chartered Management Institute, London.
Gottfredson, L S 1992, Dilemmas in Developing Diversity Programs in S E Jackson, Society for Industrial and Organizational Psychology & E Ginzberg, Diversity in the Workplace: Human Resources Initiatives, Guilford Press.
Kandola, R S & Fullerton, J 1998, Diversity in Action: Managing the Mosaic, (2nd rev ed.), Chartered Institute of Personnel & Development.
Positive Action Model, 2007, University of Bath, retrieved on 28 April 2008 from http://www.bath.ac.uk/managediversity/positiveaction/.
Reichenberg, N E 2001, Best Practices in Diversity Management, United Nations Expert Group Meeting on Managing Diversity in the Civil Service, New York.
Sonnenschien, W 1999, The Diversity Toolkit: How You Can Build and Benefit from a Diverse Workforce, McGraw-Hill Professional.
Wrench, J 2007, The Anti-Discrimination Directives and Diversity Management, European Union Agency for Fundamental Rights (FRA), European Parliament Public Hearing, Brussels.
The demography of the workplace is changing and will continue to do so over the years. This condition is known as the workplace diversity. Encarta Dictionary defined diversity as ethnic variety as well as socioeconomic and gender variety in a group, institution or society. Diversity could also mean differences in physical abilities, learning and communication styles. By its very nature, conflict is inherent to diversity. Put simply, diversity is the uniqueness of all individuals. When applied to workplace, these differences can affect and worsen organizational performance.
Diversity then is a challenge to many business leaders and managers though it is necessary to note that diversity knows no organizational boundary and limitations and is not positional. As such, diversity can be a problem but also a solution, a detriment but also a benefit and destructive but also constructive. The challenge then is to extract the very essence of diversity and strategically manage it for the advancement of the people and the organization.
2.0 Diversity in the Workplace
2.1 The importance of diversity
According to Sonneschein (1999), diversity means differences and these differences could create challenges for the organization. But nevertheless, these differences could also open avenues for immense opportunities. Diversity at the very least could help the organizations in creating new and more innovative products and services. As well, diversity could mean better ways to meet the demands and needs of customers and clients and thus better serve the community where they belong and serves for (p. 3).
In particular, diversity enables a wider range of views to exist in an organization, including those views that could challenge the status quo from all sides; focuses and strengthens an organization’s core values; simulates social, economic, intellectual and emotional growth and helps an organization understand its place in the global community. Manifestly, diversity is instrumental in organizational change and is effective for delivering conformity to the customer base. Diversity is an effective tool in minimizing turnover costs and maximizing return on investment (pp. 3-4).
Another importance of diversity is the achievement of the sp-called competitive edge. A common knowledge is that the skills, expertise and competencies of the workforce are the most important resource to any organization. These are translated then into creative strategies that will deliver the organization an utmost position. Diversity is the key whereby the combination of the employees’ know-how, proficiency and experience will be the key elements.
Because the changes in demographics create tension, an effective diversity management is critical. These tensions challenge the conditioning and perceptions of people about the nature of things and tension creates both dangers and opportunities. To counter, diversity management must be integrated into the overall strategic plan and must be applied at every levels of the organization.
2.2 The importance of diversity management
The principles of diversity management (Diversity Management) are as follows: establishment of business strategies for effective management of a diverse workforce; creation of positive work environment; promotion of personal and professional development; empowerment of people to reach their full potential; attraction of talent; and removal of barriers that hinder progress. As such, there are six strands that diversity management must overcome: race, age, gender, sexual orientation, disability and religion or belief.
Diversity management is not about reducing standards, removing prejudices but rather recognizing that they exist, a distraction from more important issues such as quality, language and political correctness and obtaining a ‘quota of diverse individuals. Diversity management as defined by Kandola and Fullerton (1998) is the acceptance that the workforce is consists of a diverse population of people with visible and non-visible differences and that harnessing these differences will create a productive environment wherein everyone feels valued, talents are being fully utilised and organizational goals are met.
There are four essential phases for managing a diverse workforce. First is communicating commitment to diversity so that every employee would be aware of the diversity strategy, making it a part of the workplace culture. Second is the diversity management assessment that is accomplished by answering the ten questions to test your diversity management (refer to Table 1) ranging from documentations to community reflections. Third is the evaluation of effectiveness and impact or the assessment of how healthy and sound your diversity management. Next is the development of action plan that supports the policies with clear measurable objectives and targets (Diversity Management Assessment, 2007).
There are business and ethical case that could be considered as the strategies for diversity management. Recruitment and retention of staff; improved moral and job satisfaction; positive public image and access to untapped markets are for business case. For ethical case, this encompasses the changing social values and public expectations especially about ethical investment, fair trade, individual human rights and environmental impact as well as promotion of inclusion, respect, equity and openness (Chartered Management Institute, 2007).
Effective diversity management will enable the organizations towards improving organizational performance, helping prevent unlawful discrimination or harassment incidents, improving workplace relations, building more effective work teams, improving organizational problem-solving, improving customer service and enhancing recruitment efforts. All told, diversity management functions as remover of barriers and as catalyst for achieving workplace balance (Diversity Management).
2.3 The barriers towards a more balanced workforce
Diversity inflicts challenges prior to reaping its benefits. Examples of this are racism, sexism and ageism. Homophobia, in addition, results in disrupts the workplace; prevents the team in accomplishing goals and keeps the organization from achieving its missions. Conflicts at individual, collegiate and organizational levels would be then possible. Diversity therefore has an impact on leadership and management (Sonneschein, p. 4).
Aside from these, there are also organizational challenges brought by diversity. These are: management complexity, fairness, individual differences versus unanimity and identity and loyalty (p. 5). First, diversity is central to the premise that it is easier to manager similar-minded people. Without diversity, the homogenous organization could likely to experience lesser conflicts since there is no need to adjust managerial and leadership styles, to listen in different ways to organizational members, or to find new approaches in doing tasks.
Second, diversity also raises questions regarding fairness. This is because of the fact that no one can be fair when different cultures define fairness in different ways. Moreover, the organization must design mechanisms that ensure equal access to the workplace, protect individuals and groups against discrimination and equitably treat every individual.
Third, people have presupposition that it is easier to work with people with similar background with ours. Oppositely, it is rather difficult to learn to work with people of different styles, to understand new perspectives and to adjust contrasting attitudes.
Finally, with no diversity people do not need to redefine themselves constantly and there is also no need to reassess and realign own values with their values and therefore wonder if these people are could be trusted or not and if they will stay with the organization or not.
Apart, there are also possible barriers in the form of: limiting area of consideration, lack of diverse applicant pool in key positions, lack of diversity in the senior ranks, categorizing people in certain position, always recruiting from same source, grooming/developing a single individual, pre-selection and “golf course” meetings (Diversity Management).
These activities center the human resource management (HRM) functions especially on recruiting, selecting and hiring people. As Gottfredson puts it, putting restrictions prior to accepting would-be workers to organizations is therefore irrelevant. Aside from being unjust, treating people differently would only create additional barriers between groups within the organization and disintegrate the morale that is necessary for high levels of performance unless these organizations works on removing barriers (in Jackson et al, 1992, p. 289).
2.4 Diversity management in UK
Europeans in specifically knows the fundamental nature of diversity management more than rising above these workplace barriers. They are well aware that diversity could be an asset for organizations since diversity is said to be the mindset of the organization, the climate of an organization and the different perspectives people bring to an organization (Reichenberg, 2001, p. 1). However, not all European countries or even European Union (EU) members easily accept the concept of diversity management.
In the United Kingdom (UK) alone, there are concerns about the efficacy and legitimacy of diversity management as an approach in the pursuit of equality and ending discrimination within organizations. Diversity management is a ‘soft option’ for those who would choose not to embrace political and social justice and discrimination and fairness issues that are championed by traditional equal opportunity schemas. Diversity management is also viewed as normative, utilitarian and individualistic (cited in Cornelius, 2002, p. 32).
A report by the EU Agency for Fundamental Rights (FRA) reflects the current status or level of acceptance of diversity management in UK. FRA found out that workplace discrimination prevails in UK as evidenced by statistics of inequality, complaints and court cases and research evidence. For instance, there are 3, 173 court and tribunal cases against employment discrimination. When asked if there should be headscarf ban, UK agreed (29%) though it is much lower than France (78%) and Germany (54%).
To combat this, FRA initializes the six types of organizational policy that could help the organizations in improving public image and in reducing the risk of unlawful practices. These are training the immigrants/minorities, making cultural allowances, challenging racists attitudes, combating discrimination, equal opportunities policies with positive action and diversity management (Wrench, 2007). The difficulty would lie in here whereby the organizations may not be able to implement all this altogether especially if it will obstruct organizational productivity and performance.
EU by and large outlined the legal status of workers to avoid employment discrimination: citizens living and working within their own country of citizenship, citizens of an UE members state who work in another country within the Union, third country nationals who have full rights to residency and work in a members state, third country nationals who have leave to stay on the basis of a revocable work permit for a fixed period of time and undocumented or ‘illegal’ workers (Wrench, 2007). In lieu with this, the organizations could not comply with this because of the fact that still in each country there could be multiculturalism and guestworkers.
In ensuring that UK organizations are adhering to ‘a level playing field’ or Equality of Opportunity, the government implements a range of laws and guidance. Aside from the business case and ethical case discussed in 2.2, there are legal cases that shall govern the employers and employees. Since there are no ‘diversity acts’, a series of acts is the most plausible step that includes: Race Relations Act of 1976, Employment Equability Regulations 2006, Sex Discrimination Act 1975, Gender Equality Duty 2007, Gender Recognition Act 2004, Employment Equality Regulations 2003, Disability Discrimination Act 1995, Employment Equality regulations 2003 and Equality Act 2006.
Today, the Positive Action Model (Diagram 1) is just one of the advanced tools for the application of diversity management. This tool takes direct action against under representation in the workplace. Positive Action Model is consists of range of measures from which employers and other persons can lawfully take actions to help minority or disadvantaged groups to compete on equal terms for jobs, career development and training in the labour force where they are underrepresented.
3.0 Conclusion and Recommendation
In sum, this paper presents diversity as the core of organizational development that takes into account not just the people but also their actions; the principles and the business, ethical and legal case for organizations as fundamental to diversity management; and the steps should be taken into consideration. Further, the paper demonstrates the gradual acceptance of UK organizations regarding the concept of diversity management and what might be the probable violations to which the Positive Action Model is primarily designed to combat the discriminating acts. Nonetheless, there are two areas that is tended to be overlooked in general. These are the lack of universally accepted definition of the term diversity and the lack of comprehensive law or act that will govern organizations. This paper recommends that there shall be a convention that will give solution to both challenges.
4.0 Appendix
TEN QUESTIONS THAT WILL TEST ORGANIZATIONAL DIVERSITY MANAGEMENT
Do you have a clear business case for working on diversity linked to your business objectives?
Do you have a clear action plan on diversity linked to your business objectives?
Do you tell all existing and prospective employees about your commitment to diversity management?
Do you have any Key Performance Indicators or other objectives on diversity management for senior managers?
Do you use any demographic information to compare your workforce with the local communities in which you operate?
Have your marketing teams or policy makers evaluated the potential value of diverse customers to your organisation?
Do you have a supplier diversity policy?
Do you consult your various employees on their experience of working in your organisation?
Does your organisation monitor the diversity of your job applicants, for example by using the Census 2001 race/ ethnicity classifications?
Does your organisation monitor the position, grade and level of all employees?
Table 1 Ten Questions for Organizational Diversity Management
Diagram 1 Positive Action Model
5.0 References
Cornelius, N 2002, Building Workplace Equality: Ethics, Diversity and Inclusion, Cengage Learning EMEA.
Diversity Management, retrieved on 28 April 2008 from http://www.nesdis.noaa.gov/About/Diversity/documents/DiversityManagementrevisedsept2004nocasestudy.ppt#300,19,Possible Barriers.
Diversity Management Assessment, 2007, University of Bath, retrieved on 28 April 2008 from http://www.bath.ac.uk/managediversity/diversitymanage/where.shtml.
Embracing Diversity – Guidance for Managers, 2007, Chartered Management Institute, London.
Gottfredson, L S 1992, Dilemmas in Developing Diversity Programs in S E Jackson, Society for Industrial and Organizational Psychology & E Ginzberg, Diversity in the Workplace: Human Resources Initiatives, Guilford Press.
Kandola, R S & Fullerton, J 1998, Diversity in Action: Managing the Mosaic, (2nd rev ed.), Chartered Institute of Personnel & Development.
Positive Action Model, 2007, University of Bath, retrieved on 28 April 2008 from http://www.bath.ac.uk/managediversity/positiveaction/.
Reichenberg, N E 2001, Best Practices in Diversity Management, United Nations Expert Group Meeting on Managing Diversity in the Civil Service, New York.
Sonnenschien, W 1999, The Diversity Toolkit: How You Can Build and Benefit from a Diverse Workforce, McGraw-Hill Professional.
Wrench, J 2007, The Anti-Discrimination Directives and Diversity Management, European Union Agency for Fundamental Rights (FRA), European Parliament Public Hearing, Brussels.
Report on Diversity Management
1.0 Introduction
The demography of the workplace is changing and will continue to do so over the years. This condition is known as the workplace diversity. Encarta Dictionary defined diversity as ethnic variety as well as socioeconomic and gender variety in a group, institution or society. Diversity could also mean differences in physical abilities, learning and communication styles. By its very nature, conflict is inherent to diversity. Put simply, diversity is the uniqueness of all individuals. When applied to workplace, these differences can affect and worsen organizational performance.
Diversity then is a challenge to many business leaders and managers though it is necessary to note that diversity knows no organizational boundary and limitations and is not positional. As such, diversity can be a problem but also a solution, a detriment but also a benefit and destructive but also constructive. The challenge then is to extract the very essence of diversity and strategically manage it for the advancement of the people and the organization.
2.0 Diversity in the Workplace
2.1 The importance of diversity
According to Sonneschein (1999), diversity means differences and these differences could create challenges for the organization. But nevertheless, these differences could also open avenues for immense opportunities. Diversity at the very least could help the organizations in creating new and more innovative products and services. As well, diversity could mean better ways to meet the demands and needs of customers and clients and thus better serve the community where they belong and serves for (p. 3).
In particular, diversity enables a wider range of views to exist in an organization, including those views that could challenge the status quo from all sides; focuses and strengthens an organization’s core values; simulates social, economic, intellectual and emotional growth and helps an organization understand its place in the global community. Manifestly, diversity is instrumental in organizational change and is effective for delivering conformity to the customer base. Diversity is an effective tool in minimizing turnover costs and maximizing return on investment (pp. 3-4).
Another importance of diversity is the achievement of the sp-called competitive edge. A common knowledge is that the skills, expertise and competencies of the workforce are the most important resource to any organization. These are translated then into creative strategies that will deliver the organization an utmost position. Diversity is the key whereby the combination of the employees’ know-how, proficiency and experience will be the key elements.
Because the changes in demographics create tension, an effective diversity management is critical. These tensions challenge the conditioning and perceptions of people about the nature of things and tension creates both dangers and opportunities. To counter, diversity management must be integrated into the overall strategic plan and must be applied at every levels of the organization.
2.2 The importance of diversity management
The principles of diversity management (Diversity Management) are as follows: establishment of business strategies for effective management of a diverse workforce; creation of positive work environment; promotion of personal and professional development; empowerment of people to reach their full potential; attraction of talent; and removal of barriers that hinder progress. As such, there are six strands that diversity management must overcome: race, age, gender, sexual orientation, disability and religion or belief.
Diversity management is not about reducing standards, removing prejudices but rather recognizing that they exist, a distraction from more important issues such as quality, language and political correctness and obtaining a ‘quota of diverse individuals. Diversity management as defined by Kandola and Fullerton (1998) is the acceptance that the workforce is consists of a diverse population of people with visible and non-visible differences and that harnessing these differences will create a productive environment wherein everyone feels valued, talents are being fully utilised and organizational goals are met.
There are four essential phases for managing a diverse workforce. First is communicating commitment to diversity so that every employee would be aware of the diversity strategy, making it a part of the workplace culture. Second is the diversity management assessment that is accomplished by answering the ten questions to test your diversity management (refer to Table 1) ranging from documentations to community reflections. Third is the evaluation of effectiveness and impact or the assessment of how healthy and sound your diversity management. Next is the development of action plan that supports the policies with clear measurable objectives and targets (Diversity Management Assessment, 2007).
There are business and ethical case that could be considered as the strategies for diversity management. Recruitment and retention of staff; improved moral and job satisfaction; positive public image and access to untapped markets are for business case. For ethical case, this encompasses the changing social values and public expectations especially about ethical investment, fair trade, individual human rights and environmental impact as well as promotion of inclusion, respect, equity and openness (Chartered Management Institute, 2007).
Effective diversity management will enable the organizations towards improving organizational performance, helping prevent unlawful discrimination or harassment incidents, improving workplace relations, building more effective work teams, improving organizational problem-solving, improving customer service and enhancing recruitment efforts. All told, diversity management functions as remover of barriers and as catalyst for achieving workplace balance (Diversity Management).
2.3 The barriers towards a more balanced workforce
Diversity inflicts challenges prior to reaping its benefits. Examples of this are racism, sexism and ageism. Homophobia, in addition, results in disrupts the workplace; prevents the team in accomplishing goals and keeps the organization from achieving its missions. Conflicts at individual, collegiate and organizational levels would be then possible. Diversity therefore has an impact on leadership and management (Sonneschein, p. 4).
Aside from these, there are also organizational challenges brought by diversity. These are: management complexity, fairness, individual differences versus unanimity and identity and loyalty (p. 5). First, diversity is central to the premise that it is easier to manager similar-minded people. Without diversity, the homogenous organization could likely to experience lesser conflicts since there is no need to adjust managerial and leadership styles, to listen in different ways to organizational members, or to find new approaches in doing tasks.
Second, diversity also raises questions regarding fairness. This is because of the fact that no one can be fair when different cultures define fairness in different ways. Moreover, the organization must design mechanisms that ensure equal access to the workplace, protect individuals and groups against discrimination and equitably treat every individual.
Third, people have presupposition that it is easier to work with people with similar background with ours. Oppositely, it is rather difficult to learn to work with people of different styles, to understand new perspectives and to adjust contrasting attitudes.
Finally, with no diversity people do not need to redefine themselves constantly and there is also no need to reassess and realign own values with their values and therefore wonder if these people are could be trusted or not and if they will stay with the organization or not.
Apart, there are also possible barriers in the form of: limiting area of consideration, lack of diverse applicant pool in key positions, lack of diversity in the senior ranks, categorizing people in certain position, always recruiting from same source, grooming/developing a single individual, pre-selection and “golf course” meetings (Diversity Management).
These activities center the human resource management (HRM) functions especially on recruiting, selecting and hiring people. As Gottfredson puts it, putting restrictions prior to accepting would-be workers to organizations is therefore irrelevant. Aside from being unjust, treating people differently would only create additional barriers between groups within the organization and disintegrate the morale that is necessary for high levels of performance unless these organizations works on removing barriers (in Jackson et al, 1992, p. 289).
2.4 Diversity management in UK
Europeans in specifically knows the fundamental nature of diversity management more than rising above these workplace barriers. They are well aware that diversity could be an asset for organizations since diversity is said to be the mindset of the organization, the climate of an organization and the different perspectives people bring to an organization (Reichenberg, 2001, p. 1). However, not all European countries or even European Union (EU) members easily accept the concept of diversity management.
In the United Kingdom (UK) alone, there are concerns about the efficacy and legitimacy of diversity management as an approach in the pursuit of equality and ending discrimination within organizations. Diversity management is a ‘soft option’ for those who would choose not to embrace political and social justice and discrimination and fairness issues that are championed by traditional equal opportunity schemas. Diversity management is also viewed as normative, utilitarian and individualistic (cited in Cornelius, 2002, p. 32).
A report by the EU Agency for Fundamental Rights (FRA) reflects the current status or level of acceptance of diversity management in UK. FRA found out that workplace discrimination prevails in UK as evidenced by statistics of inequality, complaints and court cases and research evidence. For instance, there are 3, 173 court and tribunal cases against employment discrimination. When asked if there should be headscarf ban, UK agreed (29%) though it is much lower than France (78%) and Germany (54%).
To combat this, FRA initializes the six types of organizational policy that could help the organizations in improving public image and in reducing the risk of unlawful practices. These are training the immigrants/minorities, making cultural allowances, challenging racists attitudes, combating discrimination, equal opportunities policies with positive action and diversity management (Wrench, 2007). The difficulty would lie in here whereby the organizations may not be able to implement all this altogether especially if it will obstruct organizational productivity and performance.
EU by and large outlined the legal status of workers to avoid employment discrimination: citizens living and working within their own country of citizenship, citizens of an UE members state who work in another country within the Union, third country nationals who have full rights to residency and work in a members state, third country nationals who have leave to stay on the basis of a revocable work permit for a fixed period of time and undocumented or ‘illegal’ workers (Wrench, 2007). In lieu with this, the organizations could not comply with this because of the fact that still in each country there could be multiculturalism and guestworkers.
In ensuring that UK organizations are adhering to ‘a level playing field’ or Equality of Opportunity, the government implements a range of laws and guidance. Aside from the business case and ethical case discussed in 2.2, there are legal cases that shall govern the employers and employees. Since there are no ‘diversity acts’, a series of acts is the most plausible step that includes: Race Relations Act of 1976, Employment Equability Regulations 2006, Sex Discrimination Act 1975, Gender Equality Duty 2007, Gender Recognition Act 2004, Employment Equality Regulations 2003, Disability Discrimination Act 1995, Employment Equality regulations 2003 and Equality Act 2006.
Today, the Positive Action Model (Diagram 1) is just one of the advanced tools for the application of diversity management. This tool takes direct action against under representation in the workplace. Positive Action Model is consists of range of measures from which employers and other persons can lawfully take actions to help minority or disadvantaged groups to compete on equal terms for jobs, career development and training in the labour force where they are underrepresented.
3.0 Conclusion and Recommendation
In sum, this paper presents diversity as the core of organizational development that takes into account not just the people but also their actions; the principles and the business, ethical and legal case for organizations as fundamental to diversity management; and the steps should be taken into consideration. Further, the paper demonstrates the gradual acceptance of UK organizations regarding the concept of diversity management and what might be the probable violations to which the Positive Action Model is primarily designed to combat the discriminating acts. Nonetheless, there are two areas that is tended to be overlooked in general. These are the lack of universally accepted definition of the term diversity and the lack of comprehensive law or act that will govern organizations. This paper recommends that there shall be a convention that will give solution to both challenges.
4.0 Appendix
TEN QUESTIONS THAT WILL TEST ORGANIZATIONAL DIVERSITY MANAGEMENT
Do you have a clear business case for working on diversity linked to your business objectives?
Do you have a clear action plan on diversity linked to your business objectives?
Do you tell all existing and prospective employees about your commitment to diversity management?
Do you have any Key Performance Indicators or other objectives on diversity management for senior managers?
Do you use any demographic information to compare your workforce with the local communities in which you operate?
Have your marketing teams or policy makers evaluated the potential value of diverse customers to your organisation?
Do you have a supplier diversity policy?
Do you consult your various employees on their experience of working in your organisation?
Does your organisation monitor the diversity of your job applicants, for example by using the Census 2001 race/ ethnicity classifications?
Does your organisation monitor the position, grade and level of all employees?
Table 1 Ten Questions for Organizational Diversity Management
Diagram 1 Positive Action Model
5.0 References
Cornelius, N 2002, Building Workplace Equality: Ethics, Diversity and Inclusion, Cengage Learning EMEA.
Diversity Management, retrieved on 28 April 2008 from http://www.nesdis.noaa.gov/About/Diversity/documents/DiversityManagementrevisedsept2004nocasestudy.ppt#300,19,Possible Barriers.
Diversity Management Assessment, 2007, University of Bath, retrieved on 28 April 2008 from http://www.bath.ac.uk/managediversity/diversitymanage/where.shtml.
Embracing Diversity – Guidance for Managers, 2007, Chartered Management Institute, London.
Gottfredson, L S 1992, Dilemmas in Developing Diversity Programs in S E Jackson, Society for Industrial and Organizational Psychology & E Ginzberg, Diversity in the Workplace: Human Resources Initiatives, Guilford Press.
Kandola, R S & Fullerton, J 1998, Diversity in Action: Managing the Mosaic, (2nd rev ed.), Chartered Institute of Personnel & Development.
Positive Action Model, 2007, University of Bath, retrieved on 28 April 2008 from http://www.bath.ac.uk/managediversity/positiveaction/.
Reichenberg, N E 2001, Best Practices in Diversity Management, United Nations Expert Group Meeting on Managing Diversity in the Civil Service, New York.
Sonnenschien, W 1999, The Diversity Toolkit: How You Can Build and Benefit from a Diverse Workforce, McGraw-Hill Professional.
Wrench, J 2007, The Anti-Discrimination Directives and Diversity Management, European Union Agency for Fundamental Rights (FRA), European Parliament Public Hearing, Brussels.
The demography of the workplace is changing and will continue to do so over the years. This condition is known as the workplace diversity. Encarta Dictionary defined diversity as ethnic variety as well as socioeconomic and gender variety in a group, institution or society. Diversity could also mean differences in physical abilities, learning and communication styles. By its very nature, conflict is inherent to diversity. Put simply, diversity is the uniqueness of all individuals. When applied to workplace, these differences can affect and worsen organizational performance.
Diversity then is a challenge to many business leaders and managers though it is necessary to note that diversity knows no organizational boundary and limitations and is not positional. As such, diversity can be a problem but also a solution, a detriment but also a benefit and destructive but also constructive. The challenge then is to extract the very essence of diversity and strategically manage it for the advancement of the people and the organization.
2.0 Diversity in the Workplace
2.1 The importance of diversity
According to Sonneschein (1999), diversity means differences and these differences could create challenges for the organization. But nevertheless, these differences could also open avenues for immense opportunities. Diversity at the very least could help the organizations in creating new and more innovative products and services. As well, diversity could mean better ways to meet the demands and needs of customers and clients and thus better serve the community where they belong and serves for (p. 3).
In particular, diversity enables a wider range of views to exist in an organization, including those views that could challenge the status quo from all sides; focuses and strengthens an organization’s core values; simulates social, economic, intellectual and emotional growth and helps an organization understand its place in the global community. Manifestly, diversity is instrumental in organizational change and is effective for delivering conformity to the customer base. Diversity is an effective tool in minimizing turnover costs and maximizing return on investment (pp. 3-4).
Another importance of diversity is the achievement of the sp-called competitive edge. A common knowledge is that the skills, expertise and competencies of the workforce are the most important resource to any organization. These are translated then into creative strategies that will deliver the organization an utmost position. Diversity is the key whereby the combination of the employees’ know-how, proficiency and experience will be the key elements.
Because the changes in demographics create tension, an effective diversity management is critical. These tensions challenge the conditioning and perceptions of people about the nature of things and tension creates both dangers and opportunities. To counter, diversity management must be integrated into the overall strategic plan and must be applied at every levels of the organization.
2.2 The importance of diversity management
The principles of diversity management (Diversity Management) are as follows: establishment of business strategies for effective management of a diverse workforce; creation of positive work environment; promotion of personal and professional development; empowerment of people to reach their full potential; attraction of talent; and removal of barriers that hinder progress. As such, there are six strands that diversity management must overcome: race, age, gender, sexual orientation, disability and religion or belief.
Diversity management is not about reducing standards, removing prejudices but rather recognizing that they exist, a distraction from more important issues such as quality, language and political correctness and obtaining a ‘quota of diverse individuals. Diversity management as defined by Kandola and Fullerton (1998) is the acceptance that the workforce is consists of a diverse population of people with visible and non-visible differences and that harnessing these differences will create a productive environment wherein everyone feels valued, talents are being fully utilised and organizational goals are met.
There are four essential phases for managing a diverse workforce. First is communicating commitment to diversity so that every employee would be aware of the diversity strategy, making it a part of the workplace culture. Second is the diversity management assessment that is accomplished by answering the ten questions to test your diversity management (refer to Table 1) ranging from documentations to community reflections. Third is the evaluation of effectiveness and impact or the assessment of how healthy and sound your diversity management. Next is the development of action plan that supports the policies with clear measurable objectives and targets (Diversity Management Assessment, 2007).
There are business and ethical case that could be considered as the strategies for diversity management. Recruitment and retention of staff; improved moral and job satisfaction; positive public image and access to untapped markets are for business case. For ethical case, this encompasses the changing social values and public expectations especially about ethical investment, fair trade, individual human rights and environmental impact as well as promotion of inclusion, respect, equity and openness (Chartered Management Institute, 2007).
Effective diversity management will enable the organizations towards improving organizational performance, helping prevent unlawful discrimination or harassment incidents, improving workplace relations, building more effective work teams, improving organizational problem-solving, improving customer service and enhancing recruitment efforts. All told, diversity management functions as remover of barriers and as catalyst for achieving workplace balance (Diversity Management).
2.3 The barriers towards a more balanced workforce
Diversity inflicts challenges prior to reaping its benefits. Examples of this are racism, sexism and ageism. Homophobia, in addition, results in disrupts the workplace; prevents the team in accomplishing goals and keeps the organization from achieving its missions. Conflicts at individual, collegiate and organizational levels would be then possible. Diversity therefore has an impact on leadership and management (Sonneschein, p. 4).
Aside from these, there are also organizational challenges brought by diversity. These are: management complexity, fairness, individual differences versus unanimity and identity and loyalty (p. 5). First, diversity is central to the premise that it is easier to manager similar-minded people. Without diversity, the homogenous organization could likely to experience lesser conflicts since there is no need to adjust managerial and leadership styles, to listen in different ways to organizational members, or to find new approaches in doing tasks.
Second, diversity also raises questions regarding fairness. This is because of the fact that no one can be fair when different cultures define fairness in different ways. Moreover, the organization must design mechanisms that ensure equal access to the workplace, protect individuals and groups against discrimination and equitably treat every individual.
Third, people have presupposition that it is easier to work with people with similar background with ours. Oppositely, it is rather difficult to learn to work with people of different styles, to understand new perspectives and to adjust contrasting attitudes.
Finally, with no diversity people do not need to redefine themselves constantly and there is also no need to reassess and realign own values with their values and therefore wonder if these people are could be trusted or not and if they will stay with the organization or not.
Apart, there are also possible barriers in the form of: limiting area of consideration, lack of diverse applicant pool in key positions, lack of diversity in the senior ranks, categorizing people in certain position, always recruiting from same source, grooming/developing a single individual, pre-selection and “golf course” meetings (Diversity Management).
These activities center the human resource management (HRM) functions especially on recruiting, selecting and hiring people. As Gottfredson puts it, putting restrictions prior to accepting would-be workers to organizations is therefore irrelevant. Aside from being unjust, treating people differently would only create additional barriers between groups within the organization and disintegrate the morale that is necessary for high levels of performance unless these organizations works on removing barriers (in Jackson et al, 1992, p. 289).
2.4 Diversity management in UK
Europeans in specifically knows the fundamental nature of diversity management more than rising above these workplace barriers. They are well aware that diversity could be an asset for organizations since diversity is said to be the mindset of the organization, the climate of an organization and the different perspectives people bring to an organization (Reichenberg, 2001, p. 1). However, not all European countries or even European Union (EU) members easily accept the concept of diversity management.
In the United Kingdom (UK) alone, there are concerns about the efficacy and legitimacy of diversity management as an approach in the pursuit of equality and ending discrimination within organizations. Diversity management is a ‘soft option’ for those who would choose not to embrace political and social justice and discrimination and fairness issues that are championed by traditional equal opportunity schemas. Diversity management is also viewed as normative, utilitarian and individualistic (cited in Cornelius, 2002, p. 32).
A report by the EU Agency for Fundamental Rights (FRA) reflects the current status or level of acceptance of diversity management in UK. FRA found out that workplace discrimination prevails in UK as evidenced by statistics of inequality, complaints and court cases and research evidence. For instance, there are 3, 173 court and tribunal cases against employment discrimination. When asked if there should be headscarf ban, UK agreed (29%) though it is much lower than France (78%) and Germany (54%).
To combat this, FRA initializes the six types of organizational policy that could help the organizations in improving public image and in reducing the risk of unlawful practices. These are training the immigrants/minorities, making cultural allowances, challenging racists attitudes, combating discrimination, equal opportunities policies with positive action and diversity management (Wrench, 2007). The difficulty would lie in here whereby the organizations may not be able to implement all this altogether especially if it will obstruct organizational productivity and performance.
EU by and large outlined the legal status of workers to avoid employment discrimination: citizens living and working within their own country of citizenship, citizens of an UE members state who work in another country within the Union, third country nationals who have full rights to residency and work in a members state, third country nationals who have leave to stay on the basis of a revocable work permit for a fixed period of time and undocumented or ‘illegal’ workers (Wrench, 2007). In lieu with this, the organizations could not comply with this because of the fact that still in each country there could be multiculturalism and guestworkers.
In ensuring that UK organizations are adhering to ‘a level playing field’ or Equality of Opportunity, the government implements a range of laws and guidance. Aside from the business case and ethical case discussed in 2.2, there are legal cases that shall govern the employers and employees. Since there are no ‘diversity acts’, a series of acts is the most plausible step that includes: Race Relations Act of 1976, Employment Equability Regulations 2006, Sex Discrimination Act 1975, Gender Equality Duty 2007, Gender Recognition Act 2004, Employment Equality Regulations 2003, Disability Discrimination Act 1995, Employment Equality regulations 2003 and Equality Act 2006.
Today, the Positive Action Model (Diagram 1) is just one of the advanced tools for the application of diversity management. This tool takes direct action against under representation in the workplace. Positive Action Model is consists of range of measures from which employers and other persons can lawfully take actions to help minority or disadvantaged groups to compete on equal terms for jobs, career development and training in the labour force where they are underrepresented.
3.0 Conclusion and Recommendation
In sum, this paper presents diversity as the core of organizational development that takes into account not just the people but also their actions; the principles and the business, ethical and legal case for organizations as fundamental to diversity management; and the steps should be taken into consideration. Further, the paper demonstrates the gradual acceptance of UK organizations regarding the concept of diversity management and what might be the probable violations to which the Positive Action Model is primarily designed to combat the discriminating acts. Nonetheless, there are two areas that is tended to be overlooked in general. These are the lack of universally accepted definition of the term diversity and the lack of comprehensive law or act that will govern organizations. This paper recommends that there shall be a convention that will give solution to both challenges.
4.0 Appendix
TEN QUESTIONS THAT WILL TEST ORGANIZATIONAL DIVERSITY MANAGEMENT
Do you have a clear business case for working on diversity linked to your business objectives?
Do you have a clear action plan on diversity linked to your business objectives?
Do you tell all existing and prospective employees about your commitment to diversity management?
Do you have any Key Performance Indicators or other objectives on diversity management for senior managers?
Do you use any demographic information to compare your workforce with the local communities in which you operate?
Have your marketing teams or policy makers evaluated the potential value of diverse customers to your organisation?
Do you have a supplier diversity policy?
Do you consult your various employees on their experience of working in your organisation?
Does your organisation monitor the diversity of your job applicants, for example by using the Census 2001 race/ ethnicity classifications?
Does your organisation monitor the position, grade and level of all employees?
Table 1 Ten Questions for Organizational Diversity Management
Diagram 1 Positive Action Model
5.0 References
Cornelius, N 2002, Building Workplace Equality: Ethics, Diversity and Inclusion, Cengage Learning EMEA.
Diversity Management, retrieved on 28 April 2008 from http://www.nesdis.noaa.gov/About/Diversity/documents/DiversityManagementrevisedsept2004nocasestudy.ppt#300,19,Possible Barriers.
Diversity Management Assessment, 2007, University of Bath, retrieved on 28 April 2008 from http://www.bath.ac.uk/managediversity/diversitymanage/where.shtml.
Embracing Diversity – Guidance for Managers, 2007, Chartered Management Institute, London.
Gottfredson, L S 1992, Dilemmas in Developing Diversity Programs in S E Jackson, Society for Industrial and Organizational Psychology & E Ginzberg, Diversity in the Workplace: Human Resources Initiatives, Guilford Press.
Kandola, R S & Fullerton, J 1998, Diversity in Action: Managing the Mosaic, (2nd rev ed.), Chartered Institute of Personnel & Development.
Positive Action Model, 2007, University of Bath, retrieved on 28 April 2008 from http://www.bath.ac.uk/managediversity/positiveaction/.
Reichenberg, N E 2001, Best Practices in Diversity Management, United Nations Expert Group Meeting on Managing Diversity in the Civil Service, New York.
Sonnenschien, W 1999, The Diversity Toolkit: How You Can Build and Benefit from a Diverse Workforce, McGraw-Hill Professional.
Wrench, J 2007, The Anti-Discrimination Directives and Diversity Management, European Union Agency for Fundamental Rights (FRA), European Parliament Public Hearing, Brussels.
CORPORATE GOVERNANCE IN ISLAND NATIONS RESEARCH PROPOSAL SAMPLE
CORPORATE GOVERNANCE IN ISLAND NATIONS
1.0 Background of the Study
The set of processes, customs, policies and institutions that virtually affects the way a particular corporation is being directed, administered or controlled is known as corporate governance. Corporate governance, in addition, is consists of the relationships among the many stakeholders involve and the goals by which the corporation is governed. Apart from the stakeholders, there are many parties that include the regulatory body, suppliers, employees, investors, customers and the community in general.
There are principles that are deemed to be important for corporate governance. These are rights and equitable treatment of shareholders; interests of other stakeholders; roles and responsibilities of the board; integrity and ethical behaviour; and disclosure and transparency. To lessen adversities in governance itself, mechanisms and controls are implemented. Internal governance controls in the form of monitoring by the board of director and remuneration and external controls are applied.
This multifaceted concept varies in application in terms of corporate culture, governance models, principles and implementation of codes, guidelines and regulations. The variation of corporate governance centers the underlying principles, beliefs, norms and culture to which it is being applied. For instance, Japan integrates the 'kairetsus' in their shareholder structures, the German firms incorporate their financial industry, South Korea as well integrates a concept unique to their culture known as the 'chaebols'.
This research purports on investigating corporate governance on island nations. Island nation or country – either populous nations or small island countries – refers to a country that is wholly confined to an island or group of several islands and has no territory on the mainland of a continent. These countries have various ways in approaching their corporate governance; thus, different practices, systems, institutions and processes. How the corporate governance of island nations differ with that of the other nations methods, approach and belief regarding corporate governance will be explored.
2.0 Theoretical Framework
The theory that supports the aims of the study is Hofstede's cultural dimensions that explain the differences among work-related value patterns that affect the functioning and structuring of organizations.
Ø Large versus small power distance. Large power distance is the extent to which the members of a society accept that power in institutions and organizations is distributed unequally; while small power distance is the extent to which members of a society or organization accept that power is distributed fairly as employees are free to participate.
Ø Strong versus weak uncertainty avoidance. Strong uncertainty avoidance means the degree to which the members of a society feel uncomfortable with uncertainty and ambiguity, which leads them to support beliefs promising certainty and to maintain institutions protecting conformity; while weak uncertainty avoidance is the degree to which members tend to be relatively tolerant of uncertainty and ambiguity and require considerable autonomy and lower structure.
Ø Individualism versus collectivism. Individualism is the preference for a loosely knit social framework in society; collectivism stands for a preference for a tightly knit social framework.
Ø Masculinity versus femininity. Masculinity is the preference for achievement, heroism, assertiveness and material success; while femininity refers to a preference for relationships, modesty, caring for the weak and the quality of life.
3.0 Research Objectives
The main aim of the study is to determine the corporate governance practices, systems and structures in island nations. The elements of the corporate governance that firms operating in island nation are utilizing will be explored as well. The general objective of the study is to able to contribute in the field of international management research, especially in the issue of culture. This objective can be achieved by completing the study consistently and carefully. The specific objectives of the study are to accomplish the following:
* To determine the prevailing practices, systems and processes in corporate governance on island nations
* To distinguish how the culture of the place influence corporate governance
4.0 Research Method
The research design for the study is descriptive as it intends to present facts concerning the nature and status of a situation, as it exists at the time of the study and to describe present conditions, events or systems based on the impressions or reactions of the respondents of the research. The descriptive research also concerns the relationships and practices that exist, beliefs and processes that are ongoing, effects that are being felt, or trends that are developing.
CORPORATE GOVERNANCE IN ISLAND NATIONS RESEARCH PROPOSAL SAMPLE
CORPORATE GOVERNANCE IN ISLAND NATIONS
1.0 Background of the Study
The set of processes, customs, policies and institutions that virtually affects the way a particular corporation is being directed, administered or controlled is known as corporate governance. Corporate governance, in addition, is consists of the relationships among the many stakeholders involve and the goals by which the corporation is governed. Apart from the stakeholders, there are many parties that include the regulatory body, suppliers, employees, investors, customers and the community in general.
There are principles that are deemed to be important for corporate governance. These are rights and equitable treatment of shareholders; interests of other stakeholders; roles and responsibilities of the board; integrity and ethical behaviour; and disclosure and transparency. To lessen adversities in governance itself, mechanisms and controls are implemented. Internal governance controls in the form of monitoring by the board of director and remuneration and external controls are applied.
This multifaceted concept varies in application in terms of corporate culture, governance models, principles and implementation of codes, guidelines and regulations. The variation of corporate governance centers the underlying principles, beliefs, norms and culture to which it is being applied. For instance, Japan integrates the 'kairetsus' in their shareholder structures, the German firms incorporate their financial industry, South Korea as well integrates a concept unique to their culture known as the 'chaebols'.
This research purports on investigating corporate governance on island nations. Island nation or country – either populous nations or small island countries – refers to a country that is wholly confined to an island or group of several islands and has no territory on the mainland of a continent. These countries have various ways in approaching their corporate governance; thus, different practices, systems, institutions and processes. How the corporate governance of island nations differ with that of the other nations methods, approach and belief regarding corporate governance will be explored.
2.0 Theoretical Framework
The theory that supports the aims of the study is Hofstede's cultural dimensions that explain the differences among work-related value patterns that affect the functioning and structuring of organizations.
Ø Large versus small power distance. Large power distance is the extent to which the members of a society accept that power in institutions and organizations is distributed unequally; while small power distance is the extent to which members of a society or organization accept that power is distributed fairly as employees are free to participate.
Ø Strong versus weak uncertainty avoidance. Strong uncertainty avoidance means the degree to which the members of a society feel uncomfortable with uncertainty and ambiguity, which leads them to support beliefs promising certainty and to maintain institutions protecting conformity; while weak uncertainty avoidance is the degree to which members tend to be relatively tolerant of uncertainty and ambiguity and require considerable autonomy and lower structure.
Ø Individualism versus collectivism. Individualism is the preference for a loosely knit social framework in society; collectivism stands for a preference for a tightly knit social framework.
Ø Masculinity versus femininity. Masculinity is the preference for achievement, heroism, assertiveness and material success; while femininity refers to a preference for relationships, modesty, caring for the weak and the quality of life.
3.0 Research Objectives
The main aim of the study is to determine the corporate governance practices, systems and structures in island nations. The elements of the corporate governance that firms operating in island nation are utilizing will be explored as well. The general objective of the study is to able to contribute in the field of international management research, especially in the issue of culture. This objective can be achieved by completing the study consistently and carefully. The specific objectives of the study are to accomplish the following:
* To determine the prevailing practices, systems and processes in corporate governance on island nations
* To distinguish how the culture of the place influence corporate governance
4.0 Research Method
The research design for the study is descriptive as it intends to present facts concerning the nature and status of a situation, as it exists at the time of the study and to describe present conditions, events or systems based on the impressions or reactions of the respondents of the research. The descriptive research also concerns the relationships and practices that exist, beliefs and processes that are ongoing, effects that are being felt, or trends that are developing.
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