Economic Paper Essay Example | Topics and Well Written Essays - 250 words

Economic Paper - Essay Example This is because they lack specialization and hence unable to understand the process undertaken. Some companies want to create â€Å"frictionless staff† which is not possible with people since handling matters for more than 15 employees is always complicated (Weber & Feintzeig 3). Transferring people to different teams when they fallout with one team will not work since there are personal issues which need to be addressed first. Doing away with the HR department is often aimed to decentralize employee matters. This means heads of various departments will solve problem arising between employees. This will complicated this process and consequently people will have different experiences in the same company. HR department helped to create institution’s culture which will now be unavailable. Also, human resource department used to address cases of discrimination in various departments and consequently checked the conduct of managers. This move to do without a HR department makes managers in various departments mistreat employees without them being reported to an authority within the organization. This may land companies involved in court and be forced to address matters that HR department could have addressed (Weber & Feintzeig 3). In my view, companies should not do away with their HR departments since handing employees matters ranging from hiring, compensation, to solving disputes will become difficult. They will also lack culture which can affect their image and consequently may lose out to their

Dell Case Study Example | Topics and Well Written Essays - 250 words

Dell - Case Study Example In President and Fellows of Harvard College (p.22), for Dell Company to attain their target they should expand their market beyond US to cover the entire world. They should start offering other electronic gadgets and software which they can market online. This will help to increase sales and reduce expenditure on sales hence increase their earnings. They should provide online selling website where clients can acquire music and computer software online Lowering the cost their company’s products might make consumers to perceive those products as if they are of inferior quality (President and Fellows of Harvard College, p.21). This may result to decline in sales as consumer loses confidence with the products. Also, by diversifying their products and services, Dell increase it cost of operation hence decline in profit. They will have to invest intensively in research and innovations to meet required standards resulting to further increase in operation cost. Finally the company may lose customer loyalty due decline in customer services as they embark online marketing services which results to decline in customer services (President and Fellows of Harvard College, p.22). The company may not be able to keep track of their clients if they sell their products online. This may result to decline in sales since not all customers will trust online

Terrorism, its Causes and Responses Essay Example | Topics and Well Written Essays - 1500 words - 1

Terrorism, its Causes and Responses - Essay Example The United Nations General Assembly attempts to define terrorism as criminal actions aimed at provoking the state of terror in the public, groups of people or certain persons for unjustifiable political reasons. Such actions are intolerable and are termed terrorism despite the ideologies, religious considerations, philosophical or political reasons that might be brought forth as justification. characteristically acts of terrorism are politically motivated, violent in nature, calculated to instigate psychological fear, are advanced by organizations with clear conspiratorial command chains which are identifiable and the perpetrators and entities which are non-state. Terrorists generally exploit the media to achieve much publicity as possible and amplify their influence on the audience of the target. The objective is for the effects to be felt by an audience that goes beyond the immediate subject being targeted. Terrorism can take the type of either domestic terrorism if conducted within the confines of national borders or international terrorism is conducted by groups that are able to exert their effects beyond borders of nations. Terrorism can also take the form of Civil Disorder in which violence is utilized in order to disrupt the security & peace as well as the normal community functioning. Political terrorism on the other takes the form of violence and criminal mannerisms aimed at generating fear in an entire community or a significant part of the community in order to advance political interests. There is also Limited Political Terrorism which involves terror acts conducted out of political and ideological motivations but not aimed at gaining state control.  

Invictus and The Alchemist Response Essay Example for Free

Invictus and The Alchemist Response Essay The poem Invictus written by William Ernest Henley is a poem written about courage in the face of death and holding on to ones own dignity despite the indignities life places before us. In the first stanza the poems speaker prays in the dark to whatever gods may be a prayer of thanks for his unconquerable soul. Several things are apparent from the outset: First, the speaker is in some sort of metaphorical darkness, perhaps the darkness of despair. Second, he does not pray for strength, but gives thanks for the strength that he already has. Third, he seems rather flippant about who he is or is not praying to; it is almost a prayer to himself at this point, but not quite. Henley also bring this up in the second stanza where he talks about Gods will or even fate; instead he speaks of the fell clutch of circumstance and insists that he has overcome these bravely and without complaint.The third stanza is about death and what a trifle it seems to the speaker of the poem. This place of wrath and tears, this life, it seems, is not full enough of pain and horror to frighten the poems speaker. And death, the Horror of the shade, could not possibly worry him, being an end to wrath and tears. Notice here that he is not concerned in any way about an afterlife. Death is merely an end to suffering for our speaker. Nothing of any concern seems to lie beyond for him until. This poem is an inspiration to it readers depending on the way you read it. This poem like mentioned before has been written for those suffering from an incurable disease or just going thru a tough time in their life, to give that person some hope and strength. I Can relate to this poem because growing up i’ve been threw lots of illnesses it all started when i was diagnosed with Meningococcal Meningitis when i was just a baby. Than at the age of 16 i was diagnosed with Hereditary Breast Cancer. Going thru this i felt so alone and like my life hit a point of no return i lost hope and faith. I felt helpless and i also felt bad for my family making them so worried about me. Nevertheless i have not let this bring me down or think twice about anything that i set my mind to do. I have enlisted in the Marines and hoping to leave to boot camp in september. Going threw everything i’ve been threw in my life has definitely taught me that everything in life comes in threes , but at the end of the day if you fall down seven times you must get up eight , because you cant let life struggles get in the way of your Personal legend. This Poem is also related to the Alchemist. Santiago hits a point in his journey where he feel’s like he’s losing himself .The alchemist prepares to move on with Santiago to the pyramids, but Santiago complains that he doesn’t want to leave Fatima. The alchemist says Fatima understands that Santiago needs to complete his Personal Legend. at this point Santiago gets frustrated with the alchemist because he doesnt want to leave fatima behind. Another point where santiago loses faith in his journey is towards the end where He feels frustrated that the alchemist didn’t teach him anything, but the alchemist says Santiago should have learned through actions. Santiago asks him why he is an alchemist, and the alchemist explains he learned the practice from his grandfather, when alchemy was simpler. He says men complicated alchemy by writing books about it. Previously, alchemists only needed the Emerald Tablet. Santiago asks what the tablet says, and the alchemist replies that one can’t understand it through reason since it provides a passage to the Soul of the World. The alchemist encourages Santiago to immerse himself in the desert and listen to his heart so he can also gain an understanding of the Soul of the World but at the end of the book santiago continues his journey and finds his treasure than makes his way back to fatima. This relates to the poem because it talks about where a person’s life goes threw so many obstacles but at the end still overcomes those hard times.

Evaluating Coca Colas understanding of its Consumers Behaviour

Evaluating Coca Colas understanding of its Consumers Behaviour 1.0 Introduction A consumer is a person who spots a need or desire, and then looks for the best way to satisfy his or her need either by purchase or acquisition (Solomon et al, 2010). Consumer behaviour as defined by Solomon et al (2006) is the processes involved when individuals or groups select, purchase, use or dispose of products, services, ideas, or experiences to satisfy needs or desires. Customer retention is vital these days and organisations are looking for the best way to please and satisfy the interest of their consumers. According to Fill (2009), the understanding of the buyers behaviour makes marketing strategies and plan come out successful. The Coca-Cola Company is soft drink industry that has been able to build its brand loyalty with its consumers over its years of operation, despite the highly competitive market (Euromonitor, 2010). But this success would not have been realistic without understanding who the consumer is, what the consumer needs and how the consumer behaves. The Econo mic recession was a trying time for companies which led to the closures of some and loss for majority, the soft drink industry is not an exception and Coca- cola which falls under the soft drink industry will be analysed on how effective the management of their consumers was to in ensuring their survival in the recession. 1.1 A brief summary of The Coca- Cola operations The Coca-Cola Company (TCCC) is the largest manufacturer, distributor and marketer of non alcoholic beverage, concentrates and syrups in the world. Coca-cola has a portfolio of more than 3,300 beverages, from diet and regular sparkling beverages to still beverages such as 100 percent fruit juices and fruit drinks, waters, sports and energy drinks, teas and coffees, and milk-and soy-based beverages, which are now sold in more than 200 countries in the world. (Coca-cola, 2010). Coca- cola first got to Britain in the year 1900, after Charles Candler brought a jug of syrup along on a visit to England. Soon after, in the early 1920s, it went on sale at the London Coliseum and in Selfridges. Since then coca-cola Britain has come up with innovative soft drinks namely: Coca-cola; Diet Coke; Coca-cola zero; Sprite; Sprite zero; Fanta;Fanta Zero; 5 Alive; Schweppes; Schweppes zero; Powerade; Powerade zero; Kia ora; Kia ora(no added sugar); Dr. Pepper; Dr. Pepper zero; Lilt; Lilt Zero; Oasis; Oasis extra light; Glaceau vitamin water and Relentless. (Coca-cola, 2010) With about 4,650 employees, Coca-cola GB claims to have sold 228million cases in 2008. Pic. 1.1 The Coca-Cola Company Great Britain brands Available on this link- http://www.coca-cola.co.uk/brands/ 1.2 An overview of the soft drink industry in Great Britain Mintel (2010) stated that close to one-quarter of companies in the UK soft drinks market is growing at more than 10% per year. Some of the main players in the UK soft drink industry include Coca-cola, Pepsi cola UK, Tropical UK, Nestle UK etc to mention but a few. The British Soft Drinks Associations 2010 UK Soft Drinks Report found that the overall market grew by 1.7% in 2009, with total consumption reaching 14,140 million litres, at a retail value of  £13.224 billion (Mintel, 2010). The British Soft Drinks Assocaition (2010) stated that it was encouraging to see that the soft drinks market was holding up during the economic downturn. According to M intel (2010), for the second year running, Coca-cola topped interbrands best global brands table, placing it above its competitors in the soft drink industry. The coca-cola company has continued to focus on expanding its business through taking tactical places in niche soft drinks producers, by purchasing a stake in UK smoothie produce r, Innocent Drinks (Euromonitor, 2010). 1.3 The recession in United Kingdom Recessions occur during the down or contraction phase of the business cycle. The term business cycle refers to the familiar ups and downs of economic activity. (Pearce and Michael 2006). Furthermore, Pearce and Micheal (2006) opined that recessions cause significant declines in resources available to the firm because customers spend less, lenders lend less, and competitive rivalry increases. Initially, the behaviour of consumers changes during recessions. They have less money to spend and cut back personal spending in response to the overall decline in economic activity. Industrial and business customers may become disloyal, demand renegotiated contract terms, and alter purchase patterns. Also by Pride and Ferrell (1995), recession is a stage in the business cycle during which unemployment rises and total buying power declines, stifling both consumers and business peopless propensity to spend. The UK economy was growing faster than the average for the Euro zone throughout most of this decade. However, an abrupt slowdown began in 2008 and the economy entered a recession in the third quarter. According to Euromonitor (2010), real gross domestic profit fell by 4.9% in 2009, making this the UKs longest post-war recession. The UK has been harder hit than many countries because of its large financial sector. The fiscal position has deteriorated over the past several years. The deficit was pushed even higher as a result of the bailout of large banks. The number of unemployed also rose by 50% during the recession with 800,000 jobs being lost (Euromonitor, 2010). The recession led to business closures, job losses and a lack of employment opportunities in the UK (Athey, 2009). This first global recession in the new era of globalization, started in the US, spread to Europe, and eventually became global; its the worst economic crisis since the great depression. (Stiglitz and Joseph, 2 009). 1.4 The Coca-Cola Company and the recession TCCCs gross profit margin decreased to 64.2 percent in 2009 from 64.4 percent in 2008, primarily due to foreign currency fluctuations, adverse geographic mix as a result of expansion in their up and coming markets, current focus to steer better reasonable initiatives across different major markets and unfavourable channel and marketing mix in some certain markets. (Coca-Cola, 2010). Even though there was a slight decrease (0.2%) in their profit margin compared to the previous year, TCCC arguably performed well despite the economic downturn. The unit case volume in TCCC is one of the measures of the fundamental strength of the company because it helps to measure progress at their consumer level. In Europe, the sales volume of year ended 2009 versus year ended 2008 shows that the unit case volume in Europe decreased 1 percent, caused mainly by the ongoing hard macroeconomic situations in most part of Europe. These hard macroeconomic conditions influenced major markets and caused a decline in the unit case volume of 8 percent in South and Eastern Europe, 4 percent in Iberia and 2 percent in Germany. The volume declines in these markets were partially made up for by 6 percent unit case volume growth in France and 4 percent growth in Great Britain.(Coca-cola, 2010). Table 1.1- Financial result of The Coca-Cola Company Year Ended December 31, 2009 2008 2007 2006 2005 (In millions except per share data) SUMMARY OF OPERATIONS Net operating revenues $ 30,990 $ 31,944 $ 28,857 $ 24,088 $ 23,104 Net income attributable to shareholders 6,824 5,807 5, 981 5, 080 5, 872 GROSS PROFIT 19,902 20,570 18,451 GROSS PROFIT MARGIN 64.2% 64.4% 63.9% PER SHARE DATA Basic net income $ 2.95 $ 2.51 $ 2.59 $ 2.16 $ 2.04 Diluted net income 2.93 2.49 2.57 2.16 2.04 Cash dividends 1.64 1.52 1.36 1.24 1.12 BALANCE SHEET DATA Total assets $ 48,671 $ 40,519 $ 43,269 $ 29,963 $ 29,427 Long-term debt 5,059 2,781 3,277 1,314 1,154 1.5 Scope of Study The interest of this study lies mainly with The Coca-cola Company, focusing on Coca-cola Great Britain as the scope of study. This study also examines the level at which the recession affected the sales in coca-cola and the consumers attitude towards the purchase of coca-cola. CHAPTER TWO 2.0 Key Consumer Behaviour Aspects According to British Soft Drinks Association, (2010), Consumers are loyal to the drinks they know and trust but remain open to innovative products and brand extensions which meet their ever-evolving needs. The industrys ability to provide the public with a wide range of enjoyable and affordable drinks will ensure it remains resilient despite the tough economic climate. Three key consumer aspects have been carefully selected from Jiang (2010) as explained in the Consumer Behaviour Lectures; the following aspect of the consumer behaviour may have influenced the continuous purchase of coca-cola products despite the economic downturn- the buying process, Attitude formation and Motivation. 2.1 The Buying process A buying decision making process is the selection of an option from two or more alternative choices (Jiang, 2010). Coca-colas consumers can be explained in Consumer as a Problem Solver (Habitual Decision Maker). A habitual decision maker makes choices that are characterised by an impulse made with little effort and without conscious control (Solomon et al, 2006). Coca-colas brands are low involvement products and so require little information search. Most decisions made by people who consume coca-cola are with little or no conscious effort. Coca-cola consumers purchase Coke for example based on a habit that has been formed over time. Also the Evaluation of alternatives can be used to explain the brands resistance to the recession, much of the consumers effort that goes into a purchase decision develops at the stage in which a choice must be made from the accessible alternatives (Solomon et al, 2006). In many cases, there are a number of alternatives (such as water, soft drink or alcohol) a consumer could consider in satisfying a biogenic need, i.e. to conquer thirst. A consumer that has formed a habit overtime to purchase diet Coke for example will always have in mind a diet coke whenever hes thirsty. Branding can also be an influence on the evaluation of alternatives. In a survey of Global Brands, Inter Brand and Business Week identified the significance for companies to create communities around their products and services, which gives the customers the opportunity to feel as if they own the brand (Solomon et al, 2006). Fill (2009) also supported that as a brand becomes established with a buyer, so the psycholo gical benefits of ownership are preferred to competing offerings, and a form of relationship emerges Coke is not only seen as a drink by its consumers, but seen in the light of its heritage and relationship with them( Payne,2007). Brands also create impressions and strong feelings so much that when people see the coke bottle with its red label, and the content, people suddenly feel thirsty and the need to have a drink (Riesenbeck and Perrey, 2007) According to Mintel, (2010), the Interbrand ranked Coca-cola as the number one global brand in the year 2009 and 2010 respectively. Brands can influence a consumers choice in a decision making process, in a study conducted, 51percent of consumers preferred Pepsi over Coke , while in an open test, only 23percent preferred Pepsi over coke(Jenkinson, 1995). In my opinion, Coca-cola consumers have developed a relationship with the brand, which makes them to choose coca-colas brands amongst all other alternatives even in a recession. The econom ic downturn did not affect consumers choices, habits did not change despite the recession; coca-cola consumers did not change their product preferences because a habit has been formed over time. Table 2.1 Buying Decision making process Evaluations After purchase behaviour/feeling Involvement Information search Need recognition Need Purchase Decision Identity Alternatives Source- (Jiang, 2010) 2.2 Attitude Formation and change Attitude is a persons learned predisposition, tendency to respond to an object in a consistently favourable or unfavourable way (Allport, 1935) as cited by (Jiang, 2010). An attitude formed, lasts over a period of time, an attitude towards what a person eats or drink or developing an attitude towards different brands (such as drinking diet Coke rather than drinking diet Pepsi) or also having an attitude towards a general consumption pattern(such as eating twice to eating once in a day) (Solomon et al, 2006). The Utilitarian Function which is related to the basic principles of reward and punishment will be used to explain why TCCC was not entirely affected by recession. Attitudes are formed based on the presumed product qualities (either pleasure or pain) (Solomon et al, 2006). Attitudes influence a consumers decision making and the goal of a marketer is always to create a positive attitude towards a product or change existing attitudes (Fill, 2009). In a recent research conducted by TCCC to evaluate consumers attitudes towards its brands, it revealed that coca-cola is the brand most associated with happiness (Coca-cola, 2010). The result of the survey revealed that over a half of the people that participated in the research said its the taste that makes them smile others said sharing a bottle of coca-cola with family and friends can provide an opportunity to spend time together (Coca-cola, 2010). Coca-cola consumers have developed an attitude overtime, so the recession would not change their product preference but might just alter their consumption pattern (such as reducing the intake of one three bottles per day to two bottles per day). The theme of the TCCC also stresses straight forward benefits (Coca-cola.Open Happiness). TCCC develops strategies to penetrate their consumers lifestyle to pass a message. In order to promote Coca-Cola Zero (one of Coca-Colas brands),TCCC partnered with the Twentieth Century Fox and director Ja mes Camerons for his epic-adventure and blockbuster film Avatar. This promotional strategy helped to form an attitude towards Coca-Cola Zero and raise its awareness. They also use promotional activities and sponsorship of events such as the Olympic Torch Relay in 11 countries, and the Vancouver 2010 Olympic Winter Games(Coca-Cola 2010) and also Attitudes towards coca-cola could also be formed by the yearly coca-cola adverts, as supported by Pearce and Micheal (2006) aggressive marketing campaigns may be more effective during recessions, as competitors feeling the pinch might attempt to forestall losses by reducing their advertising. During the recession, TCCC, engaged in massive paid advertising to reinforce their brands in the minds of the consumers. Also towards the end of each year, coca-cola does an advert, using the Christmas theme to convey its message to its viewers. The viewers feelings about the context in which an advertisement appears can also influence brand attitudes (Solomon et al, 2006). Liking this Christmas themed adverts would naturally link us to Attitude Formation (three hierarchies of effects), Affect, Behaviour and Beliefs. Affect (like the brand), behaviour (buy the brand), belief (feel satisfied with the brand) or belief (create awareness of the brand), behaviour (buy the brand), affect (like the bra nd) or belief (create awareness of the brand), affect (like the brand), behaviour (buy the brand). Attitude formed over time influences a consumers purchase behaviour, in spite of the recession, it can be argued that the attitude of the coca-colas consumers did not change, and there was a continual process in consumers purchase pattern. Coca-cola was not so affected by the recession because of the consumers attitudes towards their products Table 2.2 Three Hierarchies of Effects Attitudes based on cognitive information processing Affect Attitudes based on behavioural learning processes Behaviour Behaviour Behaviour Beliefs vvv Beliefs vvv Beliefs vvv Attitudes based on hedonic consumption Affect Affect Source- (Jiang, 2010) 2.3 Motivation Motivation is the driving force within individuals that impels them to action, this driving force is produced by a state of tension which exists as the result of an unfilled need (Jaing 2010). Every action is done for a reason. Motivation refers to the process that cause people to behave as they do, motivation occurs when a need (Utilitarian-consumers practical benefits or Hedonic-consumers emotional benefits) is aroused that the consumers wishes to satisfy. The desired end- state is the consumers goal. The degree of arousal is called a drive (Solomon et al, 2006). The purpose of purchasing a drink would be to satisfy a biogenic need, i.e. to conquer thirst. For a consumer to now choose a diet coke because hes thirsty is called psychogenic. Coca-cola motivates its consumers through its themed message (Open Happiness), and this can be explained in the hedonic needs (Consumers emotional benefits) The survey TCCC conducted for their consumers shows that the taste of coca-cola makes them happy. What motivates a consumer might be different compared to the other consumer. A regular coke consumer willing to reduce his sugar consumption will be happy to switch to coke zero which has no sugar and less calories. Also viewing it from the Consumer involvement angle, TCCC also motivates its consumers by connecting with millions of them every day through their brands Facebook pages, Twitter and influential blogs, creating a dialogue that allows TCCC to build their brand assets and strengthen their consumer relationships. Solomon, (2006) defines involvement as a persons perceived relevance of the object based on his/her inherent needs, values, and interests. Through this Fans page on facebook, consumers can access their advertisements, Coca-Cola applications and downloads, and get live updates from the Company. Also TCCC involves their consumers through the Coca-Cola Freestyle, this makes the consumers beverage innovators by giving them choices and variety to make more than 1 00 different branded beverages at the touch of a button, this provides fun, and a relationship that connects the company with its consumers. (Coca-cola, 2010). TCCC motivates their consumers by associating with things that will be of interest to the consumers, for example; on their website is a calculator used for checking amount of calories and quantity of drinks consumed every week so as to help consumers monitor their calorie intake in having a healthy diet and lifestyle. This can help motivate a consumer to purchase TCCCs product because they have shown the consumer the consumer that in as much as they want to make profit, they also care about them and their health. The recession did not really affect TCCCs sales because of the motivation TCCC tries to create and the relationship they have been able to build overtime with their consumers. CONCLUSION 3.1 Conclusion Understanding consumers behaviour is key to having a successful company; marketers need to deepen their research on their consumers because the consumers are becoming aware of the important role they play in their consumption pattern. Competitors are always also looking for tactics to grow and influence new consumers, and any organisation that does not meet up with consumers expectations would be losing a consumer. Companies should look for ways to retain their current customers and also focus on getting new ones attracting new customers should be a priority in a recession (Pearce and Michael 2006). Organisations should actively engage their customers more than before.

insider trading Essay -- essays research papers fc

Insider Trading   Ã‚  Ã‚  Ã‚  Ã‚   In our economic economy today, we have gotten a few high profile cases were people have tried to make money by using illegal tactics, and these are illegal tactics are based on the insider information. These high profile cases were on Martha Stewart and President George W. Bush. This is why I chose to write my paper on what exactly â€Å"Insider Trading† is. Insider trading has to do with stocks, on the stock market. The stock market is basically an organized place where stocks and bonds are traded. The members of this exchange usually buy and sell the stocks for others while charging a commission for doing this work for their clients. Although more and more people are now trading online stockbrokers are not as in demand for their services as they once were which is why Charles Schwab investment firm has laid off more then 1800 workers in this past month, which amounts to a 10 percent reduction in the work force. There are certain limitations on stocks before they can be trade d and listed on the stock market. The New York Stock Exchange (NYSE) the largest in the United States was founded in 1970 and handles over 70% of all trades. Then there is the National Association of Securities Dealers Automated Quotations (NASDAQ) which is the fifth largest stock trade in the world. On the stock market there are a lot of illegal things that go on that are unethical. The most known crime that goes on is insider trading scandals. The way insider trading occurs is when one person or many people have information on a company that the rest of the public doesn’t know of and use it to make a profit on the stock market. This trading in the United States has been illegal since 1934 and is protected by the Securities and Exchange Commission (SEC). This requires all companies to disclose statements to the public before offering any securities on the public market. The SEC views insider trading unfair to the investors. The SEC also regulates stock exchanges, brokers, an d dealers in securities, and also sets the margins for bank credit in security trading. So basically the law prohibits â€Å"insider trading†, the way insider trading happens is when corporate directors and officers find out information on their company because of the position they hold before anybody else does is known as inside information. This information can and probably d... ...in 1989 the federal jury handed down a 98-count indictment against Milken for violations of federal securities and racketeering. In 1990 Milken pled guilty to security and fraud charges of insider trading, and the more sever counts against him were dropped. The regulation of insider trading can’t be judged on the grounds that it promotes the goals and efficiency, market integrity, or fairness. The real reason for banning insider trading was for trading stocks based on knowledge the rest of the public was to be thought of as theft. In conclusion this paper on insider trading is not to show the good of it, but that it cannot be harmful if done the right way. And for those companies not willing to participate in insider trading have a contract with their employees giving them more money in salaries, rather then giving them inside tips on potential stock trading tips. Bibliography 1) http://www.SEC.com 2) http://www.encyclopedia.com 3) http://www.integrity-interactive.com/compliance/mkt_press_insidertrading.htm 4) http://www.bartleby.com/65/in/insidert.html 5) http://www.bartleby.com/65/se/Securiti.html 6) http://story.news.yahoo.com/news?tmpl=story&u=/nf/20020918/bs_nf/19434

Performance Management and Performance Appraisal Essay

Evaluating the performance of an employee has become and important task for managers. This way they know were or in what aspects they need to work more to achieve the companies goals. â€Å"Managing employee performance is an integral part of the work that all managers and rating officials perform throughout the year. It is as important as managing financial resources and program outcomes because employee performance, or the lack thereof, has a profound effect on both the financial and program components of any organization.† 1 (US department of the interior) This essay talks about performance management and performance appraisal, the difference between them, and how a successful performance management plan work and their common mistakes. To understand the difference between performance management and performance appraisal first we need to understand the meaning of both concepts. These two terms are usually used while evaluating employee efficiency in an organization. Lets start by learning what performance management is â€Å"Performance management is simply a term used to describe a set of activities that assess whether goals or objectives are being met. These activities include defining work, setting goals, providing feedback and encouraging development. Performance management is about shared responsibility and understanding of roles, expectations and standards† For better understanding about PM is really about the university of Berkeley posted this example in their web-side â€Å"The campus carries out its mission through the individual and collective contributions of its employees. To do their best, staff members need to know that those contributions will be recognized and acknowledged. Performance Management is one of the key processes that, when effectively carried out, helps employees know that their contributions are recognized and acknowledged. Performance management is an ongoing process of communication between a supervisor and an employee that occurs throughout the year, in support of accomplishing the strategic objectives of the organization. The communication process includes clarifying expectations, setting objectives, identifying goals, providing feedback, and evaluating results† 2. (University of Berkeley). The Office of Personnel Management defines performance management as the systematic Process of: 1. Planning work and setting expectations 2. Continually monitoring performance 3. Developing the capacity to perform 4. Periodically rating performance in a summary fashion; and 5. Rewarding good performance Know lets look at the meaning about Performance appraisals it is â€Å"The process by which a manager or consultant (1) examines and evaluates an employee’s work behaviour by comparing it with preset standards, (2) documents the results of the comparison, and (3) uses the results to provide feedback to the employee to show where improvements are needed and why. Performance appraisals are employed to determine who needs what training, and who will be promoted, demoted, retained, or fired† 3 (Business dictionary) A great appraisal needs to be fair, objective, two-way, realistic, clear, on-going and specific. Just by reading the definitions it easy to see that Performance appraisals is just one part of performance management. Although one helps the other there are a few differences that can be noticed: it can be said that performance management is the older and traditional approach. On the other hand performance appraisal is a sort modern method or approach of evaluating the performance of an employee of a firm or an organization. â€Å"Performance appraisal consists in the setting of job standards and evaluation of the past performance†¦.† On the other hand performance management concentrates on managing the performance in state time so that the performance can reach the expected level† 4 (Aaron 2011) Also performance appraisal only focuses on the past performance and its done normally twice a year on the other hand performance management â€Å"is a continuous function in the sense that it is done in an on-going fashion to ensure that the employees discharge their capabilities in such a way that targets are achieved in real-time basis. Hence it is often said that performance management is continuous in purpose whereas performance appraisal is occasional in purpose.† 4 (Aaron 2011) If we start talking about methodology there are a few differences performance appraisal is more of a formal structure while performance Management has a more flexible and casual nature. Know that we know what they mean we can talk more about performance Management. To achieve greater organizational success an organization needs a strong performance management, that process organizations put in to measure and reward the abilities of their workforce to achieve their goals. Improving morale, creating loyalty and increasing overall productivity in your employees through performance management is the key to your company outperforming the competition? Performance management not only ensures that the employees do their job but they do it the right way After reading about performance management I came across a lot of steps to make an effective one, the following are the 5 steps that I agree will make a successful PM plan. 1. Planning your Business workload; set the organizations goals strait where do managers want to take the organization, what tasks need to be done and how. For example â€Å"Have you ever tried to drive somewhere without proper directions? This almost always turns out to be a frustrating experience. Sure, if you stop and ask enough people you may eventually reach your target destination, but think of all the wasted energy, time, and resources needed to accomplish your goal. Let’s take this concept and move it to the realm of managing a business. Does it make sense to expect your employees to reach a goal or strategic objective without providing them a road map of where they are headed? â€Å" (Josh Greenberg 2011) Employees need to be involves in this process, by this they improve the morale, helps managers make sure they are no gaps in the communication process, and gives employees a clear idea of what is expected from them. 2. Monitoring business and individual performance: managers need to watch carefully the work of their employees to make sure it is done on time and the right way and see how well employees are able to function. It is also useful to keep track not only of the tasks already done but also the ones to come. 3. Individual and team performance development; involve employees to keep and upgrade standards, develop new skills, teach new procedures. It may also mean to give new responsibilities to those employees that deserve them, the ones that show they have outgrown their old ones. 4. Rating individual performance; Evaluate the employee performance address in which areas the employee needs to grow but do not forget the ones where he has already excel. It’s telling the employee where he/she is standing. 5. Rewarding great performance; this may seem like the least important but it is actually one of the most important ones, when a manager rewards their employees for their hard work it helps keeping them motivated and happy. When an employee is happy they usually keep performing at a high level (Martin Haworth) In order not to have an unsuccessful performance management, it is important to make sure that the process is well understood; managers and employees need to understand the process and its use. There might even be a training to use the system â€Å"it’s not just using the tool but using it properly.† So develop a good process and make sure everyone’ uses it. The plan must be relevant and â€Å"strategic and be part of the fabric of the organization†¦. Employees need to be able to see how working their plan will make both them and their organization more successful. In order to do that, the plan must link, at least in part, to organizational, departmental and job specific mission and planning. Other elements must enable the success of the individual.† 5 (Erik Britten, 2011) so make the plan meaningful and useful to the employee and the organization. Lets remember that performance management is an everyday activity, â€Å"If plans are developed and aligned properly, employees and managers should be able to link what they are doing almost daily to something in their plan. Managers need to connect those dots frequently in group or individual meetings.† 5 (Erik Britten, 2011) these is why it’s important to make performance management an ongoing activity. Mistake usually happen when something is not a 100% understood so lets remember to use a meaningful and useful plan for the employee and the organization, develop a good process and make sure everybody uses it and not do it twice or tree times a year but everyday, to avoid some mistakes. The biggest error that can happen is that not to manage performance, it is easy to come with excuses not to do so but it is a risky move. The most common excuses are: â€Å"my staff don’t want to be performance managed,† â€Å" not enough time,† â€Å"It’s easier to ignore underperformers and move them on to someone else to manage, † â€Å"It’s not worth the effort and does not pay off.† The list can go on and on but all these are wrong. As we have learned before performance management â€Å"The effective management of performance is a primary managerial responsibility and has significant impact on employee performance and retention.† All employees expect feedback, â€Å"Ignored underperformance rarely goes away and it gets increasingly harder to tackle.† 6 (Government of South Australia) Other errors include improper documentation or preparation. Fix the mistake by being prepare, use your time more effectively. The employee may assume the manager does not know what is going on or that she simply doesn’t care enough to prepare. Not knowing employees, get to know your employees and the quality of their work, managers need to listen, and not expect their employee to know everything and exactly how he wants the task done. Accepting excuses, don’t give a chance of a poor performance in an organization. Find a solution and establish an action plan to avoid the problems in the future. Avoiding the tough issues, It’s hard for an employee to correct their problems without any help. It’s hard to give â€Å"bad† feedback but it is really worth it if not the problems or when the work gets harder it will be all-wrong. There is a saying in my country that says â€Å"el que no habla trabaja doble† It basically says that the one that doesn’t speak or doesn’t address its problems works double. Not following through, â€Å"Most of the time and effort spent in planning for and conducting an effective interview is lost if you don’t follow through with the actions/plans discussed in the evaluation†. 7 (HRN performance solutions) Not giving the proper feedback, â€Å"critical aspects of managing an individual’s performance are daily interactions and feedback. Performance that is not actively managed is nonetheless influenced by default. Failure to provide feedback means employees are unaware of whether their performance is acceptable and valued and can be a major disincentive to stay with the organisation. Furthermore, failure to manage negative performance can have harmful consequences on the morale of the rest of the work team† 6 (Government of South Australia) Listen to employees feedback, do not ignore the employees comments, if the manager does not agree he can tell them why and then they can discuses it, but ignoring a comment can be very damaging, it can even lead to an employee not to participate in meeting or share their ideas. Overemphasizing Good Performance, â€Å"compliments quickly become meaningless if they aren’t specific and substantive. They can also give an employee the false impression that you are completely pleased with everything he does. Be honest and direct.† 7 (HRN performance solutions) â€Å"The Halo Effect, â€Å"Allowing one highly favourable (or unfavourable) employee behaviour or characteristic to affect judgment about the entire appraisal ignores other employee strengths and weaknesses.† 7(HRN performance solutions) Performance Management is a method by which a business Owner can ensure that his or her business is constantly growing and achieving at the level they desire, its important to do it no matter what, it will help achieve the employee and organization goals. With a good plan in performance management creates an engaged and aligned workforce. Without one, your organization could lose more than just time and money – you could lose knowledge, employees and, in the end, your competitive edge. 8 (Josh Greenberg) Sources 1. US Department of the interior â€Å"Performance Appraisal Handbook† 2004 http://www.doi.gov/hrm/guidance/370dm430hndbk.pdf 2. Human Resources at UC Berkeley â€Å"Concepts & Definitions† http://hrweb.berkeley.edu/guides/managing-hr/managing-successfully/performance-management/concepts 3. Business dictionary â€Å"Performance Appraisal† http://www.businessdictionary.com/definition/performance-appraisal.html#ixzz1rdm7iVn5 4. Aaron 2011 Difference between Performance Management and Performance Appraisal http://www.differencebetween.com/difference-between-performance-management-and-vs-performance-appraisal/#ixzz1rdoPSf7O 5. Erik Britten, 2011 â€Å"Performance Management Best Practices: What are your 3 tips for managing employee performance?† http://www.focus.com/questions/performance-management-best-practices-what-are-your-3-tips/ 6. Goverment of South Australia â€Å"Managing People, Managing Performance† page 17 http://www.espi.sa.gov.au/files/Managing_people_Managing_Performance_good_practice_guide.pdf 7. HRN performance Solutions, 2012, â€Å"15 Common Errors Managers Make When Appraising Employees† http://www.hrnonline.com/tryit/AppraisalTips-15CommonErrors.asp 8. The Key to Successful Performance Objectives By Josh Greenberg http://performance-appraisals.org/experts/succobj.htm Other Sources: – Cleland David, Munsey Wallace. 1967 â€Å"Who Works with whom?† Harvard Business Review.page 84 – Goldman, Marshal and Conner Alice, â€Å"Businessmen Appraise East-West Trade†.1966. Harvard Buisness Review page 6 -Barrett Rowena â€Å"Factors affecting Perseptions of workplaces Industrial Relations Climate† International Journal of Emplyment Studies, volumen 3 number 2 october 1995 page 77 – http://www.riverlogic.com/documents/effective_performance_management.pdf – Martin Haworth Performance Management – Five Easy Steps To Success http://www.articlesbase.com/management-articles/performance-management-five-easy-steps-to-success-204895.html – http://www.focus.com/questions/performance-management-best-practices-what-are-your-3-tips/