International Trade Theory & Policy Essay Example | Topics and Well Written Essays - 1000 words

International Trade Theory & Policy - Essay Example The model further assumes that all markets conducting trade are perfectly competitive; hence goods are priced according to costs within the countries that produce them where there is a competitive wage in each country. Another assumption is that labor is present in fixed supply in both countries and is static between countries yet perfectly mobile within each country. Modern formulations of the Ricardian model specify for both countries utility functions that the consumers represented maximize on the basis of budget constraints. According to the model, each country specializes in producing goods for which it has comparative advantage. This allows both countries to export goods for which it can gain profits (Bowen, Hollander & Viane, 1998). With such specialization, productivities and labor endowments determine food outputs; hence world prices are dictated by the countries’ demands, which is equal to the supply amount of one country in free and frictionless trade. Both countrie s gain from such trade as trade allows for the expansion of exports production and labor is reallocated to exports from importing industries. Additionally, trade under the Ricardian model increases the relative price of both countries’ exports. ... The model assumes that both trading countries have similar production technologies, thus producing identical output of any commodity can be attained with an equal capital and labor level in both countries (Suranovic, 2010). The model also assumes that output product has constant return to scale in order to produce equilibrium. Additionally, technologies utilized in the production of both commodities differ substantially and labor is costless in terms of mobility within countries. The model also assumes that commodities produced in the countries have similar prices everywhere and countries operate in perfectly competitive markets internally thus labor and capital do not affect prices or production factors. It also assumes that trade is free of government interference in market functioning. When labor becomes more expensive than capital, labor-intensive products are at a disadvantage and become quite expensive compared to products that are not labor-intensive. Under free trade, assumed in the Heckscher- Ohlin model of trade the price of goods in both countries is similar; hence the wage-rent ratio is also the same in both countries. However, when labor becomes expensive, more capital in needed to produce products that are labor intensive and those that are not (Krugman & Obstfeld, 1988). When machine use per worker is similar in both countries, these factors will falsify the equality of wage-rent ratio. Effects of tariffs imposed by â€Å"small† countries A small country refers to a country whose trading partner is big enough to meet its imports supply. Tariffs imposed by small countries increase the price of imports above world prices by the value of the tariff (Jonathan & Kortum, 2002). This

Culture, Technology & Ware Essay Example | Topics and Well Written Essays - 500 words

Culture, Technology & Ware - Essay Example This war led to a division in America. Political and ideological thinking of Americans were also defined by this war. According to Bourque (2010), â€Å"for political and ideological reasons, many today  do  identify all who  willingly engage in sympathy for the Confederate cause,  such as supporting the flying of the Confederate flag, to be engaged in an insult to the United States, an insult to African-Americans, an insult to the human race, an insult to civilized values, close to seditious activity, and close to hate crimes activity.† How people view and think today, can be said to have been rooted to their history. There are many benefits and consequences of wars. One of the most significant effects of wars is its influence to economic institutions and trade patterns (Goldstein, n.d.). War also influenced technological developments. But the despite these influences, chronic wars has drained wealth, disrupted markets and depressed economic growths as well as multiple deaths(Goldstein, n.d.). Across time, changes in the art of war and weaponry occur. Technological advancement often follows necessity in military. According to Professor Goldstein (n.d.), â€Å"governments can coordinate research and development to produce technologies for war that also sometimes find civilian uses (such as radar in World War II).† Developments in communications technology, surveillance, and target acquisitions systems help improve the means of command and control of the military (Anand, n.d). As of right now, we have new advances in biotechnology and nano-technology which have great impact on human health. The conduct in warfare is changing over time. These advances in technology changed the processes in our military and the efficiency of doing their responsibilities. Future warfare may utilize advanced technology and weaponry. Because of these developments, it is just very easy to start a war between one place and

Evaluate Kodaks Position In Traditional Photography Media Essay

Evaluate Kodaks Position In Traditional Photography Media Essay In 1880, George Eastman invented the first camera which uses a dry-plate formula and also a machine to make these plates (Gavetti et al, 2005). George established Eastman Kodak Company in Rochester, New York. The dry plate technology was later replaced by film rolls named as Kodak. In 1888, Kodak Company introduced the camera with the tag line, You press the button we do the rest'(Gavetti et al, 2005). The main goals of company to be successful were to mass produce at low cost, worldwide distribution, aggressive advertising, customers need oriented and continuous RD. In the article Kodak and the digital revolution by G. Gavetti, R. Henderson and S. Georgi, Eastman quoted that, Nothing is more important than the value of our name and the quality it stands for. We must make quality our fighting argument. Kodak used the razor blade model for the business and sold out cameras at cheaper price, while the cost of film and developing was higher. Kodak developed color films in 1921 and was first introduced for consumers in 1963. By the end of 1967, Kodak holds 90% of film making and 85% of camera sales (Gavetti et al, 2005). In 1981, Sony Corporation introduced the first digital camera named Mavica. Kodak had this technology before Sony launched it, but they were afraid of cannibalization of the silver halide technology. Fuji Film came in to market with a 400 speed color film and low cost photographic papers. It was the official sponsor of Olympics 1984. By the end of 1993, Fuji acquired 21% of worldwide market (Gavetti et al, 2005). In 1993, Kodak hired Fisher as the new CEO of the Company. Fisher changed the razor blade business model to network and consumables model. Fisher tried to change the way of thinking at Kodak Company but it did not worked. Later, Fisher was replaced by Former General Manager of Kodak Canada, Daniel Carp. Carp resumed with the same business model. Kodak now excelled in cameras, online services and image printing at kiosk or inkjet printers. Evaluate Kodaks position in traditional photography. Why has the company historically been so successful? In 1885, Eastman established Kodak with the aim of producing a user friendly product. The slogan did the thing of marketing for the company, i.e. You click the button we do the rest.'(Gavetti et al, 2005). The company was very successful and there were literary no competitors to them. Kodak believed in quality and customer need satisfaction. Kodaks marketing strategy kept the customers away from switching to other cheaper brands. The razor blade model helped the company to fetch profits from films and image processing. The introduction of color imaging lagged the competitors far behind. To conclude, during 1970s, Kodak was very successful because of continuous innovation, customer satisfaction and aggressive marketing. This allowed Kodak to setup a standard barrier for other companies to enter the market. Compare traditional and digital imaging. What are the main structural differences? How have value creation and appropriation changed in digital relative to traditional photography. Traditional imaging used silver halide technology while digital imaging used electronic image sensors. Both these technologies are different from the technological point and also in structure and organization of company. In the traditional imaging, films were the only means of storage and Kodak had mastered in that field. While in the digital technology, as the barriers can be easily overcome, there were many new entrants in the market like Fuji and Sony. Digital imaging led to a fast change in the market. The prices fall drastically and customers now need more complementary resources. This new technology was more based on horizontal structure of the company rather than vertical. This led to a complete change in the organization of the company. Companies developed the habit of first mover policy for a particular segment of supply chain. Customers were provided with different complementary resource and continuous improvement in the technology created appropriate value for the company. Thus, digital imaging has led to segmentation of customers based on prices, quality of images, user friendliness and type of storage. Each company should focus on a particular segment and try to maximize its appropriation and thereby the profit margins. Evaluate Kodaks response to Sonys introduction of Mavica in 1981. Kodak used the Razor Blade model in the business of cameras and image processing. They sold cameras at cheaper price and obtained high profits for films and image processing. Kodak earned its profits from film and not from cameras. This model was successful for Kodak and they earned $1 billion in 1962 and captured 85% of the USA camera market(Gavetti et al, 2005). Kodak was recognized for its quality and people preferred Kodak over low cost other brands. In 1981, Sony introduced Mavica, a filmless camera. It stored images in a floppy disk and these images can be seen directly on TV sets. Kodak was afraid of cannibalism of its silver halide technology. The profit margin of silver halide technology was at least 50% more compared to digital imaging. So Kodak decided to continue with the traditional photography. Later Kodak was threatened by the digital photography and so they decided to diversify their business in fields like pharmaceutics, clinical diagnostics and mass storage. This led Kodak away from its core business of photography. Kodak also invested in the digital imaging technology but majority of business was still focused on film photography. Kodaks response to Sonys introduction of Mavica was inappropriate. Kodak management was very much engaged in the traditional photography that they ignored the threat of digital imaging. According to Porters five forces, 1) Rivals like Fuji and Sony were increasing market share by introducing cheap and differentiated products from Kodak. Rivalry is the biggest threat to any company. 2) Other substitutes like mobile phones with camera and camcorders were introduced by other companies. 3) Consumers were moving towards digital cameras were they can save money on printing. Instead of continuing with the traditional photography and looking for higher profits, Kodak should have moved on with new technologies to gain an edge over rivals as they were already holding a large amount of market share. Fisherss Attempt to transform Kodak. In 1993, Kodak replaced Whitmore by hiring George Fisher. Fisher was former CEO of Motorola. Fisher misjudged Kodak as an imaging company and not a film making company. Fisher wanted Kodak to focus on imaging rather than diversified business. Fisher closed most of the diversified business like pharmaceuticals and chemical industry. Fisher helped Kodak to reduce the cost of production by developing joint ventures in China. Fisher also tried to re organize the company and rethink how to expand Kodaks market. Fisher wanted Kodak to make profits in hardware like Motorola and so he developed costly digital cameras which were unsuccessful due to high competition. Fisher had worked in an environment where people argue with each other and make the decision more effective. While Kodak was the company where people were trained to take orders from top management and never argue about it. Thus fishers attempt to make Kodak like Motorola has failed as Kodak is not a hardware company but a service company. Moreover, employees of Kodak were not accustomed to argue with the top management in making decisions. Kodaks current position in Digital imaging. Initially when Kodak entered the market in 1888, their business model was razor blade model. They started selling cameras at cheaper price and earned profits from films and image development. During the era of traditional photography, Kodak earned huge profits from making films and chemicals for image development. After the development of 1st digital camera by Sony in 1981, the market for traditional film photography started shrinking. Kodak took long time before they entered in the digital imaging market. Thats the reason they came down to position 3 in the industry behind Fuji and Nikon (plunkett). Today, Kodaks business is divided in 3 major segments namely, Graphic communication group (GCG), consumer digital imaging group (CDG) and film, photofinishing and entertainment group (FPEG). Sales of 2009 have decreased compared to 2008 due to economic slowdown. Over 2008, Kodaks 2009 GCG sales decreased by 18%, CDG by 15% and FPEG by 25%. Position of Kodak, had they adopted digital imaging strategy in 80s and 90s. The digital imaging era began in 1981, when Sony launched the 1st filmless camera to the market. During this period, Kodak ignored the change in the market and kept on going with the traditional imaging. The company was looking for profits and forgot to consider the future trends. During 1980s, Whitmore tried to diversify the company to various unrelated business. If they had not invested in all those industries and invested in digital imaging, the scenario would be completely different. Kodaks view of digital imaging in 1980s as photo CD was also a disaster. They spend millions of dollars in developing this project and finally end up distributing to the wrong segment of customers. Fishers idea of concentrating on core business was good, and he paid off debts by selling the unrelated business. But he failed to restructure the company as digital imaging company. His idea of Kodak as hardware Company was a blunder as Kodak was good at services rather than hardware production. All this events led Kodak away from the core profitable business of imaging. It allowed rival industries to get ahead in terms of sales and market share. Fuji is making out profits by developing large number of minilabs across the world.

hindu :: essays research papers

  Ã‚  Ã‚  Ã‚  Ã‚  The sixth century B.C., the Hindu religion and the caste system had become a way of life in India. They believed that the only way to gain salvation was by obeying caste rules and following complex ritual. The people taught these ritual were to strict, and did not meet the needs of the common people. So they started to listen to other religions.   Ã‚  Ã‚  Ã‚  Ã‚  Buddhism is a religion founded in India, that share some comparison with Hinduism. Buddhism was founded by an Indian prince born about 563 B.C. His father, a wealthy noble, wanted to protect his son from the harsh realites of the world. But his father couldn’t protect him forever, and when he was about 29 years old he saw a dying man, a sick man in pain and a religious beggar. After seeing these things the prince worried, why was so much sorrow in the world. Then when he was about 35, Siddhartha Guatama decided to sit under a fig until he found answers. He was there for forty-nine days, and that day he saw the reason for life suffering and a way to overcome them.   Ã‚  Ã‚  Ã‚  Ã‚  Gautama started to speak of Four Noble Truths. The first was, sorrow and suffering are part of life. Second, people suffer because they try to get things they can’t have. Next, you had to reach a state of â€Å"not wanting†. The fourth they should have neither too much nor too little pleasure.   Ã‚  Ã‚  Ã‚  Ã‚  Both Hinduism and Buddhism shared some of their beliefs. But there are some differences. Buddhism placed most importance on one’s life, than one caste and they saw little value in complex rituals. He taught that a person could get enlightenment in one lifetime. As Buddhism spread, disagreements grew up about some of its teachings and beliefs. At first Buddha was saw as a guideline for living. His followers saw him only as a teacher. Then a philosopher named Menius taught that the welfare of the people were the main concerns of a ruler. And if that wasn’t the rulers main affair, he should be overthrown. Confucius a traveling bureaucrat named K’ung Fu-tzu, was regarded as China’s greatest thinker and teacher. He was not really concern with the soul, the afterlife nor the worship of gods. He was more concern with questions of morality. Confucius had five basic relationships. They are: between ruler and subjects, father and son, husband and wife, older and

Study of Behavioural Finance: A Critical Evaluation

Behavioural Finance is a relatively new and popular subject in the area of finance which is being widely used in the stock markets world over. Behavioural finance is the study of the psychology of the investors in connection with their financial decisions. It is usual that the investors fall prey to the mistakes committed by their own decisions or due to the advise of others by using their emotions in the investment decisions.The study of behavioural finance tries to explain the action of the people in forgetting the fundamental principles of financial decision making and making investments on the basis of emotions. 2. 0 Fundamentals of Market Efficiency: An efficient stock market is one in which stock prices fully reflect available information. According to Andrei Shleifer (2000) there are three determinants of market efficiency. They are (1) Rationality, (2) independent deviations from rationality, (3) arbitrage. 2. 1 Rationality:Under the conditions of rationality, it is assumed t hat when new information is released in the market place, all investors will adjust their estimates of stock prices in a rational way, without heeding to their emotions. This is one of the foremost assumption and condition basic to classify the stock market as efficient. (Ross Wasterfield Jaffe) 2. 2 Independent Deviations from Rationality: Due to emotional resistance it may so happen that some investors could just as easily react to the new information in a pessimistic manner.If the investors are primarily of this type the stock market prices are likely to rise less than the expectations of an efficient market conditions. On the other hand if a proportion of the investors was irrationally optimistic and reacts positively to the new market information then there is the likelihood of an increase in the stock market prices. Since the stock market will consists of investors of both kinds always the stock market would remain efficient. Thus this condition also leads to an efficient stoc k market. (Ross Wasterfield Jaffe) 2. 3 Arbitrage:The stock market consists of both irrational amateurs and rational professional investors. Based on their irrational thinking some times the amateurs may carry the stocks either above or below their efficient prices. This irrational thinking comes as a result of their emotions about the valuation of the stocks. The professionals on the other hand do not react on the basis of their emotions but evaluate the market information coolly and clearly and make their investment decisions. This way the professionals have more confidence than that of the amateurs.This enables the professional to take larger risks on certain stocks even knowing that such stocks are mispriced, while the amateurs might take risk for a smaller sum. Here ‘Arbitrage’ comes into place. Arbitrage generates profit from the simultaneous purchase and sale of different but substitute securities. If the arbitrage of professionals dominates the speculation of am ateurs markets would still be efficient. This is one of the determinants of market efficiency. (Ross Wasterfield Jaffe) 3. 0 Behavioural Challenge to Market Efficiency:According to Prof. Shleifer any of the above three conditions would will lead to market efficiency. Normally it is assumed that at lease one of the conditions would be prevalent in the real world. But many academicians argue that none of these conditions would hold good in reality. This point of view is based on what is called the ‘behavioural finance’. According to this theory there are several factors that influence the investment decisions of the individuals like tax planning as well as profit maximization.By their trading the investors create commissions as well as taxation. This naturally brings irrationality into their investment decisions. However the behavioural theory states that ‘not all investors are irrational; rather it is that some perhaps many investors are’. On the question of deviations from rationality there are two principles of psychology namely ‘representativeness’ and ‘conservatism’ that can be applied to finance and market efficiency where people deviate from rationality.Under the condition of representativeness people act and draw conclusions from too little data. This principle when applied to stock market, in a market dominated by representativeness there is every chance that the market may move toward a bubble. It may so happen that people see a sector of the market, for instance internet stocks having a short history of high revenue growth may attract more investors in the hope that the revenue growth would continue for ever. When the growth inevitably stalls the stock prices have naturally to come down.Under the second principle of ‘conservatism’ people are considered too slow in adjusting their beliefs to new information. The stock prices seem to adjust slowly to the information contained in the earnin gs announcements due to slow reaction of the investors to adjust their belies to the new information under conditions of conservatism. (Bernard and Thomas, 1990) Under ‘arbitrage’ concept of efficient market it is suggested that the professional investors, even though they know certain securities are mispriced they could buy them by selling the correct priced or over priced substitutes.This might result in undoing of the mispricing caused by the emotional amateurs. But the behavioural finance theory claims that trading of this sort is likely to be more risk. There is a possibility of this correction only when the amateurs act in opposite way to the way in which the professionals act. Moreover the volume handled by the amateurs should be relatively small for the professional investors’ actions to take effect. There is also a possibility that the amateurs make further mispricing of the securities.This risk of further mispricing even when there is no new market info rmation might demand the professionals to cut back their arbitrage position. Thus the near term risk would reduce the size of arbitrage strategies. In conclusion the arguments presented here suggested the determinants or conditions leading to efficient markets in reality do not exist. The behavioural finance theorists suggest that the investors may be irrational, irrationality may be related across investors rather than cancelling out across investors and arbitrage strategies may involve too much risk to eliminate market efficiencies.` 4. 0 Behavioural Finance and Keynesian Approach: â€Å"A conventional valuation which is established as the outcome of the mass psychology of a large number of ignorant individuals is liable to change violently as a result of the sudden fluctuation of opinion due to factors which do not really make much difference to the prospective yield; Since there will be no strong roots of conviction to hold it steady. † (Keynes, 1936)Thus it may be noted that the relevance of the psychological factors to the operation of the stock market and the relative changes in the prices and their impact on the economic development is not entirely confined to the review by behavioural economic theories or financial theories. The origin of this phenomenon can be traced back to the works of Keynes with his remarks of ‘animal spirits’ and the part played by uncertainty and confidence in contributing to the growth of the economy and creation of employment opportunities.According to Keynes the psychology of the economic agents is susceptible to disturbances and manipulation. It is viewed that psychology is one of the key elements in shaping up the economy which is in quite contrast with the view of the main stream where the emphasis is always placed on the rational behaviour of various economic agents. Hence there may arise an argument that the approaches of behavioural finance in describing the impact of the psychological factors are m ostly the justification of the Keynesian ideas.Kindleberger (1978) has provided a description of the behavioural aspects of the financial markets closely resembling the ideas of Keynes. According to Livio Stracca (2004) â€Å"the behavioral finance literature, however, contains some important innovative elements compared with the Keynesian approach, namely the stronger focus on experimental – and in general empirical – evidence and the larger use of formal models, which may lead to sharper predictions.So, one might conclude that while behavioral finance is close in spirit to the Keynesian tradition, it makes use of a different methodology and analytical framework. † 5. 0 Objectives of Behavioural Finance: Though subjected to severe criticism the contribution by behavioural finance to modern finance is considerable. The main objective of behavioural finance is to understand and report on the implications of the investors’ psychological reactions on the sys tematic market behaviour.It is important to consider the impact of such psychological reactions on the markets from an economic perspective especially on those markets which are large and does not have nay strategic interactions. (Mas-Colell, 1999) The existing theories of behavioural finance are not matured enough to provide a coherent and unified explanation for human behaviour in the context of market transactions as is expected in the main stream economics and modern finance have provided through the expected utility theories.However there are certain studies like the ‘cumulative prospect theory’ contributed by Starmer and Sugden (1989) and Tversky and Kahneman (1992) provide better alternative theories on the behaviour of market agents acting under risk which may be considered as superior to the expected utility theory. The economic perspective of the behaviour of the agents on the basis of maximization of the expected utility is not accepted by the behavioural fin ance.The ground on which such rejection is attempted relates to the evidences available to point out that market agents do not behave according to the axioms of expected utility both under circumstances of controlled experiments as well as in real life situations. (Starmer, 2000) According to Livio Stracca (2004) the focus of the behavioural finance is to describe the human behaviour in a positive way under conditions of risk and uncertainty instead of a normative approach of such behaviour which is typical under the mainstream approach. 6.0 Conflict between Modern Finance and Behavioural Finance: The concept of behavioural finance has always been subject to criticism. Ball (1996) and Fama (1998) have contributed much in this direction. Apart from this there had been continued conflicts between the Modern Finance (also described as ‘Financial Economics’) and the behavioural finance theories. The modern finance has always tried to overrule the behavioural finance theory by adding its own methods and models on the latter without any major changes in its own methodology.In other word the modern finance has marginalized the behavioural finance by converting it to an ‘anomalies literature’ as conceived by Frankfurter and McGoun, (2000) The results and findings of various studies in the area of Efficient Market Hypothesis and Capital Asset Pricing Model combination have cast serious doubts on the ability of these concepts in establishing any acceptable finance theories on the stock market behaviour in the modern finance area. This has also resulted in a â€Å"potentially precipitating crisis† for the modern finance theory.However instead of understanding and appreciating the seriousness of these problems, the theorists named them ‘anomalies’ and accepted them to denote an acceptable group of aberrations against common beliefs rather than viewing them as serious challenges to the whole beliefs themselves. The theorists li ke Fama (1998) also suggested that such anomalies can be made to disappear by gathering more data with more diligence and putting the data so collected to rigourous statistical tests. However there were conflicting views to this approach and this formed the basis for the behavioural finance theory. 7.0 Role of Anomalies in Behavioural Finance: The word ‘anomaly’ has gained a substantial recognition and prominence in the literature relating to finance as a branch of economics. The word also denotes a complete set of studies that have brought out evidences which are in contrast to the theory of efficient market hypothesis and/or the Capital Asset Pricing Model (CAPM) The conceptual purpose of anomalies has two dimensions in the study by These dimensions relate to the identification of the significance of the term in the area of finance and the role of anomalies in the growth of scientific knowledge in the financial world.The word ‘anomaly’ has been defined di fferently by different scholars. But the word ‘anomaly’ in financial economics focuses on the irregularity, or a deviation from the common or natural order, specifying an exceptional condition. In order to provide a meaning to these terms Thomas Kuhn (1970) states â€Å"Discovery commences with the awareness of anomaly, i. e. , with the recognition that nature has somehow violated the paradigm-induced expectations that govern normal science. It then continues with a more or less extended exploration of the area of anomaly.And it closes only when the paradigm theory has been adjusted so that the anomalous has become the expected. †(Kuhn, 1970) An extensive study of the anomalies would result in a scientific approach to the whole issue of the behavioural finance aspects. 7. 1 Post –Earnings Announcement Drift and Behavioural Finance: Most of the studies show that the stock returns are highly predictable after the announcement of the earnings. It so happens t hat the stock prices react instantly to the announcements about the earnings and will continue to change during the first three quarters in the same direction.The prices will reverse the direction partially in the last quarter. Chan et al (1996) have illustrated that the changes after the post-earnings announcements do not have any relation to the price momentum. It has also been established that the post-earnings announcement changes is closely correlated to the behavioural model in the same way as the prices react very slowly to the market information . Bernard and Thomas (1990) present a model in which the investors do not have any knowledge about the potential for the future earnings. 8. 0 Financial Anomalies and Behavioural Finance:A financial anomaly can be explained as a documented pattern or price behaviour which is not consistent with the â€Å"prediction of traditional efficient markets, rational expectations asset pricing theory† (Alon Brav and J B Heaton, 2002) Th is theory comprises of two characteristic features. The first one is that the investors have a through knowledge of the basic structure of the economy and the second one is that the investors are expected to be â€Å"rational information processors† who are capable of arriving at statistical decisions that are optimal.According to the Freidman (1979) the investors in the benchmark theory are able to possess knowledge and are able to â€Å"access both to the correct specification of the ‘true’ economic model and to unbiased estimators of its coefficients†. However in view of the increased evidences against the traditional models, competing theories of financial anomalies have been evolved. On the evolution of these theories certain relaxations have been made to the two assumptions of ‘full knowledge of the economy’ and the ‘rational information processing capabilities’. The second assumption has the relaxation backed by the behavio ural explanation.The behavioural theory suggests that the investors due to the impact of the cognitive bias may not have the capacity to process the information rationally (Thaler, 1993). The results of the experiments conducted to study the behavioural finance theories provide the basis for many other behavioural theories that though the investors possess a sound knowledge of the basic structure of the economy the investors tend to act irrationally. Thus the irrationality found in the behavioural finance forms the basis for several theories that explain the financial anomalies.According to Shiller (1981) there are evidences to show that the stock prices vary to a large extent in close relation to news about future dividends etc. due to the financial anomalies emanating from irrationality. Here again it can be seen that the behavioural finance theory provides the basis for the financial anomalies. 8. 1 Behavioural Finance and Asset Pricing: While the behavioural finance is considere d to have identified the financial anomalies there are chances that these anomalies may affect the market prices of securities.On a survey these anomalies have been grouped under different categories by Livio Stracca (2003) in the paper ‘Behavioural finance and asset prices: Where do we stand? ’ and the study extends further to assess how these anomalies may affect the stock market prices. The anomalies can be explained as the qualities of the behaviour of the economic agents that do not come under the purview of the expected utility model of the main stream economics. There are quite a number of anomalies identified by the behavioural finance based on the experimental evidences. Some of the anomalies are discussed hereunder: Decision Heuristics:One of the major anomalies identified by the behavioural finance theory is the action of the representative agents in using available short cut methods and rules of thumb while considering various alternatives since he may not h ave the ability to solve the problems that are complex in nature in view of the costs involved in deliberating and optimizing the revenues. Emotions and Visceral Factors: These factors do have a role in the decision making process of the agents (Loewenstein, 2000) Choice Bracketing: This denotes the general tendency of the agents to narrow down the choices due to the complexities involved in the alternatives.One of the examples is the shorter time available for decision making. Stochastic and Context-dependent Preferences: The theory has identified the presence of stochastic and context dependent preferences in the place of ‘well defined and deterministic’ preferences which are a rarity. (Loomes & Sugden, 1995) Reference Dependent Models: In the review of anomalies by the behavioural finance there is no precise and abstract definition of the preferences of the consumers in terms of consumption or other variables as has been dealt with in the standard approach; rather th ere are reference points identified to denote the preferences.However, it must be noted that till date there is no precise behavioural finance model which has considered all the anomalies and made an analysis there of (Shleifer, 2000). 9. 0 Accounting Anomalies and Stock Market Efficiency: Some part of the trading in securities which are subjected to behavioural aspects of human beings relate to the trading on the basis of the balance sheet data and opinions expressed by the statutory auditors of the listed companies. Hirshleifer et al.(2004) and Taffler, Lu and Kausar (2004) have documented the impact of trading on the basis of accounting results and audit opinions and the abnormal returns resulting there from. However Sudipta Basu (2004) opines that the study has not taken into account the high transaction costs involved especially in selling transactions which would prove that the trading strategies on the basis of accounting results might become unprofitable. Sudipta Basu (2004) further argues that though the study of Hirshleifer et al.and Taffler et al cite the behavioural finance theories to explain the reasons for the abnormal returns, market inefficiencies may arise due to â€Å"poor market designs, poor benchmark models, regulatory interferences, test misspecification or other joint hypothesis violations† (Sudipta Basu, 2004) He is of the opinion that there are some other factors other than behavioural finance theory that will explain the abnormal returns and the reaction of the stock market while trading merely on the basis of the accounting data and the audit reports of the listed companies.10. 0 Behavioural Finance Theory – Impact of Gender Differences: The individual investor behaviour had been studied extensively by Odean (1998) and Barber and Odean (1999). The studies have provided normative and empirical results about the various investor behaviours. The studies have proved the basic facts that the investors trade in securities to a great extent and the trading largely reduce the net gains of investors. It has also been proved that the investors are reluctant to realize that they are making losses in such trading.The studies also show that there is more number of men dealing in securities than women. In the United States 80 percent of the investors are males while women constitute only 20 percent of the investing public. Barber and Odean (2001) show â€Å"that men trade 45 percent more than women. Trading reduces men's net returns by 2. 65 percentage points a year as opposed to 1. 72 percentage points for women. † As a part of the behavioural finance L. Feng, M. S. Seasholes (2007) conducted a study on the participation of men and women in the securities trading in the Peoples Republic of China.The results of the study was in stark contrast to the existing studies in which it was found that both male and female investors take part almost equally in the stock trading in China. The study also reports th at men have slightly larger portfolios and take greater risks than women. But the investment behaviour of both men and women are more or less similar in the following respects: ? Both males and females suffer from an equal home bias. ? It is the tendency of the men to invest in stocks with higher betas and mostly the stocks women buy over-perform the stocks bought by men.Similarly the prices of stocks that are being sold by men go down to a larger extent than those being sold by women. In sum the performance of both genders remain more or less same on a statistical base. ? The trading intensity among both the genders remain the same though men tend to trade more before controlling the factors like the number of share and the ability to trade on the stocks over telephone. After giving effect to these factors the trading intensity of men and women remain the same.The study also revealed that the gender differences do play a role in the stock trading in China to the extent the faciliti es for remote trading through telephone and compute are available. This is understandable due to the fact most of the people trading in stocks are youngsters and the young women who have other occupations may not have the chance of trading by physically visiting the stock exchange. They need the support of the trading through telephone or computer and this affects their trading tendency.This interpretation of trading by young investors is corroborated by Barber and Odean (2002) by their study on the young men representing the active investors. This study goes to prove the application of the behavioural finance theory on the investment behaviour of the different genders and it is proved that both men and women behave in the same way as the behavioural finance theory assumes with irrationality and deviations from rationality depending on the circumstances. It can be observed that the gender makes no difference in the application of the behavioural finance theory with respect to the st ock market trading.11. 0 Behavioural Portfolio Theory: Hersh Shefrin and Meir Statman (2000) have developed a Behavioural Portfolio Theory (BPT) based on the lines of the work by Friedman and Savage (1948). The authors have developed the theory on the foundation of the prospect theory advocated by (Kahneman and Tversky (1979) which in turn was developed on the work of Friedman and Savage (1948). The BPT also suggests an efficient frontier which is not equivalent to the mean variance coefficient frontier.In mean-variance investors select the portfolios on the basis of the mean and variance where as the BPT investors take the anticipated wealth, their intention to ensure security and the potential aspiration levels that the investors want to reach as the base for their investment decisions. The optimal portfolio decided by the BPT investors is also different from that of the CAPM investors. The optimal portfolio of the investors under CAPM prefers a combination of a market portfolio a nd the risk factors associated with the securities. In the case of BPT the optimal portfolio mostly looks like a combination of bonds and lottery tickets.12. 0 Criticisms on Behavioural Finance Theory: The important people among the theorists who raised sever criticisms against behavioural finance are Ball (1996) and Fama (1998). Ball (1996) adopted a direct approach in leveling his arguments by saying that the Efficient Market Hypothesis has to be continued to be adopted because 1. There was no alterative theories available which can better explain the stock market behaviour 2. The Efficient Market Hypothesis was considered sufficient at that point of time taking into consideration the application of the principles of the theory and3. The Efficient Market Hypothesis had been accepted by everyone. Ball (1996) considered the contribution of DeBondt and Thaler (1985, 1987) to the behavioural finance as the only alternative to the Efficient Market Hypothesis and dismissed it by describ ing it as the investors’ myopia developed by DeBondt and Thaler (1985, 1987). He also found the work of these authors as ‘grossly inconsistent’ with the possible notions of the modern stock markets which are highly competitive and also that the behavioural finance is also ineffective with its anomalies.The approach of Fama (1998) in criticizing the behavioural finance is different from that of Ball (1996) in which he made a comparison of the contributions by 20 different authors and formulated his own views and opinions to discredit the concepts of behavioural finance. Fama (1998) made a thorough screening of the papers selected and followed a systematic approach to discredit the empirical evidences in support of the behavioural finance. Based on this analysis he argues that since the evidences on the behavioural finance are only random and conflicting the behavioural finance itself presupposes the efficient market hypothesis.Fama (1998) selected the papers for s tudy from the domain of ‘post-event studies’. By a study of these papers he arrived at the view that behavioural finance is nothing but a synonymous representation of the anomalies encountered in the event studies. Fama (1998) thus makes the point that â€Å"in short, BF is nothing more than an aggregation of so-far inexplicable phenomena encountered in testing the EMH/CAPM. It has no independent existence; it is not a methodology in its own right; it has been assimilated. † 13. 0 Conclusion:Form the foregoing discussion it is observed that the behavioural finance opposes the existence of the three determinants namely rationality, deviation from rationality and arbitrage decisions which form the basis of an efficient stock market. The behavioural finance theory thus aims at studying the psychological behaviour of the investors in their investment decisions. The theory encompasses views that are contradicting the concepts promoted by the efficient market hypothesi s and also the capital asset pricing model.The theory has made an analysis of various financial anomalies in order to report the impact of such anomalies on the stock market operations and the stock prices. The behavioural finance theory can be regarded as an extension of the Keynesian views on psychology as it affects the economic development. It has been observed that there are certain accounting anomalies which also affect the behavioural pattern of the investors. It has also been observed that gender differences do not affect the concepts of the behavioural finance. There are different financial anomalies identified by the behavioural finance theory.The theory was also subject to severe criticism on its applicability to varying market situations. References: Alon Brav and J. B. Heaton (2002) ‘Competing Theories of Financial Anomalies’ The Review of Financial Studies, Vol. 15, No. 2, Special Issue: Conference on Market Frictions and Behavioral Finance. (2002), pp. 57 5-606 Andrei Shleifier (2000) ‘Inefficient Markets: An Introduction to Behavioural Finance’ Oxford United Kingdom Ball, R. , 1996. The theory of stock market efficiency: accomplishments and limitations. Journal of Financial Education 22, 1–13. Bernard, V. , Thomas, J.(1990) ‘Evidence that stock prices do not fully reflect the implications of current earnings for future earnings’ Journal of Accounting and Economics 13, 305–340. Chan, L. , Jegadeesh, N. , Lakonishok, J. , 1996. Momentum strategies. Journal of Finance 51, 1681–1713. Fama, E. , (1998) ‘Market efficiency, long-term returns, and behavioral finance’ Journal of Financial Economics 49, 283–306 Frankfurter, G. M. , McGoun, E. G. , 2000. Market efficiency and behavioral finance: the nature of the debate, The Journal of Psychology and Financial Markets 1, 200–210. Hirshleifer, D. , Hou, K. , Teoh, S. H. , Zhang, Y., (2004) ‘Do investors overvalue fi rms with bloated Balance sheets? ’ Journal of Accounting and Economics Vol. 38 p 1–3 Keynes, J. M. (1936). The general theory of employment, interest and money Available: http://cepa. newschool. edu/het/essays/keynes/gtcont. htm. Kuhn, T. S. (1970). The structure of scientific revolutions Chicago: The University of Chicago Press. Kindleberger, C. P. (1978). ‘Manias, panics, and crashes’ Wiley Livio Stracca (2004) ‘Behavioral finance and asset prices: Where do we stand? ’ Journal of Economic Psychology Vol. 25 p 373–405 Mas-Colell, A. (1999). The future of general equilibrium.Spanish Economic Review, 1, 207–214. Ross A. Stephen, Westerfield A. Tandolph Jaffe Jaffrey ‘Corporate Finance’ Edition VII Tata-McGrawhill Publishing Company Ltd Shiller, R. J. (1987). Comments on Miller and Kleidon In: R. M. Hogarth, & M. W. Reder Eds. ), Rational choice: the contrast between economics and psychology ( pp. 317–321). Chic ago: University of Chicago Press. The Oxford English dictionary (2nd ed). Oxford: Clarendon Press. Starmer, C. (2000). Developments in non-expected utility theory: The hunt for a descriptive theory of choice under risk. Journal of Economic Literature, 37, 332–382. Starmer, C., & Sugden, R. (1989) Violations of the independence axiom in common ratio problems: An experimental test of some competing hypotheses. Annals of Operational Research, 19, 79–102. Sudipta Bsau (2004) ‘What do we learn from two new accounting based stock market anomalies? ’ Journal of Accounting and Economics Vol. 38 p 331–348 Taffler, R. J. , Lu, J. , Kausar, A. , 2004. ‘In denial? Market under reaction to going-concern audit report disclosures’ Journal of Accounting and Economics Vol. 38 p 1–3 Tversky, A. , & Kahneman, D. (1992) Advances in prospect theory: Cumulative representation of uncertainty. Journal of Risk and Unc

When Dealing with International Markets, It’s Also Imperative

There is no doubt that if you deal with international markets, you should be familiar with their laws and regulation as they pertain to marketing. This is imperative and you should take it seriously. It must be god understanding in the law of the country where you launch a campaign. But it is not always possible to know all the nuances. So, what is right in this situation? On the one hand, some people consider that marketers must know and observe the regulations and laws of the country in which they operate.To my mind, it is the obvious facts. All advertising should be legal, decent, honest and truthful. Before launching a campaign in international markets, you should learn all the prohibitions and laws of this country, so you do not have problems with complaints about your advertising or marketing actions. On the other hand, some people believe that there should be common standards, rules and regulations for the global market.It is obvious that in order to learn the laws and prohibi tions of the country where you launch a campaign, it is necessary to spend a lot of time and effort to get it right. In conclusion I would like to say that there is one rule you should pay attention to is to think local. Because now is the era of globalization and we live in a very localized world. To determine international advertising standards, you must be aware of the advertising laws, rules and regulations of each nation.

Machines essays

Machines essays Subject: English Commonwealth Essay Machinery has always been an indispensable part of our lives. Originating as simple machines such as pulleys and levers, machines first came into existence thousands of years ago. These simple machines were to enable the application of force more efficiently. Over the centuries, man combined simple machines to come up with complex ones. Ever since the Industrial Revolution, which began in the late 17th century, more efficient and complicated machines have surfaced, the sewing machine, typewriter and telephone, just to name a few. At the turn of the last century, technology has advanced at such a rapid pace that our lives literally revolve around and depend most heavily on machines. We have rice cookers and microwave ovens to cook our food. We have dishwashers to wash our dishes. Also, almost all of our work is done on computers. Everyday when we commute from one place to another, we almost always depend virtually on vehicles. Indeed, machinery has brought a lot of convenience to our lives. We have vending machines to provide us packaged food twenty-four hours a day. Not only do we have telephones to communicate, we even have mobile phones. Besides personal computers, we have laptops and palmtops which can fit easily into a briefcase or a pocket. Just recently, the invention of robots has emerged. There is even talk that robotic devices could become a member of the household, alongside the washing machine and the vacuum cleaner! The invention of automobiles has led to an even bigger invention aeroplanes. Aeroplanes, ranging from private planes to jumbo jets, can transport up to hundreds of passengers from one continent to another within hours. This not only brings the world closer, but also connects one to the most inaccessible and remotest places on earth. The revolution of the amazing computer has paved the way for the Internet. The Internet enables us to send electronic mails,...

Influence of sex roles on the manifestation of leadership

Influence of sex roles on the manifestation of leadership During the old gone days, it was an abomination to belong in homosexual groups, people with disability were rejected, women and older individuals were undermined. In the world of today, it is seen that the minority groups such as the gay, lesbian, older individual, women and individual with disability are on the rise.Advertising We will write a custom essay sample on Influence of sex roles on the manifestation of leadership specifically for you for only $16.05 $11/page Learn More All over the world these groups have started to be recognized as a result of increased lobbying by human rights organizations. Therefore, this paper seeks to define a cultural group and highlight factors which make the groups of homosexuality, women, older individual and individuals with disability to constitute a cultural group. According to Feldman (1984), a cultural group is a group of people with similar cultural experiences and share common characteristics. These common charact eristics may include religious inclination, ethnic background and commonality as defined by the physical appearance of the group members. It also includes a similarity in the sociological characteristics of the group. Given the above as our working definition, it is clear that sociological factors assist in defining a cultural group. This automatically makes the gays, and lesbians cultural group. Gays are male individuals who practise sex activity amongst themselves while the lesbians are female individual who practise sex activity amongst fellow women. It is therefore worthy to note that these groups are defined with a commonality of practicing homosexual activity. Socially, it is believed that marriage happens between different genders. However, this minority finds same gender sexual relationship satisfying. Therefore, the common factor within this group is the ability to find sex between people of similar gender satisfying. This is a sociological commonality. As a result, they al l belong to a cultural group since they share a similar cultural experience (Feldman, 1984). Another outstanding characteristic of a cultural group is physical commonality. Disability impedes with normal functioning of the body. It leads to difficulties in performing common and simple day to day tasks without special assistance. This makes individuals with disability to have a common cultural experience characterized by incapacitation.Advertising Looking for essay on gender studies? Let's see if we can help you! Get your first paper with 15% OFF Learn More Incapacitation means the body of a person does not function properly and require some help in order to perform daily routine. There are different levels of incapacitation like blindness, deafness, cripple, mental handicap to name but a few that make individual to have a common physical characteristic hence leading them to belong to a cultural group (Megargee, 1969). Apart from physical disabilities, old age can also be classified as a characteristic that can make one belong to a cultural group of the aged. These are people who have lived long and had some of their body organs fail to function normally. Similarly, they also have a common physical appearance in addition to some common incapacitation. Furthermore, the way aged people behave draws a common line between them making them sociologically bound by a common behavior. Finally, aged people tend to have grown under similar culture and events making them similar in their way of life (Megargee, 1969). Finally, physical commonality and sociological commonality make women a distinct cultural group. Physically, women have similar characteristics. They are also believed to be weak as compared to men. Their social positions in certain communities tend to make them distinguished from the rest of the population. This makes them a cultural group defined by commonality in physical appearance and sociological characteristics. In conclusion, t he factors discussed above (homosexuality, incapacitation and age) are some of the factors that lead to a similar commonality. However there are other factors which have not been highlighted in the paper. It is therefore prudent to argue that the mentioned groups are well distinguished cultural groups. This is important because it gives policy makers ability to formulate appropriate policies to better lives of the people. Reference List Feldman, D.C. (1984). The development and enforcement of group norms,  Academy of Management Review, 9, 47-53. Megargee, E. (1969). Influence of sex roles on the manifestation of leadership.  Journal of Applied Psychology, 53, 377-382.Advertising We will write a custom essay sample on Influence of sex roles on the manifestation of leadership specifically for you for only $16.05 $11/page Learn More

Memorable Lucille Ball Quotes

Memorable Lucille Ball Quotes Lucille Ball began her career in musical comedy, became a success in radio comedy, starred in several movie comedies, and achieved her greatest popular success with her TV show, I Love Lucy, first airing in 1951 and running until 1957. She also starred in The Lucy Show (1962-68) and Heres Lucy (1968-74). Lucille Ball and Desi Arnaz, who produced I Love Lucy together as well as starred in the show, were married from 1940 to 1960. Lucille Ball managed Desilu Productions from 1962 to 1967 and Lucille Ball Productions from 1967 to 1989. Selected Lucille Ball Quotations I never thought I was funny. I dont think funny. Im not funny. What I am is brave. Ability is of little account without opportunity. The secret of staying young is to live honestly, eat slowly, and lie about your age. If you want something done, ask a busy person to do it. The more things you do, the more you can do. Luck? I dont know anything about luck. Ive never banked on it, and Im afraid of people who do. Luck to me is something else: Hard work - Â  and realizing what is opportunity and what isnt. One of the things I learned the hard way was that it doesnt pay to get discouraged. Keeping busy and making optimism a way of life can restore your faith in yourself. I think knowing what you cannot do is more important than knowing what you can do. In fact, thats good taste. I would rather regret the things that I have done than the things that I have not. In life, all good things come hard, but wisdom is the hardest to come by. I have an everyday religion that works for me. Love yourself first, and everything else falls into line. You really have to love yourself to get anything done in this world. Once in his life, every man is entitled to fall madly in love with a gorgeous redhead. My God, Im outliving my henna. Womens lib?...It doesnt interest me one bit. Ive been so liberated it hurts. Politics should be the part-time profession of every citizen who would protect the rights and privileges of free people and who would preserve what is good and fruitful in our national heritage. Its a helluva start, being able to recognize what makes you happy. Not everything that is faced can be changed, but nothing can be changed until it is faced. I regret the passing of the studio system. I was very appreciative of it because I had no talent. What could I do? I couldnt dance. I couldnt sing. I could talk. Heaven, no. I was shy for several years in my early days in Hollywood until I figured out that no one really gave a damn if I was shy or not, and I got over my shyness. You see much more of your children once they leave home. Use a make-up table with everything close at hand and don’t rush; otherwise you’ll look like a patchwork quilt. A man who correctly guesses a womans age may be smart, but hes not very bright. What we did on [i[I Love Lucy was not slapstick. I worked with the Three Stooges years ago, and they were masters of slapstick, so I know what slapstick is. The best thing I learned from working with the Stooges was when to duck! Its true. Your timing has to be right so that you dont get hurt in the scene. The Stooges were always teaching people on the set how to duck. You spell Bob Hope C-L-A-S-S. I dont do T A very well because I havent got much of either. Quote collection assembled by Jone Johnson Lewis.

IT - Project Summary Essay Example | Topics and Well Written Essays - 1500 words

IT - Project Summary - Essay Example The mission state to define the future of mobile media and computing devices with iPad The expected result of this project is approximately 60% decrease in the time taken by the employees to complete a business transaction and also complete elimination of the inconveniences that are brought about by human error. In addition the transport cost that the company incurs annually will be halved. The proposed technology has substantial intellectual merit for a number of reasons: the resources wasted by the employees in performing a business task using the current information technology are saved and used to expand the business; the work environment that the employees will have will be favorable and at the same time the company will have the opportunity of outdoing the competitors in the market. This will eventually translate to the company’s profit. The tablet computing project is going to have wide implication on the company and the industry for many reasons: there will be a good f low of information between different departments and different branches. It will entail cloud computing where all the operation done in the business and data storage are based in the internet. The key tool that is used to achieve this is by use of iPads from the leading technologist Apple. The mission state to define the future of mobile media and computing devices with iPad The expected result of this project is approximately 60% decrease in the time taken by the employees to complete a business transaction and also complete elimination of the inconveniences that are brought about by human error. In addition the transport cost that the company incurs annually will be halved. The proposed technology has substantial intellectual merit for a number of reasons: the resources wasted by the employees in performing a business task using the current information technology are saved and used to expand the business; the work environment that the employees will have will be favorable and at t he same time the company will have the opportunity of outdoing the competitors in the market. This will eventually translate to the company’s profit. The tablet computing project is going to have wide implication on the company and the industry for many reasons: there will be a good flow of information between different departments and different branches. It will entail cloud computing where all the operation done in the business and data storage are based in the internet. The outcome of this project will enable the company to digitalize all the business operation and the security of information is enhanced because this technology provides the best information confidentiality, authenticity, accuracy and availability. The idea of any businessman or woman having to return to the office every time they needed to send an email or check the shipping status of inventory is preposterous; however not long ago it was reality. In today’s age given tablet computing, which provide s reliability and accuracy to users; companies can stay on the cusp of an ever-growing competitive edge with Tablets. Another benefit for businesses is iWork, an app that allows companies to create and share documents, presentations and spreadsheets. Mission statement they claim to be â€Å"†¦ defining the future of mobile media and computing devices with iPad. It is this futuristic outlook that separated Apple from competitors and launched them into such endeavors as the iPad. Another benefit is the way in which the client will feel towards the business since they can get the service at the convenience of their home. This will boost the corporate image of the company since it will join the few companies that have embraced advanced information technology. Reference Dietz, J. (2009). Project Summary: Evaluation of new and emerging technologies. U.S. project

Organizational Structure Presentation Communication Methods Essay - 1

Organizational Structure Presentation Communication Methods - Essay Example There must be effective communication at different levels in order for medical practitioners and other health care providers to operate efficiently. The managers should support open communication within the organization. In addition, the managers in the organization will be responsible for communicating to the junior workers, telling them what they are expected to do and the issues concerning the new strategy to be introduced (long-term care services). Communication should easily flow from one department to the other or from one person to another. Subordinates should have the feeling that they are authorized to ask questions and raise issues about processes and advancements involved in this new strategy. Similarly, all employees should communicate efficiently with the patient and family (Buchbinder & Shanks, 2012). Poor communication always threatens the life of patients. Communication with the patient or family is important because it will provide information concerning the conditio n of the patient. Apart from communicating treatment instructions, workplace communication also delivers information concerning the condition of the patient and diagnosis. Open communication and the generosity of sharing information create greater action and improved efficiency. Through collaborative leadership, the manager will always concentrate on building consensus and upright interpersonal associations. This will happen through participation and communication. The main importance of open communication is its ability to increase the level of transparency in an organization. The process improves trust between different levels of workers. Lack of effective communication in an organization can lead to anger, pressure and feelings of insecurity at the workplace. Good communication allows workers to feel as part of the organization. They will also feel

A questionnaire for a career choice Term Paper Example | Topics and Well Written Essays - 1000 words

A questionnaire for a career choice - Term Paper Example A questionnaire for a career choice To begin with, she needed a career path and a sound decision towards the same. She seems to possess confusion as regards her interests. She seems to love poker, cooking, gardening and working out. On the other hand, she has been both a player and a coach of tennis and basketball. It is vital to note that she had an earlier fantasy of being a sports’ writer. There are core problems that she seeks to address through counseling and possible solutions. To begin with, the client has a problem of career choice. She seems not to be satisfied of her current job of bier a consultant at a firm that write programs for professionals. In addition to the same, she has psychological problems. Lastly, she possesses a problem that of balancing her career ambitions with that of her children and her husband. It is vital to note that the client possesses psychological and mental problems. The treatment of the same is essential because it affects the career progress of Alaina. In this sense, the c lient is medically proven to be suffering from a mild form of depression. The medical name of this depression is dysthymia. The suicide and eventual death of a cousin might have triggered this depression. As regards this depression, she has been attending counseling sessions for eight months. It is vital to note that she has had counseling sessions over anger management problems. This also relates to previous anger problems at her school sessions. This is the factor that contributed to her career diversion from teaching to consultancy. This was vital for stabilizing her marriage and finding a sound career line. In this sense, she takes medicine in form of depression tablets. However, she still possesses a problem of suppression to feelings of good things in her life. This means she has no feelings of impression for good things in her life. In addition, she possesses anxiety and sleeping problems. Alaina possesses notable strengths and shortcomings. In her career ambitions and passio ns, Alaina seems to have a robust orientation towards writing. This is notable from her course in college. She had a college course of B.A in English and a minor in journalism. It is crucial to note that this was her subject in her schooling days. Her present job entails offering consultancy services for a firm that write career programs. It is notable that her career ambitions entail being an editorial assistant for a publishing firm or technical writing. In addition, she had an earlier fantasy of being a sports’ writer. Besides, Alaina seems to be aware of her interests. In this sense, she has strong decisions of not preferring educational careers. However, Alaina has anger management problems. This attributes to her uncontrolled anger during her teaching days. In this sense, Alaina needs to work on social relation skills. This regards appropriate emotional response to situations. In our working relationship with the client, I will ensure notable ideas for a solid working r elationship. To begin with, my strategy would involve eliminating the professional outlook to the client. This would be appropriate for establishing an intimate relationship with

Assignment Essay Example | Topics and Well Written Essays - 500 words - 76

Assignment - Essay Example their consumption becomes stable with rising demand, these products are expected to be available in normal convenience stores like a bag of chips or chocolates (Entrepreneur Media.inc, â€Å"How Food Makers Are Convincing America to Eat Bugs†). In the discussion henceforth, emphasis will be delivered on specifying the target group for the chosen products along with a succinct rationale to the same. Cricket flour, which is composed of high protein and high nutritional benefits, is considered as a key to a sustainable future. As the product is manufactured from cricket bugs, it is necessary to educate people about the health benefits they will obtain from its consumption, which is also necessary to avoid any negative response from the customers. As the product is quite likely to be beneficial for young individuals suffering from malnutrition and for body builders as well, being in need for high protein consumption, its marketing approach will be targeting this particular group of consumers. However, as the product is manufactured from cricket bugs, the targeted consumer group will be limited within the non-vegetarian food consumers. To be mentioned in this context, young generation consumers are currently observed as highly quality conscious, having lesser significance for price related concerns. This particular group of consumers also deciphers high enthusiastic behavior toward s a new product, which can be highly beneficial for the cricket flour and energy bars intended to be offered. As these people believe in fast lifestyle choices, they are always in need for food products with high nutritional value to keep their body fit and strong. So the products may target this particular section of people, based on its high nutritional value, which will be of considerable advantage to the marketer. Moreover, body builders and people having special interest in sports may also be willing to consume these products, as it is deemed as beneficial for their health. As both

Entrepreneurship.Excellent Leadership Qualities and Strong urge for Assignment

Entrepreneurship.Excellent Leadership Qualities and Strong urge for ethics and integrity - Assignment Example Clearly, this is a misconstrued notion that cannot be accepted in modern business management. Indeed, the modern day entrepreneur is expected to exhibit certain key characteristics, skills, and have certain background to the day to day management of his business, without which the business cannot be expected to grow. In this paper, some of the skills, characteristics and backgrounds that make successful entrepreneurs are discussed with real examples of how these features about some entrepreneurs have ensured success for them. There is specific emphasis and focus on emerging markets, but without any single emerging market in mind. The key characteristics that some entrepreneurs have exhibited over the years in various emerging markets, the aid of which has made them highly successful shall be discussed. Excellent Leadership Qualities The leadership of the company primarily refers to the management of visionary direction for the company. This responsibility is played by several people within the organization, and in some cases, some leaders becoming followers to other leaders (Coy et al, 2007). But as far as the entrepreneur is concerned, he is often seen as the last reporting leader within the organization. This is to say that the entrepreneur acts as the head of the organizational structure and is therefore the ultimate leader. In effect, the kind of leadership qualities that the entrepreneur displays will go a very long way to determine the visional direction that the entire organization will have. With the question as to what excellent leadership qualities are, Capelleras et al (2010) explained that it involves the ability of the leader to be identified with as many leadership styles as possible and learn to rightly apply each of them as and when they become necessary for an organizational scenario. In effect, a leader’s leadership must always be seen as appropriate in practice; and this is what constitutes an excellent leadership quality. Strong urge for ethics and integrity Show me a leader without ethics and integrity and I will show you a dying company and this is according to Benzing, Chu & Callanan (2005). Ethics and integrity constitute a personal and behavioral characteristic that is needed by the entrepreneur to make him trustworthy and credible in the area of business that he is involved in. with the advent of corporate image and corporate branding, stakeholders including customers, shareholders and suppliers are looking for corporate managers and leaders who represent not just a money making machine but an overall of credibility and trust when left with the finances and welfare of a larger group of people (Benzing, Chu & Callanan, 2005). Commonly, the way of thinking is that when entrepreneurs cannot on by themselves proof to be credible, they can easily use manipulative and unacceptable means of making their businesses grow. In an emerging market where most of the local customers are considered as vulnerable to market marketing mix strategies as lower prices, such entrepreneurs who are suspecting in their ethics and integrity can be tagged with dubious means of making their prices cheaper such as the invasion of taxes or use of unwholesome raw materials in manufacturing. Empowered Self Motivation Motivation comes in several forms, commonly intrinsic and extrinsic motivation. In most cases, intrinsic motivation has been identified to be that type of motivation that keeps a person driving on when all other factors suggest that

How do you understand the arts to be theraputic Essay

How do you understand the arts to be theraputic - Essay Example way of communication than to have to go to a therapy where they have to speak of what’s held inside of them, especially with mentally challenged and special individuals who cannot communicate by speaking which makes it harder for a psychiatrist to understand their emotional and mental state. It is now being used in the work of sociologists, psychiatrists, social workers and marriage and family therapists and even physicians with the brief forms of therapy and increasing pressure of completing the therapy sessions in time they found that art therapy has helped them communicate and put an end to issues quicker than any other technique. (Cathy Malchiodi, pg 1,2) Surprisingly the interweaving of art and healing is not really a new phenomenon, at has been existed in this society ever since the human society itself, re-occurring through history across place and time. It is in fact growing importance day by day, proving to be an exceptional medically proven treatment. (Malchiodi 2006) It was not up till the classical period (1940s- 1970s) that the term "Art Therapy" began to be used in written forms for describing their work with their patients/clients. (Cathy Malchiodi pg 9) Who knew it would have come this far to be known as one of the most used and effective processes used by psychiatrists and other counselors for special treatment. Art Therapy can be beneficial for everyone as it does not matter what age, race or gender one is of and so it reaches out to a vast audience of people who need some sort of help psychologically. This form of therapy can be used as a healing strategy in many different psychological disorders such as emotional trauma, depression, and anxiety by expressing themselves fully, creatively without having to worry about them being good at art. Patients with brain damage due to injuries, illnesses and stroke are making a clear relationship between art making and brain function. Sandy Allen, who happened to have a large tumor in her cerebral

Entrepreneurship.Excellent Leadership Qualities and Strong urge for Assignment

Entrepreneurship.Excellent Leadership Qualities and Strong urge for ethics and integrity - Assignment Example Clearly, this is a misconstrued notion that cannot be accepted in modern business management. Indeed, the modern day entrepreneur is expected to exhibit certain key characteristics, skills, and have certain background to the day to day management of his business, without which the business cannot be expected to grow. In this paper, some of the skills, characteristics and backgrounds that make successful entrepreneurs are discussed with real examples of how these features about some entrepreneurs have ensured success for them. There is specific emphasis and focus on emerging markets, but without any single emerging market in mind. The key characteristics that some entrepreneurs have exhibited over the years in various emerging markets, the aid of which has made them highly successful shall be discussed. Excellent Leadership Qualities The leadership of the company primarily refers to the management of visionary direction for the company. This responsibility is played by several people within the organization, and in some cases, some leaders becoming followers to other leaders (Coy et al, 2007). But as far as the entrepreneur is concerned, he is often seen as the last reporting leader within the organization. This is to say that the entrepreneur acts as the head of the organizational structure and is therefore the ultimate leader. In effect, the kind of leadership qualities that the entrepreneur displays will go a very long way to determine the visional direction that the entire organization will have. With the question as to what excellent leadership qualities are, Capelleras et al (2010) explained that it involves the ability of the leader to be identified with as many leadership styles as possible and learn to rightly apply each of them as and when they become necessary for an organizational scenario. In effect, a leader’s leadership must always be seen as appropriate in practice; and this is what constitutes an excellent leadership quality. Strong urge for ethics and integrity Show me a leader without ethics and integrity and I will show you a dying company and this is according to Benzing, Chu & Callanan (2005). Ethics and integrity constitute a personal and behavioral characteristic that is needed by the entrepreneur to make him trustworthy and credible in the area of business that he is involved in. with the advent of corporate image and corporate branding, stakeholders including customers, shareholders and suppliers are looking for corporate managers and leaders who represent not just a money making machine but an overall of credibility and trust when left with the finances and welfare of a larger group of people (Benzing, Chu & Callanan, 2005). Commonly, the way of thinking is that when entrepreneurs cannot on by themselves proof to be credible, they can easily use manipulative and unacceptable means of making their businesses grow. In an emerging market where most of the local customers are considered as vulnerable to market marketing mix strategies as lower prices, such entrepreneurs who are suspecting in their ethics and integrity can be tagged with dubious means of making their prices cheaper such as the invasion of taxes or use of unwholesome raw materials in manufacturing. Empowered Self Motivation Motivation comes in several forms, commonly intrinsic and extrinsic motivation. In most cases, intrinsic motivation has been identified to be that type of motivation that keeps a person driving on when all other factors suggest that

The Prince by Machiavelli Essay Example for Free

The Prince by Machiavelli Essay In Chapter 25 of his masterwork The Prince, Machiavelli attempted to describe and define fate and how it could be controlled in both political and personal life. In defining ones life and actions against fate, Machiavelli saw the importance of forming a balance of the human tendencies of caution and impulsiveness. Machiavelli favored impulsiveness in regard to human actions directed towards fate, but he saw legitimate value in both mindsets. What he saw as most important was a willingness to change in the face of fate, as the ability to adapt is most important when facing change.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Machiavelli used the image of a torrential flood to describe fate. To Machiavelli, fate was like the flood in that â€Å"everything flies before it, all yield to its violence, without being able in any way to withstand it; and yet, though its nature be such, it does not follow therefore that men, when the weather becomes fair, shall not make provision, both with defences and barriers, in such a manner that, rising again, the waters may pass away by canal, and their force be neither so unrestrained nor so dangerous.† (Machiavelli, 1505, Chapter 25) This implies that what Machiavelli truly meant by fate is uncontrollable change, outcomes in the world that directly affect those that are not necessarily involved in those changes, social or technological, political or personal. These changes happen without the consent of all and therefore many   merely must roll with the punches, although men can make plans that will help them roll with those punches when the time for change arrives. To be sure, change is coming, although one cannot be sure exactly how or when it will come but can make provisions that will be helpful when it does.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   After comparing fate to a torrential flood, Machiavelli went on to compare fate to a lady, in order to describe how   he would recommend mastering it. Machiavelli used a fairly non-modern view in the treatment of women to describe fate, saying that the best way to control fate, and women, was to beat and ill-use them. Furthermore, he saw that those bold and adventurous in spirit were more likely to control both women and fate and that young men are best equipped to handle both. While Machiavellis comparison between fate and women is easily seen as a bit sexist now, the comparison was certainly far more palatable when he made it. Further, the assertion that the young and bold are best equipped to deal with change is probably correct; the young are less set in their ways and have more energy with which to attack new challenges. While the simile is certainly not politically correct, it certainly introduces a worthwhile observation.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   It is an intriguing program to attempt to synthesize Machiavellis project in The Prince with the modern project of employing science and technology to overcome nature, both of the world and human. Machiavellis aim was certainly to investigate ways to overcome human nature. If a man was to act in accordance with human nature, Machiavelli saw, he would surely be bowled over by the tide of fate. Machiavelli went so far as to make a case study, a very modern concept, of Pope Julius II to show that decisive, aggressive action was the best methodology to combat change; further, he surely was not afraid to invoke images of technology stemming the natural tide. It seems most likely, however, that while Machiavelli was attempting to make observations that were ahead of his time, he was not absolutely modern in his mindset. Machiavellis chief goal of The Prince was to describe how a political leader could most effectively use political power. This serves as an incomplete view of modern politics, which in addition to aiming at efficiency in power usage also means to maximize the social benefit of that usage. Machiavelli centered on the practicality of politics without looking at its utility. He surely spoke of how to employ technology and science to serve human desire, but he did not define desire in a more complex, democratic, modern state, which should not be surprising, because the mindset had yet to arise. References Machiavelli. (1505). The Prince. Retrieved from: http://www.constitution.org/mac/prince00.htm

Conflict Resolution Strategies and Styles

Conflict Resolution Strategies and Styles Abstract The world is turning into globalization concept to increase the productivity and efficiency to achieve the organizational goals. To achieve standard effectiveness of the organization the number of techniques and strategic management tools used in different ways either combining/integrating one and other or straight way use one technique. People techniques and organizational techniques are playing very vital role in developing the organization and growth of it. With the help of integration of these techniques we can achieve the effective results after applying in the organization. Organization and people are strongly inter-related to each other. So the effective use of these people technique directly effect on the organization and vise versa. The conflict management is the people technique but effective and timely use of this technique can give the advantage to the organization on the competitors. The consideration of the competitive advantages is very important while making the organ izational strategy. The skilled people are the competitive advantages over the same functional competitors. This skilled people force give you a huge competitive advantage and that should be avoid resolving the conflicts between them timely. Conflict management is a key success factor for any organization and we are considering this technique while the formulation of the organizational strategy like CPM (competitive profile matrix) is the organizational technique to formulation strategy. Integration of these techniques (Conflict management CPM) will directly affect the business in positive direction. Keywords: Competitive profile matrix (CPM), Internal factor evluation (IFE), External factor eveluation (EFE), Kye success factors, Conflict resolution Style, competitive advantages, latent stage,congnition and personlization, Key success factor (KSF) Introduction â€Å"Competition people† these two words are always interrelated in all the areas of the globe. New technologies, tools methods provide extraordinary results in every sector of business world. But apart from those â€Å"people† in the organization will also play a vital strategic role to success of any business and stand as a leading competitor in market. Applying people techniques into Organizational techniques and vice versa, and integrating of these techniques for an organization will help to its growth in the market. Key success factors (KSF) are usually understood to be the set of factors that can be considered key to the continued success of an organization or a business. These factors may be ‘skills, tasks, or behaviour, they can operate at a number of levels and be used for a diversity purpose .There are many key success factors will impact to a successful organizations. And these key success factors will helpful to compare the rival competitors in the market. Competitive profile matrix (CPM) is a strategic management tool to communicate with the attributes and shows the competitors in the market. And it is setting up the stages to describe your competitive advantage and the basis for your company strategy. In every organization there will be some conflicts among peoples, groups and departments, by resolving these issues among them in timely lead the organization in positive direction among the competitors in the market. It means when we compare the competitive organizations in the market, we will consider some of the key success factors, and with these key success factors (KSF) we can build the competitive profile matrix, for each success factor , indicators are measures of performance should be established and tailored , the identified information will need to be developed or modified to ensure that the success key information is collected, analyzed, and distributed, in other words , it helps to ensure that the organizations inf ormation support the key activities and thus the wider objectives. In CPM there are five main attributes, like key success factor, rating, weight, weighted score and total weight score; here we will give the ratings for each factor its ranges from 1 to 4. 1 is low, and ‘4 is high, means when we compare the organizations we will put the common key success factors (like, advertising, etc) and assign the rate for each factor. And assign the weight of the each key success factor, it ranges from 0 to 1 (low to high), weighted score value is the result achieved after multiplying each factor rating with weight. While integrating these techniques (people organization) we can put conflict management as one of the key success factor, in CPM. Means how effectively and timely the conflicts are managed in organizations among the people, groups depts. Always healthy environment in any organization helpful to its growth, by taking advantage of this making as â€Å"conflict management† is a strategic people technique, and integrating with the organization technique CPM, when the total weighted score in CPM is ranges between 1(low) to 4(high). If the total weight score fall below 2.5 consider as week, higher than 2.5 is consider as strong in the position. The firm with higher total weight score considered as winner in competitive market. Catching the competitors weak point and making it as strong point for your organization and managing any conflict issues timely in organization, makes you as the leader of the market. People Technique (Conflict management) What is conflict? Conflict is the process in which one party perceives that its interests are being opposed or negatively affected by another party. Conflict is a process in which people disagree over significant issues, thereby creating friction between parties. Conflict can exist when people have opposing interests, perceptions, and feelings; when those involved recognize the existence of differing points of view; when the disagreement is ongoing; and when opponents try to prevent each other from accomplishing their goals. Although conflict can be destructive, it can also be beneficial when used as a source of renewal and creativity. A competition and rivalry between individuals or groups over an outcome that both seek, is not the same as conflict. In competition, there must be a winner and a loser; with conflict, people can cooperate so that no one wins or loses. When people think of the word conflict, they often think of wars or violence. However, conflict exists at all levels of society in all sorts of situations. It is easy to forget that we experience conflict every day of our lives. Conflict happens when two or more people or groups have, or think they have, incompatible goals. However, in most cases we resolve the conflict. From a personal level to international level, good communication is usually used to overcome differences and to reach an agreement before violence breaks out. At a personal level, we often do not realize we are overcoming our differences. It is important to remember that conflict can be creative. Conflict is sometimes necessary to bring justice where injustice exists. It can provide an opportunity for new social and political systems to be established and can help to shape the future. However, when conflict becomes violent it will usually do more harm than good. After violent conflict, it is often difficult to see the opportunities for a better future due to the widespread destruction of infrastructure and livelihoods, the breakdown of trust and the suffering caused through bereavement, trauma, grief and anger. It is also likely that such social change could have occurred before the conflict became violent. Transitions in Conflict Thought: Conflicts are an everyday phenomenon in each organization. Conflicts are impossible to avoid, but it is possible to manage them in a way that we recognize the conflict symptoms in time. It is necessary to continuously track the organizational signals, which point to their existence. In case we do not react in due time, this can lead to a situation where the conflict itself manages the organization. Problems mostly occur in those organizations where the business results directly depend on collaboration, team work and creativity, and where having only the results in mind, we tend to forget to take care of people and mutual relationships. Disagreement which occurs when goals, interests or values of various individuals or groups are incompatible and those people block each others efforts for accomplishing goals is called organizational conflict. Reduction of work performance efficiency, reduced communication among employees, motivation fall and ultimate employees dissatisfaction are only some of the numerous negative consequences of conflict. But the conflict itself does not have to be negative; the majority of conflicts can in fact be an excellent ground for accomplishment of better business results, and an impulse for changes and growth of the Organization itself [5x]. Duly recognition and adequate conflict management can lead to series of positive effects like stimulation of creativity and innovation within the company, stimulation of changes towards work quality improvement, reduction of incurred tensions etc. Moreover, in case conflicts lead to constructive changes they should be encouraged in order to make a good relation among employees based on mutual respect. Sometimes conflicts should be regarded as a resource which enables us constant new learning, new knowledge and a potential growth and development of organization. The employees directly involved in the conflict often do not have the opportunity to cope with the whole situation or the impact of all elements in the given situation, mostly because of restricted ability for decision-making. [6x] Throughout the years there were times when conflict was perceived in a different way, so we distinguish: Traditional view of conflict Human relations view Interactionist view. Traditional view of conflict in ‘30s and ‘40s of the last century it is believed that the conflict is something bad, that it is destructive for the organization, and that it should be avoided. It is considered that the sources of conflict are mostly the results of bad communication and lack of trust. According to this standpoint one should avoid conflict, as well as people who make the conflict, so that the work performance be satisfactory. Human relations view is that the conflict is something natural which occurs within every organization. This view is characteristic for the period from the ‘40s to the ‘70s of the last century. It is considered that conflicts should be accepted, and that conflicts eventually can lead to better work performance. Interacionist view is still represented today, and is based on the approach according to which conflicts should be encouraged, because they tend to have a positive effect on creativity and innovation by the employees. [6x] Types and levels of Conflict There are four types of conflict. Inter-group conflict occurs when groups within and outside the organization disagree on various issues. Interpersonal conflict Interpersonal conflict emphasizes the interaction of human factors in an organization. Here we are concerned with these factors as they appear in a dyadic relationship. It is further classified into two classes of factors as conflict sources. These are: Personal.Individuals are not identical, constant or consistent. When two individuals are brought together and kept together, each with their own qualities, needs and skills, a conflict may ensue if their attributes are not meshed together in a coordinated way. Interaction between individuals with different attitudes, values and needs can produce conflict behavior and affect organizational performance.[8x] Functional. Individuals in organizations have roles which are expected sets of behavior associated with their position. In theory, individuals are not expected to engage in any discretionary behavior. Such specification would be consistent with organizational preferences for consistency and predictability. In practice, however, role specifications tend to be ambiguous and incomplete, and in their interaction with others, some individuals often feel dissatisfied with their role or position, or they may feel that their aspirations for higher positions are being frustrated. Interpersonal conflict can be accounted for, to a great extent, in terms of the incumbents roles and their expectations in particular situations. Intra group conflict occurs within a work group over goals and work procedures. Intrapersonal conflict Intrapersonal conflict is internal to the individual and is perhaps the most difficult form of conflict to analyze and manage. Intrapersonal conflict is basically a conflict between two incompatible tendencies. It arises when a stimulus evokes two different and incompatible tendencies and the individual is required to discriminate between these tendencies. [7x] Horizontal conflict takes place between departments or groups at the same level of the organization. In contrast, vertical conflict occurs between groups at different levels of the organization. Types of Conflict Task conflict: Conflicts over content and goals of the work Relationship conflict: Conflict based on interpersonal relationships Process conflict: Conflict over how work gets done Organizational conflict: Organizational conflict occurs when a stakeholder group pursues its interests at the expense of other stakeholders. Given the different goals of stakeholders, organizational conflict is predictable. Conflict is associated with negative images, such as unions getting angry and violent, but some conflict can improve effectiveness. When conflict passes a certain point, it hurts an organization. If we do not react duly, this can lead to the situation that the conflict itself manages the organization. One of the more important determinants of productivity, efficiency and performance, and finally job contentment is also the conflict as an independent variable of organizational behavior. By systematic research of organizational behavior we want to make a positive influence on dependent variables, but first we have to understand and get a good insight into individual elements of organizational behavior. There is strong relationship between the level of conflict and the impact on the Organizational performance. [8x] Personal conflict: Conflict sometimes has a destructive effect on theindividualsandgroupsinvolved. At other times, however, conflict can increase the capacity of those affected to deal with problems, and therefore it can be used as a motivating force toward innovation and change. Conflict is encountered in two general forms. Personal conflict refers to an individuals inner workings and personality problems. It was also pointed out that there is a basic incompatibility between the authority and structure of formal organizations and the human personality.Human behaviorcannot be separated from the culture that surrounds it.[5x] Many difficulties in this area are beyond the scope ofmanagementand more in the province of aprofessional counselor, but there are some aspects of personal conflict that managers should understand and some they can possibly help remedy. Social conflict refers to interpersonal, intergroup, and intergroup differences. Role Conflict: Another facet of personal conflict has to do with the multiple roles people play in organizations.Behavioralscientists sometimes describe anorganizationas a system of position roles. Each member of the organization belongs to a role set, which is an association of individuals who share interdependent tasks and thus perform formally defined roles, which are further influenced both by the expectations of others in the role set and by ones own personality and expectations. For example, in a common form of classroom organization, students are expected to learn from the instructor by listening to him, following his directions for study, taking exams, and maintaining appropriate standards of conduct. Theinstructoris expected to bring students high-quality learning materials, give lectures, write and conduct tests, and set a scholarly example. Another in this role set would be the dean of the school, who sets standards, hires and supervises faculty, maintains a servicestaff, readers and gra ders, and so on. The system of roles to which an individual belongs extends outside the organization as well, and influences his functioning within it. As an example, a mans roles as husband, father, son, and church member are all intertwined with each other and with his set of organizational roles.[4x] Conflict within groups: Conflicts between people in work groups, committees, task forces, and other organizational forms of face-to-face groups are inevitable. As we have mentioned, these conflicts may be destructive as well as constructive. In western culture, winning is more acceptable than losing, and competition is more prevalent than cooperation, all of which tends to intensify intragroup conflict. Group meetings are often conducted in a win-lose climate — that is, individual or subgroup interaction is conducted for the purpose of determining a winner and a loser rather than for achieving mutual problem solving[5x].Conflict arises in groups because of the scarcity of freedom, position, and resources. People who value independence tend to resist the need for interdependence and, to some extent, conformity within a group. People who seek power therefore struggle with others for position or status within the group. Rewards and recognition are often perceived as insufficient and improperly distributed, and members are inclined to compete with each other for these prizes. Interdepartmental Conflict The third major cause of organizational conflict is structural. Organizations are designed around product lines, regions or technical specialties. These activities are assigned to departments that often have mutually exclusive structured interests and goals and that interact within a framework of scarce resources and task dependence. When resources are relatively fixed and when one departments gain is at the expense of another, conflict should be expected. If two sub-units in an organizational system have differentiated goals and are functionally interdependent, conditions exist for conflict. Interdependence produces the need for collaboration, but it also presents occasions for conflict. [9x] Other contextual factors which affect the interaction structure between departments and create the conditions for interdepartmental conflict include: different attitudes between line and staff units, organizational size (directly related to level of conflict) and standardization (inversely related to conflict), physical or communicational barriers between departments, unequal access to authority, rewards or organizational resources and ambiguity or uncertainty in assigning tasks or rewards to different departments. These are the sources of conflict situations in organizations. How a conflict situation will change over time, how its interrelated components will alter and the environment, in which it occurs will respond, is dependent upon the administrators efforts to manage or influence it. This in turn is related to ones understanding of the source of a specific conflict situation. Process of Conflict: Process of conflict consists of 4 stages or levels of conflict according to which the development of relationships between the sides involved in conflict is shown. The first stage is also called as latent stage in which certain characteristics, like communication, structure and personal variables, can lead to conflict. It is important to point out that it is not necessary to have the simultaneous occurrence of all three factors, but occurrence of just one. Communication in organization is very important, in case there is lack of communication in the organization this can lead to conflict. But also to much communication, as well as obstacles in communication, possible lack of understanding or noise in the communication channel can produce conflict as a consequence. The second stage, cognition and personalization stage represents the outcome of the impact of first phase factors. We distinguish two sub stages in this stage: Perception of the participants in conflict which does not mean that conflict, has occurred. Not until there has come to articulation of feelings and expression of awareness of conflict, can we say that the conflict itself occurs. In the third stage there comes to conflict manifestation. There is hostile behavior among participants in conflict and we say there comes to the so called open disagreement. The last stage in this process of conflict is the conflict outcome which shows us the further relationship development of the participants in conflict and consequences of conflict. Consequences of conflict can be manifest through increased working efficacy of the organization in whole or quite the contrary, the decrease of working efficacy [8x]. Conflict management styles: The success of the organization depends on the ability of conflict recognition and the very way of conflict management. Conflict management implies integration of all factors which can contribute to conflict resolution or its prevention. Those factors are improvement of communication and practicing discipline in the organization, as well as having in mind the life phases of parties included. Different authors know about various approaches to conflict management. Besides five typical approaches and strategies on conflict management which we will show and explain, it is important to point out that an important role bears also the organization itself as the third party in conflict. The organization appears as the mediator between adversaries or as arbitrator. This third party in organization are managers which by using their experience have to constantly develop new strategies and tactic for conflict resolution by using their experience. Moreover, it is generally acknowledged that confl ict represents the most severe test of managers interpersonal skills. CONFLICT MANAGEMENT STYLES DIAGRAM: Thomas and Kilmann identified a conflict-handling grid comprised of five conflict management styles based on two dimensions: assertiveness and cooperativeness. Assertiveness is the motivation of an individual to achieve his/her own goals, objectives, and outcomes, while cooperativeness assesses the willingness to allow or help the other party to achieve its goals or outcomes. Any of the five conflict resolution styles might be appropriate based on the circumstances of the situation and the personalities of the individuals involved. Avoiding Conflict Resolution Style The avoiding style is low on both assertiveness and cooperativeness. In other words, the manager is not very cooperative in helping the other individuals to achieve their goals, but neither is he/she aggressively pursuing his/her own preferred outcomes in the situation. The original problem, conflict, or situation is never directly addressed or resolved. However, avoiding behavior might be appropriate when the issue is perceived by the manager to be trivial. It might also be an appropriate approach to use when there is no chance of winning or when disruption would be very costly. When is Avoiding Appropriate? Avoiding conflict can be an appropriate choice, depending on the circumstances. According to Thomas-Kilmann avoiding is an appropriate form of dealing with conflict when used in the following situations: When an issue is trivial and other issues are more important or pressing use time and effort where it will be most productive. When there is no opportunity to constructively address the concern attempts to deal with the problem will likely result in futility and may make matters worse. It may not be the right time or place. When the potential cost of confronting the conflict outweighs the benefits in addressing it this requires assessment and judgment. To buy time and give angry people an opportunity to cool down so that tensions can be reduced it is important for parties to take a break to regain perspective and composure when the situation becomes heated. To refrain from making a rushed decision and allow time to obtain more information or support well planned and prepared decisions are usually the best decisions. When it is more appropriate for others to resolve the conflict resist getting in the middle of conflicts that are better dealt with by other people. Working with Conflict Avoidant Individuals It is clear that the use of avoiding dealing with conflicts and differences can have both positive and negative implications. When working with individuals as a supervisor, mediator, or friend it is helpful to get them to consider the pros and cons of avoiding conflict. Developing a strategy or plan requires that conflict avoidant individuals at least consider their options. [10x] Choosing a conflict mode other than avoiding may be understood by conflict avoidant people as a better option but acting on this choice can still be very difficult. Ensure that emotions are under control so that the facts, beliefs, and goals regarding the disagreement can be clarified and understood as objectively as possible. Excessive fear can be emotionally paralyzing. Role playing or writing out a plan of action can give a conflict avoidant person the confidence they need to deal with the conflict. Assertiveness coaching may also help. These preparatory approaches allow individuals to express their thoughts and feelings in a manner that is typically less stressful than talking about them spontaneously. It is possible that one party will be in a relative power position over another, such as a boss vs. employee. In these situations involve a person in a mediator role who can be neutral yet balance the power relationship so that the weaker party will develop the courage to address their concerns. When this is not possible the weaker party may need to include another person as a third party advocate or observer to help give them some support. [10x] Competing Conflict Resolution Style The competing style of resolving conflict is also known as the win-lose approach. A manager using this style, characterized by high assertiveness and low cooperativeness, seeks to reach his/her own preferred outcomes at the expense of other individuals. This approach may be appropriate when quick, decisive action is needed, such as during emergencies. It can also be used to confront unpopular actions, such as urgent cost cutting. The strategy of â€Å"competing† as a means of gaining power and control stems from early childhood and is reinforced throughout our years in school and college. Many children learn that they can obtain material objects as well as social control over people by using assertive, demanding or aggressive behavior. As they mature they use their talent to compete to â€Å"be the best† student, athlete, musician, etc. or to socially compete to be popular and have status among peers. Some youth learn to deal with disagreements by persuading others to accept their position. Others use power negatively in the form of arguments, threats, intimidation, or physical fighting. Youth who are effective at competing are deemed to be successful. Children and youth who do not stand up for themselves in conflicts may be seen as weak. Many video games and other media directed at youth promote the thrill of engaging in conflict with the goal of defeating the â€Å"enemy†, often using a ny means possible. All of these dynamics promote the use of competitiveness. While parents and teachers also instruct children to be kind, considerate, and cooperative there remains a strong inclination toward using competitiveness as a means of solving problems and achieving success. The value of competing to resolve differences and achieve goals continues into adulthood and employment. Individuals compete for status and position within organizations, sometimes being rewarded for their ability to achieve business goals by being better than their internal colleagues or external business competitors. Successful leaders demonstrate an ability to strategically use their competitive energy and skills for personal and professional benefit. While competing can be productive it can also cause problems when used excessively or inappropriately. It can lead to misuse of power, fraudulent acts, and unethical or illegal activity as we have seen in the situation at Enron and in other business and political events in the news. Truly successful people develop the judgment and skills to use competitiveness effectively and appropriately. [10x] Competing is an appropriate form of dealing with conflict when used in the following situations: When a quick decision and action is needed. When the outcome is critical and cannot be compromised. When you know you are right and are doing the correct thing. In emergencies or when safety is a concern. When being right matters more than preserving the relationship with the other party. When important but unpopular actions are needed such as cost-cutting, down-sizing, enforcing rules, or administering discipline. When ones position, authority, or rights are being challenged. When implementing strategic change and strong, confident leadership needs to be demonstrated. When used inappropriately competing in conflict situations can lead to negative consequences such as: When it strains relationships leading to resentment and retaliation. When it causes intimidation which inhibits important communication, discussion of alternative ideas and attempts at problem solving. When collaboration or compromise would lead to a better exchange of information and better decisions or outcomes. When personal drive for power and control overrides the best interests of the organization. When it results in diminished commitment and support from staff. When it is indicative of a highly competitive personality trait resulting in overuse, causing a person to not recognize when it is important to quit or take another stance. When â€Å"winning at all costs† results in harm to people or the organization. When the personal relationship is more important than the issue at stake. In attempting to address a conflict with another person who differs with you and takes a competitive position it may be helpful to do the following: Allow the person to first thoroughly explain their position, asking clarifying questions. Summarize and repeat what you have heard to assure mutual understanding. Acknowledge the parts that you agree with. Ask the party to carefully listen to your position, clarifying points of agreement and disagreement, using logic and data to support your perspective. Consider having both positions put into writing for review and consideration. Minimize discussion or expression of feelings or subjective elements unless the other party seems open to this perspective. Point out the mutual benefits of a decision that involve collaboration or compromise if this is an option. Help the other party to understand how your position will benefit him/her and how they can gain from agreement with your proposal. I Conflict Resolution Strategies and Styles Conflict Resolution Strategies and Styles Abstract The world is turning into globalization concept to increase the productivity and efficiency to achieve the organizational goals. To achieve standard effectiveness of the organization the number of techniques and strategic management tools used in different ways either combining/integrating one and other or straight way use one technique. People techniques and organizational techniques are playing very vital role in developing the organization and growth of it. With the help of integration of these techniques we can achieve the effective results after applying in the organization. Organization and people are strongly inter-related to each other. So the effective use of these people technique directly effect on the organization and vise versa. The conflict management is the people technique but effective and timely use of this technique can give the advantage to the organization on the competitors. The consideration of the competitive advantages is very important while making the organ izational strategy. The skilled people are the competitive advantages over the same functional competitors. This skilled people force give you a huge competitive advantage and that should be avoid resolving the conflicts between them timely. Conflict management is a key success factor for any organization and we are considering this technique while the formulation of the organizational strategy like CPM (competitive profile matrix) is the organizational technique to formulation strategy. Integration of these techniques (Conflict management CPM) will directly affect the business in positive direction. Keywords: Competitive profile matrix (CPM), Internal factor evluation (IFE), External factor eveluation (EFE), Kye success factors, Conflict resolution Style, competitive advantages, latent stage,congnition and personlization, Key success factor (KSF) Introduction â€Å"Competition people† these two words are always interrelated in all the areas of the globe. New technologies, tools methods provide extraordinary results in every sector of business world. But apart from those â€Å"people† in the organization will also play a vital strategic role to success of any business and stand as a leading competitor in market. Applying people techniques into Organizational techniques and vice versa, and integrating of these techniques for an organization will help to its growth in the market. Key success factors (KSF) are usually understood to be the set of factors that can be considered key to the continued success of an organization or a business. These factors may be ‘skills, tasks, or behaviour, they can operate at a number of levels and be used for a diversity purpose .There are many key success factors will impact to a successful organizations. And these key success factors will helpful to compare the rival competitors in the market. Competitive profile matrix (CPM) is a strategic management tool to communicate with the attributes and shows the competitors in the market. And it is setting up the stages to describe your competitive advantage and the basis for your company strategy. In every organization there will be some conflicts among peoples, groups and departments, by resolving these issues among them in timely lead the organization in positive direction among the competitors in the market. It means when we compare the competitive organizations in the market, we will consider some of the key success factors, and with these key success factors (KSF) we can build the competitive profile matrix, for each success factor , indicators are measures of performance should be established and tailored , the identified information will need to be developed or modified to ensure that the success key information is collected, analyzed, and distributed, in other words , it helps to ensure that the organizations inf ormation support the key activities and thus the wider objectives. In CPM there are five main attributes, like key success factor, rating, weight, weighted score and total weight score; here we will give the ratings for each factor its ranges from 1 to 4. 1 is low, and ‘4 is high, means when we compare the organizations we will put the common key success factors (like, advertising, etc) and assign the rate for each factor. And assign the weight of the each key success factor, it ranges from 0 to 1 (low to high), weighted score value is the result achieved after multiplying each factor rating with weight. While integrating these techniques (people organization) we can put conflict management as one of the key success factor, in CPM. Means how effectively and timely the conflicts are managed in organizations among the people, groups depts. Always healthy environment in any organization helpful to its growth, by taking advantage of this making as â€Å"conflict management† is a strategic people technique, and integrating with the organization technique CPM, when the total weighted score in CPM is ranges between 1(low) to 4(high). If the total weight score fall below 2.5 consider as week, higher than 2.5 is consider as strong in the position. The firm with higher total weight score considered as winner in competitive market. Catching the competitors weak point and making it as strong point for your organization and managing any conflict issues timely in organization, makes you as the leader of the market. People Technique (Conflict management) What is conflict? Conflict is the process in which one party perceives that its interests are being opposed or negatively affected by another party. Conflict is a process in which people disagree over significant issues, thereby creating friction between parties. Conflict can exist when people have opposing interests, perceptions, and feelings; when those involved recognize the existence of differing points of view; when the disagreement is ongoing; and when opponents try to prevent each other from accomplishing their goals. Although conflict can be destructive, it can also be beneficial when used as a source of renewal and creativity. A competition and rivalry between individuals or groups over an outcome that both seek, is not the same as conflict. In competition, there must be a winner and a loser; with conflict, people can cooperate so that no one wins or loses. When people think of the word conflict, they often think of wars or violence. However, conflict exists at all levels of society in all sorts of situations. It is easy to forget that we experience conflict every day of our lives. Conflict happens when two or more people or groups have, or think they have, incompatible goals. However, in most cases we resolve the conflict. From a personal level to international level, good communication is usually used to overcome differences and to reach an agreement before violence breaks out. At a personal level, we often do not realize we are overcoming our differences. It is important to remember that conflict can be creative. Conflict is sometimes necessary to bring justice where injustice exists. It can provide an opportunity for new social and political systems to be established and can help to shape the future. However, when conflict becomes violent it will usually do more harm than good. After violent conflict, it is often difficult to see the opportunities for a better future due to the widespread destruction of infrastructure and livelihoods, the breakdown of trust and the suffering caused through bereavement, trauma, grief and anger. It is also likely that such social change could have occurred before the conflict became violent. Transitions in Conflict Thought: Conflicts are an everyday phenomenon in each organization. Conflicts are impossible to avoid, but it is possible to manage them in a way that we recognize the conflict symptoms in time. It is necessary to continuously track the organizational signals, which point to their existence. In case we do not react in due time, this can lead to a situation where the conflict itself manages the organization. Problems mostly occur in those organizations where the business results directly depend on collaboration, team work and creativity, and where having only the results in mind, we tend to forget to take care of people and mutual relationships. Disagreement which occurs when goals, interests or values of various individuals or groups are incompatible and those people block each others efforts for accomplishing goals is called organizational conflict. Reduction of work performance efficiency, reduced communication among employees, motivation fall and ultimate employees dissatisfaction are only some of the numerous negative consequences of conflict. But the conflict itself does not have to be negative; the majority of conflicts can in fact be an excellent ground for accomplishment of better business results, and an impulse for changes and growth of the Organization itself [5x]. Duly recognition and adequate conflict management can lead to series of positive effects like stimulation of creativity and innovation within the company, stimulation of changes towards work quality improvement, reduction of incurred tensions etc. Moreover, in case conflicts lead to constructive changes they should be encouraged in order to make a good relation among employees based on mutual respect. Sometimes conflicts should be regarded as a resource which enables us constant new learning, new knowledge and a potential growth and development of organization. The employees directly involved in the conflict often do not have the opportunity to cope with the whole situation or the impact of all elements in the given situation, mostly because of restricted ability for decision-making. [6x] Throughout the years there were times when conflict was perceived in a different way, so we distinguish: Traditional view of conflict Human relations view Interactionist view. Traditional view of conflict in ‘30s and ‘40s of the last century it is believed that the conflict is something bad, that it is destructive for the organization, and that it should be avoided. It is considered that the sources of conflict are mostly the results of bad communication and lack of trust. According to this standpoint one should avoid conflict, as well as people who make the conflict, so that the work performance be satisfactory. Human relations view is that the conflict is something natural which occurs within every organization. This view is characteristic for the period from the ‘40s to the ‘70s of the last century. It is considered that conflicts should be accepted, and that conflicts eventually can lead to better work performance. Interacionist view is still represented today, and is based on the approach according to which conflicts should be encouraged, because they tend to have a positive effect on creativity and innovation by the employees. [6x] Types and levels of Conflict There are four types of conflict. Inter-group conflict occurs when groups within and outside the organization disagree on various issues. Interpersonal conflict Interpersonal conflict emphasizes the interaction of human factors in an organization. Here we are concerned with these factors as they appear in a dyadic relationship. It is further classified into two classes of factors as conflict sources. These are: Personal.Individuals are not identical, constant or consistent. When two individuals are brought together and kept together, each with their own qualities, needs and skills, a conflict may ensue if their attributes are not meshed together in a coordinated way. Interaction between individuals with different attitudes, values and needs can produce conflict behavior and affect organizational performance.[8x] Functional. Individuals in organizations have roles which are expected sets of behavior associated with their position. In theory, individuals are not expected to engage in any discretionary behavior. Such specification would be consistent with organizational preferences for consistency and predictability. In practice, however, role specifications tend to be ambiguous and incomplete, and in their interaction with others, some individuals often feel dissatisfied with their role or position, or they may feel that their aspirations for higher positions are being frustrated. Interpersonal conflict can be accounted for, to a great extent, in terms of the incumbents roles and their expectations in particular situations. Intra group conflict occurs within a work group over goals and work procedures. Intrapersonal conflict Intrapersonal conflict is internal to the individual and is perhaps the most difficult form of conflict to analyze and manage. Intrapersonal conflict is basically a conflict between two incompatible tendencies. It arises when a stimulus evokes two different and incompatible tendencies and the individual is required to discriminate between these tendencies. [7x] Horizontal conflict takes place between departments or groups at the same level of the organization. In contrast, vertical conflict occurs between groups at different levels of the organization. Types of Conflict Task conflict: Conflicts over content and goals of the work Relationship conflict: Conflict based on interpersonal relationships Process conflict: Conflict over how work gets done Organizational conflict: Organizational conflict occurs when a stakeholder group pursues its interests at the expense of other stakeholders. Given the different goals of stakeholders, organizational conflict is predictable. Conflict is associated with negative images, such as unions getting angry and violent, but some conflict can improve effectiveness. When conflict passes a certain point, it hurts an organization. If we do not react duly, this can lead to the situation that the conflict itself manages the organization. One of the more important determinants of productivity, efficiency and performance, and finally job contentment is also the conflict as an independent variable of organizational behavior. By systematic research of organizational behavior we want to make a positive influence on dependent variables, but first we have to understand and get a good insight into individual elements of organizational behavior. There is strong relationship between the level of conflict and the impact on the Organizational performance. [8x] Personal conflict: Conflict sometimes has a destructive effect on theindividualsandgroupsinvolved. At other times, however, conflict can increase the capacity of those affected to deal with problems, and therefore it can be used as a motivating force toward innovation and change. Conflict is encountered in two general forms. Personal conflict refers to an individuals inner workings and personality problems. It was also pointed out that there is a basic incompatibility between the authority and structure of formal organizations and the human personality.Human behaviorcannot be separated from the culture that surrounds it.[5x] Many difficulties in this area are beyond the scope ofmanagementand more in the province of aprofessional counselor, but there are some aspects of personal conflict that managers should understand and some they can possibly help remedy. Social conflict refers to interpersonal, intergroup, and intergroup differences. Role Conflict: Another facet of personal conflict has to do with the multiple roles people play in organizations.Behavioralscientists sometimes describe anorganizationas a system of position roles. Each member of the organization belongs to a role set, which is an association of individuals who share interdependent tasks and thus perform formally defined roles, which are further influenced both by the expectations of others in the role set and by ones own personality and expectations. For example, in a common form of classroom organization, students are expected to learn from the instructor by listening to him, following his directions for study, taking exams, and maintaining appropriate standards of conduct. Theinstructoris expected to bring students high-quality learning materials, give lectures, write and conduct tests, and set a scholarly example. Another in this role set would be the dean of the school, who sets standards, hires and supervises faculty, maintains a servicestaff, readers and gra ders, and so on. The system of roles to which an individual belongs extends outside the organization as well, and influences his functioning within it. As an example, a mans roles as husband, father, son, and church member are all intertwined with each other and with his set of organizational roles.[4x] Conflict within groups: Conflicts between people in work groups, committees, task forces, and other organizational forms of face-to-face groups are inevitable. As we have mentioned, these conflicts may be destructive as well as constructive. In western culture, winning is more acceptable than losing, and competition is more prevalent than cooperation, all of which tends to intensify intragroup conflict. Group meetings are often conducted in a win-lose climate — that is, individual or subgroup interaction is conducted for the purpose of determining a winner and a loser rather than for achieving mutual problem solving[5x].Conflict arises in groups because of the scarcity of freedom, position, and resources. People who value independence tend to resist the need for interdependence and, to some extent, conformity within a group. People who seek power therefore struggle with others for position or status within the group. Rewards and recognition are often perceived as insufficient and improperly distributed, and members are inclined to compete with each other for these prizes. Interdepartmental Conflict The third major cause of organizational conflict is structural. Organizations are designed around product lines, regions or technical specialties. These activities are assigned to departments that often have mutually exclusive structured interests and goals and that interact within a framework of scarce resources and task dependence. When resources are relatively fixed and when one departments gain is at the expense of another, conflict should be expected. If two sub-units in an organizational system have differentiated goals and are functionally interdependent, conditions exist for conflict. Interdependence produces the need for collaboration, but it also presents occasions for conflict. [9x] Other contextual factors which affect the interaction structure between departments and create the conditions for interdepartmental conflict include: different attitudes between line and staff units, organizational size (directly related to level of conflict) and standardization (inversely related to conflict), physical or communicational barriers between departments, unequal access to authority, rewards or organizational resources and ambiguity or uncertainty in assigning tasks or rewards to different departments. These are the sources of conflict situations in organizations. How a conflict situation will change over time, how its interrelated components will alter and the environment, in which it occurs will respond, is dependent upon the administrators efforts to manage or influence it. This in turn is related to ones understanding of the source of a specific conflict situation. Process of Conflict: Process of conflict consists of 4 stages or levels of conflict according to which the development of relationships between the sides involved in conflict is shown. The first stage is also called as latent stage in which certain characteristics, like communication, structure and personal variables, can lead to conflict. It is important to point out that it is not necessary to have the simultaneous occurrence of all three factors, but occurrence of just one. Communication in organization is very important, in case there is lack of communication in the organization this can lead to conflict. But also to much communication, as well as obstacles in communication, possible lack of understanding or noise in the communication channel can produce conflict as a consequence. The second stage, cognition and personalization stage represents the outcome of the impact of first phase factors. We distinguish two sub stages in this stage: Perception of the participants in conflict which does not mean that conflict, has occurred. Not until there has come to articulation of feelings and expression of awareness of conflict, can we say that the conflict itself occurs. In the third stage there comes to conflict manifestation. There is hostile behavior among participants in conflict and we say there comes to the so called open disagreement. The last stage in this process of conflict is the conflict outcome which shows us the further relationship development of the participants in conflict and consequences of conflict. Consequences of conflict can be manifest through increased working efficacy of the organization in whole or quite the contrary, the decrease of working efficacy [8x]. Conflict management styles: The success of the organization depends on the ability of conflict recognition and the very way of conflict management. Conflict management implies integration of all factors which can contribute to conflict resolution or its prevention. Those factors are improvement of communication and practicing discipline in the organization, as well as having in mind the life phases of parties included. Different authors know about various approaches to conflict management. Besides five typical approaches and strategies on conflict management which we will show and explain, it is important to point out that an important role bears also the organization itself as the third party in conflict. The organization appears as the mediator between adversaries or as arbitrator. This third party in organization are managers which by using their experience have to constantly develop new strategies and tactic for conflict resolution by using their experience. Moreover, it is generally acknowledged that confl ict represents the most severe test of managers interpersonal skills. CONFLICT MANAGEMENT STYLES DIAGRAM: Thomas and Kilmann identified a conflict-handling grid comprised of five conflict management styles based on two dimensions: assertiveness and cooperativeness. Assertiveness is the motivation of an individual to achieve his/her own goals, objectives, and outcomes, while cooperativeness assesses the willingness to allow or help the other party to achieve its goals or outcomes. Any of the five conflict resolution styles might be appropriate based on the circumstances of the situation and the personalities of the individuals involved. Avoiding Conflict Resolution Style The avoiding style is low on both assertiveness and cooperativeness. In other words, the manager is not very cooperative in helping the other individuals to achieve their goals, but neither is he/she aggressively pursuing his/her own preferred outcomes in the situation. The original problem, conflict, or situation is never directly addressed or resolved. However, avoiding behavior might be appropriate when the issue is perceived by the manager to be trivial. It might also be an appropriate approach to use when there is no chance of winning or when disruption would be very costly. When is Avoiding Appropriate? Avoiding conflict can be an appropriate choice, depending on the circumstances. According to Thomas-Kilmann avoiding is an appropriate form of dealing with conflict when used in the following situations: When an issue is trivial and other issues are more important or pressing use time and effort where it will be most productive. When there is no opportunity to constructively address the concern attempts to deal with the problem will likely result in futility and may make matters worse. It may not be the right time or place. When the potential cost of confronting the conflict outweighs the benefits in addressing it this requires assessment and judgment. To buy time and give angry people an opportunity to cool down so that tensions can be reduced it is important for parties to take a break to regain perspective and composure when the situation becomes heated. To refrain from making a rushed decision and allow time to obtain more information or support well planned and prepared decisions are usually the best decisions. When it is more appropriate for others to resolve the conflict resist getting in the middle of conflicts that are better dealt with by other people. Working with Conflict Avoidant Individuals It is clear that the use of avoiding dealing with conflicts and differences can have both positive and negative implications. When working with individuals as a supervisor, mediator, or friend it is helpful to get them to consider the pros and cons of avoiding conflict. Developing a strategy or plan requires that conflict avoidant individuals at least consider their options. [10x] Choosing a conflict mode other than avoiding may be understood by conflict avoidant people as a better option but acting on this choice can still be very difficult. Ensure that emotions are under control so that the facts, beliefs, and goals regarding the disagreement can be clarified and understood as objectively as possible. Excessive fear can be emotionally paralyzing. Role playing or writing out a plan of action can give a conflict avoidant person the confidence they need to deal with the conflict. Assertiveness coaching may also help. These preparatory approaches allow individuals to express their thoughts and feelings in a manner that is typically less stressful than talking about them spontaneously. It is possible that one party will be in a relative power position over another, such as a boss vs. employee. In these situations involve a person in a mediator role who can be neutral yet balance the power relationship so that the weaker party will develop the courage to address their concerns. When this is not possible the weaker party may need to include another person as a third party advocate or observer to help give them some support. [10x] Competing Conflict Resolution Style The competing style of resolving conflict is also known as the win-lose approach. A manager using this style, characterized by high assertiveness and low cooperativeness, seeks to reach his/her own preferred outcomes at the expense of other individuals. This approach may be appropriate when quick, decisive action is needed, such as during emergencies. It can also be used to confront unpopular actions, such as urgent cost cutting. The strategy of â€Å"competing† as a means of gaining power and control stems from early childhood and is reinforced throughout our years in school and college. Many children learn that they can obtain material objects as well as social control over people by using assertive, demanding or aggressive behavior. As they mature they use their talent to compete to â€Å"be the best† student, athlete, musician, etc. or to socially compete to be popular and have status among peers. Some youth learn to deal with disagreements by persuading others to accept their position. Others use power negatively in the form of arguments, threats, intimidation, or physical fighting. Youth who are effective at competing are deemed to be successful. Children and youth who do not stand up for themselves in conflicts may be seen as weak. Many video games and other media directed at youth promote the thrill of engaging in conflict with the goal of defeating the â€Å"enemy†, often using a ny means possible. All of these dynamics promote the use of competitiveness. While parents and teachers also instruct children to be kind, considerate, and cooperative there remains a strong inclination toward using competitiveness as a means of solving problems and achieving success. The value of competing to resolve differences and achieve goals continues into adulthood and employment. Individuals compete for status and position within organizations, sometimes being rewarded for their ability to achieve business goals by being better than their internal colleagues or external business competitors. Successful leaders demonstrate an ability to strategically use their competitive energy and skills for personal and professional benefit. While competing can be productive it can also cause problems when used excessively or inappropriately. It can lead to misuse of power, fraudulent acts, and unethical or illegal activity as we have seen in the situation at Enron and in other business and political events in the news. Truly successful people develop the judgment and skills to use competitiveness effectively and appropriately. [10x] Competing is an appropriate form of dealing with conflict when used in the following situations: When a quick decision and action is needed. When the outcome is critical and cannot be compromised. When you know you are right and are doing the correct thing. In emergencies or when safety is a concern. When being right matters more than preserving the relationship with the other party. When important but unpopular actions are needed such as cost-cutting, down-sizing, enforcing rules, or administering discipline. When ones position, authority, or rights are being challenged. When implementing strategic change and strong, confident leadership needs to be demonstrated. When used inappropriately competing in conflict situations can lead to negative consequences such as: When it strains relationships leading to resentment and retaliation. When it causes intimidation which inhibits important communication, discussion of alternative ideas and attempts at problem solving. When collaboration or compromise would lead to a better exchange of information and better decisions or outcomes. When personal drive for power and control overrides the best interests of the organization. When it results in diminished commitment and support from staff. When it is indicative of a highly competitive personality trait resulting in overuse, causing a person to not recognize when it is important to quit or take another stance. When â€Å"winning at all costs† results in harm to people or the organization. When the personal relationship is more important than the issue at stake. In attempting to address a conflict with another person who differs with you and takes a competitive position it may be helpful to do the following: Allow the person to first thoroughly explain their position, asking clarifying questions. Summarize and repeat what you have heard to assure mutual understanding. Acknowledge the parts that you agree with. Ask the party to carefully listen to your position, clarifying points of agreement and disagreement, using logic and data to support your perspective. Consider having both positions put into writing for review and consideration. Minimize discussion or expression of feelings or subjective elements unless the other party seems open to this perspective. Point out the mutual benefits of a decision that involve collaboration or compromise if this is an option. Help the other party to understand how your position will benefit him/her and how they can gain from agreement with your proposal. I