Fundamentals and Management Current Complex Global Management

Question: Describe about the Fundamentals and Management for Current Complex Global Management. Answer: Introduction Administering people in current complex global environment has become tough task where key managerial personalities must be efficient in segregating the assigned tasks among individuals and capable of offering clear instruction to involved parties to have desired outcomes (Armstrong Porter, 2007; Daft, 2011; Hitt, Ireland Hoskisson, 2007). Nature of enterprise varies from being in business, education, hospitals to non-profit field due to which the task and role of managers are different which needs to managed superiorly to create competitive edge against other players (Young, 2010; Hollyforde Whiddett, 2002). This report has selected Woolworths Limited, an Australian Retailer, that focus on extending strategic leadership in food and liquor segment, increasing shareholder value, creating competitive growth plans and encouraging people who supports growth (Woolworths Liqour Group, 2015). The tasks with which the senior team leader of Endeavour Drinks segment, Martin Smith, of the co mpany is assigned with will be analysed (Woolworths Liqour Group, 2015). The basic details regarding the team leader position and job description will be highlighted further along with list of parties, principle characteristics and diagrammatic representation among personnel. Requirement of Job Harold (2010) claims that working as a leader is a complex where the role is to offer individual maximum support to complete their assigned tasks accurately and assists the firm to obtain their desired goals. The position of Martin Smith in Woolworth Limited is essential where the person in order to manage the staff and executives requires giving significant knowledge for managing day-to-day activities and obtaining operational excellence (Woolworths Liqour Group, 2015). As per an article published in newspaper, the CEO of the company claimed its liquor segment among the market leaders and appropriate example for innovation in the Australian retail (Homewood, 2015). The position which Martin Smith holds in the company is critical and challenging wherein accordance to changing preferences of consumers the manager must be eligible to inspire peers and subordinates for innovation (Woolworths Liqour Group, 2015). The requirement of the job is to create friendly relation with suppliers an d partners so that they can serve the requirements of millions customers that improve their satisfaction level (Forsyth, 2009). The job description of Martin Smiths position is to understand the necessities of business and convey important decisions and information related with department to subordinates and people. This way the company will be able to improve its processes and maintain suitable relation with suppliers and consumers (Turner, 2012). For instance, in Australia, in order to be the price leader the entity came up with a Savings Everyday Campaign where consumers were informed about the benefits of shopping at company (Woolworths Limited, 2013). Woolworths Liquor group is having wide range of consumers across varied segments and channels which require clear leadership with regular communication with producers and farmers (Woolworths Limited, 2011). Moreover, in order to attract and retain consumer base the company has involved itself in coming up with innovative strategie s for online and in store departments (Mitchell, 2015). For retaining the corporate vision of the company, leaders personality must be dynamic, quick decision-maker, innovator and inspiring. List of Parties Woolworth liquor department is managed jointly for Australia and New Zealand where after Greg Foran, Martin Smith has been recruited as senior team personnel to administer the entire region (Mitchell, 2015). In order to conduct the activities several internal and external parties of the company are involved who ensures that items are delivered within estimated time period to consumers. Some of the essential parties with whom Martin Smith has to contact regularly are as illustrated in table 1. Table 1: Key Personnel of Woolworths with designation and job role Name Designation Job Role Mr. Brad Banducci MD and CEO Administers the overall activities of Woolworths brands Mr. Steve Greentree General Manager Looks after essential portfolios trading portfolio of Woolworths Mr. David Chambers Managing Director of New Zealand supermarket business Assigned for taking care of supermarket business. Mr. Luke Dunkerley General Manager of Consumer and Corporate Marketing Department Works closely with the trading divisions of entity especially with new Home Improvement business Masters. Ms. Elizabeth Reyley Marketing GM for Australia Looking after the marketing schemes and campaigns that must be launched by enterprise for superior performance. Terry Thomas Liquor Department Manager Made responsible for taking care of inventory level at liquor and processing orders. Campbell Stott (Dan Murogys) General Manager (Supplier) Supplies liquor (beer) to Woolworth limited. (Source: Woolworths Liqour Group, 2015) Principle Characteristics of Group Table 2 illustrates the principle characteristics of Group and pattern of interaction among several departments of enterprise. Table 2: Characteristics of the Interacting Group Name Demographics Characteristics Pattern of Interaction Brad Banducci Age: 55 Gender: Male Personality: Done MBA and Bachelor of Law and Commerce. Have held the position of CFO, non-executive director, Vice President at Cellarmasters, Tyro Payments and The Boston Consultancy Group Bard being the heading personality of the company needs to have direct interaction with other directors and team leaders regularly. Steve Greentree Age: 35 Gender: Male Personality: Have held position as Management Trainee, administer for business development, COE of supermarkets and Petrol, GM for Quality Assurance (Australia) Steve has wide experience in operations for which formal and direct communication among trading partners and several other department of Woolworths. Luke Dunkerley Age: 37 Gender: Male Personality: Had been Advertising copywriter, MD at MC Saatchi Retail and The Campaign Palace. Interacts directly with new Home Improvement business Masters. Terry Thomas Age: 30 Gender: Male Personality: Worked as supermarket worker at Supa IGA plus liquor shop. Reporting directly under Martin and managing operations related with liquor supply. Campbell Stott (Dan Murogys) Age: 40 Gender: Male Personality: Have directed large teams involved in day-to-day operations within liquor and fresh food field. Being among the important supplier of Woolworths Limited Campbell requires to administer the Elizabeth Reyley Age: 30 Gender: Female Personality: Has been working in the company for marketing schemes and campaigns. Interacting with marketing agencies, strategists and managers for coming up with innovative concepts of increasing sales of items. (Source: Woolworths Liquor Group, 2015) Nature of interdependency existing between manager and key individuals The group shares pooled interdependence among each other where every personnel are assigned with distinct jobs with different departments (Wheelan, 2005; Grifin, 2013). Martin being the liquor department senior manager requires proper interaction (direct and indirect) with people belonging to the entity where failure of one department could impact the performance of entire business. For instance, for continuous supply of wine Martin must be direct contact with Campbell Stott (Dan Murogys) and on the other hand with Elizabeth regarding ways to increase the sale. If Elizabeth fails to come up innovative and attractive marketing campaigns it could result in poor sale of liquor brands of Woolworths and Dan Murogy. This illustrates that pooled interdependence among people belonging to distinct designation and department exist which must be managed efficiently by Martin to have superior performance of entity. Diagrammatic representation of interdependencies among people Figure 1 illustrates the interaction and dependency that people shares within different Woolworth Department. The independent group are Brad Banducci, Steve Greentree and David Chambers as they are important managerial of Woolworths who are assigned to look after entire supermarket business in Australia. On the other hand, supplier companys director Campbell Stott, Elizabeth Reyley and Duke Dunkerley are largely interdependent among each other where Martin Smith in order to have efficient supply, advertising schemes and stock of liquor items requires maintaining proper interaction among the team. Figure 1: Interdependency among Personnel with Martin Smith (Source: Authors Creation) Martin Smith works under the supervision of Brad Banducci, Steve Greentree and David Chambers and they must be informed regarding key decisions while Martin Smith is the directing authority for the Terry Thomas and other two. The group shares a pooled interdependency where they are indirectly or directly linked and must be efficient in handling their assigned tasks failing which the overall performance could be affected. Evaluation of the Interdependent Group Terry Thomas: Assigned with the post of Liquor Department Manager and is responsible for taking care of inventory level of liquor at stores and processing orders. Terrys efficiency and effectiveness of jobs is entirely dependent on direction and inspiration provided by Martin Smith. Martin in order to increase satisfaction level of Terry should have proper communication and appraisal mechanisms that result in encouragement and superior performance of department. Campbell Stott: The efficiency and effectiveness of suppling enterprise is interconnected with how efficiently Martin Smith manages the deals. While trading the items to any company, suppliers frames certain rules and conditions regarding quality, price and quantity of items being transferred that must be handled efficiently to have regular flow of stock at stores (Wheelan, 2005). The schemes or additional benefit that Martin Smith provides to suppliers impacts the overall decisions and supply chain management of Woolworths liquor department. Elizabeth Reyley: Reyley looks after the advertising campaigns that need to be implemented by Woolworths brands to improve or increase the sales against other competitors. Martin Smith interaction with Elizabeth is essential regarding what offers they are offering related with drinks based on which the overall theme of campaign depends. Therefore, improper interaction between Martin Smith and Elizabeth Reyley could result in improper strategic communication and loss of sales. Conclusion and Recommendations The report has discussed different departmental heads and personnel related with senior team management of Woolworths liquor section. Martin Smith has been recruited as managing executive of liquor stores throughout different parts of Australia and New Zealand. In order to have superior performance it should be ensured that proper interaction among departments and people are being undertaken. The report has pointed out list of parties that are involved in important decisions of liquor department where dependency among people are illustrated through diagrammatical representation. It was observed that activities of liquor department manager, marketing head and supplier is highly interlinked with the decisions and information conveyed by Martin Smith. In order to improve the efficiency, effectiveness and satisfaction level of personnel working in accordance with Martin must come up various schemes like redesigning of structure and work routine of departments. Better incentive mechanism for personnel like Terry Thomas could be applied where proper recognition or promotion could be offered for maintaining appropriate flow of liquor at stores. In order to have better tasks accomplishment in companies the managers must be capable of improving the personnel efficiency through better tasks and structures. References Armstrong, M. Porter, R.H. (2007). Handbook of Industrial Organization. Netherland: Elsevier. Daft, R.L. (2011). Management. London: Cengage Learning. Forsyth, D.R. (2009). Group Dynamics. Australia: Wadsworth Cengage Learning. Grifin, R.W. (2013). Fundamentals of Management. London: Cengage Learning. Harold, K. (2010). Essentials of Management. Noida: Tata McGraw-Hill Education. Hitt, M., Ireland, R.D. Hoskisson, R. (2007). Strategic Management: Concepts and Cases. 7 th Edition. London: Cengage Learning. Hollyforde, S, Whiddett,S. (2002). The Motivation Handbook. Wiltshire: CIPD. Homewood, S. (2015). Woolworths names new MD, shakes up liquor and food division. Retrieved from https://www.adnews.com.au/news/woolworths-names-new-md-shakes-up-liquor-and-food-division Mitchell, S. (2015). Woolworths restructure takes toll onSenior Team. Retrieved from https://www.smh.com.au/business/retail/woolworths-restructure-takes-toll-on-senior-team-20150525-gh918j.html Turner, M.E. (2012).Groups at Work: Theory and Research. London: Routledge. Wheelan, S.A. (2005). The Handbook of Group Research and Practice. London: Sage. Woolworths Limited. (2011). Senior Management Changes at Woolworths Food, Liquor Petrol Division. Retrieved from https://www.woolworthslimited.com.au/icms_docs/130187_Senior_Management_Changes_at_Woolworths_Food_Liquor__Petrol_Division.pdf Woolworths Limited. (2013). Annual Report 2013. Retrieved from https://www.woolworthslimited.com.au/icms_docs/137198_Annual_Report_2013.pdf Woolworths Liqour Group. (2015). Managing Director of Woolsworths Liquor Group. Retrieved from https://www.woolworthslimited.com.au/icms_docs/182389_Martin_Smith_-_Managing_Director_of_Woolworths_Liquor_Group.pdf Young, S.T. (2010). Essentials of Operations Management. London: Sage.

Kennedy Essays (2138 words) - Kennedy Family, Bouvier Family

Kennedy John Fitzgerald Kennedy became the 35th president of the United States in 1961. At the age of forty-three, he was the youngest man ever elected president. He was also the first Roman Catholic ever elected to the oval office. Rich, handsome, charming, elegant, articulate, and from a well known family, Kennedy became a natural recipiant of admiration both in the United States and abroad. His assassination in Dallas, Texas on November 23, 1963 resulted in public outrage and widespread mourning throughout the nation and the World. Kennedy's term in office was too short to allow history to pass fair and acurate judgement on his accomplishments as president. Their is little doubt, however, that the image and philosphy, he brought to the oval office not only influenced the generation he governed, but also continues to influence today's generation and politics in general. Indeed, "Camelot", the name given to the idyllic time during Kennedy's presidency, is not a dead mythology but a living idealogy that continues in American society today. John Fitzgerald Kennedy (he latest gained the nick name Jack) was born on May 29, 1917, in Brookline, Massachusetts. He was Joseph & Rose Kennedy's second son. His father was a multimillionaire businessman, who had became a bank president at the age of 25, and made his fortune through investments in stocks, importing, shipbuilding, and moviemaking. Joe Kennedy's political experince was limited to being appointed the first chairman of the newly created Securities and Exchange Commission (1934-1935) by president Franklin D. Roosevelt, and having served as the head of the U.S. Maritime Commission (1937), as well as being the U.S. ambassador to Great Britain (1937-1940). Even though Joseph Kennedy never ran for an elected office himself, he and his wife had large ambitions for their nine children. John Kennedy was groomed for a career in politics from an early age. Growing up Kennedy was small for his age and suffered through several childhood diseases. As a child he was quite and shy, a far cry from his personality traits in his later years. During his childhood his older brother Joe helped and protected him, and served as a role model for young Jack. From an early age the Kennedy children were taught by their parents that the United States had been good to the Kennedy's and that whatever the U.S. did for them must be returned by some service to the country. Jack took this idea to heart. Later it became the basis for a famous line from his inaguration speach in which Kennedy said: "Ask not what your country can do for you -- ask what you can do for your country." In school Kennedy excelled in history and english, but was a poor speller and struggled in math and science. Kennedy's sixth grade teacher noted his humor and competitive spirit. Kennedy graduated from Choate High School in Wallingford Connecticut and briefly attended Princeton University before enrolling in Harvard in 1936. While attending Harvard Kennedy wrote a brilliant honors thesis on British Foreign policies in the 1930s called "Why England Slept", which was later published. He graduated in 1940 and was voted most likely to suceed by his classmates. In 1941 Kennedy entered the the U.S. Navy shortly before the United States entered World War II. Following Pearl Harbor he applied for sea duty and became the commander of PT 109, a Navy torpedo boat. In 1943, while on active duty of the Pacific, the boat he commanded was rammed and sunk by the Japanese. In an act of heroism, Kennedy rescued and lead his crew ashore, but in doing so aggravated an old back injury and contracted malaria. He was discharged from the Navy in 1945. Kennedy returned home to Boston from the war with a citation for valor to began persuit of the political career his parents had envisioned for him. In 1946, the rich and ambitious young veteran joined the Democratic party and successfully ran for a Boston-based seat in the U.S. House of Representatives. He was reelected to the seat in 1948 and 1950. As a congressman Kennedy supported social legislation that benefited his working-class constituents. It was during his tenure in congress that he began to advocate a strong anti-communist foreign policy, which he continued to promote for the remainer of his life. During this time Kennedy was especially critical of what he considered a weak policy against communism, especially communist China, by president Truman. Kennedy become restless in the House and in 1952 ran for the U.S. Senate. He faced a strong opponent in

Temple of Artemis at Ephesus

Temple of Artemis at Ephesus The Temple of Artemis, sometimes  called the Artemisium,  was a huge, beautiful place of worship, that was built around 550 BCE  in the rich, port  city of Ephesus (located  in what is now western Turkey).  When the beautiful monument was burned down 200 years later  by the arsonist Herostratus in 356 BCE, the Temple of Artemis was built again, just as large but even more intricately decorated. It was this second version of the Temple of Artemis that was awarded a place among the Seven Ancient Wonders of the World. The Temple of Artemis was again destroyed  in 262 CE when the Goths invaded Ephesus, but the second time it was not rebuilt. Who Was Artemis? For ancient Greeks, Artemis  (also known as the Roman  goddess  Diana), the twin sister of Apollo,  was the athletic, healthy, virgin  goddess of hunting and wild animals,  often depicted with a bow and arrow. Ephesus, however, was not purely a Greek city. Although it had been founded by Greeks as a colony on Asia Minor around 1087 BCE,  it continued to be influenced by the original inhabitants of the area. Thus, at Ephesus,  the Greek goddess Artemis was combined with the local, pagan goddess of fertility, Cybele. The few  sculptures that remain of Artemis of Ephesus show a woman standing, with her legs fitted  tightly together and her arms held out in front of her. Her legs  were wrapped tightly in a long skirt covered with animals, such as stags and lions. Around her neck was a garland of flowers and on her head was  either a hat or a headdress.  But what was most pronounced was her  torso, which was  covered with a large number of breasts or eggs. Artemis of Ephesus  was not only  the goddess of fertility, she was the patron deity of the city. As such, Artemis of Ephesus needed a temple in which to be honored. The First Temple of Artemis The first Temple of Artemis was built in a marshy area long held sacred by locals.  It is believed that there was at least some sort of temple or shrine there at least as early as 800 BCE. However, when famously-rich King Croesus of Lydia conquered the area in 550 BCE, he ordered a new, larger, more magnificent temple to be built. The Temple of Artemis was an  immense, rectangular  structure made of white marble.  The  Temple was  350-feet long and 180-feet wide, larger than a modern, American-football field. What was truly spectacular, though, was its height. The 127 Ionic columns, which were  lined up in two rows all around the structure, reached 60 feet high. That was nearly twice as high as the columns at the  Parthenon in Athens.   The entire Temple was covered in beautiful carvings, including the columns, which was unusual for the time. Inside the Temple was a statue of Artemis, which is believed to have been life-sized. Arson For 200 years, the Temple of Artemis was revered. Pilgrims would travel long distances to see the Temple. Many visitors would make generous donations to the goddess to earn her favor. Vendors would make idols of her likeness and sell them near the Temple. The city of Ephesus, already a successful port city, soon became wealthy from the tourism brought in by the Temple as well. Then, on July 21, 356 BCE, a madman named Herostratus set fire to the magnificent building, with the sole purpose of wanting to be remembered throughout history. The Temple of Artemis burned down. The Ephesians and nearly the entire ancient world were stupefied at such a brazen, sacrilegious act. So that  such an evil  act would not make Herostratus famous, the Ephesians  banned anyone from speaking his name, with the punishment being death. Despite their best efforts, Herostratus name has gone down in history and is still  remembered more than  2,300  years later. Legend has it that Artemis was too busy to stop Herostratus from burning down her temple because she was helping with the birth of Alexander the Great that day. The Second Temple of Artemis When the Ephesians sorted through the charred remains of the Temple of Artemis, it is said they found the statue of Artemis intact and unharmed. Taking this as a positive sign, the Ephesians vowed to rebuild the temple. It is unclear how long it took to rebuild, but  it easily took decades. There is a story that when Alexander the Great arrived in Ephesus in 333 BCE, he offered to help pay for the rebuilding of the Temple as long as his name would be engraved on it.  Famously, the Ephesians found a tactful way  of rebuffing his offer by saying, It is not fitting that one god should build a temple for another god. Eventually, the second Temple of Artemis was finished, equal or just a bit taller in size but even more  elaborately decorated. The Temple of Artemis was well-known in the ancient world and was a destination for many worshippers. For 500 years, the Temple of Artemis was revered and visited. Then, in 262 CE, the Goths, one of the many  tribes from the north, invaded Ephesus and destroyed the Temple. This time, with Christianity on the rise and the cult of Artemis on the decline, it was decided to not rebuild the Temple. Swampy Ruins Sadly, the ruins of the Temple of Artemis were eventually plundered, with the marble being taken for other buildings in the area. Over time, the swamp in which the Temple was built grew larger, taking over much of the once-grand city. By 1100 CE, the few remaining citizens of Ephesus had completely forgotten that the Temple of Artemis ever existed. In 1864, the British Museum funded John Turtle Wood to excavate the area in the hopes of finding the ruins of the Temple of Artemis. After five years of searching, Wood finally found the remains of the Temple of Artemis under 25 feet of swampy mud. Later archaeologists have further excavated the site, but not much has been found. The foundation remains there as does a single column. The few artifacts that have been found were shipped to the British Museum in London.

Coursework 2 Report Dissertation Example | Topics and Well Written Essays - 1000 words

Coursework 2 Report - Dissertation Example This social media suit has certain tools which will assist them to enhance the Facebook pages, and it will also permit L’Oreal to evaluate the transactions of the salons who have taken the distributorship of L’Oreal. These salons can also launch dynamic videos on their Facebook page, register appointments, bookings, and information sharing on behalf of the company (Thomson â€Å"Is B2B Social Media Marketing behind B2C"). The company also supplied their distributors and suppliers with various educational resources to enhance their social marketing strategy, and as a token of motivation each distributors were also given an advertisement credit of $25. The company received strong response from around 21 million supply points around the world (â€Å"L’Oreal, Salon Campaign by Buddy Media"). They were also successful in reaching out to more than 6000 salons and approximately 1.7 million clients (â€Å"B2B and B2C Brands Discovered the Value of Social Media marketi ng in 2012"). Social Media Networking for B2C Segment L’Oreal is even more active on social media for its B2C segment because this is for attracting the retail customers. The social media marketing vice president of L’Oreal said in an interview that L’Oreal is a big company, with different product lines, so social media chosen for every product line is based on the nature of the product and target customers. In terms of social media resources, L’Oreal experiments with various channels such as Instagram, Pinterest and even Tumblr. However, the major channel for social media marketing is still Facebook and Twitter obviously because of its huge user base. Facebook is a partner with L’Oreal for its social media marketing. Twitter is however, still a guide of innovation, and brands like Maybelline are being promoted on Twitter. Georges Edouard Dias, the vice president of the digital business at L’Oreal, said in his interview in â€Å"Marketing W eek†, that in order to understand the needs and requirements of the customers, the company should have to reach out to their target customers through various means of communication (Handley â€Å"Q&A: Georges-Edouard Dias, L'Oreal†). He said that they get approximately 250,000 posts for their brands every day. The company also uses social media for cross selling in various countries like China. Beauty has been always regarded as a component of social conversation. YouTube plays a significant part in this context, where women get to see how the products are used or put on. The video content is being optimized regularly for this purpose. The company has also segregated the video division, which concentrates on social media marketing videos on YouTube (Edwards â€Å"L'Oreal Social Media Chief Rachel Weiss Tells Us Why She's Bored of Pinterest†). Work Cited â€Å"B2B and B2C Brands Discovered the Value of Social Media Marketing in 2012."  Brafton Editorial. Brafto n, Incorporated, 28 Dec 2012 Web. 5 June 2013. â€Å"L’Oreal, Salon Campaign by Buddy Media"  International Advertising Bureau UK. International Advertising Bureau, 23 Aug 2012. Web. 5 June 2013. Edwards, Jim. â€Å"L'Oreal Social M

Gas Chromatography Term Paper Example | Topics and Well Written Essays - 1750 words

Gas Chromatography - Term Paper Example It is also referred to as gas separator or aerograph. Gas chromatography is different from other forms of chromatography because the solutions are always in gas state as they travel through the column. Retention time occurs when different compounds separate in the column at different times. The gases have different eluting times due to the reactions between them and the column. The gases are now compared by their different retention times which give the gas chromatography the power to analyze the gases (Eli, pp. 217-220). Chromatography originated in 1903 by Mikhail Semenovich Tswett who was a Russian botanical scientist. He opened the way to gas chromatography. He used adsorbents like ethanol and calcium carbonate to elute carotenoids and chlorophylls this saw the use of the column chromatography. The foundation of the gas chromatography was later laid by the Nobel Prize winner John Porter Martin. In 1941, he used the liquid to liquid method and in 1944, paper chromatography which brought about gas chromatography. It later led to the formation of liquid-gas chromatography in 1950. This has led to the modern gas chromatography technique which is being used today as an important analytical technique in chemistry (Colin, pp. 161-165). The description of chemistry, physics and biology behind the gas chromatography technique can be explained ... This means it uses the inert gases like carbon dioxide, helium, nitrogen and argon. For one to choose the carrier gas, he or she needs to identify the type of detector to be used. It has a molecular sieve that sieves out impurities and water (Casimir, pp. 139-142). The injector port is a column in which the samples are passed in the instrument. The samples are not supposed to be very large and they are to be introduced in the column as in the state of vapor. Large sample injections can cause the band to broaden thus lose resolution. The most accurate and common method used is that of injecting samples via a rubber septum using the micro syringe. The injector is characterized by a heated chamber which has a glass liner where the sample is passed through the septum. When the injector is using the splitter mode, the carrier gas normally enters the chamber and leaves it by three outlets. Then the sample becomes vapor which leads to the formation of the mixture of carrier gas, vaporized solutes and solvents. A small amount of the mixture goes to the column leaving most of it to exit via the split outlets. Components can not enter the column due to the septum purge outlet in the instrument (Sawhney, pp.211-215). The column is divided in to two sections; capillary and packed. The capillary is further divided in to two whereby there is the support or wall coated open tubular (WCOT, SCOT). The wall coated has a liquid coated stationary phase while the support coated one has thin layer of a supportive material that absorbs the stationary phase. The most efficient type of capillary is the wall-coated capillary. The fused silica open tubular column is considered to be the best as it is a type of the WCOT.

Advantages and Disadvantages of Effective Budget Control

Advantages and Disadvantages of Effective Budget Control This paper will look at what is required of an effective budgetary control mechanism and try to assess the advantages and disadvantages of using a system imposed from above, or externally, over a decentralized system controlled by lower level management as task level. Using an empirical case study from the international banking sector, it will be shown that too much managerial autonomy can lead to disaster not just for the manager concerned but also for the whole organization. In contrast the role of the World Bank and International Monetary Fund in imposing nation-state loan budgets will be critiqued to highlight the potential flaws of centralizing and dominating budget control management. Effective budgetary controlHenderson (2003) notes that regardless of the situation or workplace, in order to be effective it is crucial that budgetary control systems: Account for money received and spent Make sure that the organizations financial policies are adhered to Ensure that money is not wasted Assist managers to run, and develop, services or departments These controls have developed from the need to account for large sums of money but are equally applicable to any budgetary situation. However, from a managerial perspective they have often been criticised for being insensitive and restrictive at the lower levels of management. As the number of stakeholders increases so does the need to be fully accountable and therefore more controls are also needed. This is particularly noticeable in the public sector National Health Service. Here lower level management are extremely subservient to imposed and tight budgeting restrictions from a distantly senior level. This is arguably a result of the need to satisfy a multitude of stakeholder interests and a concern that empowering lower management with the autonomy to control their own budgets would fail to include the number of interested parties from politicians to doctors and patients. With organisations as complex as the NHS whether public or private sector – It is safer and easier to p lan and control from above using imposed budget control methods. Politically imposed budgeting is preferably because senior managers, directors, or institutions who set the budgets are arguably best placed to recognise the wider implications of budgeting decisions but, according to Marginson (1999), financially imposed budget controls make sense too. Financial losses, which can occur for such damaging reasons as incompetence, error, negligence or fraud, are most likely to be minimised, or avoided altogether, by well constructed control systems. Imposed budgets benefit from the experience, acquired knowledge and full backing of senior management. They arguably encourage a sense of confidence in lower level management to do their job whilst reducing the massive levels of stress that come with having to create and manage your own budget. Another advantage of imposed budgeting is that it encourages regular monitoring, reporting, progress reports and ultimately improvements in the budgetary system. This enables problems to be uncovered and dealt with quickly and efficiently. Henderson (2003) states that it is advantageous to review arrangements occasionally. Even if procedures within your work area operate well, you should ensure that the budgetary responsibilities of staff at all levels are clear and understood by everyone. It would be unfortunate if problems arise because people do not know the extent or limit of their responsibilities (p33). Autonomous managers are arguably less likely to self-review their processes if they are deemed to be working well. Whereas senior management may be able to employ the use of an external or dedicated process-auditing team, lower level management are unlikely to have the resources or inclination to do the same especially if a process is deemed to be largely successful and given that any negative results will reflect directly and negatively on their managerial budgeting ability. There are further problems with lower level management dictating their own budget. As a budget manager, you are in charge of producing an annual cash flow forecast detailing accurately all of your income and expenditures. Budget managers are also expected to collect a range of information throughout each year, both financial and non-financial, to supplement their cash flow predictions and help better manage their finances. Finally they are then expected to critically compare the planned figures and the actual revenues and expenditures that occurred and act to ensure that the inflows and outflows of cash are within budget limits. In short, managers who are given control over their own budgets are required to be financially adept. Often, even if the manager is financially confident, proof of budgetary ability will only be learned from success or failure by which time it may be too late to rectify any problems. Marginson (1999) suggests that the concept of self-managing a budget at all levels through an organization is essentially flawed. If a manager has responsibility for a budget they he argues should not be expected to regulate and monitor is on their own. Ideally a system would be in place to bring any relevant or potentially important information to the managers attention. The flaw of any budgeting system that encourages managerial autonomy is that, eventually, in the case of poor performance a reporting system will eventually alert senior management to the crisis. Inevitably, senior manage will then try to rectify the situation costing time, resources and money. This often lengthy process would almost certainly be entirely avoided if senior management imposed budgetary control measures tightly from the top. A potential hazard in using imposed budgetary controls Imposing financial authority from the top-down may be one method of ensuring that the commands of senior management (or external bodies such a the Government) are carried out but this strict system of financial control is not necessarily the most productive method of financial management. The most commonly cited problem with a top-down method of strict budgetary control is the message that it permeates down the hierarchy. This invariably is translated as a lack of trust in the ability of lower-level and middle-management from those above them. As Benston (1963) explains: Decentralization contributes to effective motivation. The firm’s accounting system that facilitates decentralization hence has an indirect but important impact on motivation. The direct use of accounting reports, such as budgets, for motivation can result in reduced performance, if the budget is imposed on the department manager. (p347) The financial advantages of imposing budgetary control – such as less risk of money being wasted, tighter adherence to company financial polity etc are potentially offset by the negative effects on motivation (and therefore productivity and profitability) such a gesture could make.According to Petrova (2004), autonomy and motivation are commonly considered to be extremely closely associated to one another. Given the value of a motivated workforce, the use of imposed budgets could be limiting the success of the business as well as its employees. Case Study:  Too much managerial autonomy – Nick Leeson and banking crises Over the last two decades crises the banking worldwide and the subsequent global financial instability they have invariably caused have occurred with alarming regularity and always at a huge, often crippling, cost. According to estimates by the International Monetary Fund, more than a dozen banking crises in the past 15 years have cost the countries afflicted 10% or more of their gross domestic product (Economist, 2003). Although the majority of banking collapses seem to occur in the less developed and therefore poorer nations of the world, rich countries are also susceptible, as Japan demonstrated before the world in the 1990s. The blame is frequently – and correctly – laid on macroeconomic policy: an unsustainable exchange rate has no doubt often exacerbated problems but it is poor budgetary control that has been at the root of the majority of banking crises in recent times.. It is not just the banks who are to blame for this. Imposed budgets do not necessarily have to come from within the organisation. Bank regulators, too, should have done, and should do, more to help avoid these crises. The Basel Accord is the main external control that is used to protect the financial safety of banks. The Accord established a set of international rules that limit banks exposure to risk by requiring that their capital must at least equal a minimum proportion of their assets (Economist, 2003). This proportion is weighted by a calculated risk based on the circumstances of each individual bank. The Basel Accord is effectively the banking industries version of imposed budgeting. The external regulator oversees the business of the banks to ensure that they do not assume too much autonomy. (Economist, 2003) The case of Nick Leeson and the collapse of Barings Banks provides a hugely unlikely yet extremely note-worthy case to act as a warning of what can happen to companies that do not impose strict financial controls on their management. As Van der Stede (2000) warns, this is especially pertinent for companies concerned with achieving tangible results as they are more likely to have managers with a stronger focus on business matters that affect the short-term results (p609) and are therefore more likely to take poorly calculated risks with company money. In the Leeson case the bank were found to be guilty of allowing an unprecedented degree of managerial influence in the trading budget. This eventually allowed just a single employee Leeson to accumulate debts of over  £1.3 billion and bankrupt one of the worlds oldest banks. In a fatal mistake, the bank allowed Leeson to remain Chief Trader while being responsible for settling his trades, a job that is usually split. This had made it much simpler for him to hide his losses. (BBC, 2002). If any case highlights the dangers of allowing managers unbridled participation in budgetary control, the Lesson case is it. Problems with imposed budgets a global political perspective. The World Bank and the International Monetary Fund control the flow of finances and effectively national budgets in every country across the globe. Their role is to promote stable growth in a bid to increase the wealth of citizens across the globe. However, as recently as April 2005, hundreds of members of parliaments around the world are calling on these two institutions lenders of billions of dollars every year, – to renege many of the numerous conditions they impose on borrowing countries in order to secure their loans. These conditions, they say, are eroding national sovereignty and impeding long-term economic planning necessary to achieve positive and sustained growth. Instead, global politicians, most vocally from the less developing countries who are the primary victims of the current restrictive loan scheme, are calling for the World Bank and IMF to let local legislators have the final say in domestic economic policies. Typical IMF conditions imposed on lending nations include devaluation of local currencies, deregulation of state-owned industry, tight public spending caps, liberalisation of trade and exchange controls, withdrawal of subsidies, and more protections for the private sector and multinational companies (Mekay, 2005). Beyond this critics argue that both institutions have been guilty of providing inaccurate and detrimental economic advice that has only helped to compound the economic rigidities created by the loans causing delayed debt relief, increased poverty and undermined democracy, prompting demonstrations and street protests in many countries (Mekay, 2005). According to the petition, in 2003, the former Soviet state of Georgia’s budget deficit exceeded its IMF-set limit. The Fund then asked Georgia to revise its budget for that year, but the parliament refused to pass it. Rather than accepting this decision, the IMF allowed its lending programme with Georgia to expire in retaliation. This led to threats from the World Bank that it, too, would pull the plug on existing projects. (Mekay, 2005) The IMF and World Bank reflect a system of imposed budgeting that is arguably more detrimental than it is effective. Imposed budgets must be careful to provide some degree of flexibility and maneuverability if they are not to cause resentment and productivity problems. This is particularly the case if budgets are being set and imposed from external sources. On a local or company scale there are further problems with the use of imposed budgeting in trying to link financial failures with those responsible for them. It is important to be able to link levels of activity, the consumption of resources and the achievement of targets with the managers primarily responsible for making decisions about these issues (Henderson, p33). If budgets are imposed from above, it is potentially difficult to identify the source of budgetary failure. If managers are autonomous, any budgetary failure is attributed directly to them. This arguably generates stricter budgetary discipline, responsibility and better management. Unless you have the authority to control financial resources, you cannot effectively manage the services for which you are responsible (Henderson, p23). Conclusion Henderson (2003) argued that successful budgetary control resulted in; being able to account for money received and spent, making sure that the organisations financial policies are adhered to, ensuring that money is not wasted, and assisted managers to run, and develop, services or departments. There is no single correct way of managing budgets but from the evidence presented above it is arguable that imposing a set of budget controls is a more effective method of safeguarding company finances. Certainly this method guarantees that company polices are adhered to and money is accounted and, if employees and managers are motivated, imposed budgets do not necessarily detract from department development or cause money to be wasted. It is the assumption that motivation is sapped by reducing autonomy that is the major criticism of imposed budgeting but this is little proof that this is the case. Petrova (2004) writes in her article on motivation and autonomy that motivated employees may gain more from autonomy but autonomy in itself is not a guaranteed method of increasing employee motivation. In addition, Petrova concludes that the likely benefits for increasing autonomy for already motivated employees are unlikely to be returned in financial gains but rather in changes in leadership styles and organizational structure. Given that the foremost concern of budgeting is to secure the financial future of the company, rejecting imposed budgeting on account of its effect on organizational structure and leadership style arguably inappropriate. Bibliography Mekey, E (2005); MPs demand more budgetary control from IMF and World Bank; Finance Customwire, Public Agenda/All Africa Global Media Economist (2003); Guiding the pack; Vol 368, Issue 8334 Henderson, Prof. E (2003); Budgeting Part Two; Nurse Management Vol 10, Issue 2, p32-37 Van der Stede, W (2000); The relationship between two consequences of budgetary controls: budgetary slack creation and managerial short-term orientation; Accounting, Organisation Society; Vol 25, Issue 8, p609-623 Marginson, D.E.W (1999); Beyond the budgetary control system: towards a two-tiered process of management control; Management Accounting Research; Vol 10, Issue 3, p203-231 Benston, G.J (1963); Accounting Review; Vol 38, Issue 2; p347-354 Petrova, K (2004); Does Motivation trigger Autonomy, or Vice-Versa?; Econometrics of Labour Demand; VXXXVIII International Conference Applied Econometrics Association; www.aea.fed-eco.org 10/05/05 BBC News Website (2002); Nick Leeson and Barings Bank; Crimewatch Case Closed; www.bbe.co.uk/crime – 10/05/05

Cross-cultural Communication Essay

Language is playing nowadays one of the most important roles in cross-cultural communication, because it is a door into new culture and traditions. Cross-cultural communication arouses great interest compared with that of several decades ago. It means that the future success of a person mainly depends on his ability to use language and to communicate effectively across cultural boundaries. Nevertheless learning other languages doesn’t limit cross-cultural communication, language firstly suggests how cultural traditions and patterns are understood and how cultural values may affect the process of communication. (Managing Communication) Learning other languages is nowadays necessity, not only an option. Lots of spheres are influenced by cross-cultural communication involving, for example, health care providers, businesses, educational institutions, social service agencies and non-governmental organizations. Modern world recognizes and appreciates the role of language that is played in developing communication beyond cultural boundaries. Studying of language will help to achieve goals outside the native country. (Managing Communication) Understanding how to communicate cross-culturally will help to promote creating smoothly working project teams; responding to customers, clients, and markets; living and working in a culturally diverse world. Language is necessary in realizing that a person from other culture expresses his ideas and thoughts in completely different way. It is mentioned that â€Å"developing an awareness of why hearing words alone is not sufficient to discern meaning†. Language is important as well as learning of cultural customs and traditions of the country. In a modern swiftly changing world people and cultures are circulating and interacting as at a really dizzying speed. Those people who know how to use language and how to communicate effectively across cultures have a crucial advantage over others. (Managing Communication) Language in cross-cultural communication is aimed at preserving the traditions of ancient cultures as well as existing ones. For example, it is necessary to mention the kabary dialect based on â€Å"unhurried telling of ancestral proverbs, metaphors, and riddles, frequently in a dialogue using call and response†. Kabary is a form of traditional Malagasy oratory and it is seen that oral language may be the only way for some populations to preserve their cultural traditions. In this case language represents different manners of speech and increases literacy rate. Kabary is an important element in communication during ritual events. However, it is still used in regular, day-to-day talk. Although kabary is spoken solely in the Malagasy language, learning their language will help to understand their culture better and to break misunderstandings and misinterpretations of the cultural customs. (Harman 2002) Nevertheless there are also negative moments connected with language and cross-cultural communication. Although developing of international slang may make the process of cross-cultural communication easier, many countries prefer to stomp out foreign slang considering it â€Å"steals† originality of the native language. For example, Russian government thinks that introducing of international slang, especially English words, may result in serious corrupting their native language. However, the language in communication makes people understand better and introducing of international words may be considered a right action. The negative moment is that very often such international elements can replace native words or even may have no equivalents. For example, lexical interlopers are something new to Russian language: democratic politics, business, banking, holding, etc. and such words as broker, sponsor, chizburger, fax have no equal equivalents in Russian language. (Weir 2002) Language has to be preserved as it is the embodiment of human vision and language varieties are able to provide unparalleled insights into the process of cross-cultural communication. Language is human experience and perception exposed to be the main tool across cultures. (Thucus-Dubrow 2002) References Managing Communications. (1996, August). Peace Watch, 2, 5, 1-2. Thucus-Dubrow, Rebecca. (2002, April 25). World’s Languages Are Fast Disappearing. Retrieved September, 22, from http://www. globalpolicy. org/globaliz/cultural/2002/0425fast. htm Harman, Danna. (2002, May 9). In Kabary the Point is to Avoid the Point. Retrieved September, 22, from http://www. csmonitor. com/2002/0509/p01s04-woaf. html Weir, Fred. (2002, June 4). Russian Lawmakers Try to Stomp out Foreign Slang. Retrieved September, 22, from http://www. csmonitor. com/2002/0604/p14s01-lepr. html