The Great Depression Essay Example for Free

The Great Depression Essay A large amount of literature including research and text books, exist on the subject of the Great Depression. It is considered by many economists as the worst economic crisis in American History. Statistics suggest that from the business cycle peak in 1929 to the trough in 1933, the real Gross Domestic Product (GDP) contracted by 39%. From 1929 to 1933, the unemployment rate rose from 3. 2% to 25% any may who had jobs were only able to work part-time. By 1933, 50% of American banks had failed. From 1929 to 1933, the consumer price index (CPI) fell by -25%. The Dow Jones industrial average fell -89. 2% between September 1929 and March 1933. Net investment was negative from 1931 to 1935 and the economy experienced a sharp decline in aggregate real income, then there were massive defaults and bankruptcies by business and households (Bernanke. S, 2004, White, 2009). But what caused the great depression? Or rather, why did the recession of 1929 turn into a depression? Calomiris (1983) remarks there is still very little consensus amongst economist on this question. Before Maynard Keynes (1936) General Theory of Employment, Interest and Money, economist relied on the Classical approach both to manage and explain the Great Depression. However, the classical theory could not explain a lot of the data at the time; for instance, it could not explain the protracted unemployment (Keynes, 1936). This signified the need for a new theory of macroeconomics. Such a theory was provided by Keynes. The essence of Keynes theory is contained in the simple aggregate demand model. Keynes identified the collapse of the growth in the 1920s as part of the problem. In his opinion, the collapse of growth led to a reduction in investment opportunities and a downward shift in investment demand. The unprecedented levels of unemployment could also be explained by the collapse of aggregate spending. Keynes along with Irvin Fischer (1933) also identified the financial markets as important sources and propagators of economic decline during the Great Depression (Calomoris, 1983). However, the exact nature of this connection is still a hot topic of debate, and this is where much of the literature on the great depression can be found. According to Keynes theory of aggregate demand, monetary policy had no causal role in the Great Depression (Mishkin, 2007). Mishkin (2007 p 588) argues that this assumption was based on three pieces of evidence. He states that during the Great Depression; interest rates on U. S treasury securities were extremely low (Below 1%). To the early Keynesians, the low nominal interest rate meant that the monetary policy was easy – expansionary (Hamilton, 1987). The second assumption was underpinned by the lack of empirical evidence on the co-movement between nominal interest rates and investments spending. While the third assumption was based on the fact that surveys by macroeconomists carried on businessmen indicated that their decision to invest was not influenced by market interest rates (Mishkin, 2007). In 1963, Friedman and Schwartz published the Monetary History of the United States in which they outlined a theory implicating money supply as the major cause of the Great Depression. In their opinion, what transformed the recession of 1929 into a depression were the imprudent policies by the Federal Reserve, which led to the stock market crash; and to the waves of banking failures which reduced the money multiplier and the money stock (Bernanke, 1983a; Friedman and Swartz, 1963). The figure 1 below shows the close correlation between GDP and the money stock. Friedman and Swartz countered the Keynesians argument that interest rates on U. S. treasury securities and high grade corporate bonds were low was countered by the observation that interest rates on lower grade bonds rose radically during the peak of contraction (between 1930-1933) this indicated that monetary policy was tight (Mishkin, 2007). The second reason why the Keynesian assumptions were regarded as misleading on the question of the tightness of the monetary policy during the depression was that; in a period of deflation; the important interest-rate transmission mechanism is through the real interest rate and not the nominal interest rate, hence low nominal interest rates do not necessarily mean that cost of borrowing is low and that monetary policy is easy since public expectation of a reduction in price levels can increase real interest rates (Hiuzinga, 1986; Summers, 1984). A good example of how the real-nominal interest rate relationship affected the U. S. economy during the Great Depression was seen in the housing sector. Wheelock reports that even though the nominal value of mortgage dept peaked in 1930, deflation caused a rise in the real value of outstanding mortgage dept up to 1832. Thus the outstanding mortgage dept burden increased sharply during the contraction phase of the depression (Wheelock, 2008). Researchers also criticized the use of Structural Model evidence by Keynesians. Mishkin (2007) argues that the quality of this type of evidence is dictated by the goodness of the model used. Friedman and Swartz narrative on the Great depression was that the original trigger of the Great Depression was the, 1928, Federal Reserve attempt to contain inflated share prices at Wall Street which they attributed to speculative activity. To accomplish this, they raised the policy interest rate. This depressed interest-sensitive spending in areas such as construction and Motor industry. This in turn induced a drop in production and investments, which led to reduced hiring of workers by companies. The tightening of the monetary policy through the recession which begun in August 1929 precipitated the October 1929, stock market crash (Hamilton, 1987, Bernanke, 2002b). The stock market crash eroded the nation’s accumulated savings, leading to a reduction in aggregate demand. From 1930, the contracting economy triggered successive waves of widespread banking panics (Calomiris etal, 2003; Hamilton, 1987; Chandler, 1970). Bank failures and hoarding of cash increased both the currency deposit ratio and the reserve – deposit hence a decline in money stock; this added to the deflationary pressures (Bernanke, 2007b; White, 1984). They asserted that â€Å"failure by the Fed to reverse the decline in money stock with open market operations and loans to banks through discount windows added further pressure to the economy (Friedman, 1963). † According to them, the 1937 -1938 recession was triggered by the Fed’s attempt to stimulate lending by doubling of the required reserve – ratio, this had the opposite effect. Mishkin (2007) writes that the importance of this theory to most economists is that it opened a whole new connection between the financial sector and the macroeconomy. Another important contribution was that it suggested new research agenda; Calomiris (1993) summarized them thus: 1) Can the reduction in money stocks from 1930 to 1933 explain the bank failures or did they have a separate origin? 2) Was the demand for money stable given the low nominal short term interests rates in the 1930s or was there a liquidity trap 3) Could nominal price and wage rigidity offer an adequate explanation for the persistent stagnation during the 1930s? 4) Were policy failures by the Fed actions acts of omission or commission or did they represent the application of the old classical theories to new circumstances? 5) Were open market operations by the Fed, unaccompanied by reforms in the monetary and bank regulations, sufficient in reversing the 1930-1933 stagnation? Following the publication of the Monetary History, economist focused either on confirming Friedman and Swartz assertions or in researching the implications of their findings. For two decades, the focus was mainly on the first three questions. Unfortunately, economists restricted there inquiries within the framework of the sticky-price, IS-LM paradigm. This approach severely limited the search for alternative transmission mechanisms between financial markets and the macroeconomy (Bernanke, 1983). Support for the Monetarist theory has come from formal statistical tests which examined the correlations between money and aggregate spending (Mishkin, 2007) a number of researchers found that there was no liquidity trap during the 30s; therefore, money supply shocks could have had an important effect on aggregate output (Meltzer, 1963; Temin, 1989). Field argued that the pre-depression stock market boom increased money demand and that this was not offset by corresponding increase in money supply. This resulted in increases in the interest rates and in deflation (Field, 1984). Evidence corroborating Friedman-Swartz illiquidity hypothesis as the trigger of the bank failures came from data on bank suspensions aggregated at national or regional level, this data show a correlation between bank failures and turning points in indices of industrial production, the money supply, the money multiplier, interest rate, and deflation rate (Friedman, 1963; Wicker, 1980). According to White (1984, p 138), the first bank failures in the 1930 were not unique; rather, it was a continuation of the banking failures of the 1920s. Recently studies by Calomiris and Joseph (2003) have revealed a strong correlations between the characteristics of banks, the economic environment in which they operated and their chances of survival. The thesis that banks failures were not panic induced, but were a continuation of the bank failures of the 1920s, which were linked to bank overbuilding suggested a lesser role of bank failures as a transmission mechanism. Other critics â€Å"advocated additional exogenous expenditure shocks to explain the cause of the depression noting that the real money stock had not contracted during the early stages of the depression (Temin,1976; Bernanke,1983 ). † At the same time, some scholars argued that the reduction in money stocks during the initial stages of the depression was not large enough to trigger the depression (Meltzer, 2003) In short, economists realized that money shocks alone could not have transformed the recession into a depression. Thus, additional link were needed between the financial markets and the macroeconomy. Bernanke captured it this way in his 1983 research paper: â€Å"One problem is that there is no theory of monetary effect {per se} on the real economy that can explain protracted non neutrality. Another is that the reduction of money supply in the period seems quantitatively insufficient to explain the subsequent fall in output (Bernanke, 1983, p257)† The new paradigm shift came with the application of theoretical models of credit allocation under asymmetric information in imperfect markets to the Great Depression. Mishkin was the first to apply this model in his study of the impact of changes in household balance sheet and consumer spending during the Great Depression (Mishkin, 1978). He argued that â€Å"in the 1930s, the depressive effect of aggregate wealth reduction on consumption was compounded by the dept deflation which in turn reduced aggregate consumption demand. Using empirical evidence, Bernanke research suggests that the efficiency of credit allocation was reduced under imperfect market conditions of the 1930s and that aggregate demand was reduced by the resulting higher cost and reduced availability of credit (Bernanke, 1983). This process, in his opinion, can account for he protracted length of the great depression. Taken together, this new paradigm was not a rejection of Friedman and Swartz thesis, it merely showed that the monetary shock and other events in the early phase of the Depression prolonged the Depression through there effect on the institutional structure of the credit markets and the balance sheet of borrowers (White, 1984; Romer,1989). In short, macroeconomists have concluded that the tendency of banks to respond to deposit outflows and increased risk of loan defaults by freezing credit can aggravate recessions, magnifying declines in investment, production and asset prices (Calomiris, 2008) The focus on deflation and financial collapse throughout the world also suggested ways through which the depression was channeled to other countries. Currently, economists agree that the gold standard played an important role in transmitting the economic decline in America to the rest of the world (Campa, 1990; Bernanke, 2002b) under the gold standard; trade imbalances gave rise to international gold flows. In his analysis of international transmission of the American Depression, Kindleberger reasoned that that the stock market collapse and deflationary shocks triggered a liquidity squeeze, a reduction in bank lending and the international financial collapse of the 1930s i. e. the lack of access to credit forced less-developed countries to use up their gold and foreign exchange reserves; this forced them to sell old quantities of primary products at reduced prices (Kindleberger, 1973). He also noted that the depression was more protracted in countries which stuck to the gold standard The countries that abandoned gold pursued independent monetary policy and were able to rebound faster. International studies correlating adherence to the gold standard, deflation and continued economic decline have confirmed this argument (Bernanke and James, 1991; Eichengreen, 1992). Economists also believe that the enactment of The Smoot-Hawley Tariff which was supposed to protect American Farmers triggered a counterproductive wave of protectionist measures around the world, which worsened the depression (Draghi, 2009; Hamilton, 1987, Meltzer, 1963) Although most of these debates occurred after the Great Depression, scholars now agree that both inept fiscal and monetary policies transformed a normal business cycle into a depression. Since monetary contraction was part of the problem during the Depression. Currency devaluation and monetary expansions had to play a leading role in the recovery process. A number of commentators have shown that the American money supply increased by 42% between 1933 and 1937 and worldwide monetary expansion led to a lowering of interest rates and easy access to credit (Mishkin, 1991). Economists argue that since fiscal expansion can reduce expectation of deflation, they can reduce the cost of borrowing (Romer, 2009). Keynes theory that government spending, tax cuts, and monetary expansion are essential in countering recession can also be justified in light of historical evidence. Economists reason that the massive government spending, such as the New deal program {specifically Work Progress Administration (WPA) and Agricultural Adjustment Administration (AAA)} reignited the economy (Calomiris and Mason 2003, Romer 1989, Temin 1989). In fact, the general consensus among scholars is that the economy â€Å"American economy began to recover with a new monetary expansion and spending in preparation for war (White, 2009b). † Concerning Banking sector reform, the view on the Bank Holiday is that it was a dramatic and effective remedy. The other reforms have also drawn support from Great Depression scholars (Blinder, 2008; Gapper, 2007; White, 2009b). These reforms saw the creation of a number of regulations and institutions, Banking Act of 1933 (commonly known as Glass Steagall Act) – the act prohibited commercial banks from underwriting of dealing in corporate securities. Insurance of bank deposits by FDIC was designed to prevent depression type bank runs. SEC regulated investment and Federal Home Loan Bank (FHLB) guaranteed Residential mortgage loans. Collectively, scholars now believe that these regulations insulated America’s banking system from the booms and busts of the financial markets (Russell, 2008). Bernanke (1983 p2) â€Å"argues that only with the rehabilitation of the financial system in 1933-35 did the economy begin its slow emergence from the Great Depression. † The 2007 Economic recession The economic literature on the current recession is still limited, however adequate amount of literature exist on the impact of the down turn on the U. S. economy. The Economic Report of the President Jan, 2009 gives a comprehensive coverage of how the recession started; where it started and what is to be done. A large amount of literature can also be found on the causes of the crisis. among others. In terms of impact, the reports from the Bureau of Economic Analysis (BEA) indicates that from Dec 2007 to May 2009, America has had 57 bank failures; the unemployment rate has increased to 8. 9%; the economy has declined by – 3. 3% from the second quarter 2008 – first quarter of 2009; from Sept 2008 to may 2009, the federal government has increased the money stock by 125% and over the same period the biggest fall in the Dow Jones industrial stands at -53. 8%. The outlook is equally dire; most analysts have predicted a recession that may last up to two years (Roubini, 2009) Moody’s Investors Services (MIS), while further job losses are also expected have predicted increased foreclosures, while further job losses are also expected. But the impact has not been limited to America. The International Monetary Funds (IMF) World Economic Outlook published in Jan 2009 painted a bleak picture of the world economy in general: They predict that the real global growth will be close to zero; in the same report, growth in advanced world economies was projected at -2%. In his report, presented to the V Symposium on International Trade (Feb 20, 2009) Cline reported that the economic crisis in America has triggered a highly synchronized global recession, which has seen a contraction in all economies (see the Graph below showing global growth over 3 decades (Cline, 2009). Figure, 3 Showing the Synchronization of Global Recession Taken together, commentators are unanimous that, in term of severity, this recession is still mild vis-a-vis The Great Depression. Shiller (2009) writes that a lot of the upheavals in the economy have not been seen since the Great Depression. He cites the stock market volatility, the bank failures, the housing bust, the breakdown in intermediation, and the near zero interest rate. Besides the statistical comparisons, the current debate and research effort is focused on how the how the crisis started. The proximate consensus is that: the mortgage security backed housing boom in America it to blame and that the origination and distributions of this paper assets is at the heart of the problem (Markus; 2008; Grotty, 2009; Bernanke, 2009; Gapper, 2009) at the same time, researchers maintain that the crisis in the banking sector, was not independent, but resulted from distortions and incentives created by past policy actions. Blundell-Wignall, etal (2009), in there paper presented at a Reserve bank of Australia conference, averred that the current financial crisis is caused by global macro policies affecting liquidity and by very poor regulatory frame work. More specifically, economists recognize that any theory of causality, must, among other things, explain how the housing boom started, describe the factors behind the explosion of the residential mortgage backed securities (RMBS), how the banking crisis was triggered and the policy distortions that made it possible (Tett, 2007; Rajan 2009; Grotty, 2009). The findings of a number of researchers who have studied the causes of the current financial crisis in America conclude that the policy distortions started with gradual undermining of the Glass Steagall Act, from the 1980s; and the rise of the neo-classical theory of free markets (which advocates markets deregulation) Shiller (2005, p 43) argues that business cycles in the financial markets would not have been a major problem had banks been kept off the asset markets. The same argument is advanced by Summers (2008) who asserts that the deregulations in the banking sector exposed the banks to the bubbles and bursts of asset markets. Wray (2009) traces the poor regulatory framework in the U. S to the New Financial Architecture (NFA) which he claims is represented by a globally networked system of giant bank conglomerates and shadow banking system of investment bank, hedge funds and bank created special investment vehicles (SIV). In short, most scholars agree that the Riegle-Neal interstate banking and Branching efficiency Act of 1994 and the repeal of Glass Steagall Act in 1999 through the Gramm-Leach-Bliley Financial Act played a crucial role in laying the foundation which led to this crisis (Mishkin, 2009, p 268; Grotty, 2009). Atkinson, Wigall, and Lee (2009) have also concluded that the Basel II accord on international bank regulation also opened an arbitrage opportunity for banks which led to the acceleration of off-balance-sheet activities. In the same paper, they claim that SEC 2004 decision to allow investment banks to manage there own risk was a major policy blunder. Soros puts it this way. â€Å"Since 1980, regulations have been progressively relaxed until they have practically disappeared. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦authorities could no longer calculate their risks and started relying on the risk management methods of the banks themselves (Soros 2008)† At the same time, scholars have concluded that the other root cause of the problem is traceable to the easy availability of credit. Diamond, etal (2009, p 615) argue that the policies affecting liquidity availed a lot of funds to the banks. The 1% federal interest rate, the % interest rate in Japan, the fixed exchange rate in china and large reserves of sovereign wealth funds are listed in his paper as sources of cheap credit which fueled the economic boom in America led to an inflation of prices around the world. The claims that interest rates were low are supported by statistics which indicates that real short term interest rates were negative from mid 2001 to mid 2005, given the modest values of inflation (Yellen, 2008) The low interest rates, in turn, ignited a housing boom. Fig, 3 shows the Case-Shiller house index from 2000-2008. According to Grauwe (2009), the doubling of US house prices from 2000-2006 was not underpinned by real changes in the U. S economy. In the same survey, he reports that between July 2006 and July 2007 the value of Dow Jones and the SP 500 rose by 30% while GDP increased only by 5%. Taken together, researchers have concluded that the collapse of the real estate market in 2006 was the origin of the crisis. The rising foreclosures turned the credit boom into a bust. however, economist have at the same time stated that the severity of the housing market bust has been compound by the weakness inherent in the financial system (Calomiris, 2008; Rajan; 2009; Bookstabber, 2007) namely; use of bank deposits for speculative activities- this operation was made possible though special investment vehicles (SIV) sometimes called shadow banking; new financial innovations – derivative products like Credit Defaults Swaps (CDS) and Collateral Dept Obligations (CDO): they have been described as complex and overly opaque; failure of rating agencies to properly calculate the risks embedded in this instrument; and failures by regulators and supervisors. Some have added that the formulas used to compute the level of risk in this instrument was questionable and that the development of riskier higher order CDOs tended to magnify the systemic risk (Volcker, 2008; Veneroso, 2007; Soros, 2007; Rajan 2009 b). Sorros (2008) argues that the new types of mortgage-backed securities central to the boom were too complex and opaque to be priced correctly. Grotty (2009 p 40) also argues that these instruments encouraged fraud since most investors did not even know what they were buying. That when the risk inherent in these products became apparent in 2007, investors pulled back from structured products in general, banks had to re-absorb the losses incurred by their off balance entities – SIV, straining there balance sheets in the process. Moral hazard problems and adverse selection worsened with time lending to a credit freeze which led to a slow down in economic activities around the world (Mishkin, 2007, Folkman etal, 2007; Dornbusch etal, 2000) Concerning solutions, most policy makers agree that to reverse the recession, there is need for closely coordinated intervention at global level and that efforts must focus simultaneously on fiscal, monetary and financial stability policies. The underlying assumption is that restoring confidence in the prospects for employment and income and returning to balanced growth are the only way out of the recession (Draghi, 2009). Strong expansionary fiscal policies, with measures to support demand and safeguard banking and financial system have been instituted throughout the western world. The $ 800 billion dollar stimulus plans in America has been seen as bold policy initiative, although many economist are worried about its repercussion on the national dept. The proponents of this plan see it as the best way to either create jobs or prevent job losses (Romer, 2009). At the same time, most central banks around the world have rapidly lowered there interest rates. Draghi (2009) argues that in the initial stages of a crisis, rapid disinflation should not be allowed to turn into a deflation. To keep the banks afloat, central banks have injected large quantities of money into the system; in some instances, they have bought corporate dept to keep financial institution afloat. Russell (2009) notes that reactivating financial intermediation is also essential since capital requirements cannot be satisfied by the state alone. To achieve this goal, economists agree on three basics steps. The need to guarantee liabilities to stop bank runs; taking the banks through a stress test to identify the banks with solvency problems and ring-fencing the problematic securities or transferring them to separate entities such as bad banks followed by recapitalization (Wheelock, 2009; White, 2009, Draghi, 2009) are possible ways of unfreezing bank lending. At the same time, economists agree that a solution to the housing crisis is necessary. Lastly economists have pointed out that there is a need to reform securitization, credit rating agencies, poor risk modeling and underwriting standards, as well as corporate governance lapses (Krugnall etal, 2008). Some economist has also concluded that massive failure in corporate governance in some companies reflects poor incentive structures for decision, thus bank reforms should be extended to corporate remuneration practices (White, 2009; Blinder, 2008, Crotty, 2009) Reference Bekaert, G, Harvey, C. R. , 2005, â€Å"Market Integration and Contagion,† Journal of Business, Vol. 78, (No. 1), pp. 39–96. Bernanke, B. S. , 1983. Nonmonetary effects of the financial crisis in the propagation of the great depression. American Economic Review 73, 257–276. Bernanke, Ben (2002). On Milton Friedmans Ninetieth Birthday, at the Conference to Honor Milton Friedman, University of Chicago, Chicago, Illinois, November 8. www. federalreserve. gov. (accessed on May, 10, 2009) Blinder, Alan, 2008. What Created This Monster? , New York Times, 23. Bookstabber, R. , 2007. The next financial crisis starts here, Financial Times, August 23. Calomiris, W. C. , Mason, J. R. , 2003. Fundamentals, panics, and bank distress during the depression. American Economic Review 93 (5), 1615–1646. Calomiris, C. W. , Financial Factors in the Great Depression. The Journal of Economics Perspectives, Vol 7 (2) pp 61-85.

Advantages Of Human Resource Planning Business Essay

Advantages Of Human Resource Planning Business Essay Human resource planning is really important that without this all planning will finally end up as a mere guess work. Even if the predictions or forecast is not always successful, it is still needed because the forecasts can be quite useful which will give a basis. Upon this basis it is able to avoid ad hoc problems to an extent. Therefore human resource planning should be articulated along with the organisational planning. A dearth of particular category of employee or particular kind skills will affect the organisation in achieving its goals. Rapid changes in technology, marketing, management etc., will result in need of particular category an skilled persons. Changes within an organization in its design and structure will affect manpower demand. Demographic changes like the altering profile of the manpower in terms of age, sex, education etc. The Government policies in regard to reservation, child labour, working conditions etc. Different labour laws affecting the demand and supply of labour. Pressure from trade unions, politicians etc. Advantages of Human Resource Planning: Human Resources Planning (HRP) expects not just the needed quality and quantity of employees instead decide the accomplish plan for all the occasions of human resource management .The major advantages of Human resource planning are: It assures the corporate plan of the firm. The HRP elucidates doubts and alters to the upper limit potential and enables the organization to have right kind of people at right time in right place. It allows background for progress and growth of employees through training, development etc. It aids in anticipating the cost of salary increasing, improved benefits etc. It also helps to predict the cost of pay offs, incentives and all other cost of human resources which facilitates the formulation of budgets in an organization. To forecast the changes in abilities, aptitude and attitude of personnel. It results in the advancement of different origins of human resources to encounter the organizational goals and objectives. It also aids in taking measures to amend human resource shares in the form of enhanced output ,business turnover etc It facilities the control of all the functions, operations, contribution and cost of human resources Planning as an organisational business strategy: Planning process in a strategic way is often accomplished by networking with in and outside the organisation. The focus is therefore on strengthening the networking with the internal human resource professionals and external human resource persons which will be rooted in sharing information, technology, tools necessary for planning and development of personnel. The outcome depends on effective implementation of the developed tools and resources needed. Out of these a sustainable and feasible strategy has to be formulated. The most important thing to be noted here is that the strategy formulated should be articulated with the overall business strategy of the organisation. For this they will consult different human resource managers and all the line managers in the organisation. In order to ensure highest possible utilization of the tools they will work in close conjunction with the managers. This will be aimed in creating a sound personnel data base and tools for the line managers. Long term planning for success in short term: Though long term planning is advised the daily operational pressures would cause the long term planning to give way to short term planning. This might cause the plans ultimately to be less successful. It can be very expensive too. Quite lot of lead time is needed for recruiting, developing talented personnel. This will require long term economic plans. For a successful planning, all the factors need to be interconnected. The impact of short term planning will be to rely on current work force for all the organisational activities. But so as to achieve long term goals of an organisation it must have some changes made in the current human resources. It should be able to foresee the future needs of the organisation even in worst external scenario. Now the focus has been shifted from long range planning to strategic planning. What long range means is to predict for a particular time in future the amount of demand of an organisations services and to analyse in what area that demand will occur in future. This is often used to determine the demand in certain situations like expansion, adding of more services to the existing situation, capital needs etc. But later when the industries became volatile and the external scenario became dynamic the long range planning was replaced by strategic planning. The idea behind long range planning is that the firm will continue its rendering of services so as to match with its demand. But the idea underlying behind the strategic planning is that there are lot of economic, social, political, technological and competitive changes happening. By understanding all these changes to analyse whether the organisation will be able to provide services that would meet these challenges or whether it should m ove to further new services and products. Though it will take considerable time to evolve a strategy, time span is not the important focus here. It might even take generations to evolve and implement a strategy. Therefore it is better to use long term and short term to describe the time that it will take for a strategy to implement. CHAPTER 2 Literature Review: Human beings are the most important assets in hospitals. Machines and other equipments which are integral parts of delivering health care require the human touch, expertise, and commitment for their full utilization and application in delivery of health care. Therefore planning of human resources is the key to any health care provision. The objective of human resource (HR) policy is to attract, recruit, retain and develop competent personnel and Create a continuously learning health care organisation. (B.Ray) Human resource planning is the projection of the number of people required and the type of people in terms of skill mix required for the organisation so as to achieve the desired goals and objectives of the organisation. This means that human resource planning is an important add on to the strategic plans. But evidence shows that the connecting bridge between human resource planning and strategic management is not stressed in practice (Baird et al.1983, De sancto-1983; Ohan Rynes-1983). Reason to this non utilisation is found in focus of human resource planning literature. Almost all the research focuses on human resource supply and demand forecasting (Zedeck Casci-1984). Extra care may be taken in developing a statistical model of manpower planning, but little care is given to gaining managerial acceptance of such plans. Thus there exist a huge gap between available techniques and their use because important organisational realities are not projected in to the models (Zedeck Casc io,1984) Rapid environmental change, globalization, innovations to provide competitive products and services, changing customer and investor demands have become the standard backdrop for organizations. To compete effectively, firms must constantly improve their performance by reducing costs, enhancing quality, and differentiating their products and services. To improve firm performance and create firm competitive advantage, HR should focus on better and new set of priorities. These newly set priorities should be more organisational, business and strategic oriented and less focussed towards old traditional HR functions like staffing, training, appraisal and compensation. Business strategic priorities include team-based job designs, flexible workforces, quality improvement practices, employee empowerment and incentive compensation (Jing and Huang 2005). SHRM was designed to diagnose firm strategic needs and planned talent development which is required to implement a competitive strategy and achieve operational goals (Huselid et al., 1997). Apart from report proof on the strategic importance of human resource planning, studies of organisation practices give an indication of its arousing grandness for strategic applications. A study interviewed human resource executives from 137 companies to describe the reasons why their companies were following human resource forecasting, which an important part of human resource is planning. The most important three reasons were for bringing up their human resources (77.6 percent), for avoiding personnel shortages (73.1 percent), and to collect information for decisions (73.1 percent). Another set of reasons for human resource forecasting included the following: optimistic action efforts (63.6 percent), budgeting (62.1 percent), and career planning (59.7 percent)

The Political Economic Social Cultural And Technological Environment Marketing Essay

The Political Economic Social Cultural And Technological Environment Marketing Essay It is important for these reasons: By making effective use of PEST Analysis, you ensure that what you are doing is aligned positively with the forces of change that are affecting our world. By taking advantage of change, you are much more likely to be successful than if your activities oppose it. Good use of PEST Analysis helps you avoid taking action that is condemned to failure for reasons beyond your control. PEST is useful when you start operating in a new country or region. Use of PEST Analysis helps you break free of unconscious assumptions, and helps you quickly adapt to the realities of the new environment. (http://www.mindtools.com/pages/article/newTMC_09.htm) Our mission: to inspire and nurture the human spirit one person, one cup and one neighborhood at a time. Starbucks Objective †¢ to establish Starbucks as the most recognized and respected brand in the world. Business Ethics and Compliance is a program that supports Our Starbucks Mission and helps protect our culture and our reputation by providing resources that help partners make ethical decisions at work. The program develops and distributes awareness materials, including the  Standards of Business Conduct; facilitates legal compliance and ethics training; investigates sensitive issues such as potential conflicts of interest; and provides additional channels for partners to voice concerns. Partners are encouraged to report all types of issues or concerns to the program through their choice of the offered  communication channels. PESTLE stands for: Political The current and potential influences from political pressures Economic The local, national and world economy impact Social The ways in which changes in society affect us Technological How new and emerging technology affects our business? Legal How local, national and world legislation affects us Environmental The local, national and world environmental issues The PESTLE analysis will be used to identify and understand the important factors Starbucks must consider in all areas of the business. Political: * Taxation policy high taxation imposed on farmers in those countries producing the coffee bean will usually mean Starbucks pay a higher price for the coffee they  purchase. Any fluctuations in taxation levels in the industry are almost certainly ultimately passed on to the consumer. Recently (June 13, 2003) Tanzanias Minister of  Finance harmonized and rationalized local government taxation to boost rural  productivity of the coffee bean. Tax was lowered for these small holder farmers and this saving will have been passed on to purchasers of coffee like Starbucks. * Deregulation A decade ago, the USA pulled out of the ICA (international Coffee Agreement) that set export quotas for producing nations and kept the price of coffee fairly stable. Coffee quotas and price controls ended. Since the deregulation farmer shave suffered and their earnings have dropped. Many have struggled to make a living so have given up. * International trade regulations/tariffs Trade issues will affect Starbucks  predominantly when exporting and importing goods. When another countrys government imposes a tariff it not only results in an efficiency loss for Starbucks but large income transfers can become inconsistent with equity. This extra charge can turn a bargain into a rip-off. Also, since 9/11, trade relations have been adversely affected  between the USA and some other countries. * Government stability Starbucks should thoroughly investigate the political stability of any country they plan to expand to. Changes in government can lead to changes in taxation and legislation. The forthcoming American elections may have an effect on Starbucks as new legislation or new or existing government may bring in taxes. Also, those countries in political turmoil or civil war (e.g. Zimbabwe at present) should be approached with great caution when considering new ventures. * International stability The international economy must be brought into consideration as it can affect Starbucks sales and markets. The aftermath of 9/11 was an example of an economic downturn that affected the world market. If the world market is in a slump it is not usually the ideal time for a business to look at grand expansion. * Employment law A reduction in licensing and permit costs in those countries  producing the coffee bean for Starbucks would lower production costs for farmers. This saving would in turn be passed on to the purchaser. Economic: * Interest rates A rise in interest rates means investment and expansion plans are put-off resulting in falling sales for Starbucks and their suppliers. Also mortgage repayments rise so consumers have less disposable income to spend on luxury  products such as coffee. Low interest rates should have the opposite effect. * Economic Growth If growth is low in the nation of location of Starbucks then sales may also fall. Consumer incomes tend to fall in periods of negative growth leaving less disposable income. Consumer confidence in products can also fall if the economic mood is low * Inflation rates Inflation is a condition of increasing prices. It is measured using the Retail Price Index (RPI) in the UK. Business costs will rise for Starbucks through inflation, as will shoe-leather costs as they shop around for new best prices of  materials, menu costs will rise as Starbucks have to create new price lists. Also, uncertainty is created when making decisions not least because inflation redistributes money from lenders to borrowers. A firm that borrows L1000 during an inflation  period will pay back less in real terms as the value of this money will decline over  the period. * Competitors pricing Competitive pricing from competitors can start a price war for  Starbucks that can drive down profits and profit margins as they attempt to increase, or at least maintain, their share of the market. * Globalization Globalization of the coffee market has meant farmers of the bean now earn less money than they used to. This can result in a decrease of people willing to do it for a living, which will mean a decrease in coffee produced, resulting in a drop in Starbucks supply levels and probably profits. * Exchange rates Starbucks are affected by exchange rates when dealing with international trade. If the value of the currency falls in the country of a coffee supplier  this enables Starbucks to get more for their $ or L when importing the goods to their  country. This saving can be passed along to the customer. Exchange rates are forever  changing throughout the world in todays market. Social: * Population demographics Population demographics are a very important factor for  Starbucks as they identify what parts of the population they need to aim their product sat or which parts of the population they need to encourage to visit their stores more than they presently do. Looking at the table in the case study demonstrating the  percentage of the age groups that drink coffee or specialty coffee it can be seen that the age groups that Starbucks should be aiming their marketing at are the people  between 35 and 54. They should consider targeting the 18-24 age group as they drink  the least amount comparatively and by encouraging this segment to choose Starbucks coffee now, there is a chance they may continue to drink it long into the future. * Income distribution Where income is distributed is another factor that Starbucks should look at as this also demonstrates the ideal place to aim their marketing or to locate their stores. Coffee is more of a luxury product so it is those people/places with the most amount of disposable income to spend that should be targeted the most intensely. * Attitude to work Starbucks would not want to locate to an area where the local  population have a poor attitude to work. Recruitment would be difficult, training arduous, and staff turnover would be high. Attitudes to work are important in other  ways. A large number of workers in large cities now go out for their lunch rather than use an internal canteen. Starbucks can use this to their advantage and promote the shop as a place where people can meet up and so it will mean that they will get larger amount of people in their stores at this time of the day. * Standard of education/skills When Starbucks are deciding upon new premises they must look at the standards of education and skills locally. They must be sure there are  people who live there with sufficient skills to ensure successful operation of the  business, or at least the potential to learn that comes with a good education. * Working conditions/safety Those people with the most disposable income, e.g. young single professionals etc, will be accustomed to high standards. Starbucks must ensure its shops are clean and comfortable, service is of the highest order and health and safety issues are fully addressed * Location Transport needs to the premises must be considered for both staff and customers. Easy access is vital to ensure there is no excuse for staff to arrive late or  for customers not to visit. * Age distribution Research shows the average age of the population is getting older  and birth rates are stagnating. Starbucks is presently aiming its product at young  people but maybe these views will change in the long-term as the market proportion for young people diminishes. The most profitable way forward may be to widen their  target market despite the risk of alienating present customers. * Health consciousness Good health and foodstuffs associated with healthy living are important I todays market place, as this is a trend that is occurring at the moment in western societies. Starbucks can use this information when deciding the additional  products to sell, as well as coffee, as a large number of their customers are looking for  healthy alternatives to cakes and biscuits, which have been associated with coffee in the past. Technological: * IT development Starbucks is always looking to develop and improve its Internet facilities. Starbucks launched its first-generation e-commerce Web site in 1998. In late1999, Starbucks decided the site needed a major upgrade to enable new functionality and prepare for long-term growth. To achieve these goals, Starbucks upgraded to Microsoft Commerce Server 2000, one of the key Microsoft .NET Enterprise Servers. As a result, scalability and performance have improved, and the company now has the tools it needs to profile and target customers, analyze site data, and deliver new features to the market in the shortest time possible. * New materials and processes Developments in the technology of coffee making machines and the computers that Starbucks use to run their cash registers will enable their staff to work more quickly and efficiently. This will result in customers being served quicker and create the potential to serve more customers in a day. This will  prevent customers from having to wait around for long periods thus improving customer relations along with increasing the customer base. * Software upgrades In the short-term, Starbucks must identify the most efficient software upgrades to use to keep up with the competition. This applies to the improving the accessibility of their website (www.starbucks.com) and also improving the speed and quality of the service provided on the shop floor.* Research and Development activity As a multi-national business empire, Starbucks has the budget and the resources to have a cutting-edge R+D department. The websites very accessible, the facilities are state of the art but more importantly new ideas are consistently being tried in terms of a constantly updating menu.* Rate of technological change The rate of technological change in the current world market is high, much higher than, say, thirty years ago. Much of this is down to the Internet and the speed with which information can be communicated around the globe. Starbucks will need to invest heavily just to stand still in their ever expanding and developing market, and even more so to try to stay ahead of competitors. Legal: * Trade and product restrictions Starbucks need to be aware of the trade laws in the various countries they occupy and do business with. They need to ensure they are not in violation of e.g., religious laws. Also, certain countries impose a tariff that has to be  paid when goods are imported/ exported so this must be taken into account. * Employment law Each country has varying employment laws. Some may have a Sabbath day, some may have a limit on the number of hours an employee may work  per week, all will have varying levels of minimum wage. Starbucks should consider  these factors when deciding on relocation .* Health and Safety regulations Starbucks may find these regulations are not as stringent or well enforced in certain countries. It would be wise though to enforce universally high standard of health and safety throughout all its shops to maintain a good global image and ensure all laws are abided by. Also, by not maintaining high standards they will be liable for a large amount of civil cases as it is a legal requirement for them to enable that their staff and customers are safe when they are in their stores. * Monopolies commission If Starbucks consider expanding their operations further  to control an even larger percentage of the market than they already have they will have to consider the possibility of breaking monopolies legislation as they may have a share of the market that is too large. This would mean that they would have unfair  advantage over other companies in the same market. This would mean that they could  benefit from economies of scale and would also be able to charge prices that were not competitive in the market and get away with it due to the lack of competition. The Competition Commission are in place to try and prevent these situations occurring[e.g. CC (back then the MMC) block BskyB attempted takeover of Manchester United in 1999]. * Land use Starbucks may have to abide by local planning regulations when building shops or altering purchased sites, as certain areas of land may be protected or  unsuitable. All matters would be addressed by the local government. Environmental: * Pollution problems Starbucks customers create a lot of waste as they often leave the shop with their cup of coffee and then dispose of it in the street. The packaging for  this cup must be carefully considered to make it as biologically degradable as  possible. Certain other materials can be very harmful to the natural environment. * Planning permissions Planning permission may not be granted if Starbucks wish to  build in an area that could be harmful to the environment. The land may be protected. * Work disposal Starbucks need to carefully consider the methods in which they dispose of their waste as there are strict laws in most countries to ensure a firm trading in their country disposes of the waste that is created in their business in a specific and efficient way. If they do not follow these laws they may find themselves being sanctioned, which not only affects them financially but also tarnishes the reputation of  the brand name, as most of the waste created will bear the logo of Starbucks. * Environmental pressure groups Starbucks should be aware of the physical and influential power of groups such as Greenpeace and Friends of the Earth. Any violation of animal or environmental rights by a company is usually followed by a swift and attention-drawing protest from one of the groups. Brand image and customer bases are often irreconcilably tarnished due to the actions of these groups

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A good day being crawled up on the couch watching television socializing and stacking. Snacks are great! So just chips, cookies, ice cream especially those Caramel choose. Food is not the easiest thing to understand. Food is much more complicated than just eating it, because many foods can lead to a deadly epidemic called obesity. Obesity, a disease of the 21st-century, is causing millions to die each year because of health issues such as, heart disease and diabetes. "Obesity is defined as having excess body fat"(CDC) obesity is quickly spreading and is very dangerous. Obesity is very different than being overweight. Overweight is just another term for being "fat" were as, obesity means that your body is made up of 30% or more fat. (CDC) "Globesity," The term was first used by World Health Organization meaning obesity is affecting a great portion of the population. W. H.O. Termed the word globesity because obesity has turned into a global epidemic and is very popular. (WHO) The older you get the harder it is to lose weight. As you get older is harder to lose weight because your metabolism slows down.(Allman) When it comes to your Weight, a good way to find out if you are overweight or even obese is your BMI or body mass index. If you BNI is between 25 and 29 you were considered overweight. If your BMI is 30+ then you're considered overweight. (Overweight) Many parents often claim that their kid is not overweight and just has a little baby fat. In fact, babyfat often turned into obesity by second-grade. (Robbins) 27% of America is obese and only 35% of America Holds a normal weight. That leaves an additional 35% of Americans that are overweight. Over 40 million, or one out of three children and teens are overweight or obese. Over ... ... understand is that obesity is a problem of its own. Obesity is classified as a disease! If someone is obese they have a disease and they sooner than later will die! However, like all diseases, obesity can be cured. Type 2 diabetes is one of obesity’s biggest causes, it often times makes people very irritable and is a result of low insulin. Obesity causes heart disease such as heart attack and stroke. this is from lack of cardio-vascular exercise. Obesity also cause bone and joint issues, and the main three are, charcot joint, diabetic hand syndrome and osteoporosis. Walking running and standing are all part of bone and joint issues. Obesity also causes sleep apnea and asthma. Sleep apnea causes you to have trouble breathing when you are sleeping and also causes you to have trouble sleeping. Asthma is the shortage of the breath due to the bronchi of the lungs. (CDC)

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Video games have shaped this country in many ways, in such a way that no other product has even came close. This accomplishment would not have been met if it were not for its many different types games there are for sale. If someone were to ask someone that was from an era where video games were popular and you asked them about games from the old age and the new age, that gien person will either know what you are talking about and/or had the experience to play that game. That is how popular video games are in this country. There are many different types of videos games that consumers can choose from. When someone walks into a video game store, or anywhere that sells video games, they are bombarded with huge selections of games. These games vary from action games, war games, tracing games, and even role- playing games. The list of possible selections could go on and on. But, the three best types of games that have been consistently popular have been the third-person video games, first -person video games, and arcade games. Though there are many different types of video games that are out on the market, each one gives the user its own unique experience. A type of video games that I have had a lot of experience with are first person shooter games. A first person video game makes looks through the perspective of the character. This means that the only object seen is the gun or whatever object the character has in hand. Some examples of this type of game include: Call of Duty, Borderlands, Halo, and many others. Usually, these types of games makes someone feel like they are apart of the story line and really gives a feeling that he/she is right there in the action and gives players a cool outlook on the game while playing. This experien... ...s of the games and have at least played arcade games a few times. This just shows that arcade games are still popular among the children and teen population today, and still very well known and appreciated by the adult population. There are many types of video games out there for the consumer to buy and enjoy in their free time. The types of games that I thought were the most popular were first-person, third-person, and arcade games. These sought- after games have been both popular and popular throughout the world. The consumer can see this by how the demand for these types of games has been constant for a number of years. It is up to the consumer to make up their opinion if a game is good or bad. I believe everyone should give these games a chance, because they are not only the best sellers of this video game era, but are in my opinion the most enjoyable to play.

Effect of Communication Barriers in Organization

Ladies and Gentleman’s, Today, I want to share with you about ‘Effect of Communication Barriers and how to overcome this barriers’. Good communication is very important. Without communication, there is no way to express our thoughts, ideas and feelings. Since we babies and grew up, we learnt more words and study how to communicate with different people, at different times, in different ways. Studying about communication enables us to be good communicators and brings a ways to a good effective communication. Communications have a many definition. What in important, communication needs a sender and a receiver of the message.No matter how, communication can describes as a process which begins when we have a message that want deliver to other person’s, the person’s received the message, react to it and respond our message. That response may lead us to react and give another message (Elizabeth Tierney, 1998). This message must be conveyed through some med ium to the recipient. It is essential that this message must be understood by the recipient in same terms as intended by the sender. There are three (3) types of effective’s communication that we used every day in our lives (Camp & Satterwhite 2002).First is Oral Communication. Oral Communication is the spoken interaction between two or more of people. It’s used as an instant and immediate to conveying and receiving of information. It’s also builds self-esteem for both the audience and the speaker. It includes individuals conversing with each other, be it direct or telephonic conversation. Speeches, presentations, discussions are all forms of oral communication. These recommended when the communication matter is of temporary kind. Face to face communication (meetings, lectures, conferences, interview, etc. is significant so as to build a rapport an trust. According to Camp & Satterwhite (2002), Oral Communication follow ways by Face to Face conversation, meeting , voice mail messages, tele-confering, oral presentation and lastly is public speaking. All these ways can be good communication and it’s most effective when the sender of a message has a good skill to deliver what they want to said. The second types are a Written Communication. It means a representation of a language in a textual medium through the use of a set of signs or symbol (Wikipedia).Written Communication is the way how we interpreted the feeling by some piece of paper. Written Communication can take place via letters, faxes, memos, e-mail, and reports, minute of meeting and new releases. It provides documentation and proof of the exchange of information. It helps in laying down apparent principles, policies and rules for running of an organization Last and not least, any kind of communication not involve the word, it’s called non verbal communication. This is the last types of communication that we use every day.It is communication of feelings, emotions, alti tudes, and thoughts through body movement, gestures, eye contact, etc. Non verbal can include vocal sounds that are no word such as grunt, sigh, and whimpers. Effective communication plays an important role not only in organization but is equally important in our personal life. Effective communication is important at all the levels in an organization. Effective communication goes a long way in passing the correct and the desired information to the recipient and the work is accomplished without errors in a short span on time.Effective communication also nullifies the chances of misunderstandings, conflict and errors which might crop in cases where the message is not clear. But, in the same time, there has a barriers can distract and prevent person’s from paying full attention to the message. It called as ‘Communication Barriers’. Ok, let’s see what that communication barriers, Barriers Communication is an interference or noise that might interfere when comm unication process happen. When I making the research what kind effect of communication barrier, they have lot of barrier can may distract and prevent the receiver from paying full attention to the message.Therefore, on this day, we will be discussing five (5) communication barrier and how to solve this problem. One of communication barriers is Physical interference. Physical interference is external and outside the control of both the speaker and the receiver. It affects the physical transmission of the message. Example a noise disturbances like loud music, the sound of traffic from a busy road, static coming from loud speaker system, or loud drilling from a nearby. Those kind of physical interference will affect the massage that been transferred from speaker to the listener.Let’s have a test to prove that this. Try to get 20 person sitting in the circle near to a radio and give a sentence to the first person â€Å"She swim at the sea shore and find a sea shell†. I con fident that the word after receive by the last person in the group will only â€Å"She swim.. † and the other word will be lost between the root from one person to another. This is a common thing that happened to us every day because of the surrounding and to avoid this thing happen and we have to overcome the problem first.Try to look at the issues here; the massage was not been transfer correctly because of the sound surrounding the group. At any circumstances, the message might be wrongly be delivered because of the music from the radio itself. Human bodies are connecting to each other and were link to our brain. If the ears are hearing something else other than the message that the delivered, the brain will capture something that similar to the massage or will lost in the transmitting. To solve this problem, we have to make sure that there are no interruption or and activity other than the group itself.In our life, if someone are having a discussion that involve two way c ommunication, we have to make sure that we at the place that no other thing can interrupt the conversation between the group. In a corporate organization, they will always having a meeting in a meeting room so that everyone can concentrate to the thing that they discuss and came up with a best solution or result. A second barrier of communication is a Lack of Enthusiasm, Subject Knowledge, Language and Emotion. Many of us are quick feel hopeless and turn away from a situation.This is one of the problems that lead to communication barriers. Do you really believe your organization is better than the competition’s Do you look as confident manager as you say you are? If you don’t have knowledge about your organization, it’s problem to your organization. Why I say so, this is because when you’re don’t have knowledge and experiences, it can hamper to the overall working of an organization. So, to solve this problem, we as a manager must show some enthusi asm like begin paying attention to the types of expressions we use.When everything we do with a smile, a serious or negative message will not happen. Languages play an important role in a joint communication in an organization. When we do a dealing with other country, we must have a requires skill to understand the language of their country. Example this language barrier is, when a country like Malaysia trade with Japan, the problem occurs when the communication dealing. This is because, Japan use their language as a intermediate language. So Malaysian must learn their language to communicate with them other than English to facilitate a transaction.Emotions are obstacles to any communication. If there are negative feelings that arise in the mind of a person, all communications will be interrupted. In an organization, we, as a manager should play an important role in a good relationship with all employees. We must be ready to solve problems that occur between subordinates not with a heavy heart side even with a sense of rational. On my knowledge and experiences, each organization provides performance evaluation for each employee. Every manager must needs to put forward their views on the performance of employees.Problem to this situation is, when manager used their emotion to this views on the performance of employee like dishonesty, jealousy, and other negative feelings, it will affect the progress of performance subordinate staff. These things should not happen in to organization. So, all manager here, please don’t use your emotion when evaluating the performance on your subordinates. The third problem of communication is a Semantic Barrier. Semantic barriers are the misunderstandings meaning of word and can occurs the barrier of communication. Someone can interpret the meaning with their experienced.It’s related between word, signs & phrases. It’s is the most difficulties in communication arise because the same word or symbol means diffe rent things to different individuals. Example of Semantic Barriers is like Connotation and Fluency. Connotation is a commonly understood subjective cultural or emotional association that some word or phrase carries, in addition to the word’s or phrase’s explicit or literal meaning, which is its denotation (Wikipedia). They have a two (2) distinct sense. First is a ‘What must we know in order to determine the reference of an expression’ and secondly an idea to we suggested for implemented.For all knowledge, a sentence can convey entirely different meanings depending on the emphasis on words and the tone of voice for example, the statement, â€Å"I didn't SAY you were stupid† has six different meanings, depending on which word is emphasized like ‘I didn’t say YOU were stupid’ and ‘I didn’t say you were STUPID’. Some point to all remember is when we are angry or excited, our speech tends to become more rapid and higher pitched, when we are bored or feeling down, our speech tends to slow and take on a monotone quality and when we are feeling defensive, our speech is often abrupt.Fluency is the ability to read text accurately and quickly. Most people around us do not fully master the skill to speaks and read with confident. This weakness makes one’s self look weak in any communication with co-workers and managers. Fluency is very important to all of us. Why I say it is important? These is because, it shows that someone is knowledgeable in a particular field, say with utmost confidence and this will make the people around respect for ourselves. The fourth problem is a Physiological Interference. Health problems are one of the causes of the outbreak of the communication barrier.Headache, hearing loss, blindness, lack of focus, and suffer from short term memory lost due to physiological challenges on the part of the speaker or the receiver. When this happens, the speakers or the receiver will not take note of the things that will be presented by the speaker. Conditions such as headaches, blindness, lack of memory, hearing loss occurs in every person around us. Is my own example, if we have a headache, blindness, pain throughout the body, we will automatically fully concentrate on the pain and if someone started chatting, we like to take cognizance of and did not focus on it.If someone who was hearing-impaired, it is the biggest problem faced to communicate with people around. As speakers, if we want to deliver a thing of message, we must say with a loud tone clearly so that the receiver understands the meaning that we want delivered. For the blindness eyes, this will also affect the delivery of on-screen if any speakers make presentation using power point slides. This resulted in someone's difficult to concentrate on a slide that is displayed. Therefore, health is very important in a relationship communication.We will be constantly emphasize that our personal health symptoms such as headaches, fatigue, dim eyes, aching body is not the case because when it is in our bodies, all the important things will not be able to fully focus especially if are performing their duties in place work. Last and not least, is a lack of written and spoken in English. This is the one problem that happen in all of us expecially who doesn’t know how to communicate in English. In an organization, English is the main language. Less of reading book in English also be

Philosophy essay on sollicitudo rei socialis

A.  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Summary of â€Å"Sollicitudo rei socialis†John Paul II's message entitled â€Å"Sollicitudo rei socialis†Ã‚   speaks to the Catholic church's role in helping make better pressing social issues of the day, primarily poverty.   He breaks this topic down into six parts:   an Introduction, Originality of the encyclical Populorum Progressio, Survey of the Contemporary World, Authentic Human Development, A Theological Reading of Modern Problems, Some Particular Guidelines, and a Conclusion.In the Introduction, the Pope tells the reader that this piece was written to pay honor to Paul VI's encyclical â€Å"Populorum Progressio,† also called â€Å"The Development of Peoples,† which had been written twenty years earlier in 1967.   An encyclical is a letter to members and priests of the church written by the Pope.   In the â€Å"Populorum Progressio,† Paul VI says that unless justice and morality rule, the poor will neve r get the help they need.   Now twenty years later, Pope John Paul II sent a letter out to churches to get feedback on how best to celebrate the anniversary of the encyclical.   â€Å"Sollicitudo rei socialis† are his findings.   He also wants to pay honor to the original document and to show the value of church teachings because of the â€Å"continuity and renewal† of the ideas in the encyclical.In the Originality of the encyclical Populorum Progressio portion, John Paul II says that the encyclical is a how-to guide for the church to follow and it is based on the teachings of the second Vatican Ecumenical Council of 1965, which talks about poor people and what the church should do about â€Å"the development and underdevelopment of peoples.†Ã‚   People's development is based in moral and educational solutions provided by the church.   He believes that development is a global issue.   Rich countries have a responsibility to poor countries to not be gre edy with resources, because poor countries do not have as much access to the things they need to live.   The 1967 document concludes by saying that â€Å"Development is the new name for peace.†Ã‚   The logic behind this is that the poor want justice.   For them, justice is getting their fair share of the supplies needed to live, and if they do not, it leads to violence.In his â€Å"Survey of the Contemporary World,†Ã‚   John Paul II cites that poverty still exists because the Northern Hemisphere has easy access to supplies, while the Southern Hemisphere has slow access, even though this is where most of the world's population lives.   Poverty is a result of a lack of educational opportunities, jobs, as well as economic and racial discrimination, all of which go along with underdevelopment.He believes that â€Å"Authentic Human Development† needs to be â€Å"guided by a moral understanding.†Ã‚   A person must be developed morally, not just economical ly, in order for the growth to be authentic.   The church has a responsibility to aid in human development.His â€Å"Theological Reading of Modern Problems† tells that even though people can develop through science and technology, it must be grounded in morality as taught by the church.   Certain â€Å"Guidelines† should be followed, so that the church can do its work and people are treated with dignity.   The poor should be treated with preference, but they also have to contribute to their own development.   John Paul II, in his â€Å"Conclusion,† states that the church, as part of its moral requirement, can work together to help the poor develop into more fully human beings.B.   ReflectionJohn Paul II's main point is the place of morality as taught by the church to help get rid of human poverty.   I would agree that what a person or country values is based in their morality, and this helps motivate a person or group to action.   I also agree that rich countries have an obligation to assist poor countries so that their citizens have enough food, clothing, shelter, health care and education to do more than just survive, but to thrive.   However, I do not think that the Catholic Church has the corner on the morality market, especially in light of all the child molestation charges against priests.   Also, the only woman who is not marginalized in the Catholic Church is Mary, which is a problem if you are trying to bring your â€Å"morality† to a   culture that may or may not have your sense of morality and may actually value women.How moral can a group be that considers women to be essentially chattel who should not have control over their own bodies, but instead should put their spiritual and health care in the hands of their husbands and child-molesting priests?   How moral is a group that demands that a woman who has been raped, even by a male member of her family, should be required to carry the embryo to ter m in order to remain moral?   The Pope himself may indeed be   a moral man, but there are several in his â€Å"church† who cannot say the same, and who provide a wayward compass to guide people who really want to help the poor.Work CitedPope John Paul II. Sollicitudo rei socialis. (Vatican City: Libreria Editrice Vaticana, 1986).URL:http://www.vatican.va/holy_father/john_paul_ii/encyclicals/documents/hf_jpii_enc _30121987_sollicitudo-rei-socialis_en.html   Accessed 23 May 2007.