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« February 2009 | Main | April 2009 »

1245 posts from March 2009

March 31, 2009

A Paper on Marketing planning, market orientation and business performance

MARKETING PLANNING

Marketing planning, market orientation and business performance

 

 

 

European Journal of Marketing; 2003;

The authors of this article believe that marketing planning will allow companies and organizations to clearly establish and follow their goals and business strategies and put them into action. This approach also enables the companies and organizations to issue feedbacks around both the internal business processes and external outcomes, and this undoubtedly helps them on their drive to continuously improve in terms of their strategic performance and results. When appropriately implemented, the marketing planning procedures will be able to develop strategic planning into the brain of an organization.

The authors affirm that marketing planning may be identified as the process of measuring the competence and efficacy of purposeful action. The assessment or management of marketing planning is significant as this may serve as a tool for implementing organizational strategies. Marketing planning is being applied in companies and organizations as it can be used to translate the strategy of the organization into concrete objectives. Through marketing planning, these objectives can be communicated well to the employees. In turn, the knowledge of these set goals will serve as the employees’ guide towards their attainment. Marketing planning is also used in companies and organizations to assess whether the strategic objectives are achieved or not. This system allows the use of double-loop learning to test the strength of the strategies as well. Finally, marketing planning lets the company visualize the overall contribution of the employees in the achievement of its objectives.

More often than not, the authors believe that ordinary employees and consumers of companies and organizations don't really recognize the crucial roles and tasks of marketing planning. Instead, these consumers and employees engage in activities that various schools of management typically associate with marketing planning. These activities include the manufacturing of products, product development, production and distribution.

However, the authors affirm that marketing planning deals with all operations done within products and services. Activities such as the management of purchases, the control of inventories, logistics and evaluations are often related with marketing planning. A great deal of emphasis lies on the efficiency and effectiveness of processes. Therefore, marketing planning includes the analysis and management of internal processes.

Strategic marketing planning: A grounded investigation

 

 

 

European Journal of Marketing; 2003;

 

With the implementation of marketing planning in companies and organizations, the authors believe that production and other essential operations will improve with several benefits such as lower costs capital management, fastest time, reduces pressure and hassles in the workplace among others. As the authors stated, marketing planning is not an easy job because it entails processing of vast amount of information that is usually needed immediate attention. With the rise of globalization, businesses rely on marketing planning to get the work over and done.

Marketing planning will guide companies and organizations on how to gain competitive advantage by adding value to the overall operation of the organization through an efficient marketing planning system. Business firms that utilize the marketing planning strategy also consider increasing the companies’ relationship with its shareholders by separating the business system into a series of value-generating activities, namely: (a) inbound logistics, (b) operations, (c) outbound logistics, (d) marketing and sales, and (e) customer service. In effect, from the receiving and warehousing of raw material from the suppliers, all through out the manufacturing and production process, as well as in the entire the distribution and sales of finished goods, the value-generating activities are supported by the infrastructure of the firm, its human resources management, and the technology it uses.

The authors believe that companies and organizations nowadays offer two-way learning experience within the company between the employers and the employees concerning the importance of marketing planning. Employers benefit largely from trainings that they offer to staff and members of the firm given that the expected marketing planning knowledge and skills were learned through the organizations venture on their human resources. At the best possible results, the organization will gain competitive attitude in the business world by housing in competitive and qualified workers. Employees on the other hand, are given the opportunity to improve on their work capabilities as qualified and productive members of the modern and information age work force.

Towards rigour in action research: A case study in marketing planning

 

 

European Journal of Marketing; 2004;

 

The author affirms that marketing planning is the simplest yet most comprehensive representation of successful marketing endeavors. This marketing component puts into primary consideration the significance of attaining superior results through marketing planning, control and improvement. This trilogy results into the achievement of unparalleled quality and optimal performance.

A. Marketing Planning

 

Marketing planning is a necessary function within companies and organizations especially when establishing supplier partnerships. In manufacturing companies this process is often very difficult because of the fast rate of change and the occurrences of unplanned events. Most companies use several methodologies depending on the rate of demand of the customer and the price of the products. Nevertheless, the objectives of the company for every transaction do not change: efficiency and effectiveness.

 

 

B. Marketing Control

Marketing control is being implemented by companies and organizations in order for their activities and resources to be coordinated over time. This enables the company to achieve its goals with minimal resource utilization. Marketing control also enables companies to monitor the progress of their plans at regular intervals and maintain their control over marketing operations.

C. Marketing Improvement

Marketing improvement within companies and organizations can be monitored in four elements: scheduling improvement, labor improvement, equipment improvement, and cost improvement.

  • Scheduling improvement involves the specification of the beginning, the length or the duration, and end of the planned marketing activities.
  • Labor improvement involves allocating the necessary personnel and delegation of responsibilities and resources
  • Equipment improvement involves identifying the types and needs in terms of equipments.
  • Cost improvement involves determining the costs and the possibility of their occurrence.

 

 

LUXURY GOODS INDUSTRY

 

As a person with knowledge of the luxury goods industry, the author has always brought up to his superiors the viability of strategy formation regarding the analysis of this industry and at times fail to understand the reasons or logic behind certain strategic implementations imposed on it.

By delving into this project paper, the author intends to have better insights into how marketing planning of companies and organizations the luxury goods industry is thought up, formulated and then imparted down. The author hopes to have an in-depth understanding as to how the marketing planning in the luxury goods industry enables companies and organizations in this business to compete effectively and profitably in this era of internationalization where competition is extremely intense.

In order to reinforce the learning objectives, two key focal issues were focused upon i.e. innovation and diversity. Innovation was discussed with regard to the marketing planning in the luxury goods industry where it was renowned for its developmental capabilities to constantly innovate. Diversity came under strategic thinking and formation as the author considered the diverse culture, political climate, economic surroundings, social environment, technological settings, government policies and legal systems in order to better understand the issues being discussed.

 

 

Three Key Findings

1) The role of marketing planning among companies and organizations in the luxury goods industry is based on a simple concept: that through marketing planning they could best understand consumer needs and efficiently provide the most effective luxury goods and products to meet those needs. The marketing planning procedures eliminates retailers, who adds unnecessary time and cost, and also allows the companies to build every system to order, offering customers powerful, richly designed luxury products at competitive prices.

2) The traditional marketing planning in the luxury goods industry is characterized as a slow but sure process. Companies design and build their products with preconfigured options based on marketing planning forecasts. Products are first stored in company warehouses and later dispatched to resellers, retailers, and other intermediaries who typically added a 20–30 percent markup before selling to their customers.

3) Through efficient marketing planning, luxury goods companies are able to command the upstream part of the value chain, while giving the downstream part to middlemen (resellers, retailers and other intermediaries). Retailers justify their profit margins by reasons that they also give free several benefits to customers: easily accessed locations selection across multiple brands, opportunity to see and test products before purchasing, and knowledgeable salespeople who could educate customers about their choices.

 

 

UK CONSUMER CREDIT LAW

Consumer Credit Act 2006

 

Background

            The Consumer Credit Act 2006 represents an important statutory development intended to benefit both consumers and businesses. This law came about, out of the objective of wanting to build the UK consumer credit market founded on fairness, openness and competitiveness by offering protection to consumer interests and allowing lenders to compete in the credit market on equal and fair footing. Legislators envisioned a credit market situation where consumers have greater control over their financial status by creating an environment that places consumers in a position to make informed-decisions on borrowing and providing clear and consistent information over the status of the accounts of consumers. Lawmakers also intended to empower consumers to challenge any unfair conduct by lenders and providing a venue for efficiently resolving any disputes that could develop in the process.   

            Apart from credit market concerns, legislators were also concerned about the significant impact of the credit industry on the economy when the current issue of consumer distrust over existing credit systems continues. Consumer confidence towards the credit industry weakens when borrowers develop the impression that they are at a disadvantageous position in the negotiation process opening greater opportunities for them to be ripped-off. This implies the need to establish a regulatory system for consumer credit that fosters a responsible and competitive credit market able to respond to the needs of consumers and encourage the business activities of responsible lenders.

Main Provisions of the Consumer Credit Act 2006

            After thoroughly reviewing the Consumer Credit Act 1974 for three years, the Consumer Credit Act 2006 was enacted in March 2006 to embody three objectives: 1) enhance consumer rights and remedies through the empowerment of consumers to challenge unfair lending practices through a more efficient dispute resolution system; 2) improve consumer credit business regulation by simplifying the licensing system by requiring information provision to consumers over their accounts; and 3) regulate appropriately different credit transactions through proportionate business industry regulation.

            The Consumer Credit Act 2006 has several main provisions involving credit businesses intended to facilitate faster and less costly dispute resolution system, apply a uniform standard for all consumer credit firms, and implement a more reasonable system that applies in case of breaches of contract.

Alternative Dispute Resolution

            First provision is the establishment of the alternative dispute resolution system under the jurisdiction of the financial services ombudsman. Section 59 of the Consumer Credit Act 2006 extends the jurisdiction of the financial services ombudsman to cover consumer credit licensees and handle complaints and parties that satisfy the requirements in subsections 2, 3 and 4. Subsection 2 provides the conditions in determining whether a complaint falls under the jurisdiction of the financial services ombudsman, which are 1) complainant is qualified and willing to raise the complaint to the ombudsman; 2) complaint falls under the description for complaints specified in the consumer credit regulations; 3) respondent to the complaint is a licensed  business when the act or omission happened; 4) act or omission subject of the complaint forms part of the business process; 5) during the occurrence of the act or omission, the type of credit business is specified as included by the issuance of the Secretary of State; and 6) complaint does not fall under any compulsory jurisdiction. Subsection 3 of Section 59 enumerates nine types of businesses falling under the jurisdiction of the financial services ombudsman while subsection 4 provides that a complainant maybe an individual principally engaged in the credit agreement, a surety, or any person classified as eligible to file complaints with the ombudsman. These provides guidelines for both credit businesses and credit consumers in determining whether they qualify as complainants, the complaint is recognizable by the ombudsman, and the business subject of the complaint falls under the jurisdiction of the ombudsman.      

In the case of businesses, prior to filing the complaint with the financial services ombudsman, the party with a grievance should first communicate the complaints to business believed to be responsible for the act omission subject of the complaint. Sometimes this process catalyzes the resolution of the dispute between the parties involved. In instances when the parties agree about the problem but disagree about the solution or disagree over both the problem and solution that the parties may seek the formal stages of the alternative dispute resolution system of the financial services ombudsman. The formal process commonly commences with an investigation of the context resulting to the dispute complete with an appeal process. According to reports by the office of the financial services ombudsman, 50 percent of the disputes get resolved during the early stage of complaint communication by one party to another, 40 percent reach the formal stage to involve investigations and recommendation reports by the ombudsman, and the remaining 10 percent require individual final decisions issued by the ombudsman. The importance of this alternative dispute resolution process is attributed to the impartiality of the ombudsman services similar to the stand of judges in court proceedings. The financial services ombudsman handles all cases independently. According to current statistics, around one third to one-half of current cases has been settled in favor of customers.    

In relation to credit consumers, they are also accorded with the option to utilize dispute resolution systems outside of the courts. Consumers with a grievance against lending businesses should first communicate their complaints to the credit business involved. This constitutes the informal part of the dispute resolution process so that this stage could be made orally by speaking to the people in-charge or through a written complaint addressed to the people authorized to address consumer concerns. If the company fails to address the complaint or the parties are not agreeable over the solution to the complaint, them the consumer has the option to elevate the complaint to the office of the financial services ombudsman. As mentioned earlier, the ombudsman is an independent entity so that consumers are assured of an impartial, expedient and cost-effective alternative dispute resolution process. 

Unfair Relationships Test

Another provision affecting consumer credit businesses is the application of the unfair relationships test intended to establish a sole standard of conduct for all consumer credit businesses consistent with the standards of the industry and those imposed by the Financial Services Authority (FSA). Section 28 to 31 of the Consumer Credit Act 2006 provides for the common standard applicable to consumer credit businesses in qualifying for licenses. The Office of Fair Trade (OFT) is obliged by the law to issue guidelines in determining qualified applicants for license issuances. However, the law also provides the OFT with the power to vary a license depending upon certain express circumstances in section 31. This balances the need for a uniform licensing standard while considering differences in the business contexts of various consumer credit businesses. Achieving balance between these two factors ensures a standard, albeit flexible to varying business contexts, accessible to consumers desiring information and credit businesses so that the common knowledge makes credit firms conscious of their dealings with consumers and consumers having a certain degree of security in knowing that certain legal standards apply to credit businesses.

In relation to the unfair relationships test on the part of consumers, credit consumers are placed on equal footing with consumer credit businesses regarding the credit agreement. Sections 19 to 22 provides for the jurisdiction of the courts to determine cases involving unfair relationships between parties to a credit agreement. Consumers have the right to challenge the alleged unfair practices of credit firms in court. Upon a finding of the existence of an unfair relationship between the creditor and debtor, the court may implement or impose a remedy to the unfair relationship by rendering the agreement unenforceable. The unfair relationships test determinable in courts deters credit businesses in engaging in unfair agreements so that competition is enhanced and standards are implemented. At the same time, consumers are assured of their legal standing and juridical venue for raising complaints against any unfair practices of credit businesses.       

Providing Information to OFT & Consumers

Third provision involving the operations of consumer credit businesses is the legal mandate for consumer information provision. Section 44 of the Consumer Credit Act empowers the OFT to require a license applicant to provide certain documents pertaining to the license. On one hand this allows the OFT to determine the qualifications of the applicant but on the other hand the requirement of information provision ensures the OFT that the business holds a record of information in meeting the requirements for consumers information. Through the consumer Credit Act 2006, lenders are required to make the necessary action in ensuring that consumers are constantly informed of the status of their accounts with the firm, particularly relative to arrears and defaults. Lenders hold the obligation to issue annual statements to all consumers with fixed-sum credit accounts, other annual statements covering the effects of minimum payments, and arrears notices within 14 days after the customer gets behind in paying credit including the additional payments for delayed payment. Moreover, lenders should also provide notices of default together with additional default charges that should be communicated to the consumer prior to the application of default charges. This legal provision means that businesses are accorded the responsibility to keep in touch with their customers to ensure complete awareness on the part of consumers to ensure that the implementation of additional charges for arrears and defaults become valid.

Relative to consumers, those with existing accounts with credit firms should hold the right to receive information about their accounts from the lending institutions throughout the duration of the credit agreement. Section 8 of the Consumer Credit Act 2006 mandates the OFT to prepare information sheets on arrears and defaults to serve as guides to lenders and borrowers in understanding and complying with the processes and rules involved in the occurrence of delayed or default payments. Section 9 and 10 provides the requirements for the application of the duty of credit companies to provide information to consumers. Section 12 to 14 discussed the mandate to provide consumers with information on defaults, together with the requirements for the application of this duty.

Concurrent with the duty to inform by credit firms, consumers hold the right to receive annual information indicating the status and changes in the status of their credit accounts with the lending institutions to provide them with sufficient information in deciding a course of action. Information is particularly important to consumers in instances of arrears and defaults to remind them of the schedule of payment, the amount to be paid, and the additional charges asked by the lending institution to be paid due to delay or default in payment. The consequence of the importance of information is as a requisite to the valid enforcement of additional charges. Consumers hold the right to challenge the application of charges without the credit firm apprising the borrower about the occurrence of arrears or defaults together with the applicable additional charges. Simply put, consumers who are not informed of the occurrence of arrears or defaults subject to the requirements provided by law hold no obligation to pay whatever additional charges credit companies asking.

Enhanced Licensing System

Fourth provision involving consumer credit businesses is the enhanced licensing regime under the Office for Fair Trade. Sections 23 to 43 of the Consumer Credit Act 2006 governs the licensing system covering qualifications, requirements, duration and renewal of licenses, procedure, and fines. The law provides the OFT with the obligation together with the necessary regulatory powers to enforce a licensing regime more efficiently and effectively. The OFT complies with its obligation by utilizing the standards provided by law to make sure that all license applicants hold the necessary qualifications and requirements to operate with a license and monitor the business performance and conduct of license holders. Concurrently, OFT holds stronger powers in investigating possible cases of misconduct and imposing the appropriate sanctions to non-compliant consumer credit businesses. Sanctions may range from fines amounting to as much as £50,000 to suspension for license breaches. In addition, the law also created the Consumer Credit Appeals Tribunal, an independent body handling appeals made of the licensing decision of the body.

Although, the licensing system does not directly affect the rights of consumers, they are affected nonetheless by the new regime in terms of having greater assurance that the licensed credit businesses with whom they transact qualified as valid credit firms based on the requirements provided by the Credit Consumer Act 2006 and OFT regulations. Licensed credit companies become conscious of maintaining fair business dealing to keep their license and expect renewal after this expires.

Removal of Automatic Unenforceability of Non-Compliant Credit Agreements

Fifth provision involving consumer credit businesses covers the previous provision on automatic unenforceability. Section 15 of the Consumer Credit Act 2006 makes ineffective section 127 of the Consumer Credit Act 1974 covering the enforceability of orders in instances of infringement. Previously, agreements are rendered unenforceable by non-compliance with legal requirements. With the new law, courts are accorded the discretion to determine the enforceability of agreements making the decision in proportion with the determined detriment experienced by the aggrieved party, usually the consumer. This benefits credit businesses in

Provision on Credit Agreement Protection

Sixth provision affecting consumer credit businesses involves large credit agreements. Small businesses are afforded similar protection provided to consumers when engaging in credit agreements involving an amount not more than £25,000. In addition, the new law also clarified the definition of ‘consumer borrowing’ to make sure that larger organizations do not experience the disproportionate effect of the regulation. This provides small businesses with a more or less equal footing in the consumer credit market, allowing them to proliferate and operate side-by-side with large credit companies. This enhances competition that boosts the industry to contribute better to the economy.

On the part of consumers, who may not be directly affected by the provision on industry credit agreements, the creation of a competitive credit market ensures customers a wide range of choices in terms of the credit company to engage in a credit agreement with the assurance that small, medium and large firms are equally viable in terms of industry survival. With a wide range of options, consumers can compare different companies to determine credit offers and company values that suit their value needs.  

In addition, the new consumer credit law also extends protection to consumers engaging in large credit agreements amounting to as much as £25,000. This means that consumers borrowing amounts greater than £25,000 are afforded protection by law. Section 2 provides for the repeal of the provision in the Consumer Credit Act 1974 limiting protection to credit amounts equal to or less than £25,000. Section 3 provides for the exemption in cases of consumers established to hold a high net worth provided this is established and the consumer concedes to the waiver. While the protection directly accrues to credit consumers, this has the effect of improving the vibrancy of the credit industry by encouraging more people to engage in licensed credit firms to obtain funding for different economic activities that creates income resulting to a cyclical pattern of growth.

Conclusion

            The Consumer Credit Act 2006 serves as an important statutory contribution for both lenders and borrowers in the credit market. The provisions of the new law may be classified into six major provisions including 1) alternative dispute resolution; 2) unfair relationships test; 3) provision of information by credit businesses to the Office for Fair Trade and consumers; 4) enhanced licensing system; 5) removal of automatic unenforceability of non-compliant credit agreements; and 6) provision on credit agreements protection. These provisions work to ensure that credit firms are encouraged to practice fair dealing and consumers are secured in obtaining credit from licensed credit firms. This results to the vibrancy of the consumer credit industry allowing these firms to contribute to the overall economy.

            However, some of these provisions are yet to take effect particularly the new unfair relationships test. Since the implementation of the law happens in increments, the full benefit of these provisions cannot be accurately determined at present. Moreover, there are several successive periods of transition from the application of the amended provisions indicating periods of adjustments and instability in the implementation of the new law. Nonetheless, like any new law, the consumer market and the credit industry need to contribute towards the establishment of practice-based but statute-founded best practices governing a fair creditor-debtor relationship.                 



 

Marketing Planning Essay Instructions

Examine the three journal papers sent as an attachment and identify three key findings that emerge in terms of lessons for practitioners for an industry of your choice.

RPM Limited (Property investments)

QUESTION 1: PROJECT EVALUATION AND RISK MANAGEMENT

Feasibility studies regarding the real estate deal are essential to determine the risks involved in the transaction.  Investment in real estate development is an expensive and results in possessing illiquid asset.  Costs include acquisition of the land, improvements and consultancy fees.  Due to substantial money necessary to undergo the transaction, cash flows from real estate development are delayed.  Further, financing of the transaction is commonly debt-centered which aggravates the negative cash flows arising from regular payments of debt even if the development yet to provide cash flows.  Another issue is to consider in the value of the property and its leverage capabilities or ability to borrow using the former. 

 

The offer to develop Ashmore is within the target goals of RPM as it is located within urban Gold Coast City.  Due to this, business risks are mitigated.  However, diversification which is a parallel concern is undermined because Ashmore has likely the same characteristics in terms of market and geographical features as current properties in Gold Coast City.  To address diversification issues, RPM must have an in-depth comparative assessment of Ashmore and Gold Coast City.  The findings can include difference in markets like having residential and commercial tenants.  This can aid RPM in deciding whether potential and existing tenants are affected by macroeconomic factors such as wages or retail industry growth.

 

In the financial side, the firm must determine source of financing to finance the project development.  The use of equity, debt or internal sources must be settled to assure that the project will have a dependable budget necessary to prevent work stoppage.  The firm can also seek the aid of investment entities such as banks or create alliances with contractors.  It may not sustain the operations due to fluctuations in raw materials such as cement and metal that distributing the burden to other entities can be useful.  It must also consider offering options to potential tenants or owners through discounted schemes.  Measuring financial risk requires use of investment techniques such as net present value (NPV), return on investment (ROI) and especially the timing of cash flows under payback period method.         

 

QUESTION 2: FINANCING OPTIONS

The basic tenet in purchasing real estate is to borrow funds from an institution and combine the proceeds with own funds.  However, since the engagement of RPM involves development and marketing, methods of financing are atypical.  If Ashmore project falls within the 12 to 18 month completion up to full occupancy, seller financing can be lucrative to prospective tenants.  The $14M project is far greater than the balance sheet worth of RPM.  However, seller finance can be applied in the unsold units worth $1.4M to aid in raising funds.  The land component which essentially increased the price of the project can have a seller finance status where this part will be assumed by the prospective buyers in Ashmore development.

Options can be executed to ease the risk prominent in the project.  RPM can sell Ashmore units to risk investors who hope that the price of the property in the future will increase.  The firm can use options to distribute the risk of fluctuating market rates to potential buyers.  Lease option can apply to potential tenants for RPM to pass the responsibility of paying taxes, insurance, maintenance and up-keeping the property.  Tenants can see this option as lucrative because it entails tax benefits which aid their business cash flows.  The firm can also use its existing lease option to buy the property with the objective of selling the property also into lease option.  With this, it can profit from premiums and lease fees.

 

The firm can also use its existing properties as collateral to creditors.  Since the industry is prone to speculation, the firm can use this impression to increase the usefulness of its properties especially those that are idle.  The substantial cash and balance sheet of the firm can be used to acquire under-priced properties.  With the aid of its consultants and experienced employees, it can easily sell them and make a profit.  The proceeds will be used to fund the project which is largely based on flipping schemes.  This scheme is effective when the company get involve to uninformed sellers or those homeowners under financial difficulty.  Wholesaling can also be executed by the large financial back-up of the firm.  Although with minimal profits, it can essentially help the asset management of the company by buying and selling large amount of properties.  The high volume of the transaction equates small margins to useful funds.       

QUESTION 3:  Minimizing Equity

To ease equity and soft costs, RPM can offer its consultants, attorneys and other employed professional’s stake in the project.  Instead of paying those wages and money, they can take ownership of the finished project.  They can stand as shareholders and investors.  In the contrary, hard money lenders can be tapped to pay these soft costs.  As money is needed quickly as the firm must pay wages in cash, part of the value of the property will be borrowed enough to assure that soft costs will be covered.  This approach does not increase equity and can serve as alternative source of capital.  Option can also be used to involve potential owners of the units in raising funds.  The company can also assume a manager-owner stance in which it would reduce equity requirements by funding the significant part of the project with retained earnings and profit from other properties.  

 

If the company decided to finance equity requirements, it can use initial public offerings by selling stocks in the financial market.  With the strategic location of Ashmore property, there is a likely positive response from the market.  Alternatively, RPM can enter a deal with an interested institution to collateral ownership through stocks against loan entitlements.  This process involves a contract agreeing the right of the institution to take part of ownership of the property in lieu of interest payments or lending money on request.  The ballooning ownership, however, can be problematic if the institution would be able to maneuver and control the direction of the company.  Managers and employees of the company can also participate in stock option which can replace incentives and fringe benefits.  The company can save cash and divert these resources to satisfy equity requirements.      

 

Venture capital can minimize equity investments by involving similar companies in the transaction.  RPM and other venturers can create a separate entity or merely combine their resources with RPM management on the frontline.  They can share control and also proceeds of the project.  For example, the required equity investments can be distributed to two entities under fifty-fifty scheme.  As a result, RPM will not need to raise the equity by itself because the other venture can shoulder the half of the requirement.  Also, RPM can use its existing properties as collateral to commercial banks or a form of mezzanine financing.  Assets of the company will be pulled if its fail the agreements of the loan.  As it is a form of debt financing, equity can be minimized by fulfilling the requirements with debt counterpart.     

 

Question 4: Use of Trust

            The trust can be used for RPM to tapped tax incentives because it had been declared to accumulate tax losses.  This means that the firm can use its ownership position in the trust to gather incentives.  In the contrary, the government can also apply tax lien to RPM if the trust is not really bankrupt.  The government can claim the property the firm is in possession even if it yet to complete improvements in the current project.  Under tax lien, the government can auction the properties of RPM to recover the amount it owes in paying the taxes.  In this regard, the company can reconsider that this happening can be one of its sources of gaining potential client.  Through the accomplishment of a tax lien certificate, the government can inform the public effectively that RPM properties are for sale in favor of tax liability the latter owes.  As a result, the firm can have supporting marketing scheme which can minimize its cost and efficiently acquire potential tenants that can readily contribute in funding requirements of the ongoing project. 

 

            Under the tax lien, RPM would only pay interest that accrues in the delinquent tax liabilities to the purchaser.  The firm should assure to pay the interest on the lien to assure that the property it is developing will not be foreclosed by the purchaser.  There is also redemption period which is longer enough for the firm to source additional financing.  The basic advantage of tax lien is that it provides ample time to the firm to find appropriate and willing financier and the longer terms compared to institutional creditors.  However, RPM should note that inability to pay the interest on the lien can connote free and full ownership of the purchaser to the property.  RPM should not let this happen, otherwise the advantage of tax lien would not be maximized if not a destructive move on its part.

 

            There are other methods that the firm can benefit from the delinquent account in the trust like tax deed estate.  The government can attach discounts to the properties of RPM and sell them to interested parties.  As most of these sales happened virtually and online, the firm can enjoy larger market base that can evaluate the attractiveness of the properties and offer price.  As observed, having a delinquent account in trust can trigger the bad condition into opportunities that RPM can exploit.  Even if the fund is non-trading, it triggered the advantages RPM is seeking for the Ashmore project.  The less burden involved in paying for the tax in arrears is equated by exposure to larger market base and support from purchasers in the auction initiated by the government.   

         

Question 5: Debt and Equity Ratio

When using debt, the firm can borrow money in lieu of a commitment to pay the interest and principal in predetermined date.  The borrower retains ownership in the business including profits and assets under finance.  Debt strategy is compatible with companies that are highly liquid because they can avoid financial difficulties and face litigation in the future.  The benefits of the debt financing is that it is tax deductible making it the cheaper source of finance.  The borrower also has the option to undergo a fixed or floating rate to drive its financing costs. 

 

On the other hand, equity financing can be sourced from a venture capital, equity fund or initiating listing the company in stock exchange.  Contrary to debt, equity can be costlier because of listing fees and other procedures the firm should undergo.  However, equity does not involve periodic payment on the investors rather on the final result of the engagement.  If the project will have a net loss, shareholder will have to shoulder financial commitments on a pro-rated basis unless in a case of limited liability.  Equity is also efficient because numerous sources can be tapped.  Since RPM is in a volatile industry, listing in an exchange can minimize business risks while increasing the value of the firm. 

 

The optimal debt-equity ratio is dependent on several factors.  First, the firm must evaluate the strength of its management team.  If management team is very good, a higher dependence on debt must be initiated because the team can easily mitigate financial risks.  Necessary funds to run the project must be prioritized to determine critical issues.  Only those critical costs in the project must be included in the budget requirements in order to align debt-equity ratio accordingly.  For example, soft costs are important in the planning and latter stages of the project.  As a result, available cash must be generated through hard cash lenders which are largely debt financing.  In contrast, investments in raw materials and machine can be bought in the latter stages of the project enough to finish proceeds from recent initial public offering. 

 

Question 6:  Cost of Capital

            The appropriate cost of capital will include the cost of improvements, land and opportunity costs.  This will be used to appraised and discount the cash flows of the project.  Improvements in the land can reflect both hard and soft costs.  Socio-economic aspects that the firm addresses in its improvement stage must also be included.  These include preservation of vegetation, preventing to aggravate occurrence of earthquake and increasing the available jobs within the vicinity.  Further, potential improvements in the adjoining properties in close proximity with Ashmore project must be included in the cost of capital.  This can include value-added amenities which can increase the intrinsic value of the Ashmore properties.  Opportunity costs would include the lost benefits that the company can derive when it invests in other location of similar level of development.  This is of primary importance; however, since Gold Coast City is considered at par with major cities in the country, these costs can be very high.

 

Question 7:  Value-Added Opportunities

One advantage is that RPM can sell the property with higher returns to a less informed investor.  With its own experience coupled with support of employed consultants, it can outwit investors and gain returns in selling phase.  The bulk of world's assets are in real estate and the firm cannot run out of potential market after the project is completed.  The firm also has control whether to sell or rent the finished units.  It would sell the units if future rent earnings is less than the return on purchase price of the units.  When the economic outlook is also favorable, the cost of the land can increase and benefit the asset management of the company.  Increased valuation of assets can help the market value of the properties rise and gain returns within unexpected levels.  The improvements of adjoining locations within the Gold Coast City can also pump the market value of Ashmore project in the future.

RPM can also easily dispose the property when the economic outlook is not favorable.  Assuming that tenants have embedded a home and business interest in the units they currently rent, the company can use this idea to push sale of the properties.  Foreclosure can also be used to determine interested parties that can pursue the stance of an owner in cases when the firm decides to let go of the property.  Since it owns the property, it has all the options to apply on how to dispose the property it may be non-payment of tax for a long period of time because of financial difficulties.  Another opportunity is the growing interest on the location of several real estate companies in the future as it is the Las Vegas of the country.  With this admonition, the company can easily find a seller or joint partner to ease any financial bottlenecks it is facing. 

 

Since the property is in line with the objectives of the company of having a portfolio within urban cities, it can significantly contribute to the existing business of the company.  Cash flows can be more regular with this condition since there are several simultaneous projects that are finished with the proceeds going to uncompleted ones like the Ashmore project.  The unsold residential stock of the company can be maximized by serving as collateral to creditors.  As a result, previously idle assets can support the operations of the project.  The yield on the project can increase in succeeding years as estimated.  This can pose lucrative response from potential buyers and investors because their initial investment in the company can grow over time which is best strategy in hedging risks.  Lastly, the type of development in Ashmore is differentiated to spread risks.

BIBLIOGRAPHY

UK CONSUMER CREDIT LAW: ESSAY INSTRUCTIONS

Outline the main provision of the consumer credit act of 2006 and also the will the law effect on the banker and lender. do you agree. 3000words with reference

RPM Limited (Property investments) Essay Instructions

RPM Limited is a property development and investment company with a brief but successful track record of projects in high-density urban residential property development and investment. The company has a subsidiary that operates a profitable real estate agency and it operates exclusively in the Gold Coast market. RPM has a a€thin€ balance sheet that discloses a net worth of $2.9 million which is largely accounted for by current assets including cash ($1.2 million) and non-current assets in the form of unsold residential stock ($1,450,000).

The project shows a yield on completion of 7.2% rising to 8% in year 3. The market rate for development finance is 1.5% above the prevailing 3 year bond rate. The opportunity cost for equity capital with a similar risk profile on the Gold Coast is currently 13.5%. If you require further specific information about the project, do what developers do in similar circumstances, make informed assumptions.

RPM has been offered an option on a large site at Ashmore by a private vendor who wants to develop a retail complex on the site of around 3,200sqm. The site adjoins a Gold Coast City Council local office that houses a consumer services bureau, a library, traffic management and engineering staff and two counsellor’s electoral offices.

The vendor believes that rezoning and development approval will be granted for a well-designed retail complex on the site. The vendor doesn’t have the capital or the experience to do this project and is willing to sell to a company that can. The vendor suggests that the redevelopment should include the following:

1. A 1,200sqm supermarket
2. A 450sqm discount clothing store
3. A child care facility
4. A 250sqm fast food restaurant
5. 15 convenience stores
6. A small park that offers access to the council offices
7. Under-cover parking for 80 motor vehicles.

RPM’s long term aim is to build a small regional diversified property fund for Gold Coast investors. The board of directors’ has indicated a preference for developing the site over a 12 month term at a cost of $14,600,000 (including the land component) and hold the asset until it is fully tenanted. This is expected to take around 6 months post-completion. The directors’ then propose to have the property valued and then sold to local investors as going concern.

RPM has asked your advice about the following matters:

1. How should RPM test the feasibility of this project? What preparatory work should RPM undertake that would assist it to measure the riskiness of this project?

2. What are the options for financing the proposal to develop, hold and then sell this project to investors?

3. RPM will need to come up with $3,000,000 in equity to get this project off the ground which includes “soft” costs of around $600,000 which includes the rezoning and development application, legal fees, borrowing costs and fees paid to various consultants. How can it source this capital? What steps could RPM take to minimise its equity contribution to the project?

4. RPM wants to know how to structure this project. RPM has a dormant non-trading unit trust in its group with accumulated tax losses and wants to know if it can use this to house the project.

5. How should RPM capitalise the project – what debt and equity ratio should be used?

6. What is RPMs actual cost of capital under the capitalisation that you suggest and what would you suggest as the investment cost of capital or hurdle rate?

7. What suggestions can you make about other “value added” opportunities that may exist in this transaction?

ECONOMICS OF FINANCE AND INVESTMENT

Introduction

Investment appraisal is a strategic decision-making process for determining how a firm’s management should allocate limited capital resources to long-term investment opportunities. Investment decisions will not be made in isolation from other business decisions and plans; the question of strategic fit arises. Accordingly, investment decisions should be made in the context of the firm’s strategic business plan, with the goal of maximizing the long-term market value of the firm and the realization of its strategic objectives. The investment decision-making process involves identifying, evaluating and implementing long-term investment opportunities which will enhance shareholder wealth and achieve the firm’s objective ( 1999).

 

The costs and benefits of these investment opportunities will be spread out over time. Because the outcome of long-term investment decisions, more so than any other type of business decision, will directly affect the firm’s future and its value, it is vitally important that investment proposals are properly evaluated before they are implemented. The essence of investment is to forego present consumption of resources in order to increase the total amount of resources which can be consumed in the future. The objective of an investment decision is to acquire an asset for less than its value, this way corporate or personal wealth can be increased. Acquiring an asset for at least its value will maintain wealth or value. It would not make good financial sense to acquire an asset for more than its value as wealth would be eroded (1999).

From the corporate firm’s point of view the financial manager’s objective should be to invest in projects which add to corporate and shareholder value. The problem is that at the outset it is often difficult to determine which assets or projects will be wealth enhancing and which will be wealth reducing. All the more reason people should employ good appraisal techniques and procedures to help us make the right choice. For a wealth-maximizing business enterprise, the most common form of investment is in real corporate assets. Such assets are clearly very important since, for most firms, they represent the largest financial investment and are the key earning assets of the firm. In business, investment decisions are made for many reasons, but although the motives may differ, the techniques used to evaluate them are essentially the same (1999).  

 

Typically investment proposals may be motivated by one or more of the following:  First motivation is Competitiveness. New investment may be required to improve the firm’s competitive position and gain competitive advantage. Second motivation is Expansion and growth. New/additional facilities or operating capacity may be needed to meet increases in activity and sales.  Third motivation is Replacement. Due to advances in technology and operating methods old equipment and buildings may need to be replaced.  Fourth motivation is Renewal. Rebuilding, overhauling or refitting existing buildings and equipment may be necessary to improve operating efficiency, to comply with legislative requirements and/or to improve quality standards. Fifth motivation is Acquisitions and mergers. A firm may seek opportunities to grow by acquiring another suitable company.  The last motivation is Foreign direct investment (FDI). There may be opportunities to grow by building a factory or acquiring a company in a foreign country ( 1999).  The paper will discuss about portfolio framework for investment decisions in the context of global financial markets. The paper will also discuss about how investors can use historical data on international stock market returns.

 

Global financial markets

Within the neo-classical paradigm, capital flows where its marginal product is higher. As a result, the allocation of capital is more efficient and global welfare is higher when capital flows freely across national borders. As trans-border capital flows increase, economies are progressively integrating globally. The financial structures of economies as well as the world of finance are changing. This applies to both domestic and global financial markets. A quarter century ago, a businesswoman was restricted to borrowing from her domestic market. However, if she operates in an emerging market economy, several options are presently open to her. For instance, she can choose between issuing stocks and bonds in the domestic or foreign financial markets ( 2004). 

 

She can reduce her cost of capital if foreign currency loans are available at more attractive terms than the domestic loans, and these loans can be hedged by using a variety of financial products. She can also consider selling equity at foreign Bourses, which are far more liquid than the domestic ones. A functional definition of financial globalization is the integration of the domestic financial system of an economy with the global financial markets and institutions. The enabling framework of financial globalization essentially includes liberalization and deregulation of the domestic financial sector as well as liberalization of the capital account. In a globalized financial environment domestic lenders and borrowers participate in the global markets, and utilize global financial intermediaries for borrowing and lending. Trans-border capital flows tend to integrate the domestic and global financial markets and systems ( 2004).

 

Although the global financial markets remained in a state of flux throughout the twentieth century, transformations since the early 1970s have been nothing short of dramatic. The Global forces for change included advances in information communication technology (ICT), making remote access to trading systems ubiquitous. Also, innovations in ICT and the development of new instruments in the financial market became self reinforcing. Furthermore, financial deregulation and liberalization at the national level, opening up to international competition, and globalization of financial and real markets, were significant change agents ( 2004). 

 

Additionally, changes in corporate behavior, such as growing disintermediation and increased shareholder pressure for financial performance, were the prime movers behind the transformation in the financial services sector in the emerging market economies. Advancing globalization during the 1980s and the 1990s increased trans-border capital flows and tightened the links between financial markets in the emerging markets and global financial centers. Growth of global financial markets was further accelerated by improvements in the fundamentals, particularly by more rapid economic growth in the emerging market and matured industrial economies. It was also assisted by economic and structural reforms in the emerging market and transition economies. Lastly, the recent spate of banking and financial crises has accentuated the pressures for transformation. Notwithstanding the recent decline in capital flows, the evidence of the preceding quarter-century suggests that financial markets in the emerging market economies have become increasingly deep and resilient ( 2004). The state of global financial markets changes as different things happen in the environment.  The global financial markets are affected by different situations such as increase or decrease of the interest rates. It is also affected by improvements in the society, such as new trends in different industries.

 

Stock market returns

Nominal returns are unadjusted for inflation. Real returns are corrected for inflation and are thus a more accurate reflection of the growth in an investor's purchasing power. Because the goal of investing is to accumulate real wealth an enhanced ability to pay for goods and services the ultimate focus of the long-term investor must be on real, not nominal, returns. In the stock market's early years, there was little difference between nominal returns and real returns. In the first period, from 1802 to 1870, inflation appears to have been 0.1 percent annually, so the real return was only one-tenth of a percentage point lower than the nominal stock market return of 7.1 percent. Inflation remained at an extremely low level through most of the nineteenth century. In the stock market's second major period, 1871 to 1925, returns were almost identical to those in the first period, although the rate of inflation accelerated sharply in the later years ( 1999). Nominal stock market returns compounded at an annual rate of 7.2 percent, while the real rate of return was 6.6 percent. The difference was accounted for by annual inflation averaging 0.6 percent. In the modern era, the rate of inflation has accelerated dramatically, averaging 3.1 percent annually, and the gap between real and nominal returns has widened accordingly. Since 1926, the stock market has provided a nominal annual return of 10.6 percent and an inflation-adjusted return of 7.2 percent ( 1999).

 

Since the Second World War, inflation has been especially high. From 1966 to 1981, for example, inflation surged to an annual rate of 7.0 percent. Nominal stock market returns of 6.6 percent annually were in fact negative real returns of -0.4 percent. More recently, inflation has subsided. From 1982 to 1997, during substantially all of the long-running bull market, real returns averaged 12.8 percent, approaching the highest return for any period of comparable length in U.S. history. The high rate of inflation in the modern era is in large part the result of nations switch from a gold-based monetary system to a paper-based system. Under the gold standard, each dollar in circulation was convertible into a fixed amount of gold. Under the modern paper-based system, in which the dollar is backed by nothing more than the public's collective confidence in its value, there are far fewer constraints on the U.S. government's ability to create new dollars. On occasion, rapid growth in the money supply has unleashed bouts of rapid price inflation. The effect on real long-term stock returns has nonetheless proved neutral. Even as nominal returns have risen in line with inflation, the rate of real return has remained steady at about 7.0 percent, much as it did through the nineteenth century ( 1999). 

 

Different variables determine stock market returns over the long term this includes the dividend yield at the time of initial investment; the subsequent rate of growth in earnings; and the change in the price earnings ratio during the period of investment.  The total of these three components explains nearly all of the stock market's returns over extended holding periods. By analyzing the contribution to total return of the three factors, reasoned consideration of future returns can take place. The initial dividend yield is a known quantity. The rate of earnings growth has usually been relatively predictable within fairly narrow parameters. And the change in the price earnings ratio has proven highly speculative. Total return is simply the sum of these three factors. For example, an initial dividend yield of 3 percent plus a forecasted earnings growth of 7 percent annually over the next 10 years would bring the return to 10 percent. A change in the price earnings ratio from 15 times at the beginning of the period to a forecasted 18 times at the end would add 2 percentage points to that total, bringing the return on stocks to 12 percent ( 1999).

Portfolio Framework for investment decisions

In investment decisions in the context of global financial markets; a portfolio Framework serves different kinds of purpose. The portfolio framework helps in determining what should be considered before making any investment decisions. The next figure will show the portfolio framework.

The portfolio framework describes that when investment opportunities come, decisions should not be hastily made. Different considerations have to be analyzed.  One consideration is the profitability of the investment. When one wants to engage in an investment, there should be assurance that the investment will be profitable so that investment will not be put into waste. Another consideration is the change in financial climate. The financial sector might be doing well in one instance but some other time it may be having some difficulties. Investing during a time of financial problems can cause a company or any individual lost opportunity. Lastly a consideration should be the longevity of the investment.

Using Historical Data on international stock market returns

Investors can make use of historical data on international stock market returns as a means to predict the outcome of the stock market return. Through the historical data the different trends in the stock market can be observed and then the possible outcome can be predicted. The historical data on international stock market can also help in observing what causes the changes in the stock market and how often the said changes happen. The historical data on international stock market can help in analyzing specific information on the data such as the causes of the changes and the frequency of increase or decrease or stock market returns. Moreover the historical data on international stock market helps in determining the level of decrease or increase of the stock market returns.

 

Conclusion

In business, investment decisions are made for many reasons, but although the motives may differ, the techniques used to evaluate them are essentially the same. Growth of global financial markets was further accelerated by improvements in the fundamentals, particularly by more rapid economic growth in the emerging market and matured industrial economies. It was also assisted by economic and structural reforms in the emerging market and transition economies. The portfolio framework has described that when investment opportunities come, decisions should not be hastily made. Different considerations have to be analyzed.

References

A Paper on Racial Demographics of the United States

 

Racial Demographics of the United States

Hispanics

Americans of Latin America origin are known as Hispanics or Latinos and are the largest minority group in the country, composing 12.5% of the population in 2000. The Hispanic category is based on national origin, language and culture, not race, and is defined by the Census as anybody from or with ancestry from Spain or Spanish-speaking Latin America, so a Hispanic may be of any race.

Black Americans

About 12.3% of the American people are Black, mainly African American, most of whom are descendants of the enslaved African brought to the United States between 1619 and 1808 and emancipated during the American Civil War. Starting in the 1970s, the black population has been bolstered by immigration from the Caribbean, especially Jamaica and Haiti. More recently, starting in the 1990s, there has been an influx of African immigrants to the United States, due to the instability in political and economic opportunities in various nations in Africa.

Asian Americans

Asian Americans made up 3.7% of the entire US population. Most Asian Americans are concentrated on the West Coast, with California home to 4.5 Asian Americans, and Hawaii, where they compose the majority at 70% of the island’s people. The largest groups or descendants of immigrants from the Philippines, China, India, Vietnam, South Korea and Japan.

 

Native Americans

Indigenous people of the Americas such as American Indians and Inuit made up 9% of the population in 2000.

Native Hawaiian and Other Pacific Islander

 Native Hawaiians and other Pacific Islanders made up 0.1% of the population. Throughout Hawaii, the preservation and universal adaptation of Native Hawaiian customs, Hawaiian language, cultural schools solely for legally Native Hawaiian students, and historical awareness has gained momentum for Native Hawaiians as a people who are here to stay and grow.

Racial Demographics of Washington State 2000

Race

Total Population

Percentage

White

4,821,823

81.8

Black American

190,267

3.2

American Indian and Alaska Native

93,301

 

1.6

 

Asian

322,335

5.5

Native Hawaiian and Other Pacific Islander

23,953

 

0.4

 

Hispanic or Latino

441,509

7.5

Source:

 

 

 

 

Population by County

County

Total Population

White

Black

Native Indian

Asian

Hawaiian

Hispanic

Adams

16,887

47.7

0.7

1.2

0.7

0.2

50.9

Asotin

21,247

94.4

0.3

1.1

0.8

0.0

2.3

Benton

159,463

79.6

1.2

1.0

2.5

0.1

14.6

Chellan

71,034

76.1

0.5

1.1

0.9

0.3

20.9

Clallam

70,400

87.4

0.9

5.0

1.3

0.2

4.0

Clark

412,938

85.0

2.0

0.9

3.7

0.4

5.8

Columbia

4,087

91.5

0.4

1.0

0.6

0.0

6.2

Cowlitz

99,905

89.0

0.7

1.6

1.3

0.1

5.6

Douglas

35,772

75.0

0.6

1.3

0.8

0.2

22.2

Ferry

7,560

78.4

0.2

17.0

0.3

0.0

2.8

Franklin

66,570

47.2

2.6

0.8

1.8

0.2

48.3

Garfield

2,223

95.9

0.0

0.3

0.5

0.0

3.0

Grant

82,612

62.5

1.1

1.4

1.1

0.1

33.8

G.Harbor

71,587

85.4

0.5

4.8

1.3

0.2

6.3

Island

81,489

86.6

2.0

0.9

4.0

0.4

3.7

Jefferson

29,276

91.7

0.8

2.1

1.4

0.0

2.4

King

1,826,732

70.3

5.9

1.0

12.9

0.6

6.7

Kitsap

240,604

82.2

2.8

1.6

4.6

0.8

4.7

Kittitas

37,189

87.8

0.9

1.1

3.1

0.2

5.7

Klickitat

20,335

86.1

0.4

3.1

0.7

0.1

8.5

Lewis

73,585

89.8

0.5

1.3

0.8

0.2

6.5

Lincoln

10,376

94.1

0.3

2.1

0.3

0.0

2.1

Mason

55,951

86.6

1.2

3.6

1.2

0.5

5.6

Okanogan

40,040

72.7

0.4

11.1

0.6

0.1

14.3

Pacific

21,735

88.0

0.4

2.4

2.1

0.0

5.8

P. Oreille

12,951

92.5

0.3

3.3

0.7

0.1

2.0

Pierce

766,897

74.6

7.1

1.5

5.7

0.9

6.8

San Juan

15,298

93.8

0.3

1.1

1.2

0.0

2.7

Skagit

115,700

81.3

0.7

2.0

1.7

0.2

13.0

Skamania

10,833

91.4

0.4

2.1

0.6

0.1

4.7

Snohomish

669,887

79.9

2.2

1.5

7.4

0.4

6.3

Spokane

446,706

89.1

1.7

1.5

2.1

0.2

3.3

Stevens

42,632

89.6

0.3

5.6

0.5

0.2

2.1

Thurston

234,670

82.3

2.7

1.6

4.9

0.6

5.2

Wahkiakum

4,026

93.6

0.3

1.7

0.5

0.0

2.6

Walla Walla

57,721

77.9

1.9

1.1

1.3

0.3

16.77

Whatcom

185,953

85.2

0.9

2.9

3.3

0.2

5.9

Whitman

39,838

84.2

2.1

0.7

7.2

0.4

3.4

Yakima

233,105

53.5

1.3

5.0

1.2

0.3

39.3

 

 

Black or African American Highest Population: 2006

County

Population

Percentage

King

 

 

Pierce

 

 

Snohomish

 

 

Spokane

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Racial Demographics Essay Instructions

I am supposed to read our text book  (2006), . (ISBN 0-205-45450-X)
and answer the question that my instructor gave me below. It has to be 6 pages single space with 12 font.


Assignment Instructions
Before starting the writing process, carefully complete your reading. Then review the Assignment Guidelines and Reference Guidelines (see Learning Modules). The minimum acceptable length for an essay is 35 lines (1 1/2 pages). Essays not meeting the minimum will receive a zero. On average, it will take at least two full pages to address an assignment question. Formatting rules must be followed and include: a heading on the first page, 12 pt Arial font, double-spaced with 1” margins. No hard returns except for paragraph breaks. Number essays and pages. Insert a page break after each essay. If you quote from the text, cite and reference properly (ASA style). Reference all Websites. No footnotes or endnotes. No .wps or .wpd files accepted.

1.Using the most current online Census data, determine the racial demographics of the state in which you live (if you live abroad, analyze data from a state of your own choosing).



In your state:

About what percent is African American?


About what percent is Hispanic?


About what percent is American Indian?


About what percent is Asian American?


Are there other significant minority populations in your state?


Which is the largest ethnic or racial minority group in your state?


Based on an examination of county data you should be able to determine if there is an urban or rural concentration of Blacks in your state. What about Hispanics? (Note: the easiest way to collect this information is to choose a county associated with a large urban center, i.e., Seattle/King County and then choose a county with smaller population base, such as Yakima or Adams County for comparison).


How do incomes compare between Blacks, Whites, Hispanics, and Asians in your state/county?
Be sure to analyze your findings in light of the reading in Chapters 5 & 6. In other words, don't simply list the demographic data, but analyze it as well. For example, why might Hispanics be concentrated in rural counties of Washington?

Suggested Websites to visit for Question #1:




US Census Bureau, State Data Center
US Census Bureau, US Census Quick Facts Search
(Step by step instructions may be found in the Discussions Area. Please let the VF or instructor know of any broken links)

2.Discuss each of the five social-historical transitions for African Americans as presented in the text. Which transition do YOU think has had the greatest influence on the Black family in America today? Explain why you chose this particular stage.


3.The term Hispanic is quite broad, describing a very heterogeneous ethnic (not racial) group. Among Hispanic populations, Puerto Rican-origin families appear to be at greatest risk for poverty. What are some reasons for this? Present data that illustrate your argument. Why is U.S. national policy slow to respond to issues of poverty among Hispanic groups in general?


4.Using the Census sites from Question #1, the suggested sites below, and your reading of Chapter 6, report the current median age and life expectancy of American Indians and Alaska Natives. Compare these data to other racial and ethnic groups. Include analysis of the demographic data you present (explain reasons for the differences you found among racial and ethnic groups). You may choose one tribe or analyze the Census data provided for your state. NOTE: Finding reliable data on American Indians is challenging. Why is this? One of the goals of this question is to hone online research skills, so don't give up your search too quickly!

Suggested Sites:

CDC


AOA


BIA



(Sample)

I'm A. Student

Soc 351

Assignment 1

Essay #1:

Functions are often the comes

ECONOMICS OF FINANCE AND INVESTMENT: ESSAY INSTRUCTIONS

ESSAY QUESTION: EXPLAIN THE PORTFOLIO FRAMEWORK FOR INVESTMENT DECISIONS IN THE CONTEXT OF GLOBAL FINANCIAL MARKETS. DISCUSS HOW INVESTORS CAN USE HISTORICAL DATA ON INTERNATIONAL STOCK MARKET RETURNS AND A MATRIX OF RETURN CORRELATIONS TO BUILD UP AN EFFICIENT PORTFOLIO.(REFER ONLY TO ACADEMIC JOURNALS AND LEAVE OUT NON-ACADEMIC INTERNET SOURCES).

POINTS: PLEASE NOTE THAT THE WORD COUNT SHOULD NOT BE ABOVE 2500. PUT YOUR WORK IN CONTENT(OUTLINE YOUR POINT IN HEADINGS). MAKE YOUR WORK CLEAR AND SIMPLE BOTH GRAPHS AND RETURN CORRELATIONS.

Program and Portfolio Management

CONTENTS OF THE PAPER

I. CAUSES WHY PPM IS SIGNIFICANT TO ORGANIZATIONS

            1. Risks of Poor Management

            2.  Inherent Complexity of Projects

II. CASE STUDIES

1. Outsourced PPM

2. PPM Strategy Created Internally

3.  Project-Based Firm Thirsty for PPM Methodologies

III. JUSTIFICATION IN USING MODERN PPM

1.  Why PPM should be continued and get away with traditional?

2.  Alliance concept to fill inadequacies of Partnering

 

CAUSES WHY PPM IS SIGNIFICANT TO ORGANIZATIONS

This section defines the characteristic of projects in general with particular reference to the critical issues confronting organizations.  The difficulties that will emerge in this discussion can be readily implicates to the benefits of Program and Portfolio Management (PPM).  Since PPM has the ability to offer leadership structures and planning/ implementation strategies that are formidable for up-and-coming problems to penetrate, its use should be easily appreciated.

 

1. Risks of Poor Management

Project life-cycle generally consists of four phases (in order); namely: concept and initiation, design and development, implementation or construction, and commission or handover (2003, ).  Planning and execution stage are likely synonymous to the second and third stages which situate them in the middle of the project life-cycle.  In this position, planning has the highest potential to add value as well as the level of influence throughout the whole project.  On the other hand, execution has the highest cost of change   Since the success of the latter is precedent to the success of the former, poor management in planning alone can cost one to several objectives of the project.  However, underestimating execution contingencies to support or enhance planning inadequacies and loopholes can cause the same. 

 

Planning can also refer to several planning steps throughout the whole project not just a single or overlapping phase.  In fact, it is what the project participants used to build key objectives under project charter   As poor management takeovers this crucial undertaking, they may be installing over- or under-estimated value of the project.  Thus, irrational objectives could be created.  In addition, going further back into project selection, inability to carry-on key objectives that initially made the project acceptable as the project accelerates can entirely deter its value-adding potential.  For example, new technology (selected for customer-value centrism) is cheaply funded (cost-savings centrism) which resulted to sub-standard parts (defeats the former and supports the latter). 

 

Theoretically, poor project management can be a cause of internal conflict and inadequate authority ( 1981).  The former is characterized by poor schedule and budget control because of the absence of cooperation between the project team and functional organizations.  This readily explains how the planning stage under the project life-cycle can be ineffectively made with this situation.  As a result, time and cost objectives are at risk of distortion.  As the project team would want to keep the objectives, the conflict can induce bottlenecks especially in coordination.  In effect, the project team is bound to devise tactics to solve such bottlenecks which ultimately result in limiting the scope of the project, revising the original objectives and attempting to stand on their own. 

 

The latter is highlighted by non-commitment of resources, personnel and facilities to the project as the top-management failed to provide backing on the project manager.  The negative symptom of this is likely to emerge in the execution phase where the planned schedule and resource proposals are not diligently followed.  There can be delays in issuing budgets to pay for supplier invoice or using project members to do other responsibilities that can hamper project efficiency.  As a result, output targets like cash flows or early completion are reduced on their probability to be obtained.  Task floats that can be used for flexibility to delay or expedite certain activities can be exhausted due to such symptoms.

 

However, with these circumstances, project objectives are not entirely unattainable because usually there are trade-offs.  Using the integrated risk management model, project objectives can be transcribed to three most crucial project elements which is time, cost and quality 2003,).  Quality is the most complex and difficult to discern making it also difficult to evaluate.  The management can simply choose their best engineers and maybe in the right position to assume a quality output.  However, their assessment can only be figured out after testing and completion of the project.  As such, this situates cost and time in the forefront of project analysis and consideration to become the foundation of objectives.

 

The banana curve clearly shows the trade-off between time and cost ( 2003).  When project time is reduced, the cost usually escalates while the reverse is likely true.  For a project initiated by an average manufacturer, the curve is very useful to obtain optimal returns from the project.  This trade-off can be represented by two conflicting project objectives such as “To be able to finish the project as early as possible to position resources on their regular responsibilities and early inflows from the finished project” and “To implement the project efficiently to reduce the risk of loss and maximize project returns”.  From this, priority is necessary for effective decision-making.  This goes beyond time, cost or quality aspects but on how much the company believes on the feasibility of the project to provide benefits.  But the question is “What is the ultimate objective of the project?”

As such, when a poor project management occurred in the planning phase, task schedules may not obtain their optimal levels (e.g. allow maximum floatation for flexibility and contingencies) but the conflict may as well teach project members to be resourceful and put the project to a greater level.  Thus, a certain project objective (maybe an implicit one) that contributes to other project management knowledge areas like information communications is achieved even though schedule optimization has been a failure.  This is the same for execution stage.  When a contingent action is proposed and there is no support from the top-management, governance mechanisms (maybe another implicit objective) are adopted. 

 

It is necessary for project managers and top-management to provide an identity to the project at hand.  This will concretize the importance of the project objectives compared to organizational/ functional ones.  In this way, poor project management can be prevented in the planning and execution stages.  This will also limit the likelihood of the project to adversely affect implicit objectives that is beyond its scope.  Prioritization can be applied and trade-offs can be measured.  As this is in place, the final task is to prevent poor project management to emerge in both planning and execution stage.  The ideal situation is to filter planning problems and correct it under execution stage.  Otherwise, the project can face total failure of completion and all attached objectives will be bound also to demise.   

 

2.  Inherent Complexity of Projects

In reality, decisions are based from incomplete information and uncertainty about the outcome that gives rise to an intrinsic element of every project which is risks ( 2003).  As much as a project wants to avoid risks, it is unlikely to do so because the general rule is that higher (lower) risks post higher (lower) returns ( 1999).  This is concretized with the universal business doctrine to profit.  In addition, as the project not simply wants to have a partial competitive edge rather a sustainable one, complying with the four criteria on having sustainable competitive advantage necessarily accumulates greater risks ( 2003,).  When the project embraces valuable, costly-to-imitate, rare and non-substitutable capabilities, it already initiated to move its risks continuum towards total risks and away from no risk and limiting the assurance of the scope of risk management (2003).

 

For example, one of the root causes of a failed project is due to the level of innovation .  A high level of innovation is a candidate of producing a competitive platform like Amazon’s website that acts like a human salesperson (2003 ).  The project is likely to result to high design costs as “one-click” technology should be developed including purchase of necessary rights/ license to execute the project.  On the other hand, a low level of innovation may emerge from Amazon’s homogeneity with industry standards that restrains project initiation because it does not have the willingness to exploit the absence of innovation in the industry.  Due to this, a project feature usually entails high level of innovation.  This necessarily requires huge funding, technical expertise and restructuring from the company.  In the contrary, as risks are high, the company has to gamble.  It has to rely with the untested procedures, technology and techniques by exposing its liquidity and strategy to complete the project and derive anticipated returns.                

 

In this situation, external and internal scanning including competitor intelligence is of little help because uncertainty goes beyond the risk management scope.  Risks are identifiable but are hardly quantifiable because there is yet to provide systematic trend of risk occurrence associated with the innovation.  Thus, probability and consequences/ impact of innovation risks ( 2003) are difficult to indicate.  This positions any risk response under a highly subjective framework.  In heuristic studies like that of  (1983), information involving formal and probability characteristics that tend to obligate a person was less regarded than the more natural, informal and easier way of cognition.  According to  (2003), other common reasons of project failure are port estimation, inadequate planning, insufficient control and lack of commitment  which are the most probable consequences of non-objective approach. 

 

As observed, a successful feasibility study regarding an innovation is not an assurance that the project will also be triumphant.  In concept phase, poor estimation will emerge in indirect costing. In the design phase, flexibility of task schedules is tightened by certain innovation dilemma like being the first-mover.  In the implementation phase, human resource aspect of the project can be neglected as managerial skills would be overly-focus on anticipating difficulties from new and ambiguous technology.  In the commission phase, innovation testing can result to persistent problems that require overtime and extension of the completion date.  The overall phases of the project post threats to costs, quality and time due to the presence of large amount of uncertainties and risks.  This particular phenomenon can be associated with innovation’s integrated approach to companies ( 2003).

 

Aside from innovation, projects typically affect a set of stakeholders which includes customers, employees, suppliers, the government and the public.  What the project team and the company want are to minimize the negative effects of the project to them and maximize positive effects to aid in profitability and longer product life.  This is where legitimacy theory takes place (1996,) where an entity is required to provide evidence that it is indeed legitimate to be operating within a societal framework.  Indication of failure to legitimize includes environmental pollution, employee abuse and fraudulent marketing.  But stakeholders have their way to counter the company through hostile lobbying, product boycott and employee strikes.                             

 

In the contrary, the project is not perfectly funded, scheduled and customized according to specific needs of individual stakeholders.  The project requires prioritization as it cannot satisfy all of them (2003 ).  This is a rational strategy because the project has its own specific objectives that may not be intended to indirect stakeholders.  The inability to obtain this goal can also be caused by the lack of stakeholder focus.  As a result, most companies go on with stakeholder priority (e.g. customers) and leave others with minimum attention (e.g. environmentalists).  The latter, however, can pose project closure even when successfully completed if the product does not meet certain standards.  Due to this, environmental disclosures are used for corporate image-building ( 1996).

 

Options to mitigate possible retaliation of non-priority stakeholders are available to the company.  However, such are in nature, are simply reactive tactics where ambiguity of success are minimally analyze throughout the life of the project.  In addition, they are also necessarily includes unethical execution (e.g. greasing and fraud) to address any stakeholder difficulty.  As a result, project members are squeezed in a challenging situation.  If they will not use these options, they may risk not exploiting opportunities because of the associated substantial costs, time and quality constraints of a project with diversified stakeholders.  On the other hand, not having second thoughts to refuse such options may lead to risking reputation and conscience that can have strategic and personal complications    

CASE STUDIES

In this section, it will highlight the ability of PPM in addressing strategic problems and issues of a firm.  Either it chooses to create its own PPM plan or outsource it, the results are positive.  This explains the real case scenarios where PPM application proved to be useful.

 

1. Outsourced PPM

            PPM was used by a Fortune 100 finance subsidiary when confronted inconsistent project implementation, insufficient resource allocation for leading projects and minimal participation of actors in IT programs .  These bottlenecks disabled efforts to push funding to increase IT capabilities and be more competitive.  Thus, the subsidiary decided to get advice from opinion leaders in the industry.  The consultant had initially assessed environmental factors that face PPM of the client.  This is followed by creation of several frameworks on how to improve current PPM structure including appropriate leadership structure in PPM.  

 

The focus of the engagement is human resource particularly recruitment of right personnel to head the chosen governance and PPM strategies   This is also emphasized when the consultant mentioned the core role of developing commitment of the employees regarding changes in current PPM.  As a result of this effort, the client had accelerated the required platform for appropriate PPM to be accepted and integrated into operations.  Funding requirements are addressed triggering the renewed competitive vigor of the subsidiary.  In the management side, it learned how to prioritize projects emanated in establishing IT components.  The commitment resulted into increased cooperation and communication across departments which led to efficiently allocating budgets and resources.     

 

2. PPM Strategy Created Internally

In 2001, Gerling and NCM merger initiated the cornerstone of the business combination through a project that will integrate their IT capabilities (1990).  This project is considered a crucial step to achieve synergy in three strategic dimensions such as strength of international network, range of product offering and size of market base.  In the onset, the success of the project can provide savings of over 15 Million Euros (i.e. 30% of combined IT budgets).  Since the companies are two of the biggest insurer in the world, the undertaking is taken seriously.  PPM strategy is focused on the alignment of IT strategy with business strategy.  This is assured by means of tapping external consultants, top-level management, pool of task groups and close coordination.  Time is the driving force in completing milestones and assessing results at each project stage. 

 

There are three IT project phases ( 1990).  Due diligence is the evaluation of resources of two firms and addressing combination difficulties.  Pre-merger integration focused on anti-trust laws of the merger.  Post-merger integration is where IT development is actually held.  Results are phenomenal.  By time-boxing each activities, substantial time is saved.  For example, instead of consuming time and money in choosing a target IT system, the existing system of NCM was used not only because it is more strategic but also its integration with the system of Gerling can save time.  Further, time-boxing also allows other benefits to ensue such as finding the right channels where consultant evaluators, task groups and management committees can communicate.  The project concept of time and cost trade-offs shown in the banana curve is adhered.  As a result, the merged firm enjoyed IT benefits and savings while recovered easily the investments needed to expedite the project.  

 

3.  Project-Based Firm Thirsty for PPM Methodologies

Oticon is a global manufacturer of quality hearing aids which is one of the pioneers of project-based organization.  In 1991, it adopted a project-based structure referred as spaghetti organization in an effort to retain leadership in the sector (1994).  The primary goal of such move is to increase innovation by creating strategic circles and groups to prevent slipping under the competitive products being offered by other companies.  The basic tenet of each project is to "Find something to do or loose your job".  Employees have the independence to choose at least one project group.  Rewards are highly based on contribution to the group and feedback from the project leader.  There are no specific leaders to report rather to focus on the project.  Each group has high flexibility in terms of time, place and nature of accomplishing targets.  The basis of group appraisal is based on results rather than processes.  There are minimal departments with administrative staff serving the significant part in assisting project teams regarding administrative issues.

 

Without PPM, project groups at Oticon would be unguided.  The absence of reporting manager can aggravate complexity attached in project management.  Lack of experience proved to be large contributory factor in managing projects.  PPM use is also eminent in the high heterogeneity of the composition of each group.  As employee would be exposed to various personalities and group work ethics, absence of project plan can detriment identification of member strengths and inability to anticipate attitude clashes.  Planning and taking course of action inherent to PPM is useful in these circumstances.  Setting the group goal to project results can minimize behavioral differences and focus effort according to project plan.  The structure is compatible with PPM because uncertainty is obvious when an employee enters a new group from time-to-time.  As a result, certainty measures become insignificant shaping innovative and individual ideas.  Members are not sure whether their ideas will be readily accepted but otherwise should push them as inactiveness can lead to lay-off.       

 

JUSTIFICATION IN USING MODERN PPM

            This section explains the advantages of using PPM continuously as it will absorb contemporary improvements in the field of project management.  Being satisfied with historical successes of current and past PPM schemes can undermine the ability of PPM to achieve new heights and exploit new opportunities that the organization has yet to discover. 

 

1.  Why PPM should be continued and get away with traditional?

There are various advantages that a firm can derive when it has an appropriate PPM (2004).  The world of today is exposed to abrupt changes that can disrupt business operations.  As the Newtonian view of the world focus on certainty and facts, it cannot address the problems posted by the environment.  If the firm will cease adoption of PPM, it may not adjust its decision-making framework based on modern view which embraces strategy, continuous change, various outlooks and leadership.  Pluralist environments are mitigated by PPM that results to development of capabilities and efficiency in operations.  Inherent to PPM, each project assessment is applied with systems thinking, complex theory and other combinations of field of knowledge to provide integrated conclusions.  Common applications of modern PPM are used in business areas such as defense, information technology, outsourcing and change management. 

 

If PPM in a project-based firm will be discontinued, they will forever be trapped in a certainty-based scheme (2004).  They will not be able to appreciate the importance of risk-taking and learning curve.  For example, if a project is new to the firm, it will likely not take the project due to certainty limitations.  As a result, the opportunity is lost while the company aggravates its inexperience in the issues because of the lack of confidence and initiative to tackle substantial risks.  On the other hand, an alternative PPM route is tried by risk-averse firms.  Partnering enables them to commit on specific projects that could be new to them by spreading the risks to partners.  Although a creative position to replace PPM, incompatibility of organizational goals and complex contractual obligations posted challenges to success.  This is because traditional project management concepts are still in used.  As a result, certainty assumptions cannot fit because there are really no complete contracts as they are subject to incomplete information and opportunistic behavior.

 

Other feats to displace modern PPM include six sigma, evolutionary acquisition and strategies applied in IT adoption ( 2004). They are focused in minimizing the time required to finish the project for the purpose of maintaining certainty to acceptable level.  Thus, they are coinciding with traditional project management techniques.  However, they are highly tarnished by unexpected events during the short-term projects.  Although completion time is reduced, it is but right to conclude that they are not exempted from untoward incidents that can delay the project.  Further, leadership in these kinds of project is autocratic while disabling motivation to the workforce.  They are also prejudice to the learning of a core group rather the entire organization and undermine synergy implications. 

 

Modern PPM such as Next Generation Project Management (NGPM) is a system rather a collection of procedures eminent in traditional PPM ( 2004).  In effect, limitations of myopic approach to project areas are mitigated by hastening the dogma, "the whole is more important than the sum of its parts".  It appreciates not only complexity of social systems within an organization rather its evolving mechanisms.  It adheres to the idea that people changes over time and governance structures must adjust accordingly.  Process governance, thus is created, which is applied to expecting emergent situations as opposed to static environments.  It is to note that this appreciation of NGPM automatically undermines certainty and facts in favor of vigilance to emerging events within the organization.  Autocratic leadership is dissolved as opposing views are studied, accepted and applied with managerial voluntarism.  This approach ultimately falsifies "complex panic" and send message to organizational actors to relax because they have simplified the impact to determine solutions easily.         

 

2.  Alliance concept to fill inadequacies of Partnering

Alliance concept is gaining ground in project management in Australia ().  It is flexible as it can be used in both simple and complex situations.  As observed in the earlier adoption of the concept by major utilities company in the country, one of its advantages is the "last voice" engrained in the relationship between the former and contractors.  However, in the latter stages of the adoption by several Councils, issues such as limited resources and inability to impose provisions for litigation against contractors in case of failure to deliver triggered the upgrade of some features.  Some modifications are the following; contractors can optimize the purchasing system accordingly, open communication of Council to its limited resources, exchange of employees between Contractor and Council and Contractor is responsible to the delivery of intended results.  As the insurance market had experienced downturn in recent years, this structure had become the framework of alliances. 

 

The case above shows the importance of embracing PPM continuously as operations, contractor relationships and environment undergo significant change.  If a company wants to be successful, it has to keep its planning and implementation framework vigilant to the contemporary demands to business model.  PPM is not static and inability to incorporate realistic events that have shaken past knowledge would lead to inefficiency of its use.  Organizations that see the ineffectiveness of PPM in their operations as they cannot see tangible results can be categorized on those organizations using traditional project management techniques.  Aggravatingly, when PPM will cease use, it can forever lock the firm "inside the box" and hide potential from being tapped.  It will continue to calculate and measure all possibilities until the time of its collapse where it finds it does nothing to tackle the issues that attack the firm.  Early in its conception, organizations existed due to ideas generated by its founders.  It will not be established if they are risk-averse of untoward events.  Through PPM, this thrust will continuously be prevalent in operations as the organization is not afraid of risks and have plans on how to face or address them when attacked.

Bibliography

 

OCCUPATIONAL HEALTH AND SAFETY - FATIGUE MANAGEMENT

Fatigue Management Techniques: Reducing the impact of stress in the workplace

            Stress in the workplace often happens. It is a common problem among workers in various parts of this world. According to  (1997) stress is defined as the pressure, tension, or excess strain and its profound effects on the mental and physical health support that fact that we live in a high stress world. Aside from stress, fatigue also occurs in a number of workers in the work place. According to   (1996) fatigue involves a diminished ability for work and possibly decrements in attention, perception, decision making and skill performance. In addition,  (1997) defined fatigue as an individual’s multi-dimensional physiological-cognitive state associated with stimulus repetition which results in prolonged residence beyond a zone of performance comfort. Stress and fatigue in the workplace could be due to a number of factors. The work environment could contribute to the physical or mental pressure that the employee feels. Furthermore, poor lifestyle choices could also be partly responsible for the fatigue and stress that a worker feels.

            This paper examines the fatigue in the work place. A discussion on the issues of sleep and stress cause by poor lifestyle choices will be given in this paper. Moreover, fatigue management techniques and the impact on a person with fatigue both at work and home will also be discussed.

I. Stress

            According to the  (2003) stress in the workplace is the outcome of the interaction between the individual and the work place. For the worker it is the knowledge that he or she is not able to cope up with the demands in his or her job together with the negative emotional response. What are the causes of stress to an individual particularly the worker?

            Stress can either come within the work place or outside the work place. Stress in the workplace includes pressure to finish the task, different shifts, physical factors in the work environment such as noise, heat or cold, unrealistic deadlines. Stress outside the work environment involves family problems, second job, poor physical and mental health, and poor lifestyle choices.   (2007) have reported that about 40% of workers have reported that their job is stressful, 25% stated that their job is the no. 1 stressor, ¾ of employees believe that the workers nowadays have more stressful jobs than the prior generations, and 29% of workers felt extremely stressed at the workplace. In addition,  (2001) have identified that 80% of workers feel stress on the job and 25% felt like shouting and screaming due to job stress.

II. Signs and Symptoms of Stress

             (1998) identified two forms of symptoms of stress in the workplace and these are the personal and the organisation symptoms.

Personal Symptoms- personal symptoms are divided into four categories and these are physiological, behavioural, cognitive, and emotional.

            Physiological- symptoms include increase in the blood pressure, pains in the chest, palpitations of the heart, hyperventilation, headaches, gastro-intestinal disorders, sleep disorders, and fatigue. (1998) cited that 96% of social workers stated that their job is stressful and 58% have felt the manifestation of physiological symptoms of stress.  

            Behavioural- symptoms include poor patterns of sleep, decreased in the reaction times, and erratic behaviour.

            Cognitive- symptoms include difficulty in concentrating on the job and memory, and the inability to make decisions. 40% of women working in different shifts had perceived that they experience cognitive behavioural effects of fatigue ( 2002).

            Emotional- symptoms include depressed mood states, anxiety, irritability, and loss of self-confidence.

Organisation symptoms- transforming the factors that contribute stress in the workplace may produce more productive results that focusing on the personal factors. Just like the personal symptoms it is also divided into categories and these are behavioural and emotional.

            Behavioural- symptoms include the high level of absenteeism or sick leave, high turnover of staff, poor industrial relations, poor productivity and quality, increased in the rates of illness and accidents in the workplace, increased in the claims of stress by the workers, as well as, retirement rates. According to  (2006) 55% percent of Americans have reported that they are stressed at work and 25% of Americans miss 16 days of work due to stress.

            Emotional- symptoms include having low moral and loss of contribution of the employees in the planning and the process of improvement in the workplace.  

            Due to stress caused by fatigue and poor lifestyle choices the performance of an individual in the workplace could be greatly affected in a negative way. Stress occurs whether the person is employed in a white collar job or blue collar job, according to the study of  (1999) there is little difference between the individuals working in a white collar job and blue collar job in terms of the signs and symptoms of stress such as depression, satisfaction in life, and physiological complaints.

III. Categories of work-related stress

            (1990) have grouped four categories of work-related stress and these are:

  • Work load- wherein the tasks could either be too much or too little and too difficult or too easy.
  • Work conditions- wherein there is poor organisational structure in the company, too much politics in the work place, the design of the job is not good, poor organisational culture, and the management has low control over the work of the employees.
  • Work patterns- the patterns of job in the workplace could also contribute to the stress of the employee, patterns include shifts in the time of work, and repetition of tasks.
  • Work roles- the role of the worker in the job also adds to the stress especially if the roles are ambiguous, the demand of the job could emerge conflicts within or outside the workplace, and disagreement on the commitment with personal acquaintances and the job.

Exposure of individuals to the stressors in the environment particularly the workplace does not inevitably cause serious health problems in people ( 2001). Even though stress may co-exist with feelings of emotional distress, and may notably affect the well-being of an individual, it does not necessarily lead to a serious psychological and physiological disorder. Minimal stress is also important in the work because without stress workers may find that their task in the workplace will be boring and their performance suffers because they will feel unmotivated. On the other hand, if there is too much stress in the work place the individual’s performance in his or her job will suffer greatly and can even interfere in his or her actions. Due to stress  (1997) stated that the American industry loses $300 billion annually because of the lost hours in absences of the employees, and the decrease in the productivity and efficiency of the workers.   (2001) reported that approximately 150,000 workers in the United Kingdom have taken leave due to stress-related illness wherein the British Industry have lost an estimated £370 million a year.

IV. Fatigue

            Fatigue is the state of the muscle, and viscera or central nervous system of an organism, wherein it has prior physical activity and mental processing, but in the absence of enough rest, the outcomes would be insufficient capacity of the cells in the body to sustain the original level of activity by utilisation of the normal resources in the body ( 2001). There are two types of fatigue the central and the peripheral:

Central Fatigue-  (2004) defined central fatigue as fatigue in the central nervous system which occurs in the large portion of the intercerebral control circuits that is due to the repression in the level of voluntary exciting that are subdued in numerous motor units to the level of voluntary neuromuscular junctions and the firing frequency. In addition, according to  (2001) the central part to fatigue is described as the decrease in the neural drive or nerve-based motor command in the working muscles wherein the outcome in the decline in the output of the force.

Peripheral Fatigue- according to  (2004) peripheral fatigue a disorder in the neuromuscular junction transmission and metabolic disease that is due to fatigability of the muscles wherein it is characterised by the failure to maintain the force during contraction of the muscles.  

V. Physiological bases of Fatigue

            Fatigue has a number of physiological bases, according to the         the following bases are the physical exertion, sleep disruption, circadian disruption, domestic and social factors.

Physical Exertion- according to (1988) it is a common source of fatigue wherein the level of fatigue depends on the frequency and length of application of the forces in the muscles, as well as the nature of work. In addition,  stated that physical exertion could be measured in many ways like electromyography, measuring the oxygen consumption, and counting heartbeats. The level of fitness of the worker plays an important role in the degree of fatigue that he or she experienced in the workplace. If a worker is not physically fit to perform in jobs that need a great amount of physical effort like manual labour, he or she will experience a tremendous amount of fatigue due to physical exertion. Furthermore, if a worker is not disciplined enough to take care of his or her health then fatigue could be easily felt by the worker.

Sleep Disruption- in order to sustain the alertness of an individual in the work place, he or she needs a specific amount of sleep, however individuals have different needs in sleep and the factors that contribute to these differences are not yet well understood ( 1991). Moreover, if an individual have reduced his or her time of sleep by one hour it could cause increase in the level of sleepiness and can even lead to severe outcomes if it continues ( 1981).  (1994) stated that the quality of sleep and its continuity is a significant factor that could affect the consecutive alertness and performance of a worker. Sleep is very important to all individuals because lack of sleep will lead to stress and fatigue in the workplace. If an individual chooses to sleep late or not sleep at all, the result will be devastating because he or she will either be absent on the work or go to work but have a bad performance. According to (1991) there are three aspects in the work schedule of an individual that could disrupt sleep and these are:

·         Longer hours in the workplace

·         The hours of job is irregular

·         And working in schedules that require people to work even though they should be asleep.

Circadian Disruption- the circadian biological clock is the part of the body that efficiently programmes people to sleep during night time and be awake during the day according to ( 1995). Moreover, it is the one that relates the daily cycle that lives in the functions of the physiology and behaviour of the body and synchronises with the cues of time in the environment.  (1994) stated that the time and quality of sleep of an individual relies on his or her circadian clock. And an individual that is not able to adapt his or her circadian clock to shifting work schedules could degrade the efficiency and productivity of his or her performance which can lead to stress and fatigue in the workplace. Poor lifestyle choices could also contribute to the incomplete adaptation of the circadian clock, an example if the employee’s schedule was changed from dayshift to night shift and does not gain enough sleep during day time to adjust his or her circadian clock, then most likely he or she will eventually get stress.

Domestic and Social Factors- when a worker changes schedule due to shifts in the work place, they face challenges in incorporating their patterns of work with his or her activities in life. In the case of workers in the night shift, most of them are unable to socialise with their relatives and friends, do the work in the house, or even performs social activities such as shopping and watching a movie because he or she must rest and gain enough sleep to perform his or her job at night. The inability to do the activities could eventually cause stress and fatigue to the worker because once in a while he or she needs these activities to keep himself or herself from the stress in the work place and if the worker is unable to do that most probably he or she will succumb to the pressures of work and stress.

VI. Causes of Stress

            According to  (2005) workers such as the transportation equipment operators experience fatigue and stress due to the following reasons:

Extended Work and Commuting Periods- most jobs especially in manual labours require longer working hours, therefore longer work hours could result to fatigue. The extension of working hours and inadequate period of sleep could result to stress and fatigue in the workplace.

Work Schedules- the changing work schedules of workers also contributes to the fatigue and stress of the worker. The following are the different work schedules that contributes to fatigue and stress in the work place.

            Split-Shifts- this type of work schedule could increase the possibility of the worker to be fatigue because the schedules are not conducive to gaining sufficient sleep.  When the work schedule requires employees to gain their sleep during periods that must be awake the quantity and quality of sleep greatly suffers.

            Changing or Rotating Work Schedules- some jobs require frequent changes in the schedule, the different schedules could lead to transformation in the time of day wherein the workers could gain sleep that may result in inadequate levels of rest.

            Unpredictable work Schedules- the unpredictable work schedules could force the workers to change their sleeping patterns which lead to low-quality of sleep. Moreover, the unpredictable schedules could also make workers wake sooner than necessary so that they could come to work on time.

Lack of Rest or Nap periods during work- a number of jobs do not require workers to take naps during work, however a number of research have pointed out that planned napping by the employees could restore the alertness of the workers in the job. (2005) found that performance improved after longer naps.

Sleep Disruption- disruptions in the sleep could make returning to sleep harder; studies have shown that disruption in sleep could have an adverse effect on the alertness of a worker during daytime. A study on the performance of anaesthetists, have shown that performance in the job is worse if their sleep has been disturbed (, 2003).

Inadequate Exercise Opportunities- most of the workers especially from the white collar jobs do not have enough time to exercise therefore these people have the greatest probability to be stress or fatigue, studies have shown that individuals who exercise regularly have fewer episodes of being sleepy especially in the workplace. In a randomized investigation of 197 men and 160 women,   (1993) showed that subjects who participated in a walking/jogging aerobic program at an intensity of 60 to 73 percent of maximal heart rate (30-minute duration, 3 to 5 times per week) significantly lowered their stress scores and improved perceived self-esteem, mental outlook, and mood compared to the control subjects.

Poor Diet- the food that people eat could be a factor in the quality of sleep an individual obtains some foods that could disrupt sleep are spicy foods which can cause heartburn during sleep that is why it must be avoided prior to bedtime, drinking alcohol could induce an individual to fragmented sleep, and drinking drinks with caffeine could delay the sleep of an individual.

            Aside from the ones mentioned by the Transportation Research Board,         discussed in her paper that individual factors and lifestyle of an individual or worker may contribute to stress and fatigue to. The different personality variables could also be involved in stress at work are the type A behaviour patterns, hardiness, locus of control, negative affectivity, and self esteem. These factors, according to  (1987) moderate the relationship among stressor-stress-strain, it can influence the evaluation of the environment, it can even create stressful environments, have the power to affect the range of responses to the stress and coping mechanisms.

VII. Management of Fatigue and Stress in the Workplace

            Fatigue and Stress could greatly affect the performance of the employees in the workplace, therefore the management as well as the labour unions must find ways to help ease and manage stress and fatigue in the working environment. Working hours is usually one of the main reasons why most employees experience stress and fatigue in the workplace. In order to counter it government agencies create measures. An example discussed by the (2006) is in Western Australia wherein the        released a code of practice on the working hours which provides guidance in the application of risk management to fatigue in all industries. The Code is based on management assumptions that are added through prescriptive guidelines for a wide range of risk factors. The launch of the Code has been supplemented by education campaign in order to let the management of various industries understand and be aware of their responsibilities to their workers. (

2005)

In New South Wales   2005 was introduced to reduce fatigue among the long haul truck drivers wherein it requires the risk of harm from fatigue to the health of the driver to be assessed, controlled, and eliminated (  2005).

In Queensland      in 2005 wherein it provides guidance on decreasing the damaging effects of fatigue and stress by utilising risk management principles

            In        program was launched in 2003 wherein it enhances and improves the health of the driver and decrease the negative effects of fatigue in workers in the road transport.

            In the Northern Territory, the        introduced in 2001 a Code of Practice on Road Transport Fatigue Management, which gives the operators the basic set of important principles that they must apply in the management of fatigue in the workplace (  2001)

VIII. Strategies to manage Stress in the Workplace

            The management of stress and fatigue in the workplace must be done in order to avoid problems to be huge. Managing stress is important in order to cope up with the load of work in the workplace. According to  (2004) strategies in coping up with stress are grouped in the following categories and these are:

Direct Action Coping Strategies- wherein the person tries to counter the stressor it involves devising a plan to get out of the stressful situation or confronting the person or the situation that causes stress.

Action Inhibition Coping Strategies- it is a response to stress wherein the individual does nothing from doing anything that could worsen the scenario it includes waiting for information, not responding impulsively, and waiting for other people to help cope up with the situation.

Information Seeking Coping Strategies- it is appropriate to use in situations that are ambiguous. Depending on the facts obtained the response of the person could either be low or high.

Intrapsychic Scoping Strategy- it includes thinking about the stressful situations in order to decrease the emotional impact, this strategy could enable the person to realise that he or she is placing too much relevance on the stressor or the result that he or she devalues the potential impact. The interventions in the stress management are classified into primary, secondary, and tertiary approaches (  2000).

Primary Approach- in the primary approach it can be on the national level and the organisational level. Strategies that can be utilised in the national level are having legislation, monitoring systems of the government, and the active transfer of information regarding risk management in stress and fatigue in the workplace. In the organisational level, stress prevention are being implemented and discussed in the development of the organisation.

Secondary Approaches- it emphasis on decreasing the impact of stress response before it worsens; approaches include training the workers to be flexible with the stressors in the workplace.

Tertiary Approaches- these approaches emphasis the improvement of the determined stress condition. Kendall et al discussed that in the workplace in Australia tertiary stress approaches include case, injury, and disability management. Tertiary approaches could also include post-traumatic assistance and psychotherapy ( 2000).

Aside from the approaches for stress management  (2002) discussed some countermeasure that workers could do in order to combat stress and fatigue in the workplace and it includes the following:

Obtaining adequate sleep- researchers have agreed in an umber of studies that adults require an average of 7.5 to 8 hours of sleep every night to be alert and perform a good job in the workplace.

Napping- when utilised in an appropriate manner napping can be a good strategy for supplementing inadequate sleep at night and could even improve the alertness of the worker in the job.

Anchor sleep- anchor sleeping could be utilised as a coping mechanism for situations wherein a worker cannot obtain a full and continuous eight hours of sleep during night time. Anchor sleep has the benefit of stabilising the circardian biological clock of an individual.  

Caffeine- it is one of the most widely used countermeasures for fatigue usually drinking coffee, it has the advantage of breaking the routine in the job that causes fatigue and stress.

Good sleeping environment- a good sleeping environment is important in assuring the individual will get adequate sleep. The environment should be quiet and dark and the temperature must be approximately 65°F.

Case Studies

            (2006) discussed some of the case studies in fatigue in the workplace and these are:

Fatigue Analysis of Shiftwork Scheduling

In a global forestry company in Canada, the management want to determine if their shiftwork schedules have the probability of inducing mental fatigue. After analysis of the data the human resource department have identified that the shiftwork schedules contribute to excessive fatigues. The company developed implemented new policies such as prohibiting driving after 17 hours of work.

            In air Canada’s Pilot Union the group asked for analysis of fatigue for the layover schedule on Vancouver to Hong Kong Flights, after utilising the actigraph technology and FAST modelling the result revealed that an 18 hour layover have the least amount of fatigue.

Development of a Napping Strategy

            The Richmond Hospital in Canada allows their nurses to take naps during night shifts. The human resourced department of the hospital is determining the best time to take a nap to decrease fatigue during night shifts. Napping for 20 minutes is not enough therefore recommendation were made to enhance napping and sleeping at work.

References:

Program and Portfolio Management Essay Instructions

I work for an organization that is project based. My organization has survived for the last 20 years. My senior management is of the opinion that program and portfolio management only adds to over heads without significant other contribution.

I need to make a case for the PMO's; so all the good stuff about them.

e.g. who needs them (we are a project based organization) I have to make sure they know that we need program and port folio management.
PMO's their benefits (benefits of having them)

A Sample Scholarship Letter to ESF College

To whom it may concern:

I am providing this essay as part of the requirements of my entrance to ESF College. Because of family crisis and financial hardships, I have decided to apply and be a college student at the prestigious ESF College. I hope that the information contained in this letter can be kept confidential and can be treated as such. It is my wish that the information must not be disclosed to anyone in your academic institution who would not be involved in the decision to accept me as a student in ESF College. Additionally, I hope that the information would not be disclosed to anyone outside of your university without my consent.

As a child I often accompanied my father to various biological laboratories and spent hours watching him work. When I was older, I sometimes read on case studies on biology, sought the advice of experts, and even performed my own experiments. This experience instilled in me the desire to become a biotechnologist someday, yet I understand that the biotechnological world today is more complex. This complexity requires more education, and with that in mind, I wish to enroll at the Biotechnology program offered by ESF College in order to achieve this meaningful career goal.

In addition to my helping out in my father’s occupation, I have had a particular work experience that further enhanced my qualifications for being a Biotechnology student at ESF College. My profile indicates the academic excellence I have established at my previous high school, and what that performance entails is an emphasis on being a good student, a role model that is. Further, as a former student at the said high school, I have gained valuable expertise in managing my activities and joining meaningful science clubs. These experiences have allowed me to develop my social and people skills, which are extremely important in an increasingly service-driven Biotechnology degree.

Not all of my scholastic records involved focusing merely on academic excellence. I was a team captain of the Chemistry and Biology Quiz Team in my secondary school life at my previous high school. As a team captain, I had to be solution-minded, thinking accurately and quickly because I had to work things out within a very limited time. In daily interaction with people, I realized that these qualities are the same as what a biotechnologist should possess.

My successful academic tenure at my previous high school is one reason why I am confident that I can also achieve overall academic success as a Biotechnology student of ESF College. In four years time, I am positive that I can attain a Bachelors of Science in Biotechnology degree with teaching certificate. If I am accepted at the prestigious ESF College, I promise to also make time for a variety of extracurricular activities, including working for organizations.

My positive academic experiences so far have resulted in my desire to continue my academic endeavors, hopefully at ESF College.  I believe that pursuing a Biotechnology degree would allow me to achieve my goal of becoming a competent biotechnology expert, and hopefully opening my own laboratory someday. Thank you very much and I hope I receive a favorable response from all of you.

Managing people & Organizations

QUALITY AND CARE GOVERNANCE

 

INTRODUCTION

The healthcare professions all involve life and death situations. In these situations, quality is crucial and quantity is irrelevant. In my place of employment, there are increasing medication errors happening in my hospital which may due to many possible causes. But as we know that patient safety and quality care is very important. The blame is placed on aspects of manpower (labor), management, money (finances), and materials. It is time to seriously rethink, redesign, redevelop and reinvigorate the way governance is practiced in my current place of employment. There is a need for better quality and care governance.

Clinical governance provides a framework for a coherent, local program of quality improvement and an opportunity to share best practice. For healthcare professionals, clinical governance will be about building upon and linking together many of the activities that they are already involved in, which help to promote and improve standards of patient care.

Medication errors that occur in many healthcare organizations mirror the increasing problem worldwide of deterioration of health care. The deterioration of healthcare work and its environment is a major problem of concern to the healthcare leaders or managers. A healthy work environment is necessary to bring about quality healthcare service to the population. An unhealthy work environment would create a devastating impact not only to the healthcare professionals and the clients but most importantly on the effectiveness of the entire healthcare system.

            The possible root causes for this apparent deterioration of healthcare work are outlined in the succeeding sentences. (1) Healthcare professionals are placed in leadership positions even if they are not adequately prepared and without adequate support for their roles. (2) Healthcare professionals, especially in the case of nurses are assigned to handle many clients than they can handle. (3) Decision-making within the work environment is done only by one department, without consultation of all the other parties that are involved.

Many medical-surgical nurses experience difficulty when calculating drug dosages. One study revealed that 56% of nurses could not calculate medication dosages to a 90% proficiency rate. In addition, nurses made significantly more errors in calculating intravenous drug dosages as compared to oral, intramuscular, or subcutaneous drug dosages ( 2004).

The nurse should double-check the six rights of safe medication administration and know the desired action and side effects ( Perry, 2004). If the medication has an antidote, it must be available during administration. When administering potent medications, the nurse must assess vital signs before, during, and after infusion.

The resulting environment created by these situations brings about many negative results in the working environment. When inadequate leaders are placed in positions, there will be dissatisfaction and high turnover for healthcare leaders and the staff as well. For example, when each nurse is assigned to handle many clients, this would result in confusion and the clients are placed at risk for errors and injury. The nurses are also frustrated, angry and stressed out. Decisions that are made without consulting all the parties involved places everyone involved – doctors, clients, nurses, managers and other staff - at risk. The overall quality of care offered by the healthcare service would be diminished.

In the case of Brighton Hospital, they needed drastic adaptations to changes presented by the changing times. However, the system that they have is not as updated, therefore, they needed to implement change quickly. In the following pages, discussion on the change and adaptation shall be discussed.

 

CONTEXT

What were the forces of change that caused the reorganization of Medical Records department?

            Brighton Hospital was faced with an enormous task: To be able to make room for bigger and more advanced medical records department. This was due to the fact that they were getting much more out-patients sue to the closing of other hospitals. They needed to adapt to the changing workload and the demands for more efficient and more modern procedures at the records department.

It seems that there is also an apparent poor quality of management and leadership in this case resulting to the poor quality of service. Management is necessary to make labor and capital productive and requires converting economic principles into rules of behavior that can be clearly communicated to employees, bosses, clients, and other partners. Management in health care is not simple. In management it is people, not things that have to be managed, and because decisions must be made under uncertainty, based on expectations, without ever really knowing the entire facts one would like to have, it makes it all the more complicated.

Applying the four key components of clinical governance to the problem is helpful. The activities involved in clinical effectiveness will include finding out what is the best known practice a specific medication administration, appraising the available evidence, changing the practice by educating the health care staff, and confirming through monitoring or clinical audit that actual practice is consistent with best practice.

The human resources component of the clinical governance framework would aim to ensure that the health care staff has the right education, adequate training and development, skills and competencies to provide quality care to patients which include the proper medication administration. The expected outcome of the recommendations should be a decrease in the incidence of medication errors.

To address the areas that needed change, the management seemed to have sought to apply 'Total Quality Management' (TQM) to their organizations to help them plan their efforts. The promise of superior performance through continuous quality improvement has attracted a wide spectrum of business to TQM, with applications reported in many domains including healthcare .

            There are some advantages that clinical healthcare services sector guided by the principles of TQM. Basically, the Total Quality Management philosophy of management within clinical healthcare services sector is customer-oriented. All members of a total quality management (control) organization strive to systematically manage the improvement of the organization through the ongoing participation of all staff in problem solving efforts across functional and hierarchical boundaries.  TQM incorporates the concepts of product quality, process control, quality assurance, and quality improvement. Consequently, it is the control of all transformation processes of an organization to better satisfy customer needs in the most economical way. Total quality management is based on internal or self-control, which is embedded in each unit of the work system (technology and people). Pushing problem solving and decision-making down in the organization allows people who do the work to both measure and take corrective action in order to deliver a service that meets the needs of their patients.

 

Describe and contrast the culture of the Medical Records Department before and after the reorganization.

            Before the reorganization occurred, the department was undoubtedly efficient, no matter how out-dated their techniques were. They also maintained the good relationships they had with the rest of the hospital staff. They had occasional meetings and greetings that helped maintain these ties. However, as and the reorganization came, there were significant changes in the department. There were a number of restrictions that removed the “homey” feeling of the department. Furthermore, the efficiency of the department was suffering, as well as the ties with the rest of the hospital staff. It seemed that the reorganization and the new system were not able to address the needs of the hospital, in contrast to the older system. The un-updated system worked much more efficiently and did not alienate the staff from the rest of the department. However, with the new system, the staff was removed from their normal sunny disposition and was forced to be alienated from the rest of the hospital staff.  Furthermore, they were piled with more and more tasks, and they were not able to efficiently work on these. They continued to have back lags. When they used the old system, they did not have any lags, and even had time for breaks.

Every organization has a formal power structure of supervisors, managers and executives. There is also an informal power structure in the shadows of organizational culture (, 2002). These are the people others look to because they know how to work the system to get things done around the office, the warehouse, the plant or the shipping department. These are, simply stated, the ordinary workers and employees. It is them, the so-called informal power players, who are most likely to feel threatened by new ways of doing things and most likely to resist change if they are being ignored by management.

 

 

 

Describe and evaluate the role of in introducing the new system.

 

             role in the new system is very vital in spelling the success or failure of the undertaking. As the lead officer, he should, more or less, view the all the aspects of the undertaking, not only the technical. This is because the answer to the problems lies not in the obvious.

According to  (2002), the most important ingredient for successful change is employee involvement--their interest, active participation, energy, creativity, good nature and support are essential. The department should gain the support of all its employees by empowering them. And, to maximize the return on employee effort, it is fundamental that the employees of the company are vested in the end result.

Employees can contribute new ideas to increase operational effectiveness, bond together to create an enhanced sense of teamwork, instill a new feeling of purpose and energy during a time of possible confusion and even chaos, and provide feedback on the change itself ( 2002).

With the employees support and new ideas, the changes that the company planned may be enhanced to a more effective way for the good of the whole organizations.

 

 

            As the supervisor of the new department, she carries the burden of bringing the new to the old. She was part of the old team, and as such, she holds the key to the acceptance of the employees to the change. She has the ability to let the employees see the possibilities that the new system would bring to them.

 

What would you have done differently in this situation in terms of bringing about changes to the culture and structure of the Medical Records department?    

            If given the chance, I would, first and foremost, attempt to incorporate some of the few cultural aspects of the old system to the reorganization of the department.  As was mentioned, they had worked efficiently enough using their methods, why not continue to use that? But of course, we should add slight modifications. According to (2002), the secret to effective change management is to reprogram the culture slowly but steadily. The real key to successful change management is to be able to ensure that the business and culture are in sync with each other. The culture must constantly support the business initiatives. Left unattended, the two will get out of sync, and the culture will deteriorate and bring down the business or make it less efficient (2002). By culture, it includes the employees and how they do things in the organization. If organizational culture does not support the change needed by the business, then most likely the whole organization will suffer. There are some recommendations that can help overcome employee resistance to change and get business and culture in sync.

Studies of change management in organizations suggest that employees are more likely to respond to an intervention when they directly contribute to its development or when the content of the intervention accurately reflects their personal concerns (2002; 2002). In order for an ethics program to be accepted by employees, it is thus important that their perspective be incorporated into the design by whatever means are most appropriate to the particular cultural context (1994).

 

What would you do now if you were ?

            If I were  I would hold a meeting with the staff. I would ask them to voice out their opinions so that I would know which part of the new system is wrong. Then I would draw a new system that would incorporate some good aspects of their old system. That way, they would more comfortable and at ease working in the department. I would also give them mandatory overtime every Friday of the week to take care of any lags.

According to  (1997), generally, switching of jobs of employees is because of their want for changes and usually these people are expecting changes. However, many of these employees often negatively react to these changes especially in the way they do their job. According to (1997), “some resent having change being handed down from on high without being given the opportunity for input.”  Managers should be able to reduce employee resistance to be able to successfully implement changes.

 

 

 

 

 

 

Change Management

 

For ABC company, there needs to have ways to utilized within the research study will basically involve the process and the related information regarding the social change theory and its aspects that may result to a certain resistance to change such as in the field of social communication and how to manage change and strategies to avoid resistance to change in terms of social perspectives within a business and or a company’s context as well as point of view. Thus, any theory that purports to explain how these systems work and how oppressive social inequalities are maintained must not be so framed as to imply that those who benefit from them are not free to change them. Otherwise they would not be morally culpable for their part in perpetuating the system. The problem involved a kind of change-responsibility and resistance level problems, to avoid this problem any explanation of how process of social change are supported in a way that implies that both those who benefit and those who are responsible for challenging and resisting such sources of change. It might seem that social constructionist theories of male and white dominations could better handle this change dilemma but ‘social construction’ (1990 ) as a theoretical tendency is not a coherent whole.

Change is the process of going from one state to another, be it a subtle or total difference like for example, when ABC company brings in a systems analyst to model the existing structure they are more than likely going to want a new system implemented, thus creating change in embracing it, creating a giant change in companies across the globe. ( 1997 ) Moreover, it could be a reality that companies resist to certain changes in the workforce as for them change is negative in the sense that the company is changing its system, and staff members might feel that their jobs are being threatened like by the implementation of certain SCM systems and that a good change management is crucial as it's not really that easy to make a loss from sudden, unplanned changes.

The framework of the ABC ways is based on competencies, which contribute to the timely and accurate implementation of SAP software and technologies. The core components of the ABC Methodology dramatically improve the SAP implementation timeline, while ensuring that all the steps in a new project are concisely addressed. Application – This is a team of successful developers’ average over 15 years of experience in SAP and systems management methodologies. The deep industry-specific implementation experience allows the company to quickly assess a company's needs, and deliver a solution that is designed specifically to a company's industry. Best Practices - The ABC methodology takes advantage of proven practices, utilizing best practices keeps the implementation process in alignment with proven and trusted practices, while delivering the desired company-specific SAP system. Configured Solutions - GEMS configures SAP solutions in synchronization within IT and business needs. Henceforth, change Management - It is essential that each new project has a seamless transition from old systems to new. New processes and systems demand change inside a company and managing the adoption and change of new systems is essential to the success of a project. The combination of GEMS expert training and the use of iTutor in the SAP Solution Manager, allows a company to seamlessly manage the transition from the old to new. GEMS extensive change management experience enables a company to accurately address the pain points that are often present in a systems change.

ABC Methodology Change Management

In the implementation of a new system, the ABC Methodology facilitates a fundamental change in the way in which applications work within an organization through the following means: Dramatically transforming old manual paper-flows and work tasks, or changing simple batch-based computer systems. Reducing costs, improving product throughput eliminating duplication and redundancy, improving supplier relationships, improving customer service levels, and improving product and service quality.

Training staff to use new system, and ease any cultural change aversion For ABC, supply chain management (SCM) is the combination of art and science that goes into improving the way your company finds the raw components it needs to make a product or service and deliver it to customers. Supply chain management software is possibly the most fractured group of software applications on the planet. Some vendors have assembled many of these different chunks of software together under a single roof, but no one has a complete package that is right for every company. For example, the company need to track demand, supply, manufacturing status, logistics and distribution. They also need to share data with supply chain partners at an ever increasing rate. Many SCM applications are reliant upon the kind of information that is stored in the most quantity inside ERP software.

Internal resistance to change

If selling supply chain systems is difficult on the outside, it isn't much easier inside. Operations people are accustomed to dealing with phone calls, faxes and hunches scrawled on paper and will most likely want to keep it that way. If ABC can't convince people that using the software will be worth their time, they will easily find ways to work around it. The company cannot disconnect the telephones and fax machines just because you have supply chain software in place. There is a diabolical twist to the quest for supply chain software acceptance among the employees. New supply chain systems process data as they are programmed to do, but the technology cannot absorb a company's history and processes in the first few months after an implementation. Forecasters and planners need to understand that the first bits of information they get from a system might need some tweaking. If they are not warned about the system's initial naiveté, they will think it is useless. In one case, just before a large automotive industry supplier installed a new supply chain forecasting application to predict demand for a product, an automaker put in an order for an unusually large number of units.

Supply chain management is a paradigm driving many businesses and in turn business relationships as of the present. Aside, customers are dictating how their orders and shipments will be handled. They want to drive out excess inventory and costs. They want their orders shipped complete, accurate, on time and in the manner they require. Compliance means continued business. Non-compliance means financial penalties and possible loss of business. Furthermore, ABC should distinguish between basic needs, such as delivery on time and advanced functions, the needs are attained and are mandatory, whereas advanced needs give a competitive advantage. The issue is not just to identify problems. It is to understand what the best practices are how performance compares, why it may not be competitive, what must be done to improve it and implementing changes.

 

The introduction of change at ABC resulted to several effects on its personnel. Although the change project was intended to improve the company’s operations, negative issues had also been observed. For instance, the initiation of change in the company has been difficult at first due to the resistance of some employees. The employees believe that change in the company will only take valuable resources such as funds, time and energy. They also believe that changing their work routines will only lead to work disruption. This in turn affected the training programs conducted during the change implementation phase as some employees would refrain to participate in the said programs.

Internal change and external change may highly affect the people involved in the company, co in order for them to be prepared for the changes that would occur within the company, I proposed a meeting that would at least, give them a brief insight on the goings-on within the company. Though this meeting may not change the whole effect of the changes implemented, at least, the people involved would not feel left out.

2.         What risks did you identify and how did you overcome them?

As mentioned in the previous question, reactions on the specific changes differ, whether negative or positive. This effect of change had been cited in (1951) theory of change. In this theory,  noted that managers should be aware of the two types of resistance forces that can result from change. These forces are derived from customs or social habit and the other is from inner change resistance. The root of change resistance is brought about by the interplay between the group and its individual members. As most group members would want to maintain behavioral norms of the group, the individual resistance from each member would increase. This is the same in organizational application. Some ABC staff would want to maintain their usual work routines and practices; these employees’ resistance influences others, thus, the issue worsens.

The company however, did not leave the problem unaddressed. The management encouraged its staff to participate in its training sessions, one-on-one sessions, team meetings, and follow-up sessions. Once the one-on-one sessions got underway, positive word-of-mouth quickly began to change employee attitudes. When people heard about the effectiveness of the belief approach in solving various organizational problems - and how good their co-workers felt after their one-on-one sessions - they became less apprehensive about participating and even began to look forward to meeting with their managers.

3.   In what ways does your project support the strategic business directions of your organization?

Significant developments were obtained by the company through its introduction of change. Its ability to develop effective developmental strategies for instance, had been developed. Through the initiation of change, the company management was able to develop a change project that directly addresses its main issues. By developing an appropriate plan, PNS was able to gradually achieve its objectives. This development is important as this allows the company to apply cost-effective projects. The value of this development had been stressed by the contingency theory. Basically, the contingency theory stresses that there is no single way on how one can manage different organizations.

The change allowed the retail company to apply the concepts indicated in the contingency theory. In turn, this enabled the company to increase its competitiveness. Considering that the company is being threatened by the presence of several competitors and new business entrants, the change made it possible for PNS to maintain the business and integrate essential improvements. These include the development of highly-skilled employees, acquisition of better customer relations and enhancement overall store operations. In addition to this, the modifications in the company made its management sector more aware of the different pressures affecting the business. Another important development in the company brought about by change is that it made the company more adaptable, resourceful and creative. In terms of human relations, designing a change project that is directed for the customers and employees made the company more people-oriented, which is an important feature in today’s business sector. As people serve as the main support of the company, learning how to give them due value is an important factor for PNS’s progress in the future.

Thus, activity based costing permits proper identification of the present cost of SCM, a starting point for SCM improvements. With this cost foundation, you can see the financial impact of supply chain programs as to revenue growth, asset utilization and cost reduction. ABC permits customer profitability and order profitability analysis. It permits non-traditional analyses such as performance measurement, partnering or outsourcing so important to competing. The supply chain management requires that an organization be built from the outside in, from the customer inward to what is required to meet his needs. SCM is not functional; it is a process that horizontally crosses the company. 

SUMMARY/CONCLUSION

A healthy organization is one that welcomes change, supports learning and development of individual abilities. ( 2001 ) Furthermore, a successful organization development program should create an organizational culture that solves its own problems and adapts readily to changes in managerial wishes and the environment. In this sense the objective of implementing change is to create a learning, dynamic organization with a higher quality of working life for individuals (1993 ).

 

 

Management Essay Instructions

Attached is the file with full details of the first assignment "Managing people & Organizations" I'd appreciate if it would relate to the middle East as that is where the organization I work in is located.

the word limit is 2,000 words on the first part and another 2,000 words on the second part so a total of 4,000 words.
 

OCCUPATIONAL HEALTH AND SAFETY FATIGUE MANAGEMENT: ESSAY INSTRUCTIONS

The topic I have been assigned is fatigue in the workplace and the issues of sleep and stress caused by fatigue mainly due to poor lifestyle choices and how fatigue management techniques can be used to reduce the impact on a person both at work and home. This assignment must include at least 30 peer reviewed scientific journal articles and use harvard referencing style. referencing should be done as in text referencing. Please see attached PDF file for referencing / guidelines for assignment, references should be a mix of Australian and International references and in particular include references relevant to the Western Australian Workplace.

GLOBALISATION

Globalization

 

Globalization is taken to mean the gradual integration of economies and societies driven by new technologies, new economic relationships and the national and international policies of a wide range of actors, including governments, international organizations, business, labor and civil society. It embraces trade and long-term direct foreign investment by multinationals as well as flows of short-term portfolio capital.

 

Globalization is essentially about markets; the citizen is now redefined as a global consumer. According to  (1997), the concept of globalization is ‘a pretty pale and innocuous form of citizenship.’ Globalization is an environment where individuals and, in some instances, sovereign states appear to have little or no influence ( 1997).

 

Globalization is taking place also in the context of rapid development in information, communication, and computer technologies. In fact these developments are "the biggest technological juggernaut that ever rolled." As (1996) points out, "the global corporation of today could not exist without computers. The technology makes globalization possible by conferring a degree of control beyond anything we have seen before" (p.10).

 

Globalization is more than economic: it is multidimensional, with political, ideological, and cultural elements.(  and , as cited in 2001, p.110). As an ideology, it is based on a system of free trade among predominantly capitalist market economies dominated by multinational corporations, and it holds that this is the ideal system for the welfare of humanity.

Unfortunately, the only freedom inherent in the system, according to (1996), "is the freedom it provides corporate players to deprive everyone else of their freedoms, including the freedom hitherto enjoyed by democratic nations to protect their domestic economies, their communities, their culture, and their natural environments" (p.12). Citizens and local communities all over the world, in fact, are having less and less to say about globalization because they are so small in relationship to it.

There have many debates and different perspectives towards globalization. Some become skeptics and some others are globalists. Most often people can not understand the concept of globalization since it is since as an inevitable concept. Many are trying to against and still others go for it. Globalization is a broad term which consists of economic globalization, political globalization and cultural globalization.

 

Economic Globalization

Economic globalization refers to the intensification and stretching of economic interrelations across the globe ( 2001). Gigantic flows of capital and technology have stimulated trade in goods and services. Markets have extended their reach around the world, in the process creating new linkages among national economies.

 

 

Globalists argues that globalization is responsible for economic growth by providing several catalysts (  1999). Additionally, globalization alleviates poverty and has the effect of extending life expectancy and reducing infant mortality. However, critics of globalization have argued that globalization will result in a general deterioration of protection for labor and the environment (1999)..

 

Political Globalization

Political globalization refers to the intensification and expansion of political interrelations across the globe ( 1999). These processes raise an important set of political issues pertaining to the principle of state sovereignty, the growing impact of intergovernmental organizations, and the future prospects for regional and global governance. Obviously, these themes respond to the evolution of political arrangements beyond the framework of the nation-state, thus breaking new conceptual ground.

Globalists consider political globalization a mere secondary phenomenon driven by more fundamental economic and technological forces ( 1996). They argue that politics has been rendered almost powerless by an unstoppable techno-economic juggernaut that will crush all governmental attempts to reintroduce restrictive policies and regulations. Endowing economics with an inner logic apart from, and superior to, politics, these commentators look forward to a new phase in world history in which the main role of government will be to serve as a superconductor for global capitalism ( 1996).

Pronouncing the rise of a ‘borderless world’, globalists seek to convince the public that globalization inevitably involves the decline of bounded territory as a meaningful concept for understanding political and social change (, 1990). Consequently, this group of commentators suggests that political power is located in global social formations and expressed through global networks rather than through territorially based states. In fact, they argue that nation-states have already lost their dominant role in the global economy (1990). As territorial divisions are becoming increasingly irrelevant, states are even less capable of determining the direction of social life within their borders.  Globalists insist that the minimalist political order of the future will be determined by regional economies linked together in an almost seamless global web of production and exchange.

However, a group of globalization skeptics disagrees, highlighting instead the central role of politics in unleashing the forces of globalization, especially through the successful mobilization of political power. In their view, the rapid expansion of global economic activity can be reduced neither to a natural law of the market nor to the development of computer technology (1998). Once those decisions were implemented, global markets and new technologies came into their own. The clear implication of this perspective is that territory still matters ( 1999). Hence, globalization skeptics insist on the continued relevance of conventional political units, operating either in the form of modern nation-states or global cities.

A number of skeptics also have challenged the idea that optical globalization is moving in the direction of democracy. Most criticism boil down to the charge that such a vision indulges in an abstract idealism that fails to engage current political developments on the level of public policy. Skeptics have also expressed the suspicion that the proponents of cosmopolitanism do not consider in sufficient detail the cultural feasibility of global democracy ( 1999). In other words, the worldwide intensification of cultural, political, and economic interaction makes the possibility of resistance and opposition just as real as the benign vision of mutual accommodation and tolerance of differences ( 1999).

 

Cultural Globalization

Cultural globalization refers to the intensification and expansion of cultural flows across the globe ( 1999). According to  (1999), ‘culture’ is a very broad concept; it is frequently used to describe the whole of human experience. In order to avoid the ensuing problem of overgeneralization, it is important to make analytical distinctions between aspects of social life.

 

Globalists suggest that cultural practices lie at the very heart of contemporary globalization ( 2000). Facilitated by the Internet and other new technologies, the dominant symbolic systems of meaning of our age – such as individualism, consumerism, and various religious discourses – circulate more freely and widely than ever before. As images and ideas can be more easily and rapidly transmitted from one place to another, they profoundly impact the way people experience their everyday lives. Today, cultural practices frequently escape fixed localities such as town and nation, eventually acquiring new meanings in interaction with dominant global themes.

Skeptics suggest that we are not moving towards a cultural rainbow that reflects the diversity of the world's existing cultures. Rather, witnessing the rise of an increasingly homogenized popular culture underwritten by a         based in (1996). As evidence for their interpretation, these commentators point to Amazonian Indians wearing Nike training shoes, denizens of the Southern Sahara purchasing Texaco baseball caps, and Palestinian youths proudly displaying their Chicago Bulls sweatshirts in downtown Ramallah (, 1996). Referring to the diffusion of Anglo-American values and consumer goods as the ‘Americanization of the world’, the proponents of this cultural homogenization thesis argue that Western norms and lifestyles are overwhelming more vulnerable cultures.

Skeptics of globalization include groups who blame globalization for most of the economic, political, and cultural ills afflicting their home countries or regions. Fearing the loss of national self-determination and the destruction of their cultures, they pledge to protect their traditional ways of life from those ‘foreign elements’ they consider responsible for unleashing the forces of globalization (1996). Skeptics are more concerned with the well-being of their own citizens than with the construction of a more equitable international order based on global solidarity.

 

 

Neoliberals

 

Neoliberals advocate free trade and a good deal of laissez-faire but not the free movement of people. Neoliberals argue that there are substantial benefits of foreign capital for creating economic development. According to the standard neoclassical theories, economic growth occurs with the utilization of land, labor, and capital in the productive process. These growth models predict that the more the labor, the more the land; or the more the capital, the faster the growth.

 

Since developing nations in general have underutilized land and labor and exhibit low savings rates, the marginal productivity of capital is supposed to be greater in these areas. Thus, neoclassical growth theory has viewed that open-capital flows between the developed and the developing countries would serve to benefit the latter because capital will flow from rich to poor areas where the returns to capital investments would be highest. Capital-poor developing states should be the beneficiaries of the expected infusion of capital from the capital-rich, industrialized states.

Moreover, neoliberals are apt to place particular emphasis on the benefits of foreign direct investment as an "engine of growth." This reasoning stems from the orthodox belief that capital accumulation, human capital augmentation, and the transfer of technology are the hallmarks of development.        linked the productivity of the industrialized, Western states purely to the extended application of science and technology to the problems of production (, 1966). According to     , the basis of modern society is inextricably linked to the application of advanced technologies, and the economic prospects of developing states depend mostly on the transfer of transnational knowledge and technology from rich to poor states.

Neoliberals also argue the importance of open markets for economic development. States with small markets gain access to the much larger markets of the industrialized areas. This process allows small states to exploit economies of scale. Moreover, trade is expected to diffuse knowledge because it encourages "learning by doing" (, 1962). For neoliberals, the growth and development hinge crucially on the issue of trade and investment. Since the "stuff" of development is the growth of the productive capacity of an economy, these theorists believe that "efficiency" is best realized through continued specialization and exposure to the global marketplace.

 

Radicals

On the other hand the radicals are argues on the fundamental social change.  (2000) quoted that “Change does not come about from the mere fact of oppression. In the absence of hope for meaningful change, a sense that a better alternative exists and is possible, pessimism and cynicism prevail. A radical vision consists first of anger at the way things are, the feeling that conditions are intolerable, but if this is to lead beyond thoughtless and futile rebellion, it must be accompanied by a belief that a better alternative is not only desirable but possible; not necessarily tomorrow, but when the momentum can be turned around.” Resistance can have a strong element of moral witness speaking truth to power, of rebellion, of reformist goals, and of revolutionary transformation (the institutions of structured inequality and destruction are necessary to preserve their power, the system must be overthrown, and a fundamentally different one put in its place).

 

The fault line which separates more moderate from more radical critics is that of the labor standards and environmental concerns. Radical critics point out that given the massive movement, there is a little choice but to give at least rhetorical lip service to such demands.

 

 

Transformationalists

The transformationalist argues that the direction of this process remains uncertain and in contest. The transformationalist disputes the claim that the sovereign state is a thing of the past, but also challenges the claim that states remain as strong as ever. He argues rather that globalization transforms the relationship between states, markets, sovereignty, and the transnational sphere. It challenges the governing and legitimation of capacities of old political arrangements, domestically and internationally. And it thus adds new incentives to the search for political innovation (2002).

 

Scholars from various "transformationalist" perspectives (. 1999) argue for a more multifaceted approach to globalization. Globalization is not purely economic, but also involves other changes such as the expansion of global institutions and governance, which may have important implications for both environmentalism and national economies.

Reference

 

Management and Health Information System

 

Current ICT Status

United Arab Emirates

The United Arab Emirates (UAE) is a small, high-income country with rich natural resources. The country enjoys peace, stability and actively seeks and facilitates investment from all over the world. The UAE is the world’s fourth largest oil producer and the richest state per head of population. It is the new commercial hub of the Middle East. Few nations have achieved such radical development, only6 50 years ago; there was no electricity, no plumbing, not a single public hospital or modern school, no bridges and only a handful of cars.

Information Society in UAE

At present, the main productive sectors in the United Arab Emirates are oil, gas, petrochemicals, trade and fishing. However, UAE is highly committed to diversifying development to include new sustainable sectors such as ICT. Two engines drive the UAE’s vibrant economy: Abu Dhabi’s massive oil revenues and Dubai’s emergence and growth as a regional trading center.

The UAE has achieved significant accomplishments in building the information society. By providing and enabling legal and regulatory framework combined with the existence of national data and communications infrastructure, important progress has been made in diversifying the economy away from dependence on petroleum exports. This has stimulated commercial success among a wide variety of businesses, including multinational companies. In addition to commercial activities, considerable success has been made in integrating ICTs into government functions. Most government ministries have interactive on-line presence, and a national initiative in underway to increase the number and breadth range of service available on-line.

ICT Laws and Regulations

1. National Intellectual Property Rights

The National Intellectual Property Rights aim to protect the rights to intellectual property and to combat piracy. The UAE continues to embark on campaigns that seek to protect intellectual property and reduce piracy.

2. Internet and other ICT-related Laws and Regulations

In combination with a robust telecommunications infrastructure, the UAE has adopted progressive legal policies to facilitate ICT related growth. Notable among these policies are the e-Dirham and e-stamp initiatives. These programs have opened the way for on-line commerce to fulfill a more meaningful role in the national economy.

ICT Applications in Healthcare

More than fifteen health care locations utilize electronic patient care technologies licensed from the MEDICOM Corporation. In addition to direct patient care and billing, this project has been expanded to include laboratory services. Successful deployments of the system at Mafraq Hospital and Al Jazira hospital have provided the precedent to justify further implementation at five additional hospitals. The project will further expanded to include an eMedical Certification System for management of health certificates to facilitate obtaining and renewing work and residence permits.

 

In addition to full-featured automated health information system, several telemedicine options are available in the UAE. These service providers include:

  • Arab TeleMedicine Network
  • TelDermServ – Teledermatologic Network Services for Counseling on Diagnosis of Skin Diseases
  • TeleMedicine Egypt Network
  • The hospital for Sick Children TeleHealth Program

 

Building and maintenance of the national health information system is a strategic objective to support and enhance the country cooperation strategy and all its strategic elements, including disease surveillance, trend analysis and burden of disease studies, health systems development, health and biomedical research, decentralization, Privitization and public-private partnership, and health promotion and healthy lifestyles. The strategy recognizes that health care is increasingly an information-driven service, and information is a major resource crucial to the health of individual citizens, the population in general, and to the success of any health care institution. Efforts and feasibility studies about digital infrastructure have been initiated. The planned system is moving towards digital formats to capture, record, retrieve, analyze and communicate data dynamically.

 

 

 

 

Proposed Strategy: Telemedicine

Telemedicine can be defined as the facilitation of the delivery of health care at a distance for the direct benefit of patients using telecommunications technologies ( 2003,).

 

 

Telemedicine in UAE

Al Mafraq Hospital has initiated the first telemedicine service in UAE. The hospital has established a telemedicine system that links to the Mayo clinic in Minnesota, United States. This partnership is expected to improve patient care and reduce the cost of foreign travel for patients. The system allows medical professionals from both organizations to share digitized data and high resolution, diagnostic video images. Al Mafraq Hospital also purchased an electronic medical records system to make physician-to-physician contact via the telemedicine link. The telemedicine system allows the medical professionals from the UAE to contact physicians and scientists at the Mayo Clinic

Telemedicine refers to the use of electronic communication and information technologies to deliver health care at a distance. The advantages of telemedicine are extensive. Telemedical communication is an easy and cost-effective means of obtaining information about a disease or an illness as well as the types of treatments that are available to patients. Telemedicine allows health care providers to electronically monitor vital signs, verify medication compliance, and reinforce patient education. Receiving medical information through the Internet provides patients the opportunity to become more active in their own health care because they are able to make informed decisions, which in turn allows physicians realize allows physicians more effectively to evaluate and to treat their patients. As more and more physicians realize the positive impact, that telemedicine has had on the treatment of patients, the use of telemedicine in the medical community as a whole will substantially increase.

According to the American Telemedicine Association, telemedicine is the use of electronic communications and information technologies to provide clinical services when participants are at different locations. Telemedicine does not represent a separate medical specialty; rather it is a tool that can be used by health providers to extend the traditional practice of medicine outside the walls of the typical medical practice. In addition, telemedicine offers a means to help transform healthcare itself by encouraging greater consumer involvement in decision-making and providing new approaches to maintaining healthy lifestyle.

 

Scope of Proposed Strategy

Objectives of Proposed Strategy

Technologies, Platforms and Systems

 

 

 

 

Process

1. Changes in Health Care Practitioner Roles

2. Organizational Implications

Challenges and Concerns

1. Licensing and Legal Concerns

One barrier that confounds telemedicine deployment is the medical licensing system. Until a national licensing system is agreed upon, or until a specific provision for telemedicine practice is adopted, the technological capability to cross state lines to provide care is hampered by regulatory concerns (2003). Legal liability within telemedicine contexts creates another area of concern for practitioners and patients (1995). Standards of care regarding telemedicine have also yet to be determined. As the technology continues to develop and change, creating standards of care for telemedicine practice becomes difficult.

2. Privacy

As the walls of the doctor and patient encounter expand across geographic space, the need for medical records to become digitized and transmitted, and the need for more individuals to be involved in the encounter, could compromise the patient’s privacy (1995). Telemedicine interactions can expand the doctor and patient encounter to include personnel who operate the equipment. Although a physician takes an oath to protect the privacy of the patients, additional personnel in the room may not feel the same obligation to the patients. Additionally, new forms of patient records may not have a means by which they can be classified.

3. Reimbursement

Some argue that reimbursement provides one of the most significant barriers to telemedicine expansion since many telemedicine applications are not reimbursed.

4. Costs

Although telemedicine promises to reduce the overall cost of health care, the costs of implementing and supporting a telemedicine program have traditionally been somewhat expensive. Telecommunications transmission costs were also expensive as the bandwidth necessary to accomplish full-motion video could require dedicated phone lines. Additionally, the personnel required to operate and maintain the systems provided additional costs to the overall system.

5. Organizational and Interpersonal Concerns

One of the primary challenges to telemedicine expansion involves the need to transform the traditional environment of the doctor and patient encounter to include individual and organizations at distant locations. This transformation requires the development of a new virtual organization. The development of new partnership, whether it involves organizations that already work together or new organizational alliances, requires attention to both product and process. The process involved – the organizational goals, strategies, and individual work practices that must be changed to adopt a new way of accomplishing tasks – is a challenge to health organizations.

In addition to the new organizational forms that are created through telemedicine, new relationships must develop between health care practitioners. Activities that a physician may have previously accomplished herself must now be communicated to another health care practitioner to facilitate. Therefore, a trusting relationship between the health care practitioners involved at each site must be forged and facilitated ( 1996;  1995). A physician is trained to perform an examination of her own patient. With telemedicine, a consulting physician must instruct a health care practitioner at a distant site how to examine the patient. Then the physician must trust that the examination was conducted effectively and that the information she receives from the health care practitioner is correct. These relationships take time and attention and if not sustained can hinder the success of a telemedicine program (1996;  1995).

 

Implementation Plan

GLOBALISATION: ESSAY INSTRUCTIONS