Case Study Evaluation and Analysis using Leadership Theories and Concepts

Introduction Leadership is one of the most important factors that determine the overall performance of an organisation (Lussier & Achua, 2012). As argued by Hogg,Van Knippenberg and Rast (2012), how leaders in organisation’s delegated duties, make decisions and interact with other members either positively or negatively affects employee output and thus influences the attainment of the overall organisational objective. This paper presents an analysis of leadership at EEF, a membership organisation that is a counterpoint to the Trade Union movement and was founded with the aim of supporting employers in the United Kingdom. Among the key concepts addressed in this analysis are the key leadership theories can be applicable to this case and challenges encountered in the leadership process. The role of Leadership at EEF As an organisation that represents the interests of many employers around the United Kingdom, the leadership at EEF is obligated to ensure that it establishes the needs of its members and effectively addresses them. The role played by EEF’s leadership is exhibited by the fact that it addresses its members’ needs through providing them with advice, guidance and support that will enable them to efficiently and effectively manage their businesses. EEF’s leadership is also committed towards ensuring that the company is flexible enough to maintain its relevance in its service delivery by implementing the required changes. Some of the changes included the transformation of the company’s legal status from a federation to a limited company by guarantee in 2009 to ensure that that its status as a non-profit was protected. The other change that was implemented by the company’s leadership in the same year was converting it into a single integrated national ent ity from its original regionalised structure. This integration resulted into the appointment of another CEO who was expected to lead the company under its new banner of â€Å"One EEF†. All these changes were made by the company with the aim of addressing the ?7 million loss experience in 2009, which was the first it had ever experienced since it was founded. A regional team leader of the company’s sales team, Tom Jones, was also appointed to oversee the now consolidated team. These strategies that were implemented by the company’s top leadership to ensure that the company remains on track highlights one of the key roles of leadership in an organisation, which is decision making. Whereas the ?7 million loss that was suffered in 2009 might have highlighted flaws in the leadership of EEF that year, the immediate changes that were made show the commitment of the company’s leadership towards its good performance. Analysis of Tom Jones’ Leadership using Leadership TheoriesThe Trait Theory of LeadershipFrom the case, Jones was selected out of the other applicants who were originally in charge of the regional sales functions. Out of these was an applicant who had expected to be selected as the team leader because of his long-term experience with the company. The trait theory of leadership can be used in explaining this selection. According to the trait leadership theory, good leaders possess a variety of characteristics and personal traits that enable them execute their leadership responsibilities well. These include integrity, assertiveness, empathy, honesty, openness, likeability and decision making skills (Colbert et al., 2012). The applicant mentioned in the case who had served for long as the leader of a regional sales team could have possessed some of these traits, but not as many as Jones exhibited. Some of the traits exhibited by Jones – as highlighted in the case – included openness, honesty and good decision making skills.The Behavioural TheoryThis theory focuses the behaviour of leaders as they guide their followers towards attaining the overall organisational objective, and classifies leaders as democratic, autocratic or Laissez-faire (DeRue et al., 2011). Democratic leaders are characterised by the fact that they involve other team members in the decision making process. The suggestions that receive the most support from team members are adopted as final decisions. Whilst this approach is lauded for ensuring effective teamwork, it becomes challenging to reach a final decision when the suggestions provided are many and differ widely (Lussier & Achua, 2012). Autocratic leadership involves making of decisions without any prior consultation or involvement of team members. This approach has been regarded as being ineffective for teamwork dynamics and team agreement. It is however considered ideal in situations where decisions need to be urgentl y made (Bhatti et al., 2012). The Laissez-faire approach to leadership is carried out by allowing other team members to make most of the decisions with minimal interference from the leader. This approach is mostly applicable when team members are highly skilled and capable of independently making good decisions. However, leaders who prefer this approach might at times be mistaken for being lazy (Lussier & Achua, 2012). Jones’ leadership approach was characterised by openness, which contributed towards his adoption of a collaborative team building approach that involved sharing of information and ideas, which matches with the democratic approach. Jones also valued the experiences and ideas of other team members. By applying this leadership approach, the team was able to identify the major issues, which were later prioritised according to their urgency. Transactional vs. Transformational LeadershipLeadership can also be classified as either transactional or transformational. Tr ansactional leadership is based on the assumption that individuals are motivated by punishment and reward. It also assumes that the best way in which social systems can work is through the establishment of a clear chain of command (Carter et al., 2013). According to Bono, Hooper and Yoon (2012), transactional leaders work by clearly setting structures or rules by which their followers are required to abide, as well as rewards to be expected when they are adhered to. Whilst they are not usually mentioned, formal discipline systems and punishments are also well understood by their followers (Carter et al., 2013). This is as opposed to transformational leadership where leaders develop constructive visions for the organisation, sell them to their followers, find the way forward on how to implement the vision and lead the implementation of the vision (Wright et al., 2012). The diagram below depicts the differences between Transactional and transformational leadership. Table 1: Transactional vs. Transformational leadership (Adopted from Lussier and Achua (2012) Jones’ involvement of the team at EEF, formulation of necessary changes to transform the company and offering both personal and professional support to his team to enable them achieve these changes matches with the transformation approach to leadership. Among the changes that were identified as necessary for EEF were the establishment of new geographical sales areas and their respective sales representatives, implementing the necessary forecasting and reporting processes, and ensuring that the existing CRM systems are upgraded so as to attain consistency in the measurement key performance indicators. Jones embarked on achieving these changes by leading the change in the organisational culture by encouraging team members to be more ‘corporate minded’ and committed to problem solving. He also embarked on building corporation and trust within the team he was leading. These characteristics of Jones’ leadership further verify his transformational leadership appr oach. Leadership challenges from the Case There are several challenges that can be identified from the provided case on EEF. One of these was the loss that was incurred in the 2009 financial year, which triggered the transformation of EEF’s overall structure. The changes that were implemented further triggered challenges that are typical to any change process in organisations. The first was ensuring that he addressed the feelings of the applicants who lost on their applications as team leaders and creating a formidable team. Given that they all held same regional position before, it can be concluded that their capabilities were almost the same. Therefore, the most effective approach that could be used by Jones in addressing this was involving them in decision making through a highly democratic leadership style (DeRue et al., 2011). By knowing that their opinions are valued by their leader, they will be motivated and committed towards attaining the desired organisational objective (Lussier & Achua, 2012). The other challenge was in regards to the transformation of the organisation’s structure from being regionally based to a unit national structure. In order to attain this overall change, there are several change management models that could be used. One of these is the 8 step model of organisational change, which was proposed by Kotter (1996). It divides the whole change process into eight stages that are more manageable and all contribute towards the attainment of the desired outcome of change. These stages are explained in table 2 below. Whereas this approach to organisational change has been supported by a wide number of researchers, it has also received criticism. For instance, O’Keefe (2013) pointed out that the model assumes that change is a linear process and does not account for challenges or changes that might be encountered in the change process. Table 2: Kotter’s 8-stage model of organisational change (Kotter, 1996) Conclusion In conclusion, this paper has presented an in-depth analysis of leadership at EEF in regard to the changes implemented with the aim of recovering from its poor performance that was registered in 2009. In the analysis, leadership concepts and theories have been referred to and their applicability to the case has been explained. Among these are the trait and behavioural theories of leadership, transformational and transactional leadership models and Kotter’s 8 stage model of leadership. Even with the few mentioned challenges that were highlighted in the case, it has been shown that Tom Jones’ leadership approach was ideal for the EEF as it set out to implement the necessary changes in its functional and organisational structures. References Bhatti, N. et al. (2012) The impact of autocratic and democratic leadership style on job satisfaction. International Business Research, 5(2), pp.192-207. Bono, J.E., Hooper, A.C. & Yoon, D.J. (2012) Impact of rater personality on transformational and transactional leadership ratings. The Leadership Quarterly, 23(1), pp.132-45. Carter, M.Z., Armenakis, A.A., Feild, H.S. & Mossholder, K.W. (2013) Transformational leadership, relationship quality, and employee performance during continuous incremental organisational change. Journal of Organisational Behavior, 34(7), pp.942-58. Colbert, A.E., Judge, T.A., Choi, D. & Wang, G. (2012) Assessing the trait theory of leadership using self and observer ratings of personality: The mediating role of contributions to group success. The Leadership Quarterly, 23(4), pp.670-85. DeRue, D.S., Nahrgang, J.D., Wellman, N.E.D. & Humphrey, S.E. (2011) Trait and behavioral theories of leadership: An integration and meta?analytic test of their relative validity. Personnel Psychology, 64(1), pp.7-52. Hogg, M.A., Van Knippenberg, D. & Rast, D.E. (2012) Intergroup leadership in organisations: Leading across group and organisational boundaries. Academy of Management Review, 37(2), pp.232-55. Kotter, J.P. (1996) Leading change. Cambridge, MA: Harvard Business School Press. Lussier, R. & Achua, C. (2012) Leadership: Theory, application, & skill development. Mason: Cengage Learning. O’Keefe, K. (2013) Where Kotter’s 8 Steps Gets it Wrong. [Online] Available at: http://www.executiveboard.com/communications-blog/where-kotters-8-steps-gets-it-wrong[Accessed 18 December 2014]. Wright, B.E., Moynihan, D.P. & Pandey, S.K. (2012) Pulling the Levers: Transformational Leadership, Public Service, Motivation, and Mission Valence. Public Administration Review, 72(2), p.206–215.

Indias Foreign Trade Policy Essay

In the last five years India’s exports witnessed robust growth to reach a level of US$ 168 billion in 2008-09 from US$ 63 billion in 2003-04. India’s share of global merchandise trade was 0.83% in 2003; it rose to 1.45% in 2008 as per WTO estimates. India’s share of global commercial services export was 1.4% in 2003; it rose to 2.8% in 2008. India’s total share in goods and services trade was 0.92% in 2003; it increased to 1.64% in 2008. On the employment front, studies have suggested that nearly 14 million jobs were created directly or indirectly as a result of augmented exports in the last five years. As the export sector has been a major casualty in this downturn the Indian Government has set in motion strategies and policy measures which will catalyse the growth of exports. The short term objective of the Foreign Trade Policy (2009-14) is to arrest and reverse the declining trend of exports and to provide additional support especially to those sectors which have been hit badly by recession in the developed world. The Policy Objectives are as follows: a) Achieving an annual export growth of 15% with an annual export target of US$ 200 billion by March 2011. b) In the remaining three years of this Foreign Trade Policy i.e. upto 2014, the country should be able to come back on the high export growth path of around 25% per annum. c) By 2014, the policy aims to double India’s exports of goods and services. d) The long term policy objective for the Government is to double India’s share in global trade by 2020. HIGHLIGHTS OF FOREIGN TRADE POLICY 2009-2014 Higher Support for Market and Product Diversification 1. Incentive schemes have been expanded by way of addition of new products and markets. 2. 26 new markets have been added under Focus Market Scheme. These include 16 new markets in Latin America and 10 in Asia-Oceania. 3. The incentive available under Focus Market Scheme (FMS) has been raised from 2.5% to 3%. 4. The incentive available under Focus Product Scheme (FPS) has been raised from 1.25% to 2%. 5. A large number of products from various sectors have been included for benefits under FPS. 6. Market Linked Focus Product Scheme (MLFPS) has been greatly expanded. 7. MLFPS benefits also extended for export to additional new markets for certain products. 8. A common simplified application form has been introduced for taking benefits under FPS, FMS, MLFPS and VKGUY. 9. Higher allocation for Market Development Assistance (MDA) and Market Access Initiative (MAI) schemes is being provided. Technological Upgradation 1. To aid technological upgradation of our export sector, EPCG Scheme at Zero Duty has been introduced. EPCG Scheme Relaxations 1. To increase the life of existing plant and machinery, export obligation on import of spares, moulds etc. under EPCG Scheme has been reduced to 50% of the normal specific export obligation. 2. Taking into account the decline in exports, the facility of Re-fixation of Annual Average Export Obligation for a particular financial year in which there is decline in exports from the country, has been extended for the 5 year Policy period 2009-14. Stability/ continuity of the Foreign Trade Policy 1. To impart stability to the Policy regime, Duty Entitlement Passbook (DEPB) Scheme is extended beyond 31-12-2009 till 31.12.2010. 2. Interest subvention of 2% for pre-shipment credit for 7 specified sectors has been extended till 31.3.2010 in the Budget 2009-10. 3. Income Tax exemption to 100% EOUs and to STPI units under Section 10B and 10A of Income Tax Act, has been extended for the financial year 2010-11 in the Budget 2009-10. 4. The adjustment assistance scheme initiated in December, 2008 to provide enhanced ECGC cover at 95%, to the adversely affected sectors, is continued till March, 2010. Introduction The gems and jewellery sector is a major foreign exchange earner. Due to its importance in India’s foreign trade, the government has taken many initiatives to boost the sector. The government, for instance, has declared this sector as a thrust area for exports. During the global economic meltdown especially the government has dealt out many initiatives for the badly-affected sector. This chapter focuses on the various policies and measures that were taken by the government for the gems and jewellery sector. Regulating Bodies Gems & Jewellery Export Promotion Council (GJEPC): Established in 1966, the GJEPC is the apex body of the Indian gems and jewellery industry, and has around 6,500 members across India. The primary goal of the Council is to introduce the Indian gems and jewellery to the international market and to promote their exports. The Council provides market information to its members regarding foreign trade inquiries, trade and tariff regulations, rates of import duties, and information about jewellery fairs and exhibitions. The roles played by the GJPEC are broadly highlighted below: Trade Facilitator The Council promotes the Indian gems and jewellery industry in the international market. It organises international jewellery shows, hosts trade delegations, and undertakes image-building exercises through advertisements, publications and audio-visual means. Advisory Role The Council also aids better interaction and understanding between traders and government. The Council takes up relevant issues with the government and agencies connected with exports. It also submits documents for consideration and inclusion in the Exim Policy. Nodal Agency for Kimberley Process Certification Scheme GJEPC works closely with the Indian government and the traders to implement and oversee the Kimberley Process Certification Scheme; in fact, the Council has been appointed as the nodal agency in India under the Kimberley Process Certification Scheme. Training and Research The GJEPC runs many institutes that provide training in all aspects of manufacturing and design in Mumbai, Delhi, Surat and Jaipur. Varied Interests The Council publishes many brochures, statistical booklets, trade directories and a bi-monthly magazine – Solitaire International, which is distributed internationally as well as to its members. Gem & Jewellery Trade Council of India (GJTCI): The GJTCI was founded in 2000, and is tasked with resolving any issue arising from trade in gems and jewellery. It plays an important role in showcasing the Indian gems and jewellery to the international as well as the domestic market. Like the GJEPC, GJTCI also provides information to its members through a monthly newsletter, various educative and trade-motivational events such as seminars, workshops, exhibitions, festivals etc. The Bureau of Indian Standards: The Bureau of Indian Standards (BIS), the National Standards Body of India, is a statutory body set up under the Bureau of Indian Standards Act, 1986 and is responsible for hallmarking gold jewellery in India. Deregulation of Gold in India In the pre-liberalisation period (prior to 1991), severe restrictions on the export and import of gold from and into India were imposed. During that time only the State Bank of India (SBI) and the Metals Trading Corporation of India (MMTC) were allowed to import gold. The reasons for imposing these restrictions were: * To reduce demand for, as well as availability of gold * To alter the savings preferences of the population in favour of investments other than gold/silver * To stop smuggling of gold * To conserve foreign exchange resources * To prevent generation of or to unearth black money. It was thought that since gold was one of the most obvious choices for keeping undeclared/ill-gotten income and wealth, a policy to restrict supply of gold would be effective in curbing black money. Several schemes that restricted the export and import of gold were launched in various forms between 1947 and 1963, but the control regime finally took shape with the implementation of the Gold Control Act 1968. This Act did not allow goldsmiths to receive more than 100 grams of standard gold for manufacturing jewellery. Further, a certified goldsmith was not allowed to possess a stock of more than 300 grams of primary gold at any time. The quantity of primary gold possessed by a licensed dealer was limited between 400 grams and 2 kg, depending on the number of artisans employed. There was a legal ban on gold transaction between dealers. The government abolished the Gold Control Act when the balance of payment crisis occurred in 1990, after which the large export houses could import gold freely. Exporters in the export processing zones were allowed to sell 10% of their produce in the domestic market. In 1993, gold and diamond mining were opened up for private investors and foreign investors were allowed to own half of the equity in mining ventures. In 1997, overseas banks and bullion suppliers were also allowed to import gold into India. These measures led to the entry of foreign players such as De Beers, Tiffany and Cartier into the Indian market. Foreign Direct Investment Policy * At present, the Indian government allows 100% foreign direct investment (FDI) in gems and jewellery through the automatic route. * For exploration and mining of diamonds and precious stones FDI is allowed up to 74% under the automatic route. * For exploration and mining of gold and silver and minerals other than diamonds and precious stones, metallurgy and processing, FDI is allowed up to 100% under the automatic route. Kimberley Process (KP) The Kimberley Process came into force when the South African diamond producing nations met at Kimberley in South Africa in May 2000. The Kimberly Process was set up to discuss ways to stop the trade in ‘conflict diamonds’ and to ensure that diamond purchases did not fund violence. As of November 2008, the KP had 49 members, representing 75 countries. The Kimberley Process Certification Scheme (KPCS) was implemented in India on January 1, 2003 to verify the legitimacy of the import / export of rough diamonds as per the UN resolution and to curb the entry of conflict diamonds into the global trade flow. The system of verification and issuance of KPC is administered from the Mumbai and Surat offices of GJEPC. In India’s Foreign Trade Policy 2009-14, the following measures related to the Kimberley Process Certification Scheme (KPCS) have been adopted: * No import or export of rough diamonds shall be permitted unless accompanied by the KP certificate as specified by the GJEPC. * The export and import of rough diamonds to and from Venezuela has been prohibited by the Indian government owing to the voluntary separation of Venezuela from the KPCS. Government Initiatives to Boost the Sector Measures taken by the government in the Union Budget 2009-10: Customs Duty on Gold and Silver * Customs duty on serially numbered gold bars (other than tola bars) and gold coins to be increased from Rs 100 per 10 gram to Rs 200 per 10 gram. Customs duty on other forms of gold to be increased from Rs 250 per 10 gram to Rs 500 per 10 gram. * Customs duty on silver to be increased from Rs 500 per kg to Rs 1,000 per kg. These increases will also be applicable when gold and silver (including ornaments) are imported as personal baggage Central Excise Duty * Excise duty on branded articles of jewellery to be reduced from 2% to nil. * All categories within HS code 71 except the ‘diamonds whether or not worked but not mounted or set’ (HS code 7102) and certain sub-categories within HS code 7104 and 7106 currently have an excise duty rate of 16%. * The category ‘diamonds whether or not worked but not mounted or set’ (HS code 7102) currently does not attract any excise duty. * Sub-category ‘Piezo-electric quartz’ (HS code 71041000), silver (including silver plated with gold or platinum) in powdered form (HS code 71061000), unwrought (HS code 71069100) and other (HS code 71069290) do not attract any excise duty. Fiscal Stimulus Measures (December 2008) The Reserve Bank of India announced certain fiscal stimulus measures in December 2008 to revive the Indian economy during the onset of the global financial crisis. The following measures were announced for the Indian gems and jewellery sector: * Increasing the post-shipment Rupee export credit period from 90 days to 180 days from November 28, 2008 * Increasing the pre-shipment rupee export credit period from 180 days to 270 days from November 15, 2008 * Providing an interest subvention of 2% up to March 31, 2009, subject to minimum rate of interest of 7% per annum, to make pre and post-shipment export credit for gems and jewellery more attractive * Allowing exporters to avail refund of service tax on foreign agent commissions of up to 10% of FOB value of exports. They will also be allowed refund of service tax on output services while availing of benefits under Duty Drawback Scheme * Banks will charge interest rate not exceeding Benchmark Prime Lending Rate (BPLR) minus 4.5% on pre-shipment credit up to 270 days and post-shipment credit up to 180 days on the outstanding amount for the period December 1, 2008 to September 30, 2009. Export Facilitation Measures by the Ministry of Commerce and Industry Further, in February 2009, the gems and jewellery sector got a special boost from the Ministry of Commerce with the following announcements: Gems and jewellery, diamonds and precious metals were given a special boost by the Ministry of Commerce and Industry, the Export Promotion Council for Gems and Jewellery and Star Trading Houses (in the gems and jewellery sector). Besides, the Diamond India Ltd, MSTC Ltd and STCL Ltd were added under the list of nominated agencies notified under Para 4 A.4 of foreign trade policy for the import of precious metals. * Surat, Gujarat has been given the recognition of a town of export excellence, because it is home to thousands of diamond units that employ many diamond workers. * The authorised persons of gems and jewellery units in export-oriented units will be allowed to carry personal carriage of gold in primary form up to 10 kg in a financial year subject to the RBI and customs guidelines. * Import restrictions on worked corals have been removed to address the grievance of gem and jewellery exporters. Foreign Trade Policy 2009-2014 Foreign Trade Policy has identified the gems and jewellery sector as a thrust area with prospects for export expansion and employment generation. The highlights of the policy are: a. Import of gold of 8 carat and above allowed under replenishment scheme subject to import being accompanied by an Assay Certificate specifying purity, weight and alloy content. b. Duty Free Import Entitlement (based on FOB value of exports during the previous financial year) of consumables and tools, for: 1. Jewellery made out of: i. Precious metals (other than gold and platinum) – 2% ii. Gold and platinum – 1% iii. Rhodium finished silver – 3% 2. Cut and polished diamonds – 1% 3. Duty free import entitlement of consumables for metals other than gold, platinum will be 2% of FOB value of exports during the previous financial year. c. Duty-free import entitlement of commercial samples shall be Rs 300,000. d. Duty free re-import entitlement for rejected jewellery shall be 2% of FOB value of exports. e. Import of diamonds on consignment basis for certification/ grading and re-export by the authorised offices/agencies of Gemological Institute of America (GIA) in India or other approved agencies will be permitted. f. To promote export of gems and jewellery products, the value limits of personal carriage of gems and jewellery products in case of holding/participating in overseas exhibitions increased to US$ 5 mn and to US$ 1 mn in case of export promotion tours. Further, the limit in case of personal carriage, as samples, for export promotion tours, has been increased from US$ 0.1 mn to US$ 1 mn. g. Extension in number of days for re-import of unsold items in case of participation in an exhibition in the US increased to 90 days. h. In an endeavour to make India a diamond international trading hub, diamond bourses will be planned. i. Gems and jewellery units may sell up to 10% of FOB value of exports of the preceding year in Domestic Tariff Area (DTA), subject to fulfilment of positive Net Foreign Exchange (NFE). In respect of sale of plain jewellery, recipient shall pay concessional rate of duty as applicable to sale from nominated agencies. In order to boost the gems and jewellery sector, the value addition norms were reduced in the FTP 2009-14. Earlier, owing to abrupt fluctuation in gold prices, exporters were unable to comply with the previous high value addition norms. Under the scheme for export of jewellery, value addition shall be calculated as per paragraph 4 A.6 of FTP. Minimum value addition shall be: Special Economic Zones (SEZ) In order to boost foreign trade and investment, the Indian government introduced the SEZ policy in April 2000 under the Export-Import (EXIM) policy. Under the policy, the government allowed companies to set up units in SEZ to manufacture goods or provide services that facilitated a hassle-free environment for exports. However, it was the SEZ Act 2005 – passed in February 2006 – that laid down regulatory frameworks and rules for setting up and for the operation of SEZs. With extended tax holidays up to 15 years – from previous tax holiday of 10 years, the SEZ Act managed to generate considerable level of interest; as a result, the number of SEZs witnessed a sharp rise in a matter of few years. The Act envisages promoting exports of goods and services, promoting FDI, creating employment, generating economic activity and most importantly, developing infrastructure. To promote the exports of gems and jewellery, the government has set up various SEZs with specific incentives. Some important government policies relating to SEZs in the gems and jewellery sector are highlighted below: * No import or export of rough diamonds will be permitted unless the shipment parcel is accompanied by the Kimberley Process Certificate issued by the Development Commissioner. * Cut and polished diamonds and precious and semi-precious stones (except rough diamonds, precious or semiprecious stones having zero duty) shall not be allowed to be taken outside the SEZ for sub-contracting. * A gem and jewellery unit may receive plain gold or silver or platinum jewellery from the Domestic Tariff Area or from an EOU or from a unit in the same or another SEZ in exchange of equivalent content of gold or silver or platinum contained in the said jewellery after adjusting permissible wastage or manufacturing loss allowed under the provisions of the Foreign Trade Policy read with the handbook of procedures. * The DTA Unit undertaking sub-contracting or supplying jewellery against exchange of gold or silver or platinum shall not be entitled to export entitlements. ————————————————- Sector Overview India has significant reserves of gold, diamond, ruby and other gemstones. Key states with gemstone reserves and mining potential are Maharashtra, Madhya Pradesh, Orissa, Chattisgarh, Bihar and Andhra Pradesh. Orissa has deposits of ruby and has about 20 varieties of various gemstones such as rhodoline, garnet, aquamarine, etc. Andhra Pradesh has gold and diamond bearing areas, as well as occurrences of semi-precious and abrasive stones spread over different districts. Diamonds are mined only at Panna in Madhya Pradesh by the National Mining Development Corporation. The two major segments of the sector in India are gold jewellery and diamonds. The country is the largest consumer of gold, accounting for more than 20% of the total world gold consumption. Gold jewellery forms around 80% of the Indian jewellery market, with the balance comprising fabricated studded jewellery that includes diamond and gemstone studded jewellery. A predominant portion of the gold jewellery manufactured in India is consumed in the domestic market. India is world’s largest cutting and polishing centre for diamonds; the cutting and polishing industry is well supported by government policies and the banking sector with around 50 banks providing nearly USD 3 billion of credit to the Indian diamond industry. It is considered to be diamond polishing and processing capital of the world as its artisans are skilled in processing small-sized diamonds. At present, India exports 95% of the world’s diamonds, according to statistics released by the Gems and Jewellery Export promotion Council (GJEPC). A major portion of the rough, uncut diamonds processed in India is exported, either in the form of polished diamonds or finished diamond jewellery. The size of the Indian gems and jewellery market is was USD 30.1 billion in 2011 and is expected to be USD 45 billion by 2015 on the back of increasing domestic demand. The country is one of the largest exporters of gems and jewellery and the industry is considered to play a vital role in the Indian economy as it is a leading foreign exchange earner. The sector is expected to generate up to USD 35 billion of revenue from exports by the year 2015. The countries where demand is increasing for Indian jewellery include the UAE, the US, Russia, Singapore, Hong Kong, Latin America and China. The sector provi des employment to around 1.8 million people. In the next five years, the sector is expected to create additional employment for around 1.1 million people. FDI into the diamond and gold ornaments sector was USD 302 million from April 2000 to April 2011, as per statistics released by the Department of Industrial Policy and Promotion (DIPP), which is part of the Ministry of Commerce and Industry, and is charged with the framing of the country’s FDI policy. The hub of India’s jewellery industry is Mumbai that receives the majority of the country’s gold and rough diamond imports. Mumbai has a considerable number of modern, semi-automatic factories and laser-cutting units, the majority of which are located in the special economic zone. Most of the diamond processing, though, is undertaken in Gujarat, (primarily in Surat, Bhavnagar, Ahmadabad and Bhuj) and in Rajasthan (Jaipur). Policy and Promotion The government has announced several measures for the promotion of the gems and jewellery sector in the New Foreign Trade Policy (2009-2014), some of the important ones being: ï‚ · To neutralize duty incidence on gold jewellery exports, duty drawback on such exports is now allowed. ï‚ · Import of diamonds on consignment basis for certification/grading and re-export by the authorized offices/agencies of Gemological Institute of America (GIA) in India or other approved agencies to be permitted. ï‚ · To promote exports of gems and jewellery products, the value limit of personal carriage has been increased from USD 2 million to USD 5 million in case of participation in overseas exhibitions. The limit in case of personal carriage as samples for export promotion tours has also been increased from USD 0.1 million to USD 1 million. ï‚ · The number of days for re-import of unsold items in the case of participation in an exhibition in the US has been increased to 90 days. The gover nment plans to establish diamond bourses in an endeavour to make India an international diamond trading hub. ï‚ · 100% FDI is permitted in the gems and jewellery sector through the automatic route. ï‚ · Gems and jewellery SEZs have been set up to promote investments in the sector. The names of operational SEZs in the sector are SEEPZ Special Economic Zone, Mumbai; Manikanchan SEZ, West Bengal; Jaipur SEZ; and Hyderabad Gems SEZ Ltd. Further, formal approval has been given to 13 SEZs in the sector — three have got in-principal approval and seven have been notified, as per the SEZ Board of Approval statistics. Major Players The gems and jewellery market essentially comprises sourcing, processing, manufacturing and selling of precious metals and gemstones such as gold, platinum, silver, diamond, ruby, sapphire, among others. This industry is highly unorganised and fragmented with 96% of the total players being family-owned businesses. Currently there are more than 500,000 gems and jewellery players across the country, with the majority being small players. Modern retail players have only 4% to 6% share, which is perhaps one of the lowest when compared to other sectors such as apparel, footwear, books and music. At the same time, India is gaining prominence as an international sourcing destination for high-quality designer jewellery. Global companies such as Walmart and JC Penney procure jewellery from India. Some of the major brands in the Indian jewellery segment are Gili, Tanishq, Carbon, Oyzterbay and Trendsmith. The major players in the Indian gems and jewellery retail sector are Reliance Retail, Damas Jewellery, Gitanjali Gems Ltd., Swarovski, Diamond Trading Company, Vardhaman Developers, Dubai-based Joy Alukkas, Viswa and Devji Diamonds and Gold Souk India. Sector Outlook A FICCI-Technopak report estimates that gems and jewellery exports will grow to USD 58 billion by 2015. It also estimates that the domestic market for gems and jewellery will touch USD 35 billion to USD 40 billion by 2015. India has several strengths that have made it a significant force in the global gems and jewellery business. These are: ï‚ · Highly skilled, yet low-cost labour. ï‚ · Established manufacturing excellence in jewellery and diamond polishing. ï‚ · India is the most technologically advanced diamond cutting centre in the world. ï‚ · Opportunity to address one of the world’s largest and fastest-growing gems and jewellery markets. ï‚ · Opportunity to leverage India’s strengths to address the global market. One of the most encouraging trends visible in the Indian gems and jewellery market is that the country is now beginning to move towards branded jewellery and consumers are increasingly accepting modern retail formats. According to the FICCI-Technopak report, this would act as a catalyst for change and may impact traditional players, who would need to upgrade to keep pace with changing market trends. It is expected that, going forward, traditional players will coexist with modern players — this is, in fact, the trend in international markets where independent jewellers still hold significant market share. (b) Gems and Jewellery sector ï‚ · Export of Gems & Jewellery by Personal carriage through Mumbai and Jaipur Airports: Export of diamonds, gemstones and gold jewellery through personal carriage through Mumbai and Airports stopped though it is allowed in other airports. Customs authorities have stopped the facility of personal carriage of gems and jewellery both for export and import at Mumbai and Jaipur. → Mumbai Customs Commissionerate opines that the facility can be started only if the safe deposit vault is installed by the Bharat Diamond Bourse (BDB). BDB has requested Mumbai International Airport Private Limited for allocating space of 200 sq ft for constructing the safe deposit vault for custody of personal carriage of import and export of precious cargo. Exporters want this to start immediately by using the available vault of customs at Airport. Recently, export by personal carriage was allowed in Mumbai Airport. However, customs authorities need to sort this out for smooth and continuous functioning of this facility. → Jaipur has limited international flights and there is no problem in personal carriage of these facilities for such flights. When Gateway ports other than Jaipur (like Delhi) are used the problem arises. Customs authorities in these airports do not accept the sealing of goods done in Jaipur. Exporters feel that gems and jewellery parcels may be allowed to be appraised by Jaipur customs and the Gateway airports may be instructed to accept the documents signed by Jaipur customs appraiser. This is a procedural issue and customs need to resolve it.

Diversity (cultures) Essay Example | Topics and Well Written Essays - 1500 words

Diversity (cultures) - Essay Example Usually, the need to form a team arises from the need either to get things done more efficiently, using lesser time and effort (Mattson, 1998). And with this, the idea of a cross-cultural team sprouted up. Studies and researches were done to understand whether it would be of competitive advantage for a certain company if there are team members from different cultural backgrounds and how such differences can be understood and will not pose any problem for the company. With the continuing movement of the economy - may it be a decline or growth - every businesses and companies are using every possible means to keep the company at a stable end. Every organization must have the capability to adapt to the movement of the market and the ever-changing needs of the customers. However, an organization can only do this if the people - the very members of the workforce - are working smoothly as a team. Moreover, now that diversity in the workforce is seen as advantage rather than a problem, management have been seeking every possible means to maintain the competitiveness of each and every member of the workforce, thereby benefiting the company in the end (Becker, 1964). Diversity in the workplace has taken on a new face today. ... Moreover, now that diversity in the workforce is seen as advantage rather than a problem, management have been seeking every possible means to maintain the competitiveness of each and every member of the workforce, thereby benefiting the company in the end (Becker, 1964). Diversity in the workplace has taken on a new face today. Nowadays, workplace diversity is no longer just about the issue of anti-discrimination compliance. Leveraging workplace diversity is increasingly seen as a vital strategic resource for competitive advantage of the people and of the business. More companies are linking workplace diversity to their strategic goals and objectives. Because of this, the human resource department (HRD) plays a key role in diversity management and leadership to create and empower an organizational culture that fosters a respectful, inclusive, knowledge-based environment where each employee has the opportunity to learn, grow and meaningfully contribute to the organization's success (Jayne and Dipboye, 2004). Organizations intending to introduce multiculturalism in their workforce have two avenues of guidance. Organizations can base their structures on multicultural pedagogy and team management theory to help them prepare for an increasingly diverse workforce. Companies can benefit from academic studies, which have already provided an outline of difficulty. Pedagogical methodologies facilitate the re-conception of the relationship between the self and the 'other', and the active participation in the learning process. On the other hand, industry's team management theory, which recommends participatory structures over hierarchical structures, offers methods for

The American writer Ursula LeGuin's The Ones Who Walk Away from Omelas Essay

The American writer Ursula LeGuin's The Ones Who Walk Away from Omelas - Essay Example In the text’s description of city Omela it’s clear that there is an almost satirically good description of the on-goings. For instance, Le Guin writes, â€Å"The horses wore no gear at all but a halter without bit. Their manes were braided with streamers of silver, gold and green† (Le Guin). Here one sees that even the animals residing in the city were of a glorious nature. In terms of the social order, it’s noted that in large part there is no overriding government structure in this society. Le Guin states, â€Å"I do not know the rules and laws of their society, but I suspect that they were singularly few. As they did without monarchy and slavery, so they also got on without the stock exchange†¦Ã¢â‚¬  (Le Guin). It seems in advancing this notion of government Le Guin is indicating that the society is so well functioning and efficient that it does not need any government structure to regulate anti-social behavior. The story also greatly considers t he nature of the individual. In large regards it seems to flesh out the notions of the individual as a means of establishing their conscious awareness of the society, as well as their happiness. Consider Le Guin when she writes, â€Å"How can I tell you about the people of Omelas? They were not naive and happy children--though their children were, in fact, happy† (Le Guin). ... The child is described as either feeble minded, or made so through malnutrition and fear. The child is even horrifically described as screaming that it will be good if it is let out. The child is perhaps the most indicative element of the city of Omela as it indicates that even as the individuals in the society enjoy considerable happiness and social cohesion there is still an aspect of their existence that is sinister. The story also indicates that occasionally an individual will leave Omela after learning the reality of the child’s situation. While it seems in part that Le Guin is making a statement about the nature of scapegoats in society, what one makes of the child in the basement is more a reflection on the individual reader than the story itself. In conclusion, this essay has considered the nature of society and the individual in Ursula Le Guin’s ‘The One’s Who Walk Away From Omelas’. In terms of society it’s demonstrated that the text presents a utopian world that is loosely described, allowing the reader to implement their imagination. The individuals are presented as conscious and intelligent. Ultimately, at the center of the story is a moral choice that is meant to reveal aspects of human character and nature of

Jerry siegel Research Paper Example | Topics and Well Written Essays - 1250 words

Jerry siegel - Research Paper Example He had 5 siblings including 3 sisters and two brothers. His father himself was quite artistic who used to develop signs through his paint work and later his father started a haberdashery and he was one of those who not only recognized the artistic side of his youngest son, he even promoted his son to work on his talent. Jerry was left father less when his father passed away as a result of a heart attack which was caused due to a robbery that took place in his store. Siegel might have gained his inspiration and recognized his career path due to his liking for comics, movies and magazines that published science fiction. Later he become an active participant of meeting up with people who had a taste for science fiction and the people he used to meet even included Jack Williamson who himself became a great author. During the session of 1929 when he was only 15 years old, he started creating stories that were comic in nature with the assistance of a typewriter and his work was then advert ised in Science Wonder Stories’ classified section. In the following years he continued to produce similar kind of work. He spent his high school life in Cleveland’s school of Glenville high School and was a contributor for the school’s weekly news issue. During his high school years he was quite shy of a person but was well known among his friends and other school members for conducting parody of Tarzan. At age of 16, he and Joe who was one of the creators of Superman became close friends. Since the start of the friendship of these two artistic individuals, they worked and produced various comics including the musketeer which was their debut comic creation. The Grace of superman Superman was never created a flying hero, he was first created as a villain by the combination of Joe and Siegel and when they created this element, they portrayed him as someone who wanted to rule the world. This character made his first appearance in mini story which was recognized as The Reign of the Super-Man and this story was published during the period of 1933 by Siegel himself. This negative role of the superman was not welcomed and was almost a failure, this made the creators of the figure think and they decided to show a positive image of the character. During 1934, a positive superman was created as seen by the people of 20th and the 21st century. After creating the super hero, both companions started a quest to in order to locate a publisher for their character and after sex years the character was published in a superhero’s role and was recognized as Detective Dan: Secret Operative No. 48 (Schelly 92). The new role gained great popularity and a positive letter was delivered to both the creators but the letter disallowed them from creating such a comic book in future. Due to this Joe experienced shock and in despair he burned the entire story and the only part of the literary work remaining was the cover of the book as it was saved by Siegel. In comparison to the character of superman, the creators created yet another figure regarded as Slam Bradley who was an adventurer and it was published in comics that were based on detectives. The character was p

Climate Change Essay Example | Topics and Well Written Essays - 1000 words

Climate Change - Essay Example Describe three key findings of the AR4 report that are mentioned in the Introduction Section. Key findings include: 1. An increase in global average air and ocean temperatures, widespread melting of snow and ice and rising global sea levels 11 out of last 12 years from 1995-2006 rank among the 12 hottest years on record Global sea level rise of 1.8mm from 1961-2003 Polar ice caps shrinking – Artic sea ice extent shrank 2.7% per decade Changes in precipitation – decline in Mediterranean, Sahel, southern Africa and increase in eastern part of North and South America, North Europe 2. Natural systems are being affecting by regional climate change, particularly temperature increase Glacial runoff increase glacial lake sizes Hydrological effects – increase runoff, earlier spring peak discharge, warming of lakes/rivers, which effects thermal structure and water quality 3. Effects of regional climate change in natural and human environment are emerging, although many are difficult to discern due to adoption and non climatic drivers Agricultural changes – planting crops earlier on in the year Increase in climatic health hazards, e.g. European 2003 heat wave killed 15,000 people in France What is the difference between natural and anthropogenic drivers of climate change? Provide an example of each. Natural changes refer to climatic alterations in the Earth’s atmosphere that aren’t affected by humans. Astronomical Effects Terrestrial Effects Orbital variability of the Earth Global geometry of continent/ocean distribution Solar storms and flares Ocean tide cycles Sunspot cycles Periodic ocean circulation changes, e.g. El Nino These processes control the amount of suns radiation reaching specific latitudinal zones on Earth Volcanic eruptions Anthropogenic drivers have also been highlighted as contributing to climate change and accelerating the warming of the Earth’s atmosphere. Examples include increased CO? (280ppm from pre industrial levels to 379pmm by 2005), burning of fossil fuels, deforestation, CFC’s and aerosols and from agriculture, e.g. cows releasing significant amounts of methane. What is a greenhouse gas (GHG), and how have their levels changed in the atmosphere changed since 1970? A GHG is a gas in the Earth’s atmosphere that contributes to the greenhouse effect through absorbing and emitting radiation causing climate change. They include CO?, methane, nitrous oxide and halocarbons. Changes in the atmospheric concentrations of greenhouse gases and aerosols, land cover and solar radiation alter the energy balances of climatic systems. There has been a 70% increase in global GHG emissions due to human activities between 1970-2004. CO? annual emissions have increased by 80% from 21 to 38 gigatonnes. CO? also represents 77% of total anthropogenic GHG emissions. Describe the SRES scenarios. What are they, and why do we have more than one of them? SRES refers to the scenarios descr ibed in the IPCC Special Report on Emission Scenarios. The SRES project an increase of baseline global GHG emissions by a range of 9.7 to 36.7 GtCO? – eq (25% to 90%) between 2000-2030. The SRES scenarios are grouped into 4 scenario families (A1, A2, B1, B2). They explore alternative development pathways, covering a wide range of demographic,

Migration History Paper Essay Example | Topics and Well Written Essays - 1000 words

Migration History Paper - Essay Example Firstly, it is the understanding from the interview that was conducted that ultimately the migrant experience within the United States has remained unchanged since late 18th century. Although technology has increased, jet travel has enabled individuals to rapid transit from international origins, and the complexity of paperwork and documentation within the United States has shifted, the first experience for the migrant is one in which hardship, deprivation, and most generally a step backwards in terms of quality of living is ultimately assumed. With regards to the interviewee in question, she described an experience in which once arriving in New York, she moved in to an apartment that was no larger than 500 ft.? and housed no less than six people; whereas in her home country, she had lived in the apartment that was nearly 700 ft.? and housed only three people. ... o the United States within the past 250 years, the reader should be mindful of the fact that the immigrant experience is ultimately different due to the rules and regulations of US visas and permits. Whereas 200 years ago the United States was willing to accept individuals as a means of providing labor to the rapidly industrializing system, the United States is currently reach the status of a highly developed nation and no longer requires the massive influx of unskilled immigrants to power the means of economic growth. However, this is not to say that migration and integration is no longer encouraged. As was the case with the interviewee in question, it was rapidly determined that rather than merely representing unskilled labor that had come to the United States as a means of bettering her life, this individual was highly skilled and represented key assets of education and experience can be utilized within the US economic system. The ultimate financial incentives that drove her to se ek out opportunities within the United States remain the fundamental defining characteristics of why I like the United States is continually attractive. With regards to the question of whether or not she would consider going back to her own country, the response came not as a function of seeking to define the fact that she now considered yourself an American where that she identified with, understood, and appreciated American culture; rather, the response was concentric upon the fact that she would not be able to make the same level of money and her own country as she was able to within the United States. This understanding necessarily brings the reader/researcher to the realization as to why it oftentimes takes to or three generations in order for the individuals to consider themselves an

Operations Management Assignment Example | Topics and Well Written Essays - 1000 words

Operations Management - Assignment Example Techniques such as network analysis and critical path will be applied on McDonald’s restaurant as it is planning to set up a new franchise in Oxford town. 3.1. Linear Programming Linear programming is a technique that is used to identify the best possible outcome for the project considering the constraints or limitations the project manager or the operation manager has. Generally, the best possible outcome would be to achieve the lowest cost or to achieve the highest revenues from the project (Barlow, 2005). There are several reasons why organizations around the world use linear programming. McDonald’s can also make use of linear programming technique as they are setting up a new franchise in Oxford town. There can be different ways by which McDonald’s can use linear programming and some of the ways include: They can use this to find the optimal solution whether they should open the franchise or not in Oxford. Linear programming can be used to identify the number of staff the restaurant should keep. McDonald’s can also use linear programming to decide which products they need to offer. Therefore, McDonald’s can make use of linear programming to find the best solution and make sure that the new franchise is profitable. 3.2. ... Delays in the critical path would result the project manager in delaying in the whole project. By using network analysis, the management of McDonald’s can identify different tasks that would be required to start the new franchise at Oxford town. On the other hand, critical path would be used by the management of McDonald’s to identify the most important activities and there should not be any kind of delays in activities that are in the critical path because it would lead to the delay in the completion of the project. 3.3. Why a large McDonald’s restaurant needs Operational Planning and control Operational planning and control are of immense importance in making sure that the objectives of the project are achieved. Planning allows management to identify what and how things would be done and controlling would enable the management to analyze the performance against what has been planned. Deviations in the execution can be identified and adjusted only if the project is controlled effectively and if proper planning of the project is present (Simha and Word, 2009). Operation planning and controlling are important for every organization regardless of its size (Chase and Aquilano, 1977). Therefore, even large firms like McDonald’s would need to have proper operational plans and control. If the company does have an operational plan, it would lead to delay in the project and there might be possibilities that the project might not be completed. With proper planning, everyone including the operation or project manager would know what is required and how it would be performed and what each person is supposed to do. Controlling similarly will be of high importance to McDonald’s as the company would be able to identify and

How Plants are fingerprinted (Genetic) Research Paper

How Plants are fingerprinted (Genetic) - Research Paper Example It is based on polymorphism reaction taking place on the bases of the genome at molecular level and a number of techniques are based on Polymerase Chain Reaction ( PCR) used for the amplification of DNA. The basic technique of fingerprinting was developed by geneticist Alec J. Jeffery of Great Britain, who was associated with University of Leicester. DNA profiling is also used in plants for identifying different characters, identification of gene diversity and for the management of biodiversity. Widely used techniques are Restrictive fragment length polymorphism, randomly amplified polymorphism DNA, Inter sample sequence repeats, Simple sequence repeats. However, a number of traditional techniques are being used for the identification of DNA fingerprinting but new innovations are being made in the field to make the process easier and precise. These traditional methods of DNA testing involved the comparison of random pieces of DNA but afterwards more reproducible and accurate analysis were conducted based on the comparison of gene sequencing in a particular DNA strand. Living cells, from flora and animals to human beings, are composed of basic building blocks namely DNA or deoxy-ribonucleic acid. It guides the production of enzymes or compounds that are required for growth or development of various traits of living being. It is a hereditary material which is passed from one generation to another for the production of specific types of characteristics as guided by the genetic material. Nearly every cell in an organism’s body is composed of same type of DNA. The genetic information is stored in DNA in the codes of these four chemical bases namely Adenine, Thiamine, Guanine and cytosine. The order of these bases determines the encoded genetic information. And all of these parts combine to form a single nucleotide structure. The sugar from one nucleotide links with the base of other nucleotide forming the structure of double helix. Meanwhile the bases links

Sexual predators of young children in the Internet Essay

Sexual predators of young children in the Internet - Essay Example The online security risk of children from pedophiles has been made all the more higher because of easy access through the Internet. As the government tries to secure children however, where parents could be rest assured of some security, pedophiles have become wiser in securing information as in library files or through other means.Parental advice have been made available.As technology advances, information conveyance also advances. Thus the risk of various crimes such as human trafficking, including pedophilia, and illegal material trade caused by online incidents is all the more high. This paper looks into pedophilia particularly its risk on children as aided by the Internet.According to the American Psychiatric Association (APA) in their Diagnostic and Statistical Manual of Mental Disorders (2000), pedophilia is under the case of paraphilia. It is described as a psychosexual disorder in which a person fantasizes or is committing an act of sexual activity with pre-pubertal children (APA 2000). For online pedophiles, there are two categories: the dabbler and the preferential offender (Bennett and Hess 2001).The dabbler is essentially a typical adolescent searching for pornography, a curious adult with a newly found access to pornography; or a profit-motivated criminal. The other category named preferential offender is usually a sexually indiscriminate individual with a wide variety of deviant sexual interests or a pedophile with a definite preference for children (Bennett & Hess 2001).Historical antecedents... As reported in Christian Science Monitor (Ford 2004), there is even an open child-sex market identified as being in the German-Czech border district that began in 1996 with child prostitutes, the youngest being 6 years old. The pedophile case in the U.S. ranks second in the crimes being reported in the news (Killias 2000). Current importance. The Internet has become a primary medium by which pedophiles exchange images and experiences with one another. Many of these pedophiles belong to international organizations and web rings that are known to distribute pornographic images of children as well as other related material (Lesce 1999). Through Internet chat rooms, podcasts and streaming radio, pedophiles from diverse backgrounds are able to share information, swap stories, politically organize and even give tips on how to distribute to children a printable booklet that extols the benefits of sex with adults. Despite the illegality and societal outrage having sex with minors, the Internet support groups help them justify their behavior (Dawson, 2006). Many online pedophiles that target youngsters are aware of the needs and desires of the young and use their knowledge to exploit the youth through seduction or manipulation (U.S. Department of Justice 2007.). The trouble is that as stated by California's Megan's Law Online, not all sex offenders are caught and convicted (Office of the Attorney General 2007). Controversy. Some pedophiles regard themselves as pushing for legalization of child pornography and the loosening of age-of-consent laws. They view themselves as fighting for children's rights to engage in sex with adults. A Dutch group, in fact, formed a pedophile political party, and celebrated when a Dutch court

Best Dining Experience Essay Example for Free

Best Dining Experience Essay Although my favorite Mexican food to eat here is from my grandmother’s kitchen; there are a few restaurants my friends and I enjoy eating at. A few of my girlfriends and I have made Margarita Wednesdays a tradition in the summer time at La Casa. My brother, sister and I go to Los Cabos at least once a month in West Des Moines, which is an amazing delicious Mexican restaurant. I also like Monterrey in Altoona because it’s so close to my house, but no restaurant can compare to Tiki Tok in Mexico. My best friend and I were feeling spontaneous so we took a week off work and went on a cruise. We both found it difficult to eat on the ship because we were continually getting sea sick. I’ll never forget the fishy, chewy, and crunchy taste of the little shrimp and cocktail sauce going down my throat, or the unpleasant feeling I had when it was coming up. The only bad memory of my trip was praying that my legs would stop shaking and that my journey would hopefully reach an end so I could stand on solid ground. Other than being sea sick for the first day; I had a blast on the cruise! I got the opportunity to see many things and visit quite a few places. One of the ports of call was Cozumel, Mexico, and my friend Alexandra and I decided we wanted to try some real Mexican food. Of course, we were a little concerned about getting sick, but Im glad to say that didnt happen. We asked on the ship where the best place for Mexican food was, but they said that anywhere along the main shopping strip would be good. We then found a place called the Tiki Tok. The place was on the second level of a building. We sat out on the little balcony that they had. They had covered it with sand. The view from the restaurant was amazing. I was hypnotized by the vibrant colors and the employees’ of the restaurants equally vibrant lifestyles. I remember feeling jealous of the workers because they would get to go back to Tiki Tok tomorrow and the day after that, but I wouldn’t. The walls were an explosion of colorful textiles and every color of paint one could think of that was as bold as can be. Vases were on every table with burnt orange and deep yellow dried peppers inside. The chairs at the dining tables were made of a Mexican Serape material. The colors, the fringe, and the feel of it gave the restaurant even a stronger Mexican energy. My favorite part of the restaurants decor was the little cactus lights that strung amongst all the walls connecting each bulb to the wrought iron chandelier in the middle of the room. When one first enters the restaurant the Mariachi band is one of the most noticeable features. Three men were dressed in black with button up shirts and decorative sombreros all standing in the corner of the room. Two men had violins and the third was handling a guitar. As we took our seats the band started playing lively music and a few older couples got up and danced fearlessly. Everything in the restaurant was bold excluding my bashful personality; otherwise I would have danced too. I was in a trance watching the people dance with one another until the Mariachi band shouted in sync, â€Å"AY! † causing me to be brought back to the present. It was then that I had realized how hungry I was. The menu prices were in pesos, so it looked like everything was really expensive, but it wasnt. We ordered the hot and spicy red enchiladas which were about 60 pesos, and they also brought us chips and salsa. The chips were a little bit thicker than you would get here in the US, and there were three different types of salsas. There was a regular pico de gallo, then there was one made with tomatillos, and the last was a pineapple cilantro salsa that was actually really tasteful. Lexi and I have never had pineapple cilantro salsa before, so we weren’t sure whether it was going to be appetizing or not. After stuffing myself with chips our food finally arrived. It was just about the yummiest thing Ive ever had. The red sauce for the enchiladas was a little bit different than what Ive had here, but I cant tell you how. It was more delicious over there though. There was chicken inside the enchiladas and a touch of sour cream on top. We took the extra salsa we hadn’t demolished with the chips and smothered our enchiladas with it. I ate every last bite of it and was so full afterwards! The amazing food I had in Mexico was the best Mexican food I have ever had. I remember the smell of the ocean and sweet salsa at the same time. The bright colored sombreros and the ocean front view was an amazing sight to see while enjoying the food as well. Anytime I think about Mexico I think about the short beach chairs, sand between my toes, all the smells of the restaurant, laughing with my best friend and delicious enchiladas. This will be a memory that would be difficult to forget because we took so many pictures of the restaurant and it was the best eating experience I’ve had yet. Im really glad that my friend and I were able to have this dining experience together. Alexandra and I enjoyed it very much!

Von Neumann Architecture Essay Example for Free

Von Neumann Architecture Essay The greatest social transformation in Britain can be traced back in early 19th century. It was primarily due to the reform in life style or modernity (the introduction of machines industrialisation)which have caused a radical change on the location of work, which also became a driven force for vast number of people to move towards cities (urbanization).In contrary caused a drastic change on population size (over population )in city areas .The overall state political frame work was based on lassie fair, conservative(non-interventionist )approach where there are no or limited state intervention in redistributing resources . The economy was market wise economy system(free market).There were no social welfare amendments or services provided by the state , it was commonly considered as commodity and they were mainly provided by private sectors or volunteers (philanthropy’s ). The newly life style and overpopulation have caused massive social, political and economic problems which mandated the state to intervention in overcoming the situate (the need appeoch). The overpopulation have triggered various social disorders like shortage in housing , outbreak of new diseases, sanitation problem, poor health condition increase rate of unemployment and poverty..Etc. In the 19th century Britain was the uppermost in industry and trades (the first country to go through industrialized) and accounted as one of the richest country in the world while 30 % of the population were under poverty line (ref) the free market had aggravated great social conflict among haves and the have–not due to opposing interest and created excessive gap between social classes. However this stimulated the emergence of strong labour unions . There are two approaches on the evolution of welfare state. The need approach states diversion in life style (modernity) have caused the state to intervene and the conflict approach argues on class conflict and the growth of strong labour union as the result for the emergence of social welfare. Poor laws that were amended in 1601 and 1834 were considered to be the first measures taken by the state in order to address poverty (poor people) even though the means of poverty were not clearly understood. There were important factors which stimulated the government to contemplate poverty (welfare system) as an important issue. The Edwin Chadwick report led down the first lime stone for the formation of the first health act in 1848 also Charles booth made an outstanding study on poverty and the Courses he argues poverty should not be linked with laziness or poor people should not be blamed for their states.

The Alignment Of Compensation And Business Strategies Commerce Essay

The Alignment Of Compensation And Business Strategies Commerce Essay Compensation is a key element in the success of any business. Although compensation plans were not always seen as a strategic business initiative, their huge impact on a companys bottom line, recruiting, retaining and motivating people has led to compensation design being considered an important element to achieving success (OConnell, 2007). The alignment of compensation business strategies It is essential that a fair, competitive and attractive compensation plan is created in order to ensure the future success of the company. If the compensation plan is carried out properly it can improve organisational effectiveness, support human capital requirements of a business, and motivate and reward achievement of key corporate strategic and financial goals (OConnell, 2007: 20). It is thus essential that compensation plans are well thought out and effectively designed. Compensation is the answer to attracting, retaining and motivating employees who have the necessary competencies to carry out the business strategy and handle greater responsibilities (Milkovich, Newman Gerhart, 2007). Managers must take note of the rewards that motivate their employees. If this is not done, it may result in a mismatch between the strategies being used by managers to motivate their employees and the motivational rewards that the employees prefer (Arnolds Venter, 2007). This mismatch, as well as failure on the part of managers and employees to reach common ground in the pursuit of organisational objectives, can result in firms failing to successfully implement their business strategies. Employees will perform at a low level, doing only what is least expected of them when the reward systems are not aligned to their needs. They will not be motivated to put in extra effort so that the organisations goals can be achieved (Arnolds Venter, 2007). It is therefore important for all firms to regularly assess the rewards that motivate employees. Different organisations have different compensation policies in place. Matching compensation policies to business strategy leads to greater organisational performance (Montemayor, 1996). Some organisations are quick to introduce a new compensation program based on what they have heard about it. The problem is that it may not fit with their organisations strategic direction. Only programs that can move the organisation further along its strategic path should be identified and implemented (Kaplan, 2007). Ultimately, compensation strategies seek to either decrease costs or increase revenues relative to competitors (Milkovich et al, 2007). Compensation professionals play an important role in helping organisations put their business strategies into effect by introducing appropriate compensation plans. Compensation experts need to be at the focal point where strategy, organisational effectiveness and human capital management converge (OConnell, 2007: 25). It is important that they have a clear understanding of the business, the organisational issues and the direction in which the company is headed. Organisational, employee and business needs must be balanced with the financial and strategic goals of the company. Only then can the right compensation strategy be developed to motivate, reward and sustain high levels of performance. When this balance is found, a company can effectively use compensation to execute and achieve desired business results (OConnell, 2007: 25). For example, if a companys strategy is to be innovative, the strategy will focus on new products and a short response time to market trends. The compensation strategy must be tailored to align with the business strategy. A supporting compensation strategy will thus place less emphasis on evaluating skills and jobs and more emphasis will be placed on incentives designed to encourage innovations (Milkovich et al, 2007). A cost cutting business strategy will focus on efficiency and doing more with less. To support the business strategy, the compensation policy will focus on competitors labour costs, variable pay will be increased and productivity will be emphasised (Milkovich et al, 2007). A company with a customer-focused business strategy will focus on pleasing customers and employees will be paid according to how well they do this. The compensation strategy will thus include customer satisfaction incentives (Milkovich et al, 2007). In order to do better than its competitors, a firm m ust come up with ways in which it can add value by matching its business and pay strategies. When business strategies change, pay systems must also change (Milkovich et al, 2007). Organisations want to see the returns that they are getting from paying incentives, benefits and even base pay. Companies are starting to realise that by sharing in the economic gains of achieving targets, they keep employees motivated to reach increasingly difficult goals. When there is a clear line of sight between work and reward, employees will work harder to achieve the goals and receive the rewards (Ulrich, 1997). It has been suggested that performance-based pay works best when there is success to share (Milkovich et al, 2007: 54). An organisation can pay larger bonuses and stock awards when their profits or market share is on the rise. By paying bonuses fairly, employee attitudes and work behaviours improve, which in turn improves their performance (Milkovich et al, 2007). One of the major challenges in managing total compensation is to understand how the pay system can add value and create a more successful organisation. Internal alignment Internal alignment refers to comparisons among jobs or skill levels inside a single organisation. Jobs and peoples skills are compared in terms of their relative contributions to the organisations business objectives (Milkovich et al, 2007: 19). Internal alignment is not only concerned with the pay rates for employees doing equal work, but also for those employees doing different work. One challenge that managers face is how to determine differences in pay for people doing different work (Milkovich et al, 2007). An employees decision to stay with the organisation, to become more flexible by investing in additional training, or to seek greater responsibility is influenced by the pay that they receive (Milkovich et al, 2007: 19). A compensation system should not stand in the organisations way of retaining talented and productive employees. One of the main causes of employee turnover is inadequate compensation (Grobler, Warnich, Carrell, Elbert Hatfield, 2006). Tensions will result if employees feel that they are not being treated equally and this may cause employees to reduce their future efforts, change their perceptions regarding rewards for their efforts or leave the organisation (Grobler et al, 2006). Managements goal is to minimise turnover and lost production due to feelings among employees that they are not being compensated equitably. In order to ensure greater equity among jobs, a process known as job evaluation may be embarked upon, whereby a systematic relationship between the pay scales for jobs within an organisation is created. Job evaluation is the systematic determination of the relative worth of a job within the organisation that results in an organisations pay system (Grobler et al, 2006: 404). When comparing jobs, the following factors are taken into account: the skills needed to complete the job, the efforts needed to perform the job, the responsibilities of the job holder, and the working conditions of the job (Grobler et al, 2006). Job evaluation is preformed in order to develop a system of compensation that employees will consider to be fair, and in this way internal consistency among jobs is obtained. Internal consistency thus refers to the relationship between the pay structure, the design of the organisation and the work (Grobler et al, 2006). It is important to design a pay system that supports the work flow, is fair to employees and directs their behaviours toward organisation objectives (Grobler et al, 2006: 404). Many organisations are dividing their employees and creating different compensation plans for the different employee groups. For example, the executive team will be compensated one way, while a different approach will be used for the sales team, and yet another set of rules will apply to those working in the admin department. In todays business environment, a one-size-fits-all approach is no longer effectiveness (OConnell, 2007). Compensation methods have undergone a number of changes over the years such as the use of performance pay and other contingent systems of reward, the flattening of pay scales with fewer but broader pay grades and flexible cafeteria-style benefit systems (Brewster, Carey, Grobler, Holland Warnich, 2008). This new approach to compensation is known as strategic pay and is much more suitable to todays changing organisational environments and structures. Strategic pay flows from and implements an organisations business strategy. The old methods of compensation were associated with job-evaluated pay structures, time and seniority (Brewster et al, 2008: 188). These old methods were appropriate for hierarchical organisations who operated in a stable environment. Internal pay structures must be designed in such a way that employees will be motivated to achieve the organisations objectives. There must be a clear line-of-sight between each job and the objectives of the organisation. It is also essential that the structure is fair to all employees (Milkovich et al, 2007). To motivate employees, management can build the following ideas into their strategic pay structure: increase the proportion of pay contingent on performance, increase the potency of variable pay by making base salaries only moderately competitive, broaden the range of incentive schemes to include linking pay to group and organisational performance as well as individual performance, identify new performance measures of business success, and introduce flexibility into compensation plans so that rewards extend beyond monetary ones to include prizes and recognition (Brewster et al, 2008: 188). Pay structures vary among organisations depending on the number of levels within the organisation, the pay differentials between the levels, and the criteria used to determine the levels and differentials i.e. work content and its value. People are usually paid more if their job requires more knowledge or skills than another job, if their working conditions are unpleasant, or if their job adds a great deal of value. One reason for pay differentials is to motivate employees to work towards promotion and a higher-paying level (Milkovich et al, 2007). Internal structures are shaped by both external and organisation factors. External factors include: economic pressures; government policies, laws and regulations; stakeholders; and cultures and customs (Milkovich et al, 2007: 75). Organisation factors include: strategy; technology; human capital; HR policy; employee acceptance; and cost implications (Milkovich et al, 2007: 75). With regards to economic pressures, one job is paid more or less than another because of differences in relative productivity of the job and differences in how much a consumer values the output (Milkovich et al, 2007: 76). It will only be worthwhile to employ an additional worker if they can produce a value equal to the value of their wage. This is referred to as marginal productivity (Milkovich et al, 2007). The supply and demand for labour, products and services all affect internal structures. Organisations are constantly forced to redesign their work flow and employees must continuously learn new skills in order to keep up with changes in competitors products and customers tastes. Unpredictable external conditions require pay structures that support agile organisations and flexible people (Milkovich et al, 2007: 76). Government policies, laws and regulations also have an impact on the internal pay structure. Our law gives everybody the right to fair compensation. This is also known as the right to a living wage. Laws have also been put in place to govern minimum wages (Brewster et al, 2008). Pay-related legislation tries to achieve social welfare objectives by regulating economic forces (Milkovich et al, 2007). The government has influenced compensation by legislating pay levels, hours of work, pay for overtime and holidays and non-discriminatory pay practices (Grobler et al, 2006: 187). The Basic Conditions of Employment Act has a direct impact on a companys compensation strategy. Unions, stockholders and political groups also influence the internal pay structure. In order to promote solidarity among members, unions generally prefer small differences among jobs and seniority-based promotions. Stockholders compare the salaries paid to executives with the salaries paid to others in the organisation. Stockholders are interested in this difference (Milkovich et al, 2007). If the pay structure is not aligned to the organisations strategy it can become an obstacle to the achievement of the organisations goals. Another factor that has an impact on internal structures is human capital. Human capital refers to the education, experience, knowledge, abilities and skills required to perform the work (Milkovich et al, 2007: 78). The technology used will influence the organisational design, the work that needs to be performed, and the skills or knowledge that is needed to perform the work (Milkovich et al, 2007). The organisations other HR policies also have an impact on the internal pay structure. The more levels an organisation has, the more promotions it can offer, but the pay differences between the levels may be smaller. It is believed that when promotions take place often, even if they do not include pay increases, employees develop a sense of career progress (Milkovich et al, 2007). Some companies develop talent from within the organisation. This also se rves to retain top talent. These candidates are promoted when job vacancies arise. The result is that they do not have to employ expensive talent from outside the organisation. It is also easier to manage these individuals as they are already aligned with the culture and business priorities of the organisation. This leads to a greater return on the companys investment (Barnes, 2009). Another important factor influencing the internal pay structure is whether or not the employees involved accept it. In order to assess the fairness of their pay, employees compare the pay that they receive to that which others receive for doing different jobs in the same internal structure. They also look at what others are paid for doing the same job at competing employers (Milkovich et al, 2007). The procedures for determining the pay structure must be fair as well as the pay structure itself. It has been suggested that employees and managers will accept low pay if they believe that the way in which the pay was determined is fair. It is likely that the pay procedures will be considered fair if they are consistently applied to all employees, if employees participated in the process, if appeals procedures are included, and if the data used are accurate (Milkovich et al, 2007: 80). Pay structures do not stay constant. They change in response to external factors. An organisation will achieve much better results if the structure is aligned. The structure must be perceived as fair by the employees and it must motivate them to achieve the organisations goals. If there is a big pay differential between an entry level job and the highest level job in an organisation, it can encourage employees to stay with the employer and increase their training and experience. It can also result in greater co-operation with co-workers and for employees to look for more responsibility within the organisation (Milkovich et al, 2007). External competitiveness External competitiveness refers to the level of pay that an organisation offers in comparison with its competitors (Montemayor, 1996). This has a huge impact on the attraction and retention of talent as well as on labour cost objectives. With a high pay level, the organisation will be better able to acquire a competent workforce. By increasing the pay level, total labour costs will increase but it may also result in improved labour costs per unit (Montemayor, 1996). The efficiency wage theory states that paying above market levels can promote employee motivation that would offset any increment in labour costs (Montemayor, 1996: 891). The pay systems of many organisations are market-driven i.e. based on what competitors pay. In the hope of attracting the best applicants, some organisations set their pay levels above that of their competitors (Milkovich et al, 2007). In order to compete with the external market, organisations must ensure that the pay that they are offering is sufficient to attract and retain employees. Employees are likely to leave an organisation if they believe that their pay is not competitive in comparison to what other employers are offering. Organisations must also ensure that they control their labour costs so that they can supply their products and services at a good price and remain competitive in the global economy (Milkovich et al, 2007). It is essential that when companies prepare their business strategies they decide how they are going to compete in the marketplace. For example, they can choose to compete on price, or they may prefer to differentiate themselves based on products or ser vices, they could even decide to segment the market and only focus on a particular group of buyers. Understanding the competition is key (Kaplan, 2007). Employers can better differentiate themselves from their competition by introducing learning and development programs and creating a fun and flexible work environment. These are also known as relational rewards. These initiatives will enhance employee commitment to the organisation (Kaplan, 2007). Employers that are highly-rated usually receive more employment applications as people want to work for the best organisation. The high ratings also result in improved retention of staff and greater profitability as committed employees usually provide better customer service (Kaplan, 2007). Job applicants who receive more than one offer will compare the offers and the pay scales. More weight is often placed on the salary being offered rather than on the other types of compensation, like benefits and intrinsic rewards (Grobler et al, 2006). In order to remain competitive within the local labour market, employers usually offer salaries that are similar to those offered by competitors. Employers thus need to know what the going rate is for jobs within the local labour market. Wage surveys as well as published market data can be used to determine the average salaries for various positions. These methods assist the organisation in maintaining external consistency with other organisations (Grobler et al, 2006). An important strategic decision must be made as to whether the organisation should mirror what its competitors are paying, or whether it should design its own pay structure that differs from its competitors but is aligned to the business strategy. The pay level can be set above, below or equal to that of competitors. The mix of pay forms must also be determined relative to those of competitors (Milkovich et al, 2007). The following three factors shape external competitiveness: labour market factors, product market factors and organisation factors. Together these factors influence pay-level and pay-mix decisions (Milkovich et al, 2007). As mentioned above, organisations usually claim to be market-driven. Looking at the demand and supply of labour gives one a greater understanding of how the markets work. The demand side deals with the actions of the employer i.e. the number of new employees they require, and what they are willing and able to pay them. The supply side deals with the potential employees i.e. their qualifications and the pay that they are likely to accept (Milkovich et al, 2007). The market rate is found at the point where the demand for labour meets the supply of labour. In the short run, the only way that an organisation can change its level of production is by changing its level of human resources. The other factors of production, such as technology, capital and natural resources are fixed in the short run. The marginal product of labour is the additional output associated with the employment of one additional person (Milkovich et al, 2007: 207). However, each additional employee hired will produce less than the previous employee due to the fact that the factors of production are fixed. Each employee thus has fewer resources to work with. The additional amount that each new employee produces is known as the marginal product (Milkovich et al, 2007). When the marginal product is sold, the money that is generated from the sale is known as marginal revenue. Employers will hire new staff until the marginal revenue generated by the last hire is equal to the costs associated with employing that person (Milkovich et al, 2007: 208). At this point the employ er is maximising their profits. Therefore, in order to determine how many people to employ, a manager must establish two things: the pay level that is set by the market forces and the marginal revenue generated by each new employee (Milkovich et al, 2007). This, however, is not so easy to do in reality. With regards to labour supply, the model assumes that many people are seeking jobs, that they possess accurate information about all job openings and that no barriers to mobility exists (Milkovich et al, 2007: 209). It is not so simple in the real world. For example, the supply curve slopes upward and shows that as pay increases more people will want to take jobs. In the case where unemployment is very low, supply may not increase with offers of higher pay as everybody has a job (Milkovich et al, 2007). The model provides a useful analytical framework but oversimplifies reality. In certain instances employers pay more than the market-rate. For example, if there are negative elements to a job such as very expensive training, small chances of success, weak job security and unpleasant working conditions, employers may decide to pay higher wages in order to compensate for the negative characteristics. This is referred to as compensating differentials (Milkovich et al, 2007). As mentioned above, in terms of the efficiency wage theory, high wages can in fact increase efficiency and lower labour costs. This can be achieved by attracting more qualified applicants and encouraging existing employees to work harder or smarter. It is assumed that the pay level determines effort (Milkovich et al, 2007). An organisations ability to pay is also an important issue. The greater an organisations profits in comparison with its competitors the more it is able to share with its employees. These organisations will usually pay more that their competitors and may even pay bonuses in line with their profitability (Milkovich et al, 2007). Employers can design their pay levels and mix in such a way that a signal is sent to both current and future employees as to the kinds of behaviour that they require. This is known as signaling. For example, if the organisations base pay is below the market-rate but they offer good bonuses, they may be sending a signal that employees who are risk takers are required. If the organisation pays the market wage and offers no performance-based pay, a different signal is sent and different people are attracted. Signaling helps to communicate expectations (Milkovich et al, 2007). There are also two theories that help us to understand employee behaviour. A job seeker will not accept a job offer if the wage is below a certain amount irrespective of the other benefits or job attributes. This is known as the reservation wage. It may be above or below the market-rate (Milkovich et al, 2007). The second theory is the human capital theory. In terms of this theory, those who have improved their productive abilities by investing in themselves through education, training etc will earn higher wages (Milkovich et al, 2007). The next factor that shapes external competitiveness is the product market and ability to pay. To a large extent, product market conditions determine what the organisation can afford to pay its employees. The organisations ability to change what it charges for its products and services is affected by the demand for the product and the amount of competition (Milkovich et al, 2007). An employer who increases their wage level will either choose to increase its prices, thereby passing the higher labour costs on to consumers, or it can choose to keep prices fixed and pay the increased labour costs out of their revenues. If an employer is operating in a very competitive market they will not easily be able to increase prices (Milkovich et al, 2007). Lastly, organisation factors include characteristics that are unique to each organisation and their employees such as: industry and technology, employer size, peoples preferences and organisational strategy (Milkovich et al, 2007). The industry in which an organisation competes influences the technologies used (Milkovich et al, 2007: 216). Lower wages are paid in labour-intensive industries than in technology-intensive industries. When new technology is introduced within an industry, pay levels are also affected (Milkovich et al, 2007). Large organisations generally pay more than small ones. In big organisations, talented people have a greater marginal value as they are able to influence more people and decisions resulting in larger profits for the organisation (Milkovich et al, 2007). Better understanding of employee preferences is increasingly important in determining external competitiveness (Milkovich et al, 2007: 217). It is, however, difficult to measure preferences. It has been found that pay is more important to people than they are willing to admit (Milkovich et al, 2007). With regards to organisation strategy, some employers compete by adopting a low-wage, no services strategy. These organisations, such as Nike and Reebok, often rely on outsourcing to manufacture their products. Other organisations may choose a low-wage, high services strategy or even a high-wage, high services approach (Milkovich et al, 2007). Employers will pay more than their competitors if the job has a direct impact on the success of the organisation. Pay levels will equal that of competitors in jobs that have less of an impact on the success of the organisation. Evidence shows that those organisations with higher-skilled workers who make use of high-performance work practices and computer-based technology also pay higher wages (Milkovich et al, 2007). The integration of internal alignment external competitiveness In order for a compensation strategy to be successful it must blend internal consistency with market competitiveness, and must be structured to recognise the credentials, knowledge and performance of the individuals involved (Martocchio, 2001). An appropriate compensation policy is designed around the organisational structure, competitive position, leadership style and the strategic plan of the organisation (Santone, Sigler Britt, 1993: 86). A mentioned above, one of the main causes of employee turnover is inadequate compensation. The competitiveness of pay will affect the organisations ability to achieve its compensation objectives, and this in turn will affect its performance (Milkovich et al, 2007: 221). It is common for organisations to match the rates paid by their competitors. If organisations fail to do so, the existing employees will be unhappy and the organisations ability to recruit will be limited (Milkovich et al, 2007). Such a policy will result in the organisations wage costs being similar to that of its product competitors and the organisations ability to attract new employees will thus also be similar to its labour market competitors (Milkovich et al, 2007). Job evaluation, whereby the worth of a job within an organisation is determined, is performed in order to develop a system of compensation that employees will find fair. In this way, internal consistency among jobs is obtained (Grobler et al, 2006). However, if a competitor is willing to pay an employee a higher wage to do the same work, the employee will leave their current job to earn better pay elsewhere. An employer must therefore not only consider what they are willing to pay for a particular job but also what the competitors are paying for the same job. This is important if they want to attract and retain quality workers. Conclusion It is important that companies ensure that their reward systems are aligned with their organisational goals, strategy and culture. Strategic compensation allows for employees to earn incentives if they accomplish company goals. Compensation has a huge effect on recruiting, retaining and motivating people. The compensation strategy of an organisation also has a direct impact on its performance. Internal alignment and external competitiveness should be integrated when forming the pay structure. Practical Core strategy details ABSA SARS Objectives -Attract and retain high quality individuals with the optimum mix of skills, competencies and values. -Motivate and reinforce superior performance. -Encourage the development of skills and competencies required to meet current and future objectives. -Employees should share in the success of the business. -Drive productivity, service quality and cost efficiency. -Enable employees to perform at their peak. -Build a skills inflow through the graduate and youth recruitment programme. Internal alignment -Remunerate people fairly and consistently according to their contribution. -Ensure that employees of equal value are remunerated more or less equally. -Parity in the immediate environment is the most important. -Fair remuneration. -Recognition system. -Employee development. -Talent management. Externally competitive -Set cost to company (CTC) at the market median. -Reads the market regularly to strategically position itself at mid-market for fixed remuneration packages with differentiation between employees via variable reward programmes. -Differentiates aggressively between levels of performance. -Emphasis on variable pay i.e. incentive and commission schemes. -Incentive system in place. Employee contributions Direct rewards (standard): Fixed remuneration (CTC), allowances, overtime, leave encashments, variable/ performance based pay (long and short-term incentives). Direct rewards (non-standard): Commission. Indirect reward: Recognition rewards (prestige awards, service heroes, long service awards). Bursaries for employees and employee dependants. Benefits: free banking, staff interest rates, disability support fund, leave. -Fixed remuneration, allowances. -Overtime. -Government subsidies. -Incentive pay. Management -Open and transparent communication. -Objective remuneration decisions. -Show genuine care and concern. -Create an enabling environment. Rewards/ compensation strategic map LOW HIGH Objectives Attraction and retention Superior performance Quality service Please see attachment Internal al