A Challenge to Traditional Theory

A challenge to traditional management theory Ed Weymes Introduction Modern management theories are focussed on how individuals contribute to organisation and corporate performance while the performance of the chief executive is dictated by the organisation’s ? nancial returns and share price. While organisations espouse the principles associated with total quality management, learning organisations, high performance organisations and implement balanced score cards, the chief executive’s primary focus is ? ated on retaining control of the organisation to meet shareholder expectations. As we enter the new millennium the corporate world has been rocked by the scandals involving Enron, Worldcom and Adelphia in the USA and in Europe by Parmalat and Mannesmann. These, and a host of other organisations, have been publicly criticised for fraudulent accounting practises or excessive personal gain for the chief executive and senior members of the administration while creating a ? nancial catastrophe for employees and shareholders. The public no longer trusts the corporate world.The World Economic Forum’s (2004) global surveys on trust in 2004 and 2002 indicate that people’s trust levels in global and large domestic companies remain very low with less than 10 per cent of respondents reporting â€Å"a lot of trust† in these institutions operating in the best interests of society. (The results for 2004 show some improvement over 2002. ) In Europe, the concept of corporate social responsibility (CSR) is the subject of many boardroom discussions and in the USA the Dow Jones publishes a CSR index on the premise that many investors believe ? ms who practice social responsibility provide better long term ? nancial returns. The intent of CSR is to add value to society, to leave the world in a better position for our grandchildren by building environmental and social responsibilities into the traditional economic equation. Proponents of CSR claim that this approach will restore public trust and respectability in the corporation, while the â€Å"non-believers† state that the concepts of CSR only re? ect appropriate standards of corporate governance and there is no need for CSR as a separate movement.Twenty years ago similar sentiments were expressed about â€Å"quality† but the quality movement ensured that the concept is now a necessary but not suf? cient condition for effective competition. As we enter the twenty-? rst century the concept of corporate citizenship has captured the attention not only of corporate leaders but also society. The corporate scandals associated with Enron in the USA and Parmalat in Europe together with the collapse of Arthur Anderson, the respecting accounting, auditing and consulting global giant, The author Ed Weymes is Associate Professor at the University of Waikato Management School, Hamilton, New Zealand.Keywords Management theory, Philosophy, Social responsibility Abstract Thi s paper challenges the philosophy underlying traditional management thinking. The historic and possibly arcane purpose of business, to maximise shareholder wealth, is no longer a relevant proposition. Academics and managers need to rethink the philosophical framework of management theory. For the past 50 years the management literature has adopted a more â€Å"human† approach to the management of organisations yet the importance of systems and process and performance measurers associated with the scienti? c theory of management prevails.With the growing importance of knowledge creation and the corporate social responsibility movement it is timely to re? ect on the purpose of business as adding value to society and rejecting the focus on accumulation of personal wealth. Knowledgecreating enterprises are founded on the development of sustainable relationships within the organisation and with stakeholders and thus require a different philosophical perspective. Electronic access The Emerald Research Register for this journal is available at www. emeraldinsight. com/researchregister The current issue and full text archive of this journal is available at www. meraldinsight. com/1463-6689. htm foresight Volume 6  · Number 6  · 2004  · pp. 338-348 q Emerald Group Publishing Limited  · ISSN 1463-6689 DOI 10. 1108/14636680410569911 338 A challenge to traditional management theory foresight Volume 6  · Number 6  · 2004  · 338-348 Ed Weymes has signi? cantly reduced worldwide public trust in the corporate community. In the recent World Economic Forum (2004) survey on trust, only 7 per cent of respondents reported that global companies operate in the best interests of society. While this ? gure is a small improvement over the 2002 survey public trust in the corporate community is low.Organisations are seen as pro? t generating and wealth enhancing for the select few. The scale of the public outcry against unethical behaviour has turned the spotlight to wards the importance of corporate citizenship, ensuring that organisations focus on social and environmental issues as well as the economic returns. Public attention appears to be less focussed on individual wealth creation but on the manner in which wealth is created. Individuals who exploit others for personal gain or who exploit society or the environment for their own advantage will not be tolerated.In 2003 a PricewaterhouseCoopers (2003a) survey found that 75 per cent of chief executive of? cers (CEOs) surveyed stated they would forgo short-term pro? ts in order to implement a sustainability programme. Yet the highlight of the business news remains stock market performance and share price. Despite the move towards a greater focus on people in the organisation and concern for the environment, organisations remain numbers driven and subject to the vagaries of the ? nancial markets. Chief executives measure their success by their impact on EPS and not their contribution to the soc ial or environmental issues.But today’s CEO also recognises the core competence of the organisation lies in the knowledge and skills of its people. Gone are the days when product design, production process or customer service could create competitive advantage. It is the skills and abilities of the individual staff members that dictate the future of the organisation. Thus, the organisation must ensure staff are challenged and suitably rewarded and today we see organisations offering attractive remuneration packages including child care and a host of other bene? ts.But are such packages attractive if they are designed to buy the soul of the employee and not build trust between the individuals within the organisation? Today the chief executive is challenged with the task of building trust and integrity in the organisation. When trust pervades the organisation there is commitment from the staff and support from the external community. Trust is based on shared values and value sy stems lie at the heart of human behaviour, behaviour that cannot be controlled through systems and processes, the traditional operating standard for many organisations.If corporate social responsibility is vested in gaining the trust of stakeholders, inside and outside the organisation, then the fundamental philosophy must be based on the organisation’s ability to build relationships. Relationships are established between people and cannot be mandated by strict adherence to systems and processes. The people within the organisation must subscribe to the values of the organisation and those outside the organisation must admire those values. The organisation must be values driven.Thus the organisation that espouses corporate social responsibility must develop an environment where people in the organisation work together in a harmonious manner and external stakeholders form an emotional connection with the organisation while maintaining its commitment to the ? nancial investors. Traditionally, the dilemma of the CEO has been described as â€Å"balancing shareholder demands with achieving longevity or sustainability†. Perhaps the dilemma should be rewritten; â€Å"providing an environment that espouses individual freedom while ensuring the ? ancial and non-? nancial targets of the organisation are met†. Individual freedom provides the basis for creativity, innovation and building trust between individuals within and outside the organisation. Critics would argue that in an environment where individual freedom abounds, anarchy prevails. Organisations need control, but controls, when imposed from above, can dictate behaviour and constrain creativity. Performance criteria will remain key factors in the life of the organisation and the longevity of the CEO.However, the organisation and its senior executives need to shift their focus from one that is numbers based to one vested in the establishment of an environment designed to build trust and to mai ntain the appropriate performance measures which are acceptable to its staff. Thus the dilemma becomes not control or individual freedom but control with the ability for individual self-expression. In the East this is seen as the balance between the yang (bright) and the yin (dark). This paper explores how such a balance may be attained in an organisation.Challenging traditional management theory While Descartes (Scruton, 2002, p. 3) is often cited as the father of modern philosophy the roots of philosophy can be traced back to Plato (Scruton, 2002, p. 3) and his scholar Aristotle (Vanier, 2001, p. 2). Their writings on human nature, humaneness and their search for a human identity still bear relevance today. Human behaviour is vested in the individual but humaneness, human nature, is presented as happiness, a virtue that cannot be attained in isolation. For Plato, the guiding nature of a relationship is to be found in love and friendship; 39 A challenge to traditional management th eory foresight Volume 6  · Number 6  · 2004  · 338-348 Ed Weymes through friendship we seek to improve ourselves and help others to improve. Aristotle further developed this point when he described human nature as â€Å"the good to which all things aim†. As human beings we strive to do good and good actions promote happiness; a virtue that Aristotle describes as the keystone of human behaviour, the perfect activity. Happiness is the virtue that bestows honour on ourselves and on others. It was Marx’s (Scruton, 2002, p. 23) vision of the individual being constituted through social activities, de? ned as labour; language, customs and institutions (speci? cally economic institutions), that was to move philosophical theory away from relationships and towards individual material gains. Adam Smith (Scruton, 2002, p. 224) attempted to demonstrate that free exchange and accumulation of private property, under the guidance of self-interest, not only preserves justice but also promotes the social wellbeing as a whole, satisfying existing needs and guaranteeing stability. This subtle, but signi? ant, shift in philosophical focus from human relationships to individual personal gains in? uenced the development of the theory of bureaucracy, whose purpose was to command and control the behaviour of many for the gain of the few, a philosophy in direct opposition to that of Aristotle and others. The social landscape of the Western economies in the early 1900s was being transformed as the industrial revolution gained momentum and the capitalist society emerged. Organisations were, and to some extent remain, characterised by; a hierarchy of authority, impersonal rules that de? e duties, standardised procedures, promotion based on achievement and specialised labour. Those responsible for the operation of these facilities required a system to control behaviour. Weber opined that bureaucracy was capable of attaining the highest degree of ef? ciency and the most rationally known means of exercising authority over human beings. F. W. Taylor (1911) adopted this philosophy, developing the scienti? c approach to management, which stated that jobs could be speci? ed, work methods improved and rationalised through careful study and scienti? c analysis.The driving force of the organisation was ef? ciency, increasing output and the wealth of the owners. Employees were not to be trusted and required stringent controls to ensure their behaviour was focussed on increased productivity. The era of command and control had arrived and the â€Å"robber barons† prospered with personal fortunes being amassed by the select few. Human rights were ignored as were environmental concerns with many factories polluting the land, water and air in their vicinity. As early as the 1950s the Tavistock Institute in England and the Quality of Working Life inSweden were challenging this mechanistic approach to organisation structure. Douglas McGregor (1960) challeng ed the scienti? c approach to management in his book The Human Side of Enterprise. Theory X postulated that people had to be driven by extrinsic rewards, by punishment or by bureaucratic control. Theory Y opined that individuals could be intrinsically motivated by interesting work and could be directed and managed by their own behaviour. For the next 40 years, theory Y was to be treated as the â€Å"soft side† of management while â€Å"real† ? ms, whose motive was to maximise shareholder wealth, sought operational ef? ciencies through speci? ed procedures and rigid controls. The period 1945 to early 1970 was one of growth and expansion in the West. Markets were growing and the multinational ? rm became established. Pro? ts grew, not by gains in market share but by increasing market size. Inef? ciencies and poor management practices were hidden. Then in the mid-1970s the ? rst oil shock occurred. Poor management practices were exposed. The good times were over and the W est struggled to readjust to the new market conditions.The â€Å"new† approaches to management The 1980s saw the introduction of the total quality management movement, founded by W. E. Deming (1982), which promoted a participative style of management. Although Deming was a statistician he believed that a new approach to management was required to replace the scienti? c approach to management with its associated systems and procedures. At the end of WWII, he volunteered to travel to Japan to assist in the reestablishment of Japanese Industry. Here he could implement his new concepts that were willingly adopted by the Japanese ? rms.In 1979, Deming’s work in Japan was broadcast on American television and overnight TQM became the saviour for American industry. By the early 1980s productivity in the West was abysmal and the US Government introduced the Baldridge Quality Awards in 1987 to promote the importance of quality. These quality awards have since been adopted around the world and are based on the 14 criteria speci? ed by Deming. In 1990, Peter Senge (1990) published his book The Fifth Discipline which was to challenge the scienti? c theory of management by introducing the concept of systems theory to organisational design.While the scienti? c theory was founded on the assumption that an organisation was a closed system, where activities within organizations could be broken down into discrete activities, systems 340 A challenge to traditional management theory foresight Volume 6  · Number 6  · 2004  · 338-348 Ed Weymes thinking was suggesting the organization should be considered as an open system and not a series of discrete parts. The writings of Charles Handy, Margaret Wheatley, Peter Drucker and a plethora of others have supported the work of Senge.By the mid-1990s, the concept of the high performance organisation had emerged. Every CEO wanted to be a HPO but there was no universal de? nition of high performance. Like quality this was something that could be recognised but which escaped de? nition. However, Edward Lawler (1996) did present six principles that captured the essence of the HPO: (1) organisation can be the ultimate competitive advantage; (2) involvement can be the most ef? cient form of control; (3) all employees must add signi? cant value; (4) lateral processes are the key to organisational ef? iency; (5) organisations should be designed around products and customers (not functions); and (6) effective leadership is the key to organisational leadership (Lawler, 1996, p. 22). For over 20 years organisations have espoused the principles of TQM, they have re-engineered the organisation and purported to be high performers. Organisational theory appears to be spurning the scienti? c approach to management. Cloke and Goldsmith (2002) titled their book The End of Management and the Rise of Organizational Democracy: Autocracy, hierarchy, bureaucracy and management are gradually being replaced by democracy, ? t, collaboration and self managing teams. Permanent, stockpiled, one -size-? ts-all policies are giving way to innovative, just-in-time, evolving, made to order initiatives. Silos and competitive departments are being deconstructed into living evolving webs of association. Isolated, cynical, immature, apathetic employees are being transformed into connected, motivated, value driven, responsible employee owners (Cloke and Goldsmith, 2002, p. 4). Today the social evolutionary process appears to be increasingly dominated by values and emotions and less by individual goal-orientated rationality.As the chairman of Phillips (2002, p. 2) states: Building sustainable development into our business processes is the ultimate opportunity. By its very nature the journey towards sustainability requires the kind of breakthrough thinking that results in true innovation. It calls for partnerships and true cooperation as well as open honest dialogue with stakeholders inside and outside the company. The command and control environment was designed to modify or control behaviour and not to build trust between individuals through the formation of sustainable relationships. Relationships develop when there is a sharing of alues, attitudes and beliefs between the people in the organisation. Those within the organisation subscribe to the values and those outside the organisation admire the values. Thus relationships are established between people and cannot be mandated by systems and processes. At the turn of the twentieth century, competitive advantage was in? uenced by an organisations ability to produce goods ef? ciently: the production era. The production economy was followed by the market economy, the service economy and today competitive advantage is determined by an organisation’s ability to develop intellectual property: the knowledge economy.When knowledge creation becomes the key to competitive advantage an organisation needs to foster an environment where individu al creativity and innovation can ? ourish. Such an environment can be established when; the individuals in the organisation are committed to the purpose of the organisation, when the organisation is driven by common values and shared beliefs, when the fear of failure has been eliminated and the individuals within the organisation do not feel constrained by rules and regulations, systems and processes.But organisational performance remains vested in key performance indicators. For public companies, shareholder expectation drives performance and the future of the CEO. The ? nancial press remains focussed on stock market performance and corporate ? nancial results remain the highlights of the business news. When an organisation is numbers driven, systems and processes are designed to ensure that targets are achieved. But such measurers in? uence and constrain individual behaviour, thus limiting the opportunity for creativity and innovation.If the reader accepts the above three premises ; the move to a people focused organisation, the move to encourage creativity and the restoration of public con? dence, then the dilemma of the chief executive can be rewritten to, â€Å"providing an environment that espouses individual freedom and bene? ts society while ensuring the ? nancial and non-? nancial targets of the organisation are met†. If such an approach is adopted the focus of the organisation must be transformed from the traditional concepts associated with bureaucracy, to a philosophy vested in humaneness.A people focused organisation that facilitates the generation of new and innovative approaches, fosters a harmonious working environment and builds trust and integrity for all stakeholders. A new philosophical approach is required to provide the foundation of management theory, one which is not based on the Marxist perspective, that individuals are focussed on materialism and seeking self ful? lment, but one 341 A challenge to traditional management theory f oresight Volume 6  · Number 6  · 2004  · 338-348 . . Ed Weymes focussed on a social perspective vested in the norms and values of society.Thus we appear to be faced with a dilemma. Human nature is vested in individual freedom and the need for the individual to live their life according to their own values but society, in which the individual lives, can only be managed through the adoption of systems and procedures. Since both arguments are correct no one single Western philosophy can be applied to manage today’s society which requires a perspective that balances the need for individual freedom with rules and regulations required to ensure an orderly society. . . To love men – the equivalent of benevolence.Only the man of humanity knows how to love people and to hate people – to hate evil. To be respectful in private life, be serious in handling affairs and to be loyal in dealing with others. To master oneself and return to propriety is humanity. To overcom e the sel? sh desires within ourselves, to cultivate the mind and heart within ourselves so it can be extended to every aspect of our life allowing good will to ? ow to others. Eastern philosophy While there is no one dominant Eastern philosophy the region has provided a mosaic of philosophical perspectives on life and the meaning of life.From Hindu to Dao, from Islam to Tao from Buddhism to Confucianism there may be few common themes and while all are religions, Confucianism is considered to be more of a philosophy than a belief. Master Kung (Confucius) was born into a poor noble family in 552BC in the State of Lu in China. This was a period on China’s history known as the â€Å"hundred schools† with teachers wandering from town to town expounding their theories on how the various rulers could improve their ? efdom. Sun Tzu taught the art of warfare and strategy while Kung’s teachings were of a more philosophical nature.Popular Confucianism emphasises family va lues; dignity, diligence and education, where there is no disparity between the self-cultivation of the individual and the interests of the community. The individual and the community are part of one harmonious whole represented in Confucian philosophy as Li (rituals) and Ren (benevolence or humaneness). Chief executives are faced with the balance between individual freedom (Ren) and the need to achieve shareholder expectations through the application of systems (Li).Traditionally, the focus has been on the development of systems but perhaps it is time to turn our attention to the people in the organisation. The work of Confucius adapted this approach to prescribe an ordered ad sustainable society. Confucius considered Ren (humaneness) to be at the centre of his teaching while many of his scholars, including Mencius, placed equal emphasis on the Ren and Li. Ren is not considered to be a virtue but the fundamental virtue that de? nes human nature.Translations of Ren include benevolen ce, perfect virtue, human heartedness and humanity. While the concept was never clearly de? ned by Confucius the following are considered representative de? nitions (Liu, 1998, p. 17): Confucius presents a perspective similar to the early Western philosophers, from the writings of Aristotle (Vanier, 2001, p. 7), who encourages us to â€Å"look within ourselves to ? nd that inner structure to act correctly and speak the truth†, to Kant (Scruton, 2002, p. 155) who opined that â€Å"we are all of equal importance to others around us†.In Confucianism, â€Å"humaneness† can only be depicted inside a relationship, â€Å"the humane man, desiring to establish himself, seeks to establish others; desiring himself to succeed, helps others to succeed. To judge others by what one knows of oneself is a method of achieving humanity† (Liu, 1998, p. 18). Similar sentiments are re? ected in the work of Plato and Kant who encourage us to improve ourselves by helping others to improve. Thus Ren can be de? ned as: . a benevolent attitude towards people; . the realisation of the intrinsic value of each individual life; and . resolute commitment to an ideal principle. Confucius developed this humanistic approach to how a ruler should lead his people (or how an organisation should manage its staff) arguing that the moral discipline of the self and the well being of the people cannot be separated. He suggested that when the people are governed by law and punishment they will avoid wrongdoing but will have no sense of honour or shame. But when the ruler leads with virtue and governs by the rules of propriety they will have a sense of shame and more over set themselves right.From the organisational perspective while staff may conform to prescribed systems and processes they may lack the commitment to the organisation that is required to allow innovation and creativity to ? ourish. Confucius recognised that individuals live within a society governed by the rul es of propriety (Li). However, these rules should not be imposed from above, as in a bureaucratic organisation, where rules are designed to modify and control behaviour. The rules of society or an organisation should be vested in Ren so that the members of society or the organisation accept the rules and laws as those that de? e acceptable behaviour. 342 A challenge to traditional management theory foresight Volume 6  · Number 6  · 2004  · 338-348 Ed Weymes Eastern philosophy provides a perspective where the behaviour of the individual is seen as a harmonistic balance between the individual and how that individual interacts in social relationships. Confucianism provides a philosophy that unites the individual right to choose their own destiny while allowing for the appropriate controls and regulations associated with a complex and technologically driven society.The framework, associated with the bureaucratic organisation and traditional management theory, was designed to contr ol behaviour. Modern management theory and practice has demonstrated that bureaucracy is no longer an effective model. Similarly the demise of the market economy, posited by Marx has also proved to be invalid. Today we cannot rely on one philosophical model to provide a framework for organisation design, since individual freedom must be tempered with bureaucratic controls. The relationship between Ren and Li possibly provides a model that may resolve the dilemma.East meets West Great thinkers from opposite ends of the earth interested in the same question: What constitutes right and wrong and what behaviours contribute to a good society? The similarities in their conclusions are remarkable: . the value and importance of ideals – dreams and visions; . the love of learning; . the need for self improvement; . out attitude towards and treatment of other people is important; . to understand others we must understand ourselves – humaneness; . we improve ourselves by improvin g others; . pursuit of wisdom and virtue will lead to the good life; and . elationships are the key to happiness – goodness; Confucius and the early Western philosophers including Aristotle, Kant and Shaftsbury perceived the need for a relationship between the family and the state and argued that shared values and ideals were central to all relationships. The role of education was recognised as the key to self-improvement and living a virtuous life. Both Eastern and Western philosophers believed that individuals seek to do good and that by becoming more virtuous a person could improve their life.Similarly there was an agreement that individuals must seek the courage to do the right thing. Through education, wisdom is attained and the starting point for attaining wisdom is self knowledge. Recognising not only what we know but also what we do not know is the key to the appropriate use of knowledge and to prevent errors caused by ignorance. Confucius considered goodness or human eness to be an individual quality present in, but rarely realised by, the individual. The distractions and temptations of life prevent us from attaining our full potential.We want to be good, to be seen to be good but the temptation to be sel? sh often overpowers our intentions. Just as the CEO wants to create a socially responsible company but a little creative accounting will just increase the share price and thus make the task so much easier and the personal rewards so much greater. While there are many similarities in the teachings of Eastern and Western philosophers there is one fundamental difference. Aristotle believed personal behaviour – humaneness – is focussed on the individual with her own responsibility for selfdiscipline.Personal behaviour did not extend into the social relationships encountered by the individual. This concept remained valid until the writings of Marx when there appears to be a shift from a societal focus to focus on material gains. Recen t Western philosophical writings – Taylor (1991) – are returning to the societal focus with an emphasis on the concept of authenticity. Conversely, Confucius opined that the rules for correct behaviour were social controls, which maintained the social graces resulting in the appropriate manners and conduct of the individual.In the West we value the individual and claim that the individual has control over her behaviour. The net result of the behaviour dictates how social relationships and society behave. Max Weber took this approach to the extreme with his social philosophical writings a century ago that culminated in the rise of bureaucracy and the foundation of management thinking. While modern management thinking has challenged this approach for the past 50 years a philosophical framework has yet to be established to justify the theoretical foundations associated with building an organisation based on values and relationships.The Eastern philosophies provide a persp ective where the behaviour of the individual is seen as a harmonistic balance between the individual and how that individual interacts in social relationships. The original writings of Plato and more recent Western philosophers would not disagree with this approach but it is a philosophical framework that contradicts the work of Max Weber and challenges the foundation of traditional management theory. 343 A challenge to traditional management theory foresight Volume 6  · Number 6  · 2004  · 338-348Ed Weymes Building an organisation on values and relationships: the implications (the humane organisation) The concepts of CSR, together with modern management thinking and particularly the move to a knowledge economy is moving management thinking away from the bureaucratic structured organization, relying on systems and processes towards a management style vested in relationships. Thus, if the key success factor for a successful organization is its ability to build relationships and not primarily to generate (excessive) pro? s the foundation for management theory should start with the pre-requisites necessary for the development of relationships and emotions lie at the heart of relationships. Table I Constructive and destructive states of mind Constructive states of mind Build Create Self-respect Con? dence Self-esteem Responsibility Integrity Trust Compassion Passion Commitment Honesty Benevolence Ambition Generosity Motivation Loyalty Love Destructive states of mind Build Create Low self-esteem Over-con? dence Jealousy Irresponsibility Dislike Mistrust Sel? hness Negativity Meanness Deceit Hatred Self-ambition Alienation Complaints Source: Flanagan, cited in Goleman (2003, chapter 3). Emotions and relationships The rood de? nition of â€Å"emotion† can be traced back to motion and direction – â€Å"to every force there is an equal and opposite force†. Thus emotions can be good and bad, positive and negative, constructive and destructive. Professor Owen Flanagan (Goleman, 2003, p. 59) argued that bad, negative or destructive emotions are those that are harmful to oneself or others; contrary to human nature.He also supports the philosophical view, which goes back to the time of Plato and Confucius, that emotion and temperament are constantly pulling us in different directions. Take, for example, the case of the demise of Barings Bank: Nick Leeson the Barings Bank futures trader based in Singapore enjoyed the good life and was soon earning a signi? cant bonus on futures trading in Asia. But as the markets changed Leeson needed funds to cover his exposure. By establishing Error Account 88888 he was able to expose the bank to debts of eight hundred million British Pounds.Personal greed and a lack of compassion together with poor systems in the Bank caused one of the greatest banking scandals of all times. Throughout ? ? the debacle Leeson did not see anything wrong with his behaviour. His values and beliefs supported hi s actions but the only bene? ciary was Nick Leeson (Gapper and Denton, 1997). converse situation is depicted in William Golding’s (1959) Lord of the Flies with its basic themes being that society holds everyone together, and without these conditions, our ideals, values, and the basics of right and wrong are lost.Without society’s rigid rules, anarchy and savagery can come to light. On the island we observe mistrust, self-ambition, deceit and irresponsibility destroying the social norms that once bonded the group of schoolboys. Jealousy, dislike and meanness destroyed a society. As human beings we have a choice. We can attempt to work alone in the pursuit of our own personal happiness and success or we can work with others. The easy option is to work alone but we will not inspire con? dence or trust in those around us in the long term. We will have joined the schoolboys on their desert island.Building relationships is every individual’s social responsibility. The foundation for constructive relationships Emotions are determined by attitudes, beliefs, values and feelings, which are re? ected in personality and dictate the individual’s ability to form relationships. Accepting the premise that dreams and goals can best be attained by working with others the ? rst key lesson in developing a sustainable organization is for all staff to be aware of their own strengths and limitations, of how they react in certain situations and understand why they experience particular emotional reactions in particular situations.As part of the self-discovery process individuals are able to de? ne their own personal inspirational dream; to verbalise their purpose in life. There are many examples of personal dreams: Martin Luther King’s famous speech â€Å"I have a dream†, or J. F. Kennedy, â€Å". . . this nation will land a man on the moon before the end of the decade†. Kennedy had no idea of how America was going to put a man on the moon but his challenge provided the impetus for the NASA scientists to exceed their personal best. There is always the temptation to take the easy way out but is it the right way?Emotional responses drive individual feelings and dictate the nature of relationships in society. Flanagan has classi? ed these positive and negative emotions as constructive and destructive states of mind which have been summarised in Table I. Individuals who are seen as con? dent, responsible and trustworthy possess integrity, selfesteem and compassion. They are people who are committed to a dream or a vision that is focussed on improving the life of those around them. The 344 A challenge to traditional management theory foresight Volume 6  · Number 6  · 2004  · 338-348 Ed WeymesThe process of identifying and formulating a personal dream (see Figure 1) requires insights into individual values and identi? es the strengths to build upon. The dream represents the individual’s purpose and destiny in life with its magnitude only limited by ambition, by passion and con? dence of that person. Once the dream is identi? ed it must be shared with others. Rarely can we achieve our dream single-handed. Thus the dream should create purpose and meaning for others. Sel? sh dreams, dreams that are designed to promote the dreamholder alone are less likely to be adopted by others since there is little in it for them.Dreams that go beyond the individual and represent a challenge for others are more likely to be shared. Albert Schweitzer is credited with the following statement on visions or dreams: â€Å"I do not know what your destiny will be, but one thing I do know. The only ones among you who will be truly happy are those who have sought and found how to serve. † The process of self-discovery provides an understanding of how and why individuals react in certain situations. People with a high level of selfawareness recognise the danger signs associated with disruptive emotions a nd are more likely to keep these emotions in check.These are the people we turn to in a moment of crisis knowing that they will give a Figure 1 Identifying and formulating a personal dream measured and reasoned response to the situation, not an impulsive reaction. They are the people we trust, people of integrity. They do not criticise but ask questions, gather the facts and seek advice before making a measured response. They are re? ective thinkers. They are the people we admire and interact with. They may be parents, lovers, mentors or ordinary individuals who we turn to in time of need.People who possess a clear understanding of their emotions and their impact on others also possess the ability to recognise the emotional state of those around them. They are people who are skilled in reading body language and recognise the impact that particular circumstances and situations can create in those around them. They understand the mood and the pulse of the situation and are able to bri ng forth the best from those around them. The characteristics of self-awareness, self worth and social worth provide the drivers for the attainment of high levels of emotional intelligence (see Goleman et al. 2002) and provide the foundation for sustainable relationships. They also provide the basis for establishing a dream and a destiny but more importantly providing the ability to share the dream and have others buy into the dream. Some writers may argue that these characteristics provide the skills to motivate people but motivation is a process that causes people to 345 A challenge to traditional management theory foresight Volume 6  · Number 6  · 2004  · 338-348 Ed Weymes act in a particular way. Thus an individual may be motivated to undertake a particular task by the promise of a reward or to avoid an unpleasant consequence.Individuals may be motivated to obey rules through a system of reward or fear of punishment (the foundation of theory X). Thus an individual may be m otivated to perform a task to which they have no commitment. Commitment is achieved when the individual believes in the task and is inspired by the potential results (the foundation for theory Y). Thus inspiration is more important than motivation. People are inspired when they believe in the cause they are working towards. To be inspirational required the individual to share their dream and the wider the scope of the dream the greater the potential for people to â€Å"buy† into the dream.Dreams that promote an individual or an organisation’s stakeholders alone will have little meaning for many of the people employed in the organisation. While a pro? t maximising goal may inspire the pension funds and individual stockholders it does little to motivate the individual on the shop ? oor who will receive the same compensation irrespective of share price. But an organisational dream that seeks to promote a better society has meaning for all those connected with the organisa tion and thus creates a purpose that can be shared by all in the organisation.An example of such a dream or vision can be foun in Merck and Co. ’s organisational vision (www. merck. com/overview/philosophy. html): Mission The mission of Merck is to provide society with superior products and services – innovations and solutions that improve the quality of life and satisfy customer needs – to provide employees with meaningful work and advancement opportunities and investors with a superior rate of return. Our values (1) Our business is preserving and improving human life. All of our actions must be measured by our success in achieving this goal.We value above all our ability to serve everyone who can bene? t from the appropriate use of our products and services, thereby providing lasting consumer satisfaction. (2) We are committed to the highest standards of ethics and integrity. We are responsible to our customers, to Merck employees and their families, to the en vironments we inhabit, and to the societies we serve worldwide. In discharging our responsibilities, we do not take professional or ethical shortcuts. Our interactions with all segments of society must re? ect the high standards we profess. 3) We are dedicated to the highest level of scienti? c excellence and commit our research to improving human and animal health and the quality of life. We strive to identify the most critical needs of consumers and customers, we devote our resources to meeting those needs. (4) We expect pro? ts, but only from work that satis? es customer needs and bene? ts humanity. Our ability to meet our responsibilities depends on maintaining a ? nancial position that invites investment in leading-edge research and that makes possible effective delivery of research results. 5) We recognize that the ability to excel – to most competitively meet society’s and customers’ needs – depends on the integrity, knowledge, imagination, skill, diversity and teamwork of employees, and we value these qualities most highly. To this end, we strive to create an environment of mutual respect, encouragement and teamwork– a working environment that rewards commitment and performance and is responsive to the needs of employees and their families. The organisation’s dream or vision creates passion and pride in those working for and associated with the organisation.Collins and Porras (1994, p. 55) suggest that companies, which only focused on pro? tability, did not perform as well as those whose focus transcended economic considerations: â€Å"Pro? t is a necessary condition for existence and a means to more important ends, but it is not the end in itself for many of the visionary companies. Pro? t is like oxygen, food, water and blood; they are not the point of life, but without them there is no life. † Pro? ts do not inspire the individuals in the organisation and they reward only the select few.Visions or dre ams that go beyond the economic considerations inspire those in the organisation and those associated with the organisation. Visions that encompass environmental and social concepts as well as economic considerations. A revised philosophical perspective for management theory PricewaterhouseCoopers (2003b) de? nes â€Å"a sustainable business enhances long-term shareholder value by addressing the needs of all its relevant stakeholders and adding economic, environmental and social value through its core business functions†. A sustainable organisation has: . a clear purpose beyond pro? ; . is driven by shared values; and . and supported by systems and processes. Proponents of sustainable organisations argue that these organisations require â€Å"breakthrough thinking that results in true innovation. It also calls for partnerships and cooperation as well as open honest dialogue with stakeholders inside and outside the company† (Philips, 2002). They argue that these are not organisations driven by pro? t 346 A challenge to traditional management theory foresight Volume 6  · Number 6  · 2004  · 338-348 Ed Weymes maximisation but are organisations that will forego short-term pro? to ensure longer-term shareholder value. They are organisations that build trust and create an aura of authenticity, building a harmonious and family-like work environment. They are organisations driven by a purpose, values and beliefs that can be accepted by a wide range of societal interest groups and they are organisations that encourage innovation. Such characteristics are not unique to sustainable organisations but are the criteria that have been referenced by many of the writers of modern management theory. There is a danger that the sceptics of â€Å"sustainable organisation† will focus on the pro? ability criteria arguing that an organisation will always be driven by a pro? t perspective. Return on investment has always been a signi? cant performance criter ion and many organisations have found to their detriment that cost reduction increases short-term pro? tability but does little for long term sustainability. While the concept of the sustainable organisation sharpens the focus of modern management thinking the key issue concerns the relevance of traditional management thinking. Traditional management theory has been built on the command and control model developed by Frederick Taylor and based on the work of Max Weber.For Weber the purpose of business was to maximise shareholder wealth. This strategy could be achieved by viewing the organisation as a closed system, subdivided into discrete units with each unit focussed only on its own activities. Staff were required to follow speci? ed procedures and innovation was not encouraged. Systems and processes, rules and regulations, dictated the pulse of the organisation. Return on investment, economic value added and share price are the metrics that dominate discussions relating to corpor ate performance yet modern management theories have focussed on the human side of the business for the past 50 years.Most authors and corporate leaders agree that the age of the bureaucratic organisation is past. Yet the numbers still dictate performance. The daily business reports focus on share price ? uctuations and pro? t warnings and rarely do they report on an organisations performance on environmental or social issues. In 1999 Dow Jones launched a â€Å"sustainability index† to monitor the performance of ? rms engaged in sustainability projects. The rational behind this move was based on the premise that more investors are seeking to diversify their portfolio to include ? rms that have long term environmental and social issues as part of their philosophy.While it is unlikely that ? nancial performance measures will be replaced in the short term, organisations and investors now recognise that while pro? ts are important, how the pro? ts are obtained is a greater concern . A singular focus on pro? t maximisation is driven by a rigid adherence to prescribed systems and processes, requiring a highly disciplined workforce prepared to follow orders without question. Communication is uni-directional and innovation discouraged. Mistakes and errors are ascribed to individuals and a climate of fear pervades the organisation.Performance targets are speci? ed and the attainment of the targets dictates individual performance. The Kaplan and Norton (1996) â€Å"balanced score card† is used to prescribe individual and organisation performance standards. Success is de? ned as an organisation’s ability â€Å"to make the numbers†. But individual and corporate quantitative performance targets focus the organisation, and the individuals in the organisation, on personal, self centred, goal orientated approaches, which do little to foster the development of harmonious relationships in the organisation.Over the past 25 years management theory and pr actice has become more â€Å"humane† with a focus on people in the organisation and by an increasing focus on the importance of values, emotions and social mores. Organisations are attempting to implement the theories of modern management but appear to be unwilling to give up the controls associated with the bureaucratic organisation. Yet modern management theorists and the proponents of sustainable organisations are convinced that the key ingredient to organisational success is the development of trust throughout the organisation.But the fundamental premise underlying Weber’s bureaucracy and Taylor’s scienti? c approach to management is the assertion that the workers are not to be trusted. Tasks must be prescribed and individual performance measured. Thus the basis for performance evaluation lies in the development of effective systems and processes. Rigid adherence to prescribed systems and processes will no longer guarantee success. Today the organisation mus t be ? exible in order to meet the needs of a rapidly changing environment, a discerning customer and a sceptical public.An organisation is still required to make a pro? t but society is now concerned with how those pro? ts are attained. The strategies of the â€Å"robber barons†, supported by the philosophy of Max Weber, are no longer acceptable. Organisations are expected to adopt an ethical and morally acceptable approach to the creation of pro? ts. In the 1980s, the TQM movement focussed on the importance of quality, yet quality was not a new concept. However, it was a characteristic that many organisations were either ignoring or failing to concentrate on.The TQM movement focussed on quality so that today it is considered a necessary but not suf? cient condition for competing. Likewise the 347 A challenge to traditional management theory foresight Volume 6  · Number 6  · 2004  · 338-348 Ed Weymes sustainability movement is focussing on the need for more organisatio ns to focus on the environmental and social impacts of their organisations and strategies. The message is that organisations must pay as much attention to the environmental and social impacts of their business as they do to the economic impact.The traditional approach to management does not focus on these concepts. Successful – sustainable – organisations are founded on open communication and trust. Thus the basis for performance lies in the ability of the individuals within and those interacting with the organisation to form meaningful relationships. Management teaching and practice must now replace the fundamental assumption of traditional management theory – that the worker cannot be trusted – with a focus on building and developing relationships.The organisation’s focus should now be based on understanding the relationships between individuals and not on the design and development of rigid and complex systems. While systems and processes are st ill required to support the organisation they no longer drive the organisation. A corporate vision statement or inspirational dream that encompasses the three pillars of sustainability provides a purpose for everyone in the organisation by integrating individual dream with the dream of the organisation.Through a meaningful purpose or inspirational dream commitment, trust and integrity are built between individuals who work together in a harmonious manner. There is a commitment to exceed one’s personal best and to pay attention to the detail. New ideas can emerge from anywhere. The organisation creates its own future. Quantitative measures are still required to provide information on how the organisation is performing and to provide staff with information that can be used for improvements and innovations but these KPIs should not be used to discipline individuals.The concept of sustainability has focussed attention on the need for all organisations to demonstrate a commitment to the environment and society as well as their own economic wellbeing. Yet the concept of sustainability is still considered to be a â€Å"fringe movement† in the corporate community. However, the survival of the movement is immaterial because all organisations have recognised that that the key competitive advantage lies in the creation of new knowledge. New knowledge cannot be created in an environment constrained by systems and processes and where there is a fear of failure.Knowledge can only be created in an environment where individuals are committed to the organisation and a high level of trust and integrity pervades the organisation. The concept of sustainability or corporate social responsibility provides a framework for the establishment of such an environment. The framework comes in two parts, the yin and the yang, and it is the role of the CEO to balance the tension between the need to create a focus for the realisation of individual dreams and an environment where innovation and creativity ? urish with the necessity for systems and processes to ensure order and the attainment of the ? nancial goals. Traditionally, the CEO has focussed on the design and development of systems and processes while paying some attention to the â€Å"people† in the organisation. Today that focus must change so the people in the organisation control the systems and processes and not have the people controlled by the systems. References Cloke, K. and Goldsmith, J. (2002), The End of Management and the Rise of Organisational Democracy, Jossey-Bass, San Francisco, CA. Collins, J. C. and Porras, J. I. 1994), Built to Last: Successful Habits of Visionary Companies, HarperCollins, London. Deming, W. E. (1982), Quality, Productivity and Competitive Position, MIT Press, Cambridge, MA. Gapper, J. and Denton, N. (1997), All that Glitters: The Fall of Barings, Penguin, Harmondsworth. Golding, W. (1959), Lord of the Flies, Penguin, New York, NY. Goleman, D. , Boyatzis, R. and McKee, A. (2002), Primal Leadership: Realizing the Power of Emotional Intelligence, Harvard Business School Press, Boston, MA. Goleman, G. (2003), Destructive Emotions: A Dialogue with the Dalai Lama, Bloomsbury, London. Kaplan, R. and Norton, D. 1996), The Balanced Scorecard: Translating Strategy into Action, Harvard Business School Press, Boston, MA. Lawler, E. E. III (1996), From the Ground up, Jossey-Bass, San Francisco, CA. Liu, S. -H. (1998), Understanding Confucian Philosophy, Praeger, Westport, CT. McGregor, D. (1960), The Human Side of the Enterprise, McGraw-Hill, New York, NY. Philips (2002), Annual Report on Sustainability, Philips, Amsterdam. PricewaterhouseCoopers (2003a), 6th Annual CEO Survey, PricewaterhouseCoopers, London. PricewaterhouseCoopers (2003b), Presentation to EFMD Annual Conference, PricewaterhouseCoopers, London.Scruton, R. (2002), A Short History of Modern Philosophy, Routledge, London. Senge, P. M. (1990), The Fifth Discipline: The Art and Prac tice of the Learning Organization, Random House, London. Taylor, C. (1991), The Ethics of Authenticity, Harvard University Press, Cambridge, MA. Taylor, F. W. (1911), The Principles of Scienti? c Management, Norton, New York, NY. Vanier, J. (2001), Made for Happiness, The House of Anansi, Toronto. World Economic Forum (2004), Survey on Trust, World Economic Forum, Geneva, available at: www. weforum. org 348

How War Affects the Economy Essay

Countries that have experienced periods of war have had their economies mostly affected negatively. Considering war and the economic history, it is evidence that war has influenced the economic history across the world for centuries. This influence is both negative and positive. In most cases, those who win during wars have ended up getting their economic institutions and trade patterns in shape. Wars have also led to technological development, increased workforce among others (Goldstein, par. 1). However, the negative impacts of war outweigh the positive impact in terms of waste of money and resources on war, destruction of human capital, trade, resources available and labor management. Wars have also led to loss of many lives thus reducing the population which greatly contributes to economic growth at large (Goldstein, par. 1 – 2). Where possible, wars should be avoided by all means, no matter how appealing the positive impacts might seem to be, since in return they are expensive, destructive and disruptive thus greatly affecting the economies of many nations negatively. The negative impacts of war During wars, the economies of the third world countries are the ones which often get affected to a larger extent. Winning in war is determined by how powerful a nation is. More powerful and stronger nations are better placed and able to represent their interests than others. For example, The United States of America being the super power wields incredible power and influence. Before any country engages itself into war, it should consider its strength and influence and also who they are fighting with (Wade par 1-2). Some of the negative impacts of war include the following; War Causes Increased Inflation Rate According to Goldstein (par 4), waging war requires three things; ‘money, money and money’. In short, waging war requires a lot of money and therefore many nations have ended up printing a lot of currencies to finance war forgetting that the printing of more money fuels inflation. Inflation always acts as an indirect tax on a national economy. For instance, during the first and second world wars, there was the industrial warfare that in return created inflationary pressures across large economies. The governments mobilized very many societies for war which led to conscripting labor, building up prices in markets for natural resources and industrial goods, diverting of capital and technology from civilian to military applications among others (Goldstein, par. 4), During the World War I, there were numerous inflations as participants broke from the gold standard to issuing of currencies freely. This led to increased inflation, a thing that was experienced even during the US Civil War, First and Second World Wars, Vietnam War among others. War induces inflation which is strongest in war zones but also to neutral countries, causing disruption and scarcity of resources, for example the US during the World War II. In addition, as war continues in the present day, inflation continues to increase driving the currency to worthlessness. The cost of war during World War I was almost $ 40 billion in addition to 85 years of inflation. This expenditure in figures would be closer to $1100 billion in the modern terms (Goldstein, par 2-5). War Leads To Increased Government Debts  Some nations borrow money for war and what happens is that they end up in a lot of debts for the government. War related debts always drive many states to bankruptcy. An example of such a nation is Spain in 1557 & 1596 when there was war (Goldstein, par. 5). Capital Depletion Many wars create zones of intense capital as well as destruction. This destruction happens in farms, factories and cities and cause reduced economic output which in return causes famine and plagues, for example during the 30years’ war that happened between 1618 and 1648. During this time, one third of the population was killed in Germany as the mercenaries plundered civilians with the latter becoming mercenaries so as to try to survive. In addition, the First World War reduced production by nearly half and starved hundreds of thousands of Germans to death. These led to more than a decade of lower Soviet output. Also, during World War I in 1918, influenza epidemic killed millions of people thus reducing the work force (Goldstein 2003, par8-9). Some other 407,000 Americans lost their lives during the Second World War and this led to decrease in human cost or labor which would have otherwise contributed to the economic growth of America (Henderson, par. 7). In Germany, there was a massive loss of lives which amounted to 1. 7 million young men and 4. 3 millions of them being wounded during the First World War. The total casualties were thus adding up to 7 million though this also included some prisoners and also those listed as missing. The Germany economy suffered terribly during this war and its industrial output fell by over 40% between 1914 and 1918. This was because many of the working men had been killed in war and so the machinery was run by ill trained people at the end of the war. In addition, the workforce was not physically fit to work very hard as a result of the food shortage that was being experienced in Germany then. Estimates show that 35% of all trade was usually organized illegally on the black market and the economy suffered from shortages of raw materials (School of History, par 2). War Impact On Domestic Economy Wars bring about impact on the domestic economy too. This happens through reduction of the level of capital stock as well as its growth. There is usually capital flight which dramatically leads to reduced private investments. In addition, the political economy models show worsened government’s fiscal balance which results from the internal conflicts that ends up affecting the aggregate domestic economy (Imai and Weinstein, par. 1). Economically, many activities are enhanced into conduct of war through the act of the government shifting the expenditure from output to war. Politically, there is evidence of weaker incentives which help maintain the fiscal balance. This is attributed to a shorter time horizon and weaker accountability of an electoral constituency. The result of all these shows that the driving forces can be attributed to the negative effects of civic war on the economic growth which is a decrease in domestic investment and especially the private investments (Imai and Weinstein, par. 1). War Is Expensive A lot of resources are normally used to wage war and this definitely leads to a minus in the economic growth of any nation. When a government spends a minimum of 2% of its GDP on its military on average, its economy is affected as well. Therefore, no matter where the finances or resources for funding comes from (payment of taxes or debts) , the resources used in war should be used to do other constructive things in order to raise the economic growth such as, paying more wages to workers to motivate them, construction of roads, large scale farming among others. Most governments ends up using a pool of finances to buy tanks, trucks, fuel, clothing, parachutes, bullets, guns, airplanes among other equipments of war. They also hire laborers to do the job that is, hiring more military personnel which is still expensive (Henderson, par. 3-4). All the capital and labor used to do the above produces output and labor that would otherwise have been used to develop the country’s economy. The cost of all that is used in war is called opportunity cost which means the value of the highest valued opportunity foregone. Thus, the opportunity cost of the resources used in war is the value of the resources that would otherwise have been used by the government on other things other than war (Henderson, par3-4). For example, during the Second World War, the US government spent more than 7% of GDP (Gross Domestic Product), on war. In addition, there was a peak of the United States government spending a large portion of its (GNP) Gross National Product on war in 1944. This government spent about 38% of the GNP on war while as much of the capital and labor used in this war would have been used to produce things like automobiles for domestic economy or even exports among other things. In short, there would have been no rationing of meat, tires, nylons eggs, butter and sugar and the standard measure of prosperity would have been much more prosperous (Henderson 2006, par 4). On the other side, the cost of war in Germany during World War I was estimated to be US$ 40 billion; this was a lot of finances all being put to war (School of History, 2004, par4 ). Also, during World War 1and World War II, consumer spending is said to have increased a lot though it was still less than the long-term growth rate. The increase in output that was experienced during World War II considerably reflected the massive rise in military spending. At the climax of this war, the US government spending had taken up over 40% of the GNP whereas the Korean War spending was more moderate with the government spending a maximum of about 20% of the GNP (Ohanian 13). Another example showing the costliness of war is the Iraq war. According to some approximations made, Iraq and some other Middle East countries are assumed to spend significantly on defense. This is represented by an increase in defense spending by OPEC (Organization of Petroleum Exporting Countries) which is a clear indication that the economic growth of these countries is affected (McKibbin and Stoeckel 2). The Iraq war is possibly costly to the economy of the world. However the costliness is dependent on how long the war lasts and also the compounding effect of many different factors. The main economic effects include higher budgetary cost, rising oil prices and the greater uncertainty of things, leading to negative effects on economic growth. For example, the United States can experience a knock-on effect if Japan is unfavorably affected by war with Iraq. In such a case, the rise in oil prices is likely to change the prices of other energy sources like coal and natural gas (McKibbin & Stoeckel 1). In addition, when the prices of oil rise, Japan experiences high risk in terms of economic effects than either Europe or United States since it depends mainly on imported oil. Australia is also not left out since it is also affected negatively when the oil prices rise despite the fact that it exports coal and gas in large amounts. The longer the period a war takes, the more there is prolonged and uncertainty of the cost of oil (McKibbin and Stoeckel, 5). The war in Afghanistan also led to estimated loss of US $ 2-3 billions to the economy of Pakistan in 2001. This caused effects such as loss in revenue, decreased exports, reduced foreign investment as well as a slow down in private investments (Nisar, par. 18). War Leads To Increased Tax Rate The tax rate is usually increased in many nations during war so as to be able to finance the whole process of war. For example, there was increased tax during the Korean War so as to help finance the war. The capital tax rose to nearly 63% in average, the highest tax rate of capital income that has ever been heard in the history of the United States and it was sufficient to finance the Korean War efforts. Moreover, during the Second World War, the labor tax rose to about 19% with the capital tax rates ranging to an average of 60% compared to the time prior to the war, whereby the average marginal tax rate on capital was about 45% and the average marginal labor tax rate was just 9%. This high tax rate generated significant revenues and at the same time, the revenue was not enough to finance the war spending (Ohanian 13). All the above listed effects show how destructive and expensive war is to the economy of any nation. The Positive Effects Of War On The Economy The positive effects of war are not as many as the negative effects and no matter how attractive they might be the negative consequences still stand conspicuously. Some of the positive effects include the following; War Leads To Development Of Infrastructures And Technology Sometimes war creates a chance for infrastructural development like roads and thus clearing away the outdated ones. This gives way to the rebuilding of the economy world wide thus leading to long-term benefits. Technological development also rises as a result of war though not always. For example, after the two world wars, French production is said to have grown faster after 1950 than before 1914. Also the layouts of European railroad networks were strappingly influenced by the strategic military consideration. This was evident after Germany used railroads effectively to conquer French forces especially in 1870 to 1871(Goldstein, par 12-13). According to Tassava (par. 1-32) there has always been scientific and technological innovations that comes as result of war. These innovations were the key aspects in the American war effort as well as important economic factor in the Allies’ victory. During war, there is usually development of weapons among other tools of war. The American experience after the Second World War was impressive because of the scientific and technological change which positively affected almost every aspect of the war economy. There was also the Manhattan project which was meant to creating atomic weapons. However, this project was often hidden from the public view because of the wartime secrecy. The U. S. army and several private contractors gave direction to scientists, engineers and workers to build a nationwide complex of laboratories and also plants that would manufacture atomic fuel. They also gave direction to fabricate the atomic weapons. For example the laboratories at Chicago and California-Berkeley universities, the uranium processing complexes at Oak Ridge, Tennessee, Hanford, Washington among others (Tassava, par. 32). Another innovation that arose during war time is the building of ships. This was the third example of innovation’s importance to the war economy. The fighting fronts in Africa, Europe and Asia that had their plans allied in World War II were totally dependent on the movement of war material produced in the United States. Hundred merchant shipyards in the U. S produced 5,777 ships at a cost of about $13 billion between 1939 and 1945. The technology of building ship later became a low-technology compared to the atomic-bomb project and the aerospace industry a sector that was amazingly successful (Tassava, par. 35).

Srucial part of job Essay

And here the other job of the sales team will kick in because they have to go around to talk with the retail establishment, big and small, in the cities they are operating, which will require an extended travel as sometimes they have to cover the outskirts of the city as well as the outlying regions. There is a huge competition to get space in the crowded shelves of retailers that will have to be convinced that the product is worth their recommendation and meets all the legal requirements to be sold for the public, which is part of the job of the sales team to furnish proof and explanation. This is also a very crucial part of their job, although at times it could be done through the distributors. However, the smaller retailers that are not chain stores might have to be approached individually or it might be the job of the distributors to convince them to carry the new product that should attract many buyers because of what it is offering, which is not only unique but functional foods are new even for the general food market that is catering for the adult buyers. After doing that, the particular brand depending on its popularity might start to sell itself, where distributors and retailers would want to put it in their stock and on their shelves because it is selling well, and when that point is reached the sales team could say their job is partially done, but they can still search for new locations and retailers in the same regions or in other regions. The conclusion is the baby food market is a highly regulated market and it is similar to the pharmaceutical market where manufacturers do not have a direct access to the buyers and users of their products, because of the sensitive nature of what is involved, which is the life of young children whose growth could be harmed irreversibly if they are not given what they exactly need for their normal growth from the beginning. Even if there is no outright opposition to the existence of the breast milk substitutes, the authorities and other concerned groups would have preferred if mothers start using it between four and five months, but since that might not be possible because of the nature of the life of the mothers themselves who could be working outside of the home, which will result in their being time strapped, and instead of preparing food for their children at home it will be easier for them to pick the substitutes form the various stores and mix the feeding process with their own breast-feeding since it is proven to be vital for the children. Similarly, the existence of the breast milk substitutes will become handy for children whose mothers cannot breast-feed them for various reasons that were mentioned earlier, and in their case the breast milk substitute will come close to breast milk and they will grow up healthy as there are sources that are saying even if people simply wanted to believe that breast milk is better for the child and it will create some kind of bondage between mother and child, in reality the substitutes are proven scientifically to be as good as the breast milk if not better. Therefore, any company that is selling baby food, which has a global market of close to $21 billion a year will have to go over many hurdles to put the substitute on the hands of the mothers that will use it to feed their baby properly and everyone will be benefited at the end of the day. [10] REFERENCE 1. Nestle in Northern Europe. Retrieved from the Web on April 5, 2007. www. nestle. se/neobuilder/200108091943_6622_3b72cbb9544e1. html 2. Baby Food Business Assessment. Retrieved from the Web on April 5, 2007. www.researchandmarkets. com/reports/3492 3. Baby Food Industry Lobbies WHO. Retrieved from the Web on April 5, 2007. www. bmj. com/cji/content/full/321/7273/1411 4. The Ecologist. Retrieved from the Web on April 5, 2007. www. theecologist. org/archive_detail. asp? 5. International Code. Retrieved from the Web on April 5, 2007. www. ibfan. org/english/resource/who/fullcode. html 6. Nestles Market War. HighBeam Encyclopedia. Retrieved from the Web on April 5, 2007. www. encyclopedia. com/doc/1G1-131934511. html 7. Breast Feeding. Retrieved from the Web on April 5, 2007. www. geocities. com/HotSprings/spa/3156/code. htm 8. Health Workers and the Baby Food Industry. Retrieved from the Web on April 5, 2007. www. bmj. com/cji/content/full/312/7046/1556 9. Nestle Public Relation Machine Exposed. Retrieved from the Web on April 5, 2007. www. babymilkaction. org/boycott/prmachine. html 10. Health-Conscious-Drive-Baby-Food-Market-Growth. Retrieved from the Web on April 5, 2007. www. rncos. com/Press_Release/Health-Conscious-Drive-Baby-Food-Market-Growth-July. htmÃ'Ž

Summery Essay Example | Topics and Well Written Essays - 250 words - 5

Summery - Essay Example However, people who fall in the minority group category still face discrimination even in a democratic society. In most cases, discrimination happens on grounds of sex, race, and religion. The American society gives the best-learnt lesson of discrimination based on race. Although the blacks and whites now have the same freedoms and rights, discrimination according to race is still an issue of urgency. This is because many people still suffer from the effect of racial discrimination. Discrimination comes in forms including indirect discrimination, direct, victimization and harassment. The article â€Å"Two Muslim religious leaders sue airlines for discrimination† written by Jim Barnett, shows a classical example of discrimination according to race at present. In this case, the two imams sued the Delta Airlines for the discrimination meted on them. The Muslim leaders underwent checking three times before the plane took off (Barnett 2011). Even after boarding, and the plane had left the gate where they had undergone a second checking by the security, the pilot felt uncomfortable with the imams and took the plane back to the gate for the imams to undergo checking. The essay sums it all by emphasizing the need to phase out discrimination in all its forms. All people are equal as per the Declaration of Independence. Legislation, education, and promotion of inter group contacts can help in reducing discrimination and

International Business Essay Example | Topics and Well Written Essays - 500 words - 25

International Business - Essay Example As the manager says, majority of the bottles are not originally made by the company. This reduces the cost of operations as they enter the new markets that make them to offer low priced products to the consumers hence attracting more sales than the competitors (Bradley, 2005). The company also uses well established names in the industry in form of franchising. This makes them to reduce the competition levels in the new acquisitions as the firm establishes on how to become stable in those economies. Coca cola also provides for joint ventures with the established firms. The firms are allowed to have substantial shares by contributing funds which provides the capital for investment and compete in the respective markets. From the strategies mentioned above, the company will offer reduced prices for the consumers and the forces of demand and supply will make us more prices reasonable in the market. While venturing onto the new countries, the organization ensured there was differentiation on the products (Bradley, 2005). This provided a wide consumer choice in the market that attracted more customers to our products increasing our sales on the respective countries. The company also provides unique products with unique logos that ensure customers do not confuse the organization products. The products are then taken through various promotional activities like in the media advertisements, open sales that are used to popularize the products in the market. Many nations do not allow free trade since they always wants to protect the local products. As a result we operate different distributions channels to ensure we exist all over the world. We recruit different organizations inform of franchised distribution channels. These firms are legalized and operate in our behalf to sale our products within the respective countries. There are also bottler firms who are situated in various countries (Bradley, 2005). To break the barriers, we

Writing a research proposal Essay Example | Topics and Well Written Essays - 2000 words

Writing a research proposal - Essay Example In this regard, this proposal will dwell much on the effectiveness of using internet in fostering English learning and reading in high school in Sydney, Australia. This study is important as it will try to show whether the most used means of communication and information sharing can have a significant contribution towards better grades in high schools. Further, it will leave the option of using other means of learning to the schools incase it doesn’t have any impact. According to James, J. (2000), the Internet is a new and an expanding tool for learning which if well utilized according to the intended needs then it can transform the world to a global village in terms of knowledge and learning skills. To him, a study done on the effectiveness of the internet in learning had no significant reason as to why it should not be believed to be a tool which is effective. To Vargo, J (2007), internet technologies provide a sound foundation on which to build more effective and efficient educational programmes which can enhance students learning and understanding what they are learning. Internet in its capacity as a tool is like a ripple on the surface of education in that, it offers an intellectual challenge which can be said to be an educational history of the whole mankind (Arsham, H 2007). According to him, the importance of internet in education system and in particular the use of the Web is a well known fact. In the internet according to Arsham, H (2007), a wealth of resources as well as techniques do exist which act as sources of both new practices and easily accessible methods which can be adopted for the various formats learning and understanding. According to him further, the internet technology allows students keep up with their minds while letting them try their ideas once they come up with them. In general, students should appreciate

Global Environment of Business. The Saudi Stock Market (2009-2011) Research Paper

Global Environment of Business. The Saudi Stock Market (2009-2011) - Research Paper Example Factors such composition of sectors; investors as well as regulations also have dominant impact on the performance along-with world indices impact. Moreover, being in infancy stage the research as also made certain recommendations based on the research conclusions. TABLE OF CONTENTS TABLE OF CONTENTS 3 Background To The Problem 5 Role And Importance Of Stock Market 5 Importance Of Saudi Stock Market 5 Origin And Growth 6 History 6 Regulator 6 Tadawul (The Saudi Stock Exchange) 6 Current Statistics In Comparison With GCC Countries 7 Problem Statement 10 Research Objectives 10 Overview of Research Methods 11 Analysis and Findings 12 Performance Of Tadawul 12 Overall Performance Of Tadawal 12 The Collapses And The Peaks In TASI 14 Analysis Of 2011 16 Factors 17 Oil Prices 17 Investors Composition 17 Regulation 18 Comparison With Other International Markets 18 Conclusion 20 Recommendations 21 Limitation to the Research Study 22 Limitations in the research study can greatly influence the findings and analysis of the research. Therefore it is significant for the researcher to identify and comprehend the limitations of the research. This research study also has some limitations and these limitations can influence the findings of the research study. ... In addition to this, if the researcher had collected primary data and used it to analyse the findings then it would have further improved the findings of the research study. So, these limitations have influenced the findings of the research study. 22 Background To The Problem Role And Importance Of Stock Market Stock market is considered as the main component of every economy for playing multi facet role. On one hand, stock markets are reflective of economic condition in terms of growth or otherwise; while on the other hand, stock markets contribute to the economic growth with attracting local and foreign investments. Stock markets are also important as they provide an important fund raising avenue to corporate; ensuring the prices of stocks based on their value while leading profitable companies to generate considerable returns (Lamin, 1997). Hence, indentifying and understanding the factors affecting stock market are of immense importance in understanding the current economic state as well as making prediction about future economic prospect of stock market and hence the country. Importance Of Saudi Stock Market Economic status of Saudi Arabia has been regarded as unknown to global financial crises that hit the world in the recent past. This aspect of the strengthened economy has been attributed to the many factors such as increased public investment by government etc. Hence attracted attentions to explore the various components of economy and stock market being one of them and hence, making it an important avenue to explore. It is also important to explore for the fact that Saudi Stock market is the biggest market based on market capitalization among GCC

Positioning and social responsibility Essay Example | Topics and Well Written Essays - 2000 words

Positioning and social responsibility - Essay Example Moreover, the strategic decisions may be aimed towards the customers of the business organization or the employees of the organizations. Strategic decisions aimed at the employees of the organization attempt to improve the productivity of the employees and hence lead to an increase in quantity or quality of the products produced. However, most of the strategic decisions that are aimed at the customers are usually aimed at increasing the sales of the products of the company, which the customer makes. Several strategies may be employed to help increase the sales by the customers. In addition, the company may undertake measures aimed at improving its image, which will therefore lead to improved sales and customer loyalty to the company. The company may base improved image of the company on the quality of the products, which they offer, a wide range of products or corporate social responsibility of the company. One of the strategic planning decisions, which business organizations make, i s the positioning strategy of the company. Positioning strategy Positioning strategy is a strategy that different companies make to improve their perception. Thus, it can be said to be a psychological approach to marketing. Positioning strategy is mainly aimed at making the customers prefer the products of a certain company as opposed to those from its main competitors (Hiam, 2009, p. 36). The positioning strategies of the company may be directed either towards the customer or towards the competitor. However, brand-positioning strategies can generally be classified into the following categories: Using product characteristics or customer benefits Price- quality approach Use or application of the product Product-user strategies Products class strategies Cultural symbol of the product Strategies aimed at competitor (Batra, p. 205) Using product characteristics or customer benefits This is the most used positioning strategy; it links a certain product with a certain characteristic, whic h is generally of great importance to the customer. The company may stress the durability, safety, or reliability of its products. However, a company may also use two or more different characteristics to build the brand image of the product. Companies that use two or more product characteristics to build the image of the brand risk confusing the image of the brand, which affects the customers’ perception of the brand (Batra, p. 208). Yo sushi helps in attracting customers to its restaurants using the claim that its food is fresh (company website – Yo! Sushi). Emphasis on the quality of food that is served in the restaurants portrays the image that the food is of higher quality and safe to the customers who may it. In addition, Yo sushi emphasizes on the speed in which the restaurant is able to serve its customers. The restaurant serves the food from conveyor belt. Yo sushi claims that its food is fast, fun and fresh (company website – Yo! Sushi). Due to the fact that a belt would definitely move at a fast speed the company in effect portrays to its customers that its services are very fast and hence the customers would not waste time waiting for the food to be served. This therefore helps in attracti

Predatory Lending Practices Essay Example | Topics and Well Written Essays - 1500 words

Predatory Lending Practices - Essay Example When lenders began offering loans to deprived borrowers with low or bad credit standing, sub-prime loans were priced higher to compensate for the risk. Regardless of the a client's personal credit history, these finance companies offer the chance and allowance of refinancing or new mortgage that overwhelms he borrower with high fees and expensive often unhelpful terms. Minority borrowers composed of hard working people and low-wealth are the usual of consumers availing this type of loan to obtain financing. Availability of fair credit terms should be a major priority for responsible lenders as people no matter what the noted deficiencies are members of a civilized society with moral rights to uphold regardless of condition of credit orientation. However, seemingly cognizant of the needs of this minority sector, financing institutions have blossomed giving effect to what has been observed as a tragic loophole in Federal reserves that charges people with exorbitant interests and penalt ies. When the growth in equity lending has created risk management practices in response to financial institutions with equity lending programs, financial institutions' credit risk management practices for home equity lending have not kept pace with the product's rapid growth and easing of underwriting standards. We have seen numerous fore-closures on home properties in the past years that would eventually reflect in an economic meltdown. Further studies revealed predatory practices of lending institutions as the culprit in this scenario that charged exorbitant and often unnecessary fees and interests into the gross amounts that may no longer be viable for a medium to low wage earning homeowner. How can management eliminate the negative symptoms How can management fully capitalize on an opportunity Risk Management standards would create a favorable scenario over the increased lending with favorable tax treatments that may allow home equity loans and lines attractive to its consumers that offers a modest repayment schemes and relaxed structures that was currently devoid in its system. Institutions should capitalize on the rise on home values coupled with lower interest rates that make a product more attractive yet attainable and helpful to its user. The identification of certain risk factors in the system of practices in a financial lending institutions helps to identify the culprits that serves to practice certain features that offer an "interest-only" amortization that requires no principal amount applied. Documentation or its absence provides no room for evaluative measures and appraisals within the healthy structure. Risk management systems call for lending measures conducted in a safe and sound manner pursued with adequate allowances for loan losses and appropriate capital levels without negating sound practices in the accepted lending policies. Management principles actively assess the changes in the consumer's ability to pay and the potential decline of a home value and entertain this scenario without generating allowances that charge exorbitant fees disabling the capacity of the borrower from paying his dues and eventually leading to the

The growing human population Essay Example | Topics and Well Written Essays - 250 words

The growing human population - Essay Example This rate of increase has had a severe impact on the environment. The world most populated country is China with the population of 1.2 billion people. The population of China is expected to double in the next 60 years. This will happen despite China’s government enacting policies of one child per couple. Additionally, the population growth in USA is growing at the rate of 1%, with current population of 270 million, it is estimated that the population will be double in the next 70 years (Pimental 1) Increasing population is attributed to fertility rate, this is evident when developed and developing countries populations are compared. Analysis of developed countries such as in Europe and USA shows that they have less population growth. The study of population growth in the developing countries shows that their population is increasing at alarming rate. This could be attributed to the fact that couples in developed countries are well aware of the cost of large families. Approximately 2 billion of the world populations are malnourished; this number is expected to double in the future. Populous countries like India have the high number of poor people, to add this, food production is a problem, and these are just some of the negative aspects of large

Analysis of the 2nd Chapter of The Aesthetics of the Natural Essay

Analysis of the 2nd Chapter of The Aesthetics of the Natural Environments - Essay Example During the past ages the nature of the environment was quite comforting as it portrayed a particular unique beauty. According to the information from this chapter, the appreciation of the authentic environment is much different from the past centuries, and the nature of the environment is being transformed and replaced by art. Authentically it is said that the structures being constructed on the natural environment were initially meant to be helpful to the human beings and they were supposed to be constructed without much interference of the natural structure of the location of the constructions (Carson & Berleant, 2007). The chapter also explains how in countries such as the United States of America, so many constructions have been erected by the architectures and the building are no longer serving their purpose because it has reached an extent where people are now very uncomfortable living in those particular structures. The chapter also explains that some of the constructions bein g put up in the present century are being exaggerated in such a way that a person may fail to tell from far whether the building is a church, a mall or a house. It is explained in the chapter that today's buildings are constructed in a way that portrays a different picture of what the building is meant to represent. According to the author of this book, constructions should be designed to match its purpose and that the design features should be able to go together with its use. There are several considerations that should be looked into also before the constructions and these include the space, the lighting, the sounding system, and the construction surfaces among other thing (Carson & Berleant, 2007). This chapter also explains how the environment is closely related to human beings, and wants to make the reader understand that the environment is very compatible with the human being. It goes on to explain the relationship between the environment’s nature and the human beings. That the environment has many positive impacts on human life and the way it can have negative impacts too depending on how they associate with each other. The environment has everything to do with human beings and, therefore, whatever is constructed in it will always be because of them. For that reason, then it is explained in the chapter how constructions should be put up after investigations have been made which ensure how comfortable the environment is. Therefore, the environment is constructed by architectures according to their desired designs to attract and please the eyes of the users and at the same time the environment where the construction is taking place should be checked carefully and considerations made to ensure the comfort of the users. The chapters are all about the constructions being put up in the natural environment and how they should be done selectively. That the surroundings of the people living within it or inside the constructions must be conducive (Carson & Berleant, 2007). However, the constructions being built anywhere should also be made in such ways that they do not interfere harshly with the environment. This is because the people who are to occupy the buildings will still need those natural resources within the environment. Constructions easily pollute and destroy the

Short Case Essay Example for Free

Short Case Essay At your company, a bottler of natural spring water, the advertising department has recently launched a campaign that emphasizes the purity of your product. The industry is highly competitive, and your organization has been badly hurt by a lengthy strike of unionized employees. The strike seriously disrupted production and distribution, and it caused your company to lose significant revenues and market share. Now that the strike is over, your company will have to struggle to recoup lost customers and will have to pay for the increased wages and benefits called for in the new union contract. The company’s financial situation is precarious to say the least. You and the entire senior management team have high hopes for the new ad campaign, and initial consumer response has been positive. You are shocked, then, when your head of operations reports to you that an angry worker has sabotaged one of your bottling plants. The worker introduced a chemical into one of the machines, which in turn contaminated 120,000 bottles of the spring water. Fortunately, the chemical is present in extremely minute amounts—no consumer could possibly suffer harm unless he or she drank in excess of 10 gallons of the water per day over a long period of time. Since the machine has already been sterilized, any risk of long term exposure has been virtually eliminated. But, of course, the claims made by your new ad campaign could not be more false. List all of the stakeholders involved in this situation. Do any stakeholder groups have more to gain or lose than others? Develop a strategy for dealing with the contamination. How much does a company’s financial situation determine how ethical dilemmas are handled? In this situation the list of stakeholders would be everyone in the company. If the company is not able to make money then the company is at stake and this stakeholders are everyone that is employed, this includes myself as the owner of the company to the labor employees that have a newly negotiated labor contract. I do not believe that anyone group has more or less to loose; instinctively, I would think the lower wage workers would have more to loose, but is actually not true, because its all relative. The strategy I would use to deal with this situation is to stay honest an true to the product the company sells and to the employees. First, I would write a detailed letter to everyone explaining the situation. I would explain the position of the company before this incident and the potential implications of this situation. The company’s financial situation has a lot to deal with how this situation. Which is why I feel it is important to be transparent. My plan would be to dispose of the contaminated supply along with any equipment that would contaminate future products. I would work the manager or director of infection control to make sure the contaminated product is appropriately disposed of and to come up with a plan that would insure this does not happen again. One all is said and done, I would relay all relevant information to all the employees of the organization. Further, I would l relay a newly created policy of what how employees will how act in this manner will be dealt with.

Nursing Home Reflection of Behaviours

Nursing Home Reflection of Behaviours Latoya Mckie Abstract There are numerous of behaviors to observer in a nursing home. Many of the behaviors are related to mental impairment, loss of memory or aliments such as dementia, delirium, Alzheimer’s disease and Parkinson’s diseases. A lot of residents have been diagnosed with aliments; these various mental impairment conditions are concurrent conditions which may overlap. In many cases the impairment gets misdiagnosed outside a nursing home care facility because normally people do not know the symptoms or trained to differentiate the diseases or conditions. Therefore, it is essential that the caregivers and all other professionals are knowledgeable and fully aware of the residents’ cognitive levels to effectively assist them with their daily living. Many seniors and family prefer to go to nursing home facilities due to personalized care seniors receive. It is also difficult for some seniors that are not in nursing home or retirement facilities or neighborhood that are not tai lored to their needs. Behaviors exhibited by the residents I witnessed an array of behaviors at the nursing home, intern site. Most of the residents were energetic and full of life, despite their age. In the department that I mostly worked with consisted of people with memory loss. The group mostly was consisted of women, and had only two men. The women were all on different cognitive levels, but they all were well educated and lived successful lives in their younger age. One of the residents use to be a school teacher, how seemed to lose her memory and it seemed to be very difficult for her to recall any activities she did earlier that day. She and I would do puzzles or art activity. On one occasion I asked her to sign the back of a sheet we were working on. An hour after she left went to her room and came back and could not recognize the picture as the one we both completed earlier although I showed her the back and explained to her that I assisted her to complete it that day. What I realized with her and other residents in that group is that although they had memory loss they were still very intelligent and able to complete mathematical computation when tested. It was also remarkable that most of the residents I worked with can recall early memories from their lives although they had a hard time recollecting what they did earlier that day. There was also one lady who loved to listen to old music from the 60’s and classical music all day; she also walked around with a toy doll most of the day. This lady also never spoke much and not social with the other residents, she liked keeping to herself. The men on both sides of the facility did not come out much except for when they went to the dining area to eat, go to church services, exercise class or outings on the town. The residents were primarily engaged in fun activities and socials. They enjoyed having other people to talk to and having family member visiting them. A number of them were particularly concerned with their health and exercise most mornings, as a result the seemed more energized and happier than the residents who stayed in their rooms all day. I exhibited only two residents who seemed lonely. One of the two was always saying nobody cares about her and she is always walking around all day. At times the other residents look at her and regard her as a c razy person. The other lady who seems to be a loner has had her husband passed away recently, she seems to be sad at times, but she keeps herself occupied with engaging in activities and helping other residents who are on a lower cognitive and physical level than her. Another female resident in the dining room that is always shaking; I believe she has Parkinson disease her behavior varies a lot with the day. She can start arguing for any reason, then nice the next minute. Nobody normally sits at her table at the dining area when it is time to eat. One day someone came in late and sat there and she started to curse the other lady out and the whole time she was shaking the table. Her hand shacking is so bad that most of the time she has to ask one of the dietary aides to assist her in pouring out condiments because she often makes a mess because she cannot control her hands from shaking due to her having Parkinson disease. Explanation for the residents’ behaviors Most of the residents in nursing home suffer from memory loss diseases such as dementia, Alzheimer’s disease and delirium. They also experience other ailments such as Parkinson’s disease. A significant proportion of this elderly population will have dementia (Hartwell, 2013). One in five people over the age of 65 has dementia. The number is expected to double every 20 years (Hartwell, 2013; Potocnik, 2013). Dementia. Dementia is incurred mass impairment of a person’s memory, personality and intelligence who is normally attentive (Potocnik, 2013). It is adequately acute to interfere with social and occupational functioning. In the lack of a stroke or quickly growing cerebral tumors among other factors, the onset is normally progressive and the cognitive decay is always gradual (Potocnik, 2013). In the absence of a remedy for the disease, non-pharmacological concoctions and the careful use of pharmacotherapy may not solely aid the person and ease the stress on the caregiver (Potocnik, 2013). Residents with dementia almost always show neuropsychiatric symptoms (NPS), such as disturbances in mood with psychotic and vegetative symptoms among other spectacles. Dementia affects a large portion of the senior population. Dementia of the Alzheimer’s type is characterized by memory impairment, the inability to learn anything new or recall information which was previously acquired, and one or more cognitive disturbances such as aphasia, apraxia, agnosia or executive function disturbances (Potocnik, 2013). The resident who could not recall the artwork she and I worked on earlier in the day suffers from dementia of the Alzheimer’s type. Alzheimers and dementia is presents in 90% of seniors who expressed their feelings of being lonely or socially isolated (Wilson et al., 2001). The resident who was always walking around saying nobody cares about her suffers from dementia. The characteristic she exhibits was loneliness and isolation from the other residents. This explains why she might have developed dementia. People with early Alzheimer’s disease can benefit from exercise. The hippocampus of the brain plays a vital role in memory (Birmingham, 2008). Brain scan research shows that seniors who are physically active have less brain shrinkage; while those who are less active have up to four times brain shrinkage (Birmingham, 2008). Therefore, exercise is important to counteract Alzheimers disease in the residents. The senior residents behavior to exercise is accepting. They like to engage in physical activities because they know it improves the way they feel, their physical health as well as their mental health. Parkinsons disease. The female resident who is always shaking the dining table and screaming at other resident for no reason has Parkinsons disease. Parkinsons disease is a gradual and degenerative neurological disease, one of a group of conditions called motor system disorders (Carruthers-Czyzewski Dewar, 1998). The four primary symptoms are shaking or trembling in hands, arms, legs, jaw and face; firmness or rigidity of the limbs and trunk; bradykinesia or slowness of motion; and postural instability or impaired balance and co-ordination. As these symptoms become more prominent, patients have complexity walking, moving or accomplishing other regular activities. They may additionally experience migraines, joint pain, periodic respiratory problems, back ache, allergy symptoms, insomnia, mood swings, fatigue, distortion and chronic ailment such as digestive difficulties and arthritis. Modified diet is helpful to seniors with Parkinson disease. Their diet typical includes chlorella, milk thistle, kyolic garlic, and vitamin C (Carruthers-Czyzewski Dewar, 1998). I suspect that is they reason why the lady in the dining hall never misses meal time and she take her nutrition very seriously. Someone with Parkinson disease can also benefit from detoxification as her behavior is normally characterized as confused, fatigue and having mood swings (Carruthers-Czyzewski Dewar, 1998). Delirium. Delirium is a medical crisis characterized by severe onset and impulsive course that is displayed by incisive changes in a person’s cognitive level and function (Gillis MacDonald, 2006). Symptoms includes allayed attentiveness of surroundings with diminished capability to focus or sustain attentiveness; changes in cognition; collapse of higher order functions; psychomotor changes varying from hyperactivity to hypoactivity; emotional turbulences; sleep/wake duration disturbances; nocturnal spasm; hysterical affect, mood and behavior; perceptual disruptions comprised of delusions and fallacies; paranoia; and multilayered etiology (Gillis MacDonald, 2006). The lady who is always walking around at all hours has exhibits the characters of delirium. Although she is diagnosed as having dementia, people with similar behaviors can have delirium as well. Therefore, delirium is often misdiagnosed. Approximately 70 percent of elderly patients hospitalized have delirium althoug h expert nursing care facilities typically are able to identify the symptoms (Gillis MacDonald, 2006). There are three classifications of delirium which are: hyperactive, hypoactive, and mixed. Hyperactive, also referred to as agitated delirium, is described as being anxious and delusion. Hypoactive delirium (quiet) is regarded as a declined sensorium or amplified sedation. The mixed delirium interchanges between the frantic and the sedated type. Nevertheless, no matter how it is exhibited, delirium may be difficult to distinguish, as it can be multifactorial and easily mixed up with dementia, restfulness, and near-death awareness. In many circumstances, delirium is reversible, thus careful assessment is necessary (Rogers, 2006). Judicious nursing observation of a resident’s capabilities to execute activities of daily living can reveal much about the resident’s mental level. A variety of assessment tools are available. A common tool is the Confusion Assessment Method (CAM) (Inouye et al., 1990), which takes about five minutes to conduct, it is steadily reliable and is ap propriate in a number of settings, including acute care (Rogers, 2006). . Aging Typical alters the bodys ability to metabolize medications, tally to the threat for drug reactions. Although any medication may add to delirium in seniors, sedatives, antipsychotics, histamine receptor antagonists and anticholinergics raise the risk for delirium (Hanley, 2004) (Rogers, 2006). Furthermore, seniors have body fat percentage is higher and lower water which effects the fat-soluble drugs by being more concentrated and lasting longer (Rogers, 2006). Environmental adjustments should encourage optimal cognitive functioning, a realism between calmness and activity and consistent nursing care. A numerous of environmental modifications decrease the risk of delirium incidences and facilitate resident independence such as: maintaining the physical surroundings constant and sustain routines, allowing conformity of staffing for accurate assessment of the residents health status and continuous patient care, including family in care and having orientation done often to promote a good perception of well-being. Visits should be declined if hyperactive delirium appears to be onset by the visits, use volunteer sitters if family members are not available. Avoid bedroom changes whenever possible, Use a no-restraint or least-restraint procedure to reduce deterioration of cognitive loss. Remove unnecessary hospital devices, such as urinary catheters and IV pumps. Make sure that the call bell, personal items, glasses and hearing aids in easy reach. Encourage the use of personal items, such as pillows and bed set, to promote familiarity and reduce stress. In addition Have the rooms well-lit, sustain room temperature between 21.1 C and 23.8 C. and diminish noise levels on the nursing unit. Why people go to nursing home Seniors with mental ailment frequently have complicated needs because of the many co-complex needs because of disability, physical illness and social issues (Reynolds et al., 2000). Effective evaluation of long-term and multiple issues may be long-term and multiple problems may be particularly complex without standardized approaches intended at inclusive and methodical assessment of needs. However, certain needs are proposed to be `collective to all humans in general (Maslow, 1954), diverse areas of the population will have more specific kinds of need (Reynolds et al., 2000). Isolation is a difficult problem; the solutions need to be individualized (Owen, 2007). Even seniors who have a widespread social network of friends and family are at jeopardy of being isolated. Anything can easily happen; a senior can slip or fall, loss of their hearing or sight (Owen, 2007). They can also lose a loved one which can completely diminish their self-assurance in and cause conflicts in doing their daily activities. Over a period, social isolation and loneliness can bring on depression and withdrawal. This can also cause an intense drop of self-esteem and confidence (Owen, 2007). Active effort is needed to support seniors to discover the solutions to their social isolation and rejoined with their friends and family socially. Many senior engage in going to day centers, lunch clubs and home visiting services as they provide them with vital way to interact with other people (Owen, 2007). Caregivers and family often resort to nursing home facilities because of the time, cost and stress dealing with an elderly whose memory has deteriorated. Some seniors might feel neglected by their families. Some may exhibit low self-worth as a result of being alienated by their family. Caregivers and family often resort to nursing home facilities because of the time, cost and stress dealing with an elderly whose memory has deteriorated. Some seniors might feel neglected by their families. Some may exhibit low self-worth as a result of being alienated by their family. Some seniors also live in the assisted living section of the nursing home because they want to feel secure as the age that someone is there to help them if they need assistance with anything whether it is health needs or social ones. Living in regular communities tends to make life complex as local services for the seniors might not be available. Most nursing home facility offers numerous benefits such as companionship, availability of services tailored to the seniors, access to around the clock heath care and numerous activities. Benefits of Internship and Supervision Completing the internship course provided a guideline on what I should expect and what should expect to gain from my experience from the intern site. The supervision I received from the intern supervisor and workers were great. They were very detailed in what I needed to get done and how to carry out the task most of the time. Other tasks were self-explanatory. Recommendations for future interns and professionals in the setting I believe education is always good. I think it is especially important when it is to benefit others. Therefore, it is imperative for healthcare professionals and other workers in the nursing home facility to be educated and current on all the new advancement that can benefit the elderly such as therapeutic techniques, and other health related advancements. It is also good to know all safety procedures when in a nursing facility like wearing protective gloves, how to properly disguard hazardous objects, and wearing proper shoes for your safety. The only drawbacks as an intern was not being able to do as much activities as I would have hoped, but that was fine. I assumed senior residents liked to do things they are accustomed better than trying new activities. Although it is not my choice, I would incorporate some new activities for the senior residents who are more active. It seems that all the people who work with the residents are fully aware of their conditions and know how to deal with them. Therefore, I assume they are educated on their mental disorders and cognitive level. Personal Growth Experienced The internship has opened my eyes to all that goes on in a nursing home. Before going in to complete my internship, I thought that the operation of running a nursing home was easy. After having arrived, and starting to get in the routine I found out it was not so easy after all. There are numerous residents to care for with different kinds of needs. It is also challenging to get everyone where the need to be and having a variety of activities to cater to each individuals preferences. That is also the case with almost everything with these residents from their dietary needs to their religious services. Everything has to be done in a multiple or diverse way to ensure everyone is catered to, and their needs are meet. I thought overall I had an enriched experience at the nursing home site. What I have gained from this internship is to be patient, how to multitask and use my time wisely. I also have learned to take initiative and to be a team player, helping out in whatever way I can in order to make things run smoother at the worksite. With the exposure I received I think I am now capable and comfortable working at a health care facility or similar setting. References Birmingham, K. (2008 ). Exercise slows Alzheimers progression. Nursing Older People,  20(7), 4. Retrieved from http://go.galegroup.com Carruthers-Czyzewski, P., Dewar, J. (1998). Seniors health: Parkinsons  disease.CPJ.Canadian Pharmaceutical Journal,131(3), 34.  Retrieved from http://search.proquest.com Gillis, A. J., MacDonald, B. (2006). Unmasking delirium. The Canadian Nurse,  102(9), 19-24. Retrieved from http://search.proquest.com Hartwell, H. (2013). Dementia.Perspectives in Public Health,133(3), 134.  doi:10.1177/1757913913485334 Owen, T. (2007). Working with socially isolated older people.British Journal Of  Community Nursing,12(3), 115-116. doi:10.12968/bjcn.2007.12.3.23038 Potocnik, F. C. V. (2013). Dementia. South African Journal of Psychiatry, 19(3), 141.  Retrieved from http://go.galegroup.com. Reynolds, T.,Thornicroft, G., Abas, M.,Woods, B., Hoe, W., Leese,M., Orrell, M. (2000).  Camberwell Assessment of Need for the Elderly (CANE): Development, validity and reliability BJPsych 176, 444-452. doi:10.1192/bjp.176.5.444 Rogers, S. K. (2006). Delirium in the Home Care Setting. Home Healthcare Nurse: The Journal  for the Home Care and Hospice Professional, 24(6), 366–367.  doi:10.1097/00004045-200606000-00006 Wilson, R. S., Krueger, K. R., Arnold, S. E., Schneider, J. A., Kelly, J. F., Barnes, L. L.,   Bennett, D. A. (2007). Loneliness and Risk of Alzheimer Disease. Archives of General Psychiatry, 64(2), 234. doi:10.1001/archpsyc.64.2.234