Incentive Effects Of Stock Purchase Plans Case Study

Incentive Effects Of Stock Purchase Plans - Case Study Example The study proved that equity-based compensation plans tend to have a more positive impact on shareholder wealth; one of the primary reasons behind adopted these compensation schemes is to ensure that managerial and shareholder interests are in sync and equity ownership boosts key execuctives more than sub ordinate employees. Smitt and Watt claimed in this study that equity based compensation schemes will trigger top employees more than the lower level employees. The hypothesis is proved using identified plans in the study. The stock purchase plans that were meant were key executives guaranteed greater returns compared to other adjusted returns. The result thus vaguely support the Smith-Watts suggestion. For instance, the IRS 423 plan which was meant for the employees within the organization gave a zero reaction on the announcement date. Article 2: The impact of Long range Managerial Plans on Shareholder wealth by James A Brickley Economists have often voiced out the economic importan ce of different types of managerial compensation schemes. However there are certain groups, for instance shareholder advocate groups who are against managerial compensation contracts. These groups insist that some plans are advantageous for managers at the expense of other shareholders. This means that while they may prove worthy for managers, they put the interest of shareholders at stake. Moreover, very little research has been conducted on this subject. There is insufficient literature out there to draw inferences from as well. The effect of various managerial plans on shareholder wealth is an empirically important issue. This study attempts to look into this issue more comprehensively and empircally. This study throws insight on the stock price reaction when there was on announcement regarding changes in long term managerial compensation packages. It is a comprehensive study undertaken by James A Brickley. The study presented evidences proving that most change plans are welcomed with positive market reaction. This is because at the end of the day, they increase shareholder wealth. The study is unable to mark comparisons between different types of market reactions to different types of compensation schemes. The difference could not be nailed in this study. The result supports the nation that every firm has it’s own set of managerial compensation requirement and every firm treats it different. Thus, there is no compensation package that is better than the other one. The profitability and feasibility of every compensation plan depends on the organization. A cross sectional analysis was done to prove the afforementioned notion. Article 3: The Modigilani Millar Propositions after 30 years by Merton H. Miller This article was published in the Journal of Economic Perspective. The journal was published on the 30th anniversary of the Modigilan-Millar propositions regarding the cost of capital, finance and the theory of investment. The article was published i n the American Economic Review of June 1958. This article throws insight into the kind of significance these propositions hold today ; to what extent have they impacted the financial models of today, what reforms did they arouse, where do these propositions stand today and how have they progressed after almost three decades of intense scrutiny , rancor debates etc. Most of these controversies can be thought off as settled today, thanks to all the research done in

Tourism and Its Impact on a Country's Image Research Paper

Tourism and Its Impact on a Country's Image - Research Paper Example 903). The power of image to significantly influence the outlook of individuals has been known from long. Thus, social psychologists had identified image as an affirmative and potent phenomenon, while the present day marketing research has extensively explored the capacity of brand and other images to guide consumer behavior (Elliot, Papadopoulos, & Kim, 2011, p. 521). The power of image is clearly discernible in tourism; and several important writings in the 1970s served to highlight the importance of image in anticipating travel behavior. As a consequence, tourism destination image (TDI) has emerged as an important perspective of research (Elliot, Papadopoulos, & Kim, 2011, p. 521). Several studies have been conducted with respect to the effect of image on traveler choice. However, the diversity in conceptualizations of place image denotes the absence of a theoretical basis and the fact that the research has been disjointed (Elliot, Papadopoulos, & Kim, 2011, p. 521). Among the sign ificant sectors of the economy that are experiencing rapid growth, tourism occupies a very important place. This sector has to countenance the possibilities and challenges that are posed by globalization. Tourism markets have traditionally been isolated from one another (Navickas & Malakauskaite, 2009, p. 37). An important development during the past few decades has been the diffusion of the boundaries between national businesses. The income of individuals and families has experienced a gradual increase, which in turn has made it attractive for them to travel longer distances, as tourists (Navickas & Malakauskaite, 2009, p. 37). Moreover, global tourism has benefitted enormously on account of the enhancement in the quality of tourist products and services, ingenious tourism marketing strategies, developments in communications and transport, and other related factors (Navickas & Malakauskaite, 2009, p. 37). The ever burgeoning tourism market is being avidly scrutinized by countries t hat are keen to control the major share of the profits of this industry. This especially holds good for countries that are dependent on tourism, and which depend almost exclusively on the travel industry and tourism to generate the much needed revenues (Navickas & Malakauskaite, 2009, p. 37). Contemporary existence is within a regime of super brands. This makes it out of the ordinary to consider a city, state, region or nation as a brand. The benefit of having brands is that the consumer finds it much less intricate to make a selection and that the consumer enjoys a particular brand (Gruescu, Pirvu, & Nanu, 2008, p. 253). If a place is to be rendered a center for the promotion and acceleration of economic development, then it seems logical to manage it as a brand. Such branding will procure an improved value and identity in what is essentially an ever increasingly competitive market (Gruescu, Pirvu, & Nanu, 2008, p. 253). It is essential for a branded approach to bring in focus, con sistency and to provide leadership that brings together community partners. In addition, such approach should ensure that it emerges as the fulcrum for adding value to customers; and this should be promoted by the combined marketing initiatives of the city (Gruescu, Pirvu, & Nanu, 2008, p. 253). In the context of the advanced economies of Central Europe, the chief driving forces of foreign policy have been accession to the European Union and integration into the global economy. In several instances, there has been

Child Development Observation Essay Example for Free

Child Development Observation Essay The setting of where I observed the baby was at my house in the family room. The family room can be pictured as a square. The door to enter the house is in one corner of the family room. To the left of the door there is a mirror on the wall and next to the mirror there is a single person couch. The color of the couch is brown. That sits in the corner adjacent to the corner where the door is. Then, there are the sliding doors to enter the patio and in the corner adjacent to the couch there is a big, black television. Next to the television, my baby’s pink Winnie the Pooh play yard. Next to that is her small pink and brown, vibrating bouncer. Then there’s the last corner of the room which opens to the bedrooms. This is the room where the observation took place. The baby I observed is my nephew, Gabriel. He is four months and three weeks old. He will turn five months on the 22nd of this month. He was wearing a blue jean overall with a brown onesie that has little puppies. He also had some soft tennis shoes on. They are white with a navy blue stripe on each side each shoe. He barely has any hair and he has no teeth. In twenty minutes, Gabriel was very active. I started observing as soon as he woke up from a nap. He began by stretching both of his legs straight out and his left arm stretched straight up towards his head and his right arm stretched up towards the sky. My boyfriend then picked him up and started talking to him. Gabriel started laughing and kicking his feet back and forth, starting with his right foot and continued by alternating each kick with the opposite foot. He stopped laughing and shoved both of his hands in his mouth. He made himself gag. He was then tickled again and started laughing. Again he began kicking his legs, left then right. He grabbed his face with his left hand. He started to get hungry. While his bottle was being prepared, he began sucking on his left hand and he began to make sucking noises. As my boyfriend got the bottle close to Gabriel’s face, his eyes popped open and he opened his mouth. While he ate, he moved his right hand over his face and made sucking and snorting noises. He was also just looking around while eating. He was about a quarter done with his bottle, when he stopped eating and started pushing. Both of his hands clasped together and he made a noise which let us know that he was pushing. All of a sudden, I heard him pass gas but it wasn’t just gas. The gas came with a little surprise. He kept his fists closed and kept pushing. He was pooping. Once he was done, he gave a big smile and started kicking his legs again. He also began sucking on his hands. My boyfriend laid him on the floor on top of his blue, fuzzy blanket. Gabriel began making cooing noises. As my boyfriend began taking off Gabriel’s clothes, he continued kicking and making cooing noises. As his diaper was coming undone, Gabriel started laughing. My boyfriend got a hold of his legs and took off his diaper. Gabriel just began sucking on his hands again. Gabriel’s mom saw him and took his hands out of his mouth. She gave him a pacifier. He began rubbing his eyes with both hands. He then began to cry. My boyfriend put his clothes back on and continued feeding him. Gabriel was lying with his feet dangling off of my boyfriend’s leg. His right arm was around my boyfriend’s back and his left arm was on his stomach. He was making a sucking sound and was opening and closing his eyes. Gabriel jumped when he heard a loud noise. He opened his eyes and his left arm went straight up into the air. He was calmed down and closed his eyes again. His left arm dangled to his side. He stayed like that until he finished eating. He was stood up straight and burped. He fell asleep and he was laid in my daughter’s play yard with his arms to the side and his legs spread apart.

Essential Factors Considered In Hr Practices Commerce Essay

Essential Factors Considered In Hr Practices Commerce Essay Human resource management (HRM) is known and accepted in the broadest sense of the term, as a form of management that includes all management decisions and actions that affect the nature of the relationship between the organisation and the employees its human resources (Beer et al., 1984, p. 1). As can be observed based on the definition, the tasks of those belonging in HRM can be complex as it involves all issues that encompasses employee and firm relationship. Believing that the most important asset of a business is the people in order to achieve sustained business success is the core philosophy of human resource management (HRM), and realising this leads to a strategic management of people within the organisation. The effective management of human resources is increasingly being recognised as a major determinant of success or failure in international business (Tung, 1998), in practice many organisations are still coming to terms with the human resources issues associated with international operations (Ferner, 1997). In the international arena, the quality of management seems to be even more critical than in domestic operations (Tung, 1998). This is primarily because the nature of international business operations involves the complexities of operating in different countries and employing different national categories of workers (Morgan, 1986). The field of international human resource management, however, is only slowly developing as a field of academic study and has been described by one authority as being in the infancy stage (Laurent, 1986). Primarily, the main goal of this paper is to provide insightful details regarding the concept of the international human resource management in relation to a multinational company like Honda. In addition, this paper will discuss some factors that must be considered when managing people in the international environment. This paper will focus in three areas: The Organisational Structure in the Context of Globalisation, Global Leadership in a Global Environment and Transferral of Employees Internationally. Company Profile Honda is the worlds largest manufacturer of engines, ranging from tiny single-cylinder lawn trimmers to the mighty V-10 engines of Formula 1 racing. Honda Motor CO., Ltd. is considered as a limited liability and a joint stock corporation which was incorporated on September 24, 1948 under the Commercial Code of Japan known as Giken Kogyo Kabushiki Kaisha. The company was formed to the firms of an unincorporated business founded in 1946 by the late Soichiro Honda, to produce or manufacture motors for motorised bicycles. Honda was unusual in having already created an industrial model by the time it entered the automobile industry. Twelve years after it was founded in 1948, Honda had become the worlds largest motorcycle manufacturer, on the basis of a strategy which focused on product innovation and production flexibility and on the mass production of products which had in effect opened new market segments. The firms success owed much to the mechanical and commercial imagination of Soich iro Honda himself. His associate, Takeo Fujisawa, who was in charge of the organisation and its finances, had been concerned from the start to find the resources needed to overcome the difficulties inherent in this profit strategy. Industrial models which are to be consistent with part of a strategy of flexibility and innovation must therefore give the firm the resources to counter these risks or reduce their impact. By 1967 Honda had become a proper car manufacturer. It opted for an innovative automobile niche and exportation in order to create a place for itself among Japanese producers. It marketed a mini front-wheel-drive car with a small but powerful air-cooled engine. The models commercial success in Japan propelled Honda into third place behind Toyota and Nissan, with an annual production of 277,000 passenger cars in 1970 (Mair, 1994). Honda became the worlds largest motorcycle producer twelve years after it was founded in 1948. The company entered the automobile industry during the early 1960s. It then grew continuously for three decades, overtaking established automobile producers to rank tenth in the world and become one of Japanese Big Three alongside Toyota and Nissan. During this period Honda developed an image as a different company with an idiosyncratic trajectory led by innovative products. Growth was seriously challenged in the 1990s. Yet by now Honda had deepened and globalises an industrial model of flexible mass production. Accordingly, Honda remained profitable during the 1990s Japanese recession. At the same time the crisis forced a rethink of the product innovation strategy (Freyssenet, 1998). Today, Honda is being regarded as one of the multinational automotive companies operating in different parts of the world. Honda had been able to penetrate the global market including countries in different pa rts of Asia, USA and Europe. Organisational Structures in the Context of Globalisation The true worth of international HRM is becoming more widely understood as IHRM steadily interweaves all aspects of people management and development within the company (Williams, 1995). According to Lipiec (2001), HRM is defined as the process of coordinating an organisations human resources, or employees, to meet organisational goals. Human resource professionals deal with such areas as employee recruitment and selection, performance evaluation, compensation and benefits, professional development, safety and health, forecasting, and labour relations. There are many factors in which multinational companies must consider, and one of these is about giving emphasis to the organisational structure imposed in the globalisation context. A key issue in accomplishing the goals identified in the planning process is structuring the work of the organisation (Zammuto OConnor, 1992). Organisational structure is the formal decision-making framework by which job tasks are divided, grouped, and coo rdinated. The organisational structure of multinational companies is being influenced or affected by the emergence of globalisation. Globalisation is easier to describe than to define. This is because, in its present form and usage, it is a new, complex, dynamic, multidimensional, and worldwide phenomenon, which means different things to different people and different things to the same people across time and space (Rosenhead, 1996). It evokes strong emotions because it is associated, rightly or wrongly, with most of the worlds significant challenges and opportunities (Kiggundu, 2002). As mentioned, one of the Multinational companies that are being challenged by the concept globalisation in terms with organisational structure is Honda. The organisational structure of Honda comprises of board of directors, senior management, different committees on finance, and employees. As of March 31, 2003 the company has been able to employ 126, 900 full time employees which includes approximately 65, 000 l ocal employees employed in international subsidiaries (See Appendix 1). In order to cope with the various influences and effects of globalisation, the management of Honda, has been able to improve and expand its organisation so as to conduct environmental activities on a global scale. The management has improved its organisational structure to achieve their organisational objectives (A sample of organizational structure of one of the subsidiaries of Honda is seen in Appendix 2). One of these objectives is to be able to pursue an environmental conservation programs at all phases of Hondas operations and throughout the lifecycle of Hondas products. In addition, the improved organisational structure is done in order to initiate speedy and flexible measures in managing their internationally diverse employees. In this manner, Honda ensures that the manager that they will hire certainly have the ability to adjust the human resource policies and practices to foreign environments. In the competition for global talent, corporations that are reluctant to consider foreign nationals for top management positions will lose out; the most talented people simply will not join an organisation that holds no promise of promotion (Keeley, 2001). As of March 31, 2003, Honda had 139 Japanese subsidiaries and 173 international subsidiaries (See Appendix 3). As Honda gain more experience they are able to adopt a more global approach to the management of all their operations both domestic and international (Dowling Schuler, 1990). Researchers have long acknowledged that there are differing types of organisational structures that produce differing types of manager-subordinate relationships. Honda try to enhance cross-value capabilities by facilitating dialogue, camp sessions, or brainstorming seminars held out side the workplace, and even drinking sessions (Nonaka Takeuchi, 1995). Organisational structure had a bigger role in the organisational practice of the management of Honda. It has been evidently shown that when the leader had a great strategic plan and whose plan had been vision and delivered well, the company will have a greater probability to succeed. Since, the competition are very high in the market be especially in the global arena, Honda has been able to consider the strategic function of its organisational structure internationally. Global Leadership in a Global Environment Due to the emergence of globalisation and its intense effect to different companies, many of the businesses are trying to cope with this situation and be known not only in the local marketplace but also in the international level. However, operating in the international arena is not that easy because of different factors to consider. When a firm decides to expand its venture to international market, it faces different challenges that need to be given emphasis (Klein, Ettenson Morris, 1998). One of the most important considerations that should be given enough attention by the management of any industry is the management of the human resources and the determination of the international human resource management (IHRM) practice that will be implemented through the global leadership ability. Leadership comprises the aptitude and ability to inspire and influence the thinking, attitudes, and behavior of other people (Adler, 1991; Bass, 1985; Bass and Stogdill, 1989; Bennis and Nanus, 1985 ; Kotter, 1988). Leadership is a process of social influence in which one person is able to enlist the aid and support of other individuals in the achievement of a common task (Chemers, 1997). The achievement of corporate success can only be accomplished by people who have broader knowledge in leadership (Cascio, 1995). In an international marketplace where borderless organisation is quickly becoming the norm, the leaders of Honda has been able to recognise that employees have an increasingly important role in the cultivation of the company achievements. The level of employee involvement in companies has expanded in general and in internationally-oriented corporation, progressive manages must recognise that only through effective management of people can organisations survive (Bartlett Ghoshal, 1989). The concept of international human resources refers to the process procuring, allocating and effectively utilising human resources in an international corporation. The leaders handling IHRM is said to be significant in the attainment and accomplishment of companies in the global scene. IHRM apparently draws the line between a companys endurance and obliteration (Sims, 2002). In line with the global leadership of Honda, the company has been able to utilise a system that would give balance to their imposed international human resource management. One of the leadership ability that Honda, inherited from Soichiro Honda, is his visionary ability. The visionary leadership ability of the leaders of Honda encompasses their ability to eliminate management layers to become visible within the organisation and being active, early participants for future projects and operations. The leaders of the company have been able to be directly involved in every operation and become a powerful role model to their subordinates (Nevis, DiBella Gould, 1995). In addition, the company had been able to utilise the permissive (delegative) or the so called laissez-faire style. In this manner the employees of the company in the international level are permitted to be involved in the decision making process. In this manner, the management implements minimal control or manipulation on t heir employees both local and international. However, the management is still accountable for the final decision to be made. Herein, the opinion and ideas of the Honda employees are being valued by the leader and each employees and staff encompasses different tasks set by the leader. Transferral of Employees Internationally Another factor to consider when managing international human resources is the concept of transferring human resources to international operations. Part of the concept of transferral of employees to international organisation is the recruitment context. Recruiting in the international arena is taken a lot more seriously and given a lot more thought than it used to be. Gaining competent employees at all levels of the organisation is more than a matter of training. It stems from changes in recruitment and selection philosophy (Ashkenas et al, 1995). Recruiting the most competent employees for each and every organisation is continuous challenge for the human resource management, specifically in the international arena (Henderson, 1996). Faced with the problem of conducting recruiting effort to fill critical position in any level of organisation, the international HRM practice must create an Employee Recruiting Policy to identify the critical activities in the recruitment process and monitor its results. In case of Honda Motor, the international human resource management of the company has been able to plan an IHRM Recruiting Program clearly state the mission and objective of the recruitment process to be done. Specifically, the purpose of such policy is to offer a criterion and standard measure for recruiting human resources that will be work in the international level. The recruitment imposed by the international HRM also includes a procedure so that the recruitment process for the international subsidiaries of Honda should be accurate and correct. In this manner, the international HRM of Honda also ensures that they are updated when it comes to job position, if a new position is required or if a transferred/reassi gned or terminated workers or employees would need a replacement. In addition, the move of Honda to transfer employees to international subsidiaries aims to promulgate their organisation culture even in the global arena. Honda Motor has make it sure that they always follow the international labour policies. In this manner, before an employee is given an opportunity to work in the international level, the company provides all the necessary trainings, in order to ensure that the transferred human resource or employees will be able to provide the necessary responsibilities allotted effectively and efficiently. Another important factor to consider when transferring an employee to an international subsidiary is the orientation of the management system of the host country in order for the transferred employee to adjust with the present situation of the international organization. In the case of Honda, the company has been able to provide a comprehensive orientation to employees who will be transferred regarding the culture, attitudes values and other hum an factors that can be encountered to such international subsidiary. It is also equally important to note that since, Honda, belongs to a company which manufactures quality and innovative cars, sharing of knowledgeable and efficient employee or managers is one of their style. These transferred employees, are responsible to collaborate with other employees in such international subsidiary (Gallie, 1998). The creation of work teams with collective responsibility for the management of a group of machines or a specific segment of the work process was based on a managerial initiative. Conclusion In any business enterprise, employees are considered as the most vital assets. In order for these companies maximise their assets, the management should have the ability to effectively manipulate employees working condition (Ulrich, 1998). Herein, the employees must be allowed to be involved in the decision making process to further enhance the organisational structure (Delaney Huselid, 1996). Moreover, the structure of tasks among the employees strengthens the organisational performance (Wilson, 1989). As problems of regional and cultural diversity politically led administrative issues impede the functioning of the organisation, it is very essential understand the employees (Schneider, 1983). The enhancement, building, enthusiasm, motivation and development of the employees of any organisation depend largely on the leadership, mandate and vision of the organisation (Rainey Steinbauer, 1999). The management of Honda has been able to employ the general HRM practices of Japan with their international subsidiaries like the United States. Hanada (1989) described five phases in the development of international human resource management through which Japanese firms such as Honda pass as it become increasingly involved in global activities. In stage one of Hondas international activities, the programs are limited to export of its product for example in Philippines, Taiwan and USA and its International HRM function is mainly concentrate in an export department. With the urge of the company to be known in the global context, Honda has been able to establish foreign assembly or operations like in USA, UK and other part of Asia. Herein, the increase human resources of Honda, is usually handled by creating an overseas operations department. The establishment of an overseas human resource department characterises the structure of the firm which is substantially modified to reflect the increasing interaction between Hondas domestic and foreign operations. In addition, there are also times when Honda, felt to have greater control of their international operation. Herein, the International HRM of Honda, functions mainly in different areas and practice of HRM. In this manner, the company gives emphasis to the differences of their employees so as to have a harmonious human resource relationship. There are also times in which the company had been able to reach the globalisation phases that the management of Honda, attempts to thoroughly internationalise its human resource management and there is no distinction between foreign and Japanese employees with the international division. All in all it is very crucial that an international organisation should make a way in adjusting their management styles and approaches to adhere with the differences and similarities of the employees, specifically those in the international environment so that IHRM may catalyst the motivation among diverse individual. It is also important to note that international human resource management should have the ability to employ the principles and concepts of emotional intelligence and give emphasis to the importance of self-awareness in dealing with different kinds of people, winning their trust and to ensure that the peoples values and the organisations objective will intersect to a common goal and that is to incorporate good employment relationship. Recommendation In managing people, the international human resource management, Honda Motor Corporation and other Multinational Corporations should be able to have the ability to think more systematically and strategically in handling one of the most valuable factors within the organisation, i.e. its human resources. Herein, IHRM practice should be able to develop a successful organisational culture and a stable organisation by means of effective management of the people. In addition, communication is a very important factor to use in order to have a harmonious and smooth relationship between the management team and the employees in the international level. In addition, the management should try to integrate its own management system with the management system of the host countries, in which MNC are operating. The main goal of this integration is to let the employees within the international operation feel that their culture, values and traditions are not being discriminated by the management. In this case, if Honda would continue to implement a strategic international human resource management, it will be able to handle and manage their human resources in each international operation successfully. Reference Ashkenas, R., Ulrich, D., Jick, T., Kerr, S. (1995). The Boundaryless Organization. Breaking the Chains of Organizational Structure. San Francisco: Jossey-Bass. Bartlett, C.A. Ghoshal, S. (1989). Managing Across Borders. The Transnational Solution. London: Hutchinson Business Books. Beer, M., Spector, B., Lawrence, P., Mills, D. Walton, R. (1984). Managing Human Assets. New York, NY: Free Press. Cascio, W. (1995). The Human Resource Challenge of International Joint Ventures. Westport, CT: Quorum Books. Delaney, J.T., Huselid, M.A. (1996). The Impact of Human Resource Management Practices on Perceptions of Organisational Performance, Academy of Management Journal, 39: 949-69. Dowling, P.J. Schuler, R.S. (1990). International Dimensions of Human Resource Management . Boston: PWS-Kent. Ferner, A. (1997). Country of Origin Effects and HRM in Multinational Companies. Human Resource Management Journal, 7(1): 19-37. Fine, M.G. (1995). Building successful multicultural organisations. Westport, CT: Quorum Books. Freyssenet, M. (1998). One Best Way? Trajectories and Industrial Models of the Worlds Automobile Producers. Oxford: Oxford University. Gallie, D. (1998). Restructuring the Employment Relationship. Oxford: Oxford University Press. Hanada, M. (1989). Management themes in the age of globalisation. Management Japan 20, 19-26. Henderson, G. (1996). Human Relations Issues in Management. Westport, CT: Quorum Books. Honda Motor Co. Ltd (2005). Available at [www.honda.com]. Accessed on [05/05/2005]. Keeley, T.D. (2001). International Human Resource Management in Japanese Firms: Their Greatest Challenge. New York: Palgrave. Kiggundu, M.N. (2002). Managing Globalization in Developing Countries and Transition Economies: Building Capacities for a Changing World. Westport, CT: Praeger. Klein, J.G., Ettenson, R.E. and Morris, M. (1998). The Animosity Model Foreign Product Purchase: An Empirical Test in the Peoples Republic of China. Journal of Marketing, 62(1): 89-100. Laurent, A. (1986). The Cross-Cultural Pussle of International Human Resource Management. Human Resource Management, 25: 91-102. Lipiec, J. (2001). Human Resources Management Perspective at the Turn of the Century. Public Personnel Management, Vol. 30. Mair, A. (1994). Hondas Global Flexifactory Network. International Journal of Operations and Production Management, 14(3): 6-23. Morgan, P.V. (1986). International Human Resource Management: Fact or Fiction. Personnel Administrator, 31(9): 43-47. Nevis, E. DiBella, A. Gould, J. (1995). Understanding Organisations as Learning Systems. Sloan-Management Review, 73-85. Nonaka, I. Takeuchi, H. (1995). The Knowledge-Creating Company. New York: Oxford University Press. Rainey, H.G., Steinbauer, P. (1999). Galloping Elephants: Developing Elements of a Theory of Effective Government Organisations. Journal of Public Administration Research and Theory, 9: 1-32. Ragins, B.R. (1997). Diversified mentoring relationships in organisations: A Power Perspective. Academy of Management Review, 22: 482-521. Rosenhead, J. (1996). Whats the problem? An introduction to problem Structuring methods. Interfaces 26:117-131. Schneider, B. (1983). Inter-actional Psychology and Organizational Behavior. In L.L. Cummings and B.M. Slaw (Editions) Research in Organizational Behavior, vol. 5, pp. 1-31. Selmer, J. (2001). The Preference for Pre-departure or Post-arrival Cross-Cultural Training: An Exploratory Approach. Journal of Managerial Psychology, 16(1): 50-58. Sims, R (2002). Organisational Success through Effective Human Resources Management. Westport, CT: Quorum Books. Tung, R.L. (1998). American expatriates abroad: from neophytes to cosmopolitans. Journal of World Business, 33(2): 124-45. Ulrich, D. (1998). Human Resource Champions: The Next Agenda for Adding Value and Delivering Results. Boston, Mass: Harvard Business School Press, p.88. Williams, L.C. (1995). Human Resources in a Changing Society: Balancing Compliance and Development. Westport, CT.: Quorum Books. Zammuto, R. OConnor, E. (1992). Gaining advanced manufacturing technologies benefits: the role of organizational design and culture. Academy of Management Review, 17: 701-28. Appendix Appendix 1 Total Number of Employees of Honda Motor Co. Ltd As of March 31, 2003 Total Motorcycle Business Automobile Business Financial Service Other Business 126,900 24,100 92,100 1,700 9,000 Appendix 2 Organizational Structure of Honda (Based in Pakistan)

Impact of World War 2 on Canada :: essays research papers

The result of the Second World War fundamentally changed Canada and its economy started booming. There are many reasons for this change and if you remember, World War I also made a big impact on the development of Canada. However, in the next few paragraphs I will talk about how Canada gained much more respect and autonomy from the Second World War than ever before and also the change from a country into an industrialized nation. After greatly contributing to the war, especially in the Battle of the Atlantic, Canada ended up having the 3rd largest navy and 4th largest air force. Now, for such a small nation of only around 11 to 12 million, this was a large military force. Since Canada had done so well in the war (already their second world war as a country) Canada started to grow further and further apart from Mother Britain. There was a feeling a greater sense of pride and a more nationalistic notion. Canadians everywhere no longer saw themselves as British, Scottish, or American, they were Canadian. Canada was now a respected country, and I might add, a pretty powerful one too. Canada also became a leader internationally as well. With such an enormous military contribution during the war, other countries began to recognize the success of Canada. People wanted to know more about Canada. Consequently, the war advanced Canada’s sense of identity. Before the war, Canada’s most important sector in its economy was agriculture. However, this was changing drastically after and during the war as industry began to take over as being more important. Canadian production of war material, food supplies, and raw materials had been crucial during the war. After the war, it was only natural that big investments were being made in mining, production, transportation, and services industries. Canadian cities were becoming very important contributors to the economy. This was also bringing in waves of post-war immigration, the backbone of Canada’s multicultural society we know today. Because of Canada’s boost in the industrial economy and its status in World War II, job options were abundant. By 1942 there was a full employment as hundreds and thousands of Canadian men and women found work in war industries.

Elie Wiesel Speech Summary Essay

In the speech Elie Wiesel says that indifference is bad and that it is a crime against humanity .He also said that indifference to a tragedy is not guiltless and that you cant just witness cruelty towards someone or something and not be responsible in some way for what ends up happening instead he said that you have to step in and help the person or thing that someone is being cruel to. He also talks about his experience during the Holocaust, and how people ignored the millions of Jews that were dying. He also said that indifference is more dangerous than anger and hatred when he says â€Å" Indifference, then, is not only a sin, it is a punishment. And this is one of the most important lessons of this outgoing century’s wide-ranging experiments in good and evil.† he is saying that when people were ignoring the fact that Jews were being killed they were committing a sin. Another thing he said was â€Å"But then, there were human beings who were sensitive to our tragedy. Those non-Jews, those Christians, that we called the â€Å"Righteous Gentiles,† whose selfless acts of heroism saved the honor of their faith. Why were they so few? Why was there a greater effort to save SS murderers after the war than to save their victims during the war?† he was saying that after the war people cared more about helping the SS instead of the and there was few people that wanted to help the Jews that were being killed or injured. Also when he said â€Å" Their fate is always the most tragic, inevitably. When adults wage war, children perish. We see their faces, their eyes. Do we hear their pleas? Do we feel their pain, their agony? Every minute one of them dies of disease, violence, famine. Some of them – so many of them – could saved. He was trying to say that that there are a lot of children dying and they really cant do anything about it and they just end up dying.

Report on Lease Financing

[pic] [pic] Course code: F-201 Course title: Financial accounting -2 Submitted to: Tahmina Akter Lecturer Department of Finance University of Dhaka Submitted by: Name | | | |Roll | | | |Section | | | |Md. Mostafa Kamal | | | |16-058 | | | |B | | | |Md. Sakib Bin Abdul Hannan | | | |16-096 | | | |B | | | |Md. Mehdi Hasan | | | |16-112 | | | |B | | | |Parvaj Mosaraf | | | |16-140 | | | |B | | | |Belal Hossain | | | |15-132 | | | |B | | | BBA 16th Batch Department of Finance University of Dhaka Date of Submission: 26-05-2011 Letter of Transmittal Date: 26th May, 2011. To Tahmina Akter Lecturer Department of Finance University of Dhaka Subject: Submission of report â€Å"A Report on Lease Financing†. Dear Madam, We are pleased to submit the report you have assigned to us. The report paper was to prepare the term paper on the course named â€Å"Financial Accounting-2† Course # F –201, as a part of our academic activities. This is the report on â€Å"A Report on Lease Financing†. The report reviews that how leasing company leases equipment. And we have focused a specific lease agreement of United Leasing Company with Delta Pharma Limited to have the real experience. We tried our best to prepare this report a fault free, but it is not possible. We hope that you will take any mistake with kind consideration. Thank you. Sincerely Mostafa Kamal (On behalf of the group-) Contents Acknowledgement This report entitled â€Å"A Report on Lease Financing† is submitted as the requirement of a part of the study of â€Å"Financial Accounting-2† in the BBA program conducted by Department of Finance, University of Dhaka. To prepare this report an intensive study was made covering various terminologies with the help of books named â€Å"Intermediate Accounting by Donald E. Kieso and Weygandt†. At first we want to pay our gratitude to all mighty Allah for preparing the report successfully. We are extremely grateful to our honorable course teacher Tahmina Akter, lecturer, Department of Finance, University of Dhaka for her painstaking guidance, suggestion and all type of support & supervision to prepare this report. She continuously reminded us for the preparation of this report paper and finally gave a out-line to write down the paper spending her valuable time. Without her untiring efforts, completion of this report paper would have been impossible. We like to give thanks especially to our friends and many individuals, for their enthusiastic encouragements and helps during the preparation of this report us by sharing ideas regarding this subject and for their assistance in typing and proof reading this manuscript. Executive Summary Lease financing is the most important issue that determines the direction of financial behavior in an organization, a financial level of effort, and the organization’s level of persistence in the face of obstacles of other types of financing. Now-a-days lease financing is the most emphasized topic to any challenging institution or organization to develop their financial resources as well as profit maximization or maximization of owner’s equity. Lease financing is so central to management because it explains why it is better for the organization to gather financially solvency by lease financing. By lease financing an organization can reach its specific destination. If an organization has effective lease financing efficiency it can survive & develop quickly than others. At first an organization considers lease financing and other financing cooperatively with one another then it takes decision to apply lease financing or other financing whichever is best. If other financing is the best than the lease financing then it will be selected, not lease financing. So from this comment it will be clear that lease financing must be selected it is not necessary. So which is the best is considerable matter. Background of the Report As a Part of Financial Accounting-2 course, we have prepared this report. Our course teacher, Tahmina Akter, instructed us to prepare a report on â€Å"Lease Financing†. We have made a detailed and critical analysis on the topic-All the five members of our group provided their sincerity and serious effort to prepare this term paper and the term paper submitted today – 26th May, 2011. Objective of the Report The main objective of our term paper is to show the lease agreement of a leasing company. We have study about advantage of leasing, various features of leasing but while preparing this report we have understood how leasing is important for company. Methodology and sources of information The term paper is written by using secondary resources. To prepare this term paper I have taken the help of numerous books, computer lab of business faculty of university of Dhaka. In this term paper I sorted information shortly and to collect information we went to computer lab and central library of Dhaka University. Besides I have also collected information through numerous sources such as The Daily Star and other daily news papers, journals etc. INTRODUCTION A lease is a contract whereby the owner of an asset (the lessor) grants to another party (the lessee) the exclusive right to use the asset in return for the payment of rent. Lease financing in Bangladesh means financing according to the methods of lease in Bangladesh. Sometimes it is more acceptable than others financing. Actually it is more profitable in some special sectors where other financing will be less profitable than lease financing. Most of us are familiar with lease of apartments, cars, and telephones. Bangladesh is a developing country, so lease financing is not very easy to apply here. In spite of these problems there are many sectors where lease financing is strictly applied. The key difference between a finance lease and an operating lease is whether the lessor (the legal owner who rents out the assets) or lessee (who uses the asset) takes on the risks of ownership of the leased assets. The classification of a lease (as an operating or finance lease) also affects how it is reported in the accounts. The classification of large transactions, such as sale and leasebacks of property, may have a significant effect on the accounts and on measures of financial stability such as gearing. However, it is worth remembering that an improvement in financial gearing may be offset by a worsening of operational gearing and vice-versa. Leasing: A lease is a contractual agreement between two parties establishing an arrangement for the use of an asset in return for periodic payments by the user. In a lease arrangement: ? The lessor is the asset owner, who receives the periodic payments. ? The lease makes the payments to the lessor in return for using the asset. Types of leases: All leases can be categorized broadly as either operating or financial leases. In turn, financial leases can be categorized into specific types. We will discuss the various types of leases below. Operating leases: An operating lease is a short-term, cancelable lease. A simple example of an operating or service lease is a lease for telephone service. Financial leases: A financial lease is typically a long term, no cancelable lease- the opposite of an operating lease. At the termination of the lease contract, the lessee often can either renew the lease or purchase the asset. Features of operating leases: 1. The lease is cancelable by the leasee prior to its expiration. 2. The lessor provides service, maintenance, and insurance. 3. The sum of all the lease payments by the lesee does not necessarily fully provide for the recovery of the asset’s cost. Features of financial leases: 1. The lease is not cancelable by the lessee prior to its expiration date. 2. The lessee is typically responsible for service, maintenance, and insurance for the asset. 3. The asset is fully amortized over the life of the lease. Financial leases can be divided into two basic forms: 1. Direct lease: In the straightforward arrangement, the firm leases an asset it did not previously own. The firm simultaneously signs the lease agreement with the lessor and orders the equipment from the manufacturer. The lessor pays for the equipment, which is sent to the firm. The firm makes lease payments to the lessor based on a lease agreement worked out by the two parties. If the direct lease is from the manufacturer, then the manufacturer and the lessor are one and the same. 2. Sale and leaseback: In this arrangement the firm sells an asset it currently owns and then leases the same asset from the buyer. Lease payments are set to return the full purchase price plus a rate of return deemed reasonable. The advantage to the lessee is that it allows the firm to continue using the asset while providing cash that can be used elsewhere. It has become increasingly more common in recent years for companies to lease equipment. Each leasing agreement needs to be read through carefully to understand the terms and conditions within said lease. Typically a lease can run anywhere from one to five years. Most equipment necessary in commercial businesses today, including technical equipment, can be leased. Some leases provide an option to then purchase the equipment at substantially less money when at the end of the term of the lease. By leasing equipment, if structured properly, you can maintain your credit availability, as the lease debt does not have to be considered a direct liability on your financial statements. This is advantageous, as it does not limit your ability to borrow from lending sources. Advantages of lease financing: ? It offers fixed rate financing; you pay at the same rate monthly. ? Leasing is inflation friendly. As the costs go up over five years, you still pay the same rate as when you began the lease, therefore making your dollar stretch farther. (In addition, the lease is not connected to the success of the business. Therefore, no matter how well the business does, the lease rate never changes. ) ? There is less upfront cash outlay; you do not need to make large cash payments for the purchase of needed equipment. ? Leasing better utilizes equipment; you lease and pay for equipment only for the time you need it. ? There is typically an option to buy equipment at end of lease term. ? You can keep upgrading; as new equipment becomes available you can upgrade to the latest models each time your lease ends. ? Typically, it is easier to obtain lease financing than loans from commercial lenders. ? It offers potential tax benefits depending on how the lease is structured. One of the reasons for the popularity of leasing is the steady stream of new and improved technology. By the end of a calendar year, much of your technology will be deemed â€Å"dinosaurs. The cost of continually buying new equipment to meet changing and growing business needs can be difficult for most small businesses. For this reason leasing is very advantageous. Leasing can also help you enhance your status to the lending community by improving your debt-to-equity and earnings-to-fixed assets ratios. There are a variety of ways in which a lease can be structured. This provides greater flexibility so that the lease is structured to best accommodate the individual cash flow requirements of a specific business. For example, you may have balloon payments, step up or step down payments, deferred payments or even seasonal payments. The actual advantages of leasing: The most important reason for leasing remains the tax reason. This advantage exists because firms are in different tax brackets, allowing a firm that can not take full advantage of a potential tax shield to shift such a shield to another firm. If the lease payments are set at proper rate, the firm that does the transferring can benefit, as can the lessor. Although someone has to lose, that someone will be the IRS. Disadvantages of lease financing: Leasing is a preferred means of financing for certain businesses. However it is not for everyone. The type of industry and type of equipment required also need to be considered. Tax implications also need to be compared between leasing and purchasing equipment. You have an obligation to continue making payments. Typically, leases may not be terminated before the original term is completed. Therefore, the renter is responsible for paying off the lease. This can pose a major financial problem for the owners of a business experiences a downturn. ? You have no equity until you decide to purchase the equip ment at the end of the lease term, at which point the equipment has depreciated significantly. ? Although you are not the owner, you are still responsible for maintaining the equipment as specified by the terms of the lease. Failure to do so can prove costly. A lease involving a third party that lends the lessor part of the funds ecessary to purchase the asset to be leased. 1. Equipment manufacturers: Durable-goods manufacturers often establish subsidiary leasing or credit companies. One of the main reasons that manufacturing companies provides lease financing is to encourage the use of their product. 2. Financial institutions: Banks, bank holding companies, and life insurance companies. These institutions are heavily involved in long-term financial leases. From their standpoint, leases are merely a secured lending. 3. Independent leasing companies: This provides much of the direct leasing. The financing effect: It is a form of borrowing. The contractual agreement on the lease payme nts is no cancelable. Therefore as other types of debt, failure to make the lease payments can result in bankruptcy. Both lessors and lessees generally, and correctly, view a financial lease as a form of borrowing. Leasing is similar to debt; it has an impact on the amount of borrowing a firm can do. Generally, the more a firm leases, the less it can borrow. This debt displacement is an implicit cost of leasing. The tax effect: For tax purposes, the lease is entitled to a full deduction of all qualified lease payments. Therefore, like other forms of borrowing, the government subsidizes the cost of leasing. The reporting effects: Leasing used to be referred to as off-balance sheet financing. Under rior accounting practices, because the firm did not own the asset, neither the asset nor the companion lease liability had to appear in the body of the balance sheet. A footnote reference, often a very terse one, was sufficient. The superficial effect was to understate the firm’s indebtedness position. Les see reporting: The capitalized value of capital leases and their companion liabilities are put in the body of the lessee’s balance sheet. These capitalized values are the present value of the lease payments. Thus the present value of the lease payments appears on the right-hand side of the balance sheet as a liability and on the left-hand side as an asset. [pic] ULC was established in 1989 as a public limited company, to cater the investment needs of our economy. ULC provides lease financing facilities to all market segments of customers, Small & Medium Enterprises, Commercial Houses, Large Corporate organizations. Under Lease financing They provide; ? Industrial machinery and motor vehicles at concessionary term. ? Machinery and Furniture for Hospital use. ? Truck or Bus for Transportation. ? Equipment or Furniture for Official use. Delta Pharma Limited (DELTA PHARMA) has been propelling steadily towards its goal (Better Care†¦ Better Cure†¦ ) since its launch on November 21, 2004. It is a public limited company. Vission The vision is to reach a level of excellence in pharmaceuticals through a sustained effort to quality assurance and to achieve a global standard through the indoctrination of a culture of excellence. Mission Our mission is to benefit people and improve their quality of life through our quality products. As a generic company, our growth is closely knitted to the satisfaction of our customers. We would like to ensure customer satisfaction through providing quality medicine at affordable cost, launching new molecules & expediting export to all possible avenues. We are committed to achieving our goal through skilled, creative, and motivated employees. ULC agrees to lease a drug manufacturing machine to Delta pharma company on January 1, 2010. ULC has added following information in the contract: 1. The lease agreement is noncancellable in nature with 6 years time period. 2. There will be no renewable option after lease term. 3. The cost of the machine was tk. 245000 and the fair value of the machine at January 1, 2010 is tk. 245000. 4. Machine will be reverted to the leesor at the end of this term at which time the machine will have scrape value worth tk. 43622 which is ungurrenteed. 5. Delta Pharma will bear the responsibility all executive cost. 6. ULC requires equal rental payment annually beginning January 1, 2010. 7. Collectability of the lease payment is reasonably predictable. There are no uncertainties surrounding the amount of costs yet to be incurred by the ULC. Required calculation by ULC Rental payment calculation Fair market value of the leased asset to lesor tk. 245000 Less: Present of the ungurenteed residual value tk. 24623. 31 (43622X. 56447) Amount to be received through lease payment tk. 220376. 69 Six periodic lease payment (tk. 220376. 69/4. 79079) tk. 46000 United Leasing Company (Lessor) Lease Amortization Schedule Date |Annual lease payment plus |Interest on lease |Recovery of lease |Lease receivable | | |URV |receivable |receivable | | |1-1-10 | | | |245000 | |1-1-10 |46000 | |46000 |199000 | |1-1-11 |46000 |19900 |26100 |172900 | |1-1-12 |46000 |17290 |28710 |144190 | |1-1-13 |46000 |14419 |31581 |112609 | |1-1-14 |46000 |11261 |34739 |77870 | |1-1-15 |46000 |7787 |38213 |39657 | |1-1-15 |43622 |3965 |39657 |0 | Journal entries for ULC Journal entries given by the United Lea sing Company for the first two years: Date |Journal |Amount(tk) | |1-1-10 |Lease receivable†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦. Dr |245000 | | |Equipment†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Cr |245000 | |1-1-10 |Cash†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. Dr |46000 | | |Lease Receivable†¦Ã¢â‚¬ ¦ Cr |46000 | |12-31-10 |Interest Receivable†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. Dr |19900 | | |Interest Revenue. †¦.. Cr |19900 | |1-1-11 |Cash†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. Dr |46000 | | |Lease Receivable †¦Ã¢â‚¬ ¦Cr |26100 | | |Interest Receivable†¦. Cr |19900 | |12-31-11 |Interest Receivable†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. Dr |17290 | | |Interest Revenu†¦Ã¢â‚¬ ¦. †¦. Cr |17290 | Findings Analyzing this report we have come to terms: 1. Lease plays an important role for business. 2. Easy for business to get lease. 3. Lease agreement may contain less restrictive provisions than other debt agreement. 4. Business finds leasing cheaper than other forms of financing. 5. Business does not report an asset or liability for the lease agreement for financial reporting purposes. 6. It is a contractual agreement. 7. It may be cancellable or no cancellable. 8. Leasing provides business an opportunity to transfer tax benefit to another party. The leasing market is becoming more competitive because of the new leasing companies are entering the market. However, There are still leasing companies are doing well. The political stability and overall economic development is an essential precondition of the smooth growth of this sector. If we can ensure these two preconditions, the leasing sector of Bangladesh would be able to perform a strong role in our industrial development. If we disuses more and more about lease financing, and if we try to spread it among our general public about its advantages, we will go clearly ahead. It is very favorable to apply lease financing in Bangladesh. From above discussion, it is clear that, in many sectors lease financing is better than other financing. If we know about lease financing properly, we can use or we can avail all the advantages of lease financing where other financing is not favorable for us. 1. Brigham, E. F. and M. C. Ehrhardt. 2001. Financial management: Theory and practice. 10th Edition. Singapore. South- Western. 2. Bhole, L. M. 1992. Financial Institutions and Markets: structure, growth and Innovations. 2nd Edition. New Delhi. Tata- McGraw-Hill Publishing Company. Evaluation of students’ performance; 3. Horne, J. C. 1999. Financial Management and Policy. [pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic] ———————– Bibliography 05 06 07 07 07 08 09 11 13 18 21 22 22 1. Acknowledgement 2. Executive Summary Background of the report Objective of the report Methodology and sources of information 3. Introduction 4. Lease Financing 5. Advantage and disadvantage of leasing 6. Sources of lease financing 7. A lease contract 8. Findings 9. Conclusion 10. Bibliography TOPIC PAGES A Report on Lease Financing Conclusion The effects of leasing on the firm: A Lease contract of United Leasing company with Delta Pharma Limited Sources of lease financing: Leveraged lease: Advantages and Disadvantages of Lease Financing for Businesses Lease Financing [pic] (Lessee) [pic] (Lessor)