Civil Enforcement Against Senior Bankers

Civil Enforcement Against Senior Bankers Civil enforcement against senior bankers for the financial failure of the institutions that employ them has been quiet in the United Kingdom before the global financial crisis in 2007. However, this unpleasant event that happened in the period between 2007 and 2009 directly displayed the weaknesses of senior management in the financial sector. Risk-taking management decisions, market misconduct and mis-selling practices are the common malpractices in the financial sector. Gradually, this problem which is caused by weak governance and misbehaviour has become more and more serious. There is a quote from an article stating this kind of problem as nothing so concentrates the mind as an urgent and complex problem.[1] However, generally, senior managers at financial institutions are typically incentivised in ways that lead them to underestimate risk-taking from the perspective of the firms other constituencies because they put the institutions profit in the first place. This can result in a failure to identify or fully appreciate in particular the correlation between low-probability risk and firm integrity.[2] Hence, it may not be best dealt with by enforcement against senior bankers.[3] As we know, a decision to be made equally for the best interest of the financial institution and the public is difficult. However, since weak governance appeared to be a problem for the fairness and transparency of the financial sector, it has to be addressed as soon as possible. Before determining whether the law is taking sufficient measures in addressing this senior management problem, we should first proceed to look at previous cases of the banks in the UK which failed in the global financial crisis. First and foremost, Northern Rock, which was a mortgage lender with a large market share, operated on a risky originate-to-distribute business model which relied on short-term money market funding to finance its extensive mortgage writing business. However, it went into trouble when the money markets dried up owing to subprime mortgage defaults in the United States. Then the Financial Services Authority (FSA) produced a report reflecting upon what went wrong at Northern Rock.[4] Certain doubts were voiced regarding the chairman of the board and the chief executive in terms of their competence and decisions made. However, neither individual has been subject to any individual liability under the law. Thus, this reflects that the law was not having a consolidate d structure to deal with individual liability in decision making. Next, the Royal Bank of Scotland teetered on the brink of failure in early 2009. It had been growing aggressively through large-scale acquisitions, such as of National Westminster Bank in the UK in 2000.[5] In May 2007, Fred Goodwin, who was the Chief Executive Officer of the Royal Bank of Scotland Group between 2001 and 2009, led the bank to acquire the Dutch bank ABN-AMRO, over-bidding for it in order to edge its rival Barclays out of the race.[6] The deal was completed deal quickly without adequate due diligence carried out on ABN-AMROs assets. This action was severely questioned by the media at that time.[7] By early 2009, the bank faced significant losses due to the absorption of losses from ABN-AMROs extensive securitised assets portfolio. This acquisition was proved not a good move. However, although the Financial Services Authority criticised the senior management for poor risk decisions and governance culture in its report on the Bank, no individual has been subject to any i ndividual liability under the law again.[8] In addition, Halifax Bank of Scotland, in fact, was a casualty of the global financial crisis because the crisis crystallised the failure of an already dangerous business model.[9] The bank had been underwriting corporate loans with poor due diligence and standards in order to pursue rapid growth and expansion. The Parliamentary Commission looked into the banking standards and criticised the chairman, the chief executive and a number of board members. However, only one individual, Peter Cummings, the director of the corporate finance division who led the business into writing enormous sums of bad corporate loans, was fined and disqualified by the Financial Services Authority.[10] No other individual has been subject to any individual liability. Hence, these previous cases show that the legal structure in this area was not competent to act as a deterrence and raise awareness of the senior bankers in making careful decisions in the best interest of the public. After the global financial crisis, several conduct scandals were revealed in the financial sector. Significant banks in the UK such as Barclays were fined in significant amounts for rigging the London Inter-bank Offered Rate.[11] The Financial Conduct Authority (FCA), together with other international regulators, also subjected a number of banks, including Barclays and RBS, to record fines over foreign exchange market-rigging.[12] The Salz Review[13], which revealed unhealthy sub-cultures in the large and complex structures at Barclays, also raised interesting questions. Question arises as to what extent senior management and the board should be responsible for the polluted banking culture as organisational pyramid shows the decisions are often made at the top.[14] The harms caused by malpractices in the banking sector are not only individual losses, but also damaging market confidence and integrity. Good corporate governance matters. It persuades, prompts and encourages institutions to preserve the honesty and integrity of key promises made to investors and the public.[15] In the aftermath of the global financial crisis, we can notice that many affected banks underwent senior management changes. In fact, the general consensus of all key reports is that the economy would have had stronger chances of survival had there been more professionalism among executives, better corporate governance structures and more ethical behaviour within the banking sector.[16] However, new management is unlikely to have significant effect on the current posed problem if the law is still lacking sufficient supervision in this area. In relation to this, Singapore, one of the world leading financial centres, recognises that a regulatory framework that is sound, strong and in line with the practices of leading jurisdictions is fundamental to achieving a thriving and liquid market.[17] We should now proceed to look at the development of the law in this area. In fact, the regulation of banking in the UK began with informal controls by the Bank of England and was eventually placed on a statutory basis by the Banking Act 1979. The following decades saw the passing of the Banking Act 1987 which increased the Bank of Englands regulatory and supervisory powers. As the UK did not have any special regime for dealing with banks in financial difficulties, a temporary Banking (Special Provisions) Act 2008 was passed to enable the resolution of problems. That Act was then replaced by the Banking Act 2009. After that, Financial Services Act 2010 was passed which amended Financial Services and Markets Act 2000 by strengthening the powers of the FSA and giving it a financial stability objective.[18] In July 2012, following a series of banking scandals culminating in the LIBOR findings, the UK instituted a Parliamentary Commission comprising both Houses to inquire into how banking culture could be changed for good.[19] The Parliamentary Commission was of the view that individual standards are key to enhancing banking culture and hence enhanced regulation of individuals must be introduced to change banking for good.[20] The Parliamentary Commission proposed enhanced regulatory liability for senior persons and employees performing any function that could harm the bank, as well as a special criminal liability regime for senior persons who have recklessly mismanaged a bank.[21] In relation to the above, the Financial Services (Banking Reform) Act 2013 has adopted many of the Parliamentary Commission recommendations. This Act has been lauded by the Treasury as the biggest reform to the UK banking sector in a generation, which will help to increase conduct standards among bankers.[22] This Act can be seen at the heart of system-focussed reforms designed to increase overall resilience of the UK financial system to future shocks and instability, as much as it can be seen in initiatives designed to strengthen the liability of individual actors operating within the overall financial system.[23] However, the Financial Services (Banking Reform) Act 2013 is also said to be a missed opportunity to increase the accountability of senior bankers for the financial failure of the institutions that employ them. In fact, individual liability is governed under Section 36 of the Act.[24] We can examine this issue by viewing it from two perspectives. We should first look at the express meaning and purpose which the Act wishes to carry out by its wordings. From the Act, we can see that Section 36 provides a jurisdiction to prosecute misconduct in the financial services sector. However, this jurisdiction is quite broad. This can be seen in Section 36(1)(a)(i) and (ii). It states that the senior manager either needs to have taken a decision or have agreed to the taking of a decision. Besides that, the senior manager has the duty to take steps he or she can in order to prevent such a decision being taken. The Parliamentary Commission on Banking Standards (PCBS) in its June 2013 final report concluded that mismanagement and failure of control lie at the heart of standards and culture in banking.[25] However, it seems that Section 36 is only intended to deal with the process of making reckless decision while managing the financial institution. Furthermore, the Act has a number of limitations. First, S stated in the Act must be a senior manager or an authorised person who is carrying out a senior management function, which is stated in S.19(2) of the Act.[26] In fact, many organisations have delegated authority now and so, this will narrow down the ambit of the offence. There is one problem in accessing this jurisdiction identified by the Commission is that managers of varying levels can communicate preferences that give rise to a risk without directing subordinate employees explicitly. For example, this was displayed in the London Interbank Offered Rate rigging scandal.[27] In relation to this, the law provides the provision where the senior bankers have the duty to take measures in order to prevent reckless decisions. Nevertheless, this 2013 Act still has its limitation to prosecute senior managers who are experienced and have become adept at encouraging reckless misconduct. Besides that, the Act states that S needs to be aware of a risk that the decision in question may cause the failure of the financial institution. This may be unfair to criminalise the actions of a decision-maker who did not appreciate or actually foresee a risk. The decision must actually bring the financial institution to the risk of failure, not only risk causing losses to the bank. In addition, there is no single definition of conduct risk available. There are different definitions in use, depending on the emphasis, the causes and the impact.[28] This will make the Act seem vague in this sense. The scope of the offence is limited further by the causation clause in Section 36 (1) (d) which states that the implementation of the decision causes the failure of the group institution. Failure in this context means is interpreted in three ways. First, the institution becomes insolvent. Second, any of the stabilisation options in Part 1 of the Banking Act 2009 is satisfied by the financial institution in question. Third, the financial institution is taken for the purposes of the Financial Services Compensation Scheme to be unable or likely unable to satisfy claims made against it. Practically speaking, it is very difficult to prove or to bring actions under the law. In the article titled Criminalising Bank Managers, Professors Julia Black and David Kershaw from the London School of Economics identified the difficulties faced by the drafters of the new legislation.[29] In fact, the law has to be broad enough to provide a solid deterrent to individual liability and also to satisfy public demand for accountability. However, it cannot be legislated too widely which would possibly allow senior bankers to benefit from the loopholes of the law. In fact, it can be said that the criminal sanction provided by the Act delivers an important message and acts as an alarming notice for the banking sector. Apart from that, question arises here as to whether the law achieves its purpose practically. The exact purpose of the law in this area is said to be difficult to be achieved practically. The practical problem of the Act is that Section 36 is seemed to be a legal framework on how the law and sanction will operate because the possibility of successful prosecution is quite remote. Indeed, the Commission stated in its final report that it would not be easy to secure convictions for the offence. However, the Commission felt that the provision should be created to give pause for thought to the senior officers of UK banks. There are two main reasons affecting the practicality of the law in this area. First, there is the matter of causation. In order to establish liability, the senior manager must cause or his decision results in the institutional failure. In other words, it has to be proved beyond reasonable doubt that the senior banker causes the failure of the financial institution. As we know, most of the business failures are often caused by a combination of factors. In any prosecution, as stated above, establishing that the decision of a senior manager cause the failure of a bank will be difficult. Financial institutions such as banks are often large organisations, and failure of the bank is not usually caused by only an individual, but a combination of different factors. Hence, it is quite difficult to prove that the bank failure was due to a specific decision by an individual, if not impossible.[30] In fact, the government argued that causing the banks failure should be interpreted as having significantly contributed to the failure during the Parliamentary debates on the b ill. However, this interpretation is unsupported by a plain reading of the Act. Hence, establishing causation in fact and in law successfully might be very difficult practically. Secondly, it also appears to be difficult that the senior manager is aware of the risk that the implementation of a decision may lead to bank failure as it is full of uncertainties in the financial sector. Besides that, the Act states that his or her conduct fell far below what could reasonably be expected of a person in their position. In fact, the doctrine of reasonableness can have different outcomes owing to different circumstances. For example, if there is an imminent bank failure, a senior manager is reasonably expected to take responsive but difficult decisions under pressure. This will cause proving the necessary mental element of the offence become very complicated. Besides that, misconduct or risk-taking decisions at one bank spreads across the sector, as the behaviour comes to be seen as the market norm and no bank wants to miss the extra earnings from the practices. Therefore, it is difficult to apply the reasonableness test on senior bankers since a lay person may not kn ow the actual reason behind certain decisions made in that position. The idea of how these situations will be decided can only become clear when it comes to the court. Apart from that, in determining a potential prosecution under this Act, investigations on the issues are likely to require a high degree of access to the financial institution records. This may appear to be a heavy burden for the financial institution in question. In the absence of sufficient evidence or information on what actually causes the banks failure, this will be a waste of time for the authorities and the financial institution. In addition, if the investigating authority wishes to investigate on every person involved in the senior management decision, this action requires a certain amount of time which might take months or even years. It would be even worse for a financial institution which does not have proper records of its major decisions. Besides that, it should be noted that not every decision is made at the general meeting. Therefore, an investigation may use up management time.[31] By looking at the nature of the Act, the new provision criminalises individuals actions by holding them responsible for having caused the banks failure. However, the process of decision-making in large financial institutions is usually a collaborative process with several inputs from various senior managers or people sitting at the top level of the institutional pyramid. As stated above, an investigation on this issue would possibly consume few months or years and this may disrupt the continuing management. In relation to the above, it shows that the laws must be clear and simple for people to follow. Laws that are overly vague or complex and technical do not encourage compliance as they are too difficult to interpret and comply with.[32] Practically, this new offence has its limitations in finding senior bankers liable for making risky decisions because risk-taking is the spirit of the financial sector. For example, in many capitalist societies, risk-taking is seen as a necessary part of business and it is hard to prove wrongdoing.[33] Therefore, this illustrates that Section 36 may seem to be a paper tiger which is enacted more for symbolic than actual punitive effect.[34] Apart from that, the law has another way of addressing senior bankers liability besides merely applying the 2013 Act. The Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) have published the final approach to improve individual accountability in the banking sector. The Senior Managers Regime will ensure that senior managers can be held accountable for any misconduct that falls within their areas of responsibilities, while the new Certification Regime and Conduct Rules aim to hold individuals working at all levels in banking to appropriate standards of conduct.[35] This has come into force on 7 March 2016. In fact, the new UK Senior Managers Regime (SMR) has the potential to rebalance these incentives. It is the product of a two year process led by a parliamentary commission tasked with addressing widespread misconduct at banks. The commission identified the lack of personal consequences for individuals as a root cause of repeated bad behaviour by institution s.[36] Under the SMR, an individual is guilty of misconduct if the regulators are able to show that there was a failure by a relevant authorized person in an area for which that individual senior manager was responsible.[37] Clearly, all centrepiece reforms of the Financial Services (Banking Reform) Act 2013 can be related to culture as it is currently understood by regulators: as a set of attitudes, values, goals and practices which together determine how a firm behaves à ¢Ã¢â€š ¬Ã‚ ¦[38]; and also by academic scholars: as the subsistence and transmission of behaviours and beliefs which characterise particular social or economic groupings within and beyond these groupings.[39] From the above, we can see that the Financial Services (Banking Reform) Act 2013 can be seemed to act as a reminder or notification for the senior bankers not to make extremely risky decisions. And by having this legislation, senior bankers and those who are responsible for making decisions would be more cautious in future decision making. However, practically speaking, it is difficult to be accessed as the financial or banking sector are full of uncertainties. No one can foresee the potential risk hidden in every decision made a nd no one should be blamed if the decision is made in the best interest of the institution. In short, a powerful mechanism to promote desired behaviour is to ensure that senior managers of the banks and their counterparties are aware of the possibility of the systemic implications of their actions such as aware of the possibility of their failure, and therefore the need to be concerned about that risk.[40] Banks safety and soundness are key to financial stability, and the manner in which they conduct their business is central to economic health. Governance weaknesses at banks, especially but not exclusively, those which play a significant role in the financial system, can result in the transmission of problems across the banking sector and into economies in outlying jurisdictions. Thus, effective and sensible corporate governance is critical to the proper functioning of the banking sector and the global economy.[41] In conclusion, the presence of this new offence may be seemed as a political tool to comfort the public after the global financial crisis which has no real and practical impact on individual liability. However, this Act will anyhow act as a general framework for senior bankers in their financial institutions to re-examine their decision making processes and to ensure that they comply with the highest standards of transparency. Someone may argue that strict rules or legislation might stop attracting talents into the financial sector. However, if they are not prepared to be bound by the legislation, they are clearly not the people who can bring huge impact to the financial sector and consequently the national economy. BIBLIOGRAPHY Books Ellinger E. P., Lomnicka E and Hare C. V. M, Ellingers Modern Banking Law (5th edn, OUP, Oxford 2011) Articles A Minto, Misconduct in banks: approaching the issue from a systemic perspective (2016). A Salz, The Salz Review: An Independent Review of Barclays Business Practices (2013). D Arsalidou and M Kambria-Kapardis, Weak corporate governance can lead to a countrys financial catastrophe: the case of Cyprus (2015). F. Hilmer, Strictly Boardroom: Improving Governance to Enhance Company Performance (1993). FCA, FCA publishes final rules to make those in the banking sector more accountable (2015). Financial Stability Board, Peer Review Report on Risk Governance (2013). FSA, Final Notice against Peter Cummings (2012). FSA, The Failure of the Royal Bank of Scotland: Financial Services Authority Board Report (2011). FSA Board, The Failure of the Royal Bank of Scotland (2011), para.581. FSA Internal Audit Division, The Supervision of Northern Rock: A Lessons Learned Review (2008). G Wilson and S Wilson, Banking and regulation post-crisis: the significance of culture in the UK and experiences from Australia (2016). Hall and du Gay (eds), Questions of Cultural Identity (1996); and Williams, Culture and Society: 1780-1950 (2013). House of Lords and House of Commons, Changing Banking for Good (12 June2013), Vol.I, para.116 House of Lords and House of Commons, Changing Banking for Good (12 June 2013), Vol.II, paras 632-634 House of Lords and House of Commons Parliamentary Commission on Banking Standards, An Accident Waiting to Happen: The Failure of HBOS (2013). Iris H.-Y. Chiu, Regulatory duties for directors in the financial services sector and directors duties in company law: bifurcation and interfaces (2016). J Black and D Kershaw, Criminalising Bank Managers (2013). J. Gapper, Trading Floor Culture no longer Acceptable (2012). J Stainsby and K Anderson, Making individuals accountable: new regulatory frameworks for banking and for insurers (2015). L.A. Bebchuk, A Cohen and H Spamann, The Wages of Failure: Executive Compensation at Bear Stearns and Lehman 2000-2008 (2010). M S. Kenney, A D. Moglia and A Stein, Fraudsters at the gate: how corporate leaders confront and defeat institutional fraud: Part 1 (2016). Parliamentary Commission on Banking Standards, Changing Banking for Good (2013). Singapore Parliamentary Debates, Securities and Futures Bill (5 October 2001) Vol.73, cols 2127-2128. T Hallett, Symbolic Power and Organizational Culture (2003). V. K. Rajah SC, Prosecution of financial crimes and its relationship to a culture of compliance (2016). Official Published Sources J. Macey, Corporate Governance: Promises Kept, Promises Broken (Princeton University Press, Princeton, NJ 2008). Electronic Sources BBC News, NatWest Takeover Battle accessed 26 March 2017. BBC News, RBS Secures Takeover of ABN Amro accessed 26 March 2017. The Independent, Was ABN the worst takeover deal ever? accessed 26 March 2017 C Coltart, Banking act is a paper tiger, The Law Society Gazette accessed 26 March 2017. D Gilroy, Banking Reform Act 2013, a good idea with poor implementation accessed 27 March 2017. L Hodges, Jail bankers for failure? The new criminal offence is an unworkable paper tiger accessed 27 March 2017. Norton Rose Fulbright, Criminal liability for senior bankers accessed 27 March 2017. R Burger and M Bonnell, Individual Accountability in Banking and Finance

Factors Influencing Individual Behaviour in an Organization

Factors Influencing Individual Behaviour in an Organization Q. (a) how do individual differences and environmental factors influence human behavior in an organization? Justify your answer with examples. (b) A manufacturing company making automotive parts finds that workers working on the assembly line have poor attendance, leave for home early and are generally unproductive. They are fully unionized and resist any attempts by management to discipline them. If you are the HR Manager of such a company, what would you do? Discuss with reference to theories of motivation, leadership, participative management and quality circles. Organizational Behaviour: Is a field of study which explores the impact that individuals, groups and structures have on behaviour within organizations for the purpose of applying such knowledge towards improving organizations effectiveness. Importance of Organization behaviour: OB is going to explain the cause-and effect relationship to modify behaviour for organizational needs. Here no two human beings will behave in an identical manner. OB seeds to explore certain consistencies in behaviour, in order to promote a rational understanding of behaviour and some degree of predictability. Approaches in Organizational Behaviour: Factors Influencing Human Behavior In order to address human factors in workplace safety settings, peoples capabilities and limitations must first be understood. The modern working environment is very different to the settings that humans have evolved to deal with. The following human characteristics that can lead to difficulties interacting with the working environment. Attention -The modern workplace can overload human attention with enormous amounts of information, far in excess of that encountered in the natural world. The way in which we learn information can help reduce demands on our attention, but can sometimes create further problems Perception -In order to interact safely with the world, we must correctly perceive it and the dangers it holds. Work environments often challenge human perception systems and information can be misinterpreted. Memory -Our capacity for remembering things and the methods we impose upon ourselves to access information often put undue pressure on us. Increasing knowledge about a subject or process allows us to retain more information relating to it. Logical reasoning -Failures in reasoning and decision making can have severe implications for complex systems such as chemical plants, and for tasks like maintenance and planning. Environmental, organizational and job factors, in brief, influence the behavior at work in a way which can affect health and safety. A simple way to view human factors is to think about three aspects: the individual, the job and the organization and their impact on peoples health and safety-related behavior. Following figures shows that all three are interlinked and have mutual influence The typical examples of immediate causes and contributing factors for human failures are given below: Individual factors low skill and competence level tired staff bored or disheartened staff individual medical problems Job factors illogical design of equipment and instruments constant disturbances and interruptions missing or unclear instructions poorly maintained equipment high workload noisy and unpleasant working conditions Organisation and management factors poor work planning, leading to high work pressure lack of safety systems and barriers inadequate responses to previous incident management based on one-way communications deficient co-ordination and responsibilities poor management of health and safety Poor health and safety culture. It is concluded that the performance of human is being strongly influenced by organizational, regulatory, cultural and environmental factors affecting the workplace. For example, organizational processes constitute the breeding grounds for many predictable human errors, including inadequate communication facilities, ambiguous procedures, unsatisfactory scheduling, insufficient resources, and unrealistic budgeting in fact, all processes that the organization can control. What is Perception? How we view and interpret the events and situations in the world about us. FACTORS INFLUENCING PERCEPTION: Perception is influenced by mainly three sets of factors: i) Factors in the perceiver (perceiver variables); ii) Factors in the target (subject characteristics); iii) Factors in the situation (situational variables). Factors in the perceiver include following issues: Self-concept of the perceiver; Attitudes of the perceiver; Motives of the perceiver; Interests of the perceiver; Experience of the perceiver; Expectations of the perceiver. Factors in the target include following issues: Physical appearance; Verbal and Nonverbal Communication; Status; Occupations; Personal characteristics; Novelty of the target; Motion of the target; Sounds of the target; Size of the target; Background of the target; Factors in the situation include following issues: Social context; Organisational role; Work setting; Location of event; Â  Time. Collectively, these three sets of factors determine our perceptions about others. (b) A manufacturing company making automotive parts finds that workers working on the assembly line have poor attendance, leave for home early and are generally unproductive. They are fully unionized and resist any attempts by management to discipline them. If you are the HR Manager of such a company, what would you do? Discuss with reference to theories of motivation, leadership, participative management and quality circles. Motivation: Motivation: The process that account for an individuals intensity, direction and persistence of efforts towards attaining a goal. Needs + Droves + Incentives Types of motives: Primary motives: Some motives are un learned physiologically based such motives are termed as physiological, biological, un learned or primary motives. Ex: Hunger, Thirst, Sleep, Sex, Avoidance of Pain, Maternal Concern General Motives: Number of motives, which can neither, be classified as primary, or secondary that can be referred to as general motives. Motive must be unlearned but not physiologically oriented. Ex: Curiosity, Manipulations, Activity Motives, Affection motives, Love, Concern, Feelings. Secondary Motives: Quite a few important human motives fall in this category. The important motives of Power, achievement, and affiliation are all secondary motives. Leadership: Leadership can be defined as the ability to influence a group towards, the attainment of pre-determined goals. Traditional Theories of Leadership: Trait Theories Differentiate leaders from non-leaders by focusing on personal qualities and characteristics Extraversion has strongest relation to leadership Conscientiousness and Openness to Experience also strongly related to leadership Agreeableness and Emotional Stability are not correlated with leadership. Behavioral Theories Behaviors can be taught traits cannot Leaders are trained not born Maslows Need Hierarchy Selfactualization Needs Self-esteem Needs Social Needs or Belonging and love and affection needs Security Needs Physiological Need or Basic Needs According to Maslow, certain concepts are relevant for understanding the needs. They are pre-potency, deprivation, domination, gratification and activation. Pre-potency is the strength associated with the needs. Physiological needs have greater pre-potency. Deprivation is the perception of an obstacle for satisfaction of a need. Thus, deprived need has high pre-potency. Domination is attaching importance to a need. A deprived need dominates the individual. In order to reduce dissonance associated with the deprivation, individuals try to gratify by undertaking some action. Therefore, gratification is the satisfaction of the need. Gratified need does not dominate. At the end, activation of need determine motivation. Need satisfaction activates the needs from one level to next higher levels. Maslow believes that these repeat as a cycle until the highest level need is satisfied. Based on the concept Maslow identified five categories of needs and their role in motivating individuals. They are described below: 1) Physiological Needs: Basic and primary needs required for human existence are physiological needs. They relate to biological and are required for preservation of basic human life. These needs are Identified to the human organ in the body. They are finite needs. They must be satisfied repeatedly until human beings die. They are not associated with money alone. They are hunger, thirst, sleep, shelter, sex, and other bodily needs. The proposition relating to the basic needs is that they are primary motivators to any individual and once they are satisfied, they no longer motivate. The next level need becomes important for satisfaction until the basic need is dormant. Provision of adequate monetary rewards to satisfy these needs motivate employees in organisations. 2) Safety Needs: Individuals seek protection from natural environment, biological danger, economic deprivation and emotional threat from other beings and animals. For this purpose, he wishes security for himself. The protection may be in the form of seeking a shelter and forming into primary groups to combat threat from the natural beings. The motivational proposition are that the safety needs dominate as soon as physiological needs are satisfied, and after individual seeks to satisfy fairly the security needs they do not motivate him. In order to motivate employees, organisations provide fringe benefits, health and accident insurance, housing loans, etc. 3) Social Needs: Basically individual is a social being. He cannot live in isolation and silence. Thus, he intends to establish relationship with other human beings and some times wish to rear animals. Social needs emerge from the basic urge of individuals to associate, belong with others, make friendship, make companionship, desire to be accepted by others and seek affection. These needs are secondary in nature. The propositions relating to social needs are that these needs are satisfied by symbolic behaviour and through physic and psychic contact with others in the society. They are substantially infinite and exist until the end of human life. Organisations should provide scope for formation of informal groups, encourage working in teams, and provide scope for interpersonal communication, interpersonal relationships and interpersonal understanding to motivate employees. 4) Esteem Needs: Maslow believes that people seek growth. They have natural desire to be identified and respected by others. This instinct is called as esteem. Esteem needs are associated with self-esteem and esteem from others. The need for power, self respect, autonomy, self confidence, achievement, recognition of competence, knowledge, desire to have freedom, status and secure attention of others, appreciation are some of the esteem needs individual wishes to satisfy. Maslow identified them, as higher order needs. The nature of esteem needs is that they are dormant until basic, security and social needs are fairly satisfied. Satisfaction of esteem needs produce a feeling of self-confidence, strength, capability and adequacy in the individuals. 5) Self-actualization Needs: Self-actualization is transformation of perception and dream into reality. Individuals have inner potential to do something different from others. Realising the full inner potential, one wishes to become what he is capable of becoming. Attaining to the level of fulfilment of selfactualization needs is a difficult task as individuals are not clear about their inner potentials until an opportunity is perceived. Moreover these needs change with a change in human life. The intensity of self-actualization changes over life cycle, vary from person to person and environment. The following propositions are made about the motivation of individuals based on the Maslow hierarchy of needs. i) Five needs are classified into lower order needs and higher order needs. While physiological, safety and security needs are lower order needs, esteem and self actualization needs are higher order needs. ii) Lower order needs are satisfied externally and higher needs are satisfied internally. iii) Individuals start satisfying lower order needs first and proceed to satisfy higher order needs later. iv) No need is fully satisfied during the life period of individuals. A need substantially satisfied no longer motivates. v) A need when substantially satisfied produces satisfaction and it becomes dormant. Immediately the next level need becomes active. So Individual is continuously motivated to satisfy unsatisfied needs. So, motivation is a continuous process. vi) Satisfaction of lower order needs does not produce contentment. In fact, they produce discontentment to satisfy other needs. vii) Not all individuals have the same priority to satisfy the needs. Priorities differ from country to country and from situation to situation. viii) Individuals are aggressive in the satisfaction of basic needs and unconsciousness demands the satisfaction. However, they use social consciousness in the satisfaction of other needs. Maslows need hierarchy theory of motivation was considered logical and simple to understand human motivation. The theory has received attention of practicing managers as they feel that identification of needs of employees provides an insight to motivate them. This theory suggested that giving same reward more than individuals desire will have diminishing marginal utility. This has specific significance to the practicing manager. Leadership Human Behavior As a leader, you need to interact with your followers, peers, seniors, and others; whose support you need in order to accomplish your goals. To gain their support, you must be able to understand and motivate them. To understand and motivate people, you must know human nature. Human nature is the common qualities of all human beings. People behave according to certain principles of human nature. Human needs are an important part of human nature. Values, beliefs, and customs differ from country to country and even within group to group, but in general, all people have a few basic needs. As a leader you must understand these needs because they can be powerful motivators. Characteristics of self-actualizing people: Have better perceptions of reality and are comfortable with it. Accept themselves and their own natures. Lack of artificiality. They focus on problems outside themselves and are concerned with basic issues and eternal questions. They like privacy and tend to be detached. Rely on their own development and continued growth.

The Stranger and The Guest Essays -- Character Analysis, Daru, Meursau

French playwright Albert Camus once said, â€Å"Nobody realizes that some people expend tremendous energy merely to be normal.† In The Stranger and The Guest the overarching theme that those who do not conform to typical societal values and do not adequately relate to others are appraised as a threat to society as a whole. In both works the protagonists isolate themselves, and society isolates them because of their non-conforming beliefs. Both Daru and Meursault are not able to accept the abstract ideals of society, and prefer isolation. For them relating to the physical world is much easier to relate to because it is concrete and definite, rather than the ambiguity of the moral ideals held by society. As a result of this objection to society they become indifferent and detached from societal expectations, intern this allows both protagonists to defy the rules of society, and expunge their innate flaws. In the Guest, Daru constantly observes the landscape, especially the sun and the snow on the rocky, empty plateau. Daru discusses the burning of the sun â€Å"the earth shriveled up little by little, literally scorched every stone bursting into dust under one’s foot† (Guest 304). Despite the debilitating drought, followed by unhelpful snow around home, Daru does not complain, but instead observes and respects the landscape for being his only home. Daru does not associate his home with family or friends, rather with the physical qualities of it. The schoolmaster is like â€Å"a monk in his remote schoolhouse, nonetheless satisfied with the little he had and with the rough life† (Guest 304). Even though he is isolated and lives in a secluded area, he enjoys the quiet and solitude in which he is liberated from being at a close proximity to s... ...ecause he believes that society’s laws are flawed. Meursault and Daru are both considered outsiders of society because they are not able to understand the other characters in the story. This is because each character represents an aspect of society, like Balducci in the Guest, and everyone in the courtroom in The Stranger represents the law and justice system. Camus uses the actions and words of seemingly unimportant characters to allude to the flaws and problems of society. In both works of Camus, the protagonists view the other characters in the story from an outsider view, allowing for a new perspective in which society and its problems can be assessed by the reader. By making the protagonists detached from society, one can truly see the underlying issues within society. That is why the isolation and alienation of Meursault and Daru are crucial in Camus’ works.

Thoughtful Wedding Speech by the Groom -- Wedding Toasts Roasts Speech

Thoughtful Wedding Speech by the Groom Ladies and gentlemen: I would like to thank the previous speaker for those sincere words and to the bride's parents for the love that they have both shown me, not only in preparation for today, but from the first moment that we met some two and a half years ago. I dont know who was more surprised that first night when my future wife brought me home without warning, when they were sitting there all ready for bed in their satin bath robes and her dad in his Snoopy slippers. Anyway quickly moving on... I did have a speech all worked out for this occasion, but of course now that I'm a married man, my wife has insisted that I read from the one that she has written for me. So here goes: On behalf of my wife and I -I suppose I'm going to have to get used to saying that? I would like to start by thanking everyone here today for sharing our very special day with us. Thank you for all the wonderful gifts and cards that you have given us, we are very touched at your generosity. We have both been very nervous about today and it means a great deal to us that you are sharing our day with us, and we hope that you are enjoying the occasion every bit as much as we are. Most people on their wedding day describe it as the happiest day of their lives. That worries me, because it implies that as from tomorrow there's a lifelong decline ahead, so I`m making the most of today. However, I'm so happy today that even days less happy would still be blissful. I would like to say a special thank you to those of you that have traveled some distance to be here today. It is quite a humbling experience to realize that you have friends and family that care so much for you. And I do genuinely mean that.... ...rything you have done today, and in the build up to the wedding, we have a small gift for you both.(Present gifts) Now before I finish and ask you to join me in a toast. I believe that my lovely wife would like to gatecrash these speeches and say a few words. (The bride?s speech) Thankyou darling. I would like to bring my speech toward a close by saying a very special thankyou to our lovely bridesmaids. I am sure you will all agree on how beautiful they look and I will always treasure the picture in in mind of you both entering the room and walking down the aisle. I would like you to know that your earrings and neck-laces are a token of our appreciation for everything you have done today. On that note. I would like to propose a toast to the bridesmaids, so could you all stand and and raise your glasses and join in as we toast. To the bridesmaids.

Slaverys Coexistence with Other Economic Systems :: A Respectable Trade Capitalism Slavery Essays

Slavery's Coexistence with Other Economic Systems Slavery as economic order based on the ownership and exploitation of human beings as property is widely covered in A Respectable Trade. The film, however, does not solely reveal slavery and its characteristics. It is a film rich in reference to other economical orders as well, because besides elaborately showing from different aspects the processes typical for the establishment of slavery, it touches on and gives examples on economic relationships that are rather characterized as capitalist, feudal or self-employment-related. The action in A Respectable Trade takes place in 1788 in the English city of Bristol, starting with the marriage between Frances Scott and Josiah Cole. Frances, an educated and refined young woman of genteel origin, is left poor and with no inheritance after the death of her father. For lack of a better alternative, she marries the rough and uneducated Josiah who trades with ships, led by the motive to import slaves directly to England, have them educated and polished by his wife, and sell them as house servants at a better price . Josiah is far from successful in his trade: he only manages to import eight slaves and eventually to sell only two of them. However, this is enough to elucidate the main characteristics of slavery as an economic order. The arrival of his slaves, the process of educating them and their final escape represent a peculiar slavery-cycle that elaborates on important economic issues such as the slaves' status, the creation of subservient attitude in them (or at l east the attempt to), the strategies of breaking up their independent spirits, and their resistance. A typical characteristic of slavery is that slaves are considered just another element of the productive resources. They are regarded as property, as chattel, and can be freely sold as such. Never considered human beings with consciousness and will, slaves are often described with the term 'instrumentum vocale', meaning that they are seen just as instruments capable of producing human speech. Naturally, like any human beings, slaves have a consciousness of free and independent people, and it takes time and effort to impose on them an attitude of subservience and obedience, a consciousness of being no longer human beings but enslaved pieces of property. In A Respectable Trade that is achieved in several different ways. Firstly, the slaves are imported by ships to England - extremely far from their homeland, especially in the context of the 18th century. Slavery's Coexistence with Other Economic Systems :: A Respectable Trade Capitalism Slavery Essays Slavery's Coexistence with Other Economic Systems Slavery as economic order based on the ownership and exploitation of human beings as property is widely covered in A Respectable Trade. The film, however, does not solely reveal slavery and its characteristics. It is a film rich in reference to other economical orders as well, because besides elaborately showing from different aspects the processes typical for the establishment of slavery, it touches on and gives examples on economic relationships that are rather characterized as capitalist, feudal or self-employment-related. The action in A Respectable Trade takes place in 1788 in the English city of Bristol, starting with the marriage between Frances Scott and Josiah Cole. Frances, an educated and refined young woman of genteel origin, is left poor and with no inheritance after the death of her father. For lack of a better alternative, she marries the rough and uneducated Josiah who trades with ships, led by the motive to import slaves directly to England, have them educated and polished by his wife, and sell them as house servants at a better price . Josiah is far from successful in his trade: he only manages to import eight slaves and eventually to sell only two of them. However, this is enough to elucidate the main characteristics of slavery as an economic order. The arrival of his slaves, the process of educating them and their final escape represent a peculiar slavery-cycle that elaborates on important economic issues such as the slaves' status, the creation of subservient attitude in them (or at l east the attempt to), the strategies of breaking up their independent spirits, and their resistance. A typical characteristic of slavery is that slaves are considered just another element of the productive resources. They are regarded as property, as chattel, and can be freely sold as such. Never considered human beings with consciousness and will, slaves are often described with the term 'instrumentum vocale', meaning that they are seen just as instruments capable of producing human speech. Naturally, like any human beings, slaves have a consciousness of free and independent people, and it takes time and effort to impose on them an attitude of subservience and obedience, a consciousness of being no longer human beings but enslaved pieces of property. In A Respectable Trade that is achieved in several different ways. Firstly, the slaves are imported by ships to England - extremely far from their homeland, especially in the context of the 18th century.

Impact of Social Advertising in India Essay

Social Advertising is the first form of advertising that systematically leverages historically â€Å"offline† dynamics, such as peer-pressure, friend recommendations, and other forms of social influence. Social media has the power to transform a campaign into a religion. Social Advertising is the media message designed to educate or motivate the Indians to engage in voluntarily social activities. Social media has great potential to influence all corners of the web. It enhances the advertisement useful for the readers and also satisfies the advertisers effectively by reaching the public. This paper explores the impact of social Advertising in India by extracting the data from the public preferences on Social ads. From the collected data, it has been concluded that social ads in India has made incredible awareness and attracted the public towards it. This suggests that social advertising has a positive impact in India. Keywords: Media Message, Social Advertisement, Public prefer ences, Positive Impact. INTRODUCTION: Social Advertising deals with the matters of public interest such as social change, political ideas, economic policies, developmental programmes etc. It is also known as ‘Public Service Advertising’ or ‘Social Advertising’. It promotes the community’s health and well being by ensuring the ads that educate people and create awarness about drugs, diseases and other social prime issues in the country. It is otherwise called as ‘non-product’ advertising also. It means advertising various ideas which are not directly for the promotion or sell of the products or commercial services. Advertisements has become important in today’s current scenario as an indicators for social and economic progress. They enhance the direction of change in our values. In fact, a country without advertisements is inconceivable. Advertising is a medium of mass education and therefore the role it plays should be taken seriously. Advertisers sponsor through cultural, social, sports or other activities or organized programmes related to health, hygiene or education including literacy by free distribution of booklets or other reading material. Free health check up camps also organized in villages by big industries or public sectors. Advertising is made by the advertisers in newspapers, on bill boards, and in the form of short advertisements on television. It creates a awareness about the democratic right of a common man. Social Advertisements operates the corporate social responsibility. The big advertising agencies which are awarded for social services also create advertisement and produce by themselves. It also produce for the Government and their own organization with no profit and no loss basis. Thus, the advertisers in India started to contribute to the development and welfare of the society, but still it has to develop in a long way. Advertising ideas, such as, reduce traffic congestion, improve health, conserve natural resources, plan families, educate girls, increase marriage age etc. serve basic social and economic needs. In India social advertising is in infancy stage. The social and economic welfare of a nation can be mainly attained when harmonious effort of Advertising is reached to the citizens by visualizing them the beneficiary and urge about the social ads. The image of ads are promoted in the public service advertising. Certain campaigns are arranged to promote the Social advertising in India. In India, the social ads are enhanced by popular celebrities. The people in rural areas get attracted more through the ads. They willingly engage these ads in their life and attain benefit out of it. For instance, Amitabh Bachchan come for polio immunisation ads. By viewing this more families take interest in it. According to the AdEx report of 2007, it was found that many of the social ads are promoted by Amitabh Bachchan mainly concentrating on the â€Å"Health Awareness†. Advertising agencies have stated that organisations which are heavily contributing in social advertising, spend minimum of 5 crores in print Advertising. The non-metro city newspapers garnering 56 per cent of the overall social ads. Government organisations as well as NGOs have increased the expenses by 30 per cent over the last ten years owing to the growing economy. This ads create a huge impact on the mass audiences of India. For example, the Tata Tea â€Å"Jaago re† campaign which was aimed at making people aware about exercising right to vote was well received by viewers. In the commercial industry, they talks about individuals needing to broaden with changing times. It shows two friends sitting in a restraunt and one of them tells the other friend to have a look at the gay couple on the other table. So his friend picks up a rolled newspaper and taps him on his head and continues to have his lunch. A punch line then props up saying â€Å"it is time to open our minds†. The above few ads creates awareness to both literate and illiterate citizens in India. REVIEW OF LITERATURE: A review literature can be interpreted as review of an abstract accomplishment. Different authors have pointed out their view of social advertising. It will analyze with the present condition of social advertising. The literature will be in the form of thesis, researchers, academic studies. Srivastava, Vibhava ; Nandan, Tanuj (Jan-Mar 2010) states that advertising plays a significant role in the society. It is stated that it is unethical if the norms and values changes due to the advertising. Ciochetto, L (Nov 2009) describes that before the printing advertising was dominating the industry. But now the social advertising has been dominated by foreign companies and the ads have become more indianised and customized. This has changed the life of middle group and also the rural citizens. The strategy adopted have changed the social and cultural changes. Srivastava, Rajesh Kumar (2010) describes the effectiveness of advertising globally and it also says whether the age, gender, education, religion. The study was made among 1000 respondents. It is limited to India and SARC countries. In overall it says about the persuasion of people for advertsing. Stelios C. Zyglidopoulos; Craig E. Carroll; Andreas Georgiadis describes about the impact of media attention on a firm’s CSR â€Å"strengths† and â€Å"weaknesses.† Drawing on social and organizational identity and stakeholder theory literatures, we develop and test two hypotheses concerning the influence that media attention has on these aspects of CSR. We find that increases in media attention are associated with increases in CSR strengths, but not with CSR weaknesses. Anita Pansari( February 19, 2011 ) has finded that women are dependent in India. They are used for the television ads. Finally she concluded by saying that Asian countries curtural values are not changed like the other nation. Hence Ansian womens are different from the parts of the world. Eric A. Feldman ; Ronald Bayer (Dec 2011) states that the tobacco consumption is injurious to health. Through advertising the rate of tobacco consumption has reduced in the developed countries. Likewise in India also it will have an positive impact on social advertising. Agarwal.A (july 1995) enhance about the awareness of health care social ads in the region of Uttar Pradesh, Bihar, Madhya Pradesh for nearly 28 villages. This study has founded that the exposure of mass media may not be suited without formal and informal systems in the community which can promote health hazards in rural India. Vaidya, S.G., Vaidya, J.S., Naik, U.D (Sep 1999) has evaluated and finded that due to the advertisement for Wills during the series of match had created a negative impact on the youngsters. The ads should not spoil the young lives which may become a major drawback in the future in India. Goenka, S.a, Prabhakaran, D.a, Ajay, V.S.a, Reddy, K.S.b (Aug 2009) describes about the cardiovascular disease and it can affect the population. This can be reduced bt avoiding tobacco . The comprehensive measures for effective prevention of CVD in India are national health imperatives which require multisectoral, multi-level and multi-disciplinary co-ordination and action. CONCLUSION: Social Advertising in India has been growing and it has a greater positive impact on it. It helps all the communities people, rural or urban citizens to attain a worth and useful messages for their better way of living without harmful. It is applicable for both the environment in which the people belongs to and also to the society. Advertising creates awareness to the younger generations who may spoil their lives without knowing the importance of it. The social utility of advertising is to inform society of the existence of products and services which may (or may not) improve the lives of the individuals within that society. Consumers are gaining control over the advertisers, so the advertising companies need to change their strategies. Now regarding the present issue of Assam, it has been stated that due to social network and ads, the information passes very easily to everybody from which they take advantage to misuse it. This may be an disadvantage of social advertising. Social Advertising helps through its network by connecting the people in India. From the study we wanted to conclude that nearly 20% of demerits is there in social advertising and 80% benefit we people attain from it. Hence, In India it has a greater positive impact on â€Å"Social Advertising† REFERENCES: Ciochetto, L (November 2009); Advertising in contemporary India’s rapidly changing media environment ;Media International Australia; Issue 133, Pages 120-129; College of Creative Arts Massey University, New Zealand. Srivastava, Vibhava ; Nandan, Tanuj (Jan-Mar 2010): 61-69; A Study of Perceptions in Society Regarding Unethical Practices in Advertising; South Asian Journal of Management 17.1. Srivastava, Rajesh Kumar; (2010); Effectiveness of global advertisement on culture of India: an emerging market; International Journal of Emerging Markets 5.1; 102-113. Stelios C. Zyglidopoulos; Craig E. Carroll; Andreas Georgiadis( October 24, 2010); Does Media attention drive corporate social responsibility; University of Cambridge – Judge Business School; University of North Carolina (UNC) at Chapel Hill; London School of Economics & Political Science (LSE). Anita Pansari( February 19, 2011 ); A Comparative Analysis of the Roles Portrayed by Women in Indian Television Advertiseme nt; 1980-2009; Icfai Business School. Eric A. Feldman ; Ronald Bayer (Dec 2011); The Triumph and Tragedy of Tobacco Control: A Tale of Nine Nations; Annual Review of Law and Social Science, Vol. 7, pp. 79-100, 2011. Agarwal.A ;(July 1995); Psychology and developing societies; Mass media and health promotion in Indian villages; Volume 7, Issue 2, Pages 217-236. Vaidya, S.G., Vaidya, J.S., Naik, U.D;(Sep 1999); Sports sponsorship by cigarette companies influences the adolescent children’s mind and helps initiate smoking: results of a national study in India. National Organisation for Tobacco Eradication (NOTE), India; Journal of the Indian Medical Association; Volume 97, Issue 9, Pages 354-356, 359. Goenka, S.a, Prabhakaran, D.a, Ajay, V.S.a, Reddy, K.S.b (Aug 2009); Preventing cardiovascular disease in India-translating evidence to action; a) Initiative for Cardiovascular, Health Research in the Developing Countries, New Delhi 110 016, India.b) Public Health Foundation of India, New Delhi 110 016, India; Volume 97, Issue 3, Pages 367-377.

Communism vs. Fascism

Communism vs. Fascism Communism and fascism are at the opposite ends of the totalitarian spectrum. Their major differences lie in their economic and social characteristics, but they do share many similarities in the political aspect. Soviet communism and German fascism are, in fact, very unlike each other, but they affected the people of the Soviet Union and Germany in many similar ways. You can observe how the ideas of communism and fascism differ mainly through their goals, along with other characteristics.Communism pursues international goals, which is shown in Stalin’s strive to push the Soviet Union to be a leading economic power. Fascist leaders pursue goals limited to their own nation. A communist society pushes have no social classes, which is why private ownership of land or property is not supported. Contrarily, fascism is very much class-based, as seen in Hitler’s views of race superiority. Though the goals of these two governmental systems differ very much, the methods used to achieve these goals are remarkably similar. The similarities between communism and fascism lie in their political methods.The most obvious comparison is that they are both dictatorial, one-party governments. Under each government, citizens are expected to be entirely devoted to the state, which glorifies military and war. Their rights are virtually nonexistent, and the media information they see is censored so that they only are aware of what the government wants them to know. In Germany, citizens that didn’t fit the ideal image of the dictator, Adolf Hitler, were sent to concentration or death camps, mainly because the state had the power to do so.Though the ideas and goals of communism and fascism contrast, the methods they use to achieve them are almost identical. Generally, communism and fascism are considered opposite in reference to totalitarianism. They are very different in their economic and social aspects, but they do share similarities in their political characteristics and governing methods. Soviet communism and German fascism are very contrastable, but they affected the people of the Soviet Union and Germany in many similar ways.