Characteristics of Organizational Culture

Organization culture is defined as a system of collective values and beliefs held by organizational members (Argüden 34). As such, organization culture determines how organizational members interact with each other. In an organization, culture comprises of an organization’s values, vision, norms, systems, beliefs, and habits.Advertising We will write a custom assessment sample on Characteristics of Organizational Culture specifically for you for only $16.05 $11/page Learn More Similarly, organization culture comprises of an institution’s collective behaviors and assumptions. When new members join an organization, they are taught how to perceive, think, and feel in every particular situation. Argüden defines organization culture as a habitual and conventional way of thinking and acting (Argüden 42). Every organization has distinct values, secret languages, habits, and myths that have been developed over time. Characteristics of o rganizational culture Several management books have identified numerous characteristics of organization culture (Ashkanasy Celeste 12). Because there are several variables involved, organization culture varies from one organization to the other. According to Cameron and Robert, organization culture can be characterized as values that are passed over to new employees through socialization, influence an individual behavior, and operate at different levels to (Cameron Robert 6). In general, six characteristics of organization culture have been identified. The first characteristic of an organization cultures is that they are collective. Organizational cultures are classified as social entities. This implies that an organization’s leader might exert a cultural influence in a particular organization, but it will necessitate a collective agreement and action for it to be adopted within the organization. Equally, organization culture is attributed to all employees’ behaviors , beliefs, and cultures. Another characteristic of organization culture is that it is emotionally charged. In every organization, employees consider their organizational cultures as comforting refuge blanket that permits them to tackle their insecurities and fears. Usually, employees develop a strong emotional attachment with their organizational cultures. Thorough this, employees have safeguarded their organizational cultures without questioning on their values (Bellingham 32).Advertising Looking for assessment on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The third characteristic of organization culture is that it is historically based. In every organization, mutual experiences over a period bind employees together. Employees tend to associate and identify themselves with other employees who have had similar life experiences. This explains how employees build trust and loyalty, the two key aspects of organizational aspects, by constantly sharing similar experiences through predictable patterns of words and actions. Equally, organization culture can be described as inherently symbolic. Outstanding symbolic actions are the foundations of every great organizational culture. In this regard, if executives want to change the image of its organization they must lead through actions by changing their attributes and actions.  Another characteristic of organization culture is that it is dynamic. In an organization, organization culture enhances conformity, predictability, and stability. However, it should be noted that as people try to relate, communicate, and conform to an organizational cultural changes occur. For instance, a new employee who calls an organization’s executive by his or her first name might be astonished later to note that no one calls the organization’s executives by his or her name. It should be noted that organization culture varies from one organization to the othe r. In every organization, cultures and values can be portrayed through the way employees relate among themselves and with the outsiders. For instance, Etisalat Corporation is reputable for being proud of its employees, stakeholders, and its customers. Their sense of pride is evident from the way employees relate among themselves. According to the company’s spokesperson, their organization culture can be described using one word â€Å"Proud.† Through this organizational culture, every employee at Etisalat aims to be the best in everything they do, to priorities their customers, and always dream big to achieve great rewards. Similarly, Etisalat’s organization culture can be described as respectful. In the organization, employees take care of one other as they would like to be treated and respect each other’s opinions. In addition, the organization’s culture can be portrayed as unique, outstanding, and delivering.Advertising We will write a custo m assessment sample on Characteristics of Organizational Culture specifically for you for only $16.05 $11/page Learn More Based on these attributes, the company has managed to exceed their expectations, come up with innovative opportunities, and ensure that they deliver on their promises. As noted above, Etisalat culture differs from the cultures of other organizations. Through this, the organization has been able to provide a sense of behavior among its employees and customers. The impact of an organization culture and values on leadership Cultural values have an impact on a range of features in an organization. Notably organizational and managerial behaviors are greatly affected by the organization culture portrayed in every organization. For Corporation within several departments, organization culture has intense effects on the organization’s decision approaches and results of these decisions. In every organization, the impacts of organization cult ure are dependent on the cultural structures adopted. According to Handy, organizational cultures are associated with particular structural forms (Frost 123). Based on this argument, culture can be classified into power cultures, role cultures, and task cultures. Power culture refers to a form of culture that depends on a sole source of influence. This form of culture is usually referred to as a spider’s web owing to its concentration of power at the center (Frost 123). The power culture is popular among small business organizations. Usually, the prevailing power and influence are accredited to a single person or a power clique comprising of a small number of individuals. The organization’s leadership emanates from a central entity with rays of authority and influence dispersing from the central entity. Normally, the rays of power are joined by functions. Working in such organizations requires employees to accurately predict what is expected of them from the power hold ers and execute their duties as required. Unlike other forms of cultures, few regulations and bureaucracy depict power culture. Similarly, power cultures are described as political organizations rather than social organizations. Power cultures are political organizations because their choices are influenced by balance of influence more willingly than on logical grounds. In addition, power cultures have been known to possess dramatic reactions. Through this, they can react swiftly to opportunities or threats. Unlike other forms of cultures, power cultures are interested in the results and have little significance on the procedures used in obtaining the results. One major disadvantage, exhibited by these power cultures is that they cannot withstand too much organizational growth. For instance, when power cultures expand by seeking several activities they collapse.Advertising Looking for assessment on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More On the other, hand role culture can be described as a form of culture that seeks to achieve logic and reason through the bureaucratic organizational structure. It is referred to as a role structure for the reason that roles or positions are allocated to the individuals who fill the vacant positions. Through this structure, an organization can sustain its growth from the contribution of several individuals rather than from an individual. In the long term, the organization can recruit more people to fill several emerging roles in the organization. With this form of culture, every role or position has responsibilities and expectations expected from individuals who fill the positions. To make certain that every employee knows their responsibilities and expectations, organizations ensure that their tasks and set of laws are appropriately codified and negotiated. In cases where roles are not clearly defined, individuals are expected to behave as though their roles are legitimately authori zed. Generally, role power is restricted between certain domains. Beyond these domains, the effectiveness of role power ceases to be relevant. For instance, a unit manager for a service company has role power within his or her unit. Outside the unit, the manager has no role power.  Alternatively, task culture has no solitary source of power (Cameron Robert 56). In this form culture, executives allocate their subordinates to projects. These projects are supposed to be completed autonomously by specific employees who are brought together for the project only. Unlike other forms of cultures, this culture is inherently cross-functional. It allows several experts to mingle together in project teams. The effectiveness of this culture depends on the managers’ abilities to identify and bring together right individuals at the right time to work on a specific project. How organizational specific, legal, regulatory and ethical requirements impact on leadership demands Organizational specific, legal, regulatory, and ethical requirements influence an organization in a number of ways. Legal requirements outline what is expected from organization leaders. In some instances, organizational leaders aiming to exploit on cheap labor may find out that their ambitions are restricted by legal requirements. Through regulatory policies, organizational leaders are required to comply with the existing rules. Equally, ethical requirements restrict leaders from exercising leadership styles that are deemed unethical. The relationship between management and leadership There are several relationships between leadership and management. The two comprises of similar roles, as several leadership and management role involve the combination of the two roles (Schein 12). Equally, personality style is an eminent aspect of both. Notably, individuals who possess leadership skills tend to pursue dreams aim at managerial tasks. In general, leadership entails setting up new directions for an o rganization. On the other hand, management entails a process meant to direct and control conventional principles. Evaluate leadership styles The need for effective leadership in our governments and institutions is evident from the current leadership wrangles. In our business organizations, increases in staff turnover cases imply that our institutions are in need of effective leadership styles. According to business experts, leadership styles are not to be experimented on but to be developed to fit the particular work environment. Several business management experts have come up with various leadership styles that can be adopted to end specific challenges facing organizations (Kippenberger 7). Among these leadership styles are dictatorial style, authoritative style, constructive style, and participative style. In dictatorial leadership style, an executive behaves like a dictator. This implies that all the employees are required to act as their executive orders. Similarly, this type o f leadership style allows the executive to make all the organization’s decisions without consulting with the subordinates. When the employees fail to act in accordance with the executive’s orders they are punished accordingly. This kind of leadership style is appropriate during emergencies, when employees’ safety is at risk, and when stern discipline needs to be undertaken to punish rogue employees. Another common leadership style is authoritative leadership. With authoritative leadership style executives considers themselves the most qualified decision makers in an organization. In this regard, subordinates and other junior employees are rarely given chances to participate in matters that pertain to their organization. Through this leadership style, executives can use their subordinates to achieve their own personal interests. This leadership style is most preferred when a company hires new employees who are unfamiliar with their tasks, when there is habitual m isuse of authority, and when company rules are violated. One major disadvantage associated with this leadership style is that it allows executives to undermine the potential capabilities of their subordinate. Through this, an organization can fail to tap its employees’ full potential. Unlike the above leadership styles, consultative leadership style enables the executives to engage their employees in the management of their organizations. Through this leadership style, all employees are assured that they will contribute in organizations’ problem solving and team building activities. Similarly, unlike the other two leadership styles this style of leadership allows employees to foster their self-confidence as their effort is appreciated at all levels. Equally, through this approach employees full potential can be exploited fully enhancing the organization’s innovation. In general, this leadership style focuses on maximizing on individuals’ experiences, skil ls, and knowledge. It should be noted that executives have the final decision making power. This implies that executives are first consulted before the subordinates initiate any major decisions. In the same way, executives cannot implement any major changes before taking the input from those who will be affected by the changes. This mode of leadership style is appropriate when an organization needs an innovative solution, is conducting planning meetings for its departments, training employees for leadership roles, and when performing day-to-day organizational activities. Another major leadership style is participative leadership. In this form of leadership, individuals’ efforts in an organization are considered regardless of their job levels. Just like the consultative leadership style, participative leadership styles enable an organization to maximize on their employees’ experiences, skills, and knowledge. Through this leadership, an organization can enhance its emplo yees’ creativity creating a culture of innovation. Why leadership style needs to be adapted in different situations In the contemporary society, competition exists in every sector. As such, business organizations are not exceptional. Organizations are continuously struggling to come up with better goods and services than their competitors. To achieve this, an organization needs a leader with unique leadership styles (Hiebert Bruce 43). An efficient leader should possess leadership traits that adapt to every situation challenging the operation of an organization. Unlike in the past, current business environments are ever changing. This implies that leadership styles should be adapted to suit the dynamic work environment. Another reason why leadership styles should be adapted to every situation is that there exist different business structures in the contemporary society. For instance, a young company will change its leadership styles more often in the future as the company ex pands (Hiebert Bruce 46). Similarly, as the layers of decision making in the company become complex as the company expands the company’s executives might be required to amend on their leadership styles to match with the organizational changes. Works Cited Argüden, R. YÄ ±lmaz. Keys to governance strategic leadership for quality of life. Basingstoke: Palgrave Macmillan, 2011. Print. Ashkanasy, Neal M., and Celeste Wilderom. Handbook of organizational culture climate . Thousand Oaks, Calif.: Sage Publications, 2000. Print. Bellingham, Richard. The manager’s pocket guide to corporate culture change. Amherst, Mass.: HRD Press, 2001. Print. Cameron, Kim S., and Robert E. Quinn. Diagnosing and changing organizational culture : based on the competing values framework. Reading, Mass.: Addison-Wesley, 2009. Print. Frost, Peter J.. Reframing organizational culture. Newbury Park, Calif.: Sage Publications, 2001. Print. Hiebert, Murray, and Bruce Klatt. The encyclopedia of leadership: a practical guide to popular leadership theories and techniques . New York: McGraw Hill, 2001. Print. Kippenberger, Tony. Leadership styles. Oxford, U.K.: Capstone Pub., 2002. Print. Schein, Edgar H.. Organization culture and leadership. 5nd ed. San Francisco: Jossey-Bass, 2002. Print. This assessment on Characteristics of Organizational Culture was written and submitted by user Giovani I. to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Informative Essay Sample on Somatoform Disorder

Informative Essay Sample on Somatoform Disorder Free example essay on Somatoform Disorder: Somatoform disorder is someone who appears to have a physical medical ailment but doctors cannot find the origin of the illness. For something to categorize as a Somatoform Disorder, the physical symptoms must be serious enough to interfere with the patients employment or relationships, and must be symptoms that are not under the patients voluntary control. In general, somatoform disorder deals with the physical aspects of unknown illnesses, and on the other hand, dissociative disorders deal with the patient’s sense of identity or memory. There are seven different kinds of somatoform disorders, each with their own description, or way to be identified. The major problem with somatoform disorders is that it is very hard to recognize and treat because the illness is well camouflaged to appear like normal illnesses. This would create situations where people are being treated for sicknesses that they do not really have, which is an overuse medical services and resources. The Different Sub-Disorders: Somatization disorder, used to be known as Briquets syndrome since he was the man who first recognized it, require four symptoms of pain, two symptoms in the digestive tract, one symptom involving the sexual organs, and one symptom related to the nervous system. Somatization disorder is a chronic disorder that is persistent throughout a person’s life and is likely to appear in families. Conversion disorder is a condition that the patients senses, ability to walk, or move are impaired without a medical, neurological disease, or cause. Instead, psychological factors are believed to be the causes. Typically, the disorders appear when the patient is under stress or trauma and the disorder rears its head to try to get the patient out of the situation. When speaking of conversion disorders, doctors may refer to the primary or secondary gain, which is the effect that the disorder has on the patient’s lives. Pain disorder is where the patient suffers from chronic headaches, back problems, arthritis, muscle aches and cramps, or pelvic pain. In some cases, the pain comes from psychological factors only, and in other cases, there is a mix of psychological factors, and an actual medical condition. Sadly, this disorder is relatively common in the United States because of the frequency of work-related injuries. Hypochondriasis, formerly known as hypochondriacal neurosis, is where the someone has excessive fear or preoccupation with having a serious illness in spite of medical testing and reassurance. Body dysmorphic disorder is the preoccupation with an imagined or exaggerated defect in one’s appearance. The patient can be preoccupied with any part of the body, but typically would be with the face, hands, or their breast or genitals. Is probably the only somatoform disorder where men and women have equal occurrences of the disorder. There have been many theories as to what the causes of the disorders are. Family stress is believed the most common cause of these disorders in children and adolescents. Somatization disorder and hypochondriasis may surface from the patients unconscious reflection of parent’s behaviors. This is likely if the patients parent derived secondary gain from their symptoms. Somatoform disorders patients can be given antianxiety or antidepressant drugs if diagnosed with mood or anxiety disorder. However, most believe that it is better not to give the patients any drugs as treatment, but in some cases, it has been very successful. Alternative treatment such as acupuncture, hydrotherapy, therapeutic massage, meditation, botanical medicine, and homeopathic treatment can help people with pain or somatization disorders would be able to ease their pain, and soul in some situations.

International Relations High School Essay Example | Topics and Well Written Essays - 500 words

International Relations High School - Essay Example That the WASP should dominate, be regarded as the superior race, is a direct outcome of the fact that, to a large degree, they shaped the land, created the nation and framed its culture. Irrespective of the fact, or myth, that America is a melting pot, it is ultimately a nation created in the image of the WASP culture, religion and world view. Indeed, the capitalist system which is so distinctly American is the product of the Protestant work ethic. Democracy, which is as American as is capitalism, was born of the historic encounter between these early immigrants and the British. Added to that, the country's founding fathers, its first president and most of those which played such a seminal role in the formation of the United States of America, are WASP. The perception of superiority, therefore, is rooted in the making of America. Similarly, the American Indian's occupation of the bottom tier and the persistent perception of them as an inferior race emanates from the historical circumstances surrounding the encounter of the races. As noted in Chapter 6, not only did the American Indian emerge as defeated but was decimated, virtually purged off the land.

Strategy quality managment in SABIC Essay Example | Topics and Well Written Essays - 3500 words

Strategy quality managment in SABIC - Essay Example Custom Technology Solutions (CTS, 2006) describe strategic management as ‘a combination of strategy formulation and strategy implementation’ (P.5). Saudi Basic Industries Corporation (SABIC), Saudi Arabia’s largest corporation is a global leader in the manufacture of chemicals, fertilizers, plastics and steel. The Saudi government is the majority shareholder with a 60 percent stake with the balance of shares distributed among the Gulf Co-operation Council (GCC) countries of the Middle East. It has a major presence in Asia particularly the Asia-Pacific region, North America, Europe and Africa in addition to the Arabian Peninsula [Figure 1] (Asia Pacific News, 2008). Established in 1976, SABIC has a broad range of assorted merchandise encompassing ‘basic and intermediate chemicals, polymer resins and polyesters, fertilizers, metals and industrial gases -primary building blocks for products’. These are found in the conglomerate’s 21 manufacturing firms employing over 16,000 employees globally (Al-Abdulgader, 2007). The demand for petrochemical products has increased globally thus ensuring SABIC future growth prospects are bright being one of the largest producers in the world with a rich natural source in Saud Arabia (Jaroudi, 2007). SABIC petrochemical production has subsequently quadrupled over the last fifteen years surpassing 45 million tonnes while aiming at raising the production to over 100 metric tonnes by 2015 (Thomasson, 2007). The company’s expansion plans targets the emerging Asian growth economies of China and India. In China, the country’s enormous expansion and development has meant it is unable to meet its demand for polyolefin resins thus needing 34 percent imports, which puts the Chinese market on top of SABIC agenda. According to SABIC’s country manager for China, Lee Lam Lee,

Government Strategies to Control Inflation

Government Strategies to Control Inflation With reference to the UK, examine and discuss the methods open to a government to control the rate of inflation within an economy. Introduction Inflation refers to an increase in the price level of goods and services in a given economy. Since inflation is concerned with increases in the cost of living rather than increases in the cost of a particular good, it is measured using a price index which monitors the price of a weighted ‘basket’ of goods. In the UK, the main price indices are the Retail Price Index (RPI), the Retail Price Index excluding Mortgage Interest Payments (RPIX) and the Consumer Price Index (CPI). Responsibility for the control of inflation was handed from the Treasury to the Bank of England in 1997 at which time the RPIX was used to measure inflation and the inflation target was set at 2.5%. Since December 2003, the CPI has replaced the RPIX as the main inflation measure and the target has been set at 2%. Diagram 1 (below) depicts annual inflation rates in the UK from 1997 to 2007 as measured by both the RPIX and the CPI. This essay will first outline the main theories put forward to explain the causes of inflation and the methods that each theory suggests would control inflation. The next section considers inflation in the UK from 1997 to date, and then evaluates the measures employed by the Bank of England in order to try to control inflation in that period. Causes of inflation and methods of inflation control There are two main schools of thought on the causes of inflation. The Keynesian school posits that changes in the real supply of or demand for goods and services are the key causes of inflation. Thus in order to reduce inflation, an expansion in supply or a contraction in demand is necessary to reduce the price level. This can be achieved through fiscal or monetary policy or a combination of the two. Fiscal policy such as an increase in income tax rates, has the effect of reducing effective demand for goods and services and thus can be used to lower inflation. Furthermore, a reduction in sales taxes (VAT in the UK) can reduce inflation to the extent that that inflation is caused by an increase in consumer prices. Monetary policy, through an increase in interest rates, can reduce aggregate demand through discouraging borrowing, increasing saving and reducing the disposable income of homeowners as the cost of mortgage repayments increases. The monetarists, on the other hand, argue that inflation is caused primarily by changes in the supply of and demand for money. In this view, then, inflation can be reduced either by reducing the supply of, or increasing the demand for, money. Given that either the government or the central bank (as in the case of the UK where the Bank of England has had independence on monetary policy since 1997) sets the price of money (i.e. the interest rate), they are able to control the supply of and demand for money. This suggests that fiscal policy can be used to affect aggregate supply and aggregate demand while monetary policy can be used to affect aggregate demand (particular in an economy with a high level of mortgaged home-ownership) and the supply of and demand for money. Inflation in the UK and Bank of England control measures from 1997 to 2008 The diagram above shows UK inflation (as measured by RPIX and CPI) from 1997 to 2008 together with the inflation targets set for the Bank of England by the government. This shows that from 1997 to 2003, inflation was held within 0.5% of its target. In 2004, inflation as measured by its (then new) CPI target was on the low side but from 2005 to 2007, it was within a healthy 0.5% range of target. In recent months, however, inflation has been climbing and is predicted to go over 3% at some point before the end of 2008. In order to understand inflation and inflation control in the UK, it is necessary to understand some of the specificities of the UK economy. In the first place, the nature of the UK housing market (which is characterized by high loan-to-value ratios, relatively few long-term fixed rate mortgages, and ease of re-mortgaging) makes house prices particularly responsive to interest rates. Cameron (2005:3) explains that ‘a one percentage point rise in the short-term real interest rate would reduce house prices over a five year period by 2.6% in the UK, 1.8% in the US, and 1.3% in Germany.’ Furthermore, in the UK, house prices have a major impact on consumer spending. Cameron (2005:3) explains that house prices are more volatile in the UK than elsewhere in the developed world, and that the impact of house prices on consumer spending is also particularly heavy in the UK – according to the OECD, a 1% fall in UK housing wealth correlates with a 0.07% fall in consumer spendi ng. This can be seen as due to the high levels of home ownership and the high loan-to-value ratios of mortgages. This demonstrates that while monetary policy can be very effective in reducing aggregate demand via just a small increase in interest rates, the converse is also true – in other words, a small reduction in interest rates will have a significant effect on aggregate demand and so will lead to a significant increase in inflation. This last point is well illustrated by the current situation in the UK. The Bank of England is mandated to control inflation (as mentioned previously the target is 2% as measured by the CPI) but has control only over monetary policy and not over fiscal policy. Monetary policy impacts economic growth as well as inflation and therefore when the economy is slowing (as is currently the case) and potentially heading towards recession, interest rates may be used to stimulate growth even if this may also increase inflation to an unacceptable level (when it goes over 3% the governor of the Bank of England must write an explanatory letter to the Chancellor of the Exchequer). As the Economist (2008:38) explains, in January of this year, ‘consumer prices were 2.2% higher than a year ago—a bit above the governments 2.0% inflation target. The banks central forecast shows inflation heading up to 3% by the third quarter of this year.’ The Bank of England (2008) itself certainly blames the predicted escalation of inflation over the acceptable 3% level on the problem of balancing growth objectives with inflation targets given that monetary policy is the only tool at its disposal, claiming that the ‘combination of slow growth and above-target inflation poses substantial challenges for policy.’ Conclusion The Bank of England (2008) explains that ‘higher energy, food and import prices push inflation up sharply in the near term.’ This is echoed by analysis in the Economist (2008:38) which claims that increasing ‘home-energy bills, which have jumped by nearly 15% so far this year, will add almost half a percentage point to consumer-price inflation in February. Food-price inflation, which is currently 6.6%, is likely to rise further. Import prices will be pushed up by a weaker pound, whose 6% fall in the last three months was the biggest since sterlings ignominious exit from the European exchange-rate mechanism in 1992.’ In order to address this kind of inflation without stifling economic growth at a time when growth is already slowing, policies need to be directed at aggregate supply of goods and services. As was outlined above, monetary policies have an impact on the supply and demand for money and also on aggregate demand for goods and services. However, only fiscal policy impacts the aggregate supply of services. Thus in the context of low levels of growth and high levels of inflation, monetary policy (as controlled by the Bank of England) is not sufficient because if it focuses on controlling inflation it cannot also reverse the slowdown in economic growth, and if it focuses on economic growth, there is a danger that inflation will get out of control. Thus inflation controls should draw on a combination of fiscal and monetary policy. References Bank of England (2008) ‘Overview of the Inflation Report February 2008’ (downloaded from http://www.bankofengland.co.uk/publications/inflationreport/infrep.htm on 4 March 2008) Cameron, G. (2005) ‘The UK Housing Market: Economic Review’ (downloaded from http://hicks.nuff.ox.ac.uk/users/cameron/papers/ukhousingmarket.pdf on 4 March 2008) Economist (2008) ‘Economic woes: Fighting on two fronts: Britain’s central bank gets gloomier about growth and inflation’ in The Economist, February 16th-22nd 2008, p.38 OECD (2005) ‘Economic Survey of the United Kingdom, 2005 (downloaded from http://www.oecd.org/dataoecd/18/34/35473312.pdf on 4 March 2008) Office for National Statistics (2008a) ‘RP07 RPI all items excluding Mortgage Interest Payments (RPIX) percentage change over 12 months (CDKQ)’ (downloaded from http://www.statistics.gov.uk/downloads/theme_economy/RPIX.pdf on 4 March 2008) Office for National Statistics (2008b) ‘CPI12 CPI all items percentage change over 12 months (D7G7)’ (downloaded from http://www.statistics.gov.uk/downloads/theme_economy/CPI.pdf on 4 March 2008)

The Rocking Horse :: essays research papers fc

Within the story entitled The Rocking Horse Winner by D.H. Lawrence, the audience is divulged into the sordid family life of a adolescent boy named Paul, where there are three obvious morals told through the story’s style and symbolism. Also present within The Rocking Horse Winner are elements of supernaturalism and cold harsh reality.   Ã‚  Ã‚  Ã‚  Ã‚  The first distinct moral in The Rocking Horse Winner is that we must not let ourselves be succumbed to greed and the need for materialistic items over our responsibilities in life. The mother and father’s obsession with wealth and material items is at battle with their parenting responsibilities within The Rocking Horse Winner. The mother and father have replaced love with the constant, overwhelming desire for additional money. It is the responsibility of the parents to provide for the children in their family. Especially, where as young children are concerned, they should never feel the need to provide for their parents. The Rocking Horse Winner portrays the financial destruction of an upper class family struggling to maintain their high level status while regularly spending beyond their means. The mother and father have expensive tastes that can not be supported with their mere common jobs. In order to give their family the best and retain their illicit s tatus, both parents embezzle all of their resources to -1- purchase materialistic things. The Rocking Horse Winner depicts how greed and the need possessions and money drives a member of this upper class family to resort to drastic measures. (Lawrence; The Rocking Horse Winner Study Guide)   Ã‚  Ã‚  Ã‚  Ã‚  The second obvious moral to The Rocking Horse Winner is that often one does not realize what they have and how they we feel about it until it is gone. Early on within the story we learned that Paul’s mother had attractive, bonny children. Yet, â€Å"when her children were present she always felt the center of heart go hard†. She knew â€Å"that there was a place in the center of her heart where she could not feel love for anybody, not even her children†. Later on in the story, the mother goes on to show her emotions and love when she has â€Å"seizures of uneasiness† about Paul and finds him fiercely riding his rocking horse into unconsciousness and finally plumaging to his death. When she is presented with losing her child, she realizes what she had, a little too late. (Lawrence p.980, 988)   Ã‚  Ã‚  Ã‚  Ã‚  The third apparent moral to The Rocking Horse Winner is even if you have good luck, eventually it will run out.

Barings Bank’s Failure

When establishments, businesses and organizations are prosperous and very successful, barely anyone anticipates that someday they would fall down. Instead, people tend to envision a more dynamic, booming and more successful business whose position would seem stable that no problem can shake it down. This is exactly the case with the Barings Bank. After its share of success, the bank failed due to organizational architecture.The debacle of the Barings Bank, also called the â€Å"Queen’s Bank† (FundingUniverse, n. d.), became one of the hot topics when it comes to banking, finance, economics and management. The case shows an example of how one powerful company can be ruined by its shortcomings.The Barings Bank achieved success for a long time and was even respected as it was the United Kingdom’s oldest merchant bank (Sungard, 2009). It was established by a team of brothers, Francis and John, in London during the 1700s. During the Napoleonic Wars, the company financ ed military campaigns in Britain and helped France to recover financially.The company was also known for assisting America in buying Louisiana from France. Prosperity also rained down when the bank went into international trade (FundingUniverse, n. d. ). Barings Bank has $900 million in capital, but its share of success suddenly went to a halt in 1995 when it suffered from unauthorized trading losses which amounted to $1 billion (Sungard, 2009). Some experts say that the losses showed the ineffective controls and inappropriate incentives within the company (Hentschel and Smith, 1996).Others think that the demise was a result of financial risk management that went wrong (Riskglossary. com, 1996). For whatever reason, the person responsible behind the bank’s demise was Nick Leeson, a trader promoted as general manager in the Singapore branch. Although he was capable of making millions for the company, he got involved in unauthorized trading activities that initially went unnoti ced because he handled trading and back office functions (Sungard, 2009). Leeson traded and made mistakes which the bank’s management did not notice. The more bets Leeson made, the more money he lost.This indicates that Leeson, who has gained much power and authority, has acted outside the bank’s official authority and worked not in the best interests of the bank’s owners (Hentschel and Smith, 1996). This kind of problem occurs in different settings wherein employees, shareholders and senior management have different interests. It occurs when an agent such as Leeson enjoys private incentives to stray from things that would maximize the company’s value. Also, the structure of the organization can affect employee’s incentives. Thus it can worsen or control the problems.Three facets of organizational architecture that have effects are reward systems, decision rights and control systems. In reward systems, a compensation package must be readily availab le and must have â€Å"strong incentive components. † In Leeson’s case, however, the objective is to generate profits and not to stabilize firm value. Compensation based on the contract’s payoff can have bad side effects. Decision rights, on the other hand, indicate that decision rights must be allocated to treasury employees so that internal controls at low cost will be improved.However, traders and dealers like Leeson have extensive decision rights over their positions. Meanwhile, control systems in the Barings Bank case failed because a difficulty in monitoring within the company existed. The senior management at Barings Bank claimed that they were unaware of Leeson’s activities. To prevent such cases there should be strict control and supervision on business activities. The company could have set position limits so that traders and dealers will not be able to abuse their positions. Another shortcoming of Barings Bank was that it did not separate settl ement and trading responsibilities.Otherwise the company could have monitored all sorts of activities because the separation can facilitate agreement with the set position limits (Hentschel and Smith, 1996). The failure of Barings Bank was attributed to its organizational architecture. Nick Leeson, a trader whose losses caused the bank to go into bankruptcy, worked to generate profits. The power and authority that came with his position blinded him into making bets that he did not win. The bank, on the other hand, failed to make careful control and monitoring over the activities done on its part. References FundingUniverse.(n. d. ). Barings PLC. Retrieved January 8, 2009, from http://www. fundinguniverse. com/company-histories/Barings-PLC-Company-History. html Hentschel, L. and Smith, C. W. (1996). Derivatives regulation: Implications for Central Banks. Retrieved January 8, 2009, from http://www. simon. rochester. edu/fac/Hentschel/PDFs/DRICB. pdf Riskglossary. com. (1996). Barings debacle. Retrieved January 8, 2009, from http://www. riskglossary. com/link/barings_debacle. htm Sungard. (2009). Barings Bank. Retrieved January 8, 2009, from http://www3. sungard. com/bancware/default. aspx? id=4704