Agency Theory Versus Stewardship Theory Accounting Essay

Agency Theory Versus Stewardship Theory Accounting Essay Jensen and Meckling (1976) defined an agency correlation as a contractual set-up under which the business owner or the principal engaged a manager or the agent to execute some service on his behalf and may usually entail some decision making exclusively by the agent. The agency theory revolves on the basic proposition about humans, which deals with principals and agents as self-oriented focusing on exploiting their personal advantage (Corbetta and Salvato, 2004; Chua, Steier and Chrisman, 2006). Shleifer and Vishny (1986) explain the agency context in which the financiers needed the agents specialization to obtain maximum returns from their funds, meanwhile the managers since they do not have enough capital on their own would utilize the finances of its principal. Agency theory described managers as opportunistic (Wasserman, 2006) by seizing its optimum advantage for his appointment and role as the mover in the firm for its own benefit, at the expense of the principal (Shulze, Lubatk in Dino, 2003). Both parties goal is to gain that personal advantage in every way possible with the least outlay and expenditure. These expenditures are defined as agency costs (Jensen and Meckling, 1976). This is the total of cash outflows made by the principal for its organization be it in budget proportions, auditing, or employee honorariums; the expenses incurred by the agent for income generating projects and the marginal loss due to the decline in the expected income of the principal as caused by the resulted deviation of motives between the agents resolution and the main goal of the principal to obtain maximum returns from its investments. Thus, high conflicting of interests between the principals and agents that resulted from information asymmetry is the main statement in an agency theory (Davis, Schoorman and Donaldson, 1997). Asymmetry of information between the two parties is displayed when the manager align his capabilities with the expected outcome, result and rationality of the princip al (not knowing his own abilities) leads to satisfying decision-making on the part of the principal while this is an example of adverse selection for the agent (Karra, Tracey and Phillips, 2006). More often than not, this leads to a number of non-satisfactory overall performances of the manager which will in due time lead to the destruction of the firm and the reputation of the agent (Jensen, 2004). As well as for the principals, their incapability of selecting candidates that acts appropriately in all circumstances are proofs of adverse selection. The outcome always entails an ambiguous job description on both parties. Nevertheless, there are still some factors that the agency theory fails to point out, other than motivational or self-gratitude. These maybe are the intrinsic inability or low ability, poor knowledge on business and misinformation of agents that resulted in their failure to deliver high performance for their principals (Davis, Schoorman and Donaldson, 1997). Moral hazard as described by Chrisman, Chua and Litz (2004) is another agency problem confronted by the corporate governance. Its another kind of opportunism which includes utilizing, seizing and assuming all extra benefits from a delegated authority to rule in behalf of the principal. Since it is difficult for the principal to monitor agents, this authority is undeniably has a chance of being abused or misused by the managers. This problems solution is to adapt a good monitoring system and internal self-governance by the principal which entails agency cost (Eisenhardt, 1989). As discussed by Berle and Means in 1932, a company does not behave based with the conventional model in which the agents must act in the best interest of the owners of the firm. Most likely as a consequence, the principal then would guarantee that the managers would act in their best interest. The idea of formulating a contract is relied upon by the agency theory to align the motives of both parties concerned. The goal is to balance the intention by allocating maximized values for shareholders and added incentives and benefits for the managers. Committee audits and performance evaluations by the board may act as effective authority tool for monitoring and scrutinizing potentially opportunistic agents (Mustakallio, Autio and Zahra, 2002). This internal governance system as a solution to ensure the compliance of the agents bounded by the contract will simultaneously be given to a non-executive sect who will be composed of auditors, supervisors and other structural arrangements. This non-executive part of the ownership structure serves as the middle man interconnecting the principal and the agent having a role in monitoring, thereby extending an enormous effect in the change or variation in control (Denis, 2001). In relation to corporate governance, legitimate actions against deceits and other modes of fraudulence may provide some fortification on the part of the principal. Economic analysis suggests that incorporating these solutions to the firm may considerably eliminate opportunism. But there are still factors that need to be considered in this special structure of the firm that is created for internal governance of which other forms of opportunism may arose in those entrusted with responsibility to check on the managers of the firm. The study made by Yermack in 1999 suggests that the board particularly its composition as an authority to monitor managers has an effect on the governance mechanism. The study on the effect of small board of directors in a company got the significant result that there is a positive correlation of this small size to greater market valuation of a company. Meanwhile, Hannifa and Hudaib (2006) stands with the result of Yermack showing results based on more than 300 companies listed in Malaysia which proposed that a large board is less efficient in auditing the performance of the managers compared to a smaller one. Moreover, this huge composition of the board is quite expensive for the companies to maintain in terms of honorariums, commissions and compensation. But in terms of profit and company growth, the large board may seem to be of importance because of the diversity in experiences, knowledge and accountability. Nevertheless, the study made by Guest in 2009, showed a strong result on the non-relation of the large board size to the firm performance however they also robustly imply that they dont suggest to restrict large boards to obtain a better firm performance. All these efforts executed by principals to avoid agency problems, minding the fact that there are still managers that wont deliver exactly what theyre expected to, entails agency costs as discussed. Often, the goal of the principal is to minimize agency costs and focus on profit even if not in growth. Here comes the conflict of organizing the principal-agent relationship (Shapiro, 2005) wherein the idea is exemplified but the measures are often inadequate, thus the alignment of the interests of the principal and manager is hardly ever absolute. A control-oriented firm is then considered necessary under agency theory which suggests that agents will not act to take full advantage of the returns to the principal if and only if systematic self-governance mechanisms are implemented in the firm to protect the shareholders interest (Jensen and Meckling, 1976). Stewardship theory In 1993, Block believes that firms implementing stewardship by front-running service instead of self-interest are those that are most effective in corporate governance. He believes that both the firm and individual needs will be greatly achieved by establishing trust-relationships and treating subordinates as partners. Preston (1998) added a definition of Stewardship Theory to exemplify humane duties owed to all partners that recognizes the importance of a systematic fit of corporate governance considering the elements of its environment. Hosmer in 1996 identifies the need to augment the economic and social responsibilities in governance by recognizing the moral and ethical issues inherent in the stewardship theory. The managers role in stewardship theory is to maximize the potential of the firm and to pursue long-term wealth acquisition with organizational and individual desires best accomplished by assessing collective ends (Hosmer, 1996). The goal is on assuming accountability and responsibility for the organizational community. The model of a manager should be as a steward whose behavior is ordered and organizational; whose collectivistic behavior is of higher reverence than individualistic, self-serving conduct (Albanese, et al 1997). They exemplify that man being intelligent makes rational, not irrational decisions, unlike agency proposers who dispute stewardship. Stewardship theory view employees as assets of the firm as the agency did but they differ in their treatment of the human natures motivation and ability of control. A true steward is driven by his need of self-actualization, growth and achievement without being opportunistic and self-interested in his performance (Mejia et al., 2001). Stewardship ideology proposes that corporate governance structures should exercise advanced authority and prudence. (Davis et al, 1997) .The proponents discussed that high-level of authority and discretion is attained when the Chief Executive Officer (CEO) also assume the position of Chairman of the Board. Stewardship principle argues that the issue is whether or not the ownership structure assists and facilitates in the management achievement of high corporate and firm performance. When the CEO is also the chairman of the board, the organization will be facilitative of this objective letting them assume apparent, clear and objective role expectations and authorize and empower higher and greater management. Thus, stewardship theory is not centralized on self-motivation through own financial gain, but the assumption of two roles as the chairman, at the same time as the manager of the corporation will produce superior results and maximized returns to the shareholders than separation of the roles of the chair and CEO as exemplified by the agency theory. Duality of these roles is considered a functional from in stewardship perspective. According to Fama (1980), being an effective steward of their firm, CEOs and managers are also effectively managing their own assets and careers. Stewardship, however, has its own set of limitations and gaps. Since it is trust-based relationships, it assumes underlying informal agreements and not most of the time, the functional logic or prà ©cised obligations (Mejia et al., 2001). Some authors ( Habbershon, 2006; Miller and Miller, 2005) argue that altruism mainly a compliment of stewardship might be influential in establishing an enormous network for the firm in its early stages, as employing a wide network of trustees or of relatives in cases of a family corporation (less concerned on their specifications) minimizing agency costs compared to a non-family member (Mejia et al., 2001).However, in the long run as the firm becomes more established, the need for well adept and professional managers arise to cope up with the competition thereby expect an increase in the agency costs. In essence, the organizations over all environment systems influence the inclination of managers. In an organization which houses the philosophy for self-actualization and involve employee-owners association, managers are inclined towards the stewardship perspective. Furthermore, collectivist behavior and non-power distance cultures encourages stewardship principles (Davis, Schoorman and Donaldson, 1997). Agency Theory vs. Stewardship Theory Agency theory concentrates primarily on the association between the principal and the agents in corporations, having a formal and contractual nature of relationship however with the presumed goal indifference and incongruence of interest (Sharma, 1997). Meanwhile, Stewardship theory is involved mainly in analyzing the importance of the co-existence of trust-based relationships along with agency relations in firms (Corbetta and Salvato, 2004). The stewardship approach, which encompasses commitment and trust to shared goals and desires exhibited by the principal and the manager alike, aligns the interest of the two parties (Albanese, Dacin and Harris, 1997). In 1997 Davis, Shoorman and Donaldson provided two key points that differentiated the Agency and Stewardship theories. These are the motivation and power comparison. In an agency type, the manager is motivated by personal interests and extrinsic rewards. In the stewardship, the manager is motivated by the human need for intellectual growth, achievement, and self-actualization, and by intrinsic rewards. In an agency theory, the power is institutionally directed while in the stewardship, it is based on personal ability and power to run the particular organization. Davis, et al (1997) argue that the two theories are not mutually exclusive but create a link between agency and stewardship relationships. Clearly, the stewardship theory provided a room for the failures and gaps in the agency theory. A manager of a firm may choose what type of inclination he is up to particularly in decision making as long as these three assumptions are supplemented. First the decision must be mutually agreed upon by both the principal and the agent. Secondly, it will always depend on the situation, and third objective is the expectations of the parties involved. Basing on the result of their study of 22 matrices on the possibilities of the actuations of the principal and agent, the agent can either opt to perform in an agency or in a steward fashion, and so can the principal. There can be four possibilities of outcome in the governance using the link between agency and stewardship and depending on the choice of the concerned parties. Two of which are a concrete exa mple of the agency theory where both have selected to uplift their self-interests and a true stewardship principle which maximize organizational performance. Other two possibilities of outcome which will result in one party taking advantage over the other and one recourse to injustice will result to low performance on the other party. When the principal acts as the steward and the manager acts as an agent, and on the other hand when the principal becomes opportunistic and the manager acts as a steward, which could pave the way for the frustration and declined feelings of self-worth to the aggravated party. The study on the relationship of these theories is very broad, thereby some wouldnt agree to the findings of Davis. According to Albanese, Dacin, and Harris (1997) there is a distinction between agency theory and the agency problem of divided self interest. They discussed that stewardship simply refined and advanced agency theory, it does not present an alternative. Eisenhardts (1 989) review shows that agency theory was continually developed and is studied thoroughly with the incongruent self-interests of the principal-agent as the fundamental supposition. Summary The agency model and stewardship model of the firm provide two different angles for understanding the governance of a firm, its decision making, its internal relationships, and its external relationships. This review advocates that the principal or manager acting as a steward, and employing people with similar expectations, is more in line with the traits needed for an organization to succeed like proper motivation, personal and company growth and self-actualization, thus increasing the potential for maximizing the performance of the firm. Moreover, the advantage of the stewardship model over that of the agency is that it presents managers an organized different array of motivations which could potentially include the interests of all relevant firm movers (Preston 1998).

Eliyahu M. Goldratts The Goal Essay -- Goldratt

The Goal Here are the principles behind the dramatic turnaround story in The Goal. The goal of a manufacturing organization is to make money. Jonah poses this as a question: "What is the goal?" and Rogo actually struggles with it for a day or two, but any manager or executive that can't answer that question without hesitation should be fired without hesitation. But then again, the goal isn't clear to everyone. One of the characters in the book, an accountant, responds to an offhand comment about the goal with a confused "The goal? You mean our objectives for the month?" That's sure to strike a chord with a lot of readers. At an operational level, measure your success toward the goal with these three metrics: Throughput - The rate at which the system generates money through sales. Inventory - The money that the system has invested in purchasing things which it intends to sell. Operational expense - The money the system spends in order to turn inventory into throughput. You could rephrase it this way - and someone does, a bit later in the book: Throughput - Goods out; the money coming in. Inventory - Materials in; the money currently inside the system. Operational expense - Effort in; the money going out. Obviously, your job is to minimize expense and inventory and maximize throughput. Adjust the flow of product to match demand. In particular, don't trim capacity to match demand. It's a standard cost-cutting procedure, sure. But you'll need that capacity later, if you're serious about increasing throughput. Find bottlenecks. If manufacturing is what's limiting your throughput, then the problem isn't that people aren't working hard enough. You have bottlenecks in your manufacturing processes that are holding up everything else. Find the bottlenecks and do everything you can to fix them. Increase their efficiency, even at the expense of efficiency in non-bottleneck places, because the efficiency of a bottleneck directly determines the efficiency of the entire process, all the way through final payment. In the book, a variety of steps are taken to "elevate" and circumvent the bottlenecks. This is where the results start showing up on the bottom line. Soon the plant can actually use information from the bottleneck to do an effective job of scheduling work and (for the first time) reliably predicting when orders w... ...deas in novel form. There were already a dozen essays or articles on manufacturing management paradigms; you couldn't sell those. Novels sell better than essays. They're more readable. Once you realize that managers will buy thousands of copies of a "business novel" and make it required reading for their subordinates, a novel is the only way to go. (Also, The Goal was originally intended as marketing for Goldratt's plant management software company.) My main objection to The Goal is that it's fiction. Rogo makes a few changes, and his problems miraculously go away. It just works. Granted, the policies seem like good sense. But the unrealistic points are glossed over. Maybe plant managers in real life have the authority to adopt dramatic changes in the way they operate, the way Rogo did. Maybe it's easy to convince your top accountant that all his models are wrong, even though you have no accounting experience yourself. Maybe the average plant has an IT department that can create new scheduling software out of thin air in a few days. Maybe not. Goldratt claims a lot of real-life plant managers say they've turned The Goal into a documentary. That's a book I haven't read yet. Eliyahu M. Goldratt's The Goal Essay -- Goldratt The Goal Here are the principles behind the dramatic turnaround story in The Goal. The goal of a manufacturing organization is to make money. Jonah poses this as a question: "What is the goal?" and Rogo actually struggles with it for a day or two, but any manager or executive that can't answer that question without hesitation should be fired without hesitation. But then again, the goal isn't clear to everyone. One of the characters in the book, an accountant, responds to an offhand comment about the goal with a confused "The goal? You mean our objectives for the month?" That's sure to strike a chord with a lot of readers. At an operational level, measure your success toward the goal with these three metrics: Throughput - The rate at which the system generates money through sales. Inventory - The money that the system has invested in purchasing things which it intends to sell. Operational expense - The money the system spends in order to turn inventory into throughput. You could rephrase it this way - and someone does, a bit later in the book: Throughput - Goods out; the money coming in. Inventory - Materials in; the money currently inside the system. Operational expense - Effort in; the money going out. Obviously, your job is to minimize expense and inventory and maximize throughput. Adjust the flow of product to match demand. In particular, don't trim capacity to match demand. It's a standard cost-cutting procedure, sure. But you'll need that capacity later, if you're serious about increasing throughput. Find bottlenecks. If manufacturing is what's limiting your throughput, then the problem isn't that people aren't working hard enough. You have bottlenecks in your manufacturing processes that are holding up everything else. Find the bottlenecks and do everything you can to fix them. Increase their efficiency, even at the expense of efficiency in non-bottleneck places, because the efficiency of a bottleneck directly determines the efficiency of the entire process, all the way through final payment. In the book, a variety of steps are taken to "elevate" and circumvent the bottlenecks. This is where the results start showing up on the bottom line. Soon the plant can actually use information from the bottleneck to do an effective job of scheduling work and (for the first time) reliably predicting when orders w... ...deas in novel form. There were already a dozen essays or articles on manufacturing management paradigms; you couldn't sell those. Novels sell better than essays. They're more readable. Once you realize that managers will buy thousands of copies of a "business novel" and make it required reading for their subordinates, a novel is the only way to go. (Also, The Goal was originally intended as marketing for Goldratt's plant management software company.) My main objection to The Goal is that it's fiction. Rogo makes a few changes, and his problems miraculously go away. It just works. Granted, the policies seem like good sense. But the unrealistic points are glossed over. Maybe plant managers in real life have the authority to adopt dramatic changes in the way they operate, the way Rogo did. Maybe it's easy to convince your top accountant that all his models are wrong, even though you have no accounting experience yourself. Maybe the average plant has an IT department that can create new scheduling software out of thin air in a few days. Maybe not. Goldratt claims a lot of real-life plant managers say they've turned The Goal into a documentary. That's a book I haven't read yet.

Need for Localization: Foreign Company’s Obligations to Local Essay

This paper gives a detailed analysis of the local culture and customs that the foreign companies would have to adjust to in order to remove the social and psychological barriers which they would inevitably have to come up against during their overseas operation. The paper lays emphasis on the flexibility approach and localization as the main aspect for foreign companies in order to succeed. The study reveals that although the impact of globalization has brought greater degree of homogenization in commercial procedures, it still remains a distant dream when different cultures mingle making it imperative for these companies to accept heterogeneity as the only way to enter foreign markets. Customs and norms are die hard behavioral habits and have been ingrained in the society over a long period of time and not easily removable or made to overlook. This is especially so while operating in foreign soils and in many instances this has been seen as one of the biggest hurdles facing companies. Rules of law and government rules and regulations may exist but assuming that all businesses are managed by people and for the people, interaction between people is inevitable for its success. Some parent companies may of course have lesser amount of interaction due to the nature of their products or services yet on the whole it is generally seen that whatever be the business norms of the foreign company it has to make discernible changes when it goes into business in a foreign soil. Franchises and branches are actually an extension of the parent company that has been grounded and molded in a foreign soil by a larger participation of the local community within the internal and external environment of the organization. It is also seen that the cultural differences may be slight, marginal or make very great impact on the business due to the cultural difference that exists between the organization’s country of origin and the foreign soil. Thus, it is quite imperative on the part of the foreign company to make some structural changes which should include a changed human resource practice and a changed view of the organization as a whole in certain aspects of beliefs, assumptions and behaviors and above all understanding the positive sides of other cultures. In case the foreign company is hell bent on imposing the customs and assumptions of its own country of origin stating them to be its organizational culture then it would sooner or later find itself out of business. Hence, being indifferent and unmindful of the local customs can be very catastrophic if it doesn’t allow a certain degree of flexibility in bases that are situated on the foreign land. Areas of Conflicts A foreign company while setting its operational bases in another country invites certain risks from conflicts that it not quite seen in the home country. Firstly, the company if it happens to be a Western one inevitably tries to go about its business taking for granted that globalization has brought in a greater degree of flexibility and that the English language is the only internationally accepted language of the world population. This may sound quite okay within cultures that are a part or partake of Westernized conducts and behavioral patterns yet when such a company tries to place its foot on say Africa, the Middle East and the Asian countries then it is a different story altogether. For one there is greater degree of difference between the two cultures which if not properly understood and practiced may prove to be disastrous for the company. For instance, it is the standard procedure in the Western business to make an agreement that after a fruitful negotiation followed with signing of documents and shaking of hands which indicates that the agreement has been done as per the unanimous consent of the parties involved. However, this doesn’t hold well in the Middle East where coming to a formal agreement would mean that the beginning of several serious negotiations is on the way. In other oriental cultures the start of any business transaction is preceded by a ritualistic performance, the majority being religious based as well after ascertaining the stars on the almanac. In China there are three traditional philosophies namely the Confucianism, Taoism and Buddhism and are generally considered as the foremost philosophies for facilitating social interaction. A foreign company trying to open its branch in China would indeed be in conflict with the local customs and beliefs and hence do very poorly if it doesn’t understand the situation. This is more so with the Chinese mostly preferring a Chinese person as a mediator for any negotiation. In India too there are various religious and cultural festivals which form an integral part of the existence of the native person. In areas of human resource this is more pronounced and the foreign company must make allowance for the same by giving holidays and even be expected to participate by handing over of gifts, involving in the cultural events as well as make contributions to enhance their image with the local participants. Therefore, it is generally seen that the foreign company increases its business substantially while conforming to traditional beliefs and customs of the local people than they would otherwise. Multiculturalism and Cultural Assimilation There is growing evidence that the transnational organizations are adopting a policy of recruiting workforce from various cultures from across the world as it is by far the best way to expand overseas and also to understand and integrate better with the markets in these regions. Multinational companies should therefore make note of the fact that in their home ground things were a lot different than what they are likely to experience across the borders. Globalization as seen in the present does not imply homogenization, but the reverse as this means one has to deal with difference directly instead of from a distance as was earlier the case (Nolan, 1999). In multiculturalism, organization readily accepts the presence of varied cultural groups within its own larger cultural base. In the case of cultural assimilation the organizations by its policies prepares to assimilate those cultures of local communities and tries to effectively integrate them into its organizational culture. It is also true that both diversity and internationalization are needed to create diverse learning environment within companies in order to make them adaptive to local customs and hence remain competitive. For this the foreign company should have well laid out policies of manpower learning and understanding of the various cultures that would arise in the event of transfer of personnel. According to authors Stehle and Ernee, transfers are more likely to succeed when employees of the transfer coalition hold positive attitudes and trust towards the parent company (2007). An effective ethical principle is thus evolved in this way and the organization needn’t fear of any future uncertainties and confusion while carrying on its business in soils alien to its own customs and practices. By the process of assimilation the organization has send out the right message to the local communities. Attitudes towards ethics are rooted in culture and business practice and the term international business conduct and morals refer to the foreign company’s relationships with individuals and entities (Mahapatra and Kumar, 2009). Further those companies who are having certain degree of confusion to start operations in an alien soil can take other routes in the form of joint ventures and franchisees. The uses of joint venture can mitigate problems associated with lack of knowledge in norms, values and assumptions that are the foundation of organizational and individual behavior (Ang and Michailova, 2008). Conclusion Thus it is imperative for the foreign company to have an obligation to the local customs, languages, behavior, religion and cultural assumptions in order to consistently perform well and profitably. Once the company forms a distinctive identity with the local population with its overtures, responses and publicity campaigns the company can benefit both in its image and carry out future expansion programs. There have been several instances of the whole company’s leadership position even that of the parent company being entrusted in the hands of persons belonging to the local community with the target market which in this case means the local market too large enough to avoid or forego. The case of PepsiCo is an example as its leader is a woman of Indian origin and it is quite likely that she would be able to understand the cultural and religious sentiments of the people much better than those not native to the soil. Reference List Ang Siah Hwee and Michailova Snejina (2008). Institutional Exploration of Cross- Border alliance Modes: The Case of Emerging Economies Firm. Normative Pillars of Institutions. Management International Review. Mahapatra S N and Kumar Jitender (2009). Transnational Corporations and Marketing Ethics in Global Market in Post Globalization. International Business Ethics and Global Marketing. Abhigyan. Nolan W. Riall Communicating and Adopting Across Cultures: Living and Working In the Global Village. Cultural Basis of Difference. 1, 1. Westport, CT. Bargin & Garvey. Stehle Wolfgang and Ernee Ronel (2007). Transfer of Human Resource Practices from German Multinational Enterprises to Asian Subsidiaries. Research and Practice in Human Resource Management.

Case for Analysis Covington Corrugated Parts - 1173 Words

Case For Analysis: Covington Corrugated Parts amp; Services Abstract Covington Corrugated Parts amp; Services is a Virginia based company providing precision machine parts and services to the domestic corrugated box and paperboard industry. The business is owned by Larisa Harrison and operates from a 50,000 square foot factory in the rural Shenandoah Valley with 150 employees, many of them now nearing retirement. Due to changes in the economy and new competition their dominant 70 percent of the market share is rapidly declining. While management was focused on building the business, the box and paperboard industry was changing; plastics and reusable containers were becoming more prevalent. Management is now faced with the task†¦show more content†¦The company’s managers have differing opinions on which path the company should take to achieve growth and the current structure is not designed for the challenges they face. Major Issues While management was focused on getting the job done the external environment changed. New competitors and higher quality machines were changing the manufacturing industry and the company lacks a strategy to change with it. Each of Covington’s managers has a different vision of the company’s future making consensus and decision-making a major issue. The lines of authority and responsibility are blurry, causing conflict between managers and department directors. The latest manager’s meeting can be described as chaos. An additional issue facing the management team is the replacement of the workforce being lost to attrition. The loyal, hard-working employees have set a high standard for future members of the Covington team and the younger generation has not yet established themselves as a similar strength workforce. Problem Analysis In the past two decades Covington has been successful operating without a clearly defined organizational purpose. While this organizational design was not a problem in the past, it is now a threat to the company. The latest quarterly earnings illustrate that the once stable Covington is not

The Legal Definition Of Terrorism - 960 Words

Most citizens would define terrorism as using force to influence or change a political decision, â€Å"the legal definition of terrorism has very high importance† (Hodgson). This is because it determines which actions count as acts of terrorism, and hence who is regarded as a terrorist, but also because the definition of terrorism opens up a range of controversy of police and prosecutorial powers. Terrorism has always been an iffy subject to talk about and define. In its original text, terrorism was closely associated with the ideals of virtue and democracy. Terrorism now is the harming and/or killing of civilians and the damaging of property while causing economic harm for the reasons that the terrorist are trying to portray by violence. Understanding all the pieces to the puzzle the government and Americans go through on a daily basis, most would agree that terrorism is the worst thing to happen in the world, aren’t physically able to handle it, but are asked to deal with it while the government and military try to find a positive solution. Terrorism is something people in the world need to understand the true meaning of, and it means the use of violence and intimidation in the pursuit of political point. When looking at the outline of terrorism from the outside point of view there are three different ways to see it: the terrorist’s, the victim’s, and the general public’s. â€Å"The phrase â€Å"one man’s terrorist is another man’s freedom fighter† is a view terrorists themselves wouldShow MoreRelatedGovernmental Agencies and Terrorism640 Words   |  3 PagesAfter the 9/11 attacks the word terrorism became etched in the worlds vocabulary. The word Terrorism immediately brings up images of bombings and hooded figures making demands on a home video. But when organizations tasked with defending against the treat of terrorism, begin to shape their operations, it also shape tire definition. The gathering and analysis of intelligence is the driving force in the Central Intelligence agency (CIA). So much so that it’s right in the name. So when the CIARead MoreThe Issue Of International Law1695 Words   |  7 Pages(including terrorism), whilst respecting individual state sovereignty and maintaining maximum participation of states. How effective is International Law in achieving this aim? What are the pitfalls and how might these be removed or the effects ameliorated? The term terrorism originated during the French revolution (1789-1799), referring to attempts by the new regime to consolidate its power and intimidate opponents who still supported the old monarchy. Ironically, many definitions of terrorism excludeRead MoreThe U.s. Military Response985 Words   |  4 Pagesresponsibility for terrorist acts. This essay aims to argue that such change has been significant and it has satisfactorily countenanced states’ response to terrorism by presenting evidence of new state practice plus opinio juris in this area. To do so, this essay will first discuss the controversial concept of terrorism and its relevance to the legal framework for the use of armed force in international law. From here, it will move to explicate the principles of and grounds for state responsibility asRead MoreTerrorism And Its Effects On Terrorism Essay1442 Words   |  6 PagesTerrorism iscertainly not innovative and despite the fact it has been documented throughout h istory, it is moderately difficult to define what terrorism is. When discussing terrorism, it is publicly implied as either utilizing or threatingthe brutality in order to supplement a political cause, which can be confusing as there isn’t a universally approved definition towards terrorism. For instance, the Global Terrorism Index hasanalysed that 64,000 people were killed by specific enactments of terrorismRead More The Terrorist’s Extradition Loophole Essay1064 Words   |  5 Pagesprotect terrorists, whether or not that is their actual intention. It also gives the terrorist legal recourse to avoid extradition for the crimes that were committed. If nothing else, this exemption allows the terrorist to stall the process of justice while awaiting a ruling on whether the terrorist act should be considered a â€Å"political offense.† The United Nations has condemned all forms of terrorism, but what exactly that means is still up for debate. Most states would probably be willing toRead MoreDirector Of Fice Of Homeland Security Essay1497 Words   |  6 Pagesinclude information which I believe will help assist each department head present to better understand homeland security function and responsibility to ensure the security of our city. Also include is the legal basis for Homeland Security, description, mission statement, the definitions of terrorism foreign and domestic, hazards with summary to 5 key points. Fact: Homeland Security Act of 2002 Public Law 107-296 107th Congress, was ratified by the US Senate and House of Representatives to safeguardRead MoreTerrorism, Cia, And South America1062 Words   |  5 PagesTerrorism, CIA, and South America Terrorism. This word has caused more change in the 21st century than any other thought, policy, or idea. This change can not only be seen in the political realm, but in the academic realm as well. Since the attacks on September 11, the study and research of terrorism has grown exponentially. One area of research that is gaining popularity is whether or not the United States itself has participated in acts of terrorism as defined by the CIA. The largest of theseRead MoreTerrorism Between Terrorism And Terrorism1207 Words   |  5 PagesQuestion † What trends are evident in terrorism over the past 5 years? How have these trends impacted on the ways in which counter terrorism has responded in the Australian context? Introduction Terrorism poses a serious security challenge to the Australia and globally as it prevalence has increased over a decade although less attacks occur in the Western nations. The purpose of this assignment is to examine what trends and terrorist tactics are evident internationally over the past 5 years andRead MoreThe Menace of Bioterrorism: A Strict Policy and a Universal Legal Framework Necessary1070 Words   |  4 Pagespaper seeks to look at the legal pitfalls that exist in reference to the idea of bio terrorism and the difficulty that there are in addressing the idea at a global level. There are real legal obstacles or shortcomings to the war against terror and in particular to the idea of bioterrorism. It is quite unclear at the global level what agents constitute biological weapons, and for the few known or categorized agents, there is no definite quantity that has been given a global legal framework to be able toRead MoreA Behavioral Analysis Of John Brown s Martyr Or Terroris t1167 Words   |  5 PagesIn â€Å"A Behavioral Analysis of John Brown: Martyr or Terrorist,† James N. Gilbert effectively argues that John Brown’s inhumane actions clearly conform to a modern definition of a domestic terrorist. Gilbert argues that Brown justified his inhumane actions by proclaiming adherence to high political and moral values. Gilbert is a professor and former chair of the department of criminal justice at the University of Nebraska-Kearney who specializes in criminal investigative theory. In fact, Gilbert authored

Terrorism Between Saudi Arabia And Iran - 1270 Words

On January 2nd, 2016, Saudi Arabia executed 47 people on terrorism charges, including prominent Shiite Saudi cleric Nimr al-Nimr . Protestors in predominantly Shiite Iran promptly set fire to the Saudi embassy in Tehran, while the Iranian foreign minister denounced Saudi Arabia’s actions. Saudi Arabia then severed all diplomatic ties with Iran, and many of their Sunni monarchist allies have done the same. Over the past week and a half, the Gulf has rapidly become a battleground, with countries being forced to choose a side in this sectarian quarrel. In order to preserve short-term peace, countries must follow America’s lead and remain neutral in this conflict. Saudi Arabia and Iran each follow a different sect of Islam, Sunni or Shia, the†¦show more content†¦But the difference between Saudi Arabia and Iran goes deeper than just religion: the majority of the Gulf’s fossil fuel is located under Shia territory . Even in Saudi Arabia, the oil reserves are located in the east, underneath a province with a majority Shiite population. Saudi Sunnis thus have reason to be afraid that Saudi Shiites might one day secede from Saudi Arabia with their oil and ally with Shiite Iran. This fear is echoed in other Gulf countries as well: Bahrain, a Sunni monarchy, is dealing with the same issue, and Saudi Arabia helped squash a Bahraini version of the Arab Spring uprising in Bahrain in 2011 This issue has grown more sensitive in recent years: â€Å"The 2003 U.S. invasion of Iraq overturned Saddam Hussein’s minority Sunni regime, and empowered the pro-Iranian Shiite majority. Nimr himself said in 2009 that Saudi Shiites would call fo r secession if the Saudi government didn’t improve its treatment of them† . Saudi Arabia, with its authoritarian views, had many reasons to arrest and suppress with dissenting views, like those of Nimr al-Nimr. This dispute could escalate into armed conflict. The Arab response to this dispute is one of solidarity with Saudi Arabia. Countries that have taken a pro-Saudi position include Jordan, Djibouti, Turkey, Sudan, Bahrain, Qatar, Kuwait, and the United Arab Emirates (UAE) . Bahrain, Sudan, and Saudi Arabia have severed all diplomatic ties with Iran, the UAE

Retail Technology in Australia for Mobile Payment - myassignmenthelp

Question: Discuss about theRetail Technology in Australia for Mobile Payment Solutions. Answer: From the overall discussion it can be concluded that there are numbers of technological tools introduced in the retailing sectors of Australia are helping both the staffs and the customers simultaneously. Well known retailers in Australia are Woolworts, Coles, Westfield, Aldi and Costco are using the latest technologies like- Mobile Payment Solutions, Omnichannel- from buzzword to benchmark, Rise in Faster Shipping Option, Retail Centric Apps etc. these apps are very helpful in expansion of retail sectors and providing customer satisfaction in both online and at store shopping. With this there are number of technological tools introduced helping both the customers and staff to get the work done quickly these includes- Bar Code Technology, Radio Frequency Identification (RFID), Electronic Self Signage, Interactive Kiosk, Body Scanning, Electronic Point of Scale (EPOS) Technologies etc. it is to be noted here that as far as customer satisfaction is concerned these IT Tools are very ben eficial, but on part of staff as they are making their task easier, but at the same time reduce the number of staffs previously required. The interactive kiosk furnishes an example of such tool, which gives the desired information to the customers without any help from the staffs. Retail Technology in Australia The introduction of new technologies in the retailing sector actually helps to improve customers experience while shopping in the supermarkets. In 2017 the following four trends of technological can be noticed. Mobile Payment Solutions In the Australian retail market mobile payment is getting acceptance. Most of the Australian retailers have already adopted this method of payment and others are making efforts to do so. The retailers have different options available in the market to select which one suits best for them like- Retail Point of System (Retail POS), custom mobile payment apps (Coles Mobile Wallet) and third party option (Apple Pay) (Stein Ramaseshan, 2016). Omnichannel- from buzzword to benchmark It is very much essential to the retailers to understand that the need of modern customers cannot be fulfilled through one channel of operation. To maximize their sales the retailers need to push their Omnichannel strategy throughout the so that they can fulfill the demand of their customers of click and collect, but this system can be challenging for the retailers not able to develop such system (Armstrong et al., 2014). Rise in Faster Shipping Option As free shipping is common now, consumers are looking for fastest delivery of their products. Consumers are now ready to pay around $15 or more to get their purchased product delivered within three to four hours of purchase. Even if same day delivery is not essential for many customers but they expect their goods to be delivered within 2-3 days, instead of 7-10 days. Retail Centric Apps With the emergence of new technologies in retail sectors, the consumers are able to shop according to their convenience. Thats why the retailers are expected to use retail centric new technologies and third party solutions to serve the need of modern consumers efficiently. Instagram is used by many retailers to sell their products quickly and easily, with the use of solutions like- Like2Buy, Tapshop and Soldsie etc. Woolworts, Coles, Westfield, Aldi and Costco are the well known retailers in Australia (Price, 2016). Importance of Customer and Staff Experience Retailing sector is the one which is very much affected by the economic downturn. It has permanently changed the way consumers shop whether online or in-store kiosk. After recession there is a change in consumers shopping paradigm- selective and target marketing. Consumers are now looking of trust relationship with the retailers. Although it is the brand which brings the customers to the stores or online, but ultimately it is their experience which develops customer loyalty (Mortimer, 2017). Types of Technologies Used in Retailing Sectors There are number of IT tools used in retailing sectors in Australia to keep track of their stocks according to the customers demand, at the same time huge inventories are not affordable because it will adversely affect the profit margins by increasing the costs. To perform these tasks the Australian retailers are using- Customer Relationship Management, Electronic Data Interchange, Inventory Management and Supply Chain Management. Technology has covered entire process of retailing from manufacturing, storage in warehouse, and distribution to different stores and finally sales (Wright et al., 2015). The Automated Identification and Data Capture (AICD) Technologies is used in all the retailing sectors in Australia to meet the demand of the business. Customers experience with these technologies is discussed here. Bar Code Technology Bar code technology is used in all the retail sectors of Australia for product marking and identification. In the retail sector each and every product has been given Product ID that is item code or product code, which is used at the time of billing (Greenland, 2016). The bar coding system by scanning the product automatically fed the data into the system, this saves the billing time of staff because they dont need to punch it manually through the keyboard. It also helps the staff to quickly locate and monitor the product, check the number of pieces. In up-selling, cross-selling, and in-store marketing the bar coding solutions play an important role. When it comes to the convenience of the customers in Australian retail sector, the bar coding solution helps fast checkouts, reduces queues, this time saving experience increases customers visit to store (Ferguson et al., 2016). Radio Frequency Identification (RFID) The RFID is an important IT Tool used by Australian retailers which helps to trace a product taken without payment at the exit. The RFID is a very helpful tool for the staff as it helps in the process of inventory tracing, stock maintenance and automated checkout. Moreover, this technology is taking care of the cost of around 33 percent of front-end store and 50 percent of the back-end store (Petersen, Person Nash, 2014). Electronic Self Signage The electronic shelf signages are electronic display panels used in Australian retail market. Product description, schemes and offers provided by the retailer is displayed through this. This tool actually helps the customers to know about the products as well as any offer on them. Pricing of the products can be updated immediately through the computer software, although the pricing and promotional labels still require manual attachment, this creates duplicity of data and acknowledged as human error. This problem of the staff can be resolved by implementing automated electronic LCD connected with back end computers (Neupane, 2015). This will help in saving staff time and reducing human errors. Interactive Kiosk Interactive kiosk is another type of computer used in Australian retail sectors. With the help of this touch screen computer customers get information about the products. Video kiosk can provide an entire map of the store helping the customers to locate their desired products easily without moving around the store. Kiosk is a very beneficial technology for both the customers and retailer. On the other hand it reduces the number of required staffs, because all the desired information required by the customers is available automatically, reducing need of staff assistance (Boyd, Tuckey Winefield, 2014). Body Scanning Body scanning is another technological tool installed in most of the Australian retail sector. This computerized system takes body measurements helping both the staff and the customer to get the right size of clothing. This machine takes measurement of shopper from different angles and generates 3D model. This technique is very useful when the customers demand to manufacture clothes according to particular measurement as well as alteration of clothes (Prasad et al., 2016). This machine is useful to get the customer their desired product and useful to the retailer and staff to deliver desired product. Electronic Point of Scale (EPOS) Technologies The EPOS is computer base billing system, generally used retailers having huge number of sales, stocks and customers. In almost all the retailing sectors in Australia EPOS are used to produce accurate bills. Moreover, it helps to maintain customer and sales data base, which is very useful information to frame the future decisions of the company. This is a very helpful technology for the staff to increase efficiency in billing, quick payment, inventory updates and instantly reports on sales and stocks (Boyd, Tuckey Winefield, 2014). Conclusion Questionnaire used for Qualitative Analysis Questionnaire for Staff Interview in Retail Technology What do you think about the new technological tools used in the retail sectors? How efficiently these tools are working? Is the Bar Code Technology helping the staff to do the billing quickly? Is the use of Interactive Kiosk has reduced the desired number of staff for customer assistance. Is the Radio Frequency Identification (RFID) is helping to keep track of the goods, take without billing? Questionnaire for Customer Satisfaction Interview in Retail Technology The retail technology used in retail sectors, how customer friendly they are? Is Interactive Kiosk is helpful in finding the desired products quickly? Have you experienced the Body Scanning technology? Is it providing the accurate measurement? Is the Bar Code technology used by the retailer is saving your time at the time of billing? References Stein, A., Ramaseshan, B. (2016). Towards the identification of customer experience touch point elements. Journal of Retailing and Consumer Services, 30, 8-19. Armstrong, G., Adam, S., Denize, S., Kotler, P. (2014). Principles of marketing. Pearson Australia. Price, R. (2016). Controlling routine front line service workers: an Australian retail supermarket case. Work, employment and society, 30(6), 915-931. Mortimer, G. (2017). Why Australian supermarkets continue to look to the UK for leadership. The Conversation, (20). Wright, J., Kamp, E., White, M., Adams, J., Sowden, S. (2015). Food at checkouts in non-food stores: a cross-sectional study of a large indoor shopping mall. Public health nutrition, 18(15), 2786-2793. Greenland, S. J. (2016). The Australian experience following plain packaging: the impact on tobacco branding. Addiction, 111(12), 2248-2258. Ferguson, M., O'dea, K., Chatfield, M., Moodie, M., Altman, J., Brimblecombe, J. (2016). The comparative cost of food and beverages at remote Indigenous communities, Northern Territory, Australia. Australian and New Zealand journal of public health, 40(S1). Singh-Peterson, L., Lawrence, G. (2015). Insights into community vulnerability and resilience following natural disasters: perspectives with food retailers in Northern NSW, Australia. Local Environment, 20(7), 782-795. Petersen, L. B., Person, R., Nash, C. (2014). Connect: How to Use Data and Experience Marketing to Create Lifetime Customers. John Wiley Sons. Neupane, R. (2015). The effects of brand image on customer satisfaction and loyalty intention in retail super market chain UK. International Journal of Social Sciences and Management, 2(1), 9-26. Boyd, C. M., Tuckey, M. R., Winefield, A. H. (2014). Perceived effects of organizational downsizing and staff cuts on the stress experience: The role of resources. Stress and Health, 30(1), 53-64. Prasad, K. D. V., Vaidya, R., Kumar, V. A., Prasad, K. D. V. (2016). An Emprical Study On The Causes Of Occupational Stress And Its Ffect On Performance At The Workplace Of Supermarkets In Hyderabad.