Economic Growth In Northern And Eastern Province Finance Essay - Free Essay Example

Sample details Pages: 12 Words: 3553 Downloads: 8 Date added: 2017/06/26 Category Finance Essay Type Analytical essay Did you like this example? Ever since the LTTE was defeated in May 2009, there has been just one thought on the business communitys minds opportunities for growth in the North and East provinces. However, business confidence was low due to the political instability in the country at that time. But, following the results of the recently held Presidential and Parliamentary Elections, the emergent political stability for the foreseeable future has restored investor confidence. Don’t waste time! Our writers will create an original "Economic Growth In Northern And Eastern Province Finance Essay" essay for you Create order With abundant man-power and land availability coupled with the massive infrastructure development taking place and incentives provided for investment in the area, almost all industries are trying to grab a piece of the pie. In addition to the local investors, the government has also taken steps to attract foreign direct investments in the region. However, their success will be determined by their ability to raise finance for their planned investments. BANKING INDUSTRY Blue chip companies have the option of generating funds through the sale of equities in the form of IPOs and rights issues. However, most Sri Lankan businesses are small and medium sized enterprises most of which are not attracted by the option of sharing ownership through the sale of shares. Hence they look towards banks to provide financial solutions for their investments. The banking industry is one of the most profitable industries in the island. With the above scenario of businesses clamoring to obtain funds for their investments, the banking industry has turned into a vital business partner without which nothing can happen. This is also the opportunity that each bank has to create a reputation for itself in Project Financing. In order to meet these needs, banks have to undergo expansion. The Sri Lankan banking industry comprises of licensed commercial banks, licensed specialized banks and registered finance companies. The licensed commercial banks comprise of what can be termed as state banks, domestic private banks and foreign private banks. It is these institutions, the licensed commercial banks, numbering 22, which fight for the spoils in a very profitable industry. The two state banks have an advantage since they are used by the government for its numerous projects. The foreign banks, 11 in number, have an advantage where-in they are able to provide funds for large investments by approaching their world-wide groups. It should be noted that the foreign banks have increased their stake in credit advances in recent times. It is the nine domestic private banks which have to strive hard to win over clients through capitalizing on their very own competitive edge. Furthermore, the domestic private banks also face some competition from the 14 development banks (categorized under licensed specialized banks) which normally make the first move in the project finance sector. THE NEED FOR RISK MANAGEMENT With increasing regulation in the banking industry, banks have to balance their potential profitability against risk of loans turning into non performing advances. For instance, over-exposure to a particular industry could result in losses if the industry fails. In addition, the selection of a wrong location to establish a bank branch would result in poor customer attraction. Thus, Risk Management has come to the forefront of all activities connected to banks. Stringent credit tests need to be undertaken to weed out poor investments and banks would have to reduce risk by getting involved in a range of industries. Banks presently focus on risks relating to nonpayment of advances and exposure to a particular industry. However, they would also have to take into account knowledge risk, relationship risk, operational risk etc. when taking decisions as all these play a role in the final decision. Furthermore, relationship risk is of significance since people in the region place their faith in financial institutions based on relationships. Therefore, in an environment of economic growth where the demand for credit is rising, banks have to be careful of the options they select. Diving head-on into any mildly feasible project or haphazard selection of expansion tactics will spell disaster. It is here that the management should ensure that effective risk management strategies are in place and a right balance is struck between profitability, expansion and risk exposure. PUBLICATION An analysis of the above scenario is seeking publication in a magazine/newspaper catering to bankers and professionals across other industries. I have short listed the following publications; The Banker is a quarterly publication by the Institute of Bankers in Sri Lanka. This is the only local industry journal and covers all aspects of the banking industry in the country. With its circulation of 16,000 reaching industry professionals, its position as a journal makes it a good medium for any industry related articles. Its only drawbacks are that articles have a ceiling limit of 1,500 words, is highly technical and focuses little on strategy. The Financial Times is Sri Lankas only financial daily. Launched in 2009, it covers news items on local and foreign businesses while giving more emphasis to domestic issues. It also consists of articles relating to business strategy across varying industries on a weekly basis. With its core readership being financial sector employees and business analysts, this newspaper would be an ideal platform to capture the attention of my target audience. Lanka Monthly Digest (LMD) is the island nations leading business magazine with a monthly readership of nearly 20,000 and a target readership which comprises business and opinion leaders, senior managers and professionals. Its content comprise chiefly of current affairs, business and politics relating to the domestic environment. However, it provides little emphasis on the local banking industry. I firmly believe that my article, which takes into account the need for risk management in an environment of economic growth potential is a timely read for professionals in the banking and financial services industries, and as such would be of interest to the readership of the above three magazines. However, The Financial Times emphasis on local business news and investment opportunities making it the preferred read for investors, bankers and business analysts influences me to make it the chosen publication for my article. I believe that this newspapers readership would benefit from the points raised from the banking industry perspective on tackling growth and risk management. It could also be a starting point of debate on what the future holds for the banking industry and strategies to be implemented in the current economic climate. Word Count: 1059 words TASK TWO THE BALANCING ACT ECONOMIC GROWTH, RISK EXPANSION ECONOMIC GROWTH Sri Lanka has received its third opportunity to turn around its economy. Following independence in 1948 and opening up of the economy in 1977, the end of the conflict in the Northern and Eastern parts of the country in May 2009 has bought with it opportunities hitherto inaccessible. The infrastructure development currently taking place together with the abundant man power, availability of land, proximity to Trincomalee port and government incentives for investment in the region has made the Northern and Eastern Provinces hot spots for investors. At present, analysts forecast that bids for investment in tourism, agriculture, fisheries and manufacturing sectors will increase in the region. While blue chip organizations will undertake most of the large scale investments, many small and medium enterprises have been queuing up to grab a piece of the pie. This is where the banking industry comes into play as more than 95% of the investors are bound to approach banks for funding. The Sri Lankan banking industry has performed reasonably well over the past few years. Profit before tax of all Licensed Commercial Banks reached Rs. 27.6 billion for the year ended 2009 while registering a growth of 9.3 per cent. On average, the banks are taxed nearly 60% of their earnings. However, the Sri Lankan banks have comfortably managed to remain on the black despite 2009 being a tough year due to the heightened war and global recession. To-date, business ventures based themselves in the Western Province primarily due to infrastructure availability. However, with the ending of the war and the development activities in the other regions as well as in the Northern and Eastern Provinces, banks have begun expeditiously establishing their presence in certain areas. The 2009 Central Bank Annual Report states that The number of new bank branches opened by Licensed Commercial Banks was 49, of which 38 were outside the Western Province. Further, out of the 49 new bank branches 17 branches were opened in the Eastern Province while 10 branches were opened in the Northern Province. This indicates that banks have begun expanding their operations to meet the demand. It also shows that the banks have recognized the need to build relationships with the community in order to help them get them back on their own two feet. In the long term, a step by step approach would assist banks to increase their volume of retail banking activities due to the fact that, with time and economic development of the region, people tend to turn to banks for other financing solutions. However, corporate banking is a different kettle of fish. The recent decrease in interest rates to around 10% to 13%(the lowest in recent times) and the Central Banks special lines of credit for the agriculture and livestock sectors, Small Medium Enterprises, and development programmes such as Eastern Rising and Awakening North, have resulted in a massive demand for project finance. Offering advances for investments which comply with the special lines of credit category provide banks the room to earn more profits since the cost of obtaining funds for those loans is lower than the market rate of obtaining funds to provide advances to loan applicants under normal circumstances. The Central Banks above-mentioned initiatives would not only assist entrepreneurs obtain cheaper funds, but also provide banks with opportunities for increased profitability. However, the demand for advances also means that commercial banks have to face increased competition among themselves and with development banks to win over large clients. While negotiating with SMEs tend to be a little easier considering their lower bargaining power and their fear of the application being rejected elsewhere, banks tend to struggle when negotiating with multi-nationals or conglomerates since they are able to look at other avenues of finance due to positive credit ratings and reputation as well as the promise of a slice of probable future banking needs, such as working capital, once operations start. Furthermore, not all projects succeed as planned, and with banks handing out more advances to maintain market share, they run the risk of their advances turning into non-performing loans which have now hit 8.8% (refer appendix table 3). In addition, setting up new branches and the expense involved in promoting the bank is a cost that most banks did not forecast. Therefore, while the positive economic climate is going to bring in more business, increased costs will have to be incurred to be able to meet the demand. Thus, if not managed properly, the economic growth could spell doom for some banks. RISK MANAGEMENT IN TIMES OF GROWTH The Sri Lankan banking industry managed to steer clear of the ills faced by the banking industry in the western world. However, the crisis in the west has resulted in domestic banks adopting extremely tight conditions which have to be complied with in order to get approval for advances. Despite being in an environment of economic growth, interest rates being lowered and demand for credit rising, the current sentiment expressed by entrepreneurs is that they are not getting advances they apply for. While banks are right to protect their interests and ensure they keep their non-performing loans at a minimum, their tight financial risk management policies have blocked them from earning as much as they can. Furthermore, operational risk management strategies have also limited the scope of intuitive judgment. Thus, employees are constrained by not being able to proceed with attractive options till the necessary controls have been complied with. In comparison, banks have devoted insufficient attention to knowledge risk and relationship risk. In these times of economic growth, banks should ensure that their personnel are consistently provided with training and education programmes on the developments in different industries and market trends. An absence of knowledge of the market could result in evaluators turning down applications for profitable ventures. Furthermore, in an industry operating largely on the strength of relationships and an environment where it is the retail customers who set up SMEs, banks run the risk of losing customers to competitors who accommodate their request for advances. Therefore banks have to ensure that they give as much support to their clients as possible. After all, when it comes to an enterprise, a lost customer also means a loss of all the future business, such as leasing, current accounts, overdrafts etc., he would carry out once the venture gets off the ground. EXPANSION The banking industry has recognized the need to establish a presence in the Northern and Eastern areas. However, this was not something they envisaged when budgets were drawn up at the end of the year. For instance, Sampath Bank has now drawn up a strategy to open their 200th branch by end 2011 (they had 131 at end 2009). But selection of locations in North and East would not be easy since infrastructure development projects are still to be completed and the people have barely begun returning to their homes. However, early movement into the region would provide them with the opportunity to establish a relationship with the community and begin retail banking activities. While retail banking would be slow to pick up and provide returns, a presence is nevertheless important to assist business ventures which have already started or are proposed to start in the region. However, expansion is more than simply setting up branches. Some analysts are of the opinion that with 22 licensed commercial banks and 14 licensed specialized banks, the Sri Lankan banking industry is too crowded and mergers would bring about improved efficiency and profits. However, with single shareholder ownership limits, acting in concert rules and anti-competitive laws in place, this seems highly unlikely at present. Furthermore, the Sampath Bank-HNB takeover incident in 2000 and the 2009 Commercial Bank ownership tussle indicate that directors of banks are loath to takeovers of any sort. This leaves the banks with the option of Market Development and Product Development. At present, none of the domestic private banks and foreign banks has a presence in the districts of Kilinochchi, Mannar and Mullaitivu while certain domestic private banks have only one or two branches in Trincomalee, Batticaloa and Vavuniya districts. However, Bank of Ceylon and Peoples Bank, the state-backed banks, have a considerable presence in the area connected to its online network. It is safe to say that they have already obtained the first mover advantage. Under these circumstances, a strategy for the private domestic banks would involve identification of a suitable location to set up the branch, identification of which products to sell and then a considerable amount of expenditure in promotions and marketing staff. The marketing arm would need to sell their existing products to a segment of the population who may already bank with their competitors the state banks. Thus pricing should be carried out carefully. Initially, basic instruments such as different savings accounts, current accounts, housing loans, leasing facilities and ATM networks would be sufficient. However, these banks would also have to meet the needs of the corporate clients who invest in the region. Thus the expansion strategy would have take into account the relevant banks level of involvement in the area before setting up a branch. Furthermore, risk evaluations have to be carried out to forecast the potential earnings in the long run since the branches would provide a positive return only in the medium-term period. While a physical presence in the area would cover one part of the strategy, the balance part would require adapting products to suit the needs of the corporate clients. Standard products would be difficult to sell considering the different environment of operations in the region. Meanwhile, risk management should be carried out effectively to ensure that non performing advances are kept to a minimum. Thus, the balancing of the opportunity for growth, the requirement to follow risk management procedures and the need expand operations while maintaining profitability is something the banks will have to carefully consider in the coming months. MARKETING IN THE INDUSTRY The above scenario would necessitate a change in the manner in which marketing professionals carry out their work. Hitherto, financial solutions were first created and then the task of attracting customers was given to the marketers. The Sri Lankan financial market still trades in basic savings and credit instruments and therefore the risk is low. Furthermore, most customers are aware of the various instruments. It was simply a matter of convincing the clients to make use of the variety of financial solutions. A change in the status quo could pose a problem to the marketing profession in the banking industry as it employs few pure marketers. In Sri Lanka, in order to be promoted, even marketers have to arm themselves with academic or professional qualifications in banking. Therefore, marketers in the industry would also have to gear themselves with knowledge on business, finance and statistics. Furthermore, in an environment where banks have to be a partner in most business ventures, marketers would now have to play a more pro-active role in the field of corporate banking. They will have to attract customers by analyzing the investment market, opportunities for growth and then lure existing business ventures to actively engage in business in the northern and eastern regions. Simply said, they have to be a step ahead of the investors and provide the enterprises with the opportunities to do business in, instead of businesses seeking opportunities and then approaching banks for finance. This would require considerable investments in knowledge management. Furthermore, marketing professionals, as individuals, would have to invest more time in keeping a tab on available business opportunities as well as conduct studies on various industries and segments in each industry which would stand to benefit from the opportunities in the North and East. They will also have to strengthen ne gotiation skills to be able to convince corporate clients to sign up with their bank. In both, retail banking and corporate banking, customer relationships are a vital component since, in a climate of growth, a loss of a client would also result in the loss of further business the customer would have bought in through positive word of mouth and turning towards the bank for financial solutions to unrelated problems. Hence, marketers will have to be more courteous in service and establish better bonds. This means that marketing professionals would have to ensure that customer relationship strategies are strengthened while carrying out operations. TIME TO GET THINGS STARTED FAST Private domestic banks would have to get things rolling fast if they are to grab a slice of the retail banking share in the North and East provinces. Adjustments need to be incorporated into strategic plans and implemented. Furthermore, risk management strategies have to be reviewed and strengthened while taking into account relationship risk, knowledge risk and operational risks when dealing with corporate clients. And for all this to succeed, the marketers would have to change their approach and get ahead of the game by updating themselves on the advances in each industry and developments in the Northern and Eastern provinces. Word Count: 2150 Words REFERENCES Central Bank of Sri Lanka Annual Report 2009, report on Financial Sector Development Available at: https://www.cbsl.gov.lk/pics_n_docs/10_pub/_docs/efr/annual_report/ar2009e/PDF/12_chapter_08.pdf [Accessed 21 April 2010] Medium Term Macro Economic Policies and Challenges Central Bank of Sri Lanka Available at: https://www.cbsl.gov.lk/pics_n_docs/10_pub/_docs/efr/annual_report/ar2009e/PDF/5_chapter_01.pdf [Accessed 21 April 2010] LMD magazine Available at: https://www.lmd.lk/2010/April/about.htm [Accessed 22 April 2010] Financial Sector Assessment of Sri Lanka by Asian Development Bank Available at: https://www.adb.org/documents/assessments/financial/SRI-financial-sector-assessment-2005.pdf [Accessed 23 April 2010] BOI incentives for Northern and Eastern Provinces Available at: https://www.boi.lk/2009/pdf/Eastern%20%20Northern.pdf [Accessed 5 May 2010] Central Bank Key Economic Indicators Interest Rates Available at: https://www.cbsl.gov.lk/pics_n_docs/10_pub/_docs/efr/annual_report/ar2009e/PDF/3.pdf [Accessed 5 May 2010] Selected Financial Performance Indicators in the Banking Industry 1998-2009 Available at: https://www.cbsl.gov.lk/pics_n_docs/08_stat/_docs/xls_financial_sector/table5.04.xls [Accessed 5 May 2010] Association of Professional Bankers of Sri Lanka Available at: https://www.apbsrilanka.org/general/aboutus.html [Accessed 22 April 2010] Regulation of the Banking and Related Sectors in Sri Lanka by Ms. Joan De Zilva, Director, Bank Supervision, Central Bank of Sri Lanka Available at: https://www.ips.lk/events/workshops/22_07_2004_ria/papers/joan_de_zilva_banking_supervision.pdf [Accessed 5 May 2010] Sri Lanka Sector Quarterly Update Third Quarter 2009 Available at: https://www.wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2009/11/24/000334955_20091124015756/Rendered/PDF/517720NEWS0Sri10Box342045B01PUBLIC1.pdf [Accessed 7 May 2010] World Bank Sri Lanka Economic Update, April 2010 Available at: https://www.wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2010/05/27/000334955_20100527074112/Rendered/PDF/547290WP0SriLa10Box349429B01PUBLIC1.pdf [Accessed 24 May 2010] Central bank of Sri Lanka Recent Economic Developments Highlights of 2009 and Prospects for 2010 Available at: https://www.cbsl.gov.lk/pics_n_docs/10_pub/_docs/efr/recent_economic_development/Red09En/data_e_2009_10/red_chap_8.pdf [Accessed 26 May 2010]

NO GUI Delphi Applications

​Console applications are pure 32-bit Windows programs that run without a graphical interface. When a console application is started, Windows creates a text-mode console window through which the user can interact with the application. These applications typically dont require much user input. All the information a console application needs can be provided through  command line parameters. For students, console applications will simplify learning Pascal and Delphi - after all, all the Pascal introductory examples are just console applications. New:  Console Application Heres how to quickly build console applications that run without a graphical interface. If you have a Delphi version newer than 4, than all you have to do is to use the Console Application Wizard. Delphi 5 introduced the console application wizard. You can reach it by pointing to File|New, this opens up a New Items dialog - in the New page select the Console Application. Note that in Delphi 6 the icon that represents a console application looks different. Double click the icon and the wizard will set up a Delphi project ready to be compiled as a console application. While you could create console mode applications in all 32-bit versions of Delphi, its not an obvious process. Lets see what you need to do in Delphi versions 4 to create an empty console project. When you start Delphi, a new project with one empty form is created by default. You have to remove this form (a GUI element) and tell Delphi that you want a console mode app. This is what you should do: Select File New Application.Select Project Remove From Project.Select Unit1 (Form1) and OK. Delphi will remove the selected unit from the uses clause of the current project.Select Project View Source.Edit your project source file:†¢ Delete all the code inside begin and end.†¢ After the uses keyword, replace the Forms unit with SysUtils.†¢ Place {$APPTYPE CONSOLE} right under the program statement. You are now left with a very small program which looks much like a Turbo Pascal program which, if you compile it will produce a very small EXE. Note that a Delphi console program is not a DOS program because it is able to call Windows API functions and also use its own  resources. No matter how you have created a skeleton for a console application your editor should look like: program  Project1;{$APPTYPE CONSOLE}uses  SysUtils; begin// Insert user code hereend. This is nothing more than a standard  Delphi project file, the one with the  .dpr extension. The  program  keyword identifies this unit as a programs main source unit. When we run a project file from the IDE, Delphi uses the name of the Project file for the name of the EXE file that it creates - Delphi gives the project a default name until you save the project with a more meaningful name.The  $APPTYPE  directive controls whether to generate a Win32 console or graphical UI application. The {$APPTYPE CONSOLE} directive (equivalent to the /CC command-line option), tells the compiler to generate a console application.The  uses  keyword, as usual, lists all the units this unit uses (units that are part of a project). As you can see, the  SysUtils  unit is included by default. Another unit is included too, the  System  unit, though this is hidden from us.In between the  begin  ...  end  pair you add your code.

Workplace Analysis of the Psychological Contract Free Essays

string(98) " on Burnout in a Multigroup Analysis’, has documented the prevalence of gross labor violations\." The saying that mutual admiration within the workplace binds the workforce could be a pretext to harmonizing relationships between employees and employers. The mutual admiration could be working both ways of benefits, being beneficial to the result of work and the business endeavor. Thus, mutual admiration of workforce within the organizational setting of a workplace is perceived to tie the bond of commitment, reliability and trust, aside from the legal stipulations in a written contract of employment. We will write a custom essay sample on Workplace Analysis of the Psychological Contract or any similar topic only for you Order Now However, how a psychological contract does characterize the mutual values of consistency and guaranty between an employee and an employer? This basic question could be examined in the process of understanding the relationships and define the circumstances surrounding the situations in the workplace. This paper will discuss and analyze the psychological contract affecting the workplace, relating several issues being confronted by employees and employers. Defining psychological contract and its effect It would be important first to know what psychological contract is all about. As defined by Psychologists Janet Smithson and Sue Lewis from the Department of Psychology and Speech Pathology at the Manchester Metropolitan University, understanding the â€Å"psychological contract† is referred to as the â€Å"meeting of expectations† where both employee and employer aspires (Arygris 1960; in Price, Munden Solley 1962; in Smithson Lewis 2003: pp. 1-2). In layman’s definition, â€Å"meeting of expectations† could be exemplified by the performance of the employee towards work which is being expected by the employer to produce a quality, efficient and effective result. On the other hand, it is for the employer to provide the necessary wage and benefits, compensating the good result of performance of the employee. However, without meeting neither one nor any of the expectations could breach and defeat mutual concern. In which case, one of the results could be a defiance and conflict of interests, wherein work and labor related issues become a dilemma in the workplace. Psychological contract in contemporary working environment With the rapidly increasing growth in numbers and sizes of profitable organizations, human resource management experts and scholars perceive the development of a â€Å"standardized† labor policy and procedures in workforce deployment. Correlated to this perception is the indicated inclination of management leadership to eventually acknowledge the reform through labor treaties, specifically in recognizing the collective bargaining agreement with labor unions. However, â€Å"meeting of expectations† may still be a â€Å"one-sided† concern of the employer’s management due relevance of emerging diversified industries that may not totally materialize the â€Å"inclination† to reform the culture in a workplace. Kheeran Dharmawardena (2008) in his journal entitled: ‘The Changing Nature of the Psychological Contract and its Impact on Modern Organizations’, has examined the relevance of psychological contract from the early studies of several organizational experts. Dharmawardena synthesized the findings that scarcity of employment and security of tenure patterns the good performance of employees (Bergmann et. al. 2001; in Lester Kickul 2001; in Dharmawardena 2008: pp. 1-7). It may be analyzed that causal to the shortage of employment opportunities, the workforce retains the â€Å"showmanship† of performance, aspiring to achieve â€Å"job security† or long tenure of employment. The aspiration itself relinquish the â€Å"no-no attitude†, wherein retaining good performance in the distinction of skills and acquirement of further learning from the workplace extends the â€Å"systems thinking† as a psychological contract to upholding the need of being employed. Acknowledging the above analyses has related the perception of Cyril van de Ven, (2004) who viewed that the intensive diversified industrial trends increases the effects of unpredictable organizational change. Considering the unpredictability, most contemporary employers are decisive in achieving the sustainability of their organizations (especially the businesses that rely in the global supply chain) by acquiring the best possible workforce, workplace and market (Rousseau 1995; in Shore Tetrick 1994; in van de Ven 2004: pp. 1-11). It shows that this typical ambition of contemporary employers is relative to â€Å"systems thinking† of the employees, having the psychological contract to securing the profitability and existent ability to do business. In sum, the mutual concern of employee and employer attributes the psychological contract of sustaining the interest, in which narrates the desire or aspirations of the employment to co-exist in a secured and sustained working environment. Psychological contract and workplace issues This topical discussion features the subject matter pertaining to psychological contract and workplace issues. As an overview, the mutual aspect in sustaining overall organizational performance signifies the â€Å"oneness or belongingness† of membership to the organizational objective, referring to members and leadership. However, the situation of dissatisfaction and question of confidence becomes the common issue that is dealt with, specifically in employee and employer relationship. Janice Anna Knights and Barbara Jean Kennedy (2005), in their journal ‘Psychological Contract Violation: Impacts on Job Satisfaction and Organizational Commitment Among Australian Senior Public Servants’, has cited the finding that dissatisfaction and loss of confidence are perennial issues dreadfully affecting the psychological contract. According to Knights and Kennedy, the common violation to the value of satisfaction is being dismayed by the fact that what has been verbally promised is contradicted by lies. This can be exemplified by the failure of the organizational leadership in fulfilling the promise to the membership. Reflective of Knight’s and Kennedy’s ascription to psychological contract on that particular case of unfulfilled promises may not only result dissatisfaction or disappointment but a deliberate disparity that may lead to organizational collapse. It may also relate the situation in a workplace where the employees were not able to achieve the promised benefits and due compensation of labor, in which the psychological contract to expect or aspire the viability of employment has failed. In most cases of labor disputes, the unfulfilled delivery of legally or lawfully mandated wages and benefits is claimed to violate the laborer’s rights. The violation may in itself affect the psychological contract of the employee, being unsecured or unguaranteed to achieve the source of livelihood. Therefore, psychological contract extends the paranoia of defeated and unfulfilled envisioning for a beneficial workplace. In Cantisano et al. ’s (2007) journal, entitled: ‘Social Comparison and Perceived Breach of Psychological Contract: Their Effects on Burnout in a Multigroup Analysis’, has documented the prevalence of gross labor violations. You read "Workplace Analysis of the Psychological Contract" in category "Papers" Based on the exhibited data from the conducted study research, the responses of respondents ranging from lower-income to medium-income labor forces or employees suffer from â€Å"breach of psychological contract†. To cite, employer denial to providing the necessary and just compensation [as required by law] infringe the common aspiration of the workforce to obtain the reasonable share of labor. As further cited, the effect on the â€Å"breach of psychological contract† has indicated the respondent’s extreme anxiety, such as (1) negative social judgment referring to employee-employer relationship, (2) emotionally exhausted for being violated and abused, (3) feeling of cynicism or skeptic that employers are exploitative, and (4) loss of self confidence and esteem (Van der Zee et al. 2000; in Cantisano et al. 007: p. 125). Empowering psychological contract In relation to the previous discussions, Brian P. Niehoff and Robert J. Paul (2001) of the electronic magazine Review of Business have proposed the enabling of policies that may be supplemented to the existing labor laws. Accordingly, the 2001 data of incidence in committing labor-related violations has remarkably increased to an alarming 33,000 cases of labor malpractice pending before the investigation or proper promulgation of the National Labor Relations Board which piled up in ten years from 1991 (Niehoff Paul 2001: pp. -2). Niehoff and Paul (2001) have emphasized that â€Å"loose promises† in the workplace in order to encourage or attract the attention of the workforce. It may validate the negative thinking [of the already cynical employees] that employment is no longer beneficial and insensible to the aspirations of the workforce to gain social equity and equal treatment of labor. As cited, the disagreement point out to unreciprocated or unequalled performance of the employers to maintain the tenure of employment and sustainable income sourcing (Niehoff Paul 2001: pp. 3-4). Indicative of Neihoff and Paul’s proposal could harness the psychological contract within the workplace. Upholding the â€Å"sensitivity† of the employer would mean to fulfill the promise by granting the just compensation and rectify indiscriminate treatment, and abdicate the flawed promises. As cited, it may not only the conflict within the workplace that shall be settled but the whole process of the system, wherein workforce may only be survived by their â€Å"grim determination†, and the remainder of â€Å"self-belief† that contemplating on the issue could be the only way to obtain the psychological contract. However, the â€Å"culture of deceit† could be permanent or entangled in the protectionist character of employers, obviously protecting the business interest (Neihoff Paul 2001: pp. 3-4). Empowering the psychological contract can be objectively described in the organizational life of Pret a Manger, a leading sandwich biscuit company in the United Kingdom. In a contributed article of Psychologist Michael Wellin which was recently published by the electronic magazine Chief Executive Officer (CEO) of the SPG Media Limited, it quoted that: growing numbers of businesses apply the psychological contract convergent to forge organizational relationship between employees, the management and the company itself†. Dr. Wellin pointed out that the â€Å"trade secret† of Pret a Manger is the continuing openness of thoughts and understanding the situation, character and culture of the organization, where employees and employers are aware and much sensitive in dealing with the issues that relates the psychological contract. Dr. Wellin has found the strong importance of organizational values of Pret a Manger in dealing with the â€Å"mutuality of efforts† of both employees and employers. As cited, Pret a Manger has developed the organizational expectations by and between the employees and the management, such as follows in bulleted list below (Wellin 2008; in SPG Media Limited 2008: pp. 1-2): Management expectation on employee’s attitude towards work †¢ Sensible hard work; †¢ Prudently hilarious and easy to please; †¢ Have the benefit of good life; †¢ Work early to leave early. Employee’s expectation from Pret a Manger management †¢ Fairly compensated according to individual performance and position; †¢ Dynamic working environment of diverse workforce and skills; †¢ Provide development-education and skills training; Promotion of managers among the internal regular employees. Based on the findings on empowering the psychological contract, it appears that retaining the â€Å"mutuality of efforts†, referring to meeting the expectations of employees and employers, could paved the way towards achieving a dynamic and reliable collaboration or synergy in the workplace. This extends the analysis that fulfilling the psychological contract of the workforce systematizes and mobilizes their natural desires to sustain the viable means of the workplace, in which therefore meeting the expectations or objectives of the leadership at a judicious manner. It may also attribute the perception that the sensibility of an employer in upholding the employees expectations [as a psychological contract] could be considered as a social, moral and civic responsibility by promoting the rights and welfare of the labor force, wherein a more beneficial return will impart to the invested cost of values and as bonus to the margins of business profit. To further validate the analysis, it points out the situation that psychological contract eventually changes according to socio-economic, socio-cultural and socio-political changes. This can be exemplified by the previous discussions on the development of labor forces and markets that have been attributed by the rapidly changing business and policy environment as a result of â€Å"social diversification of industries†, keeping abreast at the global landscape of production and supply of goods. In short, psychological contract emerges in the â€Å"social and economic status† of the labor force. As cited, psychological contract always retains in the unstable or stable economic and political condition which reciprocate a particular situation (Pascale 1997; in Sharpe 2001). This can be exemplified by the prevailing global economic recession, in which the downturn of economies of highly developed and rich countries [like the US and some European countries] affects the domestic economies of undeveloped countries as a result of depleted purchasing power that as well decline the demand for labor market. Thus, the virtual effect of economic crises affects the â€Å"systems thinking† of the employees in a particular firm that may at anytime declare a bankruptcy and closes shop. The psychological contract on the expected security of tenure in employment would be at the brink of eventual loss. It may be further analyzed that workplace is an â€Å"economic-driven† organization that exist and operate its venture within a calculated business risks. The only dynamism could be indicated by feasibility studies along with planning and market testing. In this particular condition, unpredictability and uncertainty of employment may pattern the psychological contract of workforce in a workplace. Findings and conclusion This paper has found that psychological contract is characterized by the â€Å"social and economic values† pertaining to the mutual efforts and benefits of an employee and employer. In other words, there must be co-existing endeavor, agreements and appreciation to making effective, reliable and congruent the achievement of requirements and sharing of needs. However, the findings may have only analyzed the situational perception of a workplace, in which may needing the variations of reconsidering the overall â€Å"societal conditions†. What has then highlighted in the result of examining and analyzing the empirical studies derived and depicted in this paper is the fact that psychological contract can only be achieved by a consistent and truthful fulfillment of expectations, reassuring mutual efforts of employee and employer. It may be then concluded that psychological contract can be sustained by making productive the economic condition of every countries, good governance and the advancement of policy support on workforce and workplace issues. Thus, psychological contract attributes the achievement of an economically secured family and socially progressive population. How to cite Workplace Analysis of the Psychological Contract, Papers

Depending On The Demand For The Product â€Myassignmenhelp.Com

Question: Discuss About The Depending On The Demand For The Product? Answer: Introduction Whos it is a gadget that is very useful for the household these days. Safety and security had always been a matter of concern for most of the households. Sometimes the owners of the house feel unsecured as in if they open the door there might be some stranger or rogue who can tend to be harmful. For this reason, the ABC company has introduced their new gadget whos it. This gadget is an innovative product which will hit the market very soon and will be spread worldwide too, depending on the demand for the product. This will make life easy for the elderly people who are unable to run to the door every time the doorbell rings. The gadget will be provided with other accessories to give full support as required. Other accessories include a remote with a screen and a set of batteries for the remote. There will be a speaker too which will be audible in every nook and corner of the house (Baden-Fuller Haefliger, 2013). Goals and objective The goal of ABC Company is to deliver the best in convenience, quality and value for their customers. They have employed 500 people in two of their stores to manufacture the product. They have also recruited an additional 100 people who will work as suppliers. They have previously gained the trust of their business partners by providing high quality goods and services. The ABC Company has never remained stagnant which is their most interesting part. They always keep on changing their goods and services and try to introduce something innovative every year. They always try to place their operations on technology, demand and choice of the customers. They have done a market survey before introducing their new product with the aim of expanding their market (Bergek et al., 2015). They have tried to respond to the new changes by placing the customers as the first priority in the business, paying attention to their needs and want and create something new and innovative methods for improving the quality of shopping. In the recent years it can be seen that technology has played a big impact on any business. This innovative product has also used technology to its extreme. They have invested in a unique area where nobody has invested before. They have taken a wise decision by investing in such a product that will easily attract the people and will have a high sale with profit. Their first penetration in the market will determine whether their supply will be able to meet with the demand or not (Binz, Truffer Coenen, 2014). Market Analysis Target market The target market for the company will include any one in general because it is not so expensive that people of low income group will not be able to afford it. Still these gadgets will be targeted mainly for those households where elderly people resides or those women who has to live alone or any person who has problem in walking. Market size The ABC Company has invested almost a million dollars for this new and innovative product. This investment can be considered as the highest till date as compared to their previous innovations. This shows that they were determined beforehand only to capture the target group with their new and innovative product (Camisn, Villar-Lpez, 2014). Market growth Previous research and the product details of the company have shown that they are highly competitive and concentrated. They are increasing rapidly to move ahead of their fellow competitors without even giving them a scope to participate in the competition. Market profitability ABC Company can be considered as one of the most important profit- makers in a slow and low cost market. They were fortunate economics that they did not have to struggle with their new products as compared to other companies. They kind of dominated the market when the new product whos it was introduced (Coccia, 2014). Market trend Australia got a special insight in the future of technological market because of the new innovation of the ABC Company. They have painted a picture for other companies as what should be the market of technology in the coming years. Key success factors There are different success factors of the ABC Company such as their dedicated practices which have never ceased to amaze their customers. Their deep experience also counts when it comes to strong sustainability consulting skills. Competitor analysis It can be said that with respect to the innovative product the ABC company did not have such tough competition as they had brought forward such a unique product which none of the companies have thought of before (De Massis, Frattini Lichtenthaler, 2013). Competitor comparison ABC Company had already made a place for them in the market with more than 100 stores spread in Australia. They are trying to expand in other countries too with their new and innovative product. They have started the competition with other companies and very soon they are going to be in the lead. Strategic differences ABC Company has used the strategy of low price with their new product which has made them stand at a distinguishing place than other technological companies. They have kept their prices low which would target more customers and that will help them in expanding their market globally. This strategy has kept them ahead of the competitors because other companies have kept their product price high which made many customers avoid the products (Perez, Popadiuk Cesar, 2017). Marketing plan Marketing plan of ABC Company refers to the fundamental goal of attaining a sustainable competitive advantage and increase in sales. The recent marketing plan has helped them to increase their sales as well as the profit tending to put it at the top of the technological industry. SWOT analysis Strength- Their strength is that they are almost on the leading position which will encourage the ability of the company in gaining an advantage in the competition by means of their strong resources. Weakness- the impact that they might have on the customer can be considered as their weakness. This is because they have only presumed that their new product will affect the sales of the company but they are not sure of that. Opportunities- They have a good potential growth in the Australian technological industry and certain factors like computerization advances in the technical field will be able to change the lifestyle of the customers. Threats- There might be high level of competition in the technological industry worldwide. They can face a challenge in expanding their market throughout the world. Organizational plan ABC Company is a popular brand in the technological sector of the Australian region. Their expertise ranges from different gadgets which are essential in daily lives. The structure of the company needs to be identified before drawing any conclusion about the operation management principle. The principle that the company follows is coordinated contraction where exists a primary contractor. Sub contracts are the given contract for certain jobs in the ABC Company. The sub- contractors are given instructions about the production of various goods. Sometimes ABC can take the responsibility of making the raw materials available and planning and controlling the sub- contractors. The sub- contractors also make the tools and equipment available which are essential for the trade (Kogan et al., 2017). Financial plan Budgeting comes first in financial plan. ABC Company needs to work on identifying and prioritizing the medium which will lead to long term personal goals. They also observe their bills to keep a track on how much are they spending and what can be cut down. They also keep a look on their debts that provide the highest interest rate and do the payment as per the priority. They have created a realistic firm budget to determine their saving capacity compared to the competitors. It is a well- appreciated system of giving rewards after reaching the budget milestones. If they can maintain their financial plan accordingly then it will be not so hard for them to rule the technological industry in Australia and other areas (Sandn, Hekkert Negro, 2017). Conclusion ABC Company is a technological company which benefits people regarding gadgets and other electric appliances. Their target is to bring middle class products in the homes of working class. This technological company targets the both the upper middle-class households and working- class population. They have positioned their product at a low price for shopping benefits of the customers. As this is a safety product therefore they made sure that this should be available and accessible to one and all. They can be regarded as the pioneers to introduce the innovative and unique model whos it. This well- known company operates a number of subsidiaries and has their own store brands. With strong brand name comes, efficient operations. Reference Baden-Fuller, C., Haefliger, S. (2013). Business models and technological innovation.Long range planning,46(6), 419-426. Bergek, A., Hekkert, M., Jacobsson, S., Markard, J., Sandn, B., Truffer, B. (2015). Technological innovation systems in contexts: Conceptualizing contextual structures and interaction dynamics.Environmental Innovation and Societal Transitions,16, 51-64. Binz, C., Truffer, B., Coenen, L. (2014). Why space matters in technological innovation systemsMapping global knowledge dynamics of membrane bioreactor technology.Research Policy,43(1), 138-155. Camisn, C., Villar-Lpez, A. (2014). Organizational innovation as an enabler of technological innovation capabilities and firm performance.Journal of business research,67(1), 2891-2902. Camisn, C., Villar-Lpez, A. (2014). Organizational innovation as an enabler of technological innovation capabilities and firm performance.Journal of business research,67(1), 2891-2902. Coccia, M. (2014). Driving forces of technological change: the relation between population growth and technological innovation: analysis of the optimal interaction across countries.Technological Forecasting and Social Change,82, 52-65. De Massis, A., Frattini, F., Lichtenthaler, U. (2013). Research on technological innovation in family firms: Present debates and future directions.Family Business Review,26(1), 10-31. Kogan, L., Papanikolaou, D., Seru, A., Stoffman, N. (2017). Technological innovation, resource allocation, and management.The Quarterly Journal of Economics,132(2), 665-712. Perez, G., Popadiuk, S., Cesar, A. M. R. V. C. (2017). Internal factors that favor the adoption of technological innovation defined by information systems: a study of the electronic health record.RAI Revista de Administrao e Inovao,14(1), 67-78. Sandn, B., Hekkert, M. P., Negro, S. O. (2017). Improving the rigour of the Technological Innovation Systems framework: towards a TIS model.