Main Characteristics of Human Resource Strategies

Main Characteristics of Human Resource Strategies To understand the main characteristics of human resource management strategies, there is need to define the meaning of human resource management and HR strategies and how they are linked to each other within business environ, irrespective that HR is our daily routine in the aspect of life, development, advancement and the way we choose to do things for achieving better result in all aspect of administration and social life activities What is Human Resource? Obviously HR its believed to be a phrase used to refer to how employees are managed by the organization or to the personnel department handling that particular role. Managerially, its the responsibility of human resource managers in every corporate business environment to conduct these activities in an effective, legal, fair and consistent manner. However, the pitch has moved from a customarily administrative task to a strategic one with the aim of recognizing the link between capable and occupied people and organizational achievement. In this context, the pitch draws upon concepts developed both in industrial/organizational psychology and system theory.Besides, Human resource have at least two interrelated interpretations but depending on the context which we shall be discussing as we progresses although this perception is however changing drastically as a function of new and ongoing research into more strategic approached. Human resource management can also be defined as a unique approach to employment management system which also seeks to achieve competitive advantage through strategic development of a highly committed and capable workforce using integrated array of cultural and structural personnel techniques (Storey 1995). Going by the word human resource managements objectives, it consists of the followings: It simply means to get the most out of the return on investment from the organizations human capital and also curtail financial risk. Administratively, its the responsibility of human resource managers in every corporate business environment to conduct these activities in an effective, legal, fair and consistent manner. Also considering that management is the process of getting things done effectively and efficiently with and through other people to achieve the objective of the firm and organization. The need to understand that human resource management is the organizational function that deals with issues related to people such as the employee motivation, hiring,ÂÂ  communication,ÂÂ  healthsafety, performance management, compensation, organizational development, administration, training and selection, wages and salary, pension management etc. What is HR Strategies? This simply means a way of putting policy in place in the right areas such as how to recruitment the best employees,ÂÂ  how to manage and retain the best employees,ÂÂ  how to terminate poor employees, also it does require thinking ahead, planning ways for a company to meet the needs of its employees and the employees meeting the needs of the company and achieving its goal and targets.ÂÂ  However,ÂÂ  its obvious that companies who work very hard in meeting the needs of their employees can develop a work environment favourable for productivity. HR strategy as defined by Shaun Tyson (1995) as the intentions of the corporation both precise and covert toward the management of its employees, expressed through philosophies, policies and practices, typically, strategic HRM bridges business strategy and HRM focuses on the integration of HR with the business and its environment. A HRM strategy sets out what the organization intends to do about its resources management policies and practices and how they should be integrated with the business strategies and each other. However, they are described by Dyer and Reeves (1995) as internally consistent bundles of human resources practices and according to Richardson and Thompson, (1999) A strategy whether it is an HR or any other kind of management strategy must have two key elements: There must be a strategic objective i.e.(What the strategy aims to achieve) There must be a strategic plan of action i.e. (The means through which such proposed objectives would be met) We must understand that fundamental types of HR strategies can be identified as follows: General strategies: This involves high-performance management, high commitment management and high involvement management. High-performance management strategy basically aims to make an impact on performance of the organisation in the following areas, productivity, growth and profits, levels of customer service, quality. However, it also looks at extensive and relevant training and management development activities, recruitment and selection procedures, incentive pay system and performance management process. These are called high-performance working system which we shall be explaining on how they help employees in problem solving and how it provides incentive to motivate workers to use their flexible effort. High commitment management as one of the major characteristics of HRM which lays prominence on the importance of enhancing mutual commitment. However, its been described by wood (1996) as a form of management which aims at eliciting a commitment so that behaviour is self regulated rather than been controlled by sanctions and pressures external to individual and relations within such an organisation is often based on trust. It is worthy to note that there are many similarities between high-performance and high-commitment. In fact, there is a common ground between practices according to Sung and Ashton (1995). High involvement management its a precise set of human resources practices that focuses on employee decision making, power, access to information, training and incentives. High involvement was used by Lawler (1986) to describe management system based on commitment and involvement as different to bureaucratic system based on control. The principle is that employees will increase their involvement with the company if they are given the opportunity to control and understands their work. However, it was claimed that high involvement works well because it acts as a synergy and has a multiple effect. This approach requires treating employees as partners in the business whose interest are highly respected and who have interest in matters that concern them, concerned with communication and involvement. The practices included in a high involvement system have sometimes expanded beyond this original concept and included high-performance practices InÂÂ  thisÂÂ  today modern world,ÂÂ  its believed that a great human resource strategy provides an undeniable and persuasive business folder for aligning populace andÂÂ  society with business strategy as well as it commands the awareness of management and builds the required obligation for required resources and support for execution. In business,ÂÂ  Strategies create or build a sensitive intelligence of value in business development, growth, size, strategic planning, and willingness to change for better productivity. In Human resource strategy, there is always a link that dovetails from the strategic management process which includes the followings, strategic analysis, strategy formulation, and strategy implementation. The main rationale for strategic HRM thinking is that by integrating HRM with the business strategy, rather than HR strategies being a separate set of priorities, employees will be managed more effectively, organizational performance will improve and therefore business success will follow, also Human resource in itself may not be effective but integrating corporate strategy and HR matters into an organization and people strategy may prove more successful. We can also look at other Features of HR Strategies as follows: Motivation Strategy This is a conscious decision to direct effort in an activity to achieve goal that will satisfy a predominate need. Also we could look at it as a way of motivating employee of any firm/organization to achieve better/quality productivity and achieving the goals and targets of the company in a business environ considering the fact that Its obvious that every organisation is operating in its own style of business to maximize profit and minimize risk occurrence but the question ahead of us is that how can a company motivate its employees in a working environment? Any company/organisation can motivate its staff by the followings: letter of commendation, giving prize, gifts, promotion, and review on increase in salary, required training etc. Implementation Strategy This is a strategy which any firm/organisation applies into their policy after and during meeting decision which helps the company to align their strategies from the corporate level to the shop floor workers to work in accordance with the aim of achieving the set target goal and employees also need to have access to the resources and equipment to do their work effectively. We can also look at other Characteristics of HR Strategy as follows: Performance management : As one of the characteristics of HR strategy that deals on managing performance which is the key responsibility of line managers and any area where a partnership between HR can be most effective and beneficial. However, HR can be of tremendous help to managers to understand how to define roles in the light of business drivers and how to identify the capabilities required to do the job. The key performance indicators for each role should be derive from the business drivers in making job role more responsive to the changing business environment. Job security Job design: In this context HR ensures that the right people are selected for roles which dovetail into helping the employees to see for themselves if they have the capabilities for new roles and HR can work with the line in developing self-assessment. It is obvious that job responsibilities fall between the gaps and most job descriptions are not current for more than a few months. In general, managers most often believe that what workers want most from their jobs are extrinsic rewards such as good wages security, promotions and good working condition but the employees, however, usually rank intrinsic rewards, such as challenging work, recognition for good work, participation in decisions that affects them and sympathetic understanding of personal problems higher than job security and good wages. When they do not get these desire provisions from the organisation they tend to go somewhere else to work. Designing effective appraisal development process : Appraisal requires excellent interview and counselling skills if the process is to be motivating for those involved and it relies on managers and employees having a relationship in which discussing performance is not seen as a burden or a threat, however in many cases, managers do not make the time to appraise peoples performance well. In many organisations the link between personal development and the business strategy is atimes weak but with appraisal being used as an annual administrative chore, which means that employees fail to take personal development seriously but HR can help by designing process which are simple to use and user-friendly. Appraising employee is a significant factor that identifies the loose end of an employee to re-adjust its stand. Selection Recruitment: A strategic approach to recruitment and selection needs to incorporate a wider set of policies, such as reward, development and job design which reflects an understanding of employee motivation and closely linked to trends in the changing labour market. Recruitment is a part of an overall career management strategy which is driven by the business strategy, getting the right staff for a specific job and retention. Remuneration : This is the comparing termsconditions of employment and salary scales including the structure of share options and to whom they are available, severance terms in contract ,incentive and bonus schemes in terms of immediate and future commitments. Strategic management skills especially understanding how to add value to both employees productivity and the new business. Change Organizational structure: Being able to manage change means taking a proactive measure rather than reactive role in bringing about change which involves being able to understand how the organization works as a system, identifying where the changes needs to occur to enable the organisation to achieve its goals and requires being willing to assess how well the HR team is equipped to manage and being prepared to improve the teams capability as appropriate. Trainingdevelopment: Every company/firm needs training and development for their employees for better improvement both in procedures that is cost effective. Training helps in organizational development, increasing returns on investment, improving the market share and increasing the levels of product innovation. However, it helps in both awareness raising and skills development of the member of staff. Also certain drivers of training are already starting to transform the employment landscape, by making the employees to be offered roles which makes the best use of their Talent and uplifting the employees to the right job. Training and development has done a great impact in organization by employee adding value through their positive effect on customers, who will in turn purchase more and produce a positive impact on the bottom line and improve share holder funds. ASSIGNMENT NAME : PATRICK N. MADUGBA IDENTITY: ST2001-09 COURSE: PGD-BA SUBJECT: HUMAN RESOURCE MANAGEMENT TOPIC: WHAT ARE THE BENEFITS OF TRAINING TO STAFF AND ORGANIZTIONS? LECTURER: BENJAMIN A. ADEBOWALE DATE: 1ST MARCH, 2010 Its quite obvious that training and development exercise is necessary in every organization, firm/company. However, before we look into the benefits of training to staff and organization, there is need to understand the meaning of training. Training: Its often said that training is an expensive unwarranted exercise but training is seen as something that is work related on job training, off job training or employment training schemes and also to assess organizational, departmental, divisional group, occupational and individual performance. We shall be addressing the benefits of training from the following point of view as we progresses. JOB ASSESSMENT AND EVALUATION: In this context training helps the effectiveness of the job in terms of the present and immediate future, the potential usefulness, specific changes envisage in terms of priorities and technology. It also identifies the gap in staff organization to be filled. GOOD COMMUNICATIONS: Training aligns itself with the help of effective formal and informal communications and the extent and nature of correcting misunderstandings. It also helps both in staff and in organisational and operational confidentiality. ENHANCES JOB FLEXIBILITY: Especially at formal performance appraisal times and intervals which requires the ability, willingness and flexibility to accommodate issues raised in both approaches. FULFILLING REQUIREMENTS/STANDARDS FOR REGULATORS: Identifying those areas required and usually to consider the absolute standards required in skills, knowledge, attitudes, behaviour, expertise, and performance in both staff and organization. INTRODUCTION OF NEW TECHNOLOGIES: Basically when there is an introduction of new tech in the company it is important to trainretrain staff/organization to be more versatile and get used to how to make use and work with the new product in an effective and efficient way. RESPONSIVENES AND FLEXIBILITY: This refers to the ability to deal with; shortfalls in the usage, potential, capacity of organizational culture, and weakness, unity and clarity of purpose. FOR GROOMING NEW LEADERS: Training development of staff has really shown a great impact in a way of grooming future leaders for better task and product business technology responsibility. IT ENHANCES PRODUCTIVITY: When and after been train there is possibility of increase in productivity which dovetails into size and market growth, share holders funds. NEW EMPLOYEE INDUCTION TRAINING: Basically this is getting to know the staff, setting basic standards; indicating required attitudes, values and behaviour; ways of working; meeting colleagues; job description, goals and target. Meeting key staff with whom they interact; how to interact with key suppliers; customers and clients and general organizational environmental familiarisation which has been of great importance/benefit to both staff and organization. ENHANCING STAFF WORTH: Ensuring that staffs are aware of legislation; their rights and duties; instilling universal standards of attitude, value and behaviour; intolerance of discrimination; bullying; victimization and harassment on race. HRM PROCEDURES AND PRACTICES: Basically explaining staff management requirements and expectations, for instance; disciplinary, grievance, dismissal and redundancy procedures, training opportunities, other things to do with contracts of employment and terms and conditions to both organizations. PROMOTES STAFF EFFICIENCYEFFECTIVENESS: Ensuring that the staffs are trained in monitoring, reviewing and evaluating the effects of what is done and constantly and actively seeking ways of building on success and strengths by addressing the weakness and gap identification for better productive results. PROMOTES INTERPERSONAL RELATIONSHIP: This teaches the staff and organization series of tasks and activities required of them in their daily work and in their perspective and environment. However, it draws a direct relationship between what has been learned elsewhere and how it is now to be applied as required. Training also enhances level of interest and therefore commitment to the work and organization. It is also appropriate in some cases in job rotation, enrichment, enlargement and enhancement programmes where staffs are moved from one job to another on a regular and formal basis. Continuous Training prevents staff from becoming stale or bored in one job and enhances their employability. It enhances collective and individual confidence, identity, commitments and loyalty and brings out potential in staff. Effective training and development enhances the staff knowledge and understanding of what is possible in certain circumstances and under particular constraints. It helps staff in designing, implementing and supporting the required management and supervisory style and increasing higher output per staff. Training and retraining, it provides the opportunity for staff in setting a moral or value possibly taking pride in the organization and its work on the part of all concerned. FOUNDATION FOR SUCCESS: Basically coping with the change and uncertainty in products, services, technology, organization and the environment being productive and successful. Training has been of immense benefit to both staff and organization, accuracy in prioritising those activities that contribute directly to organization profitability and effectiveness Training of staff on how to deliver and respond to the programmes as a whole and also participating in the aspects which may have good knowledge Training has been of benefit to staff to address the full range of needs and ability to maximise the full potential, interest capability and willingness of everyone By enhancing commitment and motivation, clear policy and direction, clear and acceptable set of rules In monitoring, review and evaluation mechanisms at both and operational management levels Gives greater employee expectations, employee commitment and enhancing total awareness of potential Gives a clear common standards in areas of shortfalls in practice, easily identified and effective remedy Training meets best practice standards whatever the sector or occupation and for actual practice Training improves high levels of staff value including high levels of pay and rewards. High priority and high quality on the job training. Training helps to boost and speeds up development processes and reflection of value within the business environment Training promotes uniformity in staff and the way they interact both with other colleagues and clients and customers. Also maintaining standardization in all aspect of production. Continuous training of both products and services thus enhances the staff competency, which brings out the best in any staff to work and aim at achieving the desire targets and goals and objectives of the company. It helps to oversee the design and production of all promotional materials for use in an organization It helps in developing and devising strategies in meeting the set standards and repositioning in the business environment EMPLOYEE MOTIVATION: Training motivates staff, drives the need, motive or goal that triggers action. Also a selection process that directs the choice of action to be carried out for better performance. Training has also helped in understanding where, why and how effective development has taken place and also providing information to be used as a basis for effective corrective action. REBRANDING REPOSITION: Training has been proven to be of immense help in rebranding of products which helps in productivity and sales and thus repositioning of companies image within the business environments. All these benefits through training have been of great impact on staffs and organization in transforming to a better creativity and productivity. ASSIGNMENT NAME: PATRICK N. MADUGBA IDENTITY: ST2001-09 COURSE: PGD-BA SUBJECT: HUMAN RESOURCE MANAGEMENT TOPIC: WHAT DO YOU UNDERSTAND BY INTEGRATED HUMAN RESOURCE STRATEGIES LECTURER: BENJAMIN A. ADEBOWALE DATE: 1ST MARCH, 2010 Integrated HR Strategy This simply means a way of putting policy in place in the right areas such as how to recruitment the best employees,ÂÂ  how to retain the best employees,ÂÂ  how to terminate poor employees, also it does require thinking ahead, planning ways for a company to meet the needs of its employees and the employees meeting the needs of the company and achieving its goal and targets. However,ÂÂ  its obvious that companies who work very hard in meeting the needs of their employees can develop a work environment favourable for productivity. Shaun Tyson (1995) defines HR strategy as the intentions of the corporation, both explicit and cover, towards the management of its employees, expressed through philosophies, policies and practices. Typically, strategic HRM bridges business strategy and HRM and focuses on the integration of HR with the business and its environment. One of the key elements of HRM is the internal integration of HR policy goals with each other. David guest (1989) incorporated the HR policy goals of strategic integration, commitment, quality and flexibility into a model. He suggests that these HRM policy goals are a package which Purcell (1996) considers to have six common elements as follows: Careful recruitment and selection Extensive use of systems of communication Team working with flexible job design Emphasis on training and development Involvement in decision making Performance appraisal with tight links to contingent pay. The rationale for strategic HRM thinking is that by integrating HRM with the business strategy, rather than HR strategies being a separate set of priorities, employees will be managed more effectively, organisational performance will improve and therefore business success will follow ,however this in itself may not be enough . Tony Grundy (1998) suggests: Human resource strategy in itself may not be effective. Integrating corporate strategy and HR matters into an organisation and people strategy may prove more successful. Certain drivers for change are already starting to transform the employment landscape, reversing previous power balance between employers and the employees. Globalisation is highlighting the need for organisation to manage the development of talent as well as to manage knowledge in complex. Technology and the rapid changes in working practices and skills requirements are enabling employees who are truly employable to command their price and dictate terms to their employers, while line management is quite responsible for the growth and survival of the business and its employees. HR as a function has potentially key role to play in partnering the line to prepare their organisations for future challenges. This is where operational effectiveness has to be balanced by a strategic perspective. This need for balance is demonstrated through one of the major thrust of strategic thinking in recent years. Hamel and Prahalads (1994) idea of the core competence of a firm suggests that firms should build their strategies to what they do best. One of the key of challenges for the leaders of any organisation is to provide a sense of direction and a focus for the organisations activities. Ideally, strategic direction involves creating a situation in organisations where the present is being driven from the future, rather than simply being seen as an extrapolation from the past. In changing times there is a greater need for clarity of business direction than in more stable times when the status quo provides employees with guidance as to what is expected of them. However, if employees are to be able to contribute their skills in the most effective way in order to realise business aims, it helps if people know what these aims are, knowing the need of what is expected of them and why. In some organisations, the business direction is made clear in strategic imperatives and the business plan. However, commentators such as Guest (1987) and Storey (1995) regard HRM as substantially different model built on unitarism i.e. employees share the same interest as employers; Individualism, High Commitment and Strategic Alignment (Integrating HR strategy with the business strategy). It suggested therefore, that HRM has also emphasized that employees should be considered as assets rather than variable cost. A strategic HR is likely to have a number of key roles relating to the attraction, development and retention of talent. This may mean competing for the best employees through developing innovative approaches to careers and rewards. Quality of management is likely to be another key agenda item; this may mean introducing tough and effective assessment and development process to ensure that the organisation has the leadership it needs. The enabling of high performance is likely to be a key target for strategic HRM. This involves understanding how high performance is built and sustained, as well as identifying and eliminating barriers to high performance and this will probably involve addressing those aspects of organisational life which have an adverse effect on peoples motivation. HRM policies and practices have been linked to competitive advantage as follows: Communication/corporate responsibility which lays emphasis on communication and corporate responsibility Resourcing Emphasis on external resourcing and internal resourcing on aspect of training and careers development. Culture Promoting an empowerment culture, diversity and an equality culture. Organisational structure and control Emphasis on flexible organisations/work practices, utilising IT to structure the organisation, horizontal management and reward innovation/creativity. Strategic This is where HR planning provides valuable data and is carried out as an integral part of the overall strategic planning process. This involves line managers in developing and evaluating HR practices since this approach recognizes that those who are most knowledgeable about the workforce should be involved in building commitment to the strategy across the organisation. Typical objectives associated with different areas of HR responsibility (after Lam and Schaubrock) include: Maximum strategic impact Aligning HR practices with business objectives, conducting development programmes to support strategic changes. Improving HR adaptability on changing environment and enhancing workforce capability and motivation. Coordinate Integrating diverse HR functions and operations, develop compensation and benefit programmes, improve HR project management, coordination between various HR functions and any potential HR problem. Improve team effectiveness. Communicate Improving employee involvement and understanding of HR, communicating HR policies inside the organisations, conducting job analyses for long-term objectives, improving management acceptance of current/new HR policies and also communicating HR policies outside the company. Control Improving HR resource procedures and control, managing personnel-related cost, reviewing HR operations procedures, improving HR budget control and clarify budget and resources availability.

Paper on the Costs and Benefits of Building Society

At the beginning of this century there were more than 2000 building societies, fiercely independent mutual organisations, formed in the spirit of Victorian self help. There are now just 71. Some of these that have disappeared were terminating societies with a fixed wind up date. The last â€Å"terminating† society was the Fist Salisbury which wound up in 1980. Other societies have been swallowed up in take-overs or converted into banks in the great 1997 demutualisation. This assignment will discuss this trend with particular reference to the potential costs and benefits in the short and long term. This assignment will examine the costs and benefits to the building societies as well as those to the members and staff. The Costs and Benefits to the Building Society Conversion to plc status is seen as having the major advantage that there would be freedom from the limitations imposed by the Building Societies Act 1986, 1997 the statutory framework for the Building Society industry. The restrictions the Act impose include the following: 1) 75% of all lending has to be secured against residential property This means that Building Societies are limited in their participation in the more risky, but more rewarding unsecured lending. At the moment, Societies can make unsecured personal loans up to a limit of  £15,000 per customer, whereas there is no ceiling for Banks. Building Societies with less than  £100m of assets are not permitted to make unsecured loans. 2) No more than 50% of funds may be raised on the wholesale markets This limit was previously 40% before the revised 1997 Building Societies Act. Building societies have eagerly taken the opportunity to raise money in the wholesale markets, which have frequently proved to be the cheapest source of wholesale funds (Wholesale funds are large deposits placed by companies and financial institutions, bearing an interest rate in line with the market rate rather than base rates). They have used these funds to even out any shortfall in the inflow of retail funds to meet the mortgage demand. Banks have no ceiling on raising wholesale funds, which are usually cheaper than retail funds. Building Societies may also find themselves at a disadvantage in access to wholesale funds at competitive rates. As only 50% of funds can be raised from the wholesale market only the very largest societies can maintain the necessary standing in the international capital markets which allows wholesale funds to be tapped on the finest terms. Equally, the capacity to cope with the volatility of the wholesale markets and the risks they pose, requires Treasury management teams on an increasing sophistication to which only the largest societies can aspire. 3) Before the 1997 Act, building societies could only offer temporary or occasional overdrafts to corporate customers. Now building societies can establish subsidiaries to lend to business customers, but have not yet become significant lenders to industry. This is in contrast to banks who are very much regarded as lenders to businesses. As a result of the Building Societies Act 1997, building societies are now also able to : a) make unsecured loans to incorporated businesses; b) to own a general insurance company which could write housing related policies (buildings, contents and mortgage payment protection insurance). Building Societies are limited in raising capital. Until 1991 building societies could only raise capital by means of retained profits. Now larger societies, to increase capital, can issue Permanent Interest Bearing Shares (PIBS). This is in contrast to plc†s who are free to raise capital in the market by issuing shares and bonds if they plan to expand. An example of this is Barclays 1987 rights issue to raise  £921m to finance â€Å"growth†. Building societies cannot in general engage in take-overs of, or mergers with other types of financial institutions in order to expand their breadth of operations, and retain their mutual status. Banks have this freedom and can finance mergers and acquisitions through the issue of new shares, whereas building societies can only finance acquisitions with cash. Efficiency is also an issue as a plc – profit making organisation is perceived as having greater efficiency than a mutual organisation. However ‘competition has proved a spur to efficiency at least as effective as the disciplinary effect of a public quotation† (PRIMA). As a result of the break up of the societies cartel arrangements for setting interest rates, the banks have made successful inroads into the mortgage and savings markets and hence competition is today very strong. There are many costs and disadvantages associated with building societies converting to banks including: The new plc will be regulated by the Bank of England, rather than the building societies commission. The plc will operate under the Banking Act 1987, compared to the Building Societies Act 1987, 1997. The plc may find it difficult and time consuming, at least initially, to deal with the new method of regulation. The Government†s planned new super regulatory body may also provided further legislation that has to be adhered to. 2) Need to pay out dividends and ability and pay competitive interest The plc will find itself under pressure to pay out growing dividends to shareholders. This reduces retained earnings, thereby reducing the plc†s ability to pay competitive interest rates. In the past building societies have been able to operate on a narrower margin than banks between their rates to the depositors and borrowers because: a) their low management cost (due to their less complicated specialist business); b) no requirements to pay dividends; c) low capital requirements due to the low risk nature of their assets; d) because the banks tended to subsidise their money transmission service by their deposit accounts, which lessens their ability to compete in the savings market. 3) The plc becomes open to possible take-over bids The change of status may have adverse effects on the institution†s image with customers. This may adversely affect its ability to compete with Building Societies. Building Societies are generally regarded as friendly institutions, concerned first and foremost with the customer. A comprehensive study of public perceptions of different financial institutions conducted in 1987 showed that building societies enjoy a positive rating of 85%, compared with only 51% for the high street banks (Personal Finance & The Future of the Financial High Street, Research Associates, March 1988). Building societies have traditionally been seen as a safe depository for the savings of working people. Building Societies are safe and a principal reason why is that mutuality has restricted them to safe, low risk activities. This safety and friendliness have strong customer appeals, which may be lost if conversion to plc status takes place. In general building societies have low levels of bad debt relative to banks. The lower levels of bad debt can be put down to the loaning restrictions set down by the Building Societies Act 1986, 1997 (e.g. 75% of loans must be secured against residential property). In 1997 a number of building societies decided to give up their mutual status in favour of plc status. These conversions and take-overs resulted in a number of windfall payments to society members. These windfalls were in the form of cash or free shares. The size of windfall varies from society to society, but investors due to receive windfalls from all the building societies that surrendered their mutual status during 1997 (Halifax, Northern Rock, Alliance & Leicester, Woolwich, Bristol & West) can expect shares worth an average total of about  £6,000 (IC vol. 120/1524 page 34). This is clearly a short term benefit to members but it is argued that as plc†s these former mutuals will in the long term not be able to offer such attractive interest rates for borrowers and savers. Christopher Rodrigues, Chief Executive of the Bradford & Bingley argues â€Å"The one off benefit of plc conversion is here today, gone tomorrow. The higher savings rates and lower loan rates of mutuality are for life not just for flotation day†. Mr Rodrigues points out mutuals don†t have to consider the demands of shareholders – particularly for high dividends or share price growth so profits can go to members – via better interest rates on savings accounts for example. Which?, the respected ‘Consumers† Association magazine has also criticised these conversions and claims the new banks will be forced to squeeze customers for maximum profitability. Which? Argues that mutuals offer better interest rates for savers and borrowers. This case of mutuals offering better rates is hard to prove in practice as there are so many financial intermediaries, products, min balances and interest rates available. For example, the Which? Report only examined two products over a narrow period of time. Most of their mortgage research is based only on the 12 months to March 1997, a period when the converting societies knew they could get away with charging windfall seeking customers more than their rivals. Over the longer term Money Facts, a savings rate specialist, claims mutuals record in savings rate best buy tables is poor. Each year Money Facts publishes details of how much money you would have if you had invested with each of the 90 or so Tessa providers 5 years previously. Just one of the five largest mutual building societies made it into the top 25 Tessa providers. The same was true last year. A quick look at the mortgage market tells a similar story. Research conducted by myself paints a similar picture. Investors Chronicle, a weekly investment magazine published by the Financial Times, carries a weekly updated table of highest deposit rates (Appendix 1). As at 29 January 1998 out of 36 financial intermediaries listed on this table offering the best deals on various products (e.g. Tessa, Instant Access up to  £2500) only 13 of them are mutual. In recent months, there has been a rush of new entrants to the banking arena that offer better deals than the mutuals and established high street banks. Insurer, Legal & General (60 Day Notice Minimum  £2500 7.65%) and supermarket, Safeway (Instant Access Minimum  £1000 7.3%) (Appendix 1), for example, both offer excellent interest rates on savings accounts. Equally, Scottish Widows† mortgage products are very cheap. Even if believed that mutuals offer better savings and mortgage rates it is a long wait for building societies to deliver the same return as there converting counterparts. One case that illustrates this point is a saver that had  £5,000 in an instant access account run by Nationwide – whose members rejected conversion this summer – would earn more money than he would at the Woolwich (see Appendix 2). However even if you were a non taxpayer, it would take more than 50 years to make  £1500 (Woolwich windfall approx.  £2000) extra in interest payments. The lure of the mutual building societies is not so compelling as it is often presented. Some building societies have recognised that they need some sort of scheme with which they can compete with the attractions of windfall bonuses. The Nationwide, Bradford & Bingley and Yorkshire have all announced cash back schemes where members will get a larger slice of the profits in the form of better interest rates. The Britannia has actually paid cash bonuses worth  £35m to members. However the average payout to members was  £35. Another aspect of consideration is the treatment the customer receives. Mutuals almost always beat banks in surveys on customer friendliness. Building societies staff are perceived by customers, according to market research, as more friendly, more pleasant and more interested in their jobs than those of banks and other financial institutions. (PRIMA). Many building societies have branches in estate agents in small communities. These branches are not usually prolifically profitable, but provide a valid service to the community. As plc†s are profit making organisations there is a trend that community branches are closed after conversion. The Abbey National, for example, closed 1000 community branches after conversion and all 200 of National & Provincial†s when it took it over. This is a great cost to those who live in these communities. Many are old people who are now faced with travelling long distances to get their money. Plc pay is generally higher than mutual pay for the senior managers of a building society. Peter Birch, Abbey National†s, Chief Executive, pay has increased from  £173,000 pa in 1987 to  £450,000 pa in 1996 and he now owns shares worth  £1.8m. This is in contrast to the Chief Executive of Halifax who†s pay did not increase by anywhere as much and was unable to receive share options. There is a clear benefit to the senior mangers of a converted building society, but in the long run they are also more open to being removed by discontented shareholders or a take-over. Share options are believed to produce more motivated and committed staff. In conclusion there are potentially more benefits to the Building Society than costs. The major benefit being the escaping from the limitations imposed by the BSA. The Building Societies Act 1986, 1997 excluded building societies from potentially more profitable, if riskier business. The regulatory constraints on a plc are less onerous than those on a mutual basis therefore although banks are subject to continuous Bank of England supervision, the basic limitations are the scope of company articles of association whereas building societies must comply with highly specific requirements of the Building Societies Act 1986, 1997 on such matters as the permitted proportions of wholesale funding, unsecured lending and advances by class of asset. In general, members also have potentially more benefits than costs. In the short-term members of converting societies have the benefit of windfall payments. In the long run it is claimed that members will lose out in less competitive interest rates, however this is very hard to prove. Even if it can be proved, the savings and mortgage rates offered by the mutuals will only be marginally better than those offered by the non-mutuals. It will take years to earn the equivalent of a windfall bonus from a mutual in the form of better interest. Some people urge others to think about the next generation and that one day there will be no mutuals left, but at present most of the best rates are offered by the new entrants to the banking arena (e.g. Safeway). Any member who retained their membership of a converted society through retaining their share allocation, at present would be benefiting even more. The reason for this is that the share prices are higher today than when the societies floated. Secondly as this is being written the Woolwich as part of it†s maiden full year results announced a â€Å"fresh  £100m windfall for Woolwich investors. A 6.5p special dividend added to the total year dividend of 9.5p will put  £105 in the pockets of hundreds of thousands of former Woolwich members who received the average windfall package of 657 shares. The Woolwich will also seek authority to return a further 100m to 200m of excess capital to share holders later this year in share buy backs. There is a clear cost to those members who relied on a community branch, however have these usually retired people examined the alternative technology available (e.g. telephone banking, cheques, debit cards etc.). Staff (particularly senior management) will benefit as a plc is able to offer share options which are believed to produce more motivated and committed staff. Senior management will also usually have greater increases in pay. These people are not ‘FAT CATS† they do a complex job and are paid the going market rate. In the long run senior managers of a plc are easier to remove from the company if their performance is poor. All in all the benefits of conversion outweigh the costs. This is true for all the interested parties, i.e. the building society, the members and the staff.

Humanism and the Renaissance Essay - 2019 Words

Humanism and Renaissance Humanism brought MAN to the forefront causing a veritable cultural revolution. Reason and the will to better understand the world fomented progress in the scientific fields. Intellectuals throughout Europe came under the influence of humanism which was disseminated with the invention of the printing press and the guidance of princes. Finally, humanism had a religious impact as well with the protestant reformation and bringing religious pluralism to the west.--- Humanism and the Renaissance ============================ Crises at the the end of the middle ages, i.e. the One Hundred Years War, the plague, famines and the generalised poverty of the peasantry†¦show more content†¦With humanism fatalism could be overcome, man could master his destiny and transform the world. Mankind was the source of confidence as he was now deemed to be on earth to seek perfection, master nature and overcome narrow thinking. This cultural revolution combined with the new world discoveries in America and Asia provoked sweeping changes in all fields: philosophy, religion and science. Humanistic ideas benefited from the general improvement in living standards underway in Europe as well as the rise in commerce, the invention of the printing press and efforts of kings and benefactors to promote their spread. 1. Man at the center of the universe A. The printing of ancient texts In the XIV and at the beginning of the XV century Europe experienced famines, epidemics and wars. For the church these represented Gods punishment. In order to buttress this interpretation the church relied on a very rigid interpretation of sacred texts with virtually no explanation provided. In response, the humanists sought alternative explanations that might explain mans place on earth and in his relationship with God. It was in reading ancient greek and latin texts that they were able to call into question the strict religious grounding so prevalent at the time. The return to ancient texts was in itself radical as itShow MoreRelatedRenaissance Humanism : The Renaissance1209 Words   |  5 PagesRenaissance Humanism The renaissance is by its definition a rebirth of the classical methods of the ancients (Dictionary.) Through the study of the text and the artwork that defined this period we are able to see the transition from a dark, apocalyptic world, to a reinvigorated and bright new era which was dominated by titan of artistry such as Donatello. Because Italy was so well situated in a land that was formally the Roman Empire, and its economic links to lands of heavy Greek influence RenaissanceRead MoreHumanism : Renaissance And Renaissance Thought955 Words   |  4 Pages141 Humanism in Renaissance Thought The word ‘Renaissance’ is French for ‘Rebirth’. 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During theRead MoreHumanism And Influence During The Renaissance1582 Words   |  7 Pages The Renaissance began in Italy during the 1300s in which a of rebirth of the arts, economy, science, and culture of Europe occurred. Before this time, during the Middle Ages, war and disease precluded advances in art and literature and the powerful influence of the Catholic church limited significant advances in science and philosophy. The Renaissance took influence from classical Greek and Rome and expressed and expanded upon many of the ideas of that time. Art became more realistic and focused

phi 103 week 1 reading quiz Essay - 1393 Words

When reading a philosophy text, the following would be a question a good student would ask while reading: Student Answer: What do I need to know for the test? Where are the answers to my questions? How does this reading relate to the time-period in which it was written? Why do I have to read this? What am I going to eat for dinner? Instructor Explanation: The answer can be found from the â€Å"How to Study and Learn (Part One)† page found here: http://www.criticalthinking.org/pages/critical-thinking-teaching-students-how-to-study-and-learn-part-one/513 Points Received: 1 of 1 Comments: Question 2. Question : Paul and Elder claim that all reasoning: Student†¦show more content†¦Question : This is the term for presentation of an idea through one-sided and emotional rhetoric: Student Answer: Tolerance Relativism Propaganda Television Open-mindedness Instructor Explanation: The answer can be found from the â€Å"Open-Minded Inquiry† page found here: http://www.criticalthinking.org/pages/open-minded-inquiry/579 Points Received: 0 of 1 Comments: Question 10. Question : Which of the following standards of thinking relates to fanatical commitment might verify the truth of a statement or claim? Student Answer: Clarity Relevance Depth Accuracy Breadth Instructor Explanation: The answer can be found from the â€Å"Universal Intellectual Standards† page found here: http://www.criticalthinking.org/pages/universal-intellectual-standards/527 Points Received: 1 of 1 Comments: Question 11. Question : Which of the following standards of thinking relates to how one can verify if the answer to a question or problem is on topic? Student Answer: Clarity Relevance Depth Logic Fairness Instructor Explanation:Show MoreRelatedLibrary Management204752 Words   |  820 PagesRobert D. Library and information center management / Robert D. Stueart and Barbara B. Moran. — 7th ed. p. cm. — (Library and information science text series) Includes bibliographical references and index. ISBN 978–1–59158–408–7 (alk. paper) ISBN 978–1–59158–406–3 (pbk. : alk. paper) 1. Library administration—United States. 2. Information services— United States—Management. I. Moran, Barbara B. II. Title. Z678.S799 2007 025.1—dc22 2007007922 British Library Cataloguing in Publication Data is available