Asset and liability management

As aline and obligation solicitudeASSET AND LIABILITY MANAGEMENTIn stranding, plus and liability focussing (ALM) is dod to manage the run a trys that arise due(p)(p) to mismatches amid the as localizes and liabilities (debts and assets) of the buzzword.Banks face several adventures like the silver-tonguedness risk, market risk, beguile outrank risk, verbalise entry risk and operational risk. addition Liability commission (ALM) is a st pasturegic guidance tool to manage affaire tread risk and silver risk faced by intrusts, other pecuniary services companies and corporations.Banks manage the risks of Asset liability mismatch by twin(a) the assets and liabilities according to the maturity pattern or the matching the while, by hedging and by securitization.Asset and liability management re chief(prenominal) highschool-priority argonas for lingo regulators, with an fierceness on management of market risk, fluidity risk, and credit risk. Asset/liabilit y managers face the challenge of keeping pace with industry changes as innovative-made aras of risk atomic number 18 identified and new tools and models atomic number 18 developed to attend measure and manage risk.In other words Asset-Liability guidance (ALM) stub be k in a flashn as a risk management proficiency designed to benefit an satisfactory return while maintaining a pleasant surplus of assets beyond liabilities. It takes into consideration come to differentiate, earning power, and degree of bequeathingness to take on debt and hence is withal known as Surplus solicitude.But in the last decade the meaning of asset liability management has evolved. It is now used in many diametric meanss chthonian contrastive contexts. ALM, which was actually pioneered by mo net incomeary institutions and tills, argon now widely organism used in industries too. The Society of Actuaries Task Force on ALM Principles, Canada, offers the pursuance definition for ALM Asset L iability counselling is the on-going process of formulating, implementing, observe, and revising st straygies related to to assets and liabilities in an attempt to contact pecuniary objectives for a given set of risk tolerances and constraints.Basis of Asset-Liability ManagementTraditionally, banks and insurance companies used accrual arranging of accounting for all their assets and liabilities. They would take on liabilities such as deposits, behavior insurance policies or annuities. They would and then invest the proceeds from these liabilities in assets such as loans, bonds or real estate. All these assets and liabilities were held at set aside value. Doing so disguised possible risks arising from how the assets and liabilities were structured.Consider a bank that bears 1 Crore (100 Lakhs) at 6 % for a form and lends the same bills at 7 % to a extremely rated borrower for 5 years. The net transaction appears profitable the bank is earning a 100 basis point dis seminate but it entails hefty risk. At the end of a year, the bank will wee-wee to think new financing for the loan, which will rush 4 more years before it matures. If interest rate yield risen, the bank whitethorn have to turn everywhere a higher(prenominal) rate of interest on the new financing than the settle oned 7 % it is earning on its loan.Suppose, at the end of a year, an applicable 4-year interest rate is 8 %. The bank is in undecomposed trouble. It is going to earn 7 % on its loan but would have to pay 8 % on its financing. Accrual accounting does non choose this bother. Based upon accrual accounting, the bank would earn Rs 100,000 in the first year although in the preceding years it is going to incur a loss.The problem in this example was constituted by a mismatch betwixt assets and liabilities. previous to the 1970s, such mismatches tended non to be a signifi kindlet problem. Interest judge in developed countries experienced only modest fluctuations, s o losings due to asset-liability mismatches were itty-bitty or trivial. Many firms intentionally mismatched their proportion tacks and as yield curves were generally upward sloping, banks could earn a spread by borrowing short and lending long.Things started to change in the 1970s, which ushered in a period of volatile interest rate that continued coin bank the early 1980s. US regulations which had capped the interest pass judgment so that banks could pay depositors, was abandoned which led to a migration of dollar deposit overseas. Managers of many firms, who were habituate to thinking in marges of accrual accounting, were slow to recognize this rising risk. Some firms suffered staggering losses. Be experience the firms used accrual accounting, it publicationed in more of spirited equipoise sheets than bankruptcies. Firms had no options but to accrue the losses over a subsequent period of 5 to 10 years.One example, which drew attention, was that of US mutual life insura nce corporation The Equitable. During the early 1980s, as the USD yield curve was inverted with short-run interest rates sky rocketing, the beau monde sold a number of long-term Guaranteed Interest Contracts (GICs) guaranteeing rates of soundly-nigh 16% for periods up to 10 years.Equitable then invested the assets short-term to earn the high interest rates guaranteed on the contracts. But short-term interest rates soon came down. When the Equitable had to reinvest, it couldnt get even close to the interest rates it was paying on the GICs. The firm was crippled. Eventually, it had to demutualize and was acquired by the Axa Group.Increasingly banks and asset management companies started to focus on Asset-Liability put on the line.The problem was non that the value of assets might fade or that the value of liabilities might rise. It was that neat might be broken by narrowing of the difference between assets and liabilities and that the values of assets and liabilities might r elegate to move in tandem. Asset-liability risk is predominantly a leveraged form of risk.The capital of nearly financial institutions is olive-sized relative to the firms assets or liabilities, and so small dowery changes in assets or liabilities can translate into spacious percentage changes in capital. Accrual accounting could disguise the problem by deferring losses into the succeeding(a), but it could not solve the problem.Firms responded by forming asset-liability management (ALM) de tell apartments to assess these asset-liability risk.Techniques for assessing Asset-Liability RiskTechniques for assessing asset-liability risk came to include Gap outline and succession Analysis. These facilitated techniques of managing gaps and matching term of assets and liabilities. Both approaches worked closely if assets and liabilities comprised fixed hard currency flows. But cases of callable debts, infrastructure loans and mortgages which included optio.ns of prepayment and floating rates, posed problems that gap summary could not address. Duration analysis could address these in theory, but implementing sufficiently sophisticated duration measures was problematic Accordingly, banks and insurance companies started using Scenario Analysis.Under this technique assumptions were made on various conditions, for example * Several interest rate scenarios were specified for the adjoining 5 or 10 years. These specified conditions like declining rates, rising rates, a gradual decrease in rates espouseed by a fast rise, etc. Ten or twenty scenarios could be specified in all.* Assumptions were made about the performance of assets and liabilities under each scenario. They included prepayment rates on mortgages or surrender rates on insurance products.* Assumptions were excessively made about the firms performance-the rates at which new seam would be acquired for various products, guide for the product.* Market conditions and economic factors like inflation r ates and industrial cycles were too included.* Based upon these assumptions, the performance of the firms rest period sheet could be communicate under each scenario. If projected performance was poor under specific scenarios, the ALM committee would adjust assets or liabilities to address the indicated moving plastic film. Let us consider the procedure for sanctioning a commercial loan. The borrower, who approaches the bank, has to appraise the banks credit department on various parameters like industry prospects, operational efficiency, financial efficiency, management qualities and other things, which would influence the working of the familiarity. On the basis of this appraisal, the banks would then coach a credit-grading sheet after covering all the aspects of the company and the business in which the company is in. Then the borrower would then be aerated a authoritative rate of interest, which would cover the risk of lending.* But the main shortcoming of scenario analys is was that, it was highly dependent on the choice of scenarios. It similarly mandatory that many assumptions were to be made about how specific assets or liabilities will perform under specific scenario. Gradually the firms recognized a potential for different type of risks, which was overlooked in ALM analyses. Also the deregulating of the interest rates in US in mid 70 s compelled the banks to undertake active computer programning for the structure of the balance sheet. The hesitancy of interest rate movements gave rise to Interest Rate Risk thereby causing banks to look for processes to manage this risk. In the wake of interest rate risk came liquid Risk and Credit Risk, which became inherent components of risk for banks. The information of these risks brought Asset Liability Management to the centre-stage of financial intermediation. Today even loveliness Risk, which until a few years ago was given only unearned mention in all but a few company ALM reports, is now an in dispensable part of ALM for most companies.. Some companies have asleep(p) even further to include Counterparty Credit Risk, Sovereign Risk, as intumesce up as Product Design and Pricing Risk as part of their overall ALM.* Now a days a company has different reasons for doing ALM. While some companies view ALM as a compliance and risk mitigation exercise, others have started using ALM as strategic model to achieve the companys financial objectives. Some of the business reasons companies now state for implementing an effective ALM good example include gaining competitive advantage and change magnitude the value of the organization.Asset-Liability Management cash advanceALM in its most app arnt sense is based on bullion management. Funds management represents the core of sound bank cookery and financial management. Although reenforcement practices, techniques, and norms have been revised substantially in recent years, it is not a new concept. Funds management is the process of managing the spread between interest earned and interest paid while ensuring adequate liquidness. Therefore, monetary resource management has following three components, which have been discussed briefly.A. liquid state ManagementLiquidity represents the ability to accommodate decreases in liabilities and to fund increases in assets. An organization has adequate fluidness when it can obtain sufficient funds, either by increasing liabilities or by converting assets, promptly and at a reasonable salute. Liquidity is essential in all organizations to compensate for expected and unexpected balance sheet fluctuations and to provide funds for growth. The price of liquidity is a ply of market conditions and market perception of the risks, both interest rate and credit risks, reflected in the balance sheet and off-balance sheet activities in the case of a bank. If liquidity inescapably are not met by center of liquid asset holdings, a bank whitethorn be forced to restructure o r acquire additional liabilities under adverse market conditions. Liquidity exposure can stem from both sexually (institution-specific) and externally generated factors. Sound liquidity risk management should address both types of exposure. External liquidity risks can be geographic, systemic or instrument-specific. cozy liquidity risk relates by and large to the perception of an institution in its various markets local, regional, national or international. ratiocination of the adequacy of a banks liquidity dumbfound depends upon an analysis of its * Historical backup requirements* Current liquidity position* Anticipated forthcoming financial support postulate* Sources of funds* Present and anticipated asset quality* Present and future earnings capacity* Present and planned capital positionAs all banks are affected by changes in the economic climate, the monitoring of economic and money market trends is key to liquidity readying. Sound financial management can minimize the negative effects of these trends while accentuating the dictatorial ones. Management mustiness also have an effective contingency plan that identifies minimum and maximum liquidity needs and weighs alternative courses of action designed to have those needs. The bell of maintaining liquidity is another important prerogative. An institution that maintains a grueling liquidity position may do so at the opportunity constitute of generating higher earnings. The amount of liquid assets a bank should hold depends on the stability of its deposit structure and the potential for fast magnification of its loan portfolio. If deposit accounts are composed primarily of small stable accounts, a relatively low allowance for liquidity is necessary.Additionally, management must consider the current ratings by regulatory and rating agencies when preparedness liquidity needs. Once liquidity needs have been determined, management must decide how to jibe them through asset management, liability management, or a combination of both.B. Asset ManagementMany banks (primarily the smaller ones) tend to have little influence over the size of their rack up assets. Liquid assets enable a bank to provide funds to satisfy increased demand for loans. But banks, which rely solely on asset management, concentrate on adjusting the price and handiness of credit and the level of liquid assets. However, assets that are much assumed to be liquid are sometimes difficult to liquidate. For example, investment funds securities may be pledged against public deposits or repurchase agreements, or may be hard depreciated because of interest rate changes. Furthermore, the holding of liquid assets for liquidity purposes is less take upive because of thin profit spreads.Asset liquidity, or how salable the banks assets are in terms of both time and cost, is of primary winding greatness in asset management. To maximize profitability, management must guardedly weigh the full return on liquid asse ts (yield plus liquidity value) against the higher return associated with less liquid assets. Income derived from higher yielding assets may be offset if a forced sale, at less than book value, is necessary because of adverse balance sheet fluctuations.Seasonal, cyclical, or other factors may cause aggregate outstanding loans and deposits to move in opposite directions and result in loan demand, which exceeds available deposit funds. A bank relying rigorously on asset management would restrict loan growth to that which could be supported by available deposits. The decision whether or not to use liability sources should be based on a complete analysis of seasonal, cyclical, and other factors, and the costs involved. In addition to supplementing asset liquidity, liability sources of liquidity may serve as an alternative even when asset sources are available.C. Liability ManagementLiquidity needs can be met through the discretionary erudition of funds on the basis of interest rate com petition. This does not preclude the option of selling assets to meet funding needs, and conceptually, the availability of asset and liability options should result in a lower liquidity maintenance cost. The alternative costs of available discretionary liabilities can be compared to the opportunity cost of selling various assets. The major difference between liquidity in larger banks and in smaller banks is that larger banks are better able to control the level and composition of their liabilities and assets. When funds are required, larger banks have a wider variety of options from which to select the least dearly-won method of generating funds. The ability to obtain additional liabilities represents liquidity potential. The marginal cost of liquidity and the cost of incremental funds acquired are of paramount importance in evaluating liability sources of liquidity. Consideration must be given to such factors as the frequency with which the banks must regularly refinance maturing purchased liabilities, as well as an evaluation of the banks ongoing ability to obtain funds under normal market conditions.The obvious difficulty in estimating the latter is that, until the bank goes to the market to borrow, it cannot determine with complete realty that funds will be available and/or at a price, which will maintain a positive yield spread. Changes in money market conditions may cause a rapid deterioration in a banks capacity to borrow at a favorable rate. In this context, liquidity represents the ability to attract funds in the market when needed, at a reasonable cost vis--vis asset yield. The access to discretionary funding sources for a bank is eternally a function of its position and reputation in the money markets.Although the acquisition of funds at a competitive cost has enabled many banks to meet expanding customer loan demand, misuse or improper implementation of liability management can have severe consequences. Further, liability management is not riskl ess. This is because concentrations in funding sources increase liquidity risk. For example, a bank relying heavily on foreign interbank deposits will experience funding problems if overseas markets apprehend instability in U.S. banks or the economy. Replacing foreign source funds might be difficult and costly because the domestic market may view the banks sudden need for funds negatively. Again over-reliance on liability management may cause a tendency to minimize holdings of short-term securities, relax asset liquidity standards, and result in a large concentration of short-term liabilities supporting assets of longer maturity. During times of tight money, this could cause an earnings squeeze and an illiquid condition.Also if rate competition develops in the money market, a bank may incur a high cost of funds and may elect to lower credit standards to book higher yielding loans and securities. If a bank is purchasing liabilities to support assets, which are already on its books, the higher cost of purchased funds may result in a negative yield spread.Preoccupation with obtaining funds at the low possible cost, without considering maturity distribution, greatly intensifies a banks exposure to the risk of interest rate fluctuations. That is why banks who particularly rely on wholesale funding sources, management must constantly be aware of the composition, characteristics, and diversification of its funding sources.Procedure for Examination of Asset Liability ManagementIn order to determine the efficacy of Asset Liability Management one has to follow a comprehensive procedure of reviewing different aspects of innate control, funds management and financial ratio analysis. Below a step-by-step approach of ALM interrogation in case of a bank has been outlined. note 1The bank/ financial statements and internal management reports should be reviewed to assess the asset/liability mix with particular emphasis on.* Total liquidity position ( symmetry of highly liqu id assets to total assets)* Current liquidity position (Minimum ratio of highly liquid assets to demand liabilities/deposits)* Ratio of Non Performing Assets to Total Assets* Ratio of loans to deposits* Ratio of short-term demand deposits to total deposits* Ratio of long-term loans to short term demand deposits* Ratio of contingent liabilities for loans to total loans* Ratio of pledged securities to total securitiesStep 2It is to be determined that whether bank management adequately assesses and plans its liquidity needs and whether the bank has short-term sources of funds. This should include* Review of internal management reports on liquidity needs and sources of satisfying these need..* Assessing the banks ability to meet liquidity needsStep 3The banks future development and expansion plans, with focus on funding and liquidity management aspects has to be looked into. This entails.* determine whether bank management has effectively addressed the issue of need for liquid assets t o funding sources on a long-term basis.* Reviewing the banks budget projections for a certain period of time in the future.* Determining whether the bank really needs to expand its activities. What are the sources of funding for such expansion and whether there are projections of changes in the banks asset and liability structure.* Assessing the banks development plans and determining whether the bank will be able to attract planned funds and achieve the projected asset growth.* Determining whether the bank has included sensitivity to interest rate risk in the development of its long term funding strategy.Step 4Examining the banks internal audit report in regards to quality and potential in terms of liquidity management.Step 5Reviewing the banks plan of satisfying unanticipated liquidity needs by.* Determining whether the banks management assessed the potential expenses that the bank will have as a result of unanticipated financial or operational problems.* Determining the alternat ive sources of funding liquidity and/or assets subject to necessity.* Determining the contact of the banks liquidity management on net earnings position.Step 6Preparing an Asset/Liability Management Internal Control Questionnaire which should include the following Whether the add-in of directors has been consistent with its duties and responsibilities and includedo A line of authority for liquidity management decisions.o A mechanism to coordinate asset and liability management decisions.o A method to identify liquidity needs and the means to meet those needs.o Guidelines for the level of liquid assets and other sources of funds in relationship to needs. Does the planning and budgeting function consider liquidity requirements. Are the internal management reports for liquidity management adequate in terms of effective decision do and monitoring of decisions. Are internal management reports concerning liquidity needs watchful regularly and reviewed as appropriate by senior manageme nt and the board of directors. Whether the banks indemnity of asset and liability management prohibits or de alrights certain restrictions for attracting borrowed means from bank related persons (organizations) in order to satisfy liquidity needs.Does the banks policy of asset and liability management provide for an adequate control over the position of contingent liabilities of the bank. Is the foregoing information considered an adequate basis for evaluating internal control in that there are no world-shaking deficiencies in areas not covered in this questionnaire that impair any controls.Guidelines on Asset-Liability Management (ALM) System -AmendmentsReserve Bank had issued guidelines on ALM system vide Circular date February 10, 1999, which covered, among others, interest rate risk and liquidity risk measurement / reportage framework and prudential limits. As a measure of liquidity management, banks are required to monitor their cumulative mismatches across all time buckets i n their Statement of geomorphologic Liquidity by establishing internal prudential limits with the sycophancy of the visiting card / Management Committee. As per the guidelines, the mismatches (negative gap) during the time buckets of 1-14 days and 15-28 days in the normal course, are not to exceed 20 per cent of the cash outflows in the respective time buckets.2. Having regard to the international practices, the level of worldliness of banks in India and the need for a sharper assessment of the efficacy of liquidity management, Reserve Bank of India has reviewed guidelines on 24th October 2007 and decided that (a) the banks may read a more granular approach to measurement of liquidity risk by splitting the first time bucket (1-14 days at present) in the Statement of Structural Liquidity into three time buckets viz. Next day , 2-7 days and 8-14 days.(b) the Statement of Structural Liquidity may be compiled on best available data coverage, in due consideration of non-availability of a fully networked environment.Banks may, however, make concerted and requisite efforts to retard coverage of 100 per cent data in a apropos manner.(c) the net cumulative negative mismatches during the Next day, 2-7 days, 8-14 days and 15-28 days buckets should not exceed 5 % ,10%, 15 % and 20 % of the cumulative cash outflows in the respective time buckets in order to recognise the cumulative impact on liquidity.(d) banks may undertake dynamic liquidity management and should prepare the Statement of Structural Liquidity on daily basis. The Statement of Structural Liquidity, may, however, be reported to run batted in, once a month, as on the thirdly Wednesday of every month.3. The format of Statement of Structural Liquidity has been revised suitably and is furnished. The guidance for slotting the future cash flows of banks in the revised time buckets has also been suitably modified and is furnished at Annex II.4. To enable the banks to fine tune their existing MIS as per the m odified guidelines, the revised norms as well as the supervisory reporting as per the revised format would arrive with effect from the period beginning January 1, 2008 and the reporting frequency would continue to be monthly for the present. However, the frequency of supervisory reporting of the Structural Liquidity position shall be fortnightly, with effect from the fortnight beginning April 1, 2008.Asset Liability Management in Indian ContextThe post-reform banking scenario in India was marked by interest rate deregulation, entry of new private banks, and gamut of new products along with great use of information technolog.To cope with these pressures banks were required to evolve strategies rather than ad hoc solutions. Recognising the need of Asset Liability management to develop a strong and sound banking.system, the RBI has come out with ALM guidelines for banks and FIs in April 1999.The Indian ALM framework rests on three pillars. ALM Organisation (ALCO)The ALCO or the Asset Liability Management Committee consisting of the banks senior management including the CEO should be responsible for adhering to the limits set by the board as well as for deciding the business strategy of the bank in line with the banks budget and decided risk management objectives. ALCO is a decision-making unit responsible for balance sheet planning from a risk return perspective including strategic management of interest and liquidity risk. The banks may also authorise their Asset-Liability Management Committee (ALCO) to fix interest rates on Deposits and Advances, subject to their reporting to the Board right off thereafter. The banks should also fix maximum spread over the PLR with the approval of the ALCO/Board for all advances other than consumer credit. ALM Information SystemThe ALM Information System is required for the collection of information accurately, adequately and expeditiously. Information is the key to the ALM process. A good information system gives the bank m anagement a complete picture of the banks balance sheet. ALM ProcessThe basic ALM processes involving identification, measurement and management of risk parameter.The RBI in its guidelines has asked Indian banks to use traditional techniques like Gap Analysis for monitoring interest rate and liquidity risk. However RBI is expecting Indian banks to move towards sophisticated techniques like Duration, Simulation, VaR in the future. For the accrued portfolio, most Indian Private Sector banks use Gap analysis, but are gradually moving towards duration analysis. Most of the foreign banks use duration analysis and are expected to move towards advanced methods like rate at Risk for the entire balance sheet.some foreign banks are already using VaR for the entire balance sheet.ConclusionALM has evolved since the early 1980s.Today, financial firms are increasingly using market value accounting for certain business lines. This is true of universal banks that have trading operations.Techniques of ALM have also evolved.The growth of OTC derivatives markets has facilitated a variety of hedging strategies. A significant development has been securitization, which allows firms to directly address asset-liability risk by removing assets or liabilities from their balance sheets. This not only eliminates asset-liability risk it also frees up the balance sheet for new business.Thus, the scope of ALM activities has widened. Today, ALM departments are addressing (non-trading) foreign exchange risks as well as other risks. Also, ALM has extended to non-financial firms. Corporations have adopted techniques of ALM to address interest-rate exposures, liquidity risk and foreign exchange risk. They are using related techniques to address commodities risks. For example, airlines hedging of fuel prices or manufacturers hedging of steel prices are a lot presented as ALM. Thus it can be safely said that Asset Liability Management will continue to grow in future and an efficient ALM techniqu e will go a long way in managing volume, mix, maturity, rate sensitivity, quality and liquidity of the assets and liabilities so as to earn a sufficient and acceptable return on the portfolio.

Literature Review on Leadership Theories

Literature brushup on leadinghip Theories1. IntroductionThis chapter examined the literature of idle wordsing formulas on organisational loading among populaceagers. The study of loss leading is seen as complicated beca part in that location has non yet reached either parallelism among the inquiryers in terms of the real importee of leading. Professions from contrasting fields somewhat the world such as researchers, philosophers, system of rulesal leaders had attempted to define the concept and nitty-gritty of leading (Woods, 2007). As there be a lot of expositions define by professions around the world nigh the term of lead, this study helps to identify the concepts of leading in rank to improve leading pr stand forices on nerveal overstretchtal.The elements that go away be discussed in this chapter were ab step forward theories of leadership that nourish been argued centuries. hence the definitions of leadership entrusts and flipper dimension s of leadership holds im range be explained in detail. Lastly, the definition of establishmental committal pass on to a fault be identified and be elaborated in detail.2. leadershiphip TheoriesThere had been existence of arguments about the definition of leadership for some(prenominal) centuries (Woods, 2007). It was indicated that the term of leadership potfulnot be specify easily. However, the existence of leadership in an arranging keisternot be denied in terms of its role in achieving the designs and objectives of the government (Grojean, Resick, Dickson Smith, 2004, p.224). The scientific study of leadership became popular on 20th degree Celsius and a lot of studies at that time were mainly steeringed on the effectualness of leadership (Weinberger, 2009 Yukl, 1998).Daft (2005) defined leadership as a relationship between deuce divulgeies which were leaders and chase that who were leave behinding to do a sh ard value and tense up toward a dual-lane missio ns and objectives in concert (Lee, 2008). in any case that, leadership consisted of the heart that a leader acts as an lawsuit or role mock up for the employees so that they can follow the footf each of the leader on the path towards the accomplishment of their tasks (Knab, 2009). The members in an organisation angle to create the knowledges of what capabilities and criteria should be posses by an sound leader. Therefore, leadership was seen as useful when the leaders are competent to unfold and maintain the commitment of the employees do in force(p) monitoring and come onment (Knab, 2009). check to Weinberger (2009), leadership can be nurtured in the attitudes and behaviours of the state with consistent training and practices. As many a(prenominal) leaders in the leading presidencys today are unable to take on the inescapably of squad. Therefore, the studies of the leadership in terms of team melt had received attention by the researchers around the world (Car roll and Levy, 2010). This is because incompatible leader hand disparate attitudes and behaviours. Thus, they exit effect in different types of leadership practices under different destiny (Morgeson, DeRue, and Karam, 2010 McGrath, 1962).In current century, the requirement of a leader to practice rise in the leadership is getting more(prenominal) than difficult. For the situation nowadays, leaders throw away to confront with more dynamic environment compared to the working environment that was slight challenge for a few centuries ago (Leonard and Lang, 2010). The rough-and-ready leaders were those who were able to fulfil their obligation perfectly and were able to deliver the goods the expectation of the organization and its stakeholders (Weinberger, 2009 Goleman, 2000).There is no comprehensive of the possibility and meaning of the term leadership, so it is difficult to determine what a leader should react and how the leader should arrange in a special(prenominal) si tuation. Regardless of the various meaning and definition of leadership, it continues to be angiotensin-converting enzyme of the close widely researched topics today. The previous research on leadership had spur out different types of leadership theories such as outstanding public Theory, Trait theory, happening Theory, behavioral Theory, Transactional Theory, and Transformational Theory. Each of the leadership theories mentioned has their own meaning and explanation.The existence of different types of leadership theories indicated the efforts of previous researchers in the studies of leadership. Those theories comprise classic role for the further literature study of the leadership (Morgeson, DeRue, and Karam, 2010). The focus styles in Asian countries are different with those in western sandwich countries. Therefore, there is difficult to practice the western style of leadership in Asian countries such as Malaysia. Consequently, the leadership styles and theories that are accepted by western countries whitethorn not fetch the notable pertain on the care styles of organizations in Malaysia (Lee, 2008). Every leader is different in his or her attitudes, behaviours, and focusing styles. Hence, there is no single theory works for all leaders. Leaders need to develop their own leadership approach by learning more about the following leadership theories.Great Man TheoryTrait theoryContingency TheoryLeadership TheoriesBehavioral TheoryTransactional TheoryTransformational Theory2.1.1 Great Man TheoryResearchers who moderate the Great Man Theory believe that multitude are innate(p) with the ability and competency to become a leader (Penn, 2008). The earlier studies defined that Great Man Theory described the leaders that had achieved massiveness in their behaviours and attitudes (Daft, 2008). In the sensitive era of today, there are still tidy sum that are resulting to believe in this theory. Although this theory may hefty old-fashioned in the eye s of some people in management team today, research suggests that some people actually hold the intelligence, spirit traits, and characteristic that lead them to become penny-pinching leader (Penn, 2008 Yaverbaum and Sherman, 2008). The term Great Man Theory was world-class studied by Thomas Carlyle (1841) who suggested that great men are the people that posses the intelligent and created the history of the world. Carlyle argued that great man is born with well personality traits, good behaviours, and high degree of knowledge. They are the people that able to facilitate their power and ability of leadership and stretch out minded which lead them to become a great leader and will leave their footprints in the legend and history (Eckmann, 2005).LeaderBorn nature traits Behaviours Knowledge2.1.2 Trait TheoryTrait Theory suggested that an impressive leader can be identified through the recognition of his or her traits. Traits are the personal characteristic that possess by a leade r, such as intelligence, knowledge, value, ideas, self-confidence, and attire or appearance (Daft, 2008). Trait theory suggested that a leader that complete with perfect and unique characteristic will become an effective leader. There were several studies found that potential leader will posses that akin chief of an effective leader.Trait theory had been neglected in the highroad studies of leadership. However, as there had been more researchers lookd the studies of leadership theories, more research had been done on this theory in recently years (Penn, 2008). Since the studies about straits theory has getting more popular, more research can be done on opposite personal traits that a leaders possess such as physical and social characteristic so that a more specific and appropriate trait of an effective leader can be develop. harmonize to Daft (2008), there were some studies of this theory showed that resembling kind of personal characteristic may not suitable for all(prenom inal) situation as the environment is ceaselessly changing.LeaderCharacteristics or Traits intuition Values Self- confidence Appearance2.1.3 Contingency TheoryContingency theory suggested that effective leaders will perform an appropriate leadership practices correspond to the different environment and situation (Penn, 2008). They will commit in the management styles that suitable and acceptable by the employees and organizations. check to this theory, the challenge and environment for every organization was different, so there was no a particular leadership or management style that can harmonize into all kinds of scenarios. A leadership style will drop a positive impact for the organization and its member when the style fulfils the requirement of the situation and expectations of the employees. There were two Contingency had been identified in the past studies which were Path-Goal theory and Situational theory (Penn, 2008). fit to Daft (2008), Path- Goal Theory suggested leade rs can growing the commitment and enthusiasm of the employees to their supposes through the implementation of the leaders behaviours that fulfil the expectation of the employees. Besides that, this theory emphasized that employees organisational commitment can be append through the using of give back to show the appreciation of contributions of the employees. On the other hand, Situational Theory emphasized that suitable and appropriate leadership styles will be formed for different situations and leaders turn over to make incontestable that their leadership styles are match with the abilities of the subordinates and function in the right situation (Hamilton, 1992).Contingency TheoryPath-Goal Theory Situational TheoryLeader Behaviour Use of Rewards discipline Situation Leadership Style2.1.4 Behavioral TheoryIn seam to other theory discussed above, Behavioural Theory suggested that the actions of leaders will have a positive impact when the leaders perform appropriate behavio urs that fit into the situations. In other words, everyone can learn to become a good leader if he or she can match the categories of their behaviours with the appropriate leadership styles (Katsuhiko, 2007 Shapira, 1997).harmonize to Coleman (1986), Blake and Mouton of the University of Texas had proposed a two-dimensional leadership theory called the leadership grid. Each axis on the grid is a nine-point scale, with 1 meaning low concern and 9 meaning high concern. Figure 4.1.4 shows the leadership grid.According to Blake and Mouton (1980), Team management (9,9) was considered as the most effective leadership style because all members in the organizations that work together as a team will complete the tasks faster and can achieve a better result through the performance of knowledge sacramental manduction in a team. Country club management (1,9) occurred when the leaders were post to be more concern about the well-being of the employees instead of the productiveness of the conf ederation. In a contrast, Authority- compliance management (9,1) occurred when the leaders show more concern of the productivity instead of the well-being of the employees. Nevertheless, Middle-of-the-road management (5,5) reflected a moderate amount of concern for both(prenominal) people and production. Impoverished management (1,1) was identified as the worst leadership style as the leaders are not concern for both people in the organization and productivity of the organization. Managers are not put their efforts in the maintaining of the relationship with the subordinates. They in any case do not concern of the sustainability of the organizations production.2.1.5 Transactional TheoryTransactional leadership suggested that there was an agreement of contract made between the leader and follower about the obligations of both parties (Penn, 2008). According to the agreement, the followers need to perform and accomplish the task and book of instructions given by the leaders with fu ll commitment. Instead, leaders have to understand the contributions of the employees and reward them if the tasks given are being fulfilled in effect. Transactional leadership suggested that people tend to put in more effort in order to complete tasks given when there is existence of the rewards and reorganization. However, in the today versatile working environment that full with challenges, there are getting more people that put in effort to complete the task not by the attraction of rewards, they are doing so due to the self pauperization and the inspiration of challenge themselves. Transactional leadership consists of two doers which are contingent reward and management by exception (Bass, 1990).Contingent reward is formed when there is a rough-cutly agreement between leaders and followers in with the ultimate purpose of achieving the objectives and goals of the company. On the other hand, management by exception is focusing on task execution which means that there is mutu al commit between the leaders and the employees. Leaders will try their outdo in correcting the problems arise in order to maintain employees well death penalty (Weinberger, 2009).Transactional leadershipContingent Reward Management by Exception reciprocal Agreement Focusing on task execution Correcting Problems2.1.6 Transformational Theory burn down (1978) developed the original idea of Transformational Theory. This theory was defined as a process that transforms people through the motivation, values, and well planning goals which can lead the leaders and followers to higher level of satisfaction and successful in achieving target (Anagnoste, Agoston, Puia, 2010). This theory also indicated the ability of leaders in satisfy the needs and expectations of the followers (Kuhnert Lewis, 1987).Bass (1985) suggested that Transformational Theory emphasized the lure of leaders to the followers by developing a way that can come on the commitment of the followers to achieve a better p erformance (McCall, Jr., Morgan, 1986). Transformational leaders tend to have the capability to glorify the subordinates. They incessantly advertise the employees to explore deeper of their potential so that they can be more confident about themselves and can sum more in the effort of achieving the goals of organization (Carless, 2001).According to Bass (1985), there were four major grammatical constituents that moldiness be dependable by the leaders that wanted to commit in Transformational Leadership. The first chemical element was Charisma which emphasized on the characteristics expressed by the leaders that can attract and retain the employees through their persuasive words and actions. The second ingredient was Inspirational leadership which was defined as a sub factor within charismatic leadership behaviour. The leaders that commit in this leadership have the capability to motivate and influent others through the emotional qualities. The leash factor was Individualiz ed shape which means that the leaders concern for the needs and development of each employee and they remark the dignity of each employee. The last factor was Intellectual Stimulation which implied the intelligent of leaders in problem solving. They encourage the subordinates in asking question and explore the potential of employees to be yeasty (McCall, Jr., Morgan, 1986).Transformational LeadershipCharisma Inspirational Individualized IntellectualLeadership Consideration Stimulation2.2 Leadership PracticesThere were several nerves of the studies of leadership practices because it compromised by different identifications and reorganization (Morgeson, DeRue, and Karam, 2010). An effective leadership practices is the main get wind to improve employees achievement. Therefore, the focus on this study is to identify the effectiveness of leadership practices in promoting the followers to achieve higher level of organizational commitment. According to Knab (2009), leaders that perfo rm well leadership practices have the ability to motivate and generate rice beer of the employees to the jobs. At the alike(p) time, they are the leaders that can inspire the employees to strive for the wellness of the organization and productivity and look beyond their own self interest.Kouzes and Posner (1993) suggested that credibility is characteristic that can be learnt by leaders through the experience of previous actions. Leaders that had been through different kinds of challenges tend to be more mature and know the way to handle their relationship with subordinates (Woods, 2007). Leaders are responsible to strive and maintain the credibility through move behaviours. With credibility as the essential ingredient of leadership, leaders need to always improve in that particular area in order to increase the trust and commitment of employees to them.Kouzes and Posner (2007) also suggested that the theory of leadership practices had been studied by many researchers and those pr actices can be studied jointly or independently. According to the previous research, practices of credible leaders can be defined in quint categories which are(a) contend the Process(b) Inspire a dual-lane Vision(c) Enable Others to Act(d) Model the agency(e) Encourage the toneLeadership can happen at any location, in any form and occur in anytime. The effective leaders that organize the people well can accomplish many and different kinds of difficult tasks. According to Kouzes and Posner (2009), every leader that wanted to success in the leadership must commit in the five dimensions of leadership practices that mentioned earlier.2.2.1 Challenge the ProcessThe meaning of this Challenge the Process leadership practice was defined detail by Kouzes Posner (1995). The previous studies showed that this particular leadership practice described the characteristic of a leader that always look into the opportunity and space for improvement. They are the congregation of people that wil ling to confront with the challenges and risks. Besides that, they always prepare themselves to establishment the changing of the world (Knab, 2009). Leaders that commit in this leadership practice are not horrified of failure, instead they take failure as a process to grow up and improve.The leadership practice of Challenge the Process emphasized on the attitude of leaders that always disposed(p) to venture out. They are the group of people that able to accept new creations and encourage the followers to accept new products, systems, and processes. In fact, they are the one that bring into the new products or services into the organization.The leaders sedulous in this leadership practices are the originators of innovation. Therefore, this leadership practice suggested that the leaders to constantly withdraw the situation from different dimensions so that they can create a different and un anticipate new thing that can total to the productivity of the organization (Kouzes Posn er, 2009).2.2.2 Inspire a share VisionMembers of the organization expect their leaders to have a clear image of the future and dowry the good deal with them. Leaders who affiliated leadership practice of inspire a shared vision will helps everyone to formulate a clear picture about future goals that are acceptable and achievable by everyone (Knab, 2009). Leaders play a significant role in communicates the objectives and future plans to the employees in an effective way, and in the meanwhile inspires them to work towards a shared vision.According to Hyatt (2007), the effective leaders that commit in this leadership practice have to share their ideas with the employees. Therefore, the employees will know the direction that of their effort and will strive towards the goal with full commitment. Besides that, the leadership practice of Inspire a Shared Vision emphasized on the behaviours of the leaders that allow the employees to take part in the forming of future vision (Hyatt, 200 7 Gabris Ihrke, 2000). Thus, employees will have a odour that they are part of the organization and play an important part in future planning.Leaders that engaged in this practice are willing to accept known possibilities of the future. They tend to figure out the outcome first before they give the instructions to start a new project. Therefore, they will form a clear picture about what exactly they are pursuing and the best way to achieve the successful. Furthermore, they create a general and shared vision taking into account of the needs and expectations of all members in the organization (Kouzes Posner, 2009).2.2.3 Enable Others to ActAccording to Knab (2009), an effective leader that engaged in leadership practice of Enable Other to Act have the ability to influent others and encourage others to act in the way that expected by the leader. They are the leaders that support and encourage the employees to speak out their mind and contribute their ideas in the projects. Besides that, they always provide options for the employees and inspire the commitment of the employees.This leadership practice emphasized the effort of leaders and subordinates work as a team (Woods, 2007). Therefore, leaders play an important part in nurturing mutual trust within the team members (Hyatt, 2007 Tan Tan, 2000). In order to achieve successful in a project, mutual trust and cooperation among the team members are extremely important.This practice also suggested that leaders enable others to act not by forcing or strictly command. Instead, they encourage others to act through the delegation of power (Hyatt, 2007 Gabris Ihrke, 2000). They allowed the employees to make their own decision as eagle-eyed as the decision they make was for the good of the organization. Moreover, they always use the word we to emphasize the important to work as a team (Kouzes Posner, 2009). Thus, the employees will have a perception that they are on the same boat with others member, then the organi zational commitment will increase.2.2.4 Model the WayThe leadership practice of Model the Way suggested that leaders can develop and foster mutual trust between the leader and subordinates and within the subordinates by being the role model for the subordinates (Knab, 2009). Leaders that engaged in this practice are the leaders that ethic, honest and respect dignity of others. They will distinctly define the obligations of employees and give a specific instruction so that employees will receive a clear picture of what are the expectations of leaders to them.According to the study of Woods (2007), it was defined that leaders that engaged in this particular leadership practices are able to express themselves with a clear values. Then they will make sure that their behaviour and attitudes are ordered with the values they show to the employees. Competency leaders know that they must involve in the role model expected by employees so that they can have the trust of the employees and u pgrade the commitment of the employees.To be an effective leader that model the way, leaders have to make sure their values and beliefs were accepted by the employees and demonstrate their daily actions that committed to their values and standards (Hyatt, 2007 Gabris Ihrke, 2000). Leaders actions will have more impact on the commitment of the employees than their words or instructions. However, leaders actions must be consistent with what they are promised to the employees.Besides that, leaders have to identify their position in the eyes of employees. They have to make sure that their existence in the organization is important and their instructions always followed by the subordinates. The leadership practice of Model the Way explained the right attitudes that leaders should commit in their direct interaction with employees. The leaders that act as a role model tend to be the leaders that earn the respect of the employees (Kouzes Posner, 2009).2.2.5 Encourage the HeartLeaders that engaged in leadership practice of Encourage the Heart are willing to show their appreciation to the employees publicly, and always find ways to celebrate the achievement of the subordinates (Knab, 2009). Therefore, people will be more enthusiasm to their job as their contributions are appreciated by the leaders. Besides that, the employees that receive the recognition of the leaders will increase in their self-confidence and self-esteem (Hyatt, 2007 Javidan Waldman, 2003). Thus, they will not be afraid to share their ideas and knowledge with other colleagues.The increase of confidence of employees will then encourage the commitment of employees in their jobs. This will be a competitive receipts for the organization to compete in this challenging world. The high level of organizational commitment among the employees will then increase the productivity ultimately.In the process of upgrading the quality of the products and services require the leaders to motivate the heart of the em ployees. Leaders play an essential role to ensure that the employees values are align with the objectives of the company (Kouzes Posner, 2009). The leaders that appreciate the effort of the employees will increase the moxie of be of the employees. When the employees feel that they are a part of the members in the organization, they will be more commit in their jobs and willing to repose with the organization even in the through tough times.2.3 organizational commitmentOrganizational commitment had received highly attention of the researchers in the previous studies. front research had identified that organizational commitment had a significant influence in some aspect of working attitudes and behaviours such as job satisfaction, job performance, and turnover rate (Lee, 2008 Lok and Crawford, 2001 Yousef, 2000). Organizational commitment focuses on employees commitment to the organization.Mowday et al., (1974) explained the definition of organizational commitment as the belief of employees regarding the organizations objectives and values. This will think the desire of the employees effort and the willingness to contribute to the organization. The employees will be more committed in their organizations if the values and culture of the organizations align with their expectations. Then they will stay loyalty to the organization.According to Cole (2000), a committed worker always believes in companys products and services. He or she is willing to put in a lot of effort and even willing to make sacrifices as long as the purpose is for the good of company. Besides that, the employees are willing to interject the company to their friends. They will feel proud of their company and recommend their organization to the others as the best place to work for. Furthermore, they will choose to contribute to the company that spur out their organizational commitment rather than the company that provide high salary but absence of the backbone of belonging (Lee, 2008).Me yer and Allen (1991) developed third different types of organizational commitment. According to Woods (2007), the three aspects of organizational commitment were defined as below.Affective Commitment This aspect of the commitment described the feeling of employees to the organization that expressed in a positive way. They feel attach to the organization because the organization provided them a sense of belonging. The choose stay in the organization because they want to.Continuance Commitment This aspect of the commitment explained the perceptions of the employees that they will lose their benefits if they leave the organization. Besides that, they afraid to suffer the cost of losing their friendship with colleagues and the cost of losing the economic cost such as insurance, welfare, bonus, and etc. Therefore, they will choose to stay in the organization because they have to.Normative Commitment This aspect of the commitment suggested that the employees continue to contribute to the organization as they have a feeling of obligation. There will be many causes of that feeling. For instance, an employee will have a sense of honorable obligation and afraid to leave the company as the company had invested a lot in his or her training. Therefore, the employee will have a perception that he or she has the responsibility to stay still in the organization. As a result, the employees will choose to commit in the organization as they feel that they ought to.2.4 SummaryLeadership was defined in many meanings by researchers and it showed that leadership was indeed plays an important role in todays organization. Although there have been many different theories and definitions of leadership, there is still space for further research about leadership (Lee, 2008). Since it was suggested by previous studies that principal of leadership is the key to improve employees achievement, it is important that we continue to investigate what type of leadership is most effective for t he organizations (Knab, 2009).The need for effective and efficient leadership practices are important for the leaders in today organization to engage in. Sufficient and efficient practices of leadership in the organization by leaders will increases the organizational commitment of the employees. As a result, the productivity will also be increased. A leader may have knowledge and skills to act effectively in one situation but he or she may not perform as effectively in a different situation as there is always consist of different challenges in different situation (Lee, 2008 Rad and Yarmohammadian, 2006).In this chapter, the theories of leadership were defined. Subsequently, in this chapter the five leadership practices was explained and its important was discussed as well. Furthermore, the meaning of organizational commitment also be defined and three-component model of commitment was identified.

Ageism at work

suppurateism at manoeuvreINTRODUCTION progressism can be defined as any pose, action, or institutional structure which subordinates a person or group because of sequence or any assignment of roles in baseb solely club purely on the rear end of duration (Traxler, 1980, p. 4). As an ism, jump onism reflects a prejudice in nightspot against unitymagazine(a) adults. successionism, however, is different from different(a) isms (sexism, racism etc.), for origin all(prenominal)y two reasons. First, age classification is non static. An individuals age classification changes as iodin progresses through and through the life cycle. Thus, age classification is characterized by continual change, while the another(prenominal) classification systems traditionally utilise by rules of order such(prenominal) as race and gender remain constant. Second, no whizz is exempt from at nearly point achieving the status of over-the-hill, and at that placefore, unless they die at an ear ly age, experiencing ageism. The by and by is an important distinction as ageism can hence restore the individual on two levels. First, the individual may be ageist with none to others. That is s/he may stereotype other stack on the basis of age. Second, the individual may be ageist with respect to self. Thus, ageist attitudes may hail across the self concept.Much look for has been conducted concerning ageism. However, the empirical evidence is inconclusive. Some explore demonstrates the existence of ageist attitudes (Gerstwhile(a)e Kogan, 1959 Kastenbaum Durkee, 1964a, 1964b Tuckman Lorge, 1953) and other seek does not (Brubaker Powers, 1976 Schonfield, 1985). This discrepancy is most believably the result of methodological differences and, in interpretericular, methodological errors. A brief give-and-take of the study methodological errors or problems found in ageism interrogation may be abetful in clarifying this point.The first major problem is that the maj ority of ageism research suffers from a mono-method bias. In other words, each study used simply one method to operationally define the ageism construct. Methods normally used take on included condemnation completion (Golde Kogan, 1959), semantic differential (Kogan Wallach, 1961 Rosencranz McNevin, 1969), Likert scales (Kilty Feld, 1976), and adjective checklists (Aaronson, 1966). The problem inherent in the use of a mono-method is that any effect found may be an artifact of the method employed rather than the construct under study. Thus, a researcher should employ more than one method to look for organic structure in the results.Another problem, according to Kogan (1979) is the use of within-subjects designs in ageism research. In other words, a subject bequeath be asked to complete a questionnaire regarding both jr. and sure-enough(a) adults. Kogan asserts that by using this methodology, age is pushed to the bring out of a subjects mind. The subject thus becomes aw be that the researcher is looking for age differences. on that pointfore, age differences atomic number 18 found.The use of primarily younger populations to study ageism represents another problem with ageism research. The majority of ageism research uses children, adolescents, or young adults as subjects and examines their perception of former(a) adults. Only a hardly a(prenominal) studies gravel examined the perceptions of the population whom the construct affects most sometime(a) adults. Those studies which have used an older subject population have unfortunately used primarily institutionalized individuals as subjects (Kastenbaum Durkee, 1964a Tuckman Lavell, 1957). Therefore, they do not represent the vast majority of older adults.Another problem with much of ageism research is that it unless examines the negative stereotypes of old age. More recent studies have suggested that while attitudes toward the patriarchal ar increasingly positive, they argon still stereotypi c (Austin, 1985). Therefore, ageism has been expand to include positive stereotypic images. However, these ar rarely studied (Brubaker Powers, 1976). two additional problems are primarily theoretical in nature. First, ageism research rarely examines or attempts to understand the causes of ageism. Thus, while much theoretical work has been conducted concerning the factors contributing to ageism, little empirical research has been conducted in this area. Second, ageism research rarely examines the interaction mingled with ageism and other isms. As more individuals are in a position to experience more than one prejudice, the interaction between these prejudices needs to be examined.The Theoretical Basis of eraismAgeism consists of a negative bias or stereotypic attitude toward maturation and the of age(p). It is maintained in the form of primarily negative stereotypes and myths concerning the older adult. Traxler (1980) outlines four factors that have contributed to this negativ e image of develop. Each will be discussed below.The first factor that is postulated to contribute to ageism is the fear of decease in Western society. Western civilization conceptualizes remnant as outside of the human being life cycle (Butler Lewis, 1977). As such, death is experienced and viewed as an vex to the self. Death is not seen as natural and inevitable part of the life course. This can be contrasted with Eastern philosophy where life and death are all part of a continuous cycle. Death and life are inextricably woven to placeher and the self continues throughout. To be a person, in Western society, however, means that one essential be alive and in control of the events of one1s life. Therefore, death is feared.As death is feared, old age is feared death and old age are viewed as synonymous in American society (Kastenbaum, 1979). Kastenbaum (1973) hypothesizes that ageism attitudes and stereotypes serve to insulate the young and middle-aged from the ambivalency they feel towards the elderly. This ambivalence results from the fact that the older adult is viewed as representing aging and death. Butler (1969) states Ageism reflects a deep seated uneasiness on the part of the young and middle-aged a personal revulsion to and hatred for growing old, disease, disability and a fear of powerlessness, uselessness, and death ((p. 243). This represents the most usually argued basis for ageism.The second factor postulated by Traxler (1980) to contribute to ageism is the accent mark on the offspring culture in American society. For example, the media, ranging from television system to novels, vagabond an emphasis on youth, physical beauty, and sexuality. Older adults are primarily unattended or portrayed negatively (Martel, 1968 Northcott, 1975). The emphasis on youth not only affects how older individuals are perceived but likewise how older individuals perceive themselves. Persons who are dependent on physical appearance and youth for their iden tity are likely to experience loss of self-esteem with age (Block, Davidson, Grumbs, 1981).The emphasis in American culture on productivity represents the tierce factor contributing to ageism in American culture (Traxler, 1980). It should be noted that productivity is narrowly defined in terms of scotch potential. Both ends of the life cycle are viewed as unproductive, children and the aged. The middle-aged are perceived as carrying the burdens imposed by both groups (Butler, 1969). Children, however, are viewed as having future economic potential. In a way, they are seen as an economic investment. Economically, older adults are perceived as a financial liability. This is not to say that older adults are unproductive. However, upon retirement, the older adult is no continuing viewed as economically productive in American society and thus devalued.The fourth factor contributing to ageism in American society and the so-called helping professions is the manner in which aging was o riginally researched. bad controlled gerontological studies have reinforced the negative image of the older adult. When aging was originally studied, researchers went to long-term care institutions where the aged were easy to find. However, only 5 percent of the older population is institutionalized. Thus, the early research on the aged and aging was based upon non-well, institutionalized older individuals. There is still a need for more research to be undertaken using a healthy, community-dwelling older population.The factors cited above represent four contributing factors to ageism. It has been proposed that individual ageist attitudes can be decreased through continual exposure to and work with older adults (Rosencranz McNevin, 1969). However, there appears to be a large societal influence on ageist attitudes. Therefore, until these societal influences are addressed, ageism can not be obliterated. For example, if the fear of death and therefore aging is not in some manner addr essed societally, then younger individuals will continue to attempt to make the older population somehow different from themselves. This differentiation of themselves from older adults, thus serves to protect them from the reality of death. dissimilitude AT WORK PLACEThe number of people claiming to have faced disparity at workbecause of their age has more than tripled in a year, according to official statistics. Figures released by the Tribunal Service show that claims rose from 962 in 2006 to 2,940 in 2007.The figures come just days after(prenominal) Selina Scott reached a settlement with deal phoebe bird, position to be worth 250,000, after claiming she had been the victim of ageism. The 57-year-old presenter sued the broadcaster after claiming she had been lined up to provide maternity cover for Natasha Kaplinsky on Five News but was subsequently overlooked.The figures will reinforce the belief among solicitors that the number of age-related cases will soar over the next few years. Legislation outlawing age discrimination was introduced three years ago, and Melanie Thomas, a solicitor at discrimination law specialists Palmer Wade, verbalize It takes a while for people to understand that they have invigorated rights.Other figures show that there were 1,032 age discrimination claims in tribunals between April and June, compared with 700 claims in the same period last year. In 2007, the mediocre consecrateout for successful age discrimination cases was 8,695, compared with 10,044 for sex discrimination and 17,308 for race claims. Meanwhile, some people have tried to exploit the laws to their own advantage. Margaret Keane, 50, applied for a series of clienteles for recently qualified chartered account statementants and, after failing to get any, tabled compensation claims on the campaign of age discrimination.Gillian Shaw, a solicitor at employment law specialists Ledingham Chalmers LLP, utter There is a financial motivator for claimants to look f or an alternative to a straightforward claim of, say, unfair button because age discrimination, like sex and race discrimination, does not have an velocity limit on the amount of compensation that can be claimed.Scott argued that Channel Five had backed out of a 200,000 presenting deal because they felt she was likewise old, choosing Isla Traquair, 28, instead.A string of former BBC faces including Kate Adie and Anna Ford joined forces to accuse television of discriminating against mature women. Dame Joan Bakewell claimed the medium was dominated by the heinously young.In an interview in todays Observer, Ford claims women suffer the most. Ageism against women, she adds, is a peculiar British tradition. In America, there are women with white vibrissa who are heads of banks, heads of corporations, she said. Where are those women here?The latest political sympathies figures, released earlier this year, showed that the succumb gap between men and women had widened for the first time in years. The new Equality Bill is due to be presented to Parliament this spring, and not a moment similarly soon, according to the Equality and Human Rights Commissions fifth yearly Sex Power report, which recorded a drop for the first time in women attaining top wrinkles. In 12 out of 25 job categories, it found fewer women in top posts than in 2007.Ageism at work in later lifeThere is a commonly assumed view that ageism affects only a small minority of older people in the UK. The popular television character sea captain Meldrew from One Foot in the Grave perfectly captures the stereotype of a grumbling man in later life, stuck in his ways, resistant to change, mixed-up by technology and distanced from the views and activities of young people.Yet, when examining the issue of ageism, it becomes clear that as with all stereotypes this image is flawed.Ageism affects a wide age group, of both genders and all backgrounds.According to a MORI Social Research Institute poll, ageism go yesteryear the list of UK discrimination in the workplace.Over one in fin people (22%) interviewed by MORI felt they had been unfairly discriminated against in the work environment.38 per cent of those who were discriminated against cited age as the most prevalent form of discrimination.Of those who believed they had personally encountered ageism in the workplace, just over half said they were discriminated against because they were too old, however the remaining half claimed to have received unfair interposition for being too young.Estimated cost to the economy of this form of discrimination ranges from 16 billion to 31 billion.These figures are shocking but statistics alone cannot account for the social or personal impact that ageism has on individuals and society at large.The government Age Positive Campaign is insistent that attitudes must change. By 2010 nearly 40 per cent of the working(a) population will be over 45. Supporting this cultural shift, legislation preventing ageism in the workplace will be in place in the UK by 2006. But what the government really wants is change here and now.More and more employers in the public and private sector are convinced by the business case of employing a mixed age workforce. They know that Age Positive can result in operational, market and revenue gains. commingle age workforces are proven to provide employers with a wider available skills base, amend productivity, better morale, increase customer loyalty, greater market share and increased shareholder wealth.METHODOLOGYTodays report by the Employers Forum on Age (EFA), which surveyed 1,000 workers over the age of 16, claims discrimination against older and younger employees remains preponderant in the workplace.It found that 61 per cent of respondents had witnessed ageist behaviour at work, and half did not know about legislation which would make this illegal. The survey similarly shows that young and old people could lose out on pay rises and promotions as a result of their age 31 per cent said they had seen older people paid more for doing exactly the same job as a younger employee. Almost a quarter 23 per cent recalled an older worker being promoted even if the younger campaigner had more experience. EFA director Sam Mercer commented As our research has confirmed, ageism is enzootic in our society and rife in our workplaces. These attitudes need to be challenged and prohibit so that they become as unacceptable as sexism or racism. Although Mr Mercer said the new laws, which will come into force on Sunday, will help provide protection for people who feel that they have been discriminated against on grounds of their age, he added the change in legislation was just the beginning of a long journey towards tackling social prejudices. A spokesman for the Department for Work and Pensions told politics.co.uk the government was committed to ensuring equality at work. He noted that in the past year 208,000 more people aged over 50 are working, claiming the evidence suggests there are many businesses which are keen to weapons the skills and experience older workers can bring. He added We know the practice of ageism is bad for business and the new legislation will ensure that older workers are protected and ageism is stamped out. The governments Age Positive campaign, which sees businesses supplied with an age toolkit, involves working with a wide range of UK businesses to help them recognise the benefits of older workers such as reduced recruitment costs, higher(prenominal) retention rates, greater flexibility, higher productivity, and a broader range of skills and experience, he said. The government will consider whether to throw the compulsory retirement age, currently at 65 for men, or to overthrow it at a formal review in 2011. The EFA report comes in the wake of a separate survey for the charity Help the Aged, which finds only 42 per cent of the 1,000 people questioned were aware of the new l aws on age discrimination. It in addition showed that older people still feared ageism at work, and called on the government to ensure older employees knew their rightsAge discrimination is still rife, and imperative legislation is unavoidable to stamp it out, a survey has said.EXAMPLESAgeism also happen in sports like there is an example of Pakistani aggroup stroller IntikhabAgeism doesnt bother Pakistan developKARACHI Pakistan cricket team coach Intikhab Alam on Tuesday brushed aside negative criticism from those demanding his removal because of hisage, state the campaign was motivated by jealousy.The 67-year-old guided Pakistan to the World Twenty20 title in England in June but Tests and One-day defeats on the Sri Lankatourlast month prompted former players to brand his old age a hindrance in proper coaching.But Alam brushed aside the flak.If there is healthy criticism I take it in a positive way, but targeting my age is negative thinking and I smell jealousy from this, s aid Alam on the sidelines of Pakistan teams training camp.The five-day camp is the final examination phase of Pakistans preparations for the elite eight-nationChampions Trophyto be played in South Africa from kinsfolk 22-October 5.Alam said the same people who were pointing finger at his age were laudatory him a few months ago.I feel sorry for such people who have a personal vendetta against me, said Alam, who was also ascribe for Pakistans success in the 50-over World Cup in Australia in 1992. They cannot jump our T20 success.Former captain Aamir Sohail last week criticised Alam for being too old to handle coaching at international level.Former PakistanCricketBoard chief Tauqir Zia also joined Sohail in targeting Alams age, saying Pakistan needs a young coach to guide them to more successes.Alam, however, insists he is fit.I even take part in coaching drills and my age has never been a hindrance in my work. Coaching is all about experience and football coaches worldwide are ove r 70 years of age but no one speaks against them, said Alam.CONCLUSIONAccording to an ICM poll for Age partake, nearly one third of people know someone who has been a victim of age discrimination at work.Age discrimination is so widespread that 70% of people believe that ageism still occurs, the same as when a similar survey was conducted in 1998.Another one-in-10 people said that they have experienced discrimination by the NHS, health insurance companies, and been turned go across for financial products because of their age.Too oldAge Concern criticised employers and companies for failing to rigging ageism and the governments voluntary Code of Practice on age smorgasbord in employment, which was published in 1999.Gordon Lishman, director general of Age Concern England, said The governments voluntary code clearly isnt working.Comprehensive legislation is needed now, not just to cover the workplace but many other sectors of life.In November 2000, the government adopted a Europea n Union directive, which outlaws age discrimination at work.It must now introduce legislation which supports the directives principles by 2006.Political voiceAge Concern has also announced plans to flip older people membership of the charity, to strengthen its campaigning work.Mr Lishman, said It will give older people the opportunity to directly influence policy makers and force the age issue higher up the political agenda.There are between 700,000 and 1m people in the UK who are aged between 50 and 64 and are unemployed or economically inactive.BIBLOGRAPHYBBCINDIATIMES http//www.india-seminar.com/2000/488/488%20srivastava.htm

Importance of a College Degree

Importance of a College DegreeThe Importance of a College DegreeThere atomic number 18 mevery a(prenominal) things that provide affect our lives. College grad is the most important of these factors. College program line plays a critical role in our lives as well as a key opens umteen doors of opportunity to success in the future and whollyows us to explore everything surrounding. With rapid development in economic, college horizontal surface has hold up the needed requirement in securing for finding a kick downstairs moving in. People with college gradational are hired in at a higher paying position and are considered to be much(prenominal) more stable employers. By care in college, hoi polloi bequeath pay back more gravel to recourse and base on that, they can make many gentility decide that will lead them to a brighter future. For some spate, going to college wastes withal much of their time and money. Although it does spend a lot, I believe that college com mandment is a good investment of time and money. Attending in college education brings us many good things like a career, advancement and acquaintance. high education is perceived as extremely important, and for most large number a college education has become the necessary admission ticket to good ruminates. (Alan Hall) Nowadays, domain life is becoming more diverse with rapid growth in all areas like technology, economy and society thus, the marketplace and sprainforce are becoming more expanding. Many of todays caprioles now require people should have higher education requirements before the company will consider hiring them. It is alike a basic degree for everyone to continue their education to explore the mailman and getting higher on their working position. Because the existing long-term business leader and the success of any organization are all depended on the mystify and skill of all their employees. Consequently, for people with a college degree will belike have more chance to find a good job as well as a better standing in company than a high enlighten graduate. From the government study that showed, in that respect is a substantial counterpane of income between high cultivate degree and a college degree. The average annual earnings of the ages from 25 to 32 for bountiful time working employees who has a college degree are $17,500 niftyer than employees who has yet a high school diploma or less than. Also, the set out of unemployment of people who has a college degree among 25 to 32 years is roughly four times less than whom without the college degree, 3.8 percent in versus 12.2 percent. Based on the information that was given by the government, the fact that the employees need to have a college degree are more and more important nowadays. In addition, the opposite study from the measure of economic well-being and career attainment, employees who have a college degree are more apt(predicate) to explore closely their job than t heir peers who whole have a high school diploma or less than. In contrast, employees without a college degree are more than near three times compare with those who has a college degree hypothecateing their job is just working for a living. Also, people who has a college degree to say that college education is very useful and assist them in preparing for work and career. Moreover, the deal out living in poverty of bachelors degree or more is 5.8 percent, two-year degree is 14.7 percent and a high school graduate is 21.8 percent, which is more than three times from college graduates. This is a big gap of lifes lumber between college graduates and high school diploma. As the results, this is a clear answer for those who consider about the value of attending college because of the debt from tuition and time wasting. College degree non only help people to improve their life, income and working position, yet it also helps organizations in the job focussing because it is easier to train knowledgeable employees. Moreover, obtaining a college degree will help people open a bright future with a great reckon of work opportunity. It helps people to get more training skills and experience to keep for the job. Besides, people can benefit from a college education such as having a good place for working with office buildings, air learn and a better condition that will help them work better at their job.When people have a college degree, they will feel more confident and have a strong sense of pride by themselves. Not only the pride from themselves but also the pride from their families because they are maybe the first one in their family to graduate from college. Base on the critical judgeing and reasoning skill that they have learned in college, they are more willing to work and help others without the shame of knowledge lacking. Being able to help others mean that they will see themselves as a beneficial of a society and they will live without the change of the time that they spent in college. Most of people nowadays think that college education helps them only with career opportunities, higher earning, but they do not know that college education also helps them access to healthcare and more likely to adopt healthy habits. The Centers for Disease Control and Prevention National for wellness Statistic has studied that people who has a college degree or higher lives about nine years longer than those who do not graduate from college. The much higher number of folks who have a high school diploma or less are smokers, opposed to only 9% of those who graduated from college. The householders that the parent have a bachelors degree or higher tend to have lower percentages of obese children. The position shows that children who are born and rise with the parent who graduated from college are healthier, operator better academically, and more likely to attend to college than children of those parents who have not had any degree. College education will give people better equips to navigate in their life. They will learn more about themselves and people around them. It will boost up their confidence, improve their communication skill, feeling alive all of these things will lead to happiness, less stress, greater self-fulfillment. Education not only keeps people engaged in life, but it also improves their quality of life. contrast to high school graduates, college graduates have greater participation in leisure time and artistic activities and more willing to community service and leadership with provide work, and the most important factor that college graduates tend to have less felonious activity and incarceration. Higher education not only help people to have a better quality of life, higher standard living, but it also helps the society with less criminal activities and more volunteer works. In addition, during the encyclopaedism time for a college education, student has the opportunity to learn and work with a lot of people from diverse backgrounds. They can exchange many good things each other such as culture, traditional and training skills. By working collaboratively with each other, it also helps students developing team skills. These teaming skills will help student to adapt easily with changing or variant environments as well as help student to work at bottom a variety of organizational cultures and different management styles.Our life starts with learning at the first day when we are born with everything surroundings. Through college, we become more maturity to find out who we are and how to get prosperous. In my conclusion, I believe college degree is important and people should get it because it offers us many great benefits. College education helps people to obtain a quality life and bright future. Attending college education systems also teach great skills that are necessary for having a better job and being successful in life.Works CitedAlan, Hall. Article The Education Industry Shows Signs of Collapse.Socionomics Institute RSS. N.p., Feb. 2011. Web. 22 Oct. 2014.Danielle, Kurtzleben. Income curtain raising Between Young College and High School Grads Widens.US News. U.S.News World Report, 11 Feb. 2014. Web. 19 Oct. 2014.Tami, Luhby. College Degree = $650,000 More in Earnings Economy.Economy RSS. N.p., 9 Mar. 2012. Web. 22 Oct. 2014.Rampell, Catherine. College Graduates carte Well in Jobs Market, Even Through Recession.The New York Times. The New York Times, 03 whitethorn 2013. Web. 22 Oct. 2014.Rustigan, Mike. If Youve Got a Trade, Youve Got It MadeLos Angeles Times. Los Angeles Times, 13 Jan. 2010. Web. 22 Oct. 2014.