Racism and Stereotypes Essay

â€Å"Sport provides a particularly public display of relations of dominance and subordination†¦. The point of sport is to display publicly the processes of challenge and struggle between two sides alleged to begin in equal terms but determined to produce and sustain relations of dominance vis-a-vis one another. Moreover, sport as a meritocracy based on skill quietly reaffirms our national common sense; individuals who work hard and possess the right stuff will always prevail. Turned on its head, this lesson becomes even more insidious: those who are at the top must have risen to the top through fair means and thus deserve their position. In contrast, those not at the top do not possess the requisite talent for such privilege. Even the runner-up is a loser†(Wulfemeyer & Rada, 2005). Sport provides an objective measure to evaluate the performance of a player and/or a team. There are countless statistics for athletes in every sport, which are evaluated on a daily basis. Statistics show how well an athlete performs and how good of an player they truly are. As an athlete, talent is all that should matter and be looked at when making a judgment of whether they are good or not, unfortunately this does not always hold true today. Stereotyping, racism, sexism and all those negative aspects of life, which were thought to have diminished over the years, are still prominent and portrayed through the media to this day. Stereotyping is the process of imposing characteristics on people based on their perceived group membership (Harrison, 2001). Based on stereotypical beliefs, we make social assumptions and make judgments on our knowledge of the perceived traits of those that fit into social categories. Viewing groups in terms of stereotypes is the brain’s way of filling in missing information about individuals we know little about by superimposing perceived traits of the group to which they belong. This is an efficient adaptation of the human mind to allow us to get out of â€Å"getting to know† everyone we encounter. Humans have neither the cognitive capacity, time, nor the desire to process all of the information available to us. We therefore use our cognitive space as efficiently as possible by categorizing and compressing information in an attempt to store more (Rose & Christina, 2006). When stereotypes are based on a wealth of accumulated social and factual knowledge and are not used to make trait assumptions about individual group members, they are generally accurate and pose few problems. It is when stereotypes are based on false, misleading, or limited information that they become problematic. While most stereotyping, even the problematic variety, can be considered harmless it holds potential for quick activation if circumstances and situations present themselves (Harrison Jr. , 2001). Sport and physical activity provide an abundant ground for the development, utilization, and prolongation of stereotypes. Racial stereotypes regarding the abilities of African Americans and Europeans are very much prominent in the realm of sport and physical activity. These stereotypes have been fueled historically by theories developed to explain the perceived performance differences between African Americans and European Americans. Many years of theorizing and hypothesizing about the natural physical abilities of African American athletes have shaped the thinking of entire populations. These seemingly scientific theories and hypotheses have formed the origin of today’s African American athlete stereotype (Armstrong, 2011). The former United Nations’ Secretary General, Kofi Annan was quoted saying â€Å"sport is a universal language that can bring people together, no matter what their origin, background, religious beliefs or economic status† (United Nations, 2005) but this was not always the case. Major barriers have been conquered over the years to bring equality to this nation and validate the former Secretary General’s above statement. One of the biggest issues that was dealt with was racism. This is a topic many like to tiptoe around and believe is nonexistent in American, the so-called melting pot of the world. Ethnic groups are equal if not more dominant in professional sports today in their participation in sport but the same cannot be said for the coverage of the events that they participate in. Research shows that there are still priming racial stereotypes made by sport announcers (Westerfield, Johnson, Hallian). â€Å"African American athletes, once excluded from participating in professional and intercollegiate sports because of institutionalized discrimination, now participate in many sports at a rate that equals or greatly exceeds their representation in the population. This is especially true in the case of intercollegiate and professional football and basketball† (Center for the Study of Sport in Society, 2001). As equality became more evident in sport, especially football and basketball, so did the media coverage of these sports. The development of technologies, such as the television or Internet, allows people all over the world to watch a growing increase in the popularity of sport. Over the years sports coverage has given a larger viewing population to the networks and the sporting entities have used that coverage to increase their revenue. Even though both equality for the minority player and the media were growing at the same time they were not growing together. It was true that blacks were getting more rights to play but they were not being broadcasted out to a larger audience by the media. For years African Americans and the African American community have been underrepresented in television coverage. When African Americans did appear they were often pigeonholed into demeaning, stereotype ridden portrayals, showing them as â€Å"bestial, brutish, buffoonish, comical, criminal, dependant of government entitlements or support, ignorant, lazy, menacing, oversexed, and prone to out-of wedlock births† (Wulfemeyer & Rada, 2005). The question of bias in sports coverage is neither new nor limited to race. To date, several research projects have uncovered bias across race, gender, and ethnicity (Wulfemeyer & Rada, 2005). The presence of bias has not been limited by venue either. Research has found bias across a wide range of sporting events ranging from professional and intercollegiate sports in the United States to international events such as the Olympics. Research has also demonstrated that bias can take many forms, from what is heard from the spoken commentary on-air to what is seen from the game coverage (Wulfemeyer & Rada, 2005). One form of racial bias that researchers have consistently uncovered is the brawn versus brains descriptions directed toward the players. It would seem as though complimenting an athlete for his or her athletic ability and physical attributes would seem positive and encouraging to a player but that is not always the case. Sometimes these seemingly positive comments have an underlying bias that is revealed by the commentary’s views of the players. This image that is made by the media that African Americans are naturally athletic and are blessed with God given talent can portray the negative creation and perception of the lazy athlete who does not have to work hard or at all at his/her craft. Many times it was also portrayed that blacks were more animalistic and farther away from being civilized than the rest of the population as well. These stereotypical expressions were put into the open in 1989 when Jimmy Snyder, an on-air personality for CBS Sports, openly told the public that the success of African American athletes was the result of selective and effective breeding on the part of the slave owners. Announcers negate not just physical and intellectual ability; intellect and character were also commented on, further negating the African American athlete. These stereotypes are not just targeted towards African Americans; they apply and are present for all races. Examples of these stereotypes are things such as blacks don’t feel pain, have no morals, are not team players have animal instincts, etc. Caucasian players can’t jump, they are hickish, and they are too loud or to opinionated and are very naive to everyday life. People of Asian decent are always good at math, cant drive well and are very strict with their children. Native Americans are lazy and sometimes alcoholics, and only live off the casinos. Hispanics are not patriotic, they all drive trucks; they are all-good at yard work and like to have a lot of children. All of these are examples of stereotypes that are out in society today and the list could continue to go on and on. These stereotypes that are portrayed by the media have prominent effect of the sports that athletes choose to participate in, in many cases it probably even effect what position they play. Since media has become such a big part of today’s society and is incorporated into our everyday lives young athletes watch sports on television and listen to what is being said about certain athletes and are likely to base what they want to do on the sport that they best fit into. For example if you are black you best fit in playing either basketball or football, if you are white you best fit in playing baseball or swimming, if you are of some sort of Hispanic decent you should play soccer or maybe even baseball. Even though racism is suppose to be a topic that was squashed long ago it still lives very much through stereotyping and is successfully denying full integration throughout the spectrum of sport. These same stereotypes that are made by the media towards the male roles of sport also apply to females as well. Even though woman around the world now participate in sport they are still not held to the same standard as males. â€Å"When female athletes transgress gender norms and boundaries, even in a â€Å"Post-Title IX† moment, they are still held to antiquated societal standards of emphasized femininity and feminine appearance by the mainstream news media† (Waches, Messner, Dworkin, Cooky, 2010). A great examples of this taking place is the Don Imus controversy in 2007 when he made stereotypical, sexist and offensive comments about the Rutgers University woman’s basketball team. Sexism is the belief or attitude that women are inferior to men, the application of masculine stereotypes to women or the hatred of one gender or sex (Griffin, 1992). â€Å"In collegiate sports, sexism can manifest itself in several ways including inequitable funding dedicated to women’s sports, media coverage of women’s sporting events, women’s college coaching salaries, views on elite female athletes and prejudice and discrimination against lesbians† (Whiteside & Hardin, 2009). Sexist views on female athletes originated in the 1920s, from medical establishment concerns about the masculinizing effects of sport participation on women. From a contemporary standpoint, football, men’s basketball and most male college sports draw more interest and revenue than women’s college sports. This reality provides the foundation for beliefs about female athletic inferiority (Griffin, 1992). Sexism appears most often in women’s basketball, in part, because the game draws the most attention among women’s college sports and because women’s basketball is more similar to a men’s sport than any other college sport. In addition, women’s basketball is not one of the socially approved feminine sports like tennis or golf. Traditionally, prissy sports like tennis, golf and gymnastics are viewed as more feminine and these sports are, coincidentally, inundated with White women. Black women have customarily participated in basketball and track, which have long been considered as masculine sports. Sport controversies can alienate and oppress Black female student-athletes who already confront isolation, media criticism, prejudice and stereotypes. Neglecting race and gender controversies in sport can impact athletic department’s brand name recognition, alumni donations, corporate sponsorships and game attendance. More important, race and gender controversies also can negatively affect minority and female student-athletes’ recruitment, student-athletes’ social development and social justice for all student-athletes. â€Å"Inquires should uncover sociocultural implications that can be used to craft recommendations in instances when race, gender, and sport adversely intersect† (Waches, Messner, Dworkin, Cooky, 2010). It is said that racism is something of the pass and in today’s society it is non-existence but according to Gill (2011) there is a modern type of racism called new racism. New racism is based on the widespread belief that racism no longer exists and civil rights legislation created an equal playing field. New racism includes feeling a way of life is threatened by others and different cultures are assumed to be incompatible. The traits that truly distinguish new racism from historical racism are: racial ambiguity, blaming Blacks for their problems, and the use of the media to facilitate racism. Racial ambiguity refers to putting forth a non-prejudiced explanation for what might be considered as a prejudiced statement. For instance, when Don Imus was asked to explain his comments about the comment he had made about the woman’s Rutger team he stated that his comments were intended to be a joke. Present in new racism, unlike historical racism, is the belief that the problems Blacks experience are not a result of social disadvantage, but rather a result of some predisposed deviance in Black culture (Gill, 2011). It is evident that racism, sexism, prejudice, stereotyping and a lack of equality are still very much present it sport today. Even with all the equality acts and laws that have been passed the playing field has yet to be leveled amongst different races, ethnic groups, and genders. Even though many sports have been intermingled there are still many sports that are dominated by one specific minority and that is not how it should be. The media needs stop putting emphasis and specific aspects of certain people’s life because in doing this they are generalizing a group. Through generalization the media is implying that a certain group of people are all the same and thus should all be expected to act the same way. This brings a very negative aspect to sport. Since sport is such a big part of American culture I believe that the media should really begin to change their ways and stay as unbiased as possible to allow the viewing population to make their own judgments and opinions on people based on their talent, not on what generalized group they have been placed in. References Armstrong L., Ketra (2011). ‘Lifting the Veils and Illuminating the Shadows’: Furthering the Explorations of Race and Ethnicity in Sport Management. Journal of Sport Management 25, 95-106. Gill Jr, L. Emmett (2011). The Rutgers Woman’s Basketball & Don Imus Controversey (RUINUS): White Privlages, New Racism, and the Implications for College Sport Management. Journal of Sport Management 25, 118-130. Griffin, Pat (1992). Changing the Game: Homophobia, Sexism, and Lesbians in Sport. QUEST 4, 251-265. Harrison Jr, Louis (2001). Understanding the Influences of Stereotypes: Implications for the African American in Sport and Physical Activity. QUEST 53, 97-114. Rose, J. Debra, Christina, W. Robert (2006). A multilevel Approach to the Study of Motor Control and Learning (2nd ed). University of North Carolina-Greensboro: Pearson. Wachs L. Faye, Messner Michael, Dworkin L. Sheri, Cooky Cheryl (2010). It’s Not About the Game: Don Imus, Race, Class, Gender and Sexuality in Contemporary Media. Sociology of Sport Journal 27, 139-159. Westerfield R. Carl, Johnson L. Darrell, Hallinan J. Christopher. Picturing Success: Photographs and Stereotyping in Men’s Collegiate Basketball. Journal of Sport Behavior 22:1. Whiteside E. Erin, Hardin Marie (2009). The Power of â€Å"Small Stories:† Narratives and Notions of Gender Equality in Conversations About Sport. Sociology of Sport Journal 26, 255-278. Wulfemeyer K. Tim, Rada A. James (2005). Color Coded: Racial Descriptors in Television Coverage of Intercollegiate Sports. Journal o Broadcasting & Electronic Media 49, 65-85.

The Ideas of Classical Theorists

The ideas of the classical theorists, particularly those of bureaucracy and scientific management, are generally considered as rather old fashioned and out of date, and of little relevance to work and organisation today. Is this really the case? Consider the above statement through a critical examination of practices which can be identified in work today. In your analysis, you should draw upon appropriate academic material, and also other sources which can help in identifying current practices.These can include your own experiences from work, those of family relatives and friends, weblogs, working life diaries, newspaper articles and other media reports. Jean-Luc Adamson 110105367 Word Count- 1879 It is a valid and reasonable claim that the ideas of the classical theorists are outdated. Many argue that ideas of Bureaucracy by Weber and Scientific Management by Taylor do not have any relevance in modern day working practices. However these ideas have evolved as the business world has developed, and it is clear that they form the basis of many new working practices that exist in modern day organisations.By looking at the reality of these modern practices, we can see that many businesses still favour a rational approach. This approach draws elements from the ideas of bureaucracy and scientific management, and shows there relevance in current working practices. The use of a Fordist approach, as well as the â€Å"McDonaldization† of companies further demonstrates the validity of the classical theories, as a basis for new approaches. It is also important to evaluate the claim that in more recent times there has been a shift to a Post-Fordist and Post-Bureaucratic society.This proposed shift demands that a different approach to management and organisation is required, yet we have to ask the question, will the removal of bureaucratic and scientific elements in business ever be beneficial? When examining organisations the reality is often very different to the rh etoric. The rhetoric takes a more theoretical approach and tries to explain what should happen. However, in order to evaluate the relevance of the classical approaches in modern day practices, we must look at what does happen. The orthodox rhetoric executes a modern approach, where employees are a major asset, and have been empowered.Management is more â€Å"hands off† and a flexible environment suits employees. While certain businesses may adopt this theory, and it is clear that in modern business, even the more rational approaches are influenced by it, the reality is different. Since the introduction of the Fordist model, production has been dominated by this rational idea. It was designed to increase efficiency in productivity by using assembly lines and the division of labour into smaller parts increased control (Pugh D S & Hickson D J, 1989), thus dehumanizing the production process.McDonaldization is a metaphor used to describe the integral part of rational processes; s imilar to those explained by Weber and Taylor, in modern day organisations. McDonaldization is described by John Ritzer as â€Å"the process by which the principles of the fast-food restaurant are coming to dominate more and more sectors of American society as well as the rest of the world. † (‘The Case of McDonalds’ from Wilson F, 2004). It uses the example of the fast food restaurant to explain the reality of how businesses operate; in particular those concerned with mass production.The dimensions of Mcdonaldization encompass the efficiency, calculability and predictability that it produces. Close rules and regulations, dictated by a central command, look to improve efficiency and have very strong connotations with Weber’s theory of bureaucracy. The emphasis on quantative aspects of the product and the interest in quantity over quality again convey the de-humanisation of the workforce, which portrays the parallels with Taylor’s theory of Scientifi c management.The predictability is inevitable and what firms adopting Mcdonaldization metaphor strive for, which again demonstrates the similarities with the â€Å"production line† aspect of Taylor’s theory. It is clear that the classical theories still influence todays companies, however McDonaldization appears to use elements of the rhetoric ideals, which makes it different from Fordism. Subsequently in Ritzer’s critique of McDonaldization he explains how bored workers, bent the rules for amusement to make the dull routines more bearable. like catching a girl eye, as she walked in† (‘The Case of McDonalds’ from Wilson F, 2004). Burawoy notes how these games are beneficial as they give some control back to the workforce and are thus† tolerated by management, because they enhance the efficiency of work† (BURAWOY. M, 1985). This supports the assumption that the ideas of the classical theorists are evident but have evolved and encomp assed ideas from more modern works, that insist on the idea of employee empowerment being beneficial to an organisation.Despite the more modern theorists approach, the orthodox rhetoric is essentially an â€Å"ideal† and tends to ignore the true reality of modern organisations. I have experienced firsthand, working in a fast food restaurant where it has also seen the benefits of â€Å"McDonaldizing†. The restaurant served fried food of a reasonable quality. The job required little skill and we had to follow rules on how we served, cleaned and produced the food and drink. The managers were there to make sure we followed these rules, which were in place to provide efficiency and consistency, regarding the food and service.The management however deployed a slight autocratic approach, as the chefs were able to decide what the special for the day would be, as well as the employees deciding when to clean and arrange certain advertisements and displays. My experience is an ex ample that supports the view that the classical theories are still relevant. Yet the more modern influences on this particular organisation; by allowing the employees some control, explain that those classical theories are somewhat outdate, and that they have evolved as business has developed.Instrumental rationality is very important when looking at working practices. â€Å"It helps a person decide how to do things, such as efficiently perform technical tasks, resolve conflicts and solve problems by regarding the factors involved in a situation as variable to be controlled. † (BusinessDictionary. com 2012) Instrumental rationality looks at how to organize and not why. It often disregards morals and ethics, and firms that adopt the use of instrumental rationality in there organisation are often focused on gaining maximum profits. Weber saw bureaucracy as a paradigm for instrumental rationality.He believed that Bureaucracy as the most efficient structure; and the fact it disre garded morals and ethics made bureaucracy an instrumentally rational practice. Many modern working practices still use instrumental rationality in modern day working practices; such as businesses which follow a fordist approach or firms that have â€Å"McDonaldized† practices. Taylor devoted a lot of time to looking at how instrumental rationality could be used in industry. () His conclusion to his research showed that â€Å"the means of improving worker efficiency and roductivity take precedence over the end of respect for human dignity. † This rationality shares connotations with the idea of a Fordist approach, and thus demonstrates how instrumental rationality and Scientific Management go hand in hand. Subsequently we can see through the use of instrumental rationality, the classical theorist’s views are still relevant today. A working diary of a Customer Service worker demonstrates how instrumental rationality functions in the workplace. It also conveys elem ents of Bureaucracy and Scientific Management in modern day working practices.The writer of the diary explains various situations, which show the appearance of these ideas in current practices. The woman explains how they receive gold stars for increased sales. This is patronizing and highlights the simple and regulated work that these people are asked to do. The more sales they achieve the more they are recognised. This shows instrumental rationality in the way the management deals with its employees. They are trying to increase sales by offering incentives to the workers; in the form of gold stars. Yet they are doing this at the expense of the employee’s motivation.This links in with the McDonaldization example that explains the â€Å"Irrationality of Rationality†. This concept with reference to the Working Diary shows that the firm is being rational by trying to improve efficiency within the organisation yet they are neglecting substantive rationality by ignoring th e needs of its employees. Furthermore the extent to which this worker is monitored, shows how little control the workers have over their jobs, and it is managements job to make sure they are following the rules precisely. â€Å"okay. How about last Sunday? You clocked in 27 seconds late. This demonstrates how apparent instrumental rationality is in this organisation, as it is purely about how to organize their employees and disregarding the human side of management. Thus the reality of working situations show that elements of Bureaucracy and Scientific Management still exists, but subsequently suggests that these theories are somewhat outdated despite being a reality in modern working practices. (Workstiff Diaries, customer service. 2004) The shift to a Post-Bureaucratic state in working practices, suggests that Bureaucracy is dead.The alleged shift to a post industrial society implies that the classical theorists are outdated and that there is no relevance to them in modern day wo rking practices. However when looking at the reality of current day organisations, it is important to ask the question; has there been a shift to a Post-Bureaucratic state and if so to what extent? When comparing the Fordist approach, to more recent approaches used in Businesses today, I feel that to some extent there has been a shift. An example looks at Fordism and the metaphor of McDonaldization.McDonaldization is essentially Fordism, but it offers a more human, and autocratic approach. However when looking at example such as the Workers Diary this shows, that in reality the shift towards a post-bureaucratic state; where trust, empowerment and shared responsibility become a reality, has not happened, and the ideas of the classical theorists still have a basis in modern day working practices. It is possible to argue that the views of the classical theorists are outdated. We can see that from these approaches there lacks a human element in the way that organisations that adopt thes e theories act.Despite continuous evolution of these theories, it is clear that they do not encompass the needs of their employees in modern day working practices. However to answer the question we have to look at whether the ideas of Bureaucracy and Scientific management still have relevance in modern working practices. The answer to this is that the classical theories form the basis of many working practices throughout business. In reality, many firms still adopt the ideas of the classical theorists, in different measures. A very common cliche is that no organisation is the same.Despite the notion that every business requires its own way of operating; and that a contingency theory approach is often the way forward, the ideas of the classical theorists cannot be ignored. Modern working practices have developed since Weber and Taylors theories, and they will continue to do so. However it is hard to see a time where the classical theorist’s views will not be relevant. Word Cou nt- 1879 Bibliography * Anonomous. (2012) Customer Service, WorkingStiff Diaries, from the US in the late 1990s . Working Stiff Diaries, [blog] 12th Sept 2004, Available at: http://www. weblab. rg/workingstiff/ [Accessed: Wednesday 12th December 2012]. * BURAWOY, M. (1985). The politics of production: factory regimes under capitalism and socialism. London, Verso. * Businessdictionary. com (n. d. )  What is instrumental rationality? definition and meaning. [online] Available at: http://www. businessdictionary. com/definition/instrumental-rationality. html [Accessed: 14 Dec 2012]. * Pugh D S & Hickson D J (1989) Writers on Organizations, 4th Edition London; Penguin, pages 94-97 * ‘The Case of McDonalds’ from Wilson F (2004)  Organizational Behaviour and Work, pps 55-59

Training and Development (8) Assignment Example | Topics and Well Written Essays - 1000 words

Training and Development (8) - Assignment Example This involves three stages: anticipatory, encounter and settling in. The anticipatory stage deals with potential employees. These candidates from previous experience, interaction with peers and managers have an idea of what the company stands for and how it operates. However, Mallor et al (2010) suggests that they should be given a realistic job preview to help them make an informed decision on whether to work for the company. This gives them the true picture of the company instead of relying on hearsay hence they have realistic expectations about the company and working conditions. This information can be obtained from brochures, magazines and company website. Once the potential candidates have been recruited, they move into the encounter stage. At this stage, the employee needs to understand his/her roles and responsibilities so as to perform according to expected standards. He/she also needs to understand the company policies and procedures especially the company culture as it det ermines the behavior of employees. The organization structure indicates the reporting relationships and interrelationships in the organization thus it is crucial for employee to understand it. Though they may have previous experience, each company has its way of doing things hence they need to be given appropriate training and orientation. They also need manager’s support in form of information about their job and the company, challenging work and high-quality relationship (Mallor et al. 2010 p. 479). The last stage is settling in. At this stage, employees are already familiar with their job tasks, company policies and procedures and have developed interpersonal relationships (Mallor et al. 2010). However, they need to deal with various work conflicts such as conflicting job demands. They also have to balance work and family life or nonwork activities so as to be productive employees. They also need to understand how their performance is to be evaluated and how they can progr ess in their career. 2. Why are content and process important in the design of employee orientation programs? What content should an effective orientation program include?   What process should be used? Orientation involves familiarizing the employees with the company history, company goals, performance requirements and interpersonal relationships (Mallor et al. 2010 p. 480). The success of employee orientation programs depends on the content and the process used. These programs are aimed at enhancing commitment and engagement from employees and consequently loyalty to the company which leads to reduced labor turnover and competitive advantage. The content helps the employees to understand their work, the company as well as policies and procedures. An effective orientation program includes company level information such as policies and procedures, employee and union relations, compensation and benefits and customer relations. It also includes department level information such as j ob duties and responsibilities, performance expectations, and introduction to peers. The content also entails the relation of individual to community such as how to find suitable housing and how to deal with family adjustments (p. 481). The process of orientation involves filling forms, scheduling and attending orientation meetings, interacting with managers and coworkers as well as familiarizing with products and services (P. 481). 3. How could you

Statistic homework Case Study Example | Topics and Well Written Essays - 750 words

Statistic homework - Case Study Example e year 2005, this report analyses the variables with the aim of understanding relationship between the indicators and financial success of the products. This section analyses the data and focus is first made to descriptive statistics using tabular and graphical approaches. Analysis of possible relationship between the indicators and total gross sales is then done. The table and the graph shows that most of products opening weekend gross sales (70 percent) earn below $ 10 million in opening weekend gross sales. Ninety five percent of the products earn below $ 40 million gross sale in the opening weekend and the higher values can be considered outliers. The descriptive statistics show that a majority of the products (73 percent) earns total gross revenue of less that $ 40 million. Ninety four percent earns below $ 120 million and higher earnings, can be considerd outliers because of the small percentage. Fifty percent of the products have less than 400 theater appearences while 29 percent have more than 2000 appearences. This suggest a sparce distribution of number of theaters, though with a majority having less number of theters (less than 400). The following table and graph of the number of times that a product stayed in the top 60 show that the highest percentage of the products (38 percent) appeared less than five times. Fifty-seven percent of the products appeared in the top sixty between five and 20 times and only five percent of the product appeared more 20 times or more. Opening gross sales, total gross sales, and number of weeks that a product takes in the top 60 have similar distribution and this suggests their possible association. Simple paired relationships are also evident between total gross sales and both opening weekend gross sales and number of weeks in the top 60, but not between total gross sales and number of theaters. Simple regression analysis confirms this and shows that opening weekend gross sales and number of times in the top 60 are

Discussion Board 5-2 Research Paper Example | Topics and Well Written Essays - 250 words

Discussion Board 5-2 - Research Paper Example It appears to have a more pronounced effect on the client as a matter of trustworthiness (R.Pearson & Herlihy, 2013 ). There are several examples of dual relationships for which these ethics would define as appropriate. According to Pearson (2013), the counselor is supposed to avoid all conflicts of interests in the work he is doing. Such relationships that are inappropriate are inclusive of intimate relationships which in most cases involve sexual relationships, physical contact, counseling a firmer lover and use of gestures that are considered intimate. The second dual relationship is that which involve personal benefit in forms of monetary gains, emotional dependency and provision of goods and services (R.Pearson & Herlihy, 2013 ). In this context it is clear that each association has its take on dual relationship. Definitive guidance on these helps a counselor to make a wise decision on whether to join these associations or not. This is dictated by how severely the counselor feels oppressed or exploited because dual relationships can be beneficial or harmful in their relationships (R.Pearson & Herlihy, 2013 ). For instance, NAADAC clearly forbids sexual relations with current or former client .ACA on the other hand discourages non professional relations with close family member’s .This way a counselor stands a better chance to make an informed decision that he or she will be comfortable with and that will make it easier for him or her to work in a challenging environment (University, 2013). University, G. C. (2013, 01 05). Ethical,Legal and Professonal issues in Counseling. Retrieved 04 01, 2013, from Digital Resourses,eBooks:

Multinational Cost of Capital Literature review

Multinational Cost of Capital - Literature review Example The paper argues that existing financial paradigms are inadequate to the phenomenon of multinational companies. Additionally, the paper discusses the influence of different features of internationalized markets on the cost of capital of multinational companies. According to Adler, in its simplest form, a multinational company is a parent company that has at least one subsidiary abroad (Adler 1973). Conversely, when debating the financial challenges of multinational companies, most scholars normally assume that there are at least two affiliates abroad and the parent company at home forming the multinational company (Etienne 1977).  From a legal perspective, most multinational subsidiaries are independent companies (Kuemmerle 2005). On the other hand, from an ownership viewpoint multinational subsidiaries link directly or through an intermediate subsidiary to the parent company (Choi 1981). Therefore, multinational companies are an amalgamation of companies led by the parent company and connected by shareholdings between the companies.  A firm’s capital structure consists of debt and equity (Buttler 2012). The cost of retained earnings mirrors an opportunity cost, which is what shareholders would have earned if they received dividends and invested themselves. Firms’ cost of issuing new stock also mirrors an opportunity cost, which are the foregone earnings that shareholders would have earned by investing elsewhere other than in the stock (Berk 2007). The cost of issuing new stock exceeds the cost of retained

Perspectives on Hroup Conflict on the Iraq Conflict Essay

Perspectives on Hroup Conflict on the Iraq Conflict - Essay Example Chandra (2001) postulates that ethnicity is both fluid and it is influenced by external factors within the community. In this context, therefore, Chandra (2001) has criticized how constructivists view the notion of ethnicity and states that ethnicity is more suitable to political approach than any other approach. Achieving peace in Iraq seems to be an impossible element. The major reasons behind this notion lie in the fact that, the number of deaths that have occurred seems to be so high since 2003, and an additional 600,000 persons seem to have lost their homes and are displaced. The intense booming that happened few years back seems to torment most of the Iraq people. From the constructivist point of view the Iraq 2003 conflict, the whole issue can be viewed as social problem constructed within the society. According to Alexander (2009) the identity of the crisis is identity together with factors that drive the identification process, and that they are socially constructed. This pa per is organized from the first part that presents the view of nationalism, along with the notion of constructivist/ instrumentalist, primordial and ethonosymbolic. A closer analysis of how these prospects view the Iraq conflict, and the implications on how to manage these conflicts have also had a great part of this case study. Nationalism is an interdisciplinary factor that needs to be considered using different perspectives. This can be achieved by obtaining historic materials that are very important and understanding how political mechanisms work within different institutions (Brown, 2000). Thus political scientists have to share their ideas on how nationalism works. The theories of nationalist have developed as academic themes since the year 1980s. Political scientists have discussed the theories of nationalism to include; ambivalent strategies that focused on social theories and on the other hand, they focused on liberal, Marxist and conservative ideologist. They also state th at the primordial’s and modernist view the nation as an element that organizes the society. Currently instrumentalist have emphasized on shifting and politically contingent nature of ethnicity (Brubaker, 2004). The primordial’s point on the other hand, points out the high degree of correspondence between cultural and genetic makers (Salters, 2003). Ethno-symbolic constructed nature of ethnicity shows that ethnicity is strongly path dependent. They look at cultural bound such as language, race as old ways of demarcating boundaries and they fail to confine these to the modern period. Primordial approach appeals to emotions, personal constraints, so as to give explanations on ethnic issues. The instrumentalist or constructivist view ethnicity as a dependent variable, therefore, ethnicity is developed based on its strategic utility in achieving political gains within a given territory. Perennials view ethnicity as predating modernity. As indicated by Hechter and Okamato (2 001) primordial’s is not present in several literary materials. The primordial’s theory argues that the demand for a nation-state does depend on the societal ethnic self-

Ethics in Leadership Coursework Example | Topics and Well Written Essays - 1250 words

Ethics in Leadership - Coursework Example Therefore, in order for leaders to avoid being perceived as toxic leaders they should act ethically both in personal life and in their relationship with others. They should engage their followers in decision making and respect their opinion. The leaders should relate well with others and avoid hurting others intentionally and unfairly (Hoyt & McGoldrick, 2012). In addition, leaders should help their followers to achieve their career objectives alongside the organizational goals. Therefore, ethical leaders should share their powers with their followers and appreciate their contributions towards the organizational goals. Credo memo refer to a â€Å"set of ethical principles† that guides the workers in an organization. It is a mission statement of the organization that defines what the organization aims to achieve (Hoyt & McGoldrick, 2012). Credo memo gives the workers an insight of what need to done at any particular time to achieve the target. It assists the leaders to inspire the organizations members and provide new opportunities by utilizing business resources efficiently. Therefore, leaders should involve the workers in decision making and recognize individual contribution in the organization in order to promote performance of the organization (Knapp, 2007). Leaders should share responsibilities with their juniors in order to promote creativity and accountability of all employees to achieve common goal. Forgiveness is a deliberate and planned process by which the offended person undergoes a change in attitude concerning the offense (Tipping, 2010). It is a virtue especially observed by most religious followers, and its benefits have also been emphasized by medical experts. Sometimes it is necessary for the offender to ask for forgiveness or admit their mistake in order to acquire forgiveness from the offended (Grace, 2012). Forgiveness promotes peace among the people, and ends

Teamwork in the multidisciplinary setting. Professional issues Essay

Teamwork in the multidisciplinary setting. Professional issues - Essay Example FORM OF EVIDENCE 9 INTRODUCTION 9 9 10 10 11 LEARNING OUTCOME ONE Multidisciplinary teams – critical analysis Psychiatrist Care Coordinator Advanced mental health practitioner 12 Personal reflection on Multidisciplinary teams 13 References 14 14 LEARNING OUTCOME 2 Critical Analysis of the use of Reflection in professional learning 15 References 15 Use of Primary Care Models to enhance care delivery 16 References LOCATION FORM OF EVIDENCE 16 18 LEARNING OUTCOME THREE Ethics 19 References 19 21 LEARNING OUTCOME FOUR Diversity 22 References 22 FINAL REFLECTION ON THE MODULE Course Outcome Number 1: The multi-disciplinary team Reflect on and critically analyse the roles, responsibilities, collaboration and inter-agency working within the multi-disciplinary team. PERSONAL AIM (Course Outcome 1) This first section is concerned with what YOU want to achieve and is based on personal aims that you identify at the start of the module. My personal aim in relation to this outcome was: To comprehend how multidisciplinary teams function and how they establish a coordinated plan of care to meet the patients multiple needs. Please complete one of the following: Where your personal aim was achieved? Please describe how achieving this aim has influenced your practice. Yes it was achieved, and I was able to understand how multidisciplinary teams work with each other and how their different skills when combined eventually achieve favorable patient outcomes. Where your personal aim was not achieved? Please state why you think this aim was not achieved. I believe that my personal aim was not achieved in terms of my assertiveness as part of the team. I did not try a more assertive approach during meetings and was not able to express my role as a member of the team. ACTUAL OUTCOME (Course Outcome 1) This second section concerns what you have achieved, in relation to this learning outcome. It should demonstrate, as comprehensively as possible, how your practice is different as a result of this module. Please list all the evidence that is included under this outcome and where it may be found. How does the evidence support your claim that you have achieved this outcome? What form does the evidence take? Location I established a critical assessment discussing the importance of multidisciplinary teams and to establish a personal reflection of an incident I witnessed while in my placement. References are also indicated in order to support the evidence I used. Critical and reflective accounts and references Page 9-13 Course Outcome Number 2: Nursing Theory Critically analyse the use of reflection in professional learning and the use of Nursing models to enhance care delivery. PERSONAL AIM (Course Outcome 2) This first section is concerned with what YOU want to achieve and is based on personal aims that you identify at the start of the module. My personal aim in relation to this outcome was: To comprehend the importance of reflection and the role of evidence in t he establishment of effective nursing practice. Please complete one of the following: Where your personal aim was achieved? Please describe how achieving this aim has influenced your practice. My personal aim was accomplished because I was able to critically assess the importance of reflection and how it can enhance my practice and learning. The assessment of the self-care model also helped me realize the importance of helping patients become

The death of rock and roll Essay Example | Topics and Well Written Essays - 500 words

The death of rock and roll - Essay Example There emerged a merger of secular and gospel themes coupled with a greater emphasis on vocalists. Soul music became a major commercial force and soon more attention was directed to it. Music is business beyond just passion. One needed to be where business is, this made more musicians levitate towards Soul. As more business was realized in the Soul genre more attention was given to it with little on rock and this commercial drive was critical in the decline of rock and roll.In my own experience, a similar commercial appropriation of a youth movement has happened in the recent past. This was in the genre of hip-hop music where there was an emergence of a subgenre, Crunk music also referred to as Krunk or pranksters. This genre originated from Memphis in the early 1990s and was to gain popularity in early 2000. It is an up-tempo and more club-oriented subgenre of hip-hop that is characterized by shouting vocals and heavy baseline. This subgenre immensely gained a commercial appropriatio n which would then attract more artists in the sector. More TV commercials, Radio adverts, and Film promos preferred the use of crunk in early 2000. This promoted this subgenre of Hip-hop attracting, even more, artists in the industry due to the heavy commerce it attracted. Clubs played crunch, public service vehicles and radio stations were all about crunk suggesting more business in this genre. For this period the genre of hip-hop faced a decline. Crunk was very popular in between 2001 and 2004.

Information Security Policy Essay Example for Free

Information Security Policy Essay 1. Executive Summary Due in Week Nine: Write 3 to 4 paragraphs giving a bottom-line summary of the specific measureable goals and objectives of the security plan, which can be implemented to define optimal security architecture for the selected business scenario. The goal of this security policy is to lay out a basic plan for a secure information system to be used by Bloom Design Group. This policy will protect the company’s systems from threats that can come from humans and from natural disasters as well. The policy will also put into consideration the privacy, reputation, intellectual property and productivity of the Bloom Design Group. The continued operation of this company depends on being able to access and use resources within the organization and being able to remote access with security. Each persons role in the company will be considered and appropriate access will be given to ensure the efficient operation of the business, while not giving access to those who are not authorized. This policy will also help in the company’s adherence to any governmental regulations. Any disruptions of service or security related issues will be dealt with immediately by means of system software that is automated to handle certain threats. More serious issues will be dealt with by the IT staff whose responsibility it is to oversee the everyday operation of the information system. 2. Introduction Due in Week One: Give an overview of the company and the security goals to be achieved. 2.1. Company overview The Bloom Design Group is a company that offers interior design services to businesses and individuals around the world. There corporate office is located in New York with a secondary office in Los Angeles for handling operations on the West coast. They have a web site that offers their customers the ability to work up their designs online and then purchase them through a electronic order processing system. Also, the designers use secure logins and passwords to access the web site. A large number of the workforce work remotely possibly using tablets or ipads connected to secure VPNs or Virtual Private Networks. 2.2. Security policy overview Bloom Design group already provides secure logins and networks to their employees so they already have some type of system setup already. However, this does not mean it is a system that works efficiently. I think the appropriate security policy to implement for this project would be system specific. 2.3. Security policy goals As applies to your selected scenario, explain how the confidentiality, integrity, and availability principles of information security will be addressed by the information security policy. 2.3.1. Confidentiality The policy I plan to implement will help to protect information by reviewing how the company stores sensitive information such as employee and client records, trade secrets, and other sensitive data. 2.3.2. Integrity Since the company will be using passwords and secure logins the system will not be accessible to the public. So the primary focus should be on the employees. Authentication and verification can be done using a data log to keep records of employees activity while on the company’s VPN. Also, the use of a firewall will help with integrity as it will prevent employees from unknowingly accessing damaging websites. 2.3.3. Availability The policy I plan to use will help with back-up and recovery by the possible use of cloud storage or a central data storage center. Although they are already using secure logins for access control the whole system needs to be reviewed. This is to make sure only authorized personnel have access to sensitive areas. 3. Disaster Recovery Plan Due in Week Three: For your selected scenario, describe the key elements of the Disaster Recovery Plan to be used in case of a disaster and the plan for testing the DRP. 3.1. Risk Assessment 3.1.1. Critical business processes The mission-critical business systems and services that must be protected by this DRP are: Payroll, Human Resource Data, POS backup media, and Web Servers and their services. 3.1.2. Internal, external, and environmental risks Examples of internal risks that may affect business are unauthorized access  by individuals who are employed by the company, and those who aren’t employed by the company but still have access to individual store’s computer systems, applications, or areas where the servers and backup media are located. Other external and environmental risks include fire, floods, power outages, hardware failure, software glitches and failure, storms, and other acts of nature. 3.2. Disaster Recovery Strategy Most cases, having an alternative site (a hot site, or cold site depending on the disaster) would be the correct way of dealing with most disasters. With Bloom design group I think having a warm site facility would be the best option. Warm sites are cheaper than hot sites but require more effort. On the other hand, they are more expensive than cold-site facilities but less labor intensive and more likely to be effective in a disaster. Also, having a backup and retention site to work from, and recover from for the main servers and web services is a good idea. 3.3. Disaster Recovery Test Plan For each testing method listed, briefly describe each method and your rationale for why it will or will not be included in your DRP test plan. 3.3.1. Walk-throughs This test plan would be a great way for the key personnel to come together and formulate a plan of action in the event of an emergency. Due to Bloom Design group being spread across a large area it might require some video conferencing and traveling on the part of some employees. 3.3.2. Simulations I think this test plan is the most effective when compared to the others. Simulating an actual emergency is a great way for people to get used to operating in a critical time under pressure. This will show you where your people have their strengths and weaknesses when trying to recover from a disaster. 3.3.3. Checklists This passive type of testing would be a good system to implement on a weekly or monthly basis depending on the needs of the company. This will help in detecting problems before they become a major issue. 3.3.4. Parallel testing Since Bloom Design group is updating their security parameters and do not have an equal type of system already implemented parallel testing would not be appropriate for this security policy. 3.3.5. Full interruption I think this is another very effective way to test the system in the event of an emergency. However, to minimize inconveniences to the customers it would have to be done during off hours. 4. Physical Security Policy Due in Week Five: Outline the Physical Security Policy. Merkow and Breithaupt (2006) state, â€Å"an often overlooked connection between physical systems (computer hardware) and logical systems (the software that runs on it) is that, in order to protect logical systems, the hardware running them must be physically secure† (p.165). Describe the policies for securing the facilities and the policies of securing the information systems. Outline the controls needed for each category as relates to your selected scenario. These controls may include the following: Physical controls (such as perimeter security controls, badges, keys and combination locks, cameras, barricades, fencing, security dogs, lighting, and separating the workplace into functional areas) Technical controls (such as smart cards, audit trails or access logs, intrusion detection, alarm systems, and biometrics) Environmental or life-safety controls (such as power, fire detection and suppression, heating, ventilation, and air conditioning) 4.1. Security of the building facilities 4.1.1. Physical entry controls At the two office locations (Los Angeles, New York) for Bloom Design Group I would use employee badges that double as an electronic key to access the building and other sensitive locations. This will work in conjunction with  an access control system that limits entrance/exit to the offices through one main entrance. There will be an employee entrance as well also to be accessed by an electronic badge. 4.1.2. Security offices, rooms and facilities For the security offices I would implement biometric scanners due to the sensitive equipment inside. Other rooms and facilities of a sensitive nature will utilize electronic badges with a photo and name of the employee. 4.1.3. Isolated delivery and loading areas For these areas I would implement electronic key card access with the use of a CCTV system recording to a DVR. With a CCTV camera located on the driver door in the loading area the person responsible for deliveries will know when a delivery is being made and can observe he outside environment before opening the door. 4.2. Security of the information systems 4.2.1. Workplace protection For this part of the security policy I would utilize pre-employment screening and mandatory vacation time. This prevents people from hiding illegal activities while performing their duties. Also, I would setup privileged entity controls so operators and system administrators have special access to computing resources. 4.2.2. Unused ports and cabling For unused ports I would use a piece of security equipment that can be plugged into the unused port and can only be removed by someone with a special key. This will help prevent unauthorized access into the network. For unused cabling I would secure it in a secure storage room which can only be accessed by authorized personnel. If the above mentioned equipment isn’t available then the port should be removed. 4.2.3. Network/server equipment Being that this is some of the most critical equipment for business operations I would use biometric locks and scanners on any room that  contains this equipment. Also these rooms will be environmentally controlled with air conditioners and dehumidifiers to allow the equipment to operate at peak efficiency. 4.2.4. Equipment maintenance Since a lot of the equipment is spread across a large region I would utilize remote communication connections to troubleshoot issues. If the maintenance need is more severe than I would have a small centrally located facility that specializes in assessing and repairing malfunctioning equipment. 4.2.5. Security of laptops/roaming equipment For laptops and roaming equipment I would install all devices with a GPS tracker and encryption software to protect against unauthorized access. The equipment itself would be stored in a secure storage room with access being tightly controlled. 5. Access Control Policy Due in Week Seven: Outline the Access Control Policy. Describe how access control methodologies work to secure information systems 5.1. Authentication Authentication credentials permit the system to verify one’s identification credential. Authenticating yourself to a system tells it the information you have established to prove that you are who you say you are. Most often, this is a simple password that you set up when you receive the privilege to access a system. You may receive an assigned password initially with the requirement that you must reset it to something more personal—something that only you can remember. However, passwords are the easiest type of authentication to beat. Free and widely available programs are available on the Internet to break the security afforded by passwords on most of the commonly used systems. With two or three factors to authenticate, an information owner can gain confidence that users who access their systems are indeed authorized to access their systems. This is accomplished by adding more controls and/or devices to the password authentication process. Biometric scanning uses unique human characteristics to identify whether the person trying to gain access is authorized to enter or not. One common  approach to managing IDs and passwords is to create a password or PIN vault. These programs use secure methods to locally store IDs and passwords that are protected by a master password that unlocks the vault when it’s needed. 5.2. Access control strategy 5.2.1. Discretionary access control The discretionary access control system will be used for Bloom Design Group because this is the favored approach in the corporate environment and due to the wide area of operations this will allow several authorized users to have access to the system at any given time. The principle of least privilege is the predominant strategy to assure confidentiality. The objective is to give people the least amount of access to a system that is needed to perform the job they’re doing. The need-to-know dictates the privilege (authority) to perform a transaction or access a resource (system, data, and so forth). An information owner is one who maintains overall responsibility for the information within an information system. For the Bloom Design Group the information owner is going to be the corporate head of IT operations. 5.2.2. Mandatory access control In a system that uses mandatory access control (MAC; also called nondiscretionary access control), the system decides who gains access to information based on the concepts of subjects, objects, and labels, as defined below. Since the Bloom Design Group is spread out over such a large area I do not think this is the best choice for this scenario. MAC is better suited for military or governmental systems. 5.2.3. Role-based access control Role-based access control (RBAC) group’s users with a common access need. You can assign a role for a group of users who perform the same job functions and require similar access to resources. This would also be appropriate for this scenario because it will allow the information owner to easily assign access to certain groups such as designers, office personnel, customer service associates and so forth. 5.3. Remote access Remote Access Dial-In User Service (RADIUS) is a client/server protocol and software that enables remote access users to communicate with a central  server to authenticate dial-in users and authorize their access to the requested system or service. RADIUS allows a company to set up a policy that can be applied at a single administered network point. Having a central service also means that it’s easier to track usage for billing and for keeping network statistics. A virtual private network (VPN) is another common means for remote users to access corporate networks. With a VPN, a user connects to the Internet via his or her ISP and initiates a connection to the protected network (often using a RADIUS server), creating a private tunnel between the end points that prevents eavesdropping or data modification. 6. Network Security Policy Due in Week Nine: Outline the Network Security Policy. As each link in the chain of network protocols can be attacked, describe the policies covering security services for network access and network security control devices. 6.1. Data network overview Due to the large geographic distances between Bloom Design Group offices a WAN is going to be utilized. WAN covers a larger geographic area than a LAN (technically, a network that covers an area larger than a single building). A WAN can span the entire nation or even the globe using satellites. 6.2. Network security services 6.2.1. Authentication Access to documents can be restricted in one of two ways: by asking for a username and password or by the hostname of the browser being used. For Bloom Design Group employees will need to enter a user ID and password to access restricted documents and sites. 6.2.2. Access control Unlike authentication, which is security-based on the user’s identity, restricting access based on something other than identity is called â€Å"access control.† For Bloom Design group access control to physical locations will be done by controlled by electronic badges. More sensitive areas such as the server rooms will utilize biometric scanners. 6.2.3. Data confidentiality This service protects data against unauthorized disclosure and has two components: content confidentiality and message flow confidentiality. For Bloom Design group all messages transmitted and received through company offices will be encrypted to prevent the unauthorized viewing of sensitive company documents. 6.2.4. Data integrity The goal is to protect data from accidental or malicious modification whether during data transfer, data storage, or from an operation performed on it, and to preserve it for its intended use. For Bloom Design Group the only people who will be authorized to make changes or modifications will be the Head of the IT department and anyone else they deem necessary. 6.2.5. Nonrepudiation A service guaranteeing that the sender of a message cannot deny having sent the message and the receiver cannot deny having received the message. I do not think this will be necessary for Bloom Design group. However, if it does then the proper modifications can always be made. 6.2.6. Logging and monitoring These services allow IS specialists to observe system activity during and after the fact by using monitoring and logging tools. These include operating system logs, server records, application log errors, warnings, and observation of network, switch and router traffic between network segments. I do not think this will be necessary for Bloom Design Group as a whole. However, it will be utilized for any programs having to do with the servers due to its sensitive business content. 6.3. Firewall system Outline the roles of the following network security control devices and how these basic security infrastructures are used to protect the company’s network against malicious activity. Provide a description of each type of firewall system and how it is used to protect the network. Include how the firewall system is or is not applicable to the company’s network configuration in your selected scenario. 6.3.1. Packet-filtering router firewall system The most common Internet firewall system consists of nothing more than a packet-filtering router deployed between the private network and the Internet. A packet-filtering router performs the typical routing functions of forwarding traffic between networks as well as using packet-filtering rules to permit or deny traffic. 6.3.2. Screened host firewall system The second firewall example employs both a packet-filtering router and a bastion host. This firewall system provides higher levels of security than the previous example because it implements both Network-Layer security (packet-filtering) and Application-Layer security (proxy services). Also, an intruder has to penetrate two separate systems before the security of the private network can be compromised. This will be the option chosen for Bloom Design Group based on needs and cost. Since Bloom Design group is not a governmental or military related company then it doesn’t require the most elaborate form of firewall protection. 6.3.3. Screened-Subnet firewall system The final firewall example employs two packet-filtering routers and a bastion host. This firewall system creates the most secure firewall system, as it supports both Network-Layer and Application-Layer security while defining a â€Å"demilitarized zone† (DMZ) network. 7. References Cite all your references by adding the pertinent information to this section by following this example. American Psychological Association. (2001). Publication manual of the American Psychological Association (5th ed.). Washington, DC: Author. Information Security: Principles and Practices, by Mark S. Merkow, CISSP, CISM and Jim Breithaupt.

The UK Construction Industry: Impact of the Recession

The UK Construction Industry: Impact of the Recession INTRODUCTION Chapter 1: Background Information According to the Department for Business Enterprise and Regulatory Reform (BERR), the UK construction industry has 250,000 firms employing 2.1 million people, and contributes 8.2 percent of the nations Gross Domestic Product (GDP). Construction companies provide employment for every skill level from labourers to architects as well as the opportunity to work for every size of firm from family run businesses, to major contractors. Its efficient operation and competitiveness is also essential to the fulfilment of the Governments commitment to improve public services and infrastructure. The delivery of new schools, hospitals, affordable housing, eco homes, all depend on the success of the construction sector to deliver. Key issues the construction industry is facing in 2009 With cut-backs, uncertainty and more red tape it looks as if 2009 will be a challenge. To say the year has been one of turmoil and change is an understatement. The reeling financial markets and the swelling sense of gloom overshadowing the general economic outlook have, naturally, a corollary in the construction industry always a lag barometer for the economic climate. And the uncertainty is far from over. If some experts are correct, we may be witnessing just the initial battering of the storm. Mervyn King, Governor of the Bank of England, has admitted it is likely that the country is heading for a â€Å"prolonged and painful recession†. In the last twelve months, the national and global situation has worsened. So in this light, below are the authors predictions for the biggest issues that UK construction will face. Skills The recession is forcing employers to look at restructuring and, ultimately, redundancies. For an industry that has enjoyed a boom for years, this is going to be a massive change of mindset employers need to be very careful they manage any redundancies properly or we will see an increase in litigation in this area. However, and perhaps perversely, the industry will continue to suffer major skills shortages, particularly in the South-east, where 2012 is a tremendous opportunity, but one which casts a skills shadow. This time, project management skills will be in short supply, due to lack of training facilities or lack of investment in education sponsoring from construction companies, rather than labour, where the situation regarding migrant workers who may be returning to their native countries will continue to remain unclear into 2009. Sectors like caring, which still needs a lot of people will attract all the labour force. Temporary workers Agency workers are soon to be given similar rights to permanent staff. It is proposed that the law will change in 2010. The new law will mean that after 12 weeks on assignment, an agency worker will be entitled to ‘equal treatment meaning the same basic working and employment conditions as a comparable permanent employee, including equal pay, notice and holiday entitlement. For an industry that employs a large volume of temporary workers, this is going to be an administrative and financial challenge that will really make itself felt in 2009. Health and safety The recent downward trend in construction-related injuries may well be over, and 2009 could see a significant increase since contractors will be looking to cut down costs on training and overlooking basic safety measures. There are suggestions that considerably different levels of adherence to health and safety rules are due to the rapid influx of migrant workers. Different people behave and act in different ways although all working for UK construction companies. There are some people who are very meticulous about their work and adhere to each and every smallest safety precautions while there are others who can consider petty measures as time wasting. If evidence of this emerges in 2009, we could expect the industry to experience a crackdown from the HSE. We expect to see increasing postponement of Local Authority maintenance work, which will hit small contractors and subcontractors the hardest. The Government is talking about major investment in new schemes. The consequence is that, even allowing for more lending, spend will have to be clawed back from somewhere. It seems inevitable that this will be from maintenance. This will be counter-productive, as maintenance work which puts money into the pockets of smaller contractors, quickly is usually the fastest way to stimulate the economy. House building For what seems like forever, the Government has been hugely vocal about its target for three million new homes by 2020 and 10 ecotowns by 2020. As Construction News reported, housing minister Margaret Beckett is already re-articulating these as â€Å"ambitions† and â€Å"hopes†, rather than firm commitments. (from www.cnplus.co.uk/story.aspx) It would seem inevitable that â€Å"ambitions† might be downplayed further and become â€Å"future aspirations† before long. This will provide more worry for subcontractors who rely on the house-building sector for some of their work. The fact that the UK is still suffering a major shortage of housing particularly affordable housing, regardless of falling house prices does mean, however, that this semantic juggling will only be a 2009 phenomenon. Top 20 Construction Companies Q2 2009 The Top 20 construction companies league table, by construction news, ranks the UKs 20 biggest construction companies by turnover and profit, as follows. The table is updated quarterly, and was last updated inJune 2009. New Infrastructure New infrastructure output in the 12 months to the first quarter of 2009 was 7 per cent higher compared with the previous 12 months and the first quarter of 2009 was 2 per cent higher compared with the previous quarter. The outlook is becoming increasingly gloomy as the worsening economy hits the capital. London escaped the worst of the construction slowdown for much of 2008. Indeed, the value of underlying work starting on site fell by just 3 per cent in 2008. But construction starts in London fell sharply in the fourth quarter of 2008 as the worsening economic conditions took hold. The value of underlying construction starts has continued to slide during the opening months of 2009, with starts during the three months to February 35 per cent down on a year earlier. With financial and property related firms reducing their workforces, many developers have put planned construction projects on hold. The value of underlying office starts, which accounted for about a quarter of the value of underlying construction starts during 2007, fell 21 per cent last year. That said, some developers are still pressing forward with major office projects. Tighter mortgage conditions and sustained pessimism in the residential housing market are now severely impacting private housing construction in London. Having held up well during the first half of 2008, sector starts in the capital are now following a similar trend to the rest of the country. The value of underlying construction starts was  £150 million in the fourth quarter 2008, down 73 per cent on a year earlier. Construction prospects in London are becoming increasingly gloomy. The value of projects in the pre-construction pipeline has fallen away sharply, with underlying planning approvals falling by 36 per cent in value during the fourth quarter of 2008. Large projects are a significant feature of construction activity in London. At first glance the preconstruction pipeline for large projects looks promising. However, given the current economic climate, there is likely to be a higher than normal proportion of planned large projects to be either delayed or abandoned. This is due to the fact that the government is planning to spread its restricted allowable budget across several other vital sectors such as education and health. Nonetheless we should breathe a sign of relief when looking at big projects such Cross rail where preliminary works have begun this year and construction starting in 2010. We should also be looking at temporary relief projects such as the Olympics which need to be completed by mid 2012. These important projects are acting like a lifeline for major construction companies, while waiting for the bad economic climate to change a bit. Overall, construction starts has significantly deteriorated in 2009, which has affe cted small contractors a lot but there is still a glimmer of hope for major firms with very few massive projects. Chapter 2: History of recession The word recession has several meanings. The simplest one could be, a recession happens when our neighbour losses his or her job, and it is a depression when we are made redundant. Economic textbooks tell that a recession is what happens when the economy shrinks for six months on the trot. GDP is used to measure the size of the economy, and when the figures go negative for two successive three months periods (or quarters) the technical definition is met (from http://business.timesonline.co.uk/tol/business/economics/article5753844.ece). When recessions are prolonged past several months, they become depressions. Unlike recession there is no widely accepted textbook definition of a depression, although some say it comes when GDP shrinks by a total of 10 per cent. It will feel distinctly like a depression if a recession goes on for more than a year. After two years, talk of recessions is sure to be replaced by ultra-glum references to depression. Credit crunch timetable Year 2007 In February HSBC gives an early sign of the crisis to come when it warns of higher than expected mortgage defaults in its US business. In August BNP Paribas suspends three funds exposed to sub-prime mortgages. European Central Bank pumps â‚ ¬95 billion into the markets. In September Northern Rock seeks emergency funding. First run on a UK bank for more than 140 years. In October UBS, of Switzerland, is the worlds first major bank to announce losses from sub-prime-related investments, totalling $3.4 billion. Year 2008 In February Northern Rock is nationalised. In March Bear Stearns, the US investment bank, seeks emergency funding and is sold to JP Morgan in a cut-price deal, sparking week of turmoil in stock markets. In April Nationwide records first annual house price fall for 12 years. In September Lehman Brothers, the US investment bank, goes bust. Bradford Bingley is nationalised. In October The Icelandic banking system collapses. Royal Bank of Scotland, Lloyds TSB and HBOS are partly nationalised. Year 2009 In January UK officially enters recession. In March Base rate cut to 0.5 per cent. The credit crunch refers to a sudden shortage of funds for lending, leading to a resulting decline in loans available. A Credit Crunch can occur for various reasons: Sudden increase in interest rates (e.g. in 1992, UK government increased rates to 15%) Direct money controls by the government (rarely used by Western Governments these days) A lack of liquidity in the capital markets The recent credit crunch was driven by a sharp rise in defaults on subprime mortgages. These mortgages were mainly in America but the resulting shortage of funds spread throughout the rest of the world. Steps to 2007 / 08 Credit Crunch US mortgage lenders sell many inappropriate mortgages to customers with low income and poor credit. It is hoped with a booming housing market, the mortgages will remain affordable. Often there was lack of controls in the sale of mortgage products. Mortgage brokers got paid for selling a mortgage, so there was an incentive to sell mortgages even if they were too expensive and high chance of default. To sell more profitable subprime mortgages, mortgage companies bundled the debt into consolidation packages and sold the debt on to other finance companies. In other words, mortgage companies borrowed to be able to lend mortgages. The lending was not financed out of saving accounts, for example. These mortgage debts were bought by financial intermediaries. The idea was to spread the risk, but, actually it just spread the problem. Usually subprime mortgages would have a high risk assessment rating. But, when the mortgage bundles got passed onto other lenders, rating agencies gave these risky subprime mortgages a low risk rating. Therefore, the financial system denied the extent of risk in their balance sheets. Many of these mortgages had an introductory period of 1-2 years of very low interest rates. At the end of this period, interest rates increased. In 2007, the US had to increase interest rates because of inflation. This made mortgage payments more expensive. Furthermore, many homeowners who had taken out mortgages 2 years earlier now faced ballooning mortgage payments as their introductory period ended. Homeowners also faced lower disposable income because of rising health care costs, rising petrol prices and rising food prices. This caused a rise in mortgage defaults, as many new homeowners could not afford mortgage payments. These defaults also signalled the end of the US housing boom. US house prices started to fall and this caused more mortgage problems. For example, people with 100% mortgages now faced negative equity. It also meant that the loans were no longer secured. If people did default, the bank couldnt guarantee to recoup the initial loan. The number of defaults caused many medium sized US mortgage companies to go bankrupt. However, the losses werent confined to mortgage lenders, many banks also lost billions of pounds in the bad mortgage debt they had bought off US mortgage companies. Banks had to write off large losses and this made them reluctant to make any further lending, especially in the now dangerous subprime sector. The result was that all around the world, it became very difficult to raise funds and borrow money. The cost of interbank lending has increased significantly. Often it was very difficult to borrow any money at all. The markets dried up. This affected many firms who had been exposed to the subprime lending. It also affected a wide variety of firms who now have difficulty borrowing money. For example, biotech companies rely on ‘high risk investment and are now struggling to get enough funds. The slow down in borrowing has contributed to a slowing economy with the possibility of recession in the US a real problem. Credit Crunch in the UK UK mortgage lenders did not lend so many bad mortgages. Although mortgage lending became more relaxed in the past few years, it still had more controls in place than the US. However, it caused very serious problems for Northern Rock. Northern rock had a high percentage of risky loans, but, also had the highest percentage of loans financed through reselling in the capital markets. When the subprime crisis hit, Northern Rock could no longer raise enough funds in the usual capital market. It was left with a shortfall and eventually had to make the humiliating step to asking the Bank of England for emergency funds. Because the Bank asked for emergency funds, this caused its customers to worry and start to withdraw savings (even though savings werent directly affected) As a result of the credit crunch, the UK has seen a change in the mortgage market. Mortgages have become more expensive. Risky mortgage products- like 125% mortgages have been removed from the market. UK Banks continue to face problems. HBOS (Owner of Halifax) struggled to finance its balance sheet. Like Northern Rock, it financed an expansion of lending by borrowing. Now money markets have frozen up, they couldnt raise enough money to maintain liquidity. Falling House prices. Now that mortgages are difficult to get, demand for houses has slumped. Therefore, house prices have fallen. Lower house prices mean many face negative equity. Therefore, mortgage defaults now cost banks even more (because they cant get back the initial loan. Bradford Bingley was nationalised because it couldnt raise enough finance. The BB had specialised in buy to let loans, which are particularly susceptible to falling house prices. How long will the Credit Crunch Last? The credit crunch could last a long time. This is because: House prices are still falling in the US, reducing the value of mortgage loans Many homeowners still face rising interest rates, when their introductory periods come to an end It can be difficult to regain confidence in the financial markets A recession in the US and global downturn could cause a further rise in bad loans The cheerfully named Profile of Depression shows the fall in UK economic growth, as measured by GDP, following some ofthe key slumps of the past century. It compares these to todays crisis. It illustrates the level of fear among experts about the financial hurricane that has disabled Britain -the ‘Noughties bust had, until very recently, actually been worse than the Great Depression of the 1930s (although it was less ‘Great in Britain than it was in the US, where GDP shrank by more than 25%). LITERATURE REVIEW Chapter 3: Effects of recession on UK construction Industry First of all, some uncomfortable facts and figures: 4,500,000 people on council house waiting lists 300,000 construction jobs in danger across the sector 90,000 predicted job losses for Small and Medium Enterprise (SME) builders 71 percent fall in workload for the Federation of Master Builders (FMB) private house builders 61 percent FMB companies expecting lower workloads in 2009 quarter one 60 percent FMB companies reporting fall in workloads for fourth consecutive quarter 52 percent FMB builders warning they will be making staff cuts over the coming months 16 percent house price fall to date 8 construction companies going into insolvency every day 7.5 percent fall in building prices in the last quarter of 2008. The construction industry has been particularly badly hit as a result of the credit crunch and the down turn in the housing market. The industry is facing its biggest challenge for many years. The indicators are that many will struggle to survive in the current market, with the Royal Institution of Chartered Surveyors (RICS) predicting the loss of over 300,000 jobs within the industry and with 52 percent of FMB members warning that they will be making staff redundant over the coming months. There is currently a crisis in the housing market with many first time buyers unable to get a mortgage let alone afford a first home. Alongside this there are more than 90,000 families living in temporary accommodation and 1.6 million families on council house waiting lists; the case for building new homes is therefore very clear. However, news from the National House Building Council shows new home starts being at their lowest level since 1924. The authors feel that current proposals to deal with this desperate situation dont go far enough in tackling the real problems affecting the UK construction industry and the wider housing sector. If the UK construction industry is to have any realistic chance of surviving this recession, these 10 key issues need to be addressed to kick start the building industry. The effects of the recession are affecting all aspects of the UK national economy. In December 2008, the construction sector shrank at its fastest pace since records began. The most considerable decline was registered in house building, while the civil engineering and commercial sub-sectors also fell at record rates during that month. As well as the decline in the housing construction sector, the housing market has also slumped. According to the Halifax, house prices fell 16.2% in 2008, the biggest annual decline since it began keeping records in 1983. This has made buying a home more affordable when set against earnings than at any time since April 2003. However, getting a mortgage is difficult for many. Data from the Bank of England showed the number of mortgage approvals fell to 27,000 in November 2008, representing at least a nine-year low (from BBC News, 2 January 2009, www.news.bbc.co.uk). Roy Ayliffe, Director of Professional Practice at the Chartered Institute of Purchasing and Supply, said: Once again, the housing sector bore the brunt of the crisis as purchasing managers reported significant reductions in new business. Amidst a climate of doom and gloom, firms were forced to axe more jobs in preparation for what is set to be another year of trouble and turmoil. (from Times Online, 5 January 2009, www.timesonline.co.uk) The UK government has plans for public spending and it is hoped that these will include major construction projects, such as roads, schools and other public buildings. This would help the construction industry and those companies that supply the construction industry to ensure continued employment for many. Businesses in the construction industry therefore need to ensure they remain competitive during this difficult economic climate. At the same time, they need to prepare the business to be able to take advantage of any future upturn in the market. Everyone knows the downturn has hit the industry badly. But research commissioned by The Construction News from Emap Glenigan shows the true extent of the contraction, how it breaks down by sector and region, and what the likely outcome for the rest of the year will be. Parts of the industry private housing, offices and industrial are badly affected by the deteriorating economic conditions and the credit crunch. The situation is brighter for those with jobs in infrastructure and the Olympics, although neither of these will be enough to sustain overall industry activity. Historically, economic growth below two per cent has been associated with falls in construction output. Last month, GDP growth for the second quarter was revised down to zero. Consensus forecasts suggest prospects for growth will slow even further in 2009. The gloomy economic conditions have led to a sharp fall in the flow of new projects in the pre-construction pipeline. Glenigan expects construction starts in the UK will fall by five per cent in value during 2009. Private housing has been most affected by the credit crunch. The reappraisal of risk by the banking sector has arguably led to more appropriate criteria for accessing credit. However, as a result the asset price bubble in the housing market has burst. This is causing a long-term contraction in demand since prospective buyers can no longer borrow as much to finance house purchases. Inevitably, those in private housing construction will have to find a way to either cut per unit costs or, more likely, adjust to a new, much lower, level of housing demand. The impact of the credit crunch on other private sector parts of construction industrial, offices, retail and hotels is different. These sectors have not suffered from the asset price bubble evident in private housing. However, investment in each of these sectors is affected by the prevailing economic conditions. As such, the immediate outlook is bleak but, with the Olympics on the horizon, construction prospects for the sector should start to improve in the latter half of 2009, when all major works will need to be started in order to be ready for 2012. The Government has had an ambitious construction-related spending programme across a number of sectors. Education and health in particular will benefit from an increase in the value of construction projects this year. But the Government is not immune to the economic slowdown. The absorption of Northern Rock has already put the Governments finances under pressure. Falling retail sales, rising unemployment and a decline in the profitability of UK firms will reduce tax receipts and add to its difficulties. Looking forward, the poor state of Government finances may jeopardise some of its proposed construction schemes. Major infrastructure projects will continue to help buoy the UK construction industry. Projects such as the widening of the M25 motorway and Crossrail are set to provide a boost to the sector. Ongoing projects such as Thameslink and the Edinburgh tram line will continue to contribute to the sectors workload for some time yet. Outside transport, the sector should also benefit from increased capital expenditure by water and electricity utilities. At present, the macroeconomic and sector-specific conditions are having a much bigger impact on the UK construction outlook than regional factors. Regional variations Differences in the composition of construction sectors within each region explain much of the variation in the regions respective prospects. For instance, regions where industrial construction is relatively significant, such as the West Midlands and Yorkshire and Humberside, will see the value of construction starts contract this year. The North-east, which has relatively less exposure to private housing than other regions, is faring better. Construction orders down 9% as property market slumps New orders in the British construction industry have continued to plunge as building firms are battered by the credit crunch. The Office for National Statistics said that orders fell by 9% in the three months to November, compared with the previous three months. They were 27% down on a year-on-year basis. The figures showed that new construction orders were particularly weak in November itself, diving 38.6% year-on-year. The private housing sector was a major casualty, with new orders down by 55% compared with a year ago. All the UK house builders have dramatically reined in their activity and cut jobs as the housing market has slumped. Howard Archer, chief UK and European economist at IHS Global Insight, said the data showed that the construction sectors recession deepened markedly in the fourth quarter of 2008. He sees little prospect of conditions improving soon. â€Å"With housing market activity and prices likely to remain depressed for some considerable time to come and the commercial property sector in dire straits, the construction sector looks set for extended weakness, despite some support from the government bringing forward some public construction activity and infrastructure spending as part of its fiscal stimulus package,† Archer said. Accountants Grant Thornton said that the construction and property sector was set to be the worst casualty of the economic downturn in 2009, plummeting by 75% in profitability and 71% in turnover from the same period last year. Clare Hartnell, head of property and construction at Grant Thornton, said: â€Å"Profitability and turnover within the construction and property sector are significantly driven by sales and market value; 2008 was a turbulent year as credit dried up and confidence plummeted, causing house prices and the number of properties sold to fall sharply. The decline in the residential market consequently has had a knock-on-effect on the construction sector, where problems have been exacerbated by huge debts as many proposed developments have been put on hold.† http://spreadsheets.google.com/pub?key=tnuPqsRPvjute_-qBacPptQoid=4output=image The year 2009 is set to be a trying year to say the least. Part of the reason for this is the current state of the economy. Lack of available credit will have an adverse effect on the ailing construction and property sector. http://spreadsheets.google.com/pub?key=tnuPqsRPvjute_-qBacPptQoid=6output=image The June Glenigan Index reveals that promised government funding has finally begun to filtering through to project starts. In particular a rise in educational, health and social housing projects starting on site have helped steady the Index, cutting the year-on-year decline to 20%. Workload trends: Infrastructure Infrastructure saw the value of underlying planning approvals (covering schemes under  £100M) fall sharply last year. Whilst the fall appears to have dampened the flow of project starts, with the value of underlying project starts during the first five months of 2009, 13% down on a year earlier, the overall prospects for the sector are bright. With the help of the new infrastructure planning commission, it is hoped that new planning consents for key projects can be accelerated. Impact of the recession on supply chain The construction industry has got the largest supply chain, compared with other industries. It ranges from mere nails to large modular constructions. It has been a major contributor since the dawn of this industry and has risen in vigour and strength over the years. Its integration with our industry has created a revolution that triggered the rise of new technologies powered by their contribution. This general introduction, gives us a fair knowledge of the value of supply chain to the construction industry. When this unexpected recession struck the markets with tremendous force, the construction industry felt the tremor, and its repercussions were felt throughout its branches. As the properties and developments went down, demand dropped, which in-turn left the developers with no option but to suspend majority of their works. The great â€Å"feeders† supply chain took its toll. Demand for their products vanished. Then the only rule of law that applies is â€Å"Survival of the fittest†, i.e. the one who could bring best deals could survive (both in price and Quality) and others would go bust. By and large the prices soured. Illustration with an example would clearly explain what the authors are trying to convey. Major components of our industry are cement, ready-mix, rebar and structural steel. Their price variation could indicate the trail recession took. http://spreadsheets.google.com/pub?key=tnuPqsRPvjute_-qBacPptQoid=2output=image All major supply resources have dropped in price dramatically one or the other time, to merely survive this recession rather than making profit. One of the major suppliers, now are for the ODA. Even they are experiencing the crunch. All the pre-allocated works, which assured definite return, are re-examined to align with the new prices. This has created friction, and even few of them moved on for adjudication. ODA has awarded contracts to around 1036 suppliers, most of which are small to medium sized businesses. This is a government initiative to prop up the middle class players, and there-by securing best deal contracts. Similar public investments could be seen in the health and education sectors, which form large part of the construction order-book and keep the pressure off. The main issue here is the growing trend of irresponsible pricing to win the scarce bids. That is, pricing below the cost. Many experts have warned of the return of industrial dispute culture of the 1980. This could ruin the objective. Recessionary impact was clearly felt when private investments dried up and forced the government twice to dip into the contingency budget. Due to this ill demand, there has been deterioration in construction product manufacturing. All heavy side manufacturers and 91% of light side manufacturers reported that sales had fallen; unprecedented results have been collected, research shows