Multiculturalism - Freedom, Recognition and Authenticity Essay

Multiculturalism - Freedom, Recognition and Authenticity - Essay Example It is often thought that this is the best framework that would accommodate different parts of the population, especially if they come from various cultural, religious or other backgrounds (Appiah 2007, p. 14). Nevertheless, I have considered some of the peculiarities of it and came to a conclusion that that it may be flawed to a certain extent. A. That is exactly what I wanted to talk about. Do not you, wise men, think that this is too unrealistic? Equal respect is truly a platform that the stability of a diverse society rests on, but it is too abstract, especially when it comes to actual application (Abbey 2000, p. 118). B. Our friend is absolutely right here, equality is something that can hardly be achieved in a society where citizens are different in numerous aspects, starting from the level of income and up to the very place where they live. It is virtually impossible to create equal conditions for everyone. A. C, my friend, I can see where you are going with this, but I would like to point out that the politics of equal respect, the one that you like so much, is actually inhospitable to difference (Ferrelly 2004, p. 88). B. I fully agree. C, you see, diversity is a factor that is dynamic, it is not static; in other words, one can hardly make a set of coordinates that would include all the differences and find harmony between them. In addition to that, acknowledgement of difference requires a constant change with in the social framework. A. Exactly! Do not you see that this is absolutely the opposite of what the system was designed for. The universal application that you have mentioned relies on one size fits all ideology. In other words, while claiming to respect the difference, this politics actually eliminates it (Fraser & Honneth, 2003, p. 30). B. Indeed, if two groups of people believe in different, sometimes opposite values, do you think that there can be a single policy that would unite them. Nevertheless, if the principle of

Comparison of Democratic and Republican Ideals Research Paper

Comparison of Democratic and Republican Ideals - Research Paper Example This essay outlines that in 1792, over 200 years ago, Thomas Jefferson founded the Democratic Party. According to the Democratic Party principles, the party is committed to helping the alienated, the disfranchised and the poor through provision of a government framework that provides them with the opportunity to earn a piece of the American Dream. In this regard, the Democrats pledge to provide a stable government that is relevant to all aspects of human need. The fort of Democratic Party, thus, rests on the strength and power of socially diverse citizens.This discussion stresses that the Republican Party was founded in the 1850s. Its first president was Abraham Lincoln. He advocated noninterference of the government in whatever people did. They held on to the White House for about 60 of the next 100 years and have since survived as one of today’s two major parties. Modern day ideologies of the Republican can be demonstrated by the presidency of Ronald Reagan. When he assumed power in the early 1980s, Americans were in an economic recession with a series of policy failures in 1970s. He initiated large tax decreases and tightened the foreign policies in order to lead to a strong and consistent economic growth. This ultimately saw the fall of the Soviet Union.  The Democrats follow the liberal philosophy which enhances the government’s role in regulation of the economy. Its another principle is the redistribution of income and wealth to the benefit of the needy.

Business Etiquette - Cubical Space Research Paper

Business Etiquette - Cubical Space - Research Paper Example Knowing how to communicate with decorum will help keep the business as well as grow some leads for the next business. (Columbia University Centre for Career education, 2012). Ensuring continued premises maintenance: In this kind of business, professional presentation go a long way in expressing how organized a company is and thus winning the customers trust. It will be essential to consider doing office maintenance as a way of setting professional standards for the services we provide. ( Columbia University Centre for Career education, 2012) Ensuring that tenants understand the tenure contract: Most of the times, tenants take less interest on terms of lease. Many of them do not understand the meaning of terms like triple net lease, load factor, full service e.t.c. It is important for the proprietor to ensure that the tenant understand what they are signing to avoid any conflict when bleach of tenure happens. (Wolfe, 2012). Keeping to the tenure contact: To develop trust and reliability, it is important for the company to ensure that contracts and agreements are kept strict (Wolfe, 2012). This will go a long way in buying customer’s trust as well as open leads for future business. As a cubicle space leasing company, it is important to consider professional practices like phone and communication etiquette, premise maintenance, leading tenants to understand the tenure contract and commitment to keep to the tenure contract. All the etiquette concerns should be geared towards establishing business leads and maximum trust in the company’s professionalism. Columbia University Centre for Career education. (2012). Skills- Business Etiquette. The Trustees of Colimbia University in the City of New York. Retrieved from: http://www.careereducation.columbia.edu/resources/tipsheets/skills-business-etiquette Wolfe, L. (2012). 3 questions to Ask Before Negotiating or Signing a

Effect of Csr Activities on Sales Essay Example for Free

Effect of Csr Activities on Sales Essay Reasons for this can be multinational corporations’ increasing influence on world economy as well as scandals revealing horrible working conditions in different industries. In spite of the fact that the demand for CSR is growing, there has always been critics. The most influential critic is Noble Prize winner Milton Friedman, who claims CSR to be a waste of stockholders’ money. However, several articles claim, opposite Friedman, that CSR rather increases a company’s financial performance in the long run. These claims have made us curious about in what way CSR is related to a company’s performance. Moreover, it has led to us wanting to find out how CSR can influence customer perceptions on a product or service offering. Conclusions –All the initiatives gave a positive influence on the respondents’ perceptions, but the ones resulting in the most positive changes of the perceptions and willingness to buy were social responsible business practises, cause-related marketing and corporate philanthropy, which are initiatives where the company are doing the largest effort instead of just encouraging others to make an effort. The respondents answered that they trust the companies’ information about CSR to some extent, but also think a third party should scrutinise the companies’ activities and inform. The most favourable channel for CSR information was from environmental organisations, government organisations and the third party web media. Therefore it seems like the respondents value that the companies provide information, but are not too forward and pushing the information on them by for example advertisements. Keywords : CSR – Corporate Social Responsibility, Cause promotion, Cause-related marketing, Corporate social marketing, Corporate philanthropy, Community volunteering, Social responsible business practices. Introduction: CSR is today a frequently used concept, as companies to a larger extent are held accountable for what is happening in the society. The company should also inform the stakeholders about their CSR activities in an appropriate way, in order to capitalise from all possible benefits. In order to make a trustworthy impression and gain the most benefits, the choice of CSR activity and way of communication is crucial for the company, and therefore the perceptions of the consumers are very important to know more about and understand. In the last decade tendencies towards a more social aware community have been strong. In itself these trends are nothing that is particularly new. People have always preached for problems like public health, wildlife protection, prevention of child labor etc. What is different now is that companies to a larger extent are held accountable for what is happening in our society. Companies that engage in CSR activities are likely to have different motives for doing so. Many researches claim that corporate social responsibility originally consists of activities that a company performs out of commitment and duty. However, there are also commercial motives for CSR activities. For example CSR activities may result in advantages when it comes to receiving funding, recruiting new employees, cost reductions etc. To capitalise from all possible advantages it is crucial for the company to communicate their CSR work in an appropriate way. Theoretical Framework: Types of CSR Activities: a) Cause promotion Cause promotion is often done in the way that the company provide funds, contribute financially or with any other resource, with the objective to increase awareness, support fundraising or participation, or to recruit volunteers for a specific cause. In this initiative persuasive communications are important, to create concern and to persuade people to contribute or participate to support the cause. In successful campaigns use of motivating messages and the choice of effective media channels are crucial. They also make use of publicity, printed materials, special events, web sites, advertising, featuring the logo and key message of the company and those who represent the cause. Further methods are employee involvement, messages on product labelling and to provide store space for promotions. Many of the potential benefits are marketing related, like strengthened brand positioning and preference, increased traffic and consumer loyalty.

Examining Family Business Corporate Governance

Examining Family Business Corporate Governance This dissertation sets out a study of the family businesss corporate governance, addressing the relationship between the owners and the management. Family businesses constitute a wide spectrum of enterprises, from small family owned and managed companies to a large internationally operating family controlled corporations. There are several definitions illustrates the family owned businesses, however the majority agree that Nebauer Lank definition illustrate the family business in a simple way and puts it as A firm can be regarded as a family business if a given family holds the voting control of the firm (Nebauer Lank, 1998). This dissertation argues that, given the duality of the economic and non-economic goals family firms pursue and the complexity of the stakeholders structure, family firms need governance structure that matches the complexity of their constitutes stakeholders. According to that a better research and empirical understanding as how family firms are governed is needed. In this study the focus will be on assessing the level of understanding of the corporate governance concept overall and the codes provided by the Capital Market Authority (CMA), the Capital Market Authority in Oman focusing on strengthen the family owned business by incentives them to go public. The CMA is just recently in the process to create a corporate governance to help the Family business to be prepared to do so. In this study, the focus will be to create an understating and help to create a better code to help the family business sustain in the future. On the other hand there will be an evaluation of the agency theo ry and how the family owners acceptance of this model. Furthermore a research by McKinsey quarterly shows that 95 per cent fails to succeed the generation due to the lacking of succession planning and roles defining, therefore the dissertation will be evaluating the practice and preparation if any on how the existing owner prepare companys succession planning rules and codes to handover their responsibilities to their successors. In this study the focus will be on the family businesses in Sultanate of Oman, a country in the Arabian Gulf with a fledgling capital market. Oman has made significant efforts to improves the level of corporate governance, particularly in the listed companies and now the capital market would like to expand its corporate governance codes to the family owned businesses to strengthen the chances of the sustainability of its growth. Aims And Objective This dissertation will focus on the unique corporate governance challenges that any family business faces and propose structures and practices that can mitigate these challenges and ensure the viability of the business. The detailed objectives that guide the dissertation process are: To review and analyze relevant theoretical, and other, streams of literature that focus on corporate governance and family business Analyzing the practice of the existing code of corporate governance that applied by the CMA and if it fit to be implemented in the family business companies. Asses the ownership structure and polices in the companies and testing the theory of the ownership and control separation. Asses the long term planning by the company owners and how the successor is been appointed. To assess the significance, reliability, and validity of the results; to discuss the theoretical, empirical, and practical implications of the findings; to assess the limitations The impact of corporate governance in family businesses performance. Scope of the dissertation The present study addresses the governance of family firms, focusing on the nature of various governance mechanisms and how they affect firm performance. Family businesses provide a fruitful research context to study corporate governance due to lack of governance research in the area and the distinctive characteristics of family firms. The family business context, especially, enables the study of how aspects of formal and social control vary according to characteristics of ownership structure. Research Approaches and method The methods to gather the required data will be a qualitative, where the participations will be selected based on their history and age of the company in practice. The research will be analyzing their policies and corporate governance practice. Interviews will be placed with the owners and senior managers of the companies to get all the data required for the findings and results. Structure of the dissertation Chapter 1: Introduction This chapter included the background of the study, the aim, purpose of the study, research questions and limitation of the study and it will present the structural framework of the study. Chapter 2: Literature Review This chapter will review the historical perspective, theories and related studies of corporate governance, family business and related theories to corporate governance. This chapter will include the secondary data which will be used in discussing the findings. Chapter 3: Methodology Chapter describes the methodology and procedures that were used to carry out this study. Furthermore, this chapter will review the population and participants of the study, instruments and data collection procedures. Chapter 4: Results and Findings This chapter will present the data and findings related to the research questions Chapter 5: Data Analysis and Discussion This chapter presents the data analysis and the discussion of the finding. Chapter 6: Conclusion In this chapter, the researcher will present a summary of the study and the findings, conclusion and recommendation. The structural framework of the dissertation is illustrated in Figure 1. Figure Literature Review Introduction A growing number of studies have been done on the family business ownership and management separation or combination in the past few years and what is the linkage between the performance and these two elements. In this chapter we will be presenting the theories and the studies that are related to it and selecting a frame work that will be the base of the evolution of the practice we examine in the family businesses. Family Owned Business Family enterprises or family owned businesses represent the oldest form of businesses in the world. The family owned businesses constitutes more than 70 percent of all business in most of the third world countries and in some developed countries (IFC, 2009). In the IFC research Family Businesses Corporate Handbook shows that family owned businesses are the higher contributor in any country growth in terms of economic development and employment. In Spain, for example, about 75 percent of the businesses are family-owned and contribute to 65 percent of the countrys GNP on average. Correspondingly, family businesses contribute to about 60 percent of the cumulative GNP in Latin America (IFC, 2009). in addition to, accordingly to recent researches that 95% percent of employment in the Middle East and especially in the Arabian Gulf Peninsula is in the family owned businesses. There are several definitions that explains the family business corporations, the IFC define it as a company where the voting majority is in the hands of the controlling family; including the founder(s) who intend to pass the business on to their descendants, in another words is A business actively owned and/or managed by more than one member of the same family. There are two systems that control the family businesses; which are the family system, and the management system, the two system overlap due to the dual roles that any family member take, like a family member may be a manger or an employee in the business and here where the conflict arise. The family system is based on emotional, love and care. The family system is based on the relationship in the family and they take most of these values to the business. Where in the business system is the professional values are the edge of the decision. (Managment Resources, 2010) To define a family business need to understand the environment from one to another, here are list of family business definitions that made by researcher past the year that cover the family business from different view but reserving the concept. Table Family business Definitions A company is considered a family business when it has been closely identified with at least two generations of a family and when this link has had a mutual influence on company policy and on the interests and objectives of the family. (Donnelley, [1964] 1988: 428). Controlling ownership rested in the hands of an individual or of the members of a single family. (Barnes Hershon, 1976: 106). Organizations where one or more extended family members influence the direction of the business through the exercise on kinship ties, management roles, or ownership rights. (Tagiuri Davis, [1982] 1996: 199). It is the interaction between the two sets of organization, family and business, that establishes the basic character of the family business and defines its uniqueness. (Davis, 1983: 47). What is usually meant by .family business.is either the occurrence or the anticipation that a younger family member has or will assume control of the business from an elder. (Churchill Hatten, 1987: 52). We define a family business as one that will be passed on for the family.s next generation to manage and control. (Ward, 1987: 252). A business in which the members of a family have legal control over ownership. (Lansberg et al., 1988:2). A family business is defined here as an organization whose major operating decisions and plans for leadership succession are influenced by family members serving in management or on the board. (Handler,1989b: 262). Firms in which one family holds the majority of the shares and controls management. (Donckels FrÃÆ' ¶hlich,1991: 149). A business where a single family owns the majority of stock and has total control. Family members also form part of the management and make the most important decisions concerning the business. (Gallo Sveen, 1991: 181). A business firm may be considered a family business to the extent that its ownership and management are concentrated within a family unit, and to the extent its members strive to achieve, maintain, and/or increase intraorganizational family-based relatedness. (Litz, 1995: 78). A business governed and/or managed on a sustainable, potentially cross-generational, basis to shape and perhaps pursue the formal or implicit vision of the business held by members of the same family or a small number of families. (Sharma et al., 1997: 2). A family enterprise is a proprietorship, partnership, corporation or any form of business association where the voting control is in the hands of a given family. (Neubauer Lank, 1998: 8). Family businesses share some common characteristics, largely due to the interacting and overlapping domains of family, ownership and management (Tagiuri Davis, 1982). Family firms have a complex stakeholder structure that involves family members, top management, and a board of directors. Family members, who are often significant owners, usually play multiple roles in managing and governing the firm (Tagiuri Davis, 1982). This involvement promotes loyalty and also commitment to long-term value creation (Dyer Handler, 1994) and reduces problems that arise from separation of ownership and control, as experienced in large, public corporations (Jensen, 1989). Also, family businesses may enjoy a competitive advantage due, for example, to remaining entrepreneurial in character and having a strong sense of responsibility to society (Neubauer Lank, 1998), fast verbal and nonverbal communication, aided by a shared identity and common language of families (Gersick, Davis, McCollom Hampton Landsberg, 1997), family members. Business expertise gained during early childhood onward (Kets De Vries, 1996), and a strong organizational culture contributing to external adaptation and internal integration (Schein, 1983). However, the familys involvement in governing the firm may induce a focus on business and non-business goals, possibly leading to inefficiency (Schulze, Lubatkin, Dino Buchholtz, 2001). If the owner family is not regularly informed about the companys affairs, differing visions of the companys future may develop between management and the family. The resulting feuds between family factions may distract managements attention from value-creating activities and so reduce their commitment to strategic decisions. Owner-managers also may act opportunistically by satisfying their own needs at the expense of the companys performance and long-term survival. Entrenched owner-managers may not share their powers with others, especially not with the companys board. Furthermore the common characters of all family businesses are illustrated in the diagram below. Figure The individual represent the family members who are directly involved in daily bases with the operation, the family symbolizes the whole family where in some family businesses called the family counsel and the management dimension represents the family managers and non-family managers. McKinsey quarterly stated in the report keeping the family in business that only 5 percent will continue to create shareholders value after the third generation. Moreover; the IFC also mentioned in the family business hand book, while the third generation takes over; 95 percent of all family businesses will not survive the ownership around. These consequences might be a result to the lack of commitment and proper business education of handling the business demands. In addition, the survival of family firms is often challenged by dictatorial rule, resistance to change, lack of professionalism in management capabilities, confusion in family and business roles, rivalry and enlarged human emotions among family members, conflicts between interests of the family and the business, and a low rate of investment in business development (Donnelley, 1964; Gersick et al., 1997; Kets De Vries, 1993). All the definitions are focusing on the shareholders and their power in voting and management and these two points are actually the core strength and weaknesses of any family business. However there are other dimensions that a family business can be measured of its strength and weaknesses like: Culture Ownership and governance Succession planning Family involvement This dissertation will be reflected somehow in the culture dimension due to the strength of the factor here in the Arabian Gulf Countries and Oman. Different researcher came up with different definitions of the family business; however, the definitions imply six themes for clarifying the boundaries of the domain of family business: (1) ownership, (2) management, (3) generational transfer, (4) the familys intention to continue as a family business, (5) family goals, and (6) interaction between the family and business. These themes are similar to those found in the extant literature. For example, Handler (1989a) categorized family business definitions under four headings: ownership and management, interdependent subsystems, generational transfer, and multiple conditions. The extant literature on family business research has largely neglected the definition of the family itself. By modifying Winter.s, Fitzgerald, Heck, Haynes Danes (1998) definition of the family, the present study defines it as a kinship group of people related by blood or marriage or comparable relationship. This definition allows a multigenerational view of an extended family. Family Business in Oman According to the family firm institute (FFI) the around the 75% of Omans private companies are family owned, with their firms creating 70% of the country employment. There are 12 top families who are controlling around 75% of the contribution over all in Oman. The family owned business also control 90% of commercial activity according to Tharawat (Fortunes) Magazine. Oman is a part of the GCC Region where in the region is estimated that family businesses worth more than 1 trillion dollar, that is ready to be handled to the next generation. All family owned business share same characteristics as mentioned above, even the strengths and the weakness are similar to some extant in all family businesses. However, the family business can be categorized to two categories: Listed family businesses Non-listed family business The listed family businesses are set to fulfill the listed companies corporate governance code as per the CMA regulation, but the non-listed are not treated that way; whats so ever the size or the operations are. The CMA in Oman are concentrating nowadays to establish an attractive market and safe to all sizes of family businesses, the CMA is concentrating on converting the family closed family business to go public by Initial Public Offering(IPO) offering them a less strict rules and requirements to commence the IPO as the Head corporate governance Center declared. Furthermore there are different points that might affect the operation of any family businesses such as: family relations affect the assignment of the management family indirectly runs the company major family influence/dominance of the management (in terms of  strategic decisions) significant proportion of the enterprises senior management most important decision made by the family family control of the management of the enterprise at least 2 generations having had control over the enterprise These points might be strengthen the family business in the initial stages of the operations but there must be some kind of governance or policies on whom can make a decisions and how is not. Corporate Governance Corporate governance is a topic that has been a subject of significant debate since 2001 Enrons and other US companies crashed. Some analyst say lack of corporate governance was the main reason behind the crash (International Swaps and Derivatives Association, 2002). The international Swaps and Derivatives Association highlight that the failure was due to interests that extended certain managers at the expense of the shareholders. While the United States capital market where busy analyzing the reasons behind the crash of Enron and World Com, Sultanate of Oman has also experienced its share of corporate trouble affecting not only large companies such as Rice Mills SAOG and Oman National Investment Company Holding SOAG but also dozens of smaller companies, which have had to turn to the government for assistance (Dry, 2003). The year 2002 was the birth of the new corporate governance standards from the Capital Market Authority (CMA), but it was only covering the list companies in the Mu scat Security Market only. Since then the CMA focused on upgrading this standards and code and refine it to be in a worldwide acceptable standards and to include the best practice for the companies. The standards have been modernized since 2002 on the listed companies and the closed shared ones but nothing was mentioned on the family business side. In 2009 the CMA established the corporate governance center to help the companies implement the codes of corporate governance and to regulate the practice and monitor it, in addition to create a new standards to fit the family businesses practice. Till today the CMA and the Center did not establish a full concept on how they can produce a set of codes to be acceptable to the share holders of these businesses due to the lack of information on the family owned businesses in Oman. Theoretical framework related to Corporate Governance. The corporate governance model did not came from one framework or a certain theories, but I was built up on different practices and theories which results of different frameworks that today any economic system can customized to suit the needs to regulate the market. There are certain theories that been always associated with corporate governance practice which is set out the relation between the principle (shareholder) and the agent (management): The agency theory Stewardship Theory Stakeholder theory The agency Theory Agency theory having its roots in economic theory was exposited by Alchian and Demsetz (1972) and further developed by Jensen and Meckling (1976). Agency theory is defined as the relationship between the principals, such as shareholders and agents such as the company executives and managers. Agency theory argues that in the modern corporation, in which share ownership is widely held, managerial actions depart from those required to maximize shareholder returns (Berle and Means 1932; Pratt and Zeckhauser 1985). Since Jensen and Meckling (1976) proposed a theory of the firm (Agency Theory) based upon conflicts of interest between various contracting parties à ¢Ã¢â€š ¬Ã¢â‚¬Å" shareholders, company managers and debt holders à ¢Ã¢â€š ¬Ã¢â‚¬Å" a vast literature has been developed in explaining both aspects of these conflicts. Jensen and Meckling (1976) further specified the existence of agency costs which arise owing to the conflicts either between managers and shareholders (agency costs of equity) or between shareholders and debtholders (agency costs of debt). Financial markets capture these agency costs as a value loss to shareholders. The agency theory argues that an agency relationship exists when shareholders (principals) hire managers (agents) as the decision makers of the corporations. The agency problems arise because managers will not solely act to maximize the shareholders wealth; they may protect their own interests or seek the goal of maximizing companies growth instead of earnings while making decisions. Jensen and Meckling (1976) suggested that the inefficiency may be reduced as managerial incentives to take value maximizing decisions increased. Agency costs are arising from divergence of interests between shareholders and company managers. Agency costs are defined by Jensen and Meckling as the sum of monitoring costs, bonding costs and residual loss. (1) Monitoring Costs Monitoring costs are expenditures paid by the principal to measure, observe and control an agents behavior. The economic impact of asymmetric information also results in various corporate agency problems. Firm managers (insiders) know more about their firm than shareholders and debt financiers (outsiders). When outsiders are unable to judge over the firms performance, they tend to qualify a firms performance as moderate. A result of this asymmetric information is that shares of a firm with a great performance are undervalued and vice versa. More specifically, information asymmetries between shareholders or bondholders and corporate executive management creates the necessity of monitoring (costs) and complications for the structuring of financial contracts. They may include the costs of preparing reliable accounting information and audits, writing executive compensation contracts and even ultimately the cost of replacing managers. Denis, Denis, and Sarin (1997) contended that effective monitoring is restricted to certain groups or individuals. Such monitors must have the necessary expertise and incentives to fully monitor manager. In addition, such monitors must provide a credible threat to managements control of the company. (2) Bonding Costs To minimize monitoring costs, managers tend to set up the principles or structures and try to act in shareholders best interests. The costs of establishing and adhering to these systems are known as bonding costs. They may include the costs of additional information disclosures to shareholders, but management will obviously also have the benefit of preparing these themselves. Agents will stop incurring bonding costs when the marginal reduction in monitoring equals the marginal increase in bonding costs. As suggested by the agency theory, the optimal bonding contract should aim to entice managers into making all decisions that are in the shareholders best interests. However, since managers cannot be made to do everything that shareholders would wish, bonding provides a means of making managers do some of the things that shareholders would like by writing a less than perfect contract. (3) Residual Loss Despite monitoring and bonding, the interest of managers and shareholders are still unlikely to be fully aligned. Therefore, there are still agency losses arising from conflicts of interest. These are known as residual loss, which represent a trade-off between overly constraining management and enforcing contractual mechanisms designed to reduce agency problems. There are some other types of agency costs as following: (4) Agency Costs of Debt There are three groups of participants in a firm, suppliers of equity, debt suppliers and firm managers. It is logical that they would try to achieve their goals with different measures. Suppliers of equity, or shareholders, are interested in high dividend ratios and high share prices. Debt suppliers, on the other hand, are interested in interest and debt repayments, whereas firm managers would be focused on their financial remuneration. These conflicts of interest give rise to opportunity costs (whereby best strategies are often not adopted) and real costs (e.g., inspection costs). These costs decrease the market value of a firm. Kim and Sorensen (1986) investigated the presence of agency costs and their relation to debt policies of corporations. It is found that firms with higher insiders (managers) ownership have greater debt ratios than firms with lower insider ownership, which may be explained by the agency costs of debt or the agency costs of equity. (5) Agency Costs of Free Cash Flow The free cash flow theory presumes that there are enormous conflicts of interest between shareholders and stakeholders. This implies that managers decisions do not always maximize the value of a firm (Jensen, 1986). Jensen (1986) also emphasized the continuous agency conflicts between top managers and shareholders. These conflicts are especially severe in firms with large free cash flows. A free cash flow is the balance of money a company is left with when all projects are financed. If top managers hold more cash than profitable investment opportunities, they may overspend money on organization inefficiencies or invest it in projects with net present value (NPV) less than zero. The logic has it that higher debt levels reduces free cash flows and consequently increases the value of the company. Examining Family Business Corporate Governance Examining Family Business Corporate Governance This dissertation sets out a study of the family businesss corporate governance, addressing the relationship between the owners and the management. Family businesses constitute a wide spectrum of enterprises, from small family owned and managed companies to a large internationally operating family controlled corporations. There are several definitions illustrates the family owned businesses, however the majority agree that Nebauer Lank definition illustrate the family business in a simple way and puts it as A firm can be regarded as a family business if a given family holds the voting control of the firm (Nebauer Lank, 1998). This dissertation argues that, given the duality of the economic and non-economic goals family firms pursue and the complexity of the stakeholders structure, family firms need governance structure that matches the complexity of their constitutes stakeholders. According to that a better research and empirical understanding as how family firms are governed is needed. In this study the focus will be on assessing the level of understanding of the corporate governance concept overall and the codes provided by the Capital Market Authority (CMA), the Capital Market Authority in Oman focusing on strengthen the family owned business by incentives them to go public. The CMA is just recently in the process to create a corporate governance to help the Family business to be prepared to do so. In this study, the focus will be to create an understating and help to create a better code to help the family business sustain in the future. On the other hand there will be an evaluation of the agency theo ry and how the family owners acceptance of this model. Furthermore a research by McKinsey quarterly shows that 95 per cent fails to succeed the generation due to the lacking of succession planning and roles defining, therefore the dissertation will be evaluating the practice and preparation if any on how the existing owner prepare companys succession planning rules and codes to handover their responsibilities to their successors. In this study the focus will be on the family businesses in Sultanate of Oman, a country in the Arabian Gulf with a fledgling capital market. Oman has made significant efforts to improves the level of corporate governance, particularly in the listed companies and now the capital market would like to expand its corporate governance codes to the family owned businesses to strengthen the chances of the sustainability of its growth. Aims And Objective This dissertation will focus on the unique corporate governance challenges that any family business faces and propose structures and practices that can mitigate these challenges and ensure the viability of the business. The detailed objectives that guide the dissertation process are: To review and analyze relevant theoretical, and other, streams of literature that focus on corporate governance and family business Analyzing the practice of the existing code of corporate governance that applied by the CMA and if it fit to be implemented in the family business companies. Asses the ownership structure and polices in the companies and testing the theory of the ownership and control separation. Asses the long term planning by the company owners and how the successor is been appointed. To assess the significance, reliability, and validity of the results; to discuss the theoretical, empirical, and practical implications of the findings; to assess the limitations The impact of corporate governance in family businesses performance. Scope of the dissertation The present study addresses the governance of family firms, focusing on the nature of various governance mechanisms and how they affect firm performance. Family businesses provide a fruitful research context to study corporate governance due to lack of governance research in the area and the distinctive characteristics of family firms. The family business context, especially, enables the study of how aspects of formal and social control vary according to characteristics of ownership structure. Research Approaches and method The methods to gather the required data will be a qualitative, where the participations will be selected based on their history and age of the company in practice. The research will be analyzing their policies and corporate governance practice. Interviews will be placed with the owners and senior managers of the companies to get all the data required for the findings and results. Structure of the dissertation Chapter 1: Introduction This chapter included the background of the study, the aim, purpose of the study, research questions and limitation of the study and it will present the structural framework of the study. Chapter 2: Literature Review This chapter will review the historical perspective, theories and related studies of corporate governance, family business and related theories to corporate governance. This chapter will include the secondary data which will be used in discussing the findings. Chapter 3: Methodology Chapter describes the methodology and procedures that were used to carry out this study. Furthermore, this chapter will review the population and participants of the study, instruments and data collection procedures. Chapter 4: Results and Findings This chapter will present the data and findings related to the research questions Chapter 5: Data Analysis and Discussion This chapter presents the data analysis and the discussion of the finding. Chapter 6: Conclusion In this chapter, the researcher will present a summary of the study and the findings, conclusion and recommendation. The structural framework of the dissertation is illustrated in Figure 1. Figure Literature Review Introduction A growing number of studies have been done on the family business ownership and management separation or combination in the past few years and what is the linkage between the performance and these two elements. In this chapter we will be presenting the theories and the studies that are related to it and selecting a frame work that will be the base of the evolution of the practice we examine in the family businesses. Family Owned Business Family enterprises or family owned businesses represent the oldest form of businesses in the world. The family owned businesses constitutes more than 70 percent of all business in most of the third world countries and in some developed countries (IFC, 2009). In the IFC research Family Businesses Corporate Handbook shows that family owned businesses are the higher contributor in any country growth in terms of economic development and employment. In Spain, for example, about 75 percent of the businesses are family-owned and contribute to 65 percent of the countrys GNP on average. Correspondingly, family businesses contribute to about 60 percent of the cumulative GNP in Latin America (IFC, 2009). in addition to, accordingly to recent researches that 95% percent of employment in the Middle East and especially in the Arabian Gulf Peninsula is in the family owned businesses. There are several definitions that explains the family business corporations, the IFC define it as a company where the voting majority is in the hands of the controlling family; including the founder(s) who intend to pass the business on to their descendants, in another words is A business actively owned and/or managed by more than one member of the same family. There are two systems that control the family businesses; which are the family system, and the management system, the two system overlap due to the dual roles that any family member take, like a family member may be a manger or an employee in the business and here where the conflict arise. The family system is based on emotional, love and care. The family system is based on the relationship in the family and they take most of these values to the business. Where in the business system is the professional values are the edge of the decision. (Managment Resources, 2010) To define a family business need to understand the environment from one to another, here are list of family business definitions that made by researcher past the year that cover the family business from different view but reserving the concept. Table Family business Definitions A company is considered a family business when it has been closely identified with at least two generations of a family and when this link has had a mutual influence on company policy and on the interests and objectives of the family. (Donnelley, [1964] 1988: 428). Controlling ownership rested in the hands of an individual or of the members of a single family. (Barnes Hershon, 1976: 106). Organizations where one or more extended family members influence the direction of the business through the exercise on kinship ties, management roles, or ownership rights. (Tagiuri Davis, [1982] 1996: 199). It is the interaction between the two sets of organization, family and business, that establishes the basic character of the family business and defines its uniqueness. (Davis, 1983: 47). What is usually meant by .family business.is either the occurrence or the anticipation that a younger family member has or will assume control of the business from an elder. (Churchill Hatten, 1987: 52). We define a family business as one that will be passed on for the family.s next generation to manage and control. (Ward, 1987: 252). A business in which the members of a family have legal control over ownership. (Lansberg et al., 1988:2). A family business is defined here as an organization whose major operating decisions and plans for leadership succession are influenced by family members serving in management or on the board. (Handler,1989b: 262). Firms in which one family holds the majority of the shares and controls management. (Donckels FrÃÆ' ¶hlich,1991: 149). A business where a single family owns the majority of stock and has total control. Family members also form part of the management and make the most important decisions concerning the business. (Gallo Sveen, 1991: 181). A business firm may be considered a family business to the extent that its ownership and management are concentrated within a family unit, and to the extent its members strive to achieve, maintain, and/or increase intraorganizational family-based relatedness. (Litz, 1995: 78). A business governed and/or managed on a sustainable, potentially cross-generational, basis to shape and perhaps pursue the formal or implicit vision of the business held by members of the same family or a small number of families. (Sharma et al., 1997: 2). A family enterprise is a proprietorship, partnership, corporation or any form of business association where the voting control is in the hands of a given family. (Neubauer Lank, 1998: 8). Family businesses share some common characteristics, largely due to the interacting and overlapping domains of family, ownership and management (Tagiuri Davis, 1982). Family firms have a complex stakeholder structure that involves family members, top management, and a board of directors. Family members, who are often significant owners, usually play multiple roles in managing and governing the firm (Tagiuri Davis, 1982). This involvement promotes loyalty and also commitment to long-term value creation (Dyer Handler, 1994) and reduces problems that arise from separation of ownership and control, as experienced in large, public corporations (Jensen, 1989). Also, family businesses may enjoy a competitive advantage due, for example, to remaining entrepreneurial in character and having a strong sense of responsibility to society (Neubauer Lank, 1998), fast verbal and nonverbal communication, aided by a shared identity and common language of families (Gersick, Davis, McCollom Hampton Landsberg, 1997), family members. Business expertise gained during early childhood onward (Kets De Vries, 1996), and a strong organizational culture contributing to external adaptation and internal integration (Schein, 1983). However, the familys involvement in governing the firm may induce a focus on business and non-business goals, possibly leading to inefficiency (Schulze, Lubatkin, Dino Buchholtz, 2001). If the owner family is not regularly informed about the companys affairs, differing visions of the companys future may develop between management and the family. The resulting feuds between family factions may distract managements attention from value-creating activities and so reduce their commitment to strategic decisions. Owner-managers also may act opportunistically by satisfying their own needs at the expense of the companys performance and long-term survival. Entrenched owner-managers may not share their powers with others, especially not with the companys board. Furthermore the common characters of all family businesses are illustrated in the diagram below. Figure The individual represent the family members who are directly involved in daily bases with the operation, the family symbolizes the whole family where in some family businesses called the family counsel and the management dimension represents the family managers and non-family managers. McKinsey quarterly stated in the report keeping the family in business that only 5 percent will continue to create shareholders value after the third generation. Moreover; the IFC also mentioned in the family business hand book, while the third generation takes over; 95 percent of all family businesses will not survive the ownership around. These consequences might be a result to the lack of commitment and proper business education of handling the business demands. In addition, the survival of family firms is often challenged by dictatorial rule, resistance to change, lack of professionalism in management capabilities, confusion in family and business roles, rivalry and enlarged human emotions among family members, conflicts between interests of the family and the business, and a low rate of investment in business development (Donnelley, 1964; Gersick et al., 1997; Kets De Vries, 1993). All the definitions are focusing on the shareholders and their power in voting and management and these two points are actually the core strength and weaknesses of any family business. However there are other dimensions that a family business can be measured of its strength and weaknesses like: Culture Ownership and governance Succession planning Family involvement This dissertation will be reflected somehow in the culture dimension due to the strength of the factor here in the Arabian Gulf Countries and Oman. Different researcher came up with different definitions of the family business; however, the definitions imply six themes for clarifying the boundaries of the domain of family business: (1) ownership, (2) management, (3) generational transfer, (4) the familys intention to continue as a family business, (5) family goals, and (6) interaction between the family and business. These themes are similar to those found in the extant literature. For example, Handler (1989a) categorized family business definitions under four headings: ownership and management, interdependent subsystems, generational transfer, and multiple conditions. The extant literature on family business research has largely neglected the definition of the family itself. By modifying Winter.s, Fitzgerald, Heck, Haynes Danes (1998) definition of the family, the present study defines it as a kinship group of people related by blood or marriage or comparable relationship. This definition allows a multigenerational view of an extended family. Family Business in Oman According to the family firm institute (FFI) the around the 75% of Omans private companies are family owned, with their firms creating 70% of the country employment. There are 12 top families who are controlling around 75% of the contribution over all in Oman. The family owned business also control 90% of commercial activity according to Tharawat (Fortunes) Magazine. Oman is a part of the GCC Region where in the region is estimated that family businesses worth more than 1 trillion dollar, that is ready to be handled to the next generation. All family owned business share same characteristics as mentioned above, even the strengths and the weakness are similar to some extant in all family businesses. However, the family business can be categorized to two categories: Listed family businesses Non-listed family business The listed family businesses are set to fulfill the listed companies corporate governance code as per the CMA regulation, but the non-listed are not treated that way; whats so ever the size or the operations are. The CMA in Oman are concentrating nowadays to establish an attractive market and safe to all sizes of family businesses, the CMA is concentrating on converting the family closed family business to go public by Initial Public Offering(IPO) offering them a less strict rules and requirements to commence the IPO as the Head corporate governance Center declared. Furthermore there are different points that might affect the operation of any family businesses such as: family relations affect the assignment of the management family indirectly runs the company major family influence/dominance of the management (in terms of  strategic decisions) significant proportion of the enterprises senior management most important decision made by the family family control of the management of the enterprise at least 2 generations having had control over the enterprise These points might be strengthen the family business in the initial stages of the operations but there must be some kind of governance or policies on whom can make a decisions and how is not. Corporate Governance Corporate governance is a topic that has been a subject of significant debate since 2001 Enrons and other US companies crashed. Some analyst say lack of corporate governance was the main reason behind the crash (International Swaps and Derivatives Association, 2002). The international Swaps and Derivatives Association highlight that the failure was due to interests that extended certain managers at the expense of the shareholders. While the United States capital market where busy analyzing the reasons behind the crash of Enron and World Com, Sultanate of Oman has also experienced its share of corporate trouble affecting not only large companies such as Rice Mills SAOG and Oman National Investment Company Holding SOAG but also dozens of smaller companies, which have had to turn to the government for assistance (Dry, 2003). The year 2002 was the birth of the new corporate governance standards from the Capital Market Authority (CMA), but it was only covering the list companies in the Mu scat Security Market only. Since then the CMA focused on upgrading this standards and code and refine it to be in a worldwide acceptable standards and to include the best practice for the companies. The standards have been modernized since 2002 on the listed companies and the closed shared ones but nothing was mentioned on the family business side. In 2009 the CMA established the corporate governance center to help the companies implement the codes of corporate governance and to regulate the practice and monitor it, in addition to create a new standards to fit the family businesses practice. Till today the CMA and the Center did not establish a full concept on how they can produce a set of codes to be acceptable to the share holders of these businesses due to the lack of information on the family owned businesses in Oman. Theoretical framework related to Corporate Governance. The corporate governance model did not came from one framework or a certain theories, but I was built up on different practices and theories which results of different frameworks that today any economic system can customized to suit the needs to regulate the market. There are certain theories that been always associated with corporate governance practice which is set out the relation between the principle (shareholder) and the agent (management): The agency theory Stewardship Theory Stakeholder theory The agency Theory Agency theory having its roots in economic theory was exposited by Alchian and Demsetz (1972) and further developed by Jensen and Meckling (1976). Agency theory is defined as the relationship between the principals, such as shareholders and agents such as the company executives and managers. Agency theory argues that in the modern corporation, in which share ownership is widely held, managerial actions depart from those required to maximize shareholder returns (Berle and Means 1932; Pratt and Zeckhauser 1985). Since Jensen and Meckling (1976) proposed a theory of the firm (Agency Theory) based upon conflicts of interest between various contracting parties à ¢Ã¢â€š ¬Ã¢â‚¬Å" shareholders, company managers and debt holders à ¢Ã¢â€š ¬Ã¢â‚¬Å" a vast literature has been developed in explaining both aspects of these conflicts. Jensen and Meckling (1976) further specified the existence of agency costs which arise owing to the conflicts either between managers and shareholders (agency costs of equity) or between shareholders and debtholders (agency costs of debt). Financial markets capture these agency costs as a value loss to shareholders. The agency theory argues that an agency relationship exists when shareholders (principals) hire managers (agents) as the decision makers of the corporations. The agency problems arise because managers will not solely act to maximize the shareholders wealth; they may protect their own interests or seek the goal of maximizing companies growth instead of earnings while making decisions. Jensen and Meckling (1976) suggested that the inefficiency may be reduced as managerial incentives to take value maximizing decisions increased. Agency costs are arising from divergence of interests between shareholders and company managers. Agency costs are defined by Jensen and Meckling as the sum of monitoring costs, bonding costs and residual loss. (1) Monitoring Costs Monitoring costs are expenditures paid by the principal to measure, observe and control an agents behavior. The economic impact of asymmetric information also results in various corporate agency problems. Firm managers (insiders) know more about their firm than shareholders and debt financiers (outsiders). When outsiders are unable to judge over the firms performance, they tend to qualify a firms performance as moderate. A result of this asymmetric information is that shares of a firm with a great performance are undervalued and vice versa. More specifically, information asymmetries between shareholders or bondholders and corporate executive management creates the necessity of monitoring (costs) and complications for the structuring of financial contracts. They may include the costs of preparing reliable accounting information and audits, writing executive compensation contracts and even ultimately the cost of replacing managers. Denis, Denis, and Sarin (1997) contended that effective monitoring is restricted to certain groups or individuals. Such monitors must have the necessary expertise and incentives to fully monitor manager. In addition, such monitors must provide a credible threat to managements control of the company. (2) Bonding Costs To minimize monitoring costs, managers tend to set up the principles or structures and try to act in shareholders best interests. The costs of establishing and adhering to these systems are known as bonding costs. They may include the costs of additional information disclosures to shareholders, but management will obviously also have the benefit of preparing these themselves. Agents will stop incurring bonding costs when the marginal reduction in monitoring equals the marginal increase in bonding costs. As suggested by the agency theory, the optimal bonding contract should aim to entice managers into making all decisions that are in the shareholders best interests. However, since managers cannot be made to do everything that shareholders would wish, bonding provides a means of making managers do some of the things that shareholders would like by writing a less than perfect contract. (3) Residual Loss Despite monitoring and bonding, the interest of managers and shareholders are still unlikely to be fully aligned. Therefore, there are still agency losses arising from conflicts of interest. These are known as residual loss, which represent a trade-off between overly constraining management and enforcing contractual mechanisms designed to reduce agency problems. There are some other types of agency costs as following: (4) Agency Costs of Debt There are three groups of participants in a firm, suppliers of equity, debt suppliers and firm managers. It is logical that they would try to achieve their goals with different measures. Suppliers of equity, or shareholders, are interested in high dividend ratios and high share prices. Debt suppliers, on the other hand, are interested in interest and debt repayments, whereas firm managers would be focused on their financial remuneration. These conflicts of interest give rise to opportunity costs (whereby best strategies are often not adopted) and real costs (e.g., inspection costs). These costs decrease the market value of a firm. Kim and Sorensen (1986) investigated the presence of agency costs and their relation to debt policies of corporations. It is found that firms with higher insiders (managers) ownership have greater debt ratios than firms with lower insider ownership, which may be explained by the agency costs of debt or the agency costs of equity. (5) Agency Costs of Free Cash Flow The free cash flow theory presumes that there are enormous conflicts of interest between shareholders and stakeholders. This implies that managers decisions do not always maximize the value of a firm (Jensen, 1986). Jensen (1986) also emphasized the continuous agency conflicts between top managers and shareholders. These conflicts are especially severe in firms with large free cash flows. A free cash flow is the balance of money a company is left with when all projects are financed. If top managers hold more cash than profitable investment opportunities, they may overspend money on organization inefficiencies or invest it in projects with net present value (NPV) less than zero. The logic has it that higher debt levels reduces free cash flows and consequently increases the value of the company.

Revenge and Violence in Cassandra :: Cassandra Essays

Revenge and Violence in Cassandra   Ã‚     Ã‚  Ã‚   In "Mycenae Lookout," Seamus Heaney tells the story of Agamemnon, Clytemnestra and Cassandra after the Trojan war. "Cassandra" is the second part of "Mycenae Lookout" and chronicles Cassandra, Apollo's ill-fated prophetess, who is captured by Agamemnon at the war's end and brought back to Mycenae as a slave. The fates of Cassandra and the House of Atreus collide with Agamemnon's return to Mycenae, where his wife Clytemnestra and her lover Aegisthus plot his murder.   Aegisthus and Clytemnestra both seek revenge: Clytemnestra for her daughter's sacrifice and Aegisthus for the overthrow of his father and the sins of Agamemnon's father Atreus, of which Aegisthus was the only survivor. While Heaney probably drew from many classical sources for his poem, the section entitled "Cassandra" seems especially drawn from Aeschylus' play Agamemnon. Heaney compresses the events of Agamemnon into a mere 64 lines but still retains, partially through uses of the binaries w hich are contained in the play, the classic and timeless story of revenge and a violent vicious circle.      Ã‚  Ã‚  Ã‚   "Cassandra" begins with Cassandra's description. She is described as a prisoner of war might look, "soiled" (4), "devastated" (6-7) and "camp-fucked" (12), rather than marble smooth and serene, as one might expect a classical Greek figure to appear. Heaney focuses on her appearance and describes her clothing, "her little breasts" and the state of her head in lines four through ten. It is not until he gets to line 11, though, that he comments on what may have happened to her as a prisoner of the Trojan War. "Camp-fucked," with its feel of sexual violence, implies that, along with physical abuse and enslavement, Cassandra has endured rape as well (12). In lines eight through thirteen, Heaney chooses words, such as "punk," "char-eyed" and "gawk" to illustrate succinctly Cassandra's position in the House of Atreus: she is an alien, traumatized by the destruction she has witnessed and stunned to awkwardness by her descent from princess of Troy to slave of Myc enae.      Ã‚  Ã‚  Ã‚  Ã‚   The speaker says, "People / could feel / a missed / trueness" in Cassandra (14-17). This paragraph comes to a point with the word "focus," which is used as a verb.

Self-Managed Work Teams

SELF-MANAGED WORK TEAMS Class: Human Resource Management November 29th, 2012 CONTENTS INTRODUCTION___________________________________________________________1 SELF-MANAGED WORK TEAMS DICIPLINES_________________________________2 LEADING A SELF-MANAGED WORK TEAMS_________________________________5 THE DIFFERENCES BETWEEN CONVENTIONAL TEAMS AND SELF-MANAGED WORK TEAMS____________________________________________________________6 SUCCESS FACTORS OF SELF-MANAGED WORK TEAMS______________________8 ADVANTAGES AND DISADVANTAGES OF SELF-MANAGED WORK TEAMS____10CONCLUSION___________________________________________________________13 REFERENCES____________________________________________________________14 INTRODUCTION: Self-managed work teams are work teams that are given permission to organize and control the work that they do. Self-managed work teams are independent and interdependent as the self-managed work teams itself is independent while the members are interdependent. The team is self-regul ating, operating with few external controls. Team members determine schedules, procedures and the need to make adjustments.Self-managed work teams delegates specific responsibility and decision-making authority to the team itself, it is expected that the individual will set their own goals, monitor progress, adjust behavior to increase the chances of attaining goals and in some instances even self-reward or punishment comparing to the traditional work team, in where it is control completely by the management. By Self-managed work teams, each independent is given freedom and responsibility to accomplish tasks in an efficient way as the main idea of self-managed work teams is positional authority.By adopting self-managed work teams, the individuals can create synergy through the contribution of several team members all engaged on the same task, while psychological well-being arises through increased opportunities for interaction between team members and involvement in job-related deci sion making. In general, self-managed teams have considerable discretion over: * The work done and setting team goals * How work is achieved – which processes are used and how work is scheduled * Internal performance issues – distributing the work and the contribution made by each member of the team * Decision making and problem solving.SELF-MANAGED WORK TEAMS DICIPLINES: In order for an organization that wanted to establish and achieve the self-managed work teams from the traditional teams, there are disciplines of the self-managed work teams that need to be follow. These disciplines are a set of skills, approaches, insights, and practices that are not typically mastered by more conventional teams. As the disciplines itself, is evolutionary rather than revolutionary, the teams need to move toward self-management along a continuum from â€Å"other-directed† to becoming self-directed.By mastering the self-managed work team’s disciplines, it is the main key to achieve and understand the concept of self-managed work teams itself. These disciplines also ensure the long-term success of the teams. A self-managed work teams discipline consists of: * Establish & Communicate the Boundaries of Team Authority: Aside from defining the boundaries of the team authority, a self-managed work teams must clearly communicate to its members, to the steering committee, to other teams, and to the entire organization the specific boundaries of its ole and authority. When a self-managed work teams can’t uphold its communication it can cause a self-destruction, as it fail to negotiate a clear and agreed-upon charter up-front. Aside, to maintain the communication between members, a consistent measurement or checking is required to ensure its relevancy. * Develop Cross-Functional Skills or Knowledge: Another difference of self-managed work teams and conventional team is that all members of the team are intimately familiar with all of the tasks done wit hin the team.All members on a self-managed work teams must not only understand the variety of jobs and tasks performed within the team, they must also have the capability to perform each of these jobs or tasks. Training all team members in each other's tasks is an important component of the self-managed work teams skill or practice set. * Develop Critical Thinking Skills: A self-managed work teams must critically evaluate its role in the organization, its charter, and its goals, its evolving norms of behavior, its performance, its successes and others.A self-managed work teams must always examining its processes, its environment and its results. The skills of critical thinking include identifying our mental models or assumptions, challenging the â€Å"context† within which the team operates imagining and exploring alternative realities, and becoming â€Å"reflectively skeptical. † * Become Self-Directed Learners: Conventional work teams often depend upon the learning p riorities set by management or the training office; self-managed work teams break this dependency and define for themselves what they need to know.Aside from learning their job, the team also learn to handle responsibility for identifying needed skills and knowledge essential for their and the company's long-term success. The team assumes full responsibility for exploring what they must know and master next year, and the year after that, and the year after that. The self-managed work teams’ works with the training office to discover new methods and approaches for learning what the team needs to become self-directed, long-term learners. * Manage Team Performance:Conventional teams may be involved in goal setting and performance evaluation, but management still plays a major role in molding these goals and in evaluating the team's performance. A self-managed work teams assumes full responsibilities for these tasks, the self-managed work teams, therefore, must be trained in the skills and knowledge of team performance management. This includes the skills of goal setting, establishing benchmark standards, evaluating performance against standards, developing plans for performance improvement. Manage Human Resources: In traditional work teams, management usually assumes the primary responsibility for defining needed positions, recruiting the right candidates, establishing criteria for evaluating the candidates, selecting the new worker, and orienting him or her to the job. Further, once the employee is on the job, management then monitors and evaluates the employee's performance and takes corrective action if required to improve performance. However, the self-managed work teams assume full responsibility for managing its human resources.Following guidelines established by the HR department, the self-managed work teams usually performs all of the functions that result in a new hire. It also assumes responsibility for resolving individual performance problems t hat occur when individual members don't meet team expectations. As a result, team members must learn to master such HR skills as recruiting and selecting new hires, monitoring individual performance, and then taking action to correct performance problems. While it might be true that SMWTs will approach performance problem solving quite differently than traditional management approaches (e. . , looking for cause not blame), the team must be capable of dealing with the team member who fails to work effectively with the team. This may even include the difficult task of disciplining or even terminating a team member. Although managing its human resources may be the hardest skill for the team to master, it is probably the most critical to the team's long-term success. Self-directed work teams, also known as self-managing teams, represent a revolutionary approach to the way work is organized and performed.Instead of organizing work based on the traditional Taylor model — reducing a process to individual steps — work becomes restructured around whole processes. There must be interdependence and joint responsibility for outputs if there is to be a self-directed work team. Whereas the traditional system reduces the required skill at every level of work, producing boredom in the bottom-level jobs, the new system integrates the needs of the people with the work to be done, and those closest to the jobs help design the job. LEADING A SELF-MANAGED WORK TEAMS:The leadership role in a self-managed team is very different from that of a team leader in a traditional hierarchical team such as a functional team. In a hierarchical team the team leader allocates work. In contrast, in a self-managed team, the leadership role involves taking on more of a supporting role, which includes identifying the long-term career and personal development needs of the team within the context of the overall organization. The team leadership role in a:| Hierarchical team| Self-managed team| The role is vested in one individual. | The role may be shared. | To manage the team. To support the team by providing (or arranging others to provide) coaching and advice. | To plan and allocate the work done by the team. | To agree, in discussion with the team, the standard of work and the aims, objectives and targets of the team. | To monitor and appraise the performance of team members in carrying out the tasks allocated to them. | To monitor the achievement of the team as a unit. To appraise individual performance. | To motivate the team members. | To provide the conditions for high motivation. | To act as the main contact point for communication between the team and the rest of the organisation. To facilitate the creation of channels of communication with the rest of the organisation. | THE DIFFERENCES BETWEEN CONVENTIONAL TEAMS AND SELF-MANAGED WORK TEAMS: In an organization, there are many types of work teams that is apply in the organization itself, each of the work teams have different structure and way of communication with their members. The differences of work teams’ structure * Managed Team: A group of people working together toward a common goal. The ‘what’ will happen, ‘where’ it will happen and ‘how’ it will happen is set by the organisation and/or the manager. Self-Managed Team: Is a group of people working together in their own way toward a common goal which is defined outside the team. The team decides their work schedule, in what order, when to deliver, how, to what standards, and by whom. * Self-Directed Team: A group of people working together in their own way toward a common goal which the team defines. They will perform all of the above but in addition also have input on recruitment to the team, training, compensation, performance management, discipline, and acts as a profit center by defining its own future.The difference of self-managed work teams with conventional teams is self-ma naged work teams complete an entire piece of work, whether it's a product, a service, or part of a large product of service. The team assigns tasks that individual team members perform. In other words, the team plans, organizes, and controls work activates with little or no direct involvement of a higher status supervisor. Self-managed work teams control most work inputs, flow, and output. Aside, they are responsible for correction work flow problems as they occur.On other words, the teams maintain their own quality and logistical control. Self-managed work teams receive team-level feedback and rewards. This recognizes and reinforces the fact that the team – not individuals – is responsible for the work, although team members may also receive individual feedback and rewards. Characteristics of a mature self-managed work teams SUCCESS FACTORS TOWARDS SELF-MANAGED WORK TEAMS: There are some factors that need to be considered by the organization as those factors are the s uccess factors towards self-managed work teams.When an organization neglects those factors, there is a high possibility that the organization will not achieve an effective self-managed work teams. * Learn: A key success factor for self-managed teams is to be open to, and continuously gather, information about how other self-managed teams are operating, through meetings and other forms of communication. These may be teams within the organization or within other organizations. Even if the self-managed teams learn about work in other organizations whose business is very different to the original organization, there may still be valuable lessons to learn.Aside, the organization should consider involving representatives of successful self-managed teams as mentors to the team, if possible. * Structure Just because a team is self-managed doesn't mean it can work with a nebulous structure where nobody is clear about who does what. There is a need to structure the team in the most efficient way. This will depend on the organization's business, the team's function and the individuals within it. Some self-managed teams work best where one member serves as a leader. Others are successful where all members are of equal status.However, the common success factor is that everyone is very clear about roles and accountability's within the team. * Achieve Most likely, a self-managed team will be endeavoring to achieve outcomes agreed with the organization's management team. However, within the team, each employee have different goals, like they wanted to try and achieve more than the agreed outcomes, as an indication that the self-managed team is functioning to a commendable level of efficiency and success. A self-managed team's achievements are particularly important where elements within the organization are dubious about the wisdom of implementing the teams. Evaluate Evaluation is an important part of a successful self-managed work teams. Just as in any organizational structu re, evaluation is the way of discovering to what extent aims and objectives have been achieved. A critical success factor of all self-managed teams is the ability to respond positively to evaluation, identify where improvements can be made and develop a plan to implement the changes needed to deliver them. ADVANTAGES VERSUS DISADVANTAGES: There is nothing perfect in a work teams, there are always limitations of it but aside of limitation, there are benefits of the work teams.The organization can decrease the impact of its limitation by improving in that certain weak area. The advantages of self-managed work teams are: * Job Satisfaction: With self-managed teams, employees have more job satisfaction because they are directly involved in the day to day running of a company and are more independent. This direct involvement helps them to identify more closely with a company's objectives. Employees also derive a sense of satisfaction from developing new decision-making and problem-solvin g skills and working as part of a close-knit team. Improved Productivity: According to â€Å"Business Week,† companies that use self-managed work teams are 30 to 50 percent more productive than those with a traditional hierarchy. This is because workers have a greater commitment to company goals when they are more closely involved in helping to achieve these goals. Having a greater share in the results ensures that teams quickly address a product's problems and defects and are sensitive to customers' needs and requests. Self-directed work teams have a wide range of skills because of the diverse backgrounds of individual members.This helps teams to develop innovative products and services and to take a creative approach to problem-solving. * Increased compatibility between employers and employees: Self-managed teams can relieve stress for the leader, who is then able to concentrate on other tasks. The team is mutually supportive and members learn from each other instead of app roaching the team leader for advice. * Commitment: Team members can become more involved in projects as a direct result of having increased autonomy and responsibility. * Motivation: Team members have shared or equal responsibility so members are accountable for their actions.The disadvantages of self-managed work teams are: * Extensive Training: Companies making the transition from a traditional management structure to self-managed work teams must invest considerable time and resources in training people in management skills. Training goes through several stages and this process can last between two and five years. Employees get additional training in providing customers service and satisfaction and must learn how to work effectively as part of a team. * Managing Managers: Managers may actively resist the concept of self-managed work teams because it makes their role effectively redundant.Organizations may have to offer additional professional training to managers before they can r eassign them to jobs that offer the same level of pay and status. Managers being reassigned need to receive highly specialized technical training. CONCLUSION: The introduction of employee empowerment through self-managed teams program can provide the necessary edge required to remain competitive in today's global market. 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