Management Report Project on Work Performance

Abstract The objective of this research is to find out if there is any correlation between work performance and job satisfaction through a sample study of sales personnel working in different banks. Additionally, this research sought to understand whether job satisfaction is linked to both work motivation and employee’s perceived style of leadership by Managers. With the help of surveys and interviews conducted with the participants, it was established that job satisfaction was positively related with work productivity. Similar essay: Argyles Communication CycleWork motivation and employee’s perceived style of leadership were also established as positively related with employee job satisfaction. These findings suggest that to increase work productivity, managers may be required to elevate the level of job satisfaction in employees, which may be potentially accomplished via a participative approach to leadership and effective motivation of employees. However, as the study is correlational in nature, the limitations of the current research are indicated under Discussion. Literature ReviewRelationship between Job Satisfaction and Productivity The most-used research definition of job satisfaction is by Locke (1976), who defined it as â€Å"a pleasurable or positive emotional state resulting from the appraisal of one’s job or job experiences†. There are other researchers and studies that support this notion of relationship between job satisfaction and productivity indicating that org anizations increasing job satisfaction is not only to benefit its employee but also for the organization financial advantages.As cited by Edward E. Lawler, job satisfaction is related to productivity as this comes from a path goal theory of motivation that has been stated by Georgopoulos, Mahoney and Jones, Vroom, Lawler and Porter. According to them, people are motivated to do things which lead to rewards that they value. In this case, a path-goal theory would predict that high satisfaction will lead to low turnover and absenteeism because the satisfied individual is motivated to go to work where his needs are being satisfied.As quoted by Dailey and Kirk, 1992, job satisfaction and organisational commitment share an inverse relationship with absenteeism and turnover intention, factors that can sharply cut bottom line. Adverse consequences include lower productivity and morale, and higher cost of hiring, retention and training. Thus, the reverse holds true whereby lower frequencies of absenteeism and turnover could lead to potentially higher contribution to organisational economic productive gains.In a research done by National Research Institute for one of the largest Food Services providers in the United States, it was suspected that employee satisfaction was the cause for high employee absenteeism, ruling out other tangible factors. Findings showed that low job satisfaction was evident; the National Business Research Institute (NBRI) Root Cause Analysis indicated that a gap existed between employees and the organization's short and long term goals, vision, and mission.Proposed recommendations from NBRI included several measures to relay management's strategic plans to the lowest-ranked employee and ensuring each and every employee’s daily activities were aligned according to such plans. Thereafter, subsequent employee survey results showed significant increases on employee satisfaction, enhancing Total Company Employee Satisfaction dramatically.Emplo yee Satisfaction Scores took a turn for the better, from a Weakness (below the 50th percentile of the NBRI Normative Database) to being Strength (above the 75th percentile of the NBRI Normative Database) in only six months. What’s more, employee absenteeism was reduced by more than 60%. With this correlation, Organ (1988) found that the job performance and job satisfaction relationship follows the social exchange theory in which employees’ performance constitute a giving back to the organization from which they get their satisfaction.Recognising the fact that low job satisfaction leads to low productivity, in turn aggravating organisational performance, it is imperative organizations assess the strength of the relationship between employee job satisfaction and productivity level because of underlying implications on redesigning certain aspects of work. A study was conducted by Shanu and Gole (2008) on the satisfaction level of 100 managers from 15 private manufacturing firms. A job satisfaction instrument assessing areas such as recognition, monetary remuneration, working conditions, nature of job, and future advancement was used.Then, these survey findings were compared with performance evaluations done by executives of assorted companies. In the wake of this, it was discovered that performance levels are consistent with high satisfaction scores. This is congruent with a review of 301 studies, revealing that job satisfaction bolsters up work performance, with a higher inclination towards professional jobs, compared to less complex jobs (see Saari & Judge, 2004). While there are studies to show this correlation, the present study was concerned with whether job satisfaction is significantly associated with performance in the economic aspect.In a study conducted on 42 manufacturing companies, Patterson, Warr, and West (2004) found that- holding other factors like company size, previous productivity, and industrial sector constant- productivity (fin ancial value of net sales per employee) is positively correlated to job satisfaction In another study, Herzberg et al. (1959) stated that (positive) satisfaction is due to good experiences, and that these are due to `motivators' – achievement, recognition, the work itself, responsibility and advancement.Dissatisfaction is due to bad experiences caused by `hygiene' factors – supervisors, fellow workers, company policy, working conditions, and personal life (Herzberg et al. , 1959). Therefore, it is unable to ascertain if job satisfaction is positively correlated with economic productivity or whether an inverse relationship exists. The present study seeks to reaffirm findings from the bulk of research in favour of the notion that satisfied employees are more labour productive. Relationship between Motivation and Job SatisfactionThe level of performance of employees relies not only on their actual skills but also on the level of motivation each person exhibits (Burney et al. , 2007). A motivational framework, built on the premise of how employees should be managed, affects job satisfaction. Herzberg's (1959) two-factor theory of motivation attributes ‘pay and benefits' to one of the hygiene factors, in that the exclusion of this causes job dissatisfaction (Hugh Greenway & Tim Runacre, 2008). As Argyle (1989) explains, positive job atisfaction is due to motivators such as achievement, recognition, the work itself, responsibility, and advancement, while dissatisfaction is due to bad experiences caused by hygiene factors such as salary, supervision, company policy, relations with fellow workers, and conditions of work. Lawler (1973) has a theory known as discrepancy theory which states that workers measure job satisfaction based on what they receive versus what they expect to receive, and a comparison in which an actual outcome level is lower than an expected outcome level would lead to dissatisfaction (Castillo & Cano, 2004).However, in another theory of motivation known as equity theory, it states that motivation is affected by workers’ perception of how fairly they are being treated, with employees evaluating their inputs/outcomes by comparing them with the inputs/outcomes of others (Castillo & Cano, 2004; Luthans & Doh, 2009). If the ratio of inputs to outcomes is similar to the inputs and outcomes of others, equity exists. Inequity exists when the ratio of inputs to outcomes is unequal to the inputs and outcomes of others (Castillo & Cano, 2004; Luthans & Doh, 2009).Job satisfaction is then associated with the perception of equity, while perceptions of inequity will result in dissatisfaction with this belief having a negative effect on job performance (Castillo & Cano, 2004; Luthans & Doh, 2009). The common factors shared by the different theories of motivation are the implication of a need for effective motivation in order to make employees satisfied with their jobs. Castillo and Cano (2004) examining in an ear lier study on 148 faculty members reported that all of the job motivator factors identified by Herzberg (1959) were moderately or substantially related to overall job satisfaction.Such findings shed light on how organisations can enhance productivity by considering provision of motivators such as recognition or improving on such motivators so as to heighten job satisfaction. In order to attain optimal profits, it is necessary to ascertain the link between motivation and job satisfaction through extensive foraging for substantial evidence. Most importantly, the present study will illustrate that existence of motivators to propel employees to reach for organisational goals has a favourable impact on labour productivity via enhancement of job satisfaction.Leadership Style and Job Satisfaction In an organisation, the performance of staff is not only affected by motivation and job satisfaction but it is also affected by the leadership style adopted by the organisation. Leadership is defi ned as a process through which others are influenced to channel their efforts in the direction of attaining their goals (Luthans & Doh, 2009). Organizational leadership sets the tone in the effectiveness of organizations, as well as plays a vital role in job satisfaction.Positive interactions among organisational leaders and members give rise to mutual respect, trust, and the ability to generate a sense of hope for the future- a much needed ingredient for job satisfaction to blossom from such relationships (Ackfeldt& Coote, 2005; Farh, Podsakoff, & Organ, 1990). Moreover, there is research that shows the existence of the relationship between leadership style and job satisfaction. The National Business Research Institute (2007), examining factors of job satisfaction, surveyed more than 15,000 employees, largely white collar, from all levels of participating organizations in the United States.Leadership is identified as the prominent factor contributing to job satisfaction, a phenomen on evident in organizations. There is a relationship between managers’ leadership styles and employees’ job satisfaction, illustrated in a sample of 814 employees of a national hospital. According to Rad and Yarmohammadian (2006), a strong correlation between leadership behaviours and job satisfaction prevails, citing that employee job satisfaction depends upon the style of leadership of managers.It was realised that a trend emerged from studying the sample group; a participative leadership style of managers dominates where this is a style of leadership in which subordinates are led through a reliance on task-oriented and people-oriented approaches. In Luthans and Doh (2009) findings, participative leaders adopt a non-authoritative tone, empowering employees, together with consulting with them, delegating responsibilities, and enabling mutual decision-making. As well, another study on the influence of leadership style on job satisfaction included 220 individuals coming from diverse industries like manufacturing, education, and overnment. Research findings showed a consistency with the earlier sample study, denoting that task and relational leadership style were positively associated with subordinate job satisfaction (Madlock, 2008). In all, it is essential to bear in mind that participative approach to leadership comprising task and relational behaviours may not be the best â€Å"one style fits all† style of management due to the vast differences among organization’s cultures, leaving one to engage in other styles of leadership where appropriate. (Yarmohammadian, 2006).Among other things, participative leadership is more popular in technologically advanced nations and may increasingly abound as countries mature economically (Luthans & Doh, 2009). Therefore, it is vital to further justify through the current study if job satisfaction increases via participative leadership style. If such a relationship is confirmed, it is assumed that job satisfaction shares a positive association with productivity; participative leadership by managers could potentially boost employee productivity. The Current StudyThe present study examined the relationship between job satisfaction and productivity where respondents are seventy-three employees working in 2 local and 2 foreign banks based in Singapore. The intent is to affirm if employees’ level of work motivation and managerial leadership style gives rise to varying levels of job satisfaction. The participants in the study were Relationship Managers recruited from the sales departments of the local banks, namely United Overseas Bank (UOB) and Post Office Savings Bank (POSB), as well as from the foreign banks Standard Chartered and Citibank N.A. The scope of work required by the employees across the different organizations was similar, with the Relationship Managers being responsible for revenue generation by selling financial products. These organizations were selected f or the present study to ascertain whether job satisfaction relates to employee economic performance in terms of labour productivity. In the banking sales sector, where productivity is measured in terms of financial value of net sales per employee, this provides a pecific measure of the construct and permit correlational analysis with job satisfaction scores, precisely the reason for the choice of the banking sales sector being the main subject of this present research. Three instruments assessing work motivation, leadership style of managers, and job satisfaction were given to the participants. Participants could respond freely to the survey questions according to their own perceptions. Every participant’s labour productivity figures were provided by the respective managers of the four sales departments.Lastly, the Method furnished additional details regarding the assessment instruments. Hypotheses It was anticipated that labour productivity would be positively associated wit h job satisfaction. It was also predicted that both work motivation and employees’ perceived use by managers of participative leadership would be positively related to job satisfaction. Method Participants One Hundred working adults, out of which 50 were females and 50 were males, aged from 21 to 40 (M= 30. 9 years, SD= 5. 37) constitute the respondents for this study.These respondents, each having worked in these banks from 1 to 10 years (M= 5. 41, SD= 2. 58), were chosen from the sales acquisition departments within the main branches of 2 local banks and 2 foreign banks based in Singapore. Materials The tools required for the purposes of the present study come in three different assessments. Firstly, using The Leadership Style Questionnaire by Northouse (2001) measures task and relational leadership style to collate a general leadership profile representative of the participative approach to leadership.According to Anderson, Madlock & Hoffman, 2006 (cited in Madlock 2008), this instrument has reported scale reliabilities ranging from 0. 92 to 0. 95, and comprises 20 items measuring task and relational leadership styles on a 5-point Likert scale (1= strongly disagree to 5= strongly agree). The second instrument, adapted from the Work Motivation Behavior Scale of the Akinboye’s 2001 Executive Behavior Battery, is a 15-item questionnaire incorporating a 4-point Likert scale (1= strongly agree to 4= strongly disagree).The third item measuring job satisfaction was rated by the 8-item Abridged Job in General scale (Russell, Spitzmtiller, Lin, Stanton, Smith & Ironson 2004, cited in Madlock 2008) that was based on a 5-point Likert scale response (1= strongly disagree to 5= strongly agree). The Abridged Job in General scale was reportedly said to have a reliability of 0. 87 (Russell et al. 2004, cited in Madlock 2008). Attached in Appendix 1, 2, and 3 respectively is a copy of the Leadership Style Questionnaire, the Work Motivation Instrument, and the Abridged Job in General scale.Apart from these data obtained from the research instruments, branch department mangers provided the labour productivity of each employee based on the financial value of the nets sales revenue per month per employee for the past 12 months. Procedure A telephone discussion with each of the four banks’ main branch’s sales acquisition departments’ managers on the possibility of conducting a study investigating the links between leadership style, employee motivation, and job satisfaction which in turn predicts productivity was done.After consenting to the terms of the research, the researcher scheduled a half hour for the employees of each of the four banks at a time convenient to them. Meanwhile, delivery of the informed consent form and instructions for the three assessments, packed in an envelope, was arranged to each participant. All participants were given an explanation regarding the nature of the research, including clearing any doubts they might have, pertaining to the research. Sealed envelopes containing the questionnaires completed and handed by the participants to the respective manager would be collected from the latter in a week’s time.On the same day of collection, the month-end financial net sales figures of each employee for the duration of the past 12 months were obtained from the managers in order to compute monthly mean sales revenue figures as an index of labour productivity for each participant Results A computation of statistics for each assessment tool was done. The mean of job satisfaction was 23. 88 (N= 100, SD= 2. 46), the mean work motivation score was 38. 76 (N= 100, SD= 3. 94), while the mean score of employees’ perception of leadership style was 83. 98 (N= 100, SD= 6. 10).Monthly financial net sales figures for the past 12 months of each participant were to yield mean monthly sales revenue figures after which the mean of the averaged monthly sales revenue figures of all participants was found to be 14,265. 62 (N= 100, SD= 2,653. 47). Simple regression regressed productivity on job satisfaction. Results show that job satisfaction was positively associated with productivity, accounting for 20. 04% of the variance in productivity (R= 0. 66, p; . 001). Through multiple regression analysis, it was found that motivation and perceived leadership style affected the varying levels in job satisfaction scores.Work motivation and perceived leadership style were both positively correlated with job satisfaction, accounting for 19. 5% (R= 0. 66, p; . 001) and 16. 26% (R= 0. 24, p; . 001) of the variance in job satisfaction respectively. Discussion The present study, conducted on a pool of white collar professionals, looked into the relationship between labour productivity and job satisfaction, as well as examined whether job satisfaction was associated with work motivation and employees’ perceptions of managerial leadership style.Results tabulated from th e survey which was measured utilizing self, peers or supervisor assessment indicate that job satisfaction was moderately correlated with labour productivity, a finding that lends support to the body of research suggesting that greater job satisfaction is indicative of higher work performance (Argyle, 1989; Saari & Judge, 2004; Shahu & Gole, 2008).However, even when the economic aspect of performance, or more specifically, of labour productivity was examined, average job satisfaction still indicates to be correlated significantly with performance, as consistent with Patterson M, 2004 study of 42 manufacturing companies indicating that company mean overall job satisfaction was significantly associated with and predictive of economic performance.However, even with the result that accounts for such relationship between work productivity and job satisfaction, it is difficult to infer that job satisfaction is the direct cause to that outcome. As it is widely known that correlation does no t equate to causation, it cannot be concluded with certainty that satisfied employees evidence greater productivity as a consequence of their being satisfied with their jobs, as the reverse could be true that productivity actually accounts for job satisfaction or a third variable could influence the outcome of the relationship between both.As for the third variable there is some evidence to suggest that redesigning jobs to enhance job features such as task identity, task significance, skill variety, autonomy, and feedback may increase job satisfaction (Argyle, 1989), as it has been proposed that such features provide job satisfaction (Hackman & Oldham, 1980, cited in Argyle, 1989). What can be extrapolated from the findings of the current study is that job satisfaction makes up a proportion of the variance in employee productivity.This implies that a focus on improving employees’ level of satisfaction with their jobs may elevate labour productivity figures. Motivation and Job Satisfaction The findings obtained from the present study suggest that work motivation is positively associated with job satisfaction. Most research has indicated moderate to substantial correlations between Herzberg’s (1959) job motivator factors and overall job satisfaction (Castillo & Cano, 2004) which is no surprise that there is a positive correlation between both.If motivators such as recognition, achievement, nature of the work, advancement and responsibility determine job satisfaction as purported by Herzberg (1959), then motivating employees via a focus on improving such aspects of a job may serve to make individuals more satisfied with their jobs. Castillo and Cano (2004) found that amongst the job motivator factors that were associated with job satisfaction amongst college faculty members, recognition best explained the variance among faculty members’ overall level of job satisfaction.Interestingly, Herzberg’s (1959) assumption that hygiene factors r elate to or determine dissatisfaction was supported, as it was found that the factor of working conditions was the least motivating aspect of faculty members’ jobs, implying that employees were least satisfied with the context in which their job was performed (Castillo & Cano, 2004).Management may thus need to seek out creative methods to motivate workers by providing opportunities for advancement, achievement, and through the cultivation of a sense of responsibility and autonomy as individuals are motivated to excel because of intrinsic needs such as achievement, recognition, self-development, and meaning derived from performing work. More importantly, what Castillo and Cano’s (2004) findings suggest is that work should provide recognition through acts of notice or praise by colleagues, superiors, and management to increase job satisfaction.In the studies that have reported relationships between job satisfaction and work performance, it has been noted by Argyle (1989) that the correlations are greater for employees in supervisory or professional jobs. Also, job satisfaction predicts performance, with the relationship being even stronger for professional jobs could be due to the possibility that in such jobs, job performance is less contingent on external pressures such as task speed or wage incentives and more on motivation (Argyle, 1989).To the degree therefore that work performance or productivity depends upon employees’ level of job satisfaction, motivation at work holds an indispensable role particularly with respect to white-collar professional jobs in terms of its potential influence on job satisfaction. To conclude if motivation directly determines job performance are well beyond the scope of the current study.Further research is thus warranted in this area that will permit inferences about whether work motivation causes job satisfaction or work performance, or whether job satisfaction instead influences motivation. Leadership Styl e and Job Satisfaction In the present study, leadership style was indicated to be positively related to employee job satisfaction. This finding is of value because it supports the research findings that indicate that leadership behaviour of managers has an important influence on subordinate job satisfaction (Madlock, 2008).It appears from the current findings that as the perceived use by employees of a participative style of leadership in which task-centered and people-centered approaches are combined to lead subordinates, employees are more satisfied with their jobs. Such a finding is of direct relevance to organizations because the present research has also indicated a link between employee job satisfaction and work productivity in such a manner that increased levels of job satisfaction are associated with increased labour productivity.Thus, the extension of the current research by investigating the link between employees’ perceived leadership style of managers and job sati sfaction provides organizations with a further area of focus to potentially maximize job satisfaction and thus to enhance performance of employees. Conclusion The organizational goal of helping employees find satisfaction in their work should be one of paramount importance, as it may be to the mutual benefit of the employer and employee. The present study suggests that employees tend to perform more productively when they are satisfied with their jobs.In order to capitalize on employee job satisfaction to potentially increase performance of employees, ways of maximizing job satisfaction may encompass managing workers by selecting a participative style of leadership, as well as by motivating employees by ensuring that relevant intrinsic needs such as recognition are fulfilled though appropriate restructuring of the job. Such endeavours may then be advantageous for organizations in terms of productivity gains in the likelihood that job satisfaction is improved upon. Appendix 1 LEADERS HIP STYLE AND WORKPLACE QUESTIONNAIREDirections: Think about how often your immediate supervisor engages in the described behaviour. For each item, select the number that best represents the behaviour that your immediate supervisor is most likely to exhibit. 1 Strongly disagree2Disagree 3Neutral 4Agree 5Strongly agree My immediate supervisor†¦ 1. Tells group members what they are supposed to do. 1 2 3 4 5 2. Acts friendly with members of the group. 1 2 3 4 5 3. Sets standards of performance for group members. 1 2 3 4 5 4. Helps others feel comfortable in the group. 1 2 3 4 5 5.Makes suggestions on how to solve problems. 1 2 3 4 5 6. Responds favorably to suggestions made by others. 1 2 3 4 5 7. Makes his or her perspective clear to others. 1 2 3 4 5 8. Treats others fairly. 1 2 3 4 5 9. Develops a plan of action for the group. 1 2 3 4 5 10. Behaves in a predictable manner toward group members. 1 2 3 4 5 11. Defines role responsibilities for each group member. 1 2 3 4 5 12. Comm unicates actively with group members. 1 2 3 4 5 13. Clarifies his or her own role within the group. 1 2 3 4 5 14.Shows concern for the personal well-being of others. 1 2 3 4 5 15. Provides a plan for how the work is to be done. 1 2 3 4 5 16. Shows flexibility in making decisions. 1 2 3 4 5 17. Provides criteria for what is expected of the group. 1 2 3 4 5 18. Discloses thoughts and feelings to group members. 1 2 3 4 5 19. Encourages group members to do quality work. 1 2 3 4 5 20. Helps group members get along. 1 2 3 4 5 Appendix 2 HOW MOTIVATED ARE YOU IN DOING YOUR JOB The following questions ask you how motivated you are in completing your job.Please indicate your response based on the following scale. (1 Strongly Agree to 4 Strongly Disagree) 1. You always put in your best effort in the things you do. 1 2 3 4 2. You exceed what you are suppose to accomplished 1 2 3 4 3. Your environment affects your mood in performing your task 1 2 3 4 4. You have a group of helpful colleagues th at make your work pleasant 1 2 3 4 5. Your pay is low so you perform at the minimum. 1 2 3 4 6. You work just to satisfy your basic needs 1 2 3 4 7. To have career advancement is important to you. 1 2 3 4 8.If you are lowly paid but given recognition for you work, you feel good. 1 2 3 4 9. You feel you are part of the organisation. 1 2 3 4 10. Do you feel enthusiastic about your current job. 1 2 3 4 11. Do you feel enthusiastic if you are given a new job scope 1 2 3 4 12. Are you looking forward to achieve the organisation goal. 1 2 3 4 13. You feel discourage when you are asked to perform a new task 1 2 3 4 14. You feel that you are important to the organisation 1 2 3 4 15. Overall, you feel the organisation plans for your future. 1 2 3 4Appendix 3 HOW SATISFIED ARE YOU WITH YOUR JOB QUESTIONNAIRE The following questions ask you about how you feel about your job at work everyday and how satisfied are you. Please indicate your agreement or disagreement on the following statements by indicating your appropriate response based on the following scale. 1 Strongly disagree2Disagree 3Neutral 4Agree 5Strongly agree 1. At this very moment, I am very enthusiastic about my work. 1 2 3 4 5 2. Right now, I feel fairly satisfied with my present job. 1 2 3 4 5 3. At present, each moment at work seems like it will never end. 1 2 3 4 5 4.At this moment, I am finding enjoyment in my work. 1 2 3 4 5 5. Right now, I consider my job rather unpleasant. 1 2 3 4 5 6. My job gives me a sense of achievement. 1 2 3 4 5 7. The amount of support and guidance I receive from my supervisor. 1 2 3 4 5 8. The overall quality of the supervision I receive in my work. 1 2 3 4 5 References FACTORS EXPLAINING JOB SATISFACTION AMONG FACULTY Jaime X. Castillo, Extension Specialist New Mexico State University Jamie Cano, Associate Professor The Ohio State University Journal of Agricultural Education 1) Locke, E. A. (1976). The nature and causes of job atisfaction. In M. D. Dunnette (Ed. ), Handbook o f industrial and organizational psychology (pp. 1304). Chicago: Rand McNally. 2) Organ, D. W. (1988). Organizational Citizenship Behavior – The Good Soldier Syndrome. (1st ed. ). Lexington, Massachusetts/Toronto: D. C. Heath and Company. 3) Herzberg, F. , Mausner, B. and Snyderman, B. B. (1959), The Motivation to Work. New York: Wiley. 4) Fred Luthans and Jonathan P. Doh, (2009), ‘International Management, Culture, Strategy, and Behavior 7th edition’, Mcgraw Hill, New York 5) http://www. nbrii. com/Employee_Surveys/Satisfaction. html 6) Dailey, R.C. and Kirk, D. J. (1992), â€Å"Distributive and procedural justice as antecedents of job satisfaction and intent to turnover†, Human Relations, Vol. 45, pp. 305-17. 7) West, M. and Patterson, M. (1998), â€Å"Profitable personnel†, People Management, Vol. 4, pp. 28-31. 8) Grant, L. (1998), â€Å"Happy workers, high returns†, Fortune, p. 81. 9) Hian Chye Koh, El'fred H Y Boo feb 2001. The link betwe en organizational ethics and job satisfaction: A study of managers in Singapore, Vol. 29, Iss. 4; p. 309 10) Ackfeldt, A. , & Coote, L. V. (2005). A study of organizational citizenship behaviors in a retail setting.Journal of Business Research, 58(2), 151-159 11) Farh, J. , Podsakoff, P. M. & Organ, D. W. (1990). Accounting for organizational citizenship behavior: Leader fairness and task scope versus satisfaction. Journal of Management, 16(4), 705-721. http://proquest. umi. com. eproxy. ucd. ie/pqdweb? index=5&did=1674096061&SrchMode=1&sid=3&Fmt=6&VInst=PROD&VType=PQD&RQT=309&VName=PQD&TS=1277568831&clientId=13279 12) Ali Mohammad Mosadegh Rad, Mohammad Hossein Yarmohammadian, (2006) â€Å"A study of relationship between managers' leadership style and employees' job satisfaction†, Leadership in Health Services, Vol. 9 Iss: 2, pp. 11 – 28 13) Paul E Madlock. The Journal of Business Communication. Urbana: Jan 2008. Vol. 45, Iss. 1; p. 61 Fishing for the right people Hug h Greenway, Tim Runacre. Training Journal. Ely: Mar 2008. pg. 41, 4 pgs Burney, L. and S. K. Widener. 2007. Strategic performance measurement systems, job- relevant information, and managerial behavioral responses – Role stress and performance. Behavioral Research In Accounting (19): 43-69. Shadare Oluseyi . A, Hammed, T. Ayo 2009 â€Å"Influence of Work Motivation,

Fast Fashion

Introduction The clothing industry, as one of the most globalizes industries in the world (Fibonacci et al 1994), is currently undergoing a restructuring, especially the fast fashion sector. Fashion markets are synonymous with rapid changes and short product life cycles. Therefore, changes in consumer demand for newness and fashion trend force the emergence of fast fashion' strategy in retailers like Ezra and H;M and shifts in the focus of competitive advantage from price towards quick response.That is to say, clothing firms, which are adopting global or offshore sourcing strategy, are not noninsured to have more competitive advantages as before. However, the question is: should fast fashion retailers adopt quick response strategy instead of overseas sourcing strategy immediately, or adopt both strategies? In the first section, a literature review of the nature of fashion market and related arguments will be introduced. The overseas sourcing strategy and the quick response strategy w ill be explained with examples of existing clothing firms in the second and the third section.The fourth section will compare and contrast the advantage and disadvantages of these two strategies. Combining theoretical knowledge with empirical case studies, it is argued that companies could reach the maximum profit by adopting overseas sourcing strategy as well as quick response strategy. 1 . Literature Review Fashion retailers, such as Ezra, H;M, Benton and Marks ; Spencer have revolutionized the fashion industry by creating a concept of fast fashion'.The change in the culture of fashion from haute couture to fast fashion has attracted numerous researchers to identify and explore the nature of fast fashion market (Tokomak 2008, p. 22, Christopher et al 2004, p. 367, soul and -raccoon 2008, Tactile et al 2008). Accordingly, short life cycles, rapid prototyping and high volatility are identified as the key features of the fashion market. Compared to other industries, apparel product m anufacturing has unique features, for instance, numerous SKIS (stock keeping unit) in a season, hard to estimate customers' demand and wide range of products for basic to fashion items Non 2004).All these unique characteristics require a different approach to production sourcing, Soul and Turn-on (2008) pointed out that fast fashion retailers prefer using an opportunity-pull approach to the traditional designer-push model. By adopting the new approach, retailers could respond to the shifts in the market as quickly as possible. As a result, the more continuous production schedule (eight to twelve fashion ‘seasons') has substituted for the traditional two to four ‘seasons' calendar (Tactile et al 2008, p. 264, Dickens 2011, p. 316).In relation to global production networks, Dickens (2011) identified the ‘core' of a global production network as the circuit of four basic operations, which refers to inputs, transformation, distribution and consumption. Theoretically, th e quicker the production circuit flows, the higher the gross margin the company can gain. When we apply the theory into the clothing industry, the cost of production and the speed to response to changes in consumer demand are equally important. Both of them could contribute to the flow of production circuit.Since numbers of studies have elaborated the benefit of production relocation, the implementation of quick response strategy by fashion retailers has attracted the interest of researchers in recent years (Bristle et al 2003, Perry and Shoal 2000, leer and Bergen 1997). However, results of an exploratory study (Bristle et al 2003) shows that the advantages of quick response strategy have not been fully understood by fashion retailers. They tend to implement quick response strategy for internal supply chain management.Moreover, leer and Bergen (1997) tried to use formal model to examine the impact of quick response strategy on fashion retailers. Although there is companies already adopted both strategies, limited attention has been paid to the combined effect of these two strategies by researchers. Hypothesis: In an era of fast fashion, companies that adopt both global sourcing strategy and quick response strategy have better chance to succeed in the fashion looting market. 2. Cost, the most basic consideration. In order to have higher profit margin, one of the most effective ways is to cut down production costs.In view of the low labor cost in developing countries, global sourcing seems to be a good choice to reduce costs. With the development of global production networks and the increasing competition, fast all fashion clothing firms have shifted their manufacturing operations to low lost locations over the past decades. The shifts in the Shares manufacturer Levi Stratus's global strategy could vividly demonstrate how global sourcing strategy works and affect its supply chain. At first, the company was created in the USA.As it developed and became a global company, they began to employ workers all over the world. However, in face of fierce competition, Levi Strauss started to shift its operation to lower-cost countries in the late sass. By the year 2003, Levi Strauss closed the last four plants in North American and ‘has become an entirely offshore producer' (Dickens 2011 p. 318). The German fashion company Hugo Boss also provides similar example. In face of high production cost, namely high labor cost in domestic market, more and more fashion retailers choose to outsource their production.Moreover, some fast fashion retailers even have no manufacturing competency (Tokomak 2008). The representatives of this kind of retailers are Gap, H&M and Mango. As they do not own any factories, the only way for them do produce their products is outsourcing. The success of these retailers without factories proves the feasibility of global sourcing strategy. By contrast, when most retailers were busy outsourcing their production to lower cost countries, some fast fashion retails still insist on domestic sourcing strategy, for instance, Ezra, Benton and Marks & Spencer.They held the view that ‘market legibility and lean inventories may be more important than cheap labor' (Tokomak 2008). However, could efficiency really overcome the lost in higher production cost? Maybe no one could answer this question. If we take Ezra as an example and find out where Ezra produce the products, we could develop our own view. As a Spanish company owned by Inedited, Ezra produce its products mainly in Spain and Portugal (Wood 2010). Whereas their competitor found suppliers from worldwide low-cost countries, Ezra choose to produce products near its domestic market.That maximizes time efficiency. In fact, the unit labor costs in these two countries were low enough in the sass (Tokomak 2008), therefore, there is no need for Ezra to outsource its productions to other locations. It has the similar competitive advantage as other companies have, besides, by domestic sourcing and producing Just-in-time, Sara's production cycles are much faster than its competitors. In this respect, it is better for Ezra to adopt the domestic sourcing strategy. However, recent years, the geography of Sara's production network has become diverse.Ezra started to outsource and 34 percent of its production was carried out in Asia (Dickens 2011). Similar situation have also occurred in Benton and Marks & Spencer. On one hand, the unit labor cost among European countries has increased in recent years. On the other hand, the supplier firms in countries like Turkey, India and Asia have gained the ability to meet the higher requirement of flexibility and speed. It is inevitable for fast fashion retailers sourcing from these countries. However, companies should also be aware of the potential risks and hidden cost brought by overseas sourcing.Global sourcing strategy requires close coordination of R&D, manufacturing, and marketing activities on a global basis. Managing geographically separated R&D, manufacturing, and marketing activities, those companies face difficult coordination problems of integrating operations and adapting them to different legal, political, and cultural environments in different countries (Daniels et al 2013). Furthermore, separation of manufacturing activities involves an inherent risk that manufacturing in the value chain will gradually becomes neglected.Such neglect can be costly as continued involvement in manufacturing tends to lead to pioneering product design and innovation over time. An effective global sourcing strategy calls for continual forts to streamline manufacturing without sacrificing marketing flexibility. 3. Time, the growing consideration. With the wide spread of fast fashion' principle, fast fashion retailers are aware of the importance of efficiency. They notice that consumer demand is changing more rapidly and customers more discerning about quality and choice.Although a substan tial cost advantage can be gained by adopting overseas sourcing strategy, it cannot compress time in the supply system. To solve this problem, companies tend to choose the quick response strategy, which focuses on providing shorter lead times. According to Bristle et al (2003), quick response strategy was first developed as a result of the need to compete with offshore manufacturers in the USA. The quick response strategy emphasizes on flexibility and product velocity and relies on a measure of trust in sharing information (Barnes and Lea-Greenwood 2006 p. 63). In addition, while maximizing the diversity of products, quick response could minimize lead-times, expenditure, cost and stock of inventory. Quick response is not merely about reducing lead-time by the use of domestic or nearby sourcing strategy, it also involves the ability to gather latest information and use real-time data to understand the needs of the consumers. To some extent, quick response help to shorten the product cycle times and decrease risks and inventories at each stage of manufacturing and retailing operations.The Spanish Ezra, as mentioned before, is ‘an excellent example of a vertically integrated retailer using quick response methods' (Bristle et al 2003). Despite successful application of the concept â€Å"fast fashion† in H;M and Top Shop, Ezra utilizes the â€Å"fast fashion† strategy in all aspects dominant, fast fashion in Ezra meaner, within only two weeks from concept to sales faster than any other company. Unlike most of its competitors, Ezra still produces most of the products in Spain and Portugal and only outsource basic items in lower cost countries.By adopting quick response strategy, Ezra focused on creating a short, flexible, tight and innovative supply chain and tried to balance the higher labor cost by shorter (3-6 weeks) lead times. As a result, Sara's short deliveries have made it ‘as much as 12 times faster than the competition' (Newsweek 2001, p. 36, cited in Tokomak 2008, p. 30). Ezra launches almost 11000 new products in a year, which meaner the update speed is about two or three times a week. In 2005, sales grew by 21 percent over the prior fiscal year in Ezra, which makes Inedited ahead of H&M for the first time (Daniel et al 2013).The good result indicates that domestic sourcing still works as long as the company finds out a way to compensate for the losses in production cost. Having witnessed the successful experience of Ezra, competitors started to follow the lead of Ezra. For instance, Benton now replenishes stores once a week, Forever 21 Inc. And Unique are able to get new products in store thin 6 weeks (Ordered and Johnson 2008). Another example that worth to be mentioned is the Next brand in the ELK. Base on the quick response strategy, the company uses a limited edition approach to accelerate the update speed.Moreover, in order to respond to the changes in demand as soon as possible, next has even purcha sed part of a multi-national clothing supplier to enable constantly changing ranges by reducing lead time (Bristle et al 2003). As we can learn from the case studies, time becomes a priority consideration in the fashion market. The adoption of quick response method should be able to make manufacturer to ‘adjust the reduction of different styles, colors and sizes in response to retail sales during the season' (Seen 2007). 4.Comparison between overseas sourcing strategy and quick response strategy One of the biggest differences is that overseas sourcing strategy uses cost as a competitive weapon while quick response strategy uses time. As we known, both cost and time are the keys for retailers to gain more market share and profit; The dilemma for fast fashion companies is: Whether fashion retailers should outsource production overseas for lower production cost or keep manufacturing nearby to facilitate speed. As highlighted earlier, the fashion market is volatile and unpredictab le.Quick response strategy emerges in such an environment. Compared to overseas sourcing strategy, which faces long transport times and difficulty in controlling over production, quick response strategy enables retailers to cope with uncertainty or changes in the fashion market. On the other hand, although domestic sourcing provides companies from paying for higher logistic cost and other hidden costs, offshore sourcing secures lower cost inputs, (Christopher et al 2004). It is argued that fast fashion companies need to adopt strategies that optimally mix overseas sourcing ND quick response to win the market.The changes occurred in Marks & Spencer over these years could help us understand the advantages and disadvantages of both strategies. As a major British retailer, it chooses to use local suppliers for decades. However, in face of the downward pressure on price, it abandoned its domestic sourcing strategy and started to relocate production overseas (Christopher et al 2006). Acco rdingly, the average hourly labor cost in the I-J is nine times higher than in Morocco and even nineteen times higher than in China, Pakistan and Indonesia.After adopting oversea suppliers, Marks & Spencer on noticed that they overlooked the related problems, such as the cost of transportation, the need to forecast styles, colors and volumes in advance and the risk of stock inventory. Facing the challenge of adopting global sourcing, Marks & Spencer tend to use â€Å"dual supply chains†. By combing global sourcing strategy and quick response strategy, â€Å"fashionable items† are manufactured in locations with a journey time no more than four days.For â€Å"basic items†, for which demand is easier to be predicted, Marks & Spencer continue producing them in lower cost locations (Christopher et al 2006). Likewise, Ezra has also adopted both strategies for its supply chain. Today, price is no longer the determined factor that concerned by customers. Many companies consider not simply price but also quality, reliability, and technology of components and products to be procured. These companies design their sourcing decision on the basis of the interplay between their competitive advantages and the comparative advantages of various sourcing locations for long-term gains.By contrast, they care more about the quality, design and the level of popularity. Therefore, companies have to find the balance between cost and time. If fast fashion tillers make good use of these two strategies, like M&S and Ezra did, the negative effect could be covered to a large extent. Conclusion Volatile markets, short product lifestyles and high product variety are the characteristics of today are clothing industry. This essay mainly discusses the adoption of two common strategies- global sourcing strategy and quick response strategy, in fast fashion clothing sector.Although most companies already have chosen outsourcing strategy to maintain the competitive advantage, t he nature of today's fashion market forces companies to consider the importance of speed and flexibility. The analysis of both strategies with the help of real companies' experience shows that both of them have positive and negative effects on fast fashion retailers. However, overseas sourcing strategy and quick response strategy are not mutually exclusive. In practice, the successful examples of M&S and Ezra have proved the feasibility of combing global sourcing with quick response strategy.

Biochip microfludic vortex chamber Essay Example | Topics and Well Written Essays - 4250 words

Biochip microfludic vortex chamber - Essay Example These modules deal with movement of fluid in biochip microfluidic vortex chamber, the diffusion and concentration with time of fluid also the electric conductivity between electrodes in chamber. We also illustrate fluid flow in the media channel and the vortex. Biotechnology has emerged as a new technology which can assist in production or modification of molecules and cells, and development of new and useful products, processes, or services. During the process, it is important to study the reactions that occur in the cells leading to desired changes. These reactions or properties can be studied by changing the physical and chemical environment using biochip microfluidic. Microfluidic biochips have revolutionised the clinical diagnosis, DNA Sequence, and other procedures involving molecular biology. Development in this technology has opened further avenues for enzymatic and DNA analysis, including the analysis of proteins and protein peptides, immune, drug delivery implant devices, and environmental monitoring and toxicity assessment (Chakrabarty & Zeng, 2005). With further experimentation and usage of biochips, integration and complexity of design systems is expected to rise dramatically. For the purpose of this paper, a circular vortex chamber is used which opens into an outlet into a media channel. Opposite to the outlet channel, there is an opening for a control inlet. Cells are pushed into the vortex chamber through the control inlet while keeping the outlet closed. Once the cells are in the chamber, the inlet can be closed, the outlet opened and fluid can be passed through the media channel. As the fluid is passing, the cells in the chamber start to circulate. Two-way diffusion takes place between the chemical species in the circulating fluid inside the vortex and the fluid in the media channel. However, owing to negligible diffusion rates, very little movement takes place from the

Globalization at General Electric Research Paper

Globalization at General Electric - Research Paper Example Therefore, the aim of this report is to analyze international process at GE and the lessons which the globalization at GE has provided to entrepreneurs and managers. The current Chairman and Chief Executive Officer of GE is Jeffrey Immelt. Moreover, GE has presence in 160 countries of the world and total number of employed people at GE on December 2009 was 304,000. The company holds 2370 filed patents and in 2009, total $5.2 billion were spent in Research and Development (General Electric, 2010). This shows that GE is investing huge amount on its research and development. The company is offering a huge product range and services. Currently, GE is offering products and services related to Appliances, Aviation, Consumer Products, Electrical Distribution, Energy Products, Finance and Business Products, Health Care, Lighting, Media and Entertainment, Oil & Gas, Rail, Software & Services and Water (General Electric, 2010). The major reason because of which GE invested aggressively in foreign expansion was the primary aim of existence of the organization. All leaders of the company have been envisioning huge goals for GE. GE adopted a huge international diversification strategy as it is evident from electronic products to financial services and television broadcasting. GE goal was to become number one or two globally in all the businesses in which it was participating and to attain this goal, foreign direct investment strategy was adopted. After pursuing international expansion strategy, the second aim was to make GE a truly global company because it was still very much an American company doing business abroad. For example, domestic revenues were still higher than international revenues. To make GE a truly global company, Immelt focused on shifting centre of gravity and brought changes in the way GE was organized and operated. For example company moved its headquarters in 2008 for GE Money to London. Another

Political science Essay Example | Topics and Well Written Essays - 750 words - 12

Political science - Essay Example Foreign policy refers to considerations of government made so as to achieve simultaneously national and international objectives (Trubowitz 90). The world as it is today has become extremely globalized and interdependent. Decisions at one end of the world elicit consequences and reactions in another part of the world. Consequently, nations of the world are compelled to subject their national choice of policies to a test of its effects to the rest of the world through the foreign policy. The policies govern their relations and mode of operation with other nationalities. Foreign policy ensures determines the political relations between two nations and subsequently, their economic impact. Bureaucracy in its simplest form is a rigid administrative policy-making group that is often not elected. A bureaucracy has a fixed way of doing things and does not accommodate change with ease (Ginsberg et al. 48). Bureaucrats are rampant in all government agencies and are, in fact, the way the government executes its roles. The inherent inflexibility attracts criticism as it causes management inefficiency and time wastage. As a matter of fact, modern theories of management have focused a lot of attention on the ways to eliminate bureaucracies. For large organizations, however, it is not possible to maintain order and coordinated workflow without bureaucracy One of the greatest challenges of foreign policy, today is striking a balance between national objectives and international goals (Trubowitz 68). More often than not, these two objectives are in conflict, and the differences are quite irreconcilable. A decision to favor the citizens of one country is a decision to predispose the fate of individuals of another country to doom. But the f have to pursue the objectives that best suit the citizens of their country. A recent case in hand is the stalemate created between the governments of UK, Australia, and Kenya. The two European nations

Yellow Womanand Hills Like White Elephants Essay

Yellow Womanand Hills Like White Elephants - Essay Example Leslie Silko, in her short story, â€Å"Yellow Woman†, has tried to explore boundaries between tradition and modernity, and between myth and reality. The narrator is a young, married woman, who enjoys a brief affair with a strange man named Silva in a faraway place near the waters. The myth of the Yellow Woman and the katsina spirit of the mountain is brought into question, as Silva calls her his Yellow Woman, luring her into going with him. When the woman returns to her home in Peublo, she finds herself meeting the reality, but she still waits for Silva to return to her one day and take her with him, like the katsina spirit of the mountain took the Yellow Woman with him. Silko has described how the modern day woman is in search of her sexual and gender identity, and how she uses her imagination to feel in love with a man dominating her, as we read, â€Å"You don’t understand, do you, little Yellow Woman? You will do what I want,† says Silva to her (Silko 370). T he woman is in search of a man who loves her, but comes back to reality much sooner than she realizes that it is all over. Earnest Hemingway, in the short story â€Å"Hills Like White Elephants†, has also made use of symbolism, like Silko did in her story. Silko symbolized the modern woman with the Yellow Woman, and the stranger named Silva with the katsina spirit. Likewise, Hemingway symbolizes the mountains with elephants. For the heroin of the story, Jig, mountains seemed like white elephants, slow and stable. She wanted to have the child so that her stable married life could start. The man did not want the child, as for him, life would become slow and stagnant just like the mountains. Jig was in search of her new identity as a mother, and the man wanted to reject this new identity by having the child aborted. Hence, we see that the two characters are faced with the dilemma of either choosing or rejecting their new identities as parents. But, Jig admitted to the man’s idea of abortion because

Cyber Security Policy Initiatives Research Paper

Cyber Security Policy Initiatives - Research Paper Example Consumers feel safe and secure when knowing that their communication channel is private and in case there is even a slight possibility of it being penetrated, how easily and quickly can it be accessed by attackers. Furthermore, they can demand to know if their identities are kept confidential in records and reports, that is to say, whether any information that could reveal who they are has been omitted. This is a logical approach by any concerned entity and should be demanded without any hesitation. Additionally, they should also be aware whether it is possible for outsiders to find messages from persons or groups by using simple internet searches. If someone finds out that their information that was supposedly given to a certain organization under the pretense of it staying confidential ends up online somewhere, that will be a big blow and can tarnish that company’s confidentiality reputation for good. All information that is given out to the trusted sources must be handled w ith extreme care and utmost alertness at all times so that no person is left unsatisfied and can feel safe giving out his/her confidential information (Powner, 2010).Integrity demands that information provided by companies should be authentic and complete. Since the general public gets involved in dealings with them, companies cannot face the impacts of scandals or shame. Once reputations are blemished in the cyber world, companies have rarely been known to completely come back from them and stand on former grounds.

An analytical report on a organisation Essay Example | Topics and Well Written Essays - 1500 words

An analytical report on a organisation - Essay Example Sainsbury is the second biggest supermarket chain in the UK and commands a market share of about seventeen percent of the supermarket sector (Martin and Hetrick, 2006, p. 222). John James Sainsbury established it in 1869 as a shop in London and it grew to become the biggest retailer of groceries in 1922 while pioneering the self-service retail approach in the UK and having its heydays in the eighties (McLoughlin and Aaker, 2010, p. 129). However, Tesco overtook the company in 1995 as the market leader, with Asda becoming the second biggest in 2003, therefore relegating Sainsbury to third. J Sainsbury PLC, which is a holding company, is divided into three divisions that include supermarkets, convenience stores and the Sainsbury Bank. The headquarters of the holding company are located in the Store Support Centre of the company in Holborn Circus and the group is also interested in the property. The biggest overall shareholder of the company is Qatar’s sovereign wealth fund, hold ing almost twenty-six percent of the company, which is also listed in the London Stock Exchange. Sainsbury operates a variety of store formats that are intended to meet particular requirements of the customers and locations (Schnedlitz, 2010, p. 154). It also has online operations were groceries as well as non-food sales continue to increase, especially after the introduction of the Click and Collect service that enables customers to freely pick the non-food products they order online at stores that are convenient to them and this has demonstrated to be extremely popular with most of the customers. The company has a considerable portfolio that includes buildings and long leasehold properties as well as property that exists in joint venture engagements. The Sainsbury Bank deals with a variety of quality products such savings and loans, insurances and credit cards. Additionally, it provides the customer with quality products at good prices while regularly rewarding

Importance of following orders Essay Example | Topics and Well Written Essays - 500 words

Importance of following orders - Essay Example A combat becomes ineffective whenever a soldier fails to follow the orders given to him/her. Whenever a single unit’s soldier is not combat effective, he will end up slowing down the combat’s winning formula by forcing the commanders to focus on a single soldier who is not offering anything to the workload that is facing the unit. By executing the orders in time and in the manner that is acceptable, one greatly helps in the unit even if he doesn’t know the reason why as everyone is important in making the mission at hand a success. Un-questionably following orders is how the military regard discipline. One is expected to know what they have to do at the same time follow commands and directions enthusiastically and promptly. For one to follow orders effectively, it is very important for one to be disciplined as you it enables you to react in a manner that is fast enough whenever your service is called upon. This will really help in raising a soldiers awareness level as a soldier should be alert at all times. Following orders enables an individual to becoming a good soldier. A good soldier is one who takes an order and carries it out the way it has been given no matter how bad or hard it is to follow that particular order. There are many reasons as to why it is important to follow orders and all of them are important, but in this essay I have only looked at the main ones. Whenever a soldier does not follow the authoritative directions given by his senior, it does not hurt him/her alone as an individual, but the whole combat team and the mission’s goals. Whenever the objectives of a mission get hurt by failing to follow orders as expected, everything that is important in completing the mission becomes weak. This also affects the moral of the entire unit as the leadership will be at a constant worry about the loyalty of the solder who does not follow their orders. They are never relaxed as they wonder if he/she is going to do

Language Development Essay Example | Topics and Well Written Essays - 750 words

Language Development - Essay Example ing process, the young, impressionable children not only learned the three R’s, but also developed holistic personalities, by internalizing knowledge into awareness, wisdom, rigorous denial and self-discipline. The Gurus not only taught them the Holy Scriptures, but also the manner of living and leading virtuous, noble and beneficial lives. This process ensured that the children became worthy citizens in their later lives. When the learning environment in the house is conducive to studying, and the parents of the child are themselves well educated, the child would be in a position to imbibe the teachings of the parents quickly and learn fast. Similarly, the child’s friends and neighbours also play a very important part since the influence of the friends and relatives with whom the child is interacting plays an important role in moulding his future personality. If the friends and neighbours are well-trained and intelligent children, coming from respectable and well- to-do families, it will be seen that the child would be able to pick up good learning habits from early years itself, which would sustain him in his later life. The formative years of the child, that is the period between 4 – 12 years are very crucial for the child, and whatever good inputs and reading habits are acquired by the child would stand him in later life including his learning habits and writing skills. Thus, it is s een that the situations that foster early language developments could be seen in terms of the parental influence, including that of early teachers, governesses, friends and relatives. If these were well attuned to nurturing and nourishing the child’s natural curiosity, forming good learning and reading habits, it would foster his language skills. Moreover, it is also necessary to build good reading, writing and recitation skills that could be â€Å"validated by research and practice while delivering the basis of all major aspects of research work.† (Gunning,

Importance of “patriotism” during war Essay Example for Free

Importance of â€Å"patriotism† during war Essay Wilfred Owen in his poem â€Å"Asleep† and Andrew Hudgins in his poem â€Å"Listen? The Flies† have analyzed the concepts of death, war and violence. Even though both poets experienced the military actions themselves, they did not describe the life of soldiers and the philosophy of war from the patriotic point of view. On the contrary, in their poems Owen and Hudgins illustrated the most horrible scenes of war that emphasize that war can never be justified because it destroys human life and brings physical and moral sufferings. Both poets portray death as the only way out for soldiers, express compassion towards soldiers as the greatest victims of war and describe low importance of human life as the result of military actions in order to disprove the idea of patriotism that plays upon the mind of soldiers and exploits them for the mercenary interests of their governors. First, Andrew Hudgins and Wilfred Owen justify death to some extent because it rescues soldiers from anger of war and occurs as the natural process unlike war that goes against all moral laws.   When Hudgins talks about war in his poem he describes human life as purity that was shaded by war and turned into putrefaction: â€Å"everything that lives is pitched from purity to putrefaction, back and forth†.   At the same time Wilfred Owen, uses comparison in order to show that death becomes more pleasant than life during war. He compares death to the deep sleep: â€Å"his deeper sleep lies shaded by the shaking of great wings, and the thoughts that hung the stars.† The soldier in the poem has finally got a chance to have some rest after long days of battle. The main characters of both poems are not afraid of death and to some extent they accept it because even death cannot be more frightful than war. Thus, in the poem â€Å"Asleep† Wilfred Owen describes the soldier who does not suffer in his dead sleep because he is â€Å"above these clouds, these rains, these sleets of lead†, above all severe weather conditions, constant attacks and stress from killing and being killed. Moreover, those soldiers who are still alive envy the dead soldier that does not have to wake up in the morning and see the horrors of war again. Similar to Wilfred Owen, Andrew Hudgins refers to Bible to justify death. He uses allusion and gives quotes from the Bible to show that death is more natural for a soldier than war: â€Å"from ash to ash, it says, from dust to dust, with fire and dirty water in between†. Hudgins depicts how soldiers were waiting for death in prison camps praising the flies. The flies are symbols of death that is always near. In the last part of the poem the author killed a fly that got in his room but he knows that there will be more flies in the future. The main character of the poem does not see any point in struggling for life because it’s easier to accept death that is unavoidable during war.   Thus, according to both authors, the horrors of war lead to the condition when death becomes a happy end for a soldier because it sets him free from all the hardships that he has to go through during war and it can be explained by laws of nature. Second, the authors stress the cruelty of military actions by describing the dead soldiers as the greatest victims of war and showing their compassion for them. The length and the concentration of events in both poems are the brightest indication of the authors’ ability to awaken in the mind of readers the same kind of sympathy that both poets have for their characters. The length of the both poems does not let the reader to remain indifferent to the events which take place and arouses the feelings of grief, horror and deep sorrow in the reader’s mind. Thus, the poem of Wilfred Owen is short that enables us to read it at one sitting at the highest degree of excitement. The phrases in the poem â€Å"Asleep† are abrupt that turns the reading into the process when there is a minute to think and move to the next line. The poem by Andrew Hudgins is longer; however, most of the sentences are short and it provokes the reader to pay attention to every detail and not to leave anything without attention. All events which occur in the poem â€Å"Asleep† are concentrated in one place during certain time interval; at the same time in the poem â€Å"Listen? The Flies† the author tells about events which happened in different places during different periods of time. The concentration of time and place in the poem by Wilfred Owen is used because the author wants stay-at-home citizens to be carried to the battle field for a moment, experience what the soldiers experience every day and see the â€Å"backstage† and the reality of war. Lack of focus on time and place in the poem by Andrew Hudgins makes the reader see the war from the different standpoints and contemplate more about the meaning of life. Thus, at the beginning Hudgins describes how he noticed the body of the dead soldier, and then he points out that death took away many people in prison camps, after that he explains death using quotes from Bible and at the end he goes back to the symbolic scene with the flies. Third, both authors illustrate that military victory and destruction of enemies during war have higher importance than life of a person. The soldiers in both poems are described as some human bodies without soul rather than as human beings. In the poem â€Å"Asleep† no one notices the dead soldier; his head â€Å"confuses more and more with the low mould† and his hair becomes of the same color â€Å"with the grey grass of finished fields†.   It seems like the soldier is the machine that is out of order. Andrew Hudgins describes with certain irony the scene when the soldiers â€Å"walked the marsh† and sang the patriotic song; however, their friend was dead. The author portrays how someone’s death can be neglected because patriotic idea supported by political and economic interests plays more important role.   The dead soldiers are heroes because they were killed for their country. However, the question remains whether the interests that they defend are the interests of people or the interests of politicians. Both poems lead us to the conclusion that the consequences of patriotism are death and emotional breakdown. The poets used different techniques to emphasize that the glorious idea of military patriotism is based on political ambitions and soldiers are only instruments. The romantic beliefs about nobility of military actions made both characters of the poems the victims of war whose life lost its value and death became the answer to sufferings and hardships.

Why Smes Sometimes Face Difficulties In Raising Finance Finance Essay

Why Smes Sometimes Face Difficulties In Raising Finance Finance Essay Due to the establish of modern enterprise system and thoroughly in structural reforms of market economy, there are lot of opportunities contained in the market, but it is also existing many unexpected risks, particularly for the small to medium-sized enterprise (SMEs) which has limited resources to resist in this treacherous environment. To survive and adapts to the environment for a SME is to maintain its advantage in meticulous daily management and even more important is to have a long-term view strategic thinking especially in financial strategy. A good finance strategy can help SME to set up and expand their operations, development and also investment (OECD, 2006), further to get funds which make them competitively and can get well results they desired (Park, 2010). Making a finance strategy is very significant to a company; company has to consider both of internal condition and external environment problem and even more factors which are related to company. However, the SME has its particular characteristic, it is not suitable to adopt the same action with a large company; they better to create a strategy which fits to the company according to its demand. Finding a proper financial strategy for a developing SME, not only can help SME to reinforce its essence, the more important is the sustainability of its development. Define company There is no accurate definition for small to medium-sized enterprise (SMEs) and most of countries define it according to specific condition by their way. Nevertheless, there are some particular characteristics (Bank of England, 2001 Brookfield, 2001) about SMEs and they are: The enterprises are not quoted Ownership is often connected between family and shareholder and the business is typically restricted to few individuals. Most of SMEs are small groups business and always achieve self-employment effectively. In the past, the definition for SMEs from European Commission was unequivocal, it was defined by individual country, for instance, Germany regulated the amount of employee under 250 was part of SME, but in Belgium, the number was became 100. However, in the recent years, the data from European Commission shows that the definition has adjusted and is qualified as a SME by some criteria (see figure 1-1) (European Commission, 2010) in headcount, turnover and balance sheet total. definition of SME.JPG Figure 1-1 the definition of a small firm from European Commission Importance of finance Nowadays, the enterprises finance is facing a dynamic, diversification and complicated managing environment. Managing finance is not only to provide a specific method or device for a firm; it is to assimilate the principle and manner from strategic management. Start from the view of adapting to the environment and using the vantage, to pay much attention in financial long-term problem and strategic problem. In the situation of lacking of the resources for SME, to create a suitable financial strategic and well dominate the limited resource is significant since a better financial systems can help to improve the probability of successful innovation and bring accelerate economic growth. (King, et al., 1993) The focus of enterprises financial strategy is the basic path on future development, goal and goal accomplishment for the financial action; this is the difference between financial strategy and other strategies. The master objective of enterprises financial strategy is reasonably to assemble, dominate and use its resources, tend to balance and flow enterprises capital, also to build the core competitive strength and to achieve the maximization of enterprise value in the end. Some aspects of this goal are related/ connected to each other; from the view of a long-term performance, to seek the enterprises sustainability growth in financial resource and capability, and furthermore to accomplish the rising of enterprises capital value and make enterprises financial capability can sustained, quick and healthily increase, conduce to maintain and develop enterprises competitive advantage. While enterprise building the core competitive strength for their strategic management, they need the support from financial management. The financial management which treats capital management as a significant content, it needs to express the requirement for enterprises strategy and to guarantee its practice. The value of practicing the financial strategy is to retain a health condition in enterprises finance and also effectively in controlling the financial risk. There are twelve types of financing and growth in SMEs and it can be very usefully and provided a great help if it is supplied properly according to SMEs particular requirement (Brookfield, 2001). Initial owner financing (Equity finance) Business angel financing Trade credit Leasing Factoring Venture capital Short-term bank loans (Debt finance) Medium term bank loans Mezzanine finance Private placements Public equity Public debt A company should manage its financing structure in a way that its debt and equity are in balanced manner. This fact helps company to avoid insolvency. Excess of either debt or finance could result in loss of wealth. I will be explaining some of the important methods of financing in following section. Equity finance Equity financing is that the shareholder sells the part of corporate control to introduce the new shareholder by raising the capital (Watson, et al., 2007). The enterprise does not need to pay the interest on principal if the capital is received from equity financing and the new shareholder can share the profit from enterprise as well. Equity financing includes stock issuance, allotment and debt for equity swap. Some features of equity financing, are: Stock equity is firms first right of its property, it is the base for enterprise to absorb the civil liability and to responsibility for firms own profits and losses; furthermore, it is also the base for investor to control the enterprise and to distribute the profit. Equity financing is the base of deciding an enterprise to the outward debt. Certainly, there are some advantages of equity financing that help enterprise in investment and management. Equity financing builds a good system in corporate governance structure, which consists of shareholders meeting, board of directors, Board of supervisors and executives. It is effectively in decreasing the risk of management. In the modern finance theory, stock market is also called open market; it means that the standardization financial products are dealing in a trading area with an extensively institutionalization. It has its criterion and processes it in the condition of information revelation and fare dealing. In financial translation, the more important is publicity and availability of information; and that is why the stock market is better than loan market in both competitiveness of capital price and publicity of information. Venture capital Venture capital is the fund which is collected by private placement and set as the type of organization; invest to unlisted small and medium-sized newly emerging enterprises and in the capital type of both high risk and high reciprocation. Venture capital is different from mutual fund, unit trust and securities investment fund; it has its features in operating of investment and collection, such as, Venture capital absorbs the venture with enterprise; the venture capitalist needs to cooperate closely with entrepreneur and help the firm to make a plan. Management is part of investment. Venture capital is an investment in long-term and poor flowability; venture capitalist and entrepreneur become a common destiny once they invest. Venture capital is high risk and requires the venture capitalist with specialized skill, and need to achieve specialization and programmed in choosing the project, tend to avoid the risk. Before inspect the financial index, the venture capitalist pays more attention in market prospect, development strategy and managing quality. Sharing the bonus from enterprise is not the purpose of venture capital, they make it as a return by increasing the capital when they are exiting; the time for exiting is always when go on public or sell it. Debt finance Debt financing is also called bond financing, it is the way which the firm can raise money for enterprises external finance; and debt can also be conducted and fitted to the requirement of issuing companies and investors (Watson, et al., 2007). It is included long-term bank loans, short-term financing (such as bills, debt receivable, and letter of credit), enterprise Bond and short-term financial bonds, also long-term bond financing, finance lease, discount government loans, government loan, Loans from international financial organizations and private bond fund. The first expense enterprise needs to pay is the interest of capital which receives from debt financing and the principal on the debt will be paid to creditor at maturity (Davis, et al., 1994). The feature of purpose for debt financing is to solve the problem of deficiency in working capital rather than the expenditure under the capital account. Debt financing can be described by two features, The received capital from debt financing is only for using, it is not the property of the enterprise, and the firm needs to pay interest and the principal is repayable. Compare to equity financing, except some specific situations that debt financing may bring creditor the problem of intervention or controlling, otherwise it is barely to have the problem of corporate control. However, debt financing has its advantage for helping the firm in investment and management, The lenders have ability to collect and analyze the states of investment, also can have long-term investigate and oversee the enterprise to avoid the moral hazard. The function of the creditors right is when firm can pay off the debt, the firm will hold the corporate control, whereas of the enterprise cannot offer the debt, the corporate control will be turned to lender. Why do SMEs find financing a problem? Due to SMEs small size capital, the capability for defending the market risk is not as strong as a large firm, plus a faulty finance system, it causes the problem into SMEs finance management (Pissarides, 1999). The main reasons and problem are: No criterion in SMEs finance accounting system In application of finance system in SME exist some problems, which make loose financial control. A loose inventory control can lead to the stagnation of capital and excessive final inventory; the capital of final inventory always in a high proportion if compare to sale revenue. The firm usually loses a large number of assets due to focus on capital much more than assets and even wastes it seriously; moreover, to control the finished products, semi-manufactured goods and low-value expendable without a faultless system. It is negligent in managing the cash and weakness in debt receivable Some of enterprises think that it is good to hold cash (including bank deposit), and better to have more; the proportion of reserve is too high, it makes lot of capital cannot really run in operation, and also causes the capital idleness. In addition, some firms invest too much in real estate and lead to finance difficulty due to could not handle the emergent need of management. Also deficiency in managing working capital creates problems problem capital withdrawal. Difficulty in funding, the capital is insufficient It is not easy to run the SME in a practically environment, especially the unequal treatment in funding between SME and larger enterprise. The banks are not willing to loan to them, particularly the difficulty in guarantee and lack of the specialized agency to offer the assurance service is still the main problem for SME and it obviously happens in some huge investments. Unrestraint in investment The SME is lacking of the ability to analyze the investment accurately and to evaluate the effectiveness of operating the capital. The majority of investment in SME is from banking, due to the respectability of a SME is not as high as a large company, it is an obstacle in attracting the banking to invest or loan to the SME. The mode of management is backward Most of SME is running the business as a family workshop; they are operation the management in a backward way and an old-fashioned thinking way, do not understand and even not willing to understand or learn the modern financial management. The proprietor always treats the enterprise as an extension of familys property; in order to control the business entirely without decentralize the ownership, it causes the lost of the opportunities in growing. Conclusion SMEs play an important role in the general macroeconomic environment, and provide the enormous opportunities for employment. However, due to the small size and limited source, usually SMEs has to face to the challenge in financing problem. For solving the problem, the major impact is from government and the law (Industrial Systems Research). In existing policy has to be adjusted by government; the government needs to reinforce the related law and regulation to implement SMEs development strategy and preferential clause. Furthermore, have to set up the institution for managing and supporting SMEs development. To increase the method for financing; SMEs need to respect the debt from bank and to pay back the debt on time; then to healthy the internal system and raise the handling of material. Lastly, to improve accountants structure and criterion of financial management; enhance the punishment for the illegality to makes they pay attention in financial system.

The general concept of contemporary strategic procurement

The general concept of contemporary strategic procurement This research paper introduces the general concept of contemporary strategic procurement and some of contemporary strategic procurement issues, including services procurement, corporate social responsibility, procurement in merging market, ethics in procurement. But this research paper focuses on such issues as sustainable procurement including its benefits and some main environmental issues that should be taken into account in the procurement activity, based on a global mining organization, Rio Tinto Group. Those main environmental issues mentioned in this research paper refer to climate change and greenhouse gas emission. Next, it is discussed that how to implement the sustainable procurement strategy and it takes Rio Tinto Group as an example. Later in the research paper it is discussed an important question that is why it is critical for mining organization to be sensitive to sustainability and from three respects including resource scarcity, environmental impact, and supplier se lection. At last, it is showed that a critical market mechanism, carbon emission trading, which is a hot topic with the development of sustainable economy. It is on the purpose of achieving greenhouse gas emission reduction. Introduction In recent years, corporations are in the intense global competition. It is evident that it is hard for company to remain its competitive advantage just by production and sales. Nowadays, increasingly more organizations view procurement as a critical source for improving the competitive advantage. However, the conventional procurement is lacking of explicit procurement strategy, whats more, is neglecting to form the long-term relationships with the supplier. Facing with all kinds of development tendency affects procurement prospective, companies are demanded to pay close attention to the strategic procurement. What is strategic procurement? To begin with, strategic procurement is the procurement which distinguishes from the conventional procurement that focuses on purchasing items at a possible lowest price. In other words, strategic procurement concentrates on total cost ownership (TCO), namely, life cycle cost (LCC). Secondly, strategic procurement is that through advanced planning, scheduling, and team purchasing initiatives as well, a company can achieve effective cost reduction. Apart from hard dollar savings, there will be additional savings generated through a more efficient business operations and hence increased profitability. In the case of resource limitation of a corporation, explicitly understand internal demand and external supply, supplier capacity and market condition, in order to manage the relationships with suppliers effectively and efficiently and to establish the long-term strategic partnerships with suppliers. By means of strategic procurement, it enables company to be aware of its type of internal demand more explicitly so as to make control of the demand. In once sense, through some valuable analysis an organization can make clearer of the production process of supplier and cost structure even than the supplier, and these analysis also supports the organization in terms of supplier selection, negotiation, supplier relationships management and so on. Therefore, the organization can give up supplier who doesnt meet requirements, moreover, look for the new substitute to improve the holistic level of supplier. When it comes to the critical principles of strategic procurement, the lowest acquisition cost, win-win strategic partnership, integrated purchasing capability and so on should be taken into account. With the development of contemporary strategic procurement, it indicates a host of strategic procurement issues such as services procurement, corporate social responsibility, procurement in merging market, ethics in procurement. This research paper focuses on sustainable procurement and some environmental issues like carbon emission and climate change, with Rio Tinto Group which is a world leader in finding, mining and processing the earths mineral products include aluminum, copper, diamonds, gold, and energy products such as coal and uranium, and industrial minerals like borax, titanium dioxide, salt, talc, zircon, a nd iron ore. As we know, sustainability is one of the hottest topics people talk about in this modern society. Sustainability is the capacity to endure. For human beings, sustainability is the potential for long-term maintenance of wellbeing, which has environmental, economic, and social dimensions. Another word which is also mentioned is sustainable development. Sustainable development is a pattern of resource use that aims to meet human needs while preserving the environment so that these needs can be met not only in the present, but also for generations to come. In the concept of business, sustainable procurement, also called green procurement, is a spending and investment process typically associated with public policy, although it is equally applicable to the private sector. Sustainable procurement broadens the framework of procurement which has historically been based on two criteria, price and quality. It takes account of third-party consequences of procurement decisions, forming a triple baseline of external concerns which the buying organization must fulfill. There are two essential parts in terms of sustainable procurement. First part is to purchase raw materials and/or products to meet the current customers needs and/or to meet the requirements of production to fulfill current customers demands. Second part is to preserve the ability of the coming generations to meet their needs. Sustainable procurement encompasses all issues where procurement is seen as having a role in delivering economic, social and environmental policy objectives. Specifically speaking, sustainable procurement means that when buying goods and services, some consideration needs to be taken into account. For instance, avoid unnecessary consumption and manage demand; minimize environmental impacts of the goods and services over the whole-of-life of the goods and services; consider suppliers socially responsible practices including compliance with legislative obligations to employees and value fo r money over the whole-of-life of the goods and services rather than just initial cost. In addition, use sustainable or recycled materials and/or products; consider the availability of the product. Organizations practicing sustainable procurement meet their needs for goods, services, utilities and works not only on a private cost-benefit analysis, but also to society and the economy, whilst minimizing damage to the environment. Sustainability can be incorporated into the whole procurement process: defining the need, evaluating options, design and specifying, supplier selection, tender evaluation, post-contract management and supplier development. It has been already integrated within the mainstream of procurement policy and practice. If the mining industry is to retain its access to resources, it must understand the sustainability better. Thus, it can continuously improve its performance and succeed in restoring public trust. How significant is sustainable procurement? To begin with, there are a number of environmental issues with mining organizations including Rio Tinto. Environmental issues can include climate change, loss of biodiversity, and contamination of soil, groundwater and surface water. In particular, that people pay more attention is climate change which is a hot topic of discussion worldwide. In recent usage, especially in the context of environmental policy, climate change usually refers to changes in modern climate. It may be qualified as anthropogenic climate change, more generally known as global warming or anthropogenic global warming. Global warming is the increase in the average temperature of earths near-surface air and ocean; arise from increasing concentrations of greenhouse gases. Global warming results in extreme weather, increased freshwater flow, sea level and temperature rise, and it is detrimental to the social system and biological system. As matter of fact, a host of activities of human beings and companies are contr ibuting to climate change. For instance, Rio Tinto Groups coal operations contributed to global warming. Carbon dioxide emissions are the most important cause of global warming. As a consequence, in order to achieve environmental protection thus resource can be met not only in the present but also for generations to come, at the same time, not bring harm to the economic interest of a company, the company needs to conduct sustainable development. Among the contemporary strategic procurement issues, sustainable procurement is listed into a key issue. When it comes to the benefits of sustainable procurement, first of all, it reduces adverse environmental impacts arising from the procurement activities of human beings and companies. For instance, it reduces waste to landfill, saves water, reduces air and water pollution, saves money through reusing materials and products, reduces consumption of both natural and processed resource, and decreases carbon emission. In terms of carbon emission, as mentioned above, it is the most critical cause of global warming and is mostly generated by the heavy industries like the mining organization. As one of serious issues that all mankind faces, a host of developing countries even some developed countries are taking actions to limit carbon emission primarily via some economic and political measures such as voluntary agreement, carbon dioxide tax and carbon trading. Carbon emissions trading is a form of emissions trading that specifically targets carbon dioxide and it currently constitutes the bul k of emissions trading. It is a general method that countries utilize so as to fulfill their responsibility specified by the Kyoto Protocol. In this respect, sustainable procurement builds a sustainable supply chain for the future. And it is with the addition of assisting in the protection of environmental biodiversity all over the globe, and ensuring the health and safety of the community. Secondly, it is the benefit from more sustainable goods and services. That means by choosing to invest in the sustainable solutions, it can influence the decisions made by other bodies and by individuals. Demand for sustainable goods and services can help to make these solutions more generally available, at more affordable prices to the purchasers. Buyers who conduct sustainable procurement will also demand their suppliers for sustainable products and services. As a result, the whole supply chain will become sustainable. Thirdly, sustainable procurement will be likewise more efficient use of shar eholders resources. Specifically, for the shareholders, what they pay most attention is the cost. And sustainable procurement reduces costs through greater energy efficiency, waste disposal, risk management, and the costs for products over the life cycle. In general, sustainable procurement plays a key role in the both economic and environmental development in that it identifies more sustainable ways of meeting requirements and designs sustainable procurement specifications accordingly. The approach can address the social, economic and environmental implications of product and service choices. It also can embrace whole life costing and address how aspects such as design, manufacturing materials, operating costs, energy consumption, waste and recycling options support a more sustainable approach. How to implement the sustainable procurement strategy? Sustainable procurement is a product of sustainable thinking throughout the entire organization. The organization must share the drive, responsibility and the commitment and this should be reflected in policies, strategies and procedures. Every organization should develop its own plan to improve the sustainability of its procurement activity. The plan should declare the future plans in terms of improvement showing what and by when they will be achieved. Chief Executives and senior management must demonstrate leadership and a genuine commitment by incorporating sustainability objectives into their procurement activities, policies and strategies. All those involved in specifying demands and procuring goods and services need to contribute to incorporating sustainability into contracts.4 It is critical that those who originate and develop requirements consider sustainability at the outset and through each stage of the process. Information and training on the importance and value of speci fying and purchasing sustainably is also essential for all the staff in the organization and organizational procedures and plans should reflect this. Sustainable procurement will come about only if the organization and those within it understand, and are committed to, operating sustainably. Organizations need to keep to all environmental legislative and regulatory rules when buying products, services and works; integrate the environment into procurement decisions; raise staff concerning and awareness on environmental issues into procurement by providing relevant information and training; get products, services locally wherever possible taking into account the need to achieve best value for money; and get energy supplies generated from renewable sources. At Rio Tinto Group, they have their own procurement department called Rio Tinto Procurement (RTP). They focus on the ways in which it can bring sustainable socio-economic benefits to the areas in which it operates, namely mining business. Rio Tinto Procurement claims that they deliver value to the Rio Tinto Group by providing a safer, efficient and effective procurement and inbound supply chain service to business units and functions. With respect to sustainability, Rio Tinto Procurement also declares they conduct their procurement activity in a manner that is holistic, transparent and sustainable. Respect for the environment is central to their approach to sustainable procurement. Rio Tinto Procurement seeks to contribute to sustainable development. Specifically, in the process of procurement activity, they work as closely as possible with their host countries and communities, respecting their host countries laws and customs. They minimize adverse effects and strive to improve every aspect of their procurement performance. Before they make decisions in terms of what kind of material to purchase, Rio Tinto Procurement will competitively test the material commitments to ensure that Rio Tinto obtains the best value available considering all relevant factors, such as safety, quality, delivery, specification, price, environmental and community impact and sustainable development. They believe that conducting a successful business and sustaining quality of life and the environment go hand in hand. Their commitment to responsible stewardship and business practice benefits society by keeping economies and the planet healthy for the future generations, and it benefits the company by enhancing its long-standing reputation as a good business partner and neighbor. Firstly, for society, Rio Tinto Procurement provides goods jobs, goods opportunities and a safe working environment for all employees, and partnering with neighbors to deal with a variety of issues that affect th e communities. Secondly, for environment, they minimize their environmental footprint and maximize the contribution their products make to the environment. Thirdly, for economy, they create value for their customers, shareholders, employees and economies. Why is it critical for mining organization to be sensitive to sustainability? One of the implications is that the conventional technical and professional strengths of mining and metals people are no longer sufficient for the requirements of today. Companies need to ensure that they are sensitive to sustainability. Then, why is it critical for mining organization to be sensitive to sustainability? As we know, mining is the extraction of valuable minerals or other geological materials from the earth, normally from an ore body, vein or coal seam. It also includes the removal of soil. Materials recovered by mining include base metals, precious metals, iron, uranium, coal, diamonds, limestone, oil shale, rock salt and potash. Mining resources are one of the most critical natural resources and are the important material foundation of society. For example, mineral fuel and iron are basic need of the country. Copper, lead and zinc are mostly used in industries. While gold and silver is used in industrial development. Nickel, manganese, fluorspar, vanadium, tungsten, a sbestos, mica, mercury, graphite, antimony a tin used in various industries. However all of them are non-renewable resources. From the perspective of sustainable procurement in the mining organization, what to concern is less investment while high productivity, as well as environmental protection. That means purchase the raw materials and relative accessories used to production at the reasonable prices to meet mankinds requirement and to improve peoples life quality, at the same time, eliminate the negative effects to the ecology. First of all, from the perspective of resource, sustainable development of resources focuses on exploring new ways to maximize the value of the resources. The first key question is whether the resources all over the globe are utilized adequately? As we know, a characteristic of all the resource is the scarcity. That means resource whatever tangible and intangible is all limited. Resource which is rich today will be exhausted one day in the future. Whats more, resource is a core element for any company, especially for the mining company. In recent years, it indicates that with the dramatical development of technology and productivity the demand of mineral resources is at all-time high in that economic prosperity and societal wellbeing require a safe and reliable supply of energy and mineral resources. For instance, in USA, it consumed 35 billion tons petroleum, 7.3 billion tons steel, 140 million tons copper and 200 million tons aluminum during 20 century. Although a plenty of mineral resource is enough for the production for this generation and a few next generations, these mineral products will be exhausted eventually in a certain generation. It is reported that there exists potential risks in terms of the quantity of other mineral resource excluding coal in Peoples Republic of China. As a result, mining organization needs to pay more attention to procure the mineral resources sustainably. Some mining organizations which conduct sustainable procurement emphasize that renewable resources, recycling, resource substitution, and increases in efficiency and conservation are needed to enhance the stability and security of non-renewable energy and mineral resources supply and demand. Some substitution can extend the mineral supplies. At Rio Tinto Procurement, their approaches is not only discovering new mineral resources, but also finding ways to contribute to recycling as well as looking for more sustainable materials and ingredients in order to preserve the ability of future generations to meet their needs. Some recycled materials should be taken into account in the process of procurement activity. In terms of recycled materials and resources, Rio Tinto also does a significant job. It is reported that 20 percent of the materials that are used in the production comes from recycled content. The second key question is whether the certain material needs to used really. This means that both the end customers of the products and the buyers have to review their product requirements and identify potential opportunities for increasing the efficiency of use. It can both cut procurement costs and save the resources which can be used more suitably. Secondly, from the perspective of environment, sustainable procurement of mineral resources also concentrates on the environmental protection. For instance, a new process at BMA Peak Downs Mine (Australia) is not only decreasing coal loss by nearly nine percent, but also improving the mines sustainability performance via reducing the area disturbed, waste production and fuel consumption, the latter assisting to meet greenhouse gas emissions targets. When the organization purchases goods and services, environmental issues should be taken into account. As a consequence, organization should purchase materials which bring less environmental impacts to both current and future life. It is inevitable for the mining organization to create adverse environmental impacts in the operations. As mentioned above, it mainly refers to climate change, carbon dioxide emission. For instance, at Rio Tinto Alcan which is one of five product groups operated by Rio Tinto and is a global supplier of high qua lity bauxite, alumina and aluminum, they invest in zero and low emission technology research, development and deployment to address climate change issue because the aluminum industry generates approximately one percent of global greenhouses gases emissions in the integrated production of aluminum products. Therefore, by running sustainable procurement, it enables Rio Tinto Alcan to reduce operating costs, enhance product value and quality with less impact on the environment. In order to produce products that meet the requirements of sustainable development, procurement department is also responsible for buying the raw materials and ingredients which have less adverse impacts on the environment. For example, at Rio Tinto, they procure low emitting materials that include adhesives, sealants, paints, primers, carpeting and composite wood products to support the manufacturing activity. Rio Tinto Procurement also carefully selected products to avoid volatile organic compounds, formaldehy des and other hazardous and irritating chemicals, ensuring that products they procured are with hazard to both living beings and environment as little as possible. Additionally, Rio Tinto Procurement is also working to better understand the future needs for metals and minerals. Sustainable procurement considers not only materials, environmental effects, but also supplier selection. Under the condition of strategic procurement, company has not focused on purchasing items at a possible lowest price. Normally, when conducting sustainable procurement it is essential for organization to make sure that suppliers and contractors are aware of environmental issues and policies, promote environmental awareness among suppliers and encourage them to minimize the environmental impacts of the supply chain. Take Rio Tinto Procurement as an example. Rio Tinto Procurement sources its suppliers with high criteria. Firstly, Rio Tintos suppliers and potential suppliers must meet the requirements of sustainable development. In other words, they must be able to demonstrate strong organizational commitments to the sustainable development such as natural resource conservation and management, carbon and greenhouse gas emission reduction, energy and fuel efficiency, waste minimizati on, improved health and safety, human rights and labor practices. Rio Tinto Procurement values suppliers whose policies and practices demonstrate active awareness of and support for sustainable development principles and help them achieve the goals of sustainable development. Through collaborating with suppliers to obtain the objectives of sustainable development, Rio Tinto Procurement seeks to create business relationships that have positive and enduring effects in the developing economies where they operate. As a result, suppliers who are safe, efficient, and meet the requirements of sustainability play a critical role in Rio Tintos success. General speaking, one of key factors of sustainable procurement is to motivate vendors to offer more sustainable products. Company may share supplier information with respect to products functional performance specifications including sustainability instead of the technical specifications of known products. Carbon emission trading In addition, sustainable development cannot be achieved by industry alone. It requires concerted collaborative effort from industry, governments, inter-governmental agencies and civil society. For instance, as a key word of sustainable development, carbon emission trading plays an important role in sustainable procurement. Carbon emission trading is a form of market mechanism on the purpose of achieving greenhouse gas emission reduction, especially reducing carbon dioxide emission. This form of permit trading was specified by the Kyoto Protocol that takes market mechanism as a new method that resolves the issue in terms of greenhouse gas emission reduction. In other words, it is a market-based approach that trades carbon dioxide emission credits. Specifically, if an organization comes in below the limit of allocation of allowable emissions, they can sell the remainder of the allocation. On the other hand, if a company produces carbon dioxide more than its allocation of allowable emis sions, they either have to offset that or buy additional allocation. Rio Tinto is encouraging governments to implement workable fair trading schemes. They invest capital in developing new technologies such as AP technology which is the most efficient approach of smelting aluminum, low emissions processing for iron ore, and block cave mining process which reduces materials handling and allows the ore to begin to break itself during the handling process. As new technologies become available, these will be adapted to further reduce emissions and improve energy efficiency. Conclusion All in all, procurement has never played such as important role in the increasingly globalized economy. Strategic procurement can mean completely different things in different industries and sectors. What cannot be denied is procurement decisions are more and more based on total supply chain cost, carbon footprint impact, other ethical, social and economic factors, rather than just purchase prices. In this modern society that people emphasizes sustainability and sustainable development, contemporary strategic procurement should also pay more attention to sustainable procurement and environmental issues. Sustainability requires the purchasing organization to be aware of both life cycle costs (LCC) and the life cycle environmental impact associated with their purchase decision and to add these factors into their supplier selection as well as relationships with suppliers. Organization which has a better understanding of sustainable procurement may implement the following three points: m inimizing impacts of the supply chain, minimizing impacts of the product and/or service, and buying resource efficient products. And their sustainable procurement activity considers products, services, and suppliers. It includes issues such as resource extraction and consumption, manufacturing and production, use and maintenance, recycling and disposal options. As a result, this organization can obtain significant economic interest, at the same time, maintain the sustainable development of ecology, keep the resources for next generations and make an effort in its social responsibility.