Week 12 Real Estate CD Essay Example | Topics and Well Written Essays - 250 words

Week 12 Real Estate CD - Essay Example Stambosky appealed against the ruling, and by majority, the appellant court denoted that the rumors about the existence of ghosts in the house greatly affected its value. However, the appeal court did not grant any damages to Stambosky in relation to misrepresentation of facts concerning the stature of the house. The court ruled that, it was not the duty of the real estate agent to disclose such information because of the principles of caveat emptor. New York at the time enacted the principles of caveat emptor in its laws (Emanuel, 2006). I agree with this ruling, because the customer should have sought information about the house, before deciding to buy. It was not the duty of the seller to give him such information. However the court ruled in favor of Stambosky regarding the rescinding of the contract (Emanuel, 2006). According to the appeal court, searching the house by the buyer could not reveal the existence of a ghost, and according to the principles of equity, it was prudent to rescind the contract. I agree with this decision because under the principles of caveat emptor, the buyer should have sought information regarding the quality and value of the house. However, it is difficult to identify the existence of ghosts by searching the house and therefore through equity, it is prudent to rescind the house. On this not therefore, the matter of non-disclosure did not sway the court in any

Shutter Island Movie Review Example | Topics and Well Written Essays - 1250 words

Shutter Island - Movie Review Example Firstly, director Scorsese intertwines war-induced mental trauma of Teddy Daniels with personal tragedy of Andrew Laeddis. This compounds the confusion for the audience, but also adds a political dimension to what is an exposition on psychiatric illness. Toward the end of the film it is unveiled how the whole of the Shutter Island is a set up to play along the illusions of Andrew Laeddis. So, when we construct the film from backwards, it is obvious that Laeddis is the only ‘patient’ there is. The mysterious disappearance of Rachel Solando is a ploy designed to put Laeddis in situations of acute emotional tension, with the aim of correcting his aberrations. Perhaps, even all the ‘inmates’ of the wards A, B and C were part of the ploy, or perhaps not as mentally ill as is conveyed to Laeddis/Daniels. As the story unfolds, we see how only a porous line separates the dreams and realities of Laeddis. At first, Laeddis, in his persona of Teddy Daniels, is given a warm welcome by the hospital staff and their chief Dr. Cawley. But soon he becomes â€Å"increasingly suspicious of the doctor and his staff, and when he begins experiencing fierce migraines and vivid visions of tragedies in his own past, he begins to fear that he has become Cawley’s latest experiment.† (Thomson, 2010) For nurses and therapists, one of the questions at the center of the film is the debate in the choice of lobotomy and drug therapy. During the 1950s when the film is being set, this was a dominant debating point in psychiatrist circles. Even Dr. John Cawley talks about this debate and his preference for non-interventionist methods. He suggests that he would first try humanitarian methods of talk-therapy, failing which the patient would be tried drug-therapy. It is only as a last resort that surgical procedure would be prescribed. This is a very sensible position to take, for today’s psychiatry suffers from ready resort to medication,

Mental Disorders-Causes, Nature, and Treatment Essay Example for Free

Mental Disorders-Causes, Nature, and Treatment Essay James is 35 years old and is a successful salesman. He has never married and has no children. His career focus often makes him appear to be a â€Å"workaholic.† Lately, he has begun to feel extremely dissatisfied, lonely, and bored. He thinks often of quitting, selling everything he owns, and taking off. Is James crazy? Is he depressed? Kay is a young and very attractive high-school teacher who is involved romantically with one of her students. She knows this is illegal, immoral, and unethical, but she continues this dangerous behavior. Is Kay mentally ill? Peter washes his hands at least 25 times a day. Whenever he feels anxious, he runs to the bathroom or kitchen and washes his hands to lower his anxiety level. Is Peters behavior abnormal? Abnormal behavior, often perceived as a sign of mental illness, is not uncommon in our society. This lesson introduces you to mental disorders, the causes of mental illness, and the treatment of mental illness. This lesson presents the following topics: †¢ What Is Abnormality? †¢ Models of Abnormality †¢ Anxiety Disorders †¢ Somatoform Disorders †¢ Dissociative Disorders †¢ Mood Disorders What Is Abnormality? What is abnormal, and just how bad can it get? If you study the portrayal of abnormality in American movies, you would probably think that a person who was identified as being psychologically abnormal could be pretty difficult to be around. In fact, for hundreds of years, people with psychological abnormalities were thought to be possessed by demons. Remember the movie, The Exorcist? Exorcism [The formal casting out of a demon through a religious ritual] became popular in the Middle Ages as a way to cast out demons. Another method used in prehistoric times to â€Å"cure† the insane was trepanning [The process of cutting holes into the skull of a living person]. In this procedure, holes were cut in the skull to provide a way for the demons to be released. During the Renaissance period, belief in demons carried through to a belief in witchcraft. Mentally ill people were called witches and were often put to death. These executions were often carried out by burning at the stake. Thankfully, psychopathology—the study of abnormal behavior—has come a long way over the centuries, and attitudes toward and treatment of mental illness have also changed. Definitions of Abnormal Behavior It is difficult to define abnormal behavior. One way is to use the statistical definitions that frequently occurring behavior is normal and behavior that is rare is abnormal. But these definitions dont work for every situation. Another way to define abnormality is behavior that goes against the norms or standards of society. But going against social norms is not always regarded as an abnormality, especially in the case of championing social or political causes. In addition, behavior that may be unacceptable in one culture may be completely acceptable in another. The social or environmental setting of a persons behavior is a potent factor in the determination of â€Å"abnormality.† Joan hates to go to large parties where she doesnt know anyone. Unfortunately, her husbands business often holds large gatherings, and spouses are expected to attend. Joan delays getting ready until the last minute and then spends the evening feeling uncomfortable because she doesnt look as â€Å"well-put together† as some of the other women. She hesitates to mingle because of her subjective discomfort [Emotional distress or emotional pain] that keeps her from meeting new people and having a good time. Ed is a 34-year-old college student. He has been in college since he was 18, taking one course after another and pursuing one degree after another. He is what some people call a â€Å"professional student.† Ed works the typical part-time student jobs and earns enough to pay for his classes and his student apartment. He once laughingly said that he couldnt stand the thought of a â€Å"real job,† but there is nothing funny about his situation. Ed is extremely anxious about the prospect of meeting the demands of daily life in the real world, and his maladaptive behaviour [Anything that does not allow a person to function within or adapt to the stresses and everyday demands of life] keeps him from achieving his potential. Both Joan and Eds behavior can be classified as â€Å"abnormal.† So, how do psychologists define abnormal behavior? It is the pattern of behavior that causes people significant distress, causes them to harm themselves or others, or harms their ability to function in daily life. Following is a list of criteria for determining abnormal behavior (at least two criteria must be met): †¢ Is the behavior unusual?†¢ Does the behavior go against social norms? †¢ Does the behavior cause the person significant subjective discomfort? †¢ Is the behavior maladaptive? †¢ Does the behavior cause the person to be a danger to themselves or others? Models of Abnormality The theories you have studied about personality can be used to help explain normal and abnormal behavior. Explaining disordered behavior depends on the model used to explain personality. The biological model [Model of explaining behavior as caused by biological changes in the chemical, structural, or genetic systems of the body] proposes that psychological disorders have a biological or medical cause. You might also hear this model called the medical, organic, or disease model. Such models point to brain trauma, infectious disease, or genetic reasons as the cause of psychological disorders. Several psychological models attempt to explain disordered behavior as forms of various emotional, behavioral, or thought-related malfunctioning. The psychoanalytic model explains disordered behavior as the result of repressing, or hiding, ones thoughts, memories, or concerns. Behaviorists believe that disordered behavior is learned behavior, just as normal behavior is learned. Cognitive psychologists [Psychologists who study the way people think, remember, and mentally organize information] believe abnormal behavior to be a result of illogical thinking patterns. Mental Disorders: Causes, Nature, and Treatments We have looked at some characteristics of abnormal behavior. Now lets see how psychologists decide what type of disorder a person has. The Diagnostic and Statistical Manual of Mental Disorders (DSM) was first published in 1952 to help psychology professionals diagnose disorders. It has been revised several times over the years. The DSM describes about 250 different psychological disorders based on symptoms, the path the disorder takes, and the criteria checklist. The manual divides the disorders into five categories, or axes. †¢ Type of Information: Clinical Disorders and Other Conditions That May Be a Focus of Clinical Attention. †¢ Description in Brief: Psychological disorders that impair functioning and are stressful and factors that are not disorders but that may affect functioning, such as academic or social problems. †¢ Type of Information: Personality Disorders Mental Retardation †¢ Description in Brief: Rigid, enduring, maladaptive personality patterns. †¢ Type of Information: General Medical Conditions †¢ Description in Brief: Chronic and acute illnesses and medical conditions that may have an impact on mental health. [pic][pic] †¢ Type of Information: Psychosocial and Environment Problems †¢ Description in Brief: Problems in the physical surroundings of the person that may have an impact on diagnosis, treatment, and outcome. †¢ Type of Information: Global Assessment of Functioning †¢ Description in Brief: Overall judgment of current functioning, including mental, social, and occupational.   Ã¢â‚¬ ¢ Disorders usually first diagnosed in infancy, childhood, or adolescence. For example, learning disabilities, ADHD, bedwetting, and speech disorder †¢ Delirium, dementia, amnesia, and other cognitive disorders. For example, Alzheimers, Parkinsons, and amnesia caused by physical causes †¢ Psychological disorders caused by a general medical condition. For example, personality change because of a brain tumor †¢ Substance-related disorders. For example, alcoholism and drug addiction †¢ Schizophrenia and other psychotic disorders. For example, schizophrenia, delusional disorders, hallucinations, and paranoid psychosis †¢ Mood disorders. For example, depression, mania, and bipolar disorders †¢ Anxiety disorders. For example, panic disorder, phobias, and stress disorders †¢ Somatoform disorders. For example, hypochondria and conversion disorder †¢ Factitious disorders. For example, pathological lying and Munchausen syndrome †¢ Dissociative disorders. For example, multiple personality and amnesia not caused by physical causes †¢ Sexual and gender identity disorders. For example, sexual desire disorders and paraphilias †¢ Eating disorders. For example, anorexia and bulimia †¢ Sleep disorders. For example, insomnia, sleep terror disorder, sleepwalking, and narcolepsy †¢ Impulse-control disorders not elsewhere classified. For example, kleptomania, pathological gambling, and pyromania †¢ Adjustment disorders. For example, mixed anxiety and conduct disturbances You may think you dont know anyone with a psychological disorder, but they are more common than you think. According to the National Institute on Mental Health, about 22 percent of adults over 18 suffer from a mental disorder, that is, about 44 million people in the United States. Many people who study psychology begin to believe they suffer from some type of disorder. Why? Because many psychological disorders are really ordinary variations on human behavior taken to the extreme. Now, lets take a look at some of the various categories and types of disorders. Anxiety Disorders In 2004, Raoul was vacationing with his parents in Sri Lanka when the resort they were staying in was hit by a devastating tsunami. Thousands of people died, and Raouls family barely escaped. To this day, Raoul feels extremely anxious whenever he is near the ocean or hears the sounds of waves breaking on the beach. His heart begins to pound, his hands tremble, and he wants to run away. Raouls anxiety is one of the anxiety disorders [Disorders in which the main symptom is excessive or unrealistic anxiety and fearfulness] that can be traced to a specific event. Anne feels anxious nearly all the time. She wakes up in the morning with a vague sense of dread that intensifies as the day goes on. This free-floating anxiety [Anxiety that is unrelated to any realistic, known source] is keeping her from doing her best at work and is also getting in the way of her close relationships with others. A phobia [An irrational, persistent fear of an object, situation, or social activity] is also a type of anxiety disorder. Phobias are classified as either of the following: †¢ Social phobias [Fear of interacting with others or being in social situations that might lead to a negative evaluation] †¢ Specific phobias [Fear of objects or specific situations or events] Melanie is afraid to go into large arenas. Because of her agoraphobia [Fear of being in a place or situation from which escape is difficult or impossible] she did not attend her sons high school basketball championship game. Agoraphobia keeps her from living life to the fullest. Some other common phobias and their scientific names are given below: †¢ Fear of washing and bathing: Ablutophobia †¢ Fear of spiders: Arachnophobia †¢ Fear of lightning: Ceraunophobia †¢ Fear of dirt and germs: Mysophobia †¢ Fear of snakes: Ophidiophobia †¢ Fear of darkness: Nyctophobia †¢ Fear of fire: Pyrophobia †¢ Fear of foreigners and strangers: Xenophobia †¢ Fear of animals: Zoophobia

Change in Diet Essay Example for Free

Change in Diet Essay I began this class with very little nutritional knowledge. During week one of this class, it became evident to me that my eating habits were completely unhealthy. Before taking this course, my interpretation of eating right consisted of eating foods that I thought were healthy, and basically sticking to that particular meal plan. I started this class coming off of a self-created protein diet plan of my own. My diet plan consisted solely upon eating cereal for breakfast, chicken breast, white rice, and egg whites for lunch, and drinking a protein shake for dinner, every week on days Monday through Friday. For the weekends, I would basically eat whatever I wanted. The weekends were considered my grace period where I was allowed to ignore my diet for two days. About a week or two before the course began, I had completely stopped my protein diet, and I was basically back to eating whatever I had a taste for at any given time of the day. I had lost all discipline and obedience to my â€Å"healthy† meal plan. The amount of meals I would have each day varied from one meal a day, to two or three meals a day. Rarely was it consistent. I would skip out on breakfast on many occasions. On some days, I would eat solely junk food all day long. Water was almost inexistent in my life. Completing week one’s assignments gave me an opportunity to actually read how bad my eating habits were as I typed them in. I also learned that my once proclaimed healthy diet was in fact not as healthy as I thought it was. I also learned that I was missing key foods necessary to live a long and healthy life such as fruits and vegetables. Fruits and vegetables were nonexistent in my life. Vegetables, I never took well to. Fruits just did not seem as important to me as they should have been, and they definitely never satisfied my sugar craves. I learned the importance of fruits and vegetables. I learned that they provide the vitamins, minerals, and fibers my body needs to live a successfully healthy life. Throughout the course, I learned a lot about nutrition. I now know the difference between saturated and unsaturated fat. I am aware that all fat is not bad for the body. In fact, fat should be apart of every diet, and is required for healthy growth. This course has also given me a better perspective of dehydration. I now fully understand what dehydration is, and the causes of it. I am definitely more aware of the importance of drinking water. Currently, compared to week one of this class, my eating habits are totally different. I definitely see changes in my diet. From completing assignments mixed with personal research, I have learned that a person can actually gain weight from not eating enough. I learned that it is important for individuals to consume their recommended amount of calories each day in order to maintain a healthy and normal metabolism rate. A lack of food can slow metabolism. Metabolism burns fat. So of course, the first change in my diet was to make sure that I was consuming as close to my recommend amount of calories each day as much as I could. In result, I currently eat three healthy meals a day. Fruits and vegetables have become apart of diet. I am eating more fruits and vegetables now, than I ever have in my entire life. I am also making sure to eat a variety of fruits and vegetables compared to eating just one or two types. This course has helped me gain a better understanding of whole foods such as whole grains and wheat. I no longer eat white rice or white bread. I have substituted white rice with brown rice, and I have replaced white bread with whole grain wheat bread. These changes were not easy at all. I loved white rice and white bread. It was definitely a challenge making that transition. I have even made changes to the type of sandwich meats I eat. I have replaced deli ham with white turkey and chicken breast. For breakfast, I have stopped eating cold cereal and frozen waffles, and have started eating whole grain oatmeal with fruit slices. I still drink protein shakes after weight lifting. However, I no longer have protein shakes for dinner. From the course I have learned that oils are needed in any diet. In result, I have begun using olive oil with some of my dishes. I no longer use margarine, and have replaced it with real butter. I have eliminated any idea of a grace period and I try to eat healthy seven days a week. As mentioned early, I have learned a lot about dehydration and the importance of drinking water. I avoid all caffeinated beverages. I have eliminated sodas and other beverages from my diet. I drink milk, green tea, and one hundred percent fruit juices, but mainly water. Throughout researching, I have learned just how necessary it is to drink water. I learned that water helps the body’s organs function properly, water clears the body of toxins, and water helps burn calories. I learned the recommended daily serving of water should be eight to ten glasses, a minimum of 64 ounces. Upon learning this information, I have visited my local supermarket and have purchased a water bottle of 24 ounces. This course has taught me that many people mistake thirst with hunger, causing overeating and weight gain. I now consume 72 ounces of water a day. I make sure to fill and empty my water bottle three times a day. I have also created a system with accordance to my schedule where I eat dinner no later than 7:30 p. m. My workouts at the gym have also changed as well. Before, my workouts consisted solely on weight lifting. I have now made time in the beginning of my workouts for at least thirty minutes of cardiovascular exercises. The changes that I have made to my diet has really changed who I am as I person. I feel different, healthier. There has been a dramatic decrease in my stress levels. I am full of energy and happiness. I am now more aware of what I allow to enter my body.

The Benefits of Algae :: Environment Nature Ecology Essays Papers

The Benefits of Algae How often also does a human use or eat algae in his daily life? When most people think of algae, they probably think of something that is slimy, gross, and dirty. Algae may irritate people because it grows in unwanted places like swimming pools and boats. Algae can be toxic and it is slimy, but algae benefits people in all aspects of life. Humans obtain algin from algae to help make ice cream, pudding, face cream, and shoe polish. Algae is present in hamburgers, yoghurt, and cakes. Algae also helps make explosives, insulation, and paint. Algae produces most of the oxygen that animals breathe and without it the world would suffocate. Also, according to Helen Challand, "It is now believed that the oil and gas formed millions of years ago in the ground were created by algae" (20). What if the world could find a way to dispose of sewage, produce food, and purify bodies of water at the same time? The Aztecs have proven that this idea is possible. Lake Texcoco flowed near the Aztec civilization. The Aztecs disposed of their waste in the lake. The human waste added nitrogen to the water. The nitrogen helped algae to grow, and then the algae performed photosynthesis. Photosynthesis gives off oxygen, and oxygen purifies polluted water. The Aztec's also abstracted the algae from the lake and used it for food. Certain types of algae like red and green algae are edible. Many cultures have eaten seaweed for centuries. Wendy O'Leary Dunn states, "They think of seaweed as a vegetable and eat it as we eat broccoli or spinach" (18). Therefore, when humans dispose of their waste in bodies of water, they help algae grow. Then, the algae cleans the water and they can eat the algae. The process of disposing waste, producing food, and purifying bodies of water is useful today. For example, communities that live in the desert, like in the southwestern United States and in the Middle East, can use this process to farm and survive. They can use the newly purified water for their crops or for their own consumption. In addition, when algae purifies water, it releases oxygen.

Gas Chromatography :: essays research papers

Gas Chromatography Purpose:   Ã‚  Ã‚  Ã‚  Ã‚  The purpose of the gas chromatography lab is to find out how different substances interact with the surface of a solid. Chromatography is a separation technique that depends on the relative distribution of the components of a mixture between a mobile phase and a solid stationary phase. Chromatography measures the tendency of a substance to interact with the surface of a solid or to remain in a mobile phase. When doing a chromatography lab the mobile phase has to be a substance that is either in a liquid or a gas state. In this lab the mobile phase was a gas, which is why this is called a gas chromatography lab. The different gases tested in this lab were CHCl3 and CH2Cl2. It is determined to what extent a gas interacts with the solid by injecting a known amount of the mobile gas into the carrier gas and then measuring the concentration that comes out at the end of the column. From this there was a detector that transferred the information to a computer we re it was graphed. The tendency of the gas to interact with the solid is determined by the number of theoretical plates. A substance that interacts more strongly with the surface of the solid will take more time to be carried across the stationary phase. Procedure:  Ã‚  Ã‚  Ã‚  Ã‚  The pieces of a Gas Chromatograph are the gas supply, injector, column and the detector. The gas supply, or carrier gas, is the gas from the valves at the lab tables. First a coil had to be made out of copper, which would serve as the burner for the detection system. A pipet was used as the column to put the solid stationary substance into. The solid phase in this experiment was Tide. The pipet was filled with Tide detergent and cotton was inserted in both end of the pipet. The column was then secured horizontally to a ring stand using clamps. The tip of the column should be in a vertical position. The copper coil is then placed in the vertical part of the column with the coil about 1/8† above the end of the column. It is important that the copper coil be placed at the right height because if it is too low the flame will not get enough air and if the copper is to high the flame will burn below the coil.

Recent Changes in Monetary Policy in Pakistan

{text:bookmark} {text:toc-mark-start} PAKISTAN ECONOMIC POLICY {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} DATED: *15TH* DECEMBER 2009 {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} Submitted To: {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} Sir Ashraf Janjua {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} Submitted By: {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} Nimra Anjum {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} Rakana Payam {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} text:bookmark} {text:toc-mark-start} *Sheema H*asanat {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} ACKNOWLEDGEMENT {text:toc-mark-end} We would like to give our special thanks to our Pakistan Economic Policy teacher, Mr. Ashraf Janjua for giving us this opportunity to work and have an insight of the our country’s economy, also to let us interpret our learning in a real situation. We thank him for the assist ance through out this project. Table of Contents MONETARY POLICY Monetary policy is the regulation of volume of money supply, by the central bank in order to achieve relative price stability. If the economy is heating up then the Central bank can increase the bank rate or the reserve requirement. Whereas when there is recession, then the bank rate is reduced. Instruments for the Regulation of Money Supply Open market operations. Cash Reserve requirement Statutory Liquidity Ratio Credit Ceiling Open market operations: It is the buying and selling of government securities. If the M. S is high then the securities are sold so that people buy it and money goes to the SBP and if the M. S is low then you buy securities in this way Money supply increases. Cash Reserve Requirement: It is a requirement in which all the commercial bank have to keep a percentage of cash with the SBP. Currently, it is around 7%. Statutory Liquidity Ratio: It is a requirement in which each bank has to maintain a certain reserve requirement to strengthen their liquidity position. Credit Ceiling: It is the fixation of the upper limit; quotas are assigned to different banks. Components of Money text:bookmark} {text:toc-mark-start} Mo is the resource money and comprises of: {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} Currency in circulation {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} Bank’s Reserve with the SBP {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} Other deposits with the SBP {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} Cash in the tills of the Bank {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} M1= Currency in circulation + Demand deposits with scheduled banks + other deposits with SBP. text:toc-mark-end} {text:bookmark} {text:toc-mark-start} M2=M1 + time deposits with the scheduled banks. Technically, M2 is called Monetary Assets & M1 is called Money Supply. {text:toc-mark-end} How is Money Created? {text:bookmark} {text:toc-mark-start} There are three sources of creating money: {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} Net Credit creation by the central Bank (SBP): Credit extended during a period minus recoveries. {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} 1 and 2 are called net Bank credit. Credit is always on the Asset side of Banks. When this credit is used by issuing cheques end up with bank (either the same bank/or any other bank). These cheques are deposits, and are on the liability side of the banks. These deposits/liabilities become money/monetary Assets, and are equal to the credit created by the Banking System. {text:toc-mark-end} How Much Money can be Created? {text:bookmark} {text:toc-mark-start} The share of currency in circulation in Mo and, {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} Level of cash in tills and commercial banks reserves with SBP as a % of Mo. text:toc-mark-end} {text:bookmark} {text:toc-mark-start} The higher the value of either of these amounts with respect to M2, the lower the Money Multiplier. {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} 1/c + r (1-c) {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} C= the ratio b/w CIC + other deposits with SBP and M2 {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} R= Cash assets of Scheduled banks: Ca sh in tills of commercial banks + reserves with SBP. {text:toc-mark-end} DOES MONETARY POLICY PLAY EFFECTIVE ROLE IN CONTROLLING INFLATION IN PAKISTAN? Introduction text:bookmark} {text:toc-mark-start} Inflation is politically costly for the government (Haque and {text:toc-mark-end} Salient Features of the Monetary Policy {draw:frame} {draw:frame} {draw:frame} Instruments of Monetary Policy {text:bookmark} {text:toc-mark-start} Cash Reserve Requirement {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} {draw:frame} {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} Discount Rate {text:toc-mark-end} {draw:frame} INFLATION TREND IN PAKISTAN (2004-2009) According to the State Bank of Pakistan, the core inflation in the year (2005) was 8. per cent which has almost doubled since the last year (2004) in which the inflation rate was 3. 8 per cent. During this year the non-governmental borrowing increased by 30 per cent. The two main reasons for high inflation during this peri od were because of excessive government borrowings and the price of wheat. According to the State Bank of Pakistan, government estimated that the inflation rate in the next year would range between 7. 7 and 8. 3 per cent. During the year (2006) there was a decrease in the total inflation of the country (general and food) from 9. 3 to 7. 9 per cent and 12. 5 per cent to 6. per cent respectively. The government took several major steps to bring the inflation down during this year as well by tightening the monetary policy and augmenting the supply of essential commodities through liberalization of import regime. As a result the general inflation declined from 9. 3 per cent (2004-05) to 7. 9 per cent (2005-06) & the non-governmental borrowing in the year 2006 became 23 per cent. During 2007 the core inflation reduced from 7. 5 per cent to 5. 9 per cent, due to tight monetary policy. According to the SBP the food inflation increased from 6. 9 per cent (2006) to 10. per cent (2007) becaus e of supply side constraints in which the prices of some key food staples (including wheat, rice, vegetable, ghee etc,) were increased. Where as comparatively the non-food prices grew at a slower pace since last year and the general Inflation (CPI) declined from 7. 9 per cent to 7. 8 per cent. The inflationary trend in the food prices during the year (2008) increased to 17. 6 per cent as compared to the last year in which the food inflation was 10. 3 per cent, affecting people living standards of low and fixed income groups. The non-food inflation had the same increasing trend as in the year (2007), which was 6. per cent and during the year (2008) was 7. 9 per cent. Although the core inflation was reduced to 5. 9 per cent but during this year it went back to 8. 4 per cent because of the global increase in some commodity, higher utility tariff and by local supply and demand driven prices. Inflation during (2008) indicates that the prices of a few commodities (18) essential food items registered sharp increase particularly during the second half of the fiscal year (2008). Other significant contributors to (2008) upward inflationary trend included house rent, which is the index that measures the cost of construction in Pakistan, racing to 11. per cent by April (2008). The current fiscal year commenced with ease in headlines compared to the same month of previous fiscal year. The consumer price inflation annually was 11. 2 per cent during July (2009) as against 24. 3 per cent in July (2008) and 13. 1 per cent in the previous month. A major increase in the core inflation was witnessed in July (2009) of 17. 6 per cent as compared to July (2008) 8. 4 per cent. The food inflation increased by 6. 1 per cent during this fiscal year. The main reason for this high inflation was due to low export growth relative to import, high oil prices and inadequate foreign apital inflow. Conclusively, one can say that inflation adversely affects the overall economic growth, the financ ial sector development and exploit the vulnerable poor segments of the population. Inflation also decreases the real income and induces uncertainty. Considering such undesirable impacts of inflation on the economy, there's a consensus among the world leading central banks that the price stability is going to be the prime objective of monetary policy and the central banks are committed to lower the inflation in the economy. Hence the State bank of Pakistan should adopt inflation as their main focus of monetary policy, by targeting inflation explicitly or implicitly as and when required. EFFECTIVENESS OF MONETARY POLICY STATEMENT IN PAKISTAN Economic policies aim to increase the welfare of the general public and monetary policy supports this broad objective by focusing its efforts to promote price stability. Embedded in this objective is the belief that persistent inflation would compromise the long term economic prospects of the country. The objective of monetary policy in Pakistan, as laid down in the SBP Act of 1956, is to achieve the targets of inflation and growth set annually by the government. In pursuit of this mandate, SBP formulates the country's monetary policy that is consistent with these announced targets. In my remarks today, I plan to provide perspective on: First, why central banks focus on price stability? Second, how the monetary policy transmission mechanisms work? Third, what are the principal features of Pakistan's monetary policy framework? Fourth, selected thoughts on effectiveness of Pakistan's monetary policy framework Finally, what measures are needed to improve the effectiveness of the monetary policy framework in Pakistan? These questions have been a subject of much debate lately, as monetary tightening – an inevitable policy response for regaining macroeconomic stability – has aroused anxiety but better public understanding of this question will help them to appreciate central bank's monetary policy stance. Why Focus on Price Stability? Monetary Policy Transmission Mechanism The monetary transmission mechanism refers to a process through which monetary policy decisions affect the level of economic activity in the economy and the inflation rate. Understanding the transmission mechanism of monetary policy is crucial for appropriate design and efficient conduct of monetary policy. As monetary policy actions affect policy variables with a considerable lag and with high degree of variability and uncertainty, it is important to predict the possible impact and extent of monetary policy actions on the real variables. Thus, by its very nature, monetary policy tends to be forward-looking. It is also important to know which transmission channels are more effective in terms of transmitting changes in monetary policy actions to ultimate policy goals. Since various financial sector developments particularly regarding introduction of new financial products, technological changes, institutional strengthening, and expectations about future policy, etc can potentially change economic effects of the monetary policy measures, there is a need to regularly update, empirically test and reinterpret monetary policy transmission channels. The impact of monetary policy is perceived to transmit in to the real economic activity through five channels. †¢ The first channel and most widely studied and understood channel of monetary policy transmission relies on the link between changes in the short-term nominal interest rate (induced by changes in the policy rate) and the long-term real interest rate that ultimately affect components of aggregate demand such as consumption and investment in an economy. As such, it is the changes in the long-term real interest rates that have its impact on aggregate consumption, business investment and other components of aggregate demand. †¢ The second channel, known as the credit channel, involves changes in monetary policy that not only affects the ability of firms to borrow money (by affecting their net worth) but also affects the ability of banks to lend money. The strength of this channel depends on the degree to which the central bank has allowed banks to extend loans and the dependence of borrowers on bank loans. These factors are clearly influenced by the structure of the financial system and its regulation. †¢ The third channel of monetary policy transmission focuses on asset prices (other than the interest rate) such as the market value of securities (bonds and equities) and prices of real estate. A policy-induced change in the nominal interest rate affects the price of bonds and stocks that may change the market value of firms relative to the replacement cost of capital, affecting investment. Moreover, a change in the prices of securities entails a change in wealth which can affect the consumption of households. Fourth, a policy-induced change in the domestic interest rate also affects the exchange rate that in turn affects the foreign financial flows, net exports and thus aggregate demand. The strength of the exchange rate channel depends on the responsiveness of the exchange rate to monetary shocks, the degree of openness of the economy, sensitivity of foreign private inflows and n et exports to exchange rate variations, and the net worth of firms and thus their borrowing capacity if they have taken exposure to foreign currency. Moreover, exchange rate changes lead to changes in the domestic price of imported consumption goods and imported production inputs affecting inflation directly. †¢ Since expectations influence the inflation dynamics, there is a fifth channel that is based on the economic agents' expectations of the future prospects of the economy and likely stance of the monetary policy. According to this ‘expectations channel', most economic variables are determined in a forward-looking manner and are affected by the expected onetary policy actions. Thus, a consistent, credible, and transparent monetary policy can potentially affect the likely path of the economy by simply affecting expectations. Monetary Policy Framework in Pakistan Considering the economic and financial market structure in Pakistan, SBP has for sometime pursued a monetary targeting regime with broad money supply (M2) as a nominal anchor to achieve the objective of controlling inflation without any prejudice to growth. The process of monetary policy formulation usually begins at the start of the fiscal year when SBP sets a target of M2 growth in line with government's targets of inflation and growth (usually in the month of May) and an estimation of money demand in the economy. The basic idea is to keep the money supply close to its estimated demand level, as both a significant excess and a shortfall may lead to considerable deviations in actual outcomes of inflation and real GDP growth from their respective targets. Underlying this framework are two strong assumptions: first, there is a strong and reliable relationship between the goal variable (inflation or real GDP) and M2; and second, the SBP can control growth in M2. While containing the M2 growth close to its target level is the key consideration in the current monetary framework, the composition of the money supply does matter and at times requires policy actions even if these actions lead to a deviation in monetary growth from its target level. To understand this point, it is necessary to know the major components of money supply and their relative importance. Net foreign Assets (NFA) and Net Domestic Assets (NDA) of the banking system are the two major components of money supply. The NFA is the excess of foreign exchange inflows over outflows to the banking system, or in other terms it is a reflection of underlying trends in the country's external Balance of Payment (BoP) position. It is estimated by the projected values of all major external transactions such trade, workers' remittances; debt servicing, foreign investment, and debt flows etc. The NDA of the banking system, which primarily consists of credit to the government and the private sector, reflects changes in the fiscal and the real sectors of the economy, If is estimated as a residual of M2 and the NFA. Further break-up of NDA is estimated on the basis of projected credit needs of the government and the private sector. NOW coming to the importance of these components of the money supply, depletion in NFA is generally considered as an unhealthy development. Sharp NFA depletion reflects worsening BOP position and a pressure on exchange rate. In such a case, a higher NDA growth, though helps in expanding M2 to reach ifs target level, may further deteriorate external accounts, sharper depreciation of local currency, and higher depletion of country's foreign exchange reserves. Although since FY07, only the indicative M2 growth target is being announced, SBP also takes into consideration the causative factors for monetary expansion while pursing this target. Considering the changes in monetary aggregates and other economic variables, the changes in monetary policy are signaled through adjustments in the policy discount rate (3-day repo rate). Further, the changes in the policy rate are complemented by appropriate liquidity management mainly through Open Market Operations (OMOs) and if required changes in the Cash Reserve Requirement (CRR) and Statutory Liquid Reserve requirement (SLR) are also made. † Significance of various channels that transmit the monetary policy shocks in Pakistan to the real economy has been analyzed by few economists. Ahmad et al. (2005) found that credit channel is the most ‘important conduit for transmitting monetary policy actions to the real economic activity. Evidence confirms transmission through the active asset price channel and exchange rate channel. According to this study, monetary policy shocks impact real output after a lag of 7 to 11 months. Tasneem and Waheed (2006), on the other hand, investigated whether different sectors of the economy respond differently to monetary shocks. The presence of sector wise differences in the monetary transmission mechanism has profound implications for macroeconomic management as the central bank then has to weigh the varying consequences of its actions on different sectors. Investigating the transmission of changes in interest rate to seven sub sectors of the economy, the authors found evidence supporting sector-specific variation in the real effects of monetary policy. They found that the interest rate shock on manufacturing, wholesale and retail trade, and finance and insurance sectors transmit after a lag of 6 to 12 months. On the other hand, monetary policy shocks have negligible impact on agriculture, mining and quarrying, construction and ownership of dwelling sectors. Generally, historical evidence does reflect that Pakistan has been a high inflation and high interest economy given its inherent structural weaknesses. The role and effectiveness of monetary policy appears more visible in the 2000s when financial sector reforms started bearing fruits in terms of a more market based money and foreign exchange markets. Entering the 21sf century, the loose monetary policy stance in the face of low inflation, low growth and low twin deficits, along with structural measures to open up the economy and alleviate some first round constraints, triggered the economy on a long-term growth trajectory of above 7 percent. Monetary policy stance was however altered as the inflationary pressures started to build up in 2005. At the end of the fiscal year, the economy, which had been showing sustained steady growth since FY01, registered a historically high level of growth (9 percent), average inflation rose sharply (9. percent) and the external current account balance turned into deficit (-1. 4 percent of GDP) Coinciding with these developments, the fiscal module started to show signs of stress as the fiscal balance was converted into a deficit and the stock of external debt and liabilities, which had been declining since FY00 after the Paris Club rescheduling, began increasing. These indicators largely capture t he high and growing aggregate demand in the economy on account of sustained increase in peoples' income. With the emerging domestic and global price pressures, SBP tightened its monetary policy after a prolonged gap of a few years. The efforts to rein-in inflation, however, proved less effective due to a rebound in international commodity prices and a rise in domestic food prices later on. The rise in the international commodity prices, particularly oil, exacerbated the fight against inflation. The international oil prices (Arabian Light) rose from US$27. 1 at end 2004 to US$50. 9 at end 2006, whereas international food prices rose by 24, 24 and 21 percent during 2004, 2005 and 2006 respectively. Realizing the complications of monetary management and adverse global and domestic economic developments, the implementation of SBP monetary policy during FY06 varied significantly from the preceding fiscal years. In addition to the rise in the policy rate, the central bank focused on the short-end of the yield curve, draining excess liquidity from the interbank money market and pushing up short-tenor rates. Consequently, not only did the overnight rates remain close to the discount rate through most of the year, the volatility in these rates also declined. These tight monetary conditions along with the Government's administrative measures to control food inflation helped in scaling down average inflation from 9. 3 percent in FY05 to 7. 9 percent in FY06, within the 8. 0 percent annual target. This was certainly an encouraging development, particularly as if was achieved without affecting economic growth as the real GDP growth remained strong at 6. 6 percent in FY06. Further Strengthening of Tight Monetary Policy For FY07, the government set an inflation target of 6. 5 percent. To achieve this, a further moderation in aggregate demand during FY07 was required as the core inflation witnessed a relatively smaller decline in FY06, indicating that demand-side inflationary pressures were strong. In this perspective, SBP further tightened its monetary policy in July 2006 raising the CRR and SLR for the scheduled banks; and its policy rate by 50 basis points (bps) to 9. 5 percent. Moreover, proactive liquidity management helped in transmitting the monetary tightening signals to key interest rates in the economy. For instance, the Karachi Inter Bank Offer Rate (KIBOR) of 6 months tenor increased from 9. 6 percent in June 2006 to 10. 02 percent at end-June 2007 and the banks' weighted average lending and deposits rates (on outstanding amount) increased by 0. 93 percentage points and 1. 1 percentage points, respectively, during FY07. In retrospect, it appears evident that monetary tightening in FY07 did not put any adverse impact on economic growth, as not only was the real GDP growth target of 7. 0 percent for FY07 was met, the growth was quite broad based. At the same time, the impact of the monetary tightening was most evident in the continued deceleration in core inflation during FY07. One measure of core inflation, the non-food non-energy CPI, continued its downtrend from YoY high of 7. 8 percent in October 2005, to 6. 3 percent at end-FY06, and to 5. 1 percent by the end of FY07. However, much of the gains from the tight monetary policy on overall CPI inflation were offset by the unexpected rise in food inflation. On the downside, however, broad money supply (M2) grew by 19. 3 percent during FY07, exceeding the annual target by 5. percentage points. Slippages in money supply growth largely stemmed from an expansion in NFA due to the higher than expected foreign exchange inflows. Equally stressful was the impact of Government borrowings from the central bank during the course of the year. The pressure from the fiscal account was due to mismatch in its external budgetary inflows and expenditures. With the privatization inflows and th e receipts from a sovereign debt offering at end-FY07, the Government managed to end the year with retirement of central bank borrowings, on the margin. By end-FYO7, SBP holdings of government papers were still around Rs 452 billion, despite a net retirement of Rs 56. 0 billion during the year. Another major aberration in FY07 emanated from the high level of SBP refinancing extended, for both working capital and long-term investment, to exporters. Aside from monetary management complexities, these schemes have been distorting the incentive structure in the economy. FY08 and Beginning of FY09: More Challenging FY08 was an exceptionally difficult year. The domestic macroeconomic and political vulnerabilities coupled with a very challenging global environment caused slippages in macroeconomic targets by a wide margin. After a relatively long period of macroeconomic stability and prosperity, the global economy faced multifarious challenges: (i) hit by the sub prime mortgage crisis in U. S in 2007, the international financial markets had been in turmoil, the impact of which was felt across markets and continents; (ii) rising global commodity prices, with crude oil and food staples prices skyrocketing; and (iii) a gradual slide in the U. S dollar against major currencies. Combination of these events induced a degree of recessionary tendencies and inflationary pressures across developed and developing countries. Policy-makers were gripped with the dual challenge of slowdown in growth and unprecedented rising inflationary pressures. Central bankers faced a demanding task of weighing the trade-off between growth and price stability. With the exception of few developed countries, most central banks showed a strong bias towards addressing the risk of inflation and responded with tightening of monetary policies. On the domestic front, the external current account deficit and fiscal deficit widened considerably to unsustainable level (8. 4 and 7. 4 percent of GDP). The subsidy payments worth Rs 407 billion by Government, which account for almost half of the fiscal deficit, shielded domestic consumers from high international POL and commodity prices and distorted the natural demand adjustment mechanism. While the government passed on price increase to consumers, the rising international oil and other importable prices continued to take a toll on the economy. Rising demand has cost the country dearly in terms of foreign exchange spent on importing large volumes of these commodities. Rising fiscal deficit and lower than required financing flows resulted in exceptional recourse of the Government to the highly inflationary central bank borrowing for financing deficit. At the same time the surge in imports persisted. As a result, inflation accelerated and its expectations strengthened due to pass through of international oil prices to the domestic market, increases in the electricity tariff and the general sales tax, and rising exchange rate depreciation. These developments resulted in a further rise in headline as well as core inflation (20 percent weighted trimmed measure) to 25 percent and 21. 7 percent respectively in October 2008. Considering the size of macroeconomic imbalances and the emerging inflationary pressures, SBP remained committed to achieve price stability over the medium term and thus had to launch steeper monetary tightening to tame the demand pressures and restore macroeconomic stability in FY09. SBP thus increased the policy rate from 13. 5 to 15%. What Needs to be Done to Improve the Effectiveness of Monetary Policy? Apart from taking policy measures to address the emerging challenges, SBP also introduced structural changes in the process of monetary policy formulation and conduct to make the monetary policy formulation and implementation more transparent, efficient, and effective. Specifically, during the last couple of years, SBP focused on †¢ Institutionalizing the process of policy formulation and conduct †¢ Stepping up movement towards a more market based credit allocation mechanism Developing its analytical and operational capacity †¢ Improving its capabilities to assess future developments to act proactively and †¢ Improving upon the communication of policy stance to the general public. However, the following areas need attention and are keys or effective monetary management. 1. Effectiveness of monetary and fiscal co-ordination would be helpful. Section 9A and 9B of the SBP Act (amended in 1994) art iculates the institutional mechanism for economic policy making and co-ordination and defines the ground rules for both the process and the policy making. However, the track record of the Monetary and Fiscal Policies Co-ordination Board (MFPCB), established in February 1994 that requires quarterly meetings of the SBP and the government, has been less than satisfactory. Furthermore, the sequencing of economy-wide projections is done in isolation of the budget and monetary policy making process, and the budget making process has not respected the monetary compulsions. With rising spending and stagnating revenues, the budget assumes at the start of the year certain recourse to the central bank rather than treat it as mere ways and means advances. . For effective analysis of developments and policy making, timely and quality information is extremely important. However, due to weaknesses in the data collection and reporting mechanism of the various agencies of the country, information is not available with desired frequency and timeliness. Also there are concerns over the quality of data. Unlike many developed and developing countries, data on quarterly GDP, employment and wages, etc is not available in case of Pakistan. Moreover, the data on key macroeconomic variables (such as government expenditure and revenue, output of large-scale manufacturing, crop estimates, etc) is usually available with substantial lags. This constrains an in-depth analysis of the current economic situation and evolving trends, and hinders the ability of the SBP to develop a forward-looking policy stance. 3. Unlike many countries, both developed and developing, there is no prescribed limit on government borrowing from SBP defined in the SBP Act or the Fiscal Responsibility and Debt Limitation (FRDL) Act 2005. Besides being highly inflationary, government borrowing from SBP also complicates liquidity management. Borrowing from the central bank injects liquidity in the system through increased currency in circulation and deposits of the government with the banks. In both cases, the impact of tight monetary stance is diluted as this automatic creation of money increases money supply without any prior notice. Moreover, access to potentially unlimited borrowings from the SBP provides little incentives to the government to put the fiscal accounts in order. Therefore, the foremost task to improve the effectiveness of monetary policy is to prohibit the practice of government borrowings from the SBP. In this regard, appropriate provisions are required to cease or limit government recourse to central bank financing through amendments in the SBP Act and the FRDL Act 2005. 4. Another issue is to make a clear distinction between exchange rate management and monetary management. Currently, there is a general perception that the State Bank is bound to keep the exchange rate at some predefined level and any movement away from this level is then considered as an inefficiency of the SBP. There is a need to understand that for an open economy, it is impossible to pursue an independent monetary and exchange rate policy as well as allowing capital to move freely across the border. Since the SBP endeavors to achieve price stability through achieving monetary targets by changes in the policy rate, it is not possible to maintain exchange rates at some level with free capital mobility. This can only be achieved by putting complete restrictions on capital movements, which is not possible. SBP's responsibility is to ensure an environment where foreign exchange flows are driven by economic fundamental and are not misguided by rent seeking speculation. 5. Finally, based on experience particularly gained during the last two months is to differentiate between liquidity management and monetary policy stance. Recently, when the banking system experienced extraordinary stress due to shallow liquidity in the system, rumor mongering heightened the general public anxiety over few banks' sustainability. Consequently, the SBP had to intervene in the market by injecting ample liquidity through various measures. In some quarters, these changes were deemed as a change in the bank's tight monetary policy stance. However, this was not the case and the bank had to clearly and repeatedly communicate that the existing stance is being continued. Later on, the bank further tightened its monetary policy. It must be understood that quite often, liquidity management can drive the market interest rates away from the direction desired under the monetary policy stance. However, this has to be temporary and ‘the interest rates are bound to move in the policy stance direction. To resolve this issue, the SBP is studying various options, including the introduction of a â€Å"Standing Deposit Facility† to keep the interbank rate within a corridor. In conclusion, it is imperative that above steps be taken urgently. Over the period, however, this needs to be complemented with much deeper structural reforms to synchronize and reform the medium term planning for the budget and monetary policy formulation process Several studies and technical assistance have provided extensive guidance in this area, but the lack of capacities and short term compulsions have often withheld such reforms. What is important is to recognize that a medium term development strategy, independently worked out, would help minimize one agency interest which has often been a source of co-ordination difficulties. It would also help the budget making process more rule based than the incrementally driven process to satisfy conflicting demands. THE RECENT DEVELOPMENTS IN MONETARY POLICY (2007-2009) The SBP has kept its tight monetary policy stance in the period July 01, 2008-April 20, 2009. The policy rate was adjusted upward in November 2008 to shave-off some aggregate demand from the economy and kept constant in January 2009. However, noticing visible signs of demand compression enabled the SBP to reduce 100 basis points on April 20, 2009. During July 01, 2008-April 18, 2009, money supply (M2) expanded by 1. 6 percent against the target of expansion of 8. 0 percent for the year and last year expansion of 8. 1 percent in the comparable period of last year. The reserve money witnessed contraction of 2. 2 percent in this period as against expansion of 10. 3 percent in the comparable period of last year. Net domestic assets (NDA) have increased by Rs. 307 billion as compared to increase of Rs. 627. 5billion in last year. However, it is showing an increase of 7. 6 percent in stock during this period, whereas, last year the growth in stock was 20. 4 percent in the comparable period. Net foreign assets (NFA) have recorded a contraction of Rs. 263. 9 billion against the contraction of Rs. 356. 4 billion in the comparable of last year [See Table-6]. {draw:frame} Government borrowing for budgetary support has recorded an increase of Rs. 240. 5 billion as compared to Rs. 336. 0 billion in the comparable period of the last year. The government has over performed against freezing the net borrowing from SBP at Rs. 57 billion in 2008-09 and the SBP financing has shown a net increase of Rs. 103. 3 billion and financing from scheduled banks witnessed a net increase of Rs. 137. 2 billion during July 01, 2008-April 18, 2009. Credit to private sector witnessed a net increase of Rs. 55. 4 billion during July 01, 2008-April 18, 2009 as compared to Rs. 359. 7 billion in the comparable period of last year. The stocks st ill went up by 9. 1 percent. SBP undertook aggressive monetary tightening during the period, further increasing the policy rate by 300 bps in two rounds. On a cumulative basis, this means a 550 bps increase during the last 18 months up to March 2009. However, the policy rate was decreased by 100 bps on April 20, 2009. These policy measures were in response to carryover of macroeconomic stresses of the preceding year and increase in real aggregate demand. Monetary tightening has worked in the right direction. Weighted average lending rate have witnessed slight decline from 15. 5 percent in October 2008 to 14. 8 percent in February 2009. Weighted average deposit rate on the other hand has increased from 6. 2 percent in October 2008 to 7. percent in February 2009 which implies narrowing of the spread amidst intensive deposit mobilization efforts on the part of the banks. The weighted average yields on 6 months T-bill has declined by almost 250 basis points to 11. 5 percent in March 2009 as against 14 percent in November and December 2008 [See Fig-2]. {draw:frame} Recent Discount Rate in Pakistan (2007-2009) During 2007-08, the SBP contin ued with tight monetary policy stance, thrice raising the discount rate and increased the Cash Reserve requirement (CRR) and Statutory Liquidity Requirement (SLR). In the light of continued inflationary buildup and increasing pressures in the foreign exchange market, the SBP announced a package of monetary measures on May 21, 2008 that included;(i) an increase of 150 bps in discount rate to 12 percent; (ii) an increase of 100 bps in CRR and SLR to 9 percent and 19 percent, respectively for banking institutions (iii) introduction of a margin requirement for the opening of letter of credit for imports (excluding food and oil) of 35percent, and (iv) establishment of a floor of 5percent on the rate of return on profit and loss sharing and saving accounts. The year 2008-09 is characterized by a reduction in CRR by 2 percent in two equal phases to help the liquidity issues of the banking system. Later on, the SBP announced a 200 bps hike in discount rate to 15 per cent on November 12, 2008 in response to persistent hike in core inflation and current account deficit in a last ditch effort to demand compression. Following a slight reversal in the mounting inflationary and demand pressures, the SBP announced a downward adjustment of policy rate by 100 bps on April 20, 2009. SBP’s tight monetary policy and rationalization of fiscal subsidies and expenditure controls are the key factors that contributed a reasonable progress towards macroeconomic stability. The private consumption grew by 5. 2 percent in real term during 2008-09 which implies that notwithstanding substantial reduction in the fiscal and current account deficits, demand pressures are still confronting monetary management. {draw:frame}

Abuse & Fraud Essay

In the present health care system, hospital practitioner joint ventures make all the interested parties subject to a complex network of regulations and law and to the scrutiny by many federal agencies including:  ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The United States Department of Health and Human services (HHS)  ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The Office of the Inspector General (OIG)  ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The Federal Bureau of Investigation and the General Accounting Office (GAO)  ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The Federal Trade Commission (FTC)  ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The department of Justice (DOJ)  ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The Internal Revenue Service (IRS) In addition to this, many hospital financial managers must thoroughly understand the complex laws and regulations that normally affect their relationship with the physicians or doctors. The Medicaid and Medicare abuse and fraud statute provides that a person who willfully and knowingly pays, offers, receives or solicits any remuneration in exchange of referring a person to the for the furnishing of any service or item, or recommending any facility paid for in whole by Medicare shall be guilty of a felony (Goldsmith, 2010). In most cases, this provision is referred to as the ‘anti kickback statute’. Compensation is defined in this statute as including bribes, rebates, kickbacks whether made indirectly or directly, covertly or overtly, in kind or in cash (McWay, 2003). The penalties for violating the anti-kickback statute are quite severe and include criminal penalties, imprisonment for up to five years and fines of up to twenty five thousand dollars (Morrison, 2009). Additionally, the office of the Inspector General, which is the investigative agent for the HHS, has the authority to enforce money penalties on any violators and to prohibit them from participating in any medical programs (Bauman, 2002). Given the extent of the abuse and fraud statute, there are many details of the law that have been stipulated in the courts that have broadly interpreted the statute (Bauman, 2002). According to the Center for Medicare & Medicaid services (2005), the leading cases indicate that if one several objectives of payments is to stimulate referrals, it is a violation of the abuse and fraud statute. Furthermore, when referrals must be the main reason of a transaction in orders to amount to a breach, referrals still need to be the sole purpose. In the year 1991, HHS released the safe harbor regulations that described eleven exemptions from the abuse and fraud statute (Altshuler, Creekpaum & Fang, 2008). Furthermore, the arrangements that satisfy the safe harbor provisions are normally protected from the scrutiny. The vast majority of arrangements between different providers, suppliers and practitioners will normally fall outside of the safe harbors because it is somewhat difficult to structure the arrangements that comply with all the conditions of the drawn provisions (Bauman, 2002). For the medial practitioners who are unfamiliar with abuse and fraud law, the practical effect of the rules may hamper the development of some innovative arrangements and practices that can be beneficial to medical programs such as Medicaid and Medicare enrollees. In addition to this, the infinite majority of health providers, suppliers and physicians who serve people with Medicare are committed to providing high quality care to their patients as well as billing the medical program only for the payments that the physicians have earned (Bauman, 2002) Many health practitioners in the health industry are of the view that any kinds of arrangements that fall outside the safe harbor provisions are illegitimate (Altshuler, Creekpaum & Fang, 2008). On the other hand, the failure to comply with these safe harbor provisions may signify that: The arrangement is not intended at all to stimulate the referral of business reimbursable under medical programs such as Medicaid or Medicare. The arrangement infringes the statute and does not meet the criteria for safe harbor protection. The arrangement may breach the statute in a less serious way. Discussion based on the applicable statutes, the Feldstein case and other cases The most known safe harbors mainly deal with investments by practitioners and providers. There are two safe harbors for investment interests: one for investments in large businesses and one for small businesses. In the large business safe harbor, the entity possesses over fifty million dollars in undepreciated net tangible assets, which are related to certain medical programs such as Medicaid. In the Feldstein’s case, there is an issue of whether physician or doctor recruitment can be immune from any legal attack because of a possible violation of abuse of laws and federal fraud. Unlike other abuse opinions and federal fraud cases, the facts of this case did not involve any kind of corruption. In addition to this, the facts of the Feldstein case are significant because they are a common occurrence in the medical field. Additionally, in this case, when the defendants acquired the control of the hospital, they had attempted to terminate the doctor’s contract because they were of the view that the doctor’s physician recruitment agreements had violated the federal fraud stipulations as well as abuse law. The doctor had refused to come to a settlement with the defendants and he then sued them for a breach of contract. In the court’s ruling, the court decided to decline all the recruitment arrangements illegal and stated that some arrangements may be permissible at some point. The issue of safe harbors arises in this point.

Behaviorism, Cognitivism and Humanism Essay

Introduction   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Behaviorism, Cognitivism and Humanism belong perhaps to the most extensively developed theories in the field of early Psychology. Their roots are said to draw from a heritage of scholarships developed by key thinkers as early as the 1900’s. And as specific facets of science, their unifying goal is to explicate human behavior neither through arbitrary and random observations nor unsubstantiated conclusions, but through a more rigorous process of â€Å"scientific investigation† (Moskowitz & Orgel, 1967, p. 107).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   This paper attempts to successfully describe the three theories cited, and thus put them in conversation with one another. In the process, this paper wishes to bring into the fore key similarities and relative differences that may be gleaned from such a presentation. Three Psychological Theories .  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Behaviorism is a theory that operates on the underlying assumption that the concrete manifestations of human behavior are nothing but the result of identifiable causes or influences. Put in other words, the core contention of behaviorism lies in understanding human behavior in the context of its reactions to various stimuli (Behaviorism, 2007). Key to this theory is operative principle of external reinforcements; i.e., behaviorism takes the nature of human behavior as sufficiently explainable through the outside forces acting on it. For instance, Ivan Pavlov in 1900 was able to demonstrate in his experiment that the â€Å"salivation reflexes† of dogs can be â€Å"controlled† using external conditioning. By associating dog feeding sessions with secondary stimuli (say, bell ringing) it was learned that dogs eventually tended to react to these â€Å"secondary† forces inasmuch as they do with primary stimuli. The idea that goes with the experiment was to establish the â€Å"prediction and control of behavior† (Wozniak, 1997). As a result, many thinkers picked up this admirable concept, and, using Pavlov’s investigation, a number of psychologists began studying the how â€Å"classical conditioning† can be applied to human beings. (Moskowitz & Orgel, 1967, p. 107). If only to mention, other notable proponents of this theory include J. Watson, B.F. Skinner, and E. Thorndlike.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Since behaviorism gives higher premium than most on the importance of looking at the external forces affecting human behavior, it has a tendency to depreciate, if not all together deny the concept of human consciousness, or internal workings of the mind (Wozniak, 1997). Behaviorism â€Å"assumes that the learner is essentially passive†, in that one’s behavior relies heavily on external forces to achieve its concrete form. In many ways, this theory takes human behavior as tabula rasa; i.e., a sheet wiped clean for external experiences to start building into. Thus, it claims that human behavior â€Å"can be explained without the need to consider internal mental states† (Behaviorism, 2007). In what appears to be a direct critique to the behaviorist theory, the Cognitive psychological theory meanwhile believes that human learning is a process that involves putting into use what already is present within the human framework. Put in other words, instead of taking the human person as a tabula rasa, adherents of the cognitive theory seem to understand a person as a black box – a repository of internal processors that enable one to achieve learning. Cognitivism was said to gain a fair amount of attention from among the diverse psychological circles in the 1960’s. And noted theorists affiliated to this theory include Merill, Reigeluth, Gagne, Briggs, Wager, among others (Cognitivism, 2007). A few significant differences may be gleaned from juxtaposing the two theories cited thus far. First, unlike behaviorism, cognitivism tends to pay closer attention to establishing inner mental workings of a person to explain human behavior. Cognitivists reject the notion that the behavioral manifestations of a human person are explainable by solely citing external factors. One can perhaps consider how human persons possess a unique manner of gaining insights apart from outside experiences. For instance, if a child were to be given Lego constructs to play with, it would be utterly difficult to explain how he or she can in the process end up building certain formation such as dolls, guns or planes if one were to only see a child from the perspective of stimulus-response perspective. If only to argue, there is no stimulus-response framework to begin with. Instead, one needs to look at the whole experience of the child from the point of view of insight building. For, according to Moskowitz and Orgel, â€Å"the ability of the organism to manipulate symbols seems to be an essential component in insightful behavior† (1967, p. 135). Second, unlike behaviorism, cognitivism does not subscribe to the concept of persons as â€Å"programmed animals† (Cognitivism, 2007). Far more critical, cognitive theorists reject any notion claiming that human persons are but passive recipients of external forces – helpless, as they were, in the entire process of behavior formation or learning process. On the contrary, cognitive theorists believe that human persons are very much involved in their learning process and progress, inasmuch as they take part and are highly responsible in their actions. In sum, cognitivists take â€Å"mental processes such as thinking, memory, knowing, and problem-solving† as issues of paramount importance (Cognitivism, 2007). It can be noted that the psychological theories thus far cited involve attempts to resolve the tension between external and internal forces affecting human behavior. In view of the foregoing discussions, it seems that the Humanistic psychological perspective can prove to be a theory that can somewhat integrate the conflicting claims of both the Behaviorist and Cognitivist theories. The basic contention of Humanistic perspective lies in seeing human persons as organisms drawn towards motivational learning. Popular proponents of this theory include A. Maslow, K. Rogers, and M. Knowles (Humanist Theories, 2007). Under this scheme, a person’s behavior is taken within the context of his or her aspirations, motivations, needs, and values. And these aspects, if only to argue, stem from the a person’s interaction with his or her environment, coupled with an inherent capacity to appropriate these influences into one’s own worldview (Moskowitz & Orgel, 1967, p. 340). Like Behaviorism, this theory affirms the crucial role of external influences in the manner a person comes up with value system. Like Cognitivism, this theory also affirms the fact that learning uses â€Å"reflection†¦(as) guides for active experimentation and the choice of new experience† (Humanistic Theories, 2007). Unlike the two theories however, Humanistic psychology does not confine itself to a more restricted approach to understanding human behavior. Key to understanding this theory therefore lies in the concept of self-appropriation – a process that involves putting into a successful integration both the external and internal aspects of human behavior. Conclusion This paper now ends with a thought that indeed, the three psychological theories that were discussed hereinabove do manifest distinctive differences. But two strains of similarities can be drawn between and among them nevertheless. The first points to the fact that all the above cited theories employ scientific methods in arriving at their sacred contentions. In fact, like most behavioral sciences, Behaviorism, Cognitivism and Humanism rely heavily on scientific methodologies to substantiate their proposed theories. Secondly, it needs to be acknowledged that these theories all contribute to the furthering of knowledge pertinent to the science of human behavior. Despite their differences, their contribution to the already rich heritage of the science of psychology seems very patent, if not all together undeniable. References Learning Theories Knowledgebase. (2007). â€Å"Behaviorism†. Retrieved from,   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   < http://www.learning-theories.com/category/behaviorist-theories> Learning Theories Knowledgebase. (2007). â€Å"Cognitivism†. Retrieved from,   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Learning Theories Knowledgebase. (2007). â€Å"Humanist Theories†. Retrieved from,   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Moskowitz, M. and Orgel, A. (1969). General Psychology. A Core Text in Human Behavior.   Ã‚  Ã‚   Boston, Houghton Mifflin Company. Wozniak, R. (1997). â€Å"Behaviourism: The Early Years†. Retrieved from,   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  

Motivation vs Employee Performance

This chapter examined relevant literature from works that have already been done on the topic. The literature review was structured in the following form: Introduction, motivation, the early theorists of motivation, and contemporary theorists of motivation. Area of Study 1:MotivationMotivation is defined as the process that initiates, guides and maintains goal-oriented behaviors. Motivation is what causes us to act, whether it is getting a glass of water to reduce thirst or reading a book to gain knowledge. It involves the biological, emotional, social and cognitive forces that activate behavior. In everyday usage, the term motivation is frequently used to describe why a person does something. For example, you might say that a student is so motivated to get into a clinical psychology program that she spends every night studying.Psychologists have proposed a number of different theories of motivation, including drive theory, instinct theory and humanistic theory. Motivation is the for ce that initiates, guides and maintains goal-oriented behaviors. It is what causes us to take action, whether to grab a snack to reduce hunger or enroll in college to earn a degree. The forces that lie beneath motivation can be biological, social, emotional or cognitive in nature. Researchers have developed a number of different theories to explain motivation. Each individual theory tends to be rather limited in scope. However, by looking at the key ideas behind each theory, you can gain a better understanding of motivation as a whole.1.1. BonusBonus is the extra amount in money, bonds, or goods over what is normally due. The term is applied especially to payments to employees either for production in excess of the normal (wage incentive) or as a share of surplus profits. The wage incentive was designed during the late 19th cent. not only to increase production but to reward the more skillful and more energetic workers. The hourly or weekly wage was to be figured as payment for a st andard rate of work, and the workers who exceeded that standard were to receive a bonus.However, the system fell into disfavor with labor unions because rate cutting was often resorted to when bonuses became too high. Industrial engineers of the 1930s realized that definite standards of  accomplishment and quality must be set to make wage incentives workable. Many firms have used an annual bonus plan for distributing abnormal profits to employees. The term is also applied to payments to former servicemen in addition to regular pensions and insurance.1.2. IncrementSalary increments are often expressed as a percentage of an employee's overall base pay. An increment usually represents a portion of what the employee earns per year. Employers use increments to increase or decrease base salaries or to award bonuses. Employees use them as a benchmark to either negotiate a pay increase or a starting salary with a new employer. When an employer offers a starting salary that is 5 percent be low average, a potential employee might counter with a 5 percent increase. Public employees typically receive annual raises based on salary increments.1.3. Better FacilitiesDesigning a workplace that provides opportunities for the broadest potential workforce makes good business sense. This allows employers to select the most qualified people from the largest possible applicant pool. It may also improve work efficiency, employee productivity, workplace safety and the quality of work. The workforce will likely represent a wide range of demographics and abilities. Most workers spend much of their time at the workplace.Therefore, many design considerations for workplace facilities may be different than other types of built environments that are used by fewer people over shorter time periods. Job performance is best when the environment neither under-stimulates nor over-stimulates the employee. Lighting, the thermal environment and noise are the key environmental variables to consider. The most desirable levels of each will not only vary across work environments and people, but also will vary for different job requirements. It is therefore important for the designer to have a good understanding of the work requirements to design effective environments.Area of Study 2: Employee performance Employee performance is basically related performance appraisal in  terms of and individual goals. Employee Performance means the level at which your employees are performing. Employee performance is more than just completing the â€Å"dreaded† annual review in order to get the annual bonus or pay increase. It is an ongoing activity with the ultimate goal of improving both individual and corporate performance.Employees set their objectives for the upcoming review period; monitor their progress against those objectives, and develop the right set of skills and objectives for the future. Teamwork is the ability to work together toward a common vision. The ability to direct individual accomplishments toward organizational objectives. It is the fuel that allows common people to attain uncommon results. Andrew Carnegie (1835 – 1919)2.1. The appraisal process is made up of three stages: Goal setting – set goals and objectives for the upcoming review period Evaluation – assess the employee's performance against the established goals and objectives Improve performance and skill development – career planning, training, personal development, coaching, mentoring and more.2.2. Why should an organization consider implementing an Employee Performance Management (EPM) solution? Automation – save time and money by automating this potentially labour intensive activity. Not only will organizations become more efficient, they will be able to improve on their HR reporting and analytics. Goal Alignment – the goals and objectives of the organization can be cascaded down to every level of the organization. Everyone in the organiza tion will be working towards a common objective. Remote Workers- technology and the nature of the work force has made alternative working arrangements a reality. Employees no longer have to physically be in the office in order to do their job.2.3. With an EMP solution, managers and employees can collaborate on their performance objectives.Flexibility – EMP solutions can be configured to meet the unique needs of every organization. Competency Management – every organization has specific competencies that are important for the company, departments and roles that  can easily be managed using EMP software. Talent Management – EPM is an important part of the Talent Management Process. It helps to identify known competencies for success, develop succession plans, pinpoint talent gaps, and establish compensation scales. The employee performance management solution allows organizations to manage their talent in order to maximize their human resources in order to gain a competitive advantage.Motivation and Employee PerformanceAccording to Dubin (2002), â€Å"Motivation is the complex of forces starting and keeping a person at work in an organization. Motivation is something that puts the person to action, and continues him in the course of action already initiated†. Motivation refers to the way a person is enthused at work to intensify his desire and willingness to use his energy for the achievement of organization’s objectives. It is something that moves a person into action and continues him in the course of action enthusiastically.Motivation is a complex phenomenon, which is influenced by individual, cultural, ethnic and historical factors. Motivation can be defined as â€Å"a series of energizing forces that originate both within and beyond an individual’s self†. These forces determine the person’s behavior and therefore, influence his/her productivity (Jackson, 1995). According to De Cenzo et al,(1996), peo ple who are motivated use a greater effort to perform a job than those who are not motivated. In other words this means that all thinkable factors of physical or psychological aspects that we interact with, leads to a reaction within our self or of the entire organization.According to Latham and Ernest (2006) motivation was in the beginning of the 1900s thought only to be monetary. However, it was discovered during the 20th century that to motivate employees, there are more factors than just money. In their view, employees‟ satisfaction with their job is an important indicator for a good job performance and happy employees are productive. To them, motivation is a psychological factor and is affected by the workers‟ mental attitude and health. Therefore, in order to be motivated, a person needs to have certain basic needs fulfilled. If these needs are lacking, a person’s self-esteem and self-actualization cannot develop.This could  result in lack of interest to p rogress and develop, both professionally and personally. There are several theories of human needs, which are the foundation of motivation. CIPD‟s Reward Survey (2005a) reveals that human resource (HR) and line managers fail to develop reward strategies for their employees. Guest and Conway, (2005) established their suggestions on the basis of CIPD‟s survey on employee welfare and emotional convention that managers fail to motivate and improve the performance of people whom they manage.The familiar notion that people leave managers, not organizations, suggests that the organizations concerned, were subjected to failure for holding managers responsible to understand their role in motivating people and to manage performance as effectively as they can. The biggest challenge for HR managers is to push line managers to manage and develop people.According to Butkus and Green (1999), motivation is derived from the word â€Å"motivate†, means to move, push or persuade to act for satisfying a need. Baron (1983) defined motivation in his own right. He says that â€Å"motivation is a set of processes concerned with a kind of force that energizes behavior and directs it towards achieving some specific goals. Many writers have expressed motivation as goal directed behavior. This objective nature of motivation is also suggested by Kreitner and Kinicki (2001) put forward that motivation represents â€Å"those psychological processes that cause the stimulation, persistence of voluntary actions that are goal directed†.A motivated person have the awareness of specific goals must be achieved in specific ways; therefore he/she directs its effort to achieve such goals (Nel et al., 2001). It means that motivated person is best fit for the goals that he/she wants to achieve, as he/she is fully aware of its assumptions. Therefore if the roles of managers are assumed to successfully guide employees towards the organizational agenda of achieving its objective s, then it is very important for them to educate and understand those psychological processes and undertakings that root cause the stimulation, direction of destination, determination and persistence of voluntary actions (Roberts, 2005). Mo (1992) differentiates between the terms „movement‟ and motivation‟.Movement carries out the task for compensation, remuneration in humans mind to act, while the term motivation is stapled with total involvement of a person in its tasks to carry out with excitements and  happiness. In simple words, movement compels a person to carry out tasks, while motivation is self-realized jubilant and pleasing act of carrying out specific tasks. The researcher emphasizes on motivation which is basis for the success because the person involved in it is very happy and voluntarily excited not for compensation. Motivation is reason for individuals‟ accomplishments to carry out the project (La Motta 1995).There are many aspects of motivat ion in an organization; a person motivated by those aspects may not necessarily motivate another person, because there are many different factors that affect motivation for different level employees. On reaching the understanding and believing that people (employees) are naturally motivated, an organization simply provide the environment for their motivation to be enhanced and improved (Baron, 1983). It means that an organization is a better environment and working atmosphere provider, it only needs to believe that the people have the motivational behaviour. Lawler (2003) noted that different theories questioning why people prefer certain careers, why they seek particular rewards and why they feel satisfied or dissatisfied with their work and rewards.These are some of the resonating questions that create so many assumptions and hypotheses to be researched. It is widely recognized in management circles, that motivation plays a role in keeping an employee performing his or her best in any task assigned. Assessing La Motta and Baron, views on the concept of motivation makes one wonder why incentives provided to workers did not yield intended purpose. This is as a result of dynamics of individual needs and humans can never be satisfy in that, when one need is catered for responded, the worker shifts to another need and this then becomes a challenge hence the call for further research on the issue of motivation.An individual's motivation is influenced by biological, intellectual, social and emotional factors. As such, motivation is a complex, not easily defined, intrinsic driving force that can also be influenced by external factors. Every employee has activities, events, people, and goals in his or her life that he or she finds motivating. So, motivation about some aspect of life exists in each person's consciousness and actions. The trick for employers is to figure out how to inspire employee motivation at work. To create a work environment in which an employee i s motivated about  work, involves both intrinsically satisfying and extrinsically encouraging factors.Employee motivation is the combination of fulfilling the employee's needs and expectations from work and the workplace factors that enable employee motivation – or not. These variables make motivating employees challenging. Employers understand that they need to provide a work environment that creates motivation in people. But, many employers fail to understand the significance of motivation in accomplishing their mission and vision. Even when they understand the importance of motivation, they lack the skill and knowledge to provide a work environment that fosters employee motivation. Here are thoughts about encouraging and inspiring employee motivation at work.3.1. Factors to Encourage MotivationThese are some of the factors that are present in a work environment that many employees find motivating. Management and leadership actions that empower employees,  Transparent a nd regular communication about factors important to employees, Treating employees with respect,  Providing regular employee recognition,  Feedback and coaching from managers and leaders,  Above industry-average benefits and compensation,  Providing employee perks and company activities, and  Positively managing employees within a success framework of goals, measurements, and clear expectations.Every person has different reasons for working. The reasons for working are as individual as the person. But, we all work because we obtain something that we need from work. The something obtained from work impacts morale, employee motivation, and the quality of life. To create positive employee motivation, treat employees as if they matter – because employees matter. These ideas will help you fulfill what people want from work and create employee motivation.3.2. What People Want From Work Some people work for personal fulfillment; others work for love of what they do. Others work to accomplish goals and to feel as if they are contributing  to something larger than themselves. The bottom line is that we all work for money and for reasons too individual to assign similarities to all workers. Learn more.3.3. How to Demonstrate Respect at Work Ask anyone in your workplace what treatment they most want at work. They will likely top their list with the desire to be treated with dignity and respect. You can demonstrate respect with simple, yet powerful actions. These ideas will help you avoid needless, insensitive, unmeant disrespect, too. Read more about respect.3.4. Provide Feedback That Has an Impact Make your feedback have the impact it deserves by the manner and approach you use to deliver feedback. Your feedback can make a difference to people if you can avoid a defensive response.3.5. Top Ten Ways to Show Appreciation You can tell your colleagues, coworkers and staff how much you value them and their contribution any day of the year. Trust me. No occa sion is necessary. In fact, small surprises and tokens of your appreciation spread throughout the year help the people in your work life feel valued all year long.3.6. Trust Rules: The Most Important Secret Without it, you have nothing. Trust forms the foundation for effective communication, employee retention, and employee motivation and contribution of discretionary energy, the extra effort that people voluntarily invest in work. When trust is present, everything else is easier. Learn more.3.7. Provide Motivational Employee Recognition You can avoid the employee recognition traps that: single out one or a few employees who are mysteriously selected for the recognition; sap the morale of the many who failed to win, place, or even show; confuse people who meet the criteria yet were not selected; or sought votes or other personalized, subjective criteria to determine winners. Learn more.3.7.1. Employee Recognition Rocks Employee recognition is limited in most organizations. Employees complain about the lack of recognition regularly. Managers ask, â€Å"Why should I recognize or thank him? He’s just doing his job.† And, life at work is busy, busy, busy. These factors combine to create work places that fail to provide recognition for employees. Managers who prioritize employee recognition understand the power of recognition.3.7.2. Top Ten Ways to Retain Your Great Employees Key employee retention is critical to the long term health and success of your business. Managers readily agree that their role is key in retaining your best employees to ensure business success. If managers can cite this fact so well, why do many behave in ways that so frequently encourage great employees to quit their job? Here are ten more tips for employee retention.3.7.3. Team Building and Delegation: How and When to Empower People Employee involvement is creating an environment in which people have an impact on decisions and actions that affect their jobs. Team building occ urs when the manager knows when to tell, sell, consult, join, or delegate to staff. For employee involvement and empowerment, both team building and delegation rule. Learn more.3.7.4. Build a Mentoring Culture What does it take to develop people? More than writing â€Å"equal opportunity† into your organization’s mission statement. More than sending someone to a training class. More than hard work on the part of employees. What development does take is people who are willing to listen and help their colleagues. Development takes coaches, guides and advocates. People development needs mentors. Learn more.

Amounts, Percents, and Bases of Percent Problems

Amounts, Percents, and Bases of Percent Problems In early mathematics, students come to understand percents as an amount of the base sum of an item, but the term per cent simply means per hundred, so it can be interpreted  as a portion out of 100, including fractions and sometimes numbers higher than 100. In percent problems in mathematics assignments and examples, students are often asked to identify the three core parts of the problem- the amount, the percent, and the base- wherein the amount is the number taken out of the base by being reduced by a certain percentage. The percent symbol is read twenty-five percent and simply means 25 out of 100. It is useful to be able to understand that a percent can be converted to a fraction and a decimal, meaning that 25 percent can also mean 25 over 100 which can be reduced to 1 over 4 and 0.25 when written as a decimal. Practical Uses of Percentage Problems Percentages may be the most useful tool of early mathematics education for adult life, especially when you consider that every mall has 15 percent off and half off sales to entice shoppers to purchase their wares. As a result, its critical for young students to grasp the concepts of calculating the amount reduced if they take a percentage away from of a base. Imagine youre planning a trip to Hawaii with you and a loved one, and have a coupon thats only valid for the off-season of travel but guarantees 50 percent off the ticket price. On the other hand, you and your loved one can travel during the busy season and really experience the island life, but you can only find 30 percent discounts on those tickets. If the off-season tickets cost $1295 and the on-season tickets cost $695 before applying the coupons, which would be the better deal? Based on the on-season tickets being reduced by 30 percent (208), the final total cost would be 487 (rounded up) while the cost for the off-season, being reduced by 50 percent (647), would cost 648 (rounded up). In this case, the marketing team probably expected people would jump at the half-off deal and not research deals for a time when people want to travel out to Hawaii the most. As a result, some people wind up paying more for a worse time to fly! Other Everyday Percent Problems Percents occur almost as frequently as simple addition and subtraction in everyday life, from calculating the appropriate tip to leave at a restaurant to calculating gains and losses in recent months. People who work on commission  often get around 10 to 15 percent of the value of the sale they made for a company, so a cars salesman who sells a one hundred thousand dollar car would get between ten and fifteen thousand dollars in commission from his sale. Similarly, those who save a portion of their salary for paying insurance and government taxes, or wish to dedicate part of their earnings to a savings account, must determine which percentage of their gross income they want to divest to these different investments.