Equality by Differences Essay -- essays research papers fc

Equality by Differences   Ã‚  Ã‚  Ã‚  Ã‚  The end of the Civil War marked the destruction of the institution of slavery and thus, at least officially, the equality of all races within America. However, people used to being either slaves or masters for many years simply do not change out of their former roles overnight. In the decades following the Civil War, the legacy of slavery was very apparent, as blacks struggled with both poverty and second-class citizen status. True equality had yet been achieved. Such was the aim of writers like W.E.B Dubois and Booker T. Washington, who sought to put both level the social, political, and economic playing fields for both blacks and whites. Although both Dubois and Washington had similar ends, they disagreed on the means. Washington considered blacks’ poverty the more basic problem, claiming that once blacks could establish themselves economically within society, recognition as political and cultural equals would follow. However, Dubois took the opposite sta nce by saying that the training of blacks for economic usefulness was no better than what had occurred during slavery, and that before all else, blacks as a race must assert their unique identity and cultural integrity.   Ã‚  Ã‚  Ã‚  Ã‚  Booker T. Washington stressed in his article, â€Å"The Awakening of the Negro†, the importance of blacks being able to economically support themselves. By proving themselves as productive members of society, blacks could win the approval of whites, and slowly but surely gain recognition as equals. No longer would blacks be considered a sub-human people, but a people that white people saw as worthy of respect and admiration. By using their status as a free people to integrate themselves into the economic life of America, blacks could become the providers of many goods and necessities to whites. By becoming a vital cog in the economic machine, blacks could then become a social and political force that whites could no longer ignore or dismiss. This is the rationale for Washington as he stresses industrial training in his Tuskegee Institute: â€Å"we find that as every year we put into a Southern community colored men who can start a brick-yard, a sawmill, a tin-shop, or a printing-office, -- men who produce something that makes the white man partly dependent upon the Negro, instead of all the dependence being on the... ...p;  Ã‚  Ã‚  Ã‚  The two writers’ theories were applied in real life, as Washington set up the Tuskegee Institute to help in the economic training of black persons in the South, while Dubois formed the NAACP to organize black people as a group and race. Both Dubois and Washington had logical explanations of their positions, and the fruits of their beliefs and work are evident today, as race relations continue to improve and the drive for true equality among Americans of every color pushes forth. Works Cited Du Bois, W.E.B. â€Å"Of Our Spiritual Strivings.† Making Connections. McGraw-Hill:   Ã‚  Ã‚  Ã‚  Ã‚  Boston, 2001. Du Bois, W.E.B. â€Å"Of the Training of Black Men.† The Atlantic Monthly. 12 February 1997. . Washington, Booker T. â€Å"The Awakening of the Negro.† The Atlantic Monthly. 12 February 1997. . Washington, Booker T. â€Å"The Case of the Negro.† The Atlantic Monthly. 12 February   Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  1997. .

The Difficulty of Teaching English :: Teaching Education

The Difficulty of Teaching English   Ã‚  Ã‚  Ã‚  Ã‚  Ã¢â‚¬Å"I decided to become a teacher because I thought that I could do it better then my teachers did. I quickly learned that teaching isn’t as easy as I thought it would be.† Dr. Proser quickly learned that teaching English would be as easy as he thought it may have been. He may be a better teacher then his were, many CHS students would agree, but also found out that why it was so hard to teach English. There are many reasons why teaching English is difficult. First and major reason is the constant changing, and new words that are being brought into the language. While many of these words that are being are classified as slang, these words may become more and more common. In addition, many of the forms of languages that were used in the writing that students read are no longer used. Also, the change in styles of writing which have occurred make it hard for any student to completely understand what each writer is trying to say. Thousands of new words are brought into the English language each year. Just a few examples are dude, chic, cool, homes, and tubular. â€Å"Dude was brought into by many of the hippies of the sixty’s. Dude has many means, a person who someone is referring to can be taken into contexts as awesome.† When many people refer to a chic, they are no longer talking about a baby chicken, but a female who is found somewhat attractive. This word also becomes very popular during the sixties. Homes and tubular is probably the most recent of slang words. Homes is mostly used by gang-bangers and blacks of the southern area. When people say homes they are referring to one of their male friends. Not just a friend, but a male friend who would fight for the person. Tubular is just a new word for awesome or cool. It means really sweet (high quality of awesome) or awesome. In addition, words are used with a different context then before. Many new words are created this in America. The words sweet and fine have taken some of the largest changes in context of words. â€Å"Sweet no longer means have a sugar taste or pleasing to the senses.† If one was to ask a teenage what sweet meant to them, they would probably tell â€Å"really nice or awesome.† â€Å"The word fine has also completely change in context.

Tan Sri Syed Mokhtar Al-Bukhary

Early life Syed Mokhtar al-Bukhary was born into a mid-low class Malay family; whose house was without necessities and luxuries. His highest education was only until form five, and he never went to university. A whole lot of his knowledge and experience was gained through his own entrepreneurship experience during his youth time. Due in part his family's mediocre-to-poor background, Syed Mokhtar al Bukhary had to step into the working world in his early life, while pursuing his primary and secondary studies. Syed Mokhtar helped his mother planting and selling vegetables in the market and also selling roti canai. His numeric knowledge was used to help his father in doing daily book keeping. After finishing school, Syed Mokhtar helped his father in breeding cow business but only to see the business washed away by foot and mouth disease. Nevertheless, he took over the business and start over by selling meats. He then move on to packaging the meats and start selling them wholesale. His determination paid off and the business started to take off. Career Syed Mokhtar and Zainal started his business in Kedah in the 1990s dealing in rice. More success followed and he moved to rice trading business. He worked even harder after awarded the rice trading license from Lembaga Padi Negara, and was later awarded successions of supplier contract government-linked corporations as partner with Zainal Hatim Hj Ambia Bukhary. As his determination starting to skyrocket, he quickly moved to expand into diversification of other businesses. His next big move was in the logistics business, with initial goal to transport their trading materials. Today, his business empire has grown into areas such as plantation, property development, construction, engineering, power generation, infrastructure and ports. He owns 51. 8% share in Malaysian Mining Corporation via his wholly owned company, Syarikat Impian Teladan Sdn. Bhd. Tan Sri Syed Mokhtar and Zainal Hatim personally owns SKS Ventures, which was awarded the task of building the site for 2100MW coal-fired power station at Tanjung Bin, Johor. Tan Sri Syed Mohktar has a 32% share in PERNAS through his own company, Syarikat Ratu Jernih. Syarikat Perdana Padu Sdn. Bhd. and Corak Kukuh Sdn. Bhd. Tan Sri Syed Mokhtar and Zainal are Board Members of Syarikat Bina Puri Holdings Berhad, whereby, on his own, he has 7. 34% share. Apart from these, Tan Sri Syed Mokhtar and Zainal has varied interest in a number of companies, both in Malaysia as well as abroad. Charity His philanthropic values were nurtured from the age of 23 when he started a small business dealing in rice. When he received his first monthly income of RM1,500, his mother had told him to donate half of it to the poor. [3] From 1996 to 2006, his foundation has contributed almost RM1bil to charity, although his total income is probably in multiples of that figure. He has humanitarian projects in Asia and Africa, including rebuilding the lives of Afghan refugees, Pakistan's ear's tsunami victims and is now working to establish an AIDS hospital in Uganda. Among the foundation's initiatives are the Albukhary Tuition Programme for poor underachievers and the Albukhary Scholarship Programme for poor high achievers. Recognition In appreciation of his enormous services and contributions, he was bestowed with several awards, which among others, include the Panglima Setia Mahkota (P. S. M. ) by His Majesty Seri Paduka Baginda Yang di-Pertuan Agong, which carries the title Tan Sri and the Dato' Setia Mahkota Kedah (D. S. D. K. by HRH The Sultan Kedah, which carries the title Dato'. On 10 January 2008 or 1st Muharram 1429 Hijra he was announced and awarded as â€Å"Tokoh Ma'al Hijrah† by The Yang Di Pertuan Agong of Malaysia in recognition of his contribution to nation building and also Controversies A number of companies controlled by Syed Mokhtar have come under attack for development activities on greenfield sites. For example, the clearance of mangroves for the development of Johor Port has led to some criticisms from local environm ental groups. 4] He has also been identified as a major beneficiary of political connections that have given his subsidiary companies monopoly control over crucial Malaysian sectors, including rice, power and ports. Started out in the â€Å"bowl of Malaysia† as a rice trader. Later got government backing. Today controls Malaysia Mining Corporation (MMC); has stakes in Malaysia's Johor Port; the country's largest independent power producer Malakoff; and natural gas distribution company Gas Malaysia. Has invested in MPH (a book retailer in Singapore and Malaysia). He's contributed to a number of Islamic schools, mosques and Islamic arts.

Maslow’s Hierarchy of Needs Essay

1)Explain the motivation problem with the hourly-paid employees in this organization in terms of the content models of motivation. What are the other things that the human resources manager is referring to in speaking of things besides money, conditions, and fringe benefits that are needed to motivate employees? The first theory that is briefly presented is Maslow’s hierarchy of needs. After which, this is linked to the needs of Tom, Rajina, and Harry. Maslow’s Hierarchy of Needs Perhaps, the most famous theory of satisfaction and motivation was developed by Abraham Maslow (1954 in Loop, 1994). Maslow believed that employees would be satisfied with their jobs at any given point in time if certain needs were met. Maslow believed that there are five major types of needs and these needs are hierarchical – that is, lower level needs must be satisfied before an employee will be concerned with the next level of needs. Basic biological needs. Maslow thought that an individual first seeks to satisfy basic biological needs for food, air, water, and shelter. An individual who does not have a job, is homeless, and is on the verge of starvation will be satisfied with any job as long as it provides for these basic needs. When asked how well they enjoy their job, people at this level might reply, â€Å"I can’t complain, it pays the bills. † Safety needs. After the basic biological needs have been met, a job that merely provides food and shelter will no longer be satisfying. Employees then become concerned about meeting their safety needs. That is, they may work in an unsafe coal mine to earn money to ensure their family’s survival, but once their family has food and shelter, they will remain satisfied with their jobs only if their workplace is safe. Safety needs have been explained to include psychological as well as physical safety. Psychological safety – often referred to as job security – can certainly affect job satisfaction. For example, public sector employees often list job security as a main benefit to their jobs – a benefit so strong that they will stay in lower paying public sector jobs rather than take higher paying, yet less secure, jobs in the private sector. Social needs. Once these first two need levels have been met, employees will remain satisfied with their jobs only when their social needs have been met. Social needs involve working with others, developing friendships, and feeling needed. Organizations attempt to satisfy their employees’ social needs in a variety of ways. Company cafeterias provide workers the place and opportunity to socialize and meet other employees, company picnics allow families to meet one another, and company sports programs such as bowling teams and softball games provide opportunities for employees to play together in a neutral environment. Ego needs. When social needs have been satisfied, employees concentrate next on meeting their ego needs. These are needs for recognition and success, and an organization can help to satisfy them through praise, salary increases, and publicity. Ego needs can be satisfied in many ways. For example, many organizations use furniture to help satisfy ego needs. The higher the employee’s position, the better his office furniture. Self-actualization needs. Even when employees have friends, have earned awards, and are making a relatively high salary, they may not be completely satisfied with their jobs because their self-actualization needs may have not been satisfied yet. These needs are the fifth and final level of Maslow’s needs hierarchy. Self-actualization may be best defined by the US Army’s recruiting slogan, â€Å"be the best that you can be. † An employee striving for self-actualization wants to reach her potential in every task. Thus, employees who have worked within the same machine for 20 years may become dissatisfied with their jobs. They have accomplished all that they can with that particular machine and now search for a new challenge. If none is available, they may become dissatisfied (Knoop, 1994). In the case study, it has been pointed out that Tom does not seem to be simply motivated by money alone, suggesting that he has probably gone beyond the basic biological needs. There should be effort on the part of his supervisor to look for esteem or self-actualization needs, perhaps. One option is for his job to be enriched. This is also true in the case of Rajina who does have loyalty to the company, but is not too assertive. She may be asked to engage in activities that will increase her self-esteem. Finally, Tom is easily motivated by monetary rewards, and may be rewarded and motivated by these. Still another theory is the two factor theory of Herzberg. Two-factor Theory Still another needs theory, which reduces the number of needs to two, was developed by Herzberg. He believed that job-related factors can de divided into two categories, motivators and hygiene factors – thus the name two-factor theory. Hygiene factors are those job-related elements that results from but do not involve the job itself. For example, pay and benefits are consequences of work but do not involve the work itself. Similarly, making new friends may result from going to work, but it is also not directly involved with the tasks and duties of the job. Motivators are job elements that do concern actual tasks and duties. Examples of motivators would be the level of job responsibility, the amount of job control, and the interest that the work holds for the employee. Herzberg believed that hygiene factors are necessary but not sufficient for job satisfaction and motivation. That is, if a hygiene factors is not present at an adequate level (e. g. the pay is too low), the employee will be dissatisfied. But if all hygiene factors are represented adequately, the employee’s level of satisfaction will only be neutral. Only the presence of both motivators and hygiene factors can bring job satisfaction and motivation. Herzberg’s theory is one of those theories that makes sense but has not received strong support from research. In general, researchers have criticized the theory because of the methods used to develop the two factors as well as the fact that few research studies have replicated the findings obtained by Herzberg and his colleagues (Knoop, 1994). McClelland’s Needs Theory The final needs theory was developed by McClelland (1961 in Knoop, 1994) and suggests that differences between individuals stem from the relationship between a job and each employee’s level of job satisfaction or motivation. McClelland believed that employees differ in their needs for achievement, affiliation, and power. Employees who have a strong need for achievement desire jobs that are challenging and over which they have some control, whereas employees who have minimal achievement needs are more satisfied when jobs involve little challenge and have high probability of success. In contrast, employees who have a strong need for affiliation prefer working with and helping other people. These types of employees are found more often in people-oriented service jobs than in management or administration (Smither & Lindgren, 1978). Finally, employees who have a strong need for power have a desire to influence others rather than simply be successful. Research has shown that employees who have a strong need for power and achievement make the best managers (Stahl, 1983) and that employees who are motivated most by their affiliation needs will probably make the worst managers. It is apparent from both theories that Tom, Rajina and Harry may have need for hygiene factors to increase their productivity. This means that management must offer motivators to retain them or to motivate them to work more. 2)Building on the response to Question 1, explain the motivation of the hourly-paid employees in this company in terms of the process models of motivation. Based on the information provided by the confidential interviews, what would you guess are some of the expectancies, valences, and inequities of the hourly-paid employees of this company? How do these compare to those of Pat (the Director of Manufacturing and Operations)? Based on Vroom’s expectancy theory, Tom, Rajina and Harry have varying valences, expectancies and instrumentality. For example, in the case of Tom, values inspiration and motivation – which are intangibles. However, he is not motivated because he does not receive this from the company. He also does not believe that exerting more effort at work would allow him to receive such inspiration. In the case of Rajina, she has a high need for esteem, which she does not experience because she does not know to advertise her efforts to colleagues. Recognition is what may be given to her to compensate for her efforts and loyalty. There is no direct link from her perspective, of exerting more effort at work, and receiving such recognition as reward. Finally, Tom puts great premium on monetary rewards and benefits. However, based on the perceptions of hourly paid employees in general, there is no significant difference between those who work hard and those who contribute little. A compensation and bonus scheme reflective of relative contribution must be established to motivate employees like him. Based on these information, how can management leverage on the motivation of employees to enable them to attain higher productivity? Individual differences theory postulates that some variability in job satisfaction is due to an individual’s personal tendency across situations to enjoy what she does. Thus, certain types of people will generally be satisfied and motivated regardless of the type of job they hold (Weaver, 1978). The idea also makes intuitive sense. We all know that people who constantly complain and whine about every job they have, and we also know people who are motivated and enthusiastic about every job or task. First, we should be aware of the fact that there are several factors that affect our hourly paid employees’ satisfaction. Apart from money and fringe benefits that motivate employees like Harry, personality is another factor to consider. Whether the consistency in job satisfaction is due to genetic or environmental factors, there appears to be a series of personality variables that are related to job satisfaction. That is, certain types of personalities are associated with the tendency to be satisfied or dissatisfied with one’s job. Judge et al. (1998) have hypothesized that these personality variables are related and involve people’s outlook on life (affectivity), view of their self-worth (self-esteem), ability to master their environment (self-efficacy), and ability to control their environment (external vs. internal locus of control). People prone to be satisfied with their jobs have high self-esteem, high self-efficacy, high positive affectivity, and an internal locus of control. Research supporting this view has come from Judge et al. 1998), who found a significant correlation between a combination of these four variables and job satisfaction, and from Garske (1990), who found that employees with high self-esteem are more satisfied with their jobs than are employees low in self-esteem. Results consistent with the core evaluation theory were reported by Dubin and Champoux (1977), who found that some people are happier in their jobs than people without this focus. Moreover, the degree to which they are satisfied with their lives is also another determinant of their motivation on the job. Judge et al. 1998), Judge and Watanabe (1993), and Tait et al. (1989) have theorized not only that job satisfaction is consistent across time but that the extent to which a person is satisfied with all aspects of her life (e. g. marriage, friends, job, family, geographic location) is as well. Furthermore, people who are satisfied with their jobs tend to be satisfied with life. These researchers found support for their theory, as their data indicate that job satisfaction is significantly correlated with life satisfaction. Thus, people happy in life tend to be happy in their jobs and vice versa. Individual differences theories postulate that some employees are more predisposed to being motivated than others. Such things as genetics and affectivity are involved in the extent to which some people tend to always be satisfied with their jobs and others always dissatisfied. However, rather than genetics and affectivity, self-esteem, need for achievement, and intrinsic motivation tendency are the individual differences most related to work motivation. To be able to address hourly employees’ intangible needs, there must be much effort on management’s part to increase employees’ self-esteem. These may not be too applicable for Harry who seems to be more motivated by basic needs, i. e. money and fringe benefits. There are various ways of carrying this out, as follows: Employees who can attend workshops or sensitivity groups in which they are given insights into their strengths. It is thought that these insights raise self-esteem by showing the employee that he has several strengths and is a good person. Management also ought to provide hourly paid employees with experience on success. With this approach, an employee is given a task so easy that he will almost certainly succeed. It is thought that this success increases self-esteem, which should increase performance, then further increase self-esteem, then further increase performance, and so on. This method is based loosely on the principle of self-fulfilling prophecy, which states that an individual will perform as well or as poorly as he expects to perform. In other words, if he believes he is intelligent, he should do well on tests. If he believes he is dumb, he should do poorly. So if an employee believes he will always fail, the only way to break the vicious cycle is to ensure that he performs well on a task (Knoop, 1994). Particularly in the case of Tom, management has to think of ways to motivate him to achieve. Employees who have a strong need for achievement desire and are motivated by jobs that are challenging and over which they have some control, whereas employees who have minimal achievement needs are more satisfied when their work involves little challenge. Employees who have a high need for achievement ate not risk takers and tend to set goals that are challenging enough to be interesting but low enough to be attainable. Employees with a high need for achievement need recognition and want their achievements to be noticed. To increase motivation, goal setting should be used. This is particularly applicable in Tom’s and Rajina’s case who do not seem to perform well without adequate supervision. With goal setting, each employee is given a goal, which might be a particular quality level, a certain quantity of output, or a combination of the two. For goal setting to be most successful, the goals themselves should possess certain qualities. First, they should be concrete and specific. Setting more specific subgoals can also improve performance (Klawsky, 1990). Second, a properly set goal is high but reasonable (Locke & Latham, 1990). To increase the effectiveness of goal setting, feedback should be provided to the employee on his progress in reaching his goal (Locke & Latham, 1990). Feedback can include verbally telling an employee how he is doing, placing a chart on a wall, or displaying a certain color of light when the employee’s work pace will result in goal attainment and a different color of light when the pace is too slow to reach the goal. Feedback increases performance best when it is positive and informational rather than negative and controlling. Another set of theories hypothesizes that workers are motivated when they are rewarded for their behavior. As a result, organizations offer incentives for a wide variety of employee behaviors, including working overtime or on weekends, making suggestions, referring applicants, staying with the company (length of service awards), coming to work (attendance bonuses), not getting into accidents, and performing at a high level (Henderson, 1997).

Assessing Compnay’s Financial Health

Assessing a Company's Future Financial Health Assessing the long-term financial health of a company is an important task for management in its formulation of goals and strategies and for outsiders as they consider the extension of credit, long- term supplier agreements, or an investment in a company’s equity. History abounds with examples of companies that embarked upon overly ambitious programs and subsequently discovered that their portfolios of programs could not be financed on acceptable terms.The outcome frequently was the abandonment of programs in mid-stream at considerable financial, organizational, and human cost. It is the responsibility of management to anticipate future imbalance in the corporate financial system before its severity is reflected in the financials, and to consider corrective action before both time and money are exhausted. The avoidance of bankruptcy is an insufficient standard. Management must ensure the continuity of the flow of funds to all of it s strategically important programs, even in periods of adversity.Figure A provides a conceptualization of the corporate financial system, with a suggested step-by- step process to assess whether it will remain in balance over the ensuing 3-5 years. The remainder of this note discusses each of the steps in the process and then provides an exercise on the various financial measures that are useful as part of the analysis. The final section of the note demonstrates the relationship between a firm’s strategy and operating characteristics, and its financial characteristics.Professor Thomas Piper prepared the original version of this note, â€Å"Assessing a Firm’s Future Financial Health,† HBS No. 201-077, which is being replaced by this version prepared by the same author. This note was prepared as the basis for class discussion. Copyright  © 2010, 2011 President and Fellows of Harvard College. To order copies or request permission to reproduce materials, call 1-80 0-545- 7685, write Harvard Business School Publishing, Boston, MA 02163, or go to www. hbsp. harvard. edu/educators.This publication may not be digitized, photocopied, or otherwise reproduced, posted, or transmitted, without the permission of Harvard Business School. 911-412Assessing a Company's Future Financial Health Figure AThe Corporate Financial System Goals Step 1Strategy Market, Competitive Technology Regulatory and Operating Characteristics Step 2Revenue Outlook †¢growth rate †¢volatility, predictability Step 3Step 4 Investment in AssetsEconomic Performance †¢to support growth†¢profitability †¢improvement/deterioration in asset management cash flow †¢volatility, predictability Step 5Step 6 External Financing NeedTarget Sources of Finance †¢$ amount†¢lending/investing criteria †¢timing, duration †¢deferability †¢attractiveness of firm to each target source Step 7 Viability of 3-5 Year Plan †¢consistency with goals â € ¢achievable operating plan †¢achievable financing plan Step 8 Stress Test for Viability Under Various scenarios Step 9 Financing and Operating Plan for Current Year Steps 1, 2: Analysis of FundamentalsThe corporate financial system is driven by the goals, business unit choices and strategies, market conditions and the operating characteristics. The firm’s strategy and sales growth in each of its business units will determine the investment in assets needed to support these strategies; and the effectiveness of the strategies, combined with the response of competitors and regulators, will 2 Assessing a Company's Future Financial Health911-412 strongly influence the firm’s competitive and profit performance, its need for external finance, and its access to the debt and equity markets.Clearly, many of these questions require information beyond that contained in a company’s published financial reports. Step 3: Investments to Support the Business Unit(s) Stra tegy(ies) The business unit strategies inevitably require investments in accounts receivable, inventories, plant ; equipment, and possibly, acquisitions. Step 3 of the process is an attempt to estimate the amount that will be tied up in each of the asset types by virtue of sales growth and the improvement/deterioration in asset management.An analyst can make a rough estimate by studying the past pattern of the collection period, the days of inventory, and plant ; equipment as a percent of cost of goods sold; and then applying a â€Å"reasonable value† for each to the sales forecast or the forecast of cost of goods sold. Extrapolation of past performance assumes, of course, that the future underlying market, competitive and regulatory â€Å"drivers† will be unchanged from the conditions that influenced the historical performance. Step 4: Future Profitability and Competitive PerformanceStrong sustained profitability is an important determinant of (1) a firm’s acce ss to debt and/or equity finance on acceptable terms; (2) its ability to self-finance growth through the retention of earnings; (3) its capacity to place major bets on risky new technologies, markets, and/or products; and (4) the valuation of the company. A reasonable starting point is to analyze the past pattern of profitability. 1. What have been the average level, trend and volatility of profitability? 2. Is the level of profitability sustainable, given the outlook for the market and for competitive and regulatory pressures? . Is the current level of profitability at the expense of future growth and/or profitability? 4. Has management initiated major profit improvement programs? Are they unique to the firm or are they industry-wide and may be reflected in lower prices rather than higher profitability? 5. Are there any â€Å"hidden† problems, such as suspiciously high levels or buildups of accounts receivable or inventory relative to sales, or a series of unusual transactio ns and/or accounting changes? Step 5: Future External Financing NeedsWhether a company has a future external financing need depends on (1) its future sales growth; (2) the length of its cash cycle; and (3) the future level of profitability and profit retention. Rapid sales growth by a company with a long cash cycle (a long collection period + high inventories + high plant ; equipment relative to sales) and low profitability/low profit retention is a recipe for an ever- increasing appetite for external finance, raised in the form of loans, debt issues, and/or sales of shares. Why?Because the rapid sales growth results in rapid growth of an already large level of total assets. The increase in total assets is offset partially by an increase in accounts payable and accrued expenses, and by a small increase in owners’ equity. However, the financing gap is substantial. For example, the company portrayed in Table A requires $126 million of additional external finance by the end of y ear 2010 to finance the increase in total assets required to support 25% per year sales growth in a business that is fairly asset intensive. 3 911-412Assessing a Company's Future Financial Health Table A |Assuming a 25% Increase in Sales ($ in millions) | | | | | | |Assets |2009 |2010 | |Cash |$ 12 |^ 25% |$ 15 | |Accounts receivable |240 |^ 25% |300 | |Inventories |200 |^ 25% |250 | |Plant ; equipment | 400 |^ 25% | 500 | |Total |$852 | |$1,065 | | | | | | |Liabilities and Equity | | | | |Accounts payable |$100 |^ 25% |$ 125 | |Accrued expenses |80 |^ 25% |100 | |Long-term debt |272 |Unchanged |272 | |Owners’ equity | 400 |footnote a | 442 | |Total |$852 | |$ 939 | |External financing need | 0 | | 126 | |Total |$852 | |$1,065 | a It is assumed (1) that the firm earns $60 million (a 15% return on beginning of year equity) and pays out $18 million as a cash dividend; and (2) that there is no required debt repayment in 2010. If, however, the company reduced its sales growth to 5% (and total assets, accounts payable and accrued expenses increased accordingly by 5%), the need for additional external finance would drop from $126 million to $0.High sales growth does not always result in a need for additional external finance. For example, a food retailer that extends no credit to customers, has only eight days of inventory, and does not own its warehouses and stores, can experience rapid sales growth and not have a need for additional external finance provided it is reasonably profitable. Because it has so few assets, the increase in total assets is largely offset by a corresponding, spontaneous increase in accounts payable and accrued expenses. Step 6: Access to Target Sources of External Finance Having estimated the future financing need, management must identify the target sources (e. g. banks, insurance companies, public debt markets, public equity market) and establish financial policies that will ensure access on acceptable terms. 1. How sound is the fi rm’s financial structure, given its level of profitability and cash flow, its level of business risk, and its future need for finance? 2. How will the firm service its debt? To what extent is it counting on refinancing with a debt or equity issue? 3. Does the firm have assured access on acceptable terms to the equity markets? How many shares could be sold and at what price in â€Å"good times†? In a period of adversity? 4. What criteria are used by each of the firm’s target sources of finance to determine whether finance will be provided and, if so, on what terms? 4 Assessing a Company's Future Financial Health911-412The evaluation of a firm’s financial structure can vary substantially depending on the perspective of the lender/investor. A bank may consider a seasonal credit a very safe bet. Considerable shrinkage can occur in the conversion of inventory into sales and collections without preventing repayment of the loan. In contrast, an investor in the f irm’s 20-year bonds is counting on its sustained health and profitability over a 20-year period. Step 7: Viability of the 3-5 Year Plan 1. Is the operating plan on which the financial forecasts are based achievable? 2. Will the strategic, competitive, and financial goals be achieved? 3. Will the resources required by the plan be available? 4.How will the firm’s competitive, organizational, and financial health at the end of the 3-5 years compare with its condition at the outset? Step 8: Stress Test under Scenarios of Adversity Financing plans typically work well if the assumptions on which they are based turn out to be accurate. However, this is an insufficient test in situations marked by volatile and unpredictable conditions. The test of the soundness of a 3-5 year plan is whether the continuity of the flow of funds to all strategically important programs can be maintained under various scenarios of adversity for the firm and/or the capital markets—or at least be maintained as well as your competitors are able to maintain the funding of their programs.Step 9: Current Financing Plan How should the firm meet its financing needs in the current year? How should it balance the benefits of future financing flexibility (by selling equity now) versus the temptation to delay the sale of equity by financing with debt now, in hopes of realizing a higher price in the future? The next section of this note is designed to provide familiarity with the financial measures that can be useful in understanding the past performance of a company. Extrapolation of the past performance, if done thoughtfully, can provide valuable insights as to the future health and balance of the corporate financial system.Historical analysis can also identify possible opportunities for improved asset m a n a g e m e n t or margin i m p r o v e m e n t , as well as provide an important, albeit incomplete, basis for evaluating the attractiveness of a business and/or the effective ness of a management team. Financial Ratios and Financial Analysis The three primary sources of financial data for a business entity are the income statement, the balance sheet, and the statement of cash flows. The income statement summarizes revenues and expenses over a period of time. The balance sheet is the list of what a company owns (its assets), what it owes (its liabilities), and what has been invested by the owners (owners’ equity) at a specific point in time.The statement of cash flow categorizes all cash transactions during a specific period of time in terms of cash flows generated or used for operating activities, investing activities, and financing activities. The focus of this section is on performance measures based on the income statements and balance sheets of SciTronics—a medical device company. The measures can be grouped by type:(1) 5 911-412Assessing a Company's Future Financial Health profitability measures, (2) activity (asset management) measure s, (3) leverage and liquidity measures. Please refer to the financial statements of SciTronics as shown in Exhibits 1 and 2 at the end of the note.As you work through the questions that follow, please also consider three broad questions: 1. What is your assessment of the performance of SciTronics during the 2005-2008 period? 2. Has its financial strength and its access to external sources of finance improved or weakened? 3. What are the 2-3 most important questions you would ask management as the result of your analysis? Sales Growth Sales growth is an important driver of the need to invest in various type assets and of the company’s value. It also provides some indication of the effectiveness of a firm’s strategy and product development activities, and of customer acceptance of a firm’s products and services. 1.During the four-year period ended December 31, 2008, SciTronics’ sales grew at a % compound rate. There were no acquisition or divestitures. Prof itability Ratio: How Profitable Is the Company? Profitability is a necessity over the long-run. It strongly influences (1) the company’s access to debt; (2) the valuation of the company’s common stock; (3) the willingness of management to issue stock; and (4) the capacity to self-finance. One measure of profitability of a business is its return on sales, measured by dividing net income by net sales. 1. SciTronics’ profit as a percentage of sales in 2008 was %. 2. This represented an increase/decrease from % in 2005.Management and investors often are more interested in the return earned on the funds invested than in the level of profits as a percentage of sales. Companies operating in businesses requiring very little investment in assets often have low profit margins but earn very attractive returns on invested funds. Conversely, there are numerous examples of companies in very capital-intensive businesses that earn miserably low returns on invested funds, despit e seemingly attractive profit margins. Therefore, it is useful to examine the return earned on the funds provided by the shareholders and by the â€Å"investors† in the company’s interest-bearing debt.To increase the comparability across companies, it is useful to use EBIAT (earnings before interest but after taxes) as the measure of return. The use of EBIAT as the measure of return also allows the analyst to compare the return on invested capital (calculated before the deduction of interest expense), with the company’s estimated cost of capital to determine the long-term adequacy of the company’s profitability. EBIAT is calculated by multiplying EBIT (earnings before interest and taxes) times (1—the average tax rate). EBIT x ? 1 ? tax rate? Owners? equity plus interest bearing debt 3. SciTronics had a total of $_ of capital at year-end 2008 and earned before interest but after taxes (EBIAT) $ during 2008.Its return on capital was % in 2008 which r epresented an increase/decrease from the % earned in 2005. 6 Assessing a Company's Future Financial Health911-412 From the viewpoint of the shareholders, an equally important figure is the company’s return on equity. Return on equity is calculated by dividing profit after tax by the owners’ equity. Profit after taxes Owners? equity Return on equity indicates how profitably the company is utilizing shareholders’ funds. 4. SciTronics had $_ of owners’ equity and earned $_ after taxes in 2008. Its return on equity was % an improvement/deterioration from the % earned in 2005. Activity Ratios: How Well Does the Company Employs Its Assets?The second basic type of financial ratio is the activity ratio. Activity ratios indicate how well a company employs its assets. Ineffective utilization of assets results in the need for more finance, unnecessary interest costs, and a correspondingly lower return on capital employed. Furthermore, low activity ratios or deterior ation in the activity ratios may indicate uncollectible accounts receivable or obsolete inventory or equipment. Total asset turnover measures the company’s effectiveness in utilizing its total assets and is calculated by dividing total assets into sales. Net sales Total assets Total asset turnover for SciTronics in 2008 can be calculated by dividing $ into $ .The turnover improved/deteriora ed from times in 2005 to times in 2008. It is useful to examine the turnover ratios for each type of asset, as the use of total assets may hide important problems in one of the specific asset categories. One important category is accounts receivables. The average collection period measures the number of days that the company must wait on average between the time of sale and the time when it is paid. The average collection period is calculated in two steps. First, divide annual credit sales by 365 days to determine average sales per day: Net credit sales 365 days Then, divide the accounts r eceivable by average sales per day to determine he number of days of sales that are still unpaid: Accounts receivable Credit sales per day SciTronics had $ invested in accounts receivables at year-end 2008. Its average sales per day were $ during 2008 and its average collection period was _days. This represented an improvement/deterioration from the average collection period of days in 2005. A third activity ratio is the inventory turnover ratio, which indicates the effectiveness with which the company is employing inventory. Since inventory is recorded on the balance sheet at cost (not at 7 911-412Assessing a Company's Future Financial Health ts sales value), it is advisable to use cost of goods sold as the measure of activity. The inventory turnover figure is calculated by dividing cost of goods sold by inventory: Cost of goods sold Inventory 3. SciTronics apparently needed $ of inventory at year-end 2008 to support its operations during 2008. Its activity during 2008 as measured by the cost of goods sold was $_ . It therefore had an inventory turnover of times. This represented an improvement/deterioration from times in 2005. An alternative measure of inventory management is days of inventory, which can be calculated by dividing cost of goods sold by 365 days to determine average cost of goods sold per day.Days of inventory is calculated by dividing total inventory by cost of goods sold per day. A fourth and final activity ratio is the fixed asset turnover ratio which measures the effectiveness of the company in utilizing its plant and equipment: NetsalesNet fixed assets 4. SciTronics had net fixed assets of $ and sales of $ in 2008. Its fixed asset turnover ratio in 2008 was times, an improvement/deterioration from times in 2005. Leverage Ratios: How Soundly is the Company Financed? There are a number of balance sheet measures of financial leverage. The various leverage ratios measure the relationship of funds supplied by creditors to the funds supplied by owners.The use of borrowed funds by reasonably profitable companies will improve the return on equity. However, it increases the riskiness of the business and the riskiness of the returns to the stockholders, and can result in financial distress if used in excessive amounts. The ratio of total assets divided by owners’ equity is an indirect measure of leverage. A ratio, for example, of $6 of assets for each $1 of owner’s equity indicates that $6 of assets is financed by $1 of owners’ equity and $5 of liabilities. 1. SciTronics’ ratio of total assets divided by owners’ equity increased/decreased from at year –end 2005 to at year-end 2008.The same â€Å"story† of increasing financial leverage is told by dividing total liabilities by total assets. 2. At year-end 2008, SciTronics’ total liabilities were % of its total assets, which compares with % in 2005. Lenders—especially long-term lenders—want reasonable assuranc e that the company will be able to repay the loan in the future. They are concerned with the relationship between a company’s debt and its total economic value. This ratio is called the total debt ratio at market. Total liabilities Total liabilities ? market value of the equity The market value of the equity is calculated by multiplying the number of shares of common stock outstanding times the market price per share. 8Assessing a Company's Future Financial Health911-412 3. The market value of SciTronics’ equity was $175,000,000 at December 31, 2008. The total debt ratio at market was . A fourth ratio that relates the level of debt to economic value and performance is the times interest earned ratio. This ratio relates earnings before interest and taxes—a measure of profitability and of long-term viability—to the interest expense—a measure of the level of debt. Earnings before interest and taxes Interest expense 4. SciTronics’ earnings befor e interest and taxes (operating income) were $_ in 2008 and its interest charges were $ . Its times interest earned was times.This represented an improvement/deterioration from the 2005 level of times. A fifth and final leverage ratio is the number of days of payables. This ratio measures the average number of days that the company is taking to pay its suppliers of raw materials and components. It is calculated by dividing annual purchases by 365 days to determine average purchases per day: Annual purchases 365 days Accounts payable are then divided by average purchases per day: Accounts payable Average purchases per day to determine the number of days purchases that are still unpaid. It is often difficult to determine the purchases of a firm.Instead, the income statement shows cost of goods sold, a figure that includes not only raw materials but also labor and overhead. Thus, it often is only possible to gain a rough idea as to whether or not a firm is becoming more or less depende nt on its suppliers for finance. This can be done by tracking the pattern over time of accounts payable as a percent of cost of goods sold. Accounts payable Cost of goods sold 5. SciTronics owed its suppliers $ at year end 2008. This represented % of cost of goods sold and was an increase/decrease from % at year end 2005. The company appears to be more/less prompt in paying its suppliers in 2008 than it was in 2005. 6.The financial riskiness of SciTronics increased/decreased between 2005 and 2008. Liquidity Ratios: How Liquid is the Company? The fourth basic type of financial ratio is the liquidity ratio. These ratios measure a company’s ability to meet financial obligations as they become current. The current ratio, defined as current assets divided by current liabilities, assumes that current assets are much more readily and certainly convertible into cash than other assets. It relates these fairly liquid assets to claims that are due within one year—the current liab ilities. 9 911-412Assessing a Company's Future Financial Health Current assets Current liabilities 1.SciTronics held $ of current assets at year-end 2008 and owed $ to creditors due to be paid within one year. Its current ratio was , an increase/decrease from the ratio of at year-end 2005. The quick ratio or acid test is similar to the current ratio but excludes inventory from the current assets: Current assets ? Inventory Current liabilities Inventory is excluded because it is often difficult to convert into cash (at least at book value) if the company is struck by adversity. 2. The quick ratio for SciTronics at year-end 2008 was _, an increase/decrease from the ratio of at year-end 2005. Profitability RevisitedManagement can â€Å"improve† its return on equity by improving its return on sales and/or its asset turnover and/or by increasing its financial leverage as measured by total assets divided by owners’ equity. ROE ? Net Income x Sales Sales Total Assets Total As sets x Owners? Equity Each method of â€Å"improvement† differs operationally and in terms of risk. 1. The improvement in SciTronics’ return on equity from 8. 2% in 2005 to 18. 7% in 2008 resulted from an increase/decrease in its return on sales; and an increase/decrease in its asset turnover, and an increase/decrease in its financial leverage. A WarningThe calculated ratios are no more valid than the financial statements from which they are derived. The quality of the financial statements should be assessed and appropriate adjustments made, before any ratios are calculated. Particular attention should be placed on assessing the reasonableness of the accounting choices and assumptions embedded in the financial statements. The Case of the Unidentified Industries The preceding exercise suggests a series of questions that may be helpful in assessing a company’s future financial health. It also describes several ratios that are useful in answering some of the questi ons, especially if the historical trend in these ratios can be reasonably extrapolated.However, it is also important to compare the actual absolute value with some standard to determine whether the company is performing well. Unfortunately, there is no single current ratio, inventory turnover, or debt ratio that is appropriate to all industries. The operating and competitive characteristics of the company’s industry greatly influence its investment in the various types of assets, the riskiness of these investments, and the financial structure of its balance sheet. 10 Assessing a Company's Future Financial Health911-412 Try to match the five following types of companies with their corresponding balance sheets and financial ratios as shown in Exhibit 3. 1. Electric utility 2. Japanese automobile manufacturer 3. Discount general merchandise retailer 4.Automated test equipment/systems company 5. Upscale apparel retailer In doing the exercise, consider the operating and competitiv e characteristics of the industry and their implications for (1) the collection period; (2) inventory turnover; (3) the amount of plant and equipment; (4) the profit margins and profitability; and (5) the appropriate financing structure. Then identify which one of the five sets of balance sheets and financial ratios best match your expectations, given the difficult economic conditions in 2009. 11 911-412Assessing a Company's Future Financial Health Exhibit 1SciTronics, Inc. Consolidated Income Statements 2005-2008 ($ in thousands) 20042005200620072008 | | | | | | |Sales |$115,000 |$147,000 |171,000 |$205,000 |$244,000 | |Cost of goods sold | | 43,000 | 50,000 | 63,000 | 74,000 | |Gross margin | |104,000 |121,000 |142,000 |170,000 | |Research ; development | |15,000 |20,000 |26,000 |28,000 | |Sell, general ; administrative | | 79,000 | 92,000 | 106,000 | 116,000 | |Operating income | 10,000 |9,000 |10,000 |26,000 | |Interest expense | | 1,000 | 2,000 | 2,000 | 2,000 | |Profit before tax | |9,000 |7,000 |8,000 |24,000 | |Income tax | |4,000 | 2,000 | 3,000 | 10,000 | |Net income | |$ 5,000 |$ 5,000 |$ 5,000 |$14,000 | Exhibit 2SciTronics, Inc. Consolidated Balance Sheet at December 31, 2005-2008 ($ in thousands) | | | | | | |2005 |2006 |2007 |2008 | | | | | | | |Cash |$ 9,000 |$ 10,000 |$ 15,000 |$ 18,000 | |Accounts receivable |42,000 |53,000 |61,000 |66,000 | |Inventories |21,000 |28,000 |30,000 |29,000 | |Other current assets | 10,000 | 13,000 | 21,000 | 20,000 | |Total current assets |82,000 |104,000 |127,000 |133,000 | |Net property ; equipment |9,000 |12,000 |13,000 |18,000 | |Other | 2,000 | 2,000 | 6,000 | 8,000 | |Total assets |$93,000 |$118,000 |$146,000 |$159,000 | | | | | | | |Notes payable |$ 3,000 |$ 18,000 |$ 8,000 |$ 10,000 | |Accounts payable |5,000 |6,000 |7,000 |6,000 | |Accrued expenses |10,000 |13,000 |21,000 |28,000 | |Other current liabilities | 3,000 | 3,000 | 4,000 | 4,000 | |Total urrent liabilities |21,000 |40,000 |40,000 |48,000 | |Lo ng-term senior debt |10,000 |9,000 |8,000 |7,000 | |Subordinated convertible debt |– |– |20,000 |20,000 | |Other liabilities |1,000 |3,000 |7,000 |9,000 | |Owners’ equity |61,000 |66,000 |71,000 |85,000 | |Treasury stock |– |– |– |(10,000) | |Owners’ equity | 61,000 | 66,000 | 71,000 | 75,000 | |Total liabilities and equity |$93,000 |$118,000 |$146,000 |$159,000 | 12 Assessing a Company's Future Financial Health911-412 Exhibit 3Unidentified Industries Balance Sheet Percentages ABCDE Cash1. 5%14. 4%12. 1%13. 3%11. 0% Receivables4. 63. 830. 939. 811. 8 Inventories1. 824. 613. 74. 716. 7 Other current assets2. 04. 35. 03. 810. 0 Property and equipment (net)74. 549. 634. 122. 120. 3 Other assets 15. 6 3. 4 4. 3 16. 3 30. 2 Total assets100%100%100%100%100% Notes payable5. 3%0. 4% 5. 4%18. 2%1. 4% Accounts payable2. 124. 811. 0 8. 38. 8 Other current liabilities5. 917. 014. 28. 716. 5 Long-term debt33. 610. 034. 323. 121. 7 Other liabilitie s26. 32. 211. 25. 62. 0Owners’ equity 26. 8 45. 6 23. 9 36. 1 49. 6 Total100%100%100%100%100% Selected Ratios Net profit/net sales10. 3%1. 5% 5. 1%1. 3%(5. 8%) Return on capital 6. 8%9. 2%12. 6%0. 9%(3. 1%) Return on equity12. 5%10. 8%28. 1%2. 2%(7. 6%) Sales/total assets . 323. 251. 31. 63 . 65 Collection period (days)5248623243 Days of inventory43326231147 Sales/net property ; equipment. 436. 73. 82. 93. 6 Total assets/equity3. 732. 194. 192. 792. 01 Total liabilities/total assets. 73. 54. 76. 66. 50 Interest-bearing debt/total capital 59%19% 62%53% 32% Times interest earned3. 2 16 6. 0 4. 4NM Current assets/current liabilities . 671. 112. 011. 221. 85 13

Building a High Performance Project Team Essay

In order to deliver a high-quality project [one that successfully balances scope, time, and cost] in which the needs and expectations of the users are met, the project team must not only be effective and work well together, but also the project manager must have the ability to lead and manage the team while focusing on people issues. This is often a difficult task since many project mangers are usually expected to lead teams without formal authority. Controlling a project blends the art and science of project management – building a strong, committed team at the same time you are making progress against the plan (Verzuh, 2012). This means that project leaders should seek to discover and solve problems while they are still small and at the same time monitor progress while putting in place measures to ensure the team’s continued focus on the goals and expectations of the project. Thus, it is critical for project managers to understand that project success does not hinge only on the science of project management, but also on the ability to build a committed, cooperative, and cohesive team. A project manger who exhibits practical understanding of how to evaluate and sustain an effective team performance, along with the ability to identify and quickly resolve key resource issues throughout the project life cycle, is more likely to reach a synergistic potential of the team. Consequently, drawing from contemporary projects, this brief study focuses on distinct human attributes the effects on leadership as the key to the aforementioned controlling activities that ensure that a project evolves in an orderly m anner, rather than turning out of control. 2Recruiting Project Team Members Every project manager plays a pivotal role in building a high performance team. While the leader must consciously invest in building a strong, cohesive team capable of working together, the process of selecting and recruiting project team members vary across organizations. Two important factors affecting recruitment are the importance of the project and the management structure being used to complete the project (Larson & Gray, 2011). However, it is the project manager’s responsibility to optimize the team’s performance regardless of whether he/she gets to choose the team members or not. Hence project managers must develop strategies that help build a high performance team right from the selection stage. 2.1Project Team Dynamics Negative interpersonal team dynamics is not only unproductive, but can make a project manager’s job a daily grind of frustration and resentment (Verzuh, 2012). When selecting and recruiting team members, project managers naturally look for individuals with the necessary experience and knowledge/technical skills critical for project completion (Larson & Gray, 2011). However, when identifying project resources project managers more often than not find themselves thinking about who they need rather than what they need. Thus, more emphasis is placed on pervious working relationships. Aside from selecting team members who hold the â€Å"right† level of skill and expertise needed to support the project requirements, it is just as important to identify team members who are able to work well with others and exhibit consistent levels of cooperation. These social intelligence skills include the ability to persuade, negotiate, compromise, and make others feel important (DiTullio, 2010) Consequently, the key to creating a high performance project team lies in understanding and embodying the language-action relationship. This is critically important to building relationships, trust, gaining alignment and commitment to produce breakthrough results (Strategic Momentum, 2006). 3Defining Criteria For Project Team Members To fully discuss this topic, we must start with a simple definition of a team. Jon Katzenbach and Douglas Smith define a team in their best-selling book The Wisdom of Teams (Harper Business Essentials 1994), as â€Å" a small number of people with complimentary skills who are committed to a common purpose, a set of performance goals and an approach for which they hold themselves mutually accountable† (Katzenbach & Smith, 1993). In other words, as Sarah Cook (2009) suggests, the characteristics of a high performance team therefore are: * A clearly defined and a common shared purpose * Mutual trust and respect * Clarity around individual roles and responsibilities * High levels of communication * Willingness to work towards the greater good of the team * A leader who both supports and challenges the team * A climate of cooperation * An ability to voice differences and appreciate conflict However, project teams have another characteristic: They will be temporary, formed specifically for the purpose of achieving the goal, after which they will disband (Verzuh, 2012). Thus, to get the people on the team to be mutually accountable to a common goal, trust each other, and be treated with respect while putting in the effort to accomplish a task, the project manager must be able to put the pieces together by establishing strong ground rules and team identity that is built on commitment to a shared goal. In this respect, the criteria is for the project manager to engage his team in simple exercises and hold multiple discussions with the team about the obvious benefits of teamwork by encouraging best practices and innovation for the benefit of stakeholders. 4Developing Trust Among Project Team Members As noted earlier, projects are temporary endeavors that begin and end, and so do project teams. Managing project teams is even more complicated given the trend towards cross-functional, organizational, and sometimes national boundaries. This unique characteristic only increases the likelihood that the composition of a new project team will comprise of more individuals with little or no previous working relationships. With this in mind, as (Verzuh, 2012) rightly suggests, â€Å"developing trust, respect, effective communication patterns, and the ability to maintain a positive relationships despite disagreements takes time. Most importantly, it takes a conscious effort by the project team leader†. Once the project leader understands that high performance teams rarely occur naturally, a strategy must be put in place to help transform the way team members think and act in order to create and maintain the highest level of commitment to the plan. According to (Strategic Momentum, 2006) conversational dynamics is critical in building relationships and trust. By conversational dynamics they mean the conversational mode used when the project team works together. Project leaders must encourage collaborative conversations among team members since they help build trusting relationships, and are able to effectively deal with real issues, thus accelerated results. Collaborative conversations are open and authentic and they breed mutual respect and commitment. Project leaders can rely on authentic conversations to deal with interpersonal relationships and trust issues. In the event of breakdowns, the focus is on restoring relationships and trust to insure on going alignment and commitment. It is apparent therefore that high performance teams have a culture that embraces trust, continuous review and clarification of goals, robust communication and holding each other accountable (Wagner, 2006). 4.1Communicating Effectively with Project Team Members Once an atmosphere of trust has been established, the project manager’s biggest challenge is communication and clarity. Communication has long been ranked very high among factors attributing to project success. In this respect, Tom Wagner suggests that the project team leader must ensure the group stays firmly rooted in reality, sets clear goals and priorities, and follows through on all tasks (Wagner, 2006). This means that the entire project team shares the responsibility of all the project goals, and receives relevant and concise information at the right time. This also ensure that team member do not engage in conflicting agendas that arise when team members pursue incompatible objectives. Consequently, when communicating within the project team (Verzuh, 2012), outlines four major communication needs: * * Responsibility: each team member needs to know exactly what part of the project he/she is responsibly for. * Coordination: as team members carry out their work, they rely on each other. Coordination information enables them to work together efficiently. * Status: meeting the goal requires tracking progress along the way to identify problems and take corrective action. The team members must be kept up to speed on the status of the project. * Authorization: Team members need to know about all the decisions made by customers, sponsors, and management that relate to the project and it’s business environment. Team members need to know these decisions to keep all project decisions synchronized. 5Leading the Project Team Members In spite of advances in the project management profession, research studies have shown that many projects fail, underlining the importance of the project manager’s role as manager. Specifically, the manager’s leadership role is of great importance in motivating people and creating an effective working environment in order for the project team to meet greater challenges in today’s global economy (Anantatmula, 2010). In other words, there are four specific elements that help create an effective team-working environment. The leader must establish ground rules that explicitly define expected personal behavior in reference to team values; he/she must build a team identity based on shared commitment and objectives – the key here is goal and project scope clarity and a solid understanding of team members strength and diversity; a good leader must be able to teach his team to apply the proper problem solving techniques which involves exchange of ideas and thus the ability to listen to different perspectives; and last but not the least, the leader must be able to manage meetings effectively. By conducting team meetings that are actively steered toward the project goals, the team can share pertinent information, coordinate activities, uncover new problems and make informed decisions that produce synergistic outcomes. Ultimately, adding value to the team’s effort should be the goal and role of the project team leader. Defining a clear vision can do this and goal, facilitate a working environment, set clear expectations and responsibilities, and provide the team enough autonomy where they can work and do their jobs with full commitment and confidence (Wikibooks, 2010) 6Managing Challenging and Dyna mic Issues and Conflict It is not an easy task to get a team to jell but the productivity and joy that come with high performance teams are so significant for a project team leader to assume it can occur naturally. According to (Verzuh, 2012), every project team faces two central challenges, two obstacles to becoming a high performance team. * Project teams are formed to solve complex problems, and they must solve those problems together. * Project teams are temporary and so the must learn to work together. Thus, it is the responsibility of the project leader to understand these two challenges and harness the problem solving power of a rather diverse team. In other words, it will take a conscious effort on the part of the project manager to transform the team from a loose collection of talent and expertise to a cohesive unit. For the team to produce superior decisions needed to solve complex problems creativity is required. This means that disagreements are bound to occur and hence conflict-resolution skills become essential to make the best decisions possible without jeopardizing interpersonal relationships. Deborah Kezsbom, in her article entitled: (Managing the Chaos: Conflict among project teams (American Association of Coast Engineers 1989), perfectly concluded, â€Å"conflict is an inevitable and necessary part of the project environment. Given the proper atmosphere, attitudes, and training, conflict can broaden perspectives and stimulate innovative and cohesive interactions.† Project managers who realize that preventing conflict is as important as solving them, are likely to be effective. The author went on to recommend the following for improving project leader effectiveness and minimizing conflict: * Communicating key decisions in a timely fashion to project related personnel. * Adapting leadership style to the status of the project and the needs of the project team. * Recognizing the primary determinants of conflict, when they are likely to occur over the project life cycle, and the effectiveness of handling approaches. * Experimenting with alternative conflict handling modes. * * Proving work challenge to motivate team members. * Developing and maintaining technical expertise. * Planning early and effectively in the project life cycle. * Demonstrating concern for project team members. 7The London 2012 Olympics Construction Project The construction of the London 2012 Olympic park was widely praised for its successful delivery. With  £9.3 billion budget, the Olympic project was one of the most high profile projects one could ever imagine. The project finished on time and under budget much to the delight of its sponsors who according to Sir John Armitt, the man in charge of the team that built the park, knew what it valued, balancing cost and quality, and made that clear to its suppliers. But it was the ability of the project leaders to blend the art and science of project management that prompted some soul-searching about lessons that can be applied to future developments. The value placed on relationships between individuals and organizations working the project was a crucial ingredient in the projects successful delivery. According to a study conducted during the project which focused on the underpinning role of 13 distinct human characteristics – including respect, trust, clarity, motivation, collaboration, openness and fairness – and how these concepts have a practic al influence on effective leadership, worker involvement, safety culture, communication, risk management, monitoring and assurance. The lead researcher Helen Bolt said: â€Å"The most important thing we discovered in this research was the value of the relationships between individuals and organizations. Of all the characteristics of the relationships in evidence during the project, the most critical were respect and clarity -they underpin everything, are not costly or difficult to achieve, and can have a significant impact on safety culture and standards.† 8Conclusion As outlined throughout this paper, project team members are faced with the challenge to work interdependently to achieve defined goals. These goals can be simple or complex depending on the nature and scope of the project. Nonetheless, every project presents peculiar challenges for the team and its leader who essentially make a series of decisions in accomplishing these goals. As the magnitude of interdependencies increases so does the need for the team members to trust one another and rely on refined skills to work collaboratively. Since project teams are temporary, they must learn to work together to reach its synergistic potential. A high performance team does not evolve overnight, it take time and effort by the leader who facilitates the team, establishes a positive working environment and leads the team in learning problem solving as well as conflict resolution skills. It is no secrete that leadership is the foundation of a high performance team. Whilethere are many constant traits a leader must possess to be effective, there are however, many important components of leading a high performance team that lack a true definition. One of the components of great importance is the ability to be adaptable in your leadership style, and let your leadership adapt and evolve as the team progresses through its developmental stages. Project team leaders must also exhibit the same accountability they demand from the team members and display the energy, attitude and commitment to propel the team forward. Ultimately, communication is the key to all the aforementioned activities. Project leaders spend a great deal of their time communicating. In fact, every project management technique is a form of communication and hence it is crucial to communicate in a timely and effective fashoin among all stakeholders. References: Anantatmula, V. (2010). Project Manager leadership role in improving project performance. Engineering Management Journal , 22 (1), 13-22. DiTullio, L. (2010). Project Team Dynamics: enhancing Performance, Improving Results. Management concepts. Katzenbach, J., & Smith, D. (1993). The Wisdom of Teams: Creating the High-Performance Organization. Boston, MA: Havard Business School Press. Kezsbom, D. (1989). Managing the Chaos: Conflict among project teams. American Association of Coast Engineers. Transactions of the American Association of Coast Engineers , 9. Kortekaas, V. (2012, August 19). Retrieved on August 09, 2013, from http://www.ft.com/intl/cms/s/0/57d92e9c-d7df-11e1-9980-00144feabdc0.html#axzz2d6NUQRbS Project Management: Lessons can be learnedfrom sucessful delivery. Financial Times . Larson, E. W., & Gray, C. F. (2011). Project Management: the managerial process (5th ed.). New York, NY, USA: The McGraw-Hill Companies, Inc. Strategic Momentum. (2006). Retrieved August 06, 201 3, from Strategic Momentum.com: www.strategic-momentum.com/_downloads/the_critical_steps_to_building_a_high_performance_team Verzuh, E. (2012). The Fast Forward MBA in Project Management (Vol. 4). Hoboken, NJ, USA: John Wiley & Sons, Inc. Wagner, T. (2006). Building high performance project teams. Loiusiana Contractor , 55 (3), 41. Wikibooks. (2010). Managing Groups and Teams.

Video case Coursework Example | Topics and Well Written Essays - 500 words

Video case - Coursework Example As a result, it has been able to build a good PR by offering consumers with products and services that best suit them and at the same time create good relationships with the companies. Groupon has used the power of the media to grow its reputation and gain trust among consumers and businesses. Groupon has also used personal selling effectively in selling its products and services. For example, through phone calls and emails, the company has been able to reach out to a number of businesses throughout the country. Groupon uses word of mouth to understand some of the best places where consumers can be directed. Through this, the company is able to offer the best deals. In addition, by using review sites such as Yelp and Citysearch, Groupon is able to get the best deals for consumers and get the best businesses to partner with. There is a difference in how Groupon markets itself to consumers versus how it does to businesses and companies. When marketing itself to businesses and companies, Groupon relies on personal interactions and through telephone. This is different when marketing itself to consumers since it is mainly done through the internet. In other words, in order to reach out to businesses, it heavily relies on its sales force to interact with potential companies. This is done through phone calls and emails. However, when reaching out to consumers, the Groupon uses social media and the internet to reach out to consumers. In addition, unlike businesses, Groupon relies on the word of mouth through conversations between consumers to market itself. This is because consumers interact with each other and thus help to market the company to friends and relatives. Business may find it necessary to adapt the promotional mix because of the different tastes and preferences in the market. Therefore, businesses need to adapt the promotional mix in order to meet the demands of the