Econ 1a

Student: 1. Which of the following is a distinguishing feature of a command system? A. private ownership of all capital. B. central planning. C. heavy reliance on markets. D. wide-spread dispersion of economic power. 2. Which of the following is a distinguishing feature of a market system? A. public ownership of all capital. B. central planning. C. wide-spread private ownership of capital. D. a circular flow of goods, resources, and money. 3. Examples of command economies are: A. The United States and Japan. B. Sweden and Norway. C. Mexico and Brazil. D. Cuba and North Korea. 4. Of the following countries, which one best exhibits the characteristics of a market economy? A. Canada. B. Cuba. C. North Korea. D. China. 5. The French term â€Å"laissez-faire† means: A. â€Å"there is no free lunch. † B. â€Å"let it be. † C. â€Å"circular flow. † D. â€Å"public ownership. † 6. An economic system: A. requires a grouping of private markets linked to one another. B. is a particular set of institutional arrangements and a coordinating mechanism used to respond to the economizing problem. C. requires some sort of centralized authority (such as government) to oordinate economic activity. D. is a plan or scheme that allows a firm to make money at some other firm's expense. 7. The term laissez-faire suggests that: A. land and other natural resources should be privately owned, but capital should be publicly owned. B. land and other natural resources should be publicly owned, but capital should be privately owned. C. government should not interfere with the operation of the economy. D. government action is necessary if the economy is to achieve full employment and full production. 8. Economic systems differ according to which two main characteristics? A. Who owns the factors of production, and the methods used to coordinate economic activity. B. The technology used in production, and the quantity and quality of natural resources. C. How goods are produced, and who gets them. D. The political system in place, and the degree of scarcity facing the economy. 9. Command systems are also known as: A. market systems. B. pure capitalism. C. laissez-faire capitalism. D. communism. 10. A fundamental difference between the command system and the market system is that, in command systems: A. the division of output is decided by central planning rather than by individuals operating freely through markets. B. all economic decisions are made by the government, whereas there is no government in a market system. C. scarcity does not exist, whereas it does in a market system. D. money is not used, whereas it is in a market system. 11. Which of the following is not a characteristic of the market system? A. private property. B. freedom of enterprise. C. government ownership of major industries. D. competition in product and resource markets. 12. Which of the following is a fundamental characteristic of the market system? A. property rights. B. central planning by government. C. unselfish behavior. D. government-set wages and prices. 13. Property rights are important because they: A. ensure an equal distribution of income. B. encourage cooperation by improving the chances of mutually agreeable transactions. C. guarantee that any exchange will make all parties better off than prior to the exchange. D. allow the government to control how resources are allocated. 14. Private property: A. discourages cooperation because people don't want to part with what they own. B. discourages innovation, as people are often afraid to risk losing their own property. C. encourages owners to maintain or improve their property, so as to preserve or enhance value. D. does everything indicated by the other answers. 15. Copyrights and trademarks are examples of: A. capital goods. B. human capital. C. property rights. D. public goods. 16. The regulatory mechanism of the market system is: A. self-interest. B. private property. C. competition. D. specialization. 17. Broadly defined, competition involves: A. private property and freedom of expression. B. independently acting buyers and sellers and freedom to enter or leave markets. C. increasing opportunity costs and diminishing marginal utility. D. capital goods and division of labor. 18. Competition means that: A. sellers can manipulate market price by causing product scarcities. B. there are independently-acting buyers and sellers in each market. C. a product can be purchased at a number of different prices. D. there is more than one seller in a market. 19. The division of labor means that: A. labor markets are geographically segmented. B. unskilled workers outnumber skilled workers. C. workers specialize in various production tasks. D. each worker performs a large number of tasks. 20. Specialization in production is important primarily because it: A. results in greater total output. B. llows society to avoid the coincidence-of-wants problem. C. allows society to trade by barter. D. allows society to have fewer capital goods. 21. Specialization-the division of labor-enhances productivity and efficiency by: A. allowing workers to take advantage of existing differences in their abilities and skills. B. avoiding the time loss involved in shifting from one production task to another. C. allowing workers to develop skills by working on one, or a limited number, of tasks. D. all of the means identified in the other answers. 22. Specialization in production is economically beneficial primarily because it: A. llows everyone to have a job which they like. B. permits the production of a larger output with fixed amounts of resources. C. facilitates trade by bartering. D. guarantees full employment. 23. On the basis of the above information it can be said that: A. no coincidence of wants exists between any two states. B. a coincidence of wants exists between Michigan and Washington. C. a coincidence of wants exists between Texas and Washington. D. a coincidence of wants exists between Michigan and Texas. 24. On the basis of the above information and assuming trade occurs between the three states we can expect: A. Washington to exchange apples with Texas and receive money in return. B. Washington to exchange apples with Michigan and receive money in return. C. Texas to exchange lettuce with Michigan and receive autos in return. D. Texas to trade lettuce directly for Washington apples. 25. Given the above information and assuming trade occurs between the three states we can expect: A. that there is no means by which Michigan can obtain lettuce while specializing in the production of autos. B. that money will not be needed to accomplish the desired exchanges. C. money to flow counterclockwise from Michigan to Texas to Washington. D. money to flow clockwise from Michigan to Washington to Texas. 26. Barter: A. is the major means of exchange in centrally planned economies. B. accounts for over 30 percent of the dollar volume of all exchange in the U. S. economy. C. entails the exchange of goods for goods. D. is used to circumvent the problem of a lack of coincidence of wants among potential buyers and sellers. 27. The â€Å"coincidence of wants† problem associated with barter refers to the fact that: A. for exchange to occur each seller must have a product that some buyer wants. B. money must be used as a medium of exchange or trade will never occur. C. specialization is restricted by the size or scope of a market. D. buyers in resource markets and sellers in product markets can never engage in exchange. 28. The use of money contributes to economic efficiency because: A. governmental direction of the production and distribution of output can be avoided by using money. B. roundabout production could not occur without the availability of money. C. it is necessary for the creation of capital goods. D. it promotes specialization by overcoming the problems with barter. 29. The presence of market failures implies that: A. oney is not an effective tool for exchange in a market system. B. there is an active role for government, even in a market system. C. individuals and firms should strive to be self-sufficient rather than specialize. D. command systems are superior to market systems in the allocation of resources. 30. Which of the following characteristics is least unique to a market system? A. private ownership of property resources B. competition among buyers and sellers pursuing monetary returns C. the widespread use of money D. freedom of enterprise and choice 31. Which of the following is one of the Five Fundamental Questions? A. Which products will be in scarce supply and which in excess supply? B. Who should appoint the head of the central bank? C. How much should society save? D. What goods and services will be produced? 32. If competitive industry Z is making substantial economic profit, output will: A. fall in industry Z, and firms will likely leave the market. B. fall in all industries except industry Z. C. expand in industry Z, as more resources will move to that industry. D. expand in industry Z, but no new firms will enter the market. 33. From society's point of view the economic function of profits and losses is to: A. romote the equal distribution of real assets and wealth. B. achieve full employment and price level stability. C. contribute to a more equal distribution of income. D. reallocate resources from less desired to more desired uses. 34. In a market economy a significant change in consumers' desire for product X will: A. alter the profits or losses received by suppliers of product X. B. cause a reallocation of scarce resources. C. cause some industries to expand and others to contract. D. do all of these. 35. Economic profits in an industry suggest the industry: A. can earn more profits by increasing product price. B. should be larger to better satisfy consumers' desire for the product. C. has excess production capacity. D. is the size that consumers want it to be. 36. Economic profits and losses: A. are both considered by economists to be a part of production costs. B. are essential to the reallocation of resources from less desired to more desired goods. C. have no influence on the composition of domestic output. D. equalize the distribution of income in the long run. 37. If consumer desire for product X increases, all of the following will occur except: A. an increase in the profits of industry X. B. n increase in the quantity of resources employed by industry X. C. an increase in the output of industry X. D. a decrease in the quantity of resources employed in industry X. 38. An increase in consumer desire for strawberries is most likely to: A. increase the number of strawberry pickers needed by farmers. B. reduce the supply of strawberries. C. reduce the number of people willing to pick strawberries. D. reduce the need for strawberry pickers. 39. If competitive industry Y is incurring substantial losses, output will: A. expand as resources move toward industry Y. B. contract as resources move toward industry Y. C. contract as resources move away from industry Y. D. expand as resources move away from industry Y. 40. The economic function of profits and losses is to: A. bring about a more equal distribution of income. B. signal that resources should be reallocated. C. eliminate small firms and reduce competition. D. tell government which industries need to be subsidized. 41. If a competitive industry is neither expanding nor contracting, we would expect: A. total revenue to be zero. B. economic profits to be zero. C. total opportunity cost to be zero. D. more resources to flow to that industry. 42. The competitive market system: A . encourages innovation because government provides tax breaks and subsidies to those who develop new products or new productive techniques. B. discourages innovation because it is difficult to acquire additional capital in the form of new machinery and equipment. C. discourages innovation because firms want to get all the profits possible from existing machinery and equipment. D. encourages innovation because successful innovators are rewarded with economic profits. 43. In a market economy the distribution of output will be determined primarily by: A. consumer needs and preferences. B. the quantities and prices of the resources that households supply. C. government regulations that provide a minimum income for all. D. a social consensus as to which distribution of income is most equitable. 44. The most efficient combination of resources in producing a given output is the combination that: A. comes closest to using the same quantities of land, labor, capital, and entrepreneurial ability. B. can be obtained for the smallest money outlay. C. uses the smallest total quantity of all resources. D. conserves most on the use of labor. 45. Firms are motivated to minimize production costs because: A. t is the most environmentally friendly way to produce goods. B. least-cost production techniques use the smallest total quantity of resources. C. competitive pressures in the market will drive out higher-cost producers. D. the government provides tax credits and subsidies to low-cost producers. Answer the next question(s) using the following data which show all available techniques for producing 20 units of a particular commodity: 46. Refer to the above data. In view of the indicated resource prices, the economically most efficient production technique(s) is (are) technique(s): A. # 1. B. #2 and # 4. C. # 3. D. #1 and # 3. 47. Refer to the above data. Assuming that the firm is motivated by self-interest and that the 20 units which can be produced with each technique can be sold for $2 per unit, the firm will: A. realize an economic profit of $ 10. B. realize an economic profit of $ 4. C. not earn any economic profit. D. shutdown rather than incur a loss by producing. 48. Refer to the above data. If a new production technique is developed that enables a firm to produce 20 units of output with 3 units of land, 3 of labor, 1 of capital, and 2 of entrepreneurial ability, this technique would: A. not be adopted because, although it reduces production costs, it does not increase profit. B. be adopted because it would lower production costs and increase economic profit. C. not be adopted because it entails higher production costs than other available techniques. D. be adopted, even though economic profits would be reduced slightly. Answer the next question(s) on the basis of the following information: Suppose 30 units of product A can be produced by employing just labor and capital in the four ways shown below. Assume the prices of labor and capital are $2 and $3 respectively. 49. Refer to the above information. Which technique is economically most efficient in producing A? A. I B. II C. III D. IV 50. Refer to the above information. If the price of product A is $0. 50, the firm will realize: A. an economic profit of $ 4. B. an economic profit of $ 2. C. an economic profit of $ 6. D. a loss of $ 3. 51. In a competitive market economy firms select the least-cost production technique because: A. such choices will result in full employment of available resources. B. to do so will maximize the firms' profits. C. this will prevent new firms from entering the industry. D. â€Å"dollar voting† by consumers mandates such a choice. 52. The market system's answer to the fundamental question â€Å"What will be produced? † is essentially: A. â€Å"Goods and services that are profitable. † B. â€Å"Low cost goods and services. † C. â€Å"Goods and service that can be produced using large amounts of capital. † D. â€Å"Goods and services that possess lasting value. † 53. The market system's answer to the fundamental question â€Å"How will the goods and services be produced? † is essentially: A. â€Å"With as much machinery as possible. † B. â€Å"Using the latest technology. † C. â€Å"By exploiting labor. D. â€Å"Using the least-cost production techniques. † 54. The market system's answer to the fundamental question â€Å"Who will get the goods and services? † is essentially: A. â€Å"Those willing and able to pay for them. † B. â€Å"Those who physically produced them. † C. â€Å"Those who most need them. † D. â€Å"Those who get utility from them. † 55. The market system's answer to the fundamental question â€Å"How will the system accommodate change? † is essentially: A. â€Å"Through government leadership and direction. † B. â€Å"Through the guiding function of prices and the incentive function of profits. † C. Through training and retraining programs. † D. â€Å"Through trial and error. † 56. The market system's answer to the fundamental question â€Å"How will the system promote progress? † is essentially: A. â€Å"Through government funded research programs. † B. â€Å"Through redistribution of income to promote greater equality. † C. â€Å"Through training and retraining programs. † D. â€Å"Through the profit potential that encourages development of new technology. † 57. The advent of DVDs has virtually demolished the market for videocassettes. This is an example of: A. creative destruction. B. derived demand. C. apital accumulation. D. the difference between normal and economic profits. 58. â€Å"Consumer sovereignty† refers to the: A. fact that resource prices are higher than product prices in capitalistic economies. B. idea that the pursuit of self-interest is in the public interest. C. idea that the decisions of producers must ultimately conform to consumer demands. D. fact that a Federal agency exists to protect consumers from harmful and defective products. 59. The dollar votes of consumers ultimately determine the composition of output and the allocation of resources in a market economy. This statement best describes the concept of: A. derived demand. B. consumer sovereignty. C. the invisible hand. D. market failure. 60. Which of the following is not one of the five fundamental questions? A. What prices will be charged for goods and services? B. Who will get the goods and services? C. What goods and services will be produced? D. How will the system promote progress? 61. â€Å"Consumer sovereignty† means that: A. buyers can dictate the prices at which goods and services will be purchased. B. advertising is ineffective because consumers already know what they want. C. uyers control the quality of goods and services through regulatory agencies. D. buyers determine what will be produced based on their â€Å"dollar votes† for the goods and services offered by sellers. 62. Which of the following best describes the invisible-hand concept? A. The desires of resource suppliers and producers to further their own self-interest will automatically further the public interest. B. The non-substitutability of resources creates a conflict between private and public interests and calls for government intervention. C. The market system is the best system for overcoming the scarce resources-unlimited wants problem. D. Central direction by the government will improve resource allocation in a capitalistic economy. 63. The invisible hand refers to the: A. fact that the U. S. tax system redistributes income from rich to poor. B. notion that, under competition, decisions motivated by self-interest promote the social interest. C. tendency of monopolistic sellers to raise prices above competitive levels. D. fact that government controls the functioning of the market system. 64. The invisible hand concept suggests that: A. market failures imply the need for a national economic plan. B. ig businesses are inherently more efficient than small businesses. C. the competitiveness of a capitalistic market economy invariably diminishes over time. D. assuming competition, private and public interests will coincide. 65. Two major virtues of the market system are that it: A. allocates resources efficiently and allows economic freedom. B. results in an equitable personal distribution of income and always maintains full employment. C. results in price level stability and a fair personal distribution of income. D. eliminates discrimination and minimizes environmental pollution. 66. The market system: A. produces considerable inefficiency in the use of scarce resources. B. effectively harnesses the incentives of workers and entrepreneurs. C. is not consistent with freedom of choice in the long run. D. has slowly lost ground to emerging command systems. 67. According to the concept of the â€Å"invisible hand,† if Susie opens and operates a profitable childcare center, then: A. government should regulate the business to ensure quality. B. the profit Susie earns indicates that she is overcharging for her services. C. she has served society's interests by providing a desired good or service. D. his demonstrates that consumer sovereignty is not present in this market. 68. The invisible hand promotes society's interests because: A. individuals pursuing their self-interest will try to produce goods and services that people in society want and are willing to purchase. B. individuals will produce goods for others out of concern for their fellow human beings. C. it makes sure that everyone wins from competition in the market. D. government regulation pushes business into producing the right mix of goods and services. 69. The coordination problem in the centrally planned economies refers to the idea that: A. lanners had to direct required inputs to each enterprise. B. the price level and the level of employment were inversely related. C. the immediate effect of more investment was less consumption. D. exports had to be equal to imports for a central plan to work. 70. â€Å"Under central planning, some group has to decide how to get the necessary inputs produced in the right amounts and delivered to the right places at the right time. This is a nearly impossible task without markets and profits. † This quotation best identifies the: A. incentive problem under central planning. B. oordination problem under central planning. C. self-sufficiency dilemma under communism. D. resource over-commitment problem under communism. 71. â€Å"Because the outputs of many industries are the inputs to other industries, the failure of any single industry to fulfill the output quantities specified in the central plan caused a chain-reaction of adverse repercussions on production. † This quotation best identifies the: A. incentive problem under central planning. B. self-sufficiency dilemma under communism. C. resource over-commitment problem under communism. D. coordination problem under central planning. 72. The incentive problem under communist central planning refers to the idea that: A. planners had to direct required inputs to each enterprise. B . workers, managers, and entrepreneurs could not personally gain by responding to shortages or surpluses or by introducing new and improved products. C. the immediate effect of more investment was less consumption. D. exports had to be equal to imports for a central plan to work. 73. Suppose that an individual sees a tremendous opportunity to produce and sell a new product, but dismisses the idea because there is no way to exploit this opportunity for personal gain. This situation best identifies the: A. coordination problem under communist central planning. B. self-sufficiency dilemma under communism. C. asymmetric information problem under communism. D. incentive problem under communist central planning. 74. Innovation lagged in the centrally planned economies because: A. there was too much domestic business competition. B. there was too much competition from foreign firms. C. enterprises resisted innovation in fear that their production targets would be raised. D. exports had to equal imports for the plan to work. 75. The fact that the major indicator of enterprise success in the Soviet Union and pre-reform China was the quantity of output implied that: A. product quality was neglected. B. production costs were minimized. C. product-mix met consumer needs. D. technological advance was too rapid. 76. Enterprise managers and workers in the Soviet Union often resisted innovations in production methods because: A. production targets were often increased when innovation occurred. B. there was a chronic shortage of computers. C. workers could not be reallocated geographically. D. innovations ordinarily increased dependence on world markets. 77. If products were in short or surplus supply in the Soviet Union: A. price and profit signals eliminated those shortages and surpluses. B. price and profit signals intensified those shortages and surpluses. C. producers would not react because no price or profit signals occurred. D. the planners would immediately adjust production to achieve equilibrium. 78. In what type of business do the owners bear no personal financial responsibility for the company's debts and obligations? A. Partnerships. B. Corporations. C. Sole proprietorships. D. In all of the businesses listed in the other answers. 79. The simple circular flow model shows that: A. households are on the buying side of both product and resource markets. B. businesses are on the selling side of both product and resource markets. C. households are on the selling side of the resource market and on the buying side of the product market. D. businesses are on the buying side of the product market and on the selling side of the resource market. 80. The two basic markets shown by the simple circular flow model are: A. capital goods and consumer goods. B. free and controlled. C. product and resource. D. household and business. 81. In the resource market: A. businesses borrow financial capital from households. B. businesses sell services to households. C. households sell resources to businesses. D. firms sell raw materials to households. 82. In the simple circular flow model: A. households are buyers of resources. B. businesses are sellers of final products. C. households are sellers of final products. D. there are real flows of goods, services, and resources, but not money flows. 83. Refer to the above diagram. Flow (1) represents: A. wage, rent, interest, and profit income. B. land, labor, capital, and entrepreneurial ability. C. goods and services. D. consumer expenditures. 84. Refer to the above diagram. Flow (2) represents: A. wage, rent, interest, and profit income. B. land, labor, capital, and entrepreneurial ability. C. goods and services. D. consumer expenditures. 85. Refer to the above diagram. Flow (3) represents: A. wage, rent, interest, and profit income. B. land, labor, capital, and entrepreneurial ability. C. goods and services. D. consumer expenditures. 86. Refer to the above diagram. Flow (4) represents: A. wage, rent, interest, and profit income. B. land, labor, capital, and entrepreneurial ability. C. oods and services. D. consumer expenditures. 87. In terms of the circular flow diagram, households make expenditures in the _____ market and receive income through the _____ market. A. product; financial B. resource; product C. product; resource D. capital; product 88. In terms of the circular flow diagram, businesses obtain revenue through the _____ market and make expenditures in the _____ market. A. product; financial B. resource; product C. product; resource D. capital; product 89. Households and businesses are: A. both buyers in the resource market. B. both sellers in the product market. C. ellers in the resource and product markets respectively. D. sellers in the product and resource markets respectively. 90. Refer to the above diagram. Arrows (1) and (2) represent: A. goods and resources respectively. B. money incomes and output respectively. C. output and money incomes respectively. D. resources and goods respectively. 91. Refer to the above diagram. Arrows (3) and (4) represent: A. goods and services respectively. B. incomes and consumer expenditures respectively. C. resources and goods respectively. D. consumer expenditures and income respectively. 92. Refer to the above diagram. Arrows (1) and (3) are associated with: A. the money market. B. the resource market. C. the product market. D. international trade. 93. Which of the following best illustrates the circular flow model in action? A. Bobbie goes to work and builds cars, and uses the income she receives to buy food at the grocery store. B. Evan buys a new couch; the owner of the furniture store uses some of the money from the sale to pay her supplier, and uses the rest to take her family out to dinner. C. Boeing experiences a surge in orders for new airplanes, prompting the company to hire more workers. D. All of these answers illustrate the workings of the circular flow model. 94. (Consider This) In 1975, McDonald's introduced its Egg McMuffin breakfast sandwich, which remains popular and profitable today. This longevity illustrates the idea of: A. opportunity cost. B. upsloping supply. C. consumer sovereignty. D. specialization. 95. (Consider This) In 2000, McDonald's introduced its McSalad Shaker, which failed to catch on with the public and was subsequently dropped from the menu. This failure illustrates the idea of: A. consumer sovereignty. B. technological change. C. downsloping demand. D. specialization. 96. (Consider This) Since World War II: A. North Korea's command economy has significantly outperformed South Korea's market economy. B. South Korea's command economy has significantly outperformed North Korea's market economy. C. North Korea's market economy has significantly outperformed South Korea's command economy. D. South Korea's market economy has significantly outperformed North Korea's command economy. 97. (Consider This) North Korea's command economy: A. is one of the few remaining command economies. B. has grown much faster than South Korea since the two countries were divided after World War II. C. produces a per capita GDP of nearly $25,000. D. has undergone significant market reforms and is now one of the fastest growing economies. 98. (Last Word) According to economist Donald Boudreaux, the world's tens of billions of individual resources get arranged productively: A. because government has become highly effective at central planning. B. because private property encourages people to consider the alternative uses of their resources and select those that provide the most rewards. C. because people tend to be creative and orderly. D. through random trial and error. 99. Last Word) According to economist Donald Boudreaux: A. private property eliminates the possibility that resource arrangements will be random. B. the market system threatens to do irreparable harm to the world's ecosystem. C. arranging resources under the market system is much like shuffling a deck of cards. D. the market system works wondrously for advanced industrial nations but not for developing nations. 100. Market economies use capital goods because they improve productive efficiency. True False 101. Money functions as a medium of exchange by eliminating the need for a coincidence of wants. True False 102. Consumer sovereignty means that legislation now protects the rights of consumers to dispose of their incomes as they see fit. True False 103. Specialization may expand total output even though the individuals involved may have identical abilities. True False 104. The wants of consumers are expressed in the product market with â€Å"dollar votes. † True False 105. Costs can be defined as total payments made to workers, land owners, and capital suppliers less payments to the entrepreneur for organizing and combining the other resources used to produce a good. True False 106. Continued losses in an industry will cause some firms to reduce output or eventually leave the industry. True False 107. The guiding function of prices tends to keep resources flowing toward their most highly valued uses. True False 108. The invisible hand refers to the many indirect controls that the Federal government imposes in a market system. True False 109. Central planning in the Soviet Union and pre-reform China emphasized the expansion of the production of consumer goods to raise the domestic standard of living. True False 110. Central planning often suffers from a coordination problem and an incentive problem. True False ch02 Key1. B2. C3. D4. A5. B6. B7. C8. A9. D10. A11. C12. A13. B14. C15. C16. C17. B8. B19. C20. A21. D22. B23. A24. A25. C26. C27. A28. D29. B30. C31. D32. C33. D34. D35. B36. B37. D38. A39. C40. B41. B42. D43. B44. B45. C46. B47. A48. B49. D50. B51. B52. A53. D54. A55. B56. D57. A58. C59. B60. A61. D62. A63. B64. D65. A66. B67. C68. A69. A70. B71. D72. B73. D74. C75. A76. A77. C78. B79. C80. C81. C82. B83. A84. B85. C86. D87. C88. C89. C90. D91. B92. B93. D94. C95. A96. D97. A98. B99. A100. TRUE101. TRUE102. FALSE103. TRUE104. TRUE105. FALSE106. TRUE107. TRUE108. FALSE109. FALSE110. TRUE ch02Summary Category # of Questions AACSB: Analytic 72 AACSB: Reflective Thinking 38 Blooms: Level 1 Remember 36 Blooms: Level 2 Understand 51 Blooms: Level 3 Apply 18 Blooms: Level 4 Analyze 5 Difficulty: 1 Easy 36 Difficulty: 2 Medium 69 Difficulty: 3 Hard 5 Learning Objective: 02-01 Differentiate between a command system and a market system. 3 Learning Objective: 02-02 List the main characteristics of the market system. 25 Learning Objective: 02- 03 Explain how the market system decides what to produce; how to produce it; and who obtains it. 40 Learning Objective: 02-04 Discuss how the market system adjusts to change and promotes progress. 14 Learning Objective: 02-05 Describe the mechanics of the circular flow model. 16 McConnell – Chapter 02 115 Topic: Characteristics of the market system 25 Topic: Circular flow model 16 Topic: Demise of the command systems 13 Topic: Economic systems 10 Topic: Five fundamental questions 38 Topic: Invisible hand 8

Learning Style Preferences by Iranian students

IntroductionLearning manners influence acquisition and that larning result is higher for pupils who are able to utilize multiple acquisition manners ( Felder, 1995 ; Reid, 1987, Reid, 1998 ; Claxton and Murell, 1985 ; Mulalic, Mohd Shah and Ahmad, 2009 ) . Learning manners and penchants vary for each of us and in different state of affairss. Some scholars, for case, prefer to larn by reading text editions, while others prefer a verbal account ( Riazi and Riasati, 2007 ) . In add-on, people may differ in how they most efficaciously show their apprehension ; either orally or in authorship and through graphs or figures. In other words, scholars learn and show their apprehensions in assorted ways in different state of affairss. Learning manners refer to the cognitive, emotional, and psychological behavior which serve as comparatively fixed and unchangeable indexs of how scholars understand, interact with and answer to the acquisition environment ( Keefe, 1982 ) . Oxford ( 2003 ) asserted that acquisition manners are the general attacks that scholars utilize in geting a new linguistic communication or in larning any other topics. These manners are the overall forms that give larning behaviour a general way ( Cornett, 1983 ) . By understanding one ‘s learning manner ( s ) , one will be able to develop the accomplishments that help one learns in a assortment of ways to accomplish full potency. This apprehension is besides helpful for instructors and pedagogues because it enables instructors and pedagogues to fit their instruction manners, methodological analysiss, and class organisation with scholars ‘ acquisition manners to assist scholars better their acquisition ( Willing, 1988 ) . Surveies have shown that personality, life experiences, intent for larning and instructors ‘ outlooks affect scholars ‘ acquisition manners with the later being the most dominant influence ( Briggs-Myers, 1986 ; Kolb, 1984 ; Felder, 1996 ; Ballard and Clanchy 1997 ) . In Iran, nevertheless, scholars ‘ acquisition manners have been ignored and have been taken into history as an undistinguished constituent in the learning procedure among Persian EFL scholars in general and first-year university pupils in peculiar. Very small survey has been conducted to place Persian scholars ‘ acquisition manners that non merely would assist scholars ‘ acquisition but besides help better instructors ‘ instruction. Matching these two facets would take to greater success. Nevertheless, Riazi and Riasati ( 2007 ) conducted a survey on 219 Persian scholars of English in Shiraz to place their acquisition manners. The survey employed Brindley ‘s ( 1984 ) linguistic communication larning penchant questionnaire. The participants were from different degrees of direction and different ages. The findings show that the pupils favoured the communicative attack carried out in brace or group work and felt that it helped better their English linguisti c communication accomplishments. They besides preferred taking portion in schoolroom treatment and interaction in larning English. Although this survey found that scholars preferred a communicative attack, scholars at higher establishments in Iran ; peculiarly freshers, are still observed to be inactive scholars of English. Possibly they are incognizant of their acquisition manners and possibly the instruction manners at higher establishments do non fit scholars ‘ acquisition manners. Therefore, the survey presented in this paper was an effort to find Persian EFL fresher university pupils ‘ acquisition manner ( s ) to assist them understand how they learn and therefore increase their potencies. This survey besides aimed to detect whether there was a difference between male and female fresher university pupils ‘ acquisition manner ( s ) . However, this present survey employed the four types of larning manner penchants developed by Willing ( 1988 ) to look into Persian EFL fresher university pupils ‘ types of larning manner ( s ) .Learning Styles and Types of LearnersMost research surveies on larning manner penchants trace back to the past 30 old ages. Dunn ( 1993 ) asserted that lectors can non place pupil ‘s acquisition manners without using a multidimensional instrument. Without rating, even experienced teachers may misinterpret scholars ‘ behaviors such as hyperactivity or heedlessness ( Mulalic, Mohd Shah and Ahmad, 2009 ) . Reid ( 1987 ) investigated 1300 ESL pupils from three different civilizations ; viz. the Japanese, Malay, and Korean. The survey found that a big figure of these pupils strongly preferred tactile and kinesthetic acquisition manners. The survey besides found that the built-in differences in cultural or linguistic communication backgrounds and subjects ( technology and computing machine scientific discipline ) frequently play an of import function in placing types of cognitive manners. Meanwhile, Willing ( 1988 ) investigated a group of five 100s and 17 scholars from more than 30 cultural groups to analyze whether there is a relationship between larning manner penchants and biographical variables. However, merely five cultural groups were big plenty for statistical analysis ( Vietnamese, Chinese, Arabic, South Americans, and Polish/Czech talkers ) . The learning manner questionnaire included 30 acquisition manner points, 15 larning scheme points, and a several points on single biographical facets. The consequences indicated that there were cultural differences with respect to the scholars ‘ larning manner penchants. For case, although the agencies of the point ‘I like to analyze grammar ‘ was lower than expected, all scholars from the different civilizations responded that they liked analyzing grammar. The Arabic scholars preferred grammar where 65 % of them ranked this point as the â€Å" best † ( Willing 1988 ) . Meanwhile, the findings i ndicated that authority-oriented and analytical acquisition manners were extremely valued by the Vietnamese, Chinese, Arabic, South American, and Polish pupils. The largely preferable points were ‘practicing sounds and pronunciation in English ‘ and ‘everything explained by their instructor ‘ , and the least preferable ways of larning were ‘playing games ‘ and ‘watching movies ‘ ( Willing 1988, p. 130 ) . Willing ( 1988 ) further identified four types of scholars: concrete, analytical, communicative, and authority-oriented scholars. Nunan ( 1999 ) briefly summarized the definition of these four types of scholars: 1 ) Concrete scholars are those who employ really direct agencies of taking in and treating information ; 2 ) Analytic scholars are those whose cognitive strengths lead them non merely to analyse carefully and show great involvement in constructions but to set a great trade of value on uncovering their independency by executin g these things themselves, autonomously. In other words, they prefer to analyze grammar ( from particular to general ) , analyzing English books and reading newspapers, analyzing separately, happening their ain errors, and working on undertaking jobs assigned by their instructors ; 3 ) Authority-oriented scholars are those who are likely non predisposed to actively form information ; they would wish their instructor to explicate everything to them, tend to hold their ain text editions, to compose everything in a notebook, to analyze grammatical regulations, learn by reading, and larn new words by looking at them ; and 4 ) Communicative scholars are those who have a desire for a communicative and societal acquisition attack, likely because they feel that this would be most helpful to their demands in relation to linguistic communication acquisition. In other words, they like to larn by watching, listening to native talkers, speaking to friends in English and watching telecasting in E nglish, utilizing English out of category, larning new words by hearing them, and acquisition by conversations ( Willing, 1988 ; Nunan, 1999, p. 57 ) .The SurveyParticipantsA group of 92 ( 37 males and 55 females ) Persian EFL fresher university pupils majoring in Teaching English as a Foreign Language ( TEFL ) class at the Faculty of Foreign Languages in a university in South of Esfahan were indiscriminately selected from nine categories to take portion in this survey. As freshers, their mean age was 18 old ages old. They learn English linguistic communication for academic intents. Freshman university pupils were selected as participants of this survey because they were at the get downing degree of third instruction. Knowledge of their acquisition manner ( s ) would be utile in placing and geting larning accomplishments which would heighten their acquisition. Therefore, increase their public presentation in larning English.InstrumentThe instrument utilized in this survey was the Le arning Style Preferences Questionnaire adapted from Willing ( 1988 ) . The four-point Likert graduated table questionnaire consisted of 45 points on â€Å" How make you larn best † ; ranged from 1: Strongly Disagree to 4: Strongly Agree. It was piloted prior to the existent informations aggregation and the dependability Cronbach ‘s Alpha was 0.844. The questionnaire consisted of four classs ( Communicative, Concrete, Authority-Oriented, and Analytical scholars ) . A list of 20 four points out of 40 five points related to these four types were chosen and modified based on the Persian EFL fresher university pupils ‘ acquisition. Items one to six represented scholars who liked to larn through observation and or listening to native talkers, speaking to friends in English and watching telecasting in English, and learn through conversations ( Communicative Learners ) . Items seven to twelve represented scholars who liked to larn through games, movies, cassettes, speakin g in braces, and utilizing English outside of the schoolroom ( Concrete Learners ) . Items 13 to eighteen represented scholars who preferred their instructors to explicate everything to them, have their ain text editions, survey grammar, learn by reading, and larn new words by seeing the words ( Authority-Oriented Learners ) . Items 19 to twenty four represented scholars who liked analyzing the regulations of grammar, analyzing English books, reading newspapers, analyzing by themselves, happening their ain errors, and working on jobs set by the instructor ( Analytic Learners ) .Findingss and DiscussionsDescriptive analysis of the Learning Style Preferences ( 37 Males, 55 Females )In order to detect the types of larning manner penchants of the pupils, the descriptive statistics ( agencies and standard divergences ) of the four types of larning manner penchants ( communicative, concrete, authority-oriented, and analytical ) were computed ( see Table 1 ) . The one which indicated the h ighest average value was considered to be the pupils ‘ preferred acquisition manner. Table 1 shows the mean and standard divergences of the four distinguishable classs. Responses to the statements of type one ( communicative ) had the highest average value of 3.24 and a standard divergence of 0.35, while the responses to analytical type of larning manners had the lowest average mark of 3.02 and a standard divergence of 0.38 for both males and females. It is implied that the bulk of Persian EFL fresher university pupils in this sample considered themselves communicative types of acquisition manners. This is consistent with the consequences of Ho ‘s ( Undated ) survey on two groups of university twelvemonth one and four groups of twelvemonth two Computer Studies pupils across five academic old ages. The survey indicated that most pupils were communicative scholars ; contradictory to the consequences of Liu ‘s ( 2008 ) survey on pupils in Taipei. Liu reported that responses to the statements of authority-oriented type of larning manners were the highest with the average mark of 11.52 and a standard divergence of 3.13 and communicative type of larning manners had the lowest mean mark ( M=8.87 and a standard divergence of 3.55 ) . Table 1 Mean and Standard Deviation of Learning Styles ( by Category ) Learning Manners Mean South dakota Nitrogen Communicative 3.24 0.358 92 Concrete 3.07 0.381 92 Authority-Oriented 3.10 0.353 92 Analytic 3.02 0.381 92 N= Number of respondents ; SD= Std. Deviation In add-on to the mean scores for the four types of larning manners in general, Table 2, 3, 4, and 5 show the mean and standard divergences of the pupils ‘ usage of larning manners by class and points: communicative, concrete, authority-oriented, and analytical acquisition manners. Table 2 Mean and Standard Deviations of the Students ‘ Communicative Learning Style ItemsLearning MannersMeanSouth dakota1Communicative Learning StyleI like to larn by watching, listening to native talkers of English.3.243.320.350.755 2 I like to larn by speaking to friends in English. 3.24 0.732 3 If I have pick, I would wish to larn English by watching Television in English outside of the schoolroom. 3.17 0.735 4 I like to larn by talking in English with aliens when there is a opportunity. 3.27 0.757 5 I like to larn English words by hearing the words. 3.25 0.673 6 In English category, I like to larn through the usage of conversations. 3.22 0.739 Table 2 demonstrates that the overall average value of communicative acquisition manner was 3.24 with a standard divergence of 0.35. The highest average value of 3.32 with a standard divergence 0.75 was noted for the point â€Å" I like to larn by watching, listening to native talkers of English. † Meanwhile, the point â€Å" If I have pick, I would wish to larn English by watching Television in English outside of the schoolroom. † scored the lowest mean mean with the value of 3.17 and a standard divergence of 0.73. It is inferred that the Persian EFL fresher university pupils have strong desire to larn by watching and listening to native talkers of English in schoolrooms. In other words, they tend to watch pictures and listen to tapes in schoolrooms. They like to pass on with one another. This is in understanding with the consequences of Riazi and Riasati ‘s ( 2007 ) survey. Table 3 Mean and Standard Deviations of the Students ‘ Concrete Learning Style ItemsLearning MannersMeanSouth dakota7Concrete Learning StyleIn English category, I like to larn through game.3.073.270.370.757 8 In English category, I like to larn by utilizing images, movies, and pictures. 3.29 0.749 9 I like to analyze English by speaking with another schoolmate 3.23 0.743 10 I like to larn by utilizing cassettes at place. 2.65 0.733 11 In English category, I like to listen to and utilize cassettes. 2.80 0.829 12 Outside of the schoolroom, I like to utilize English. 3.17 0.735 With respect to concrete acquisition manners, Table 3 demonstrates the overall average value of 3.07 and a standard divergence of 0.37. The consequences related to concrete larning manner dimension indicate that the point â€Å" In English category, I like to larn by utilizing images, movies, and pictures. † scored the highest mean mean with the average value of 3.29 and a standard divergence of 0.74 ; while the lowest average value of 2.65 with standard divergence of 0.73 was noted for the point â€Å" I like to larn by utilizing cassettes at place † . It is concluded that these scholars like to larn by illustrations in schoolrooms. The common feature of concrete scholars harmonizing to willing ( 1988 ) is the development of insufficiency or an lower status composite. They disfavour larning monotonously and written work. They like assortment. They prefer verbal and ocular experiences. They have strong desire to be entertained by utilizing games, and be given to be invo lved in larning physically. Table 4 Mean and Standard Deviations of the Students ‘ Authority-Oriented Learning Style ItemsLearning MannersMeanSouth dakota13Authority-Oriented Learning StyleI like the instructor to explicate everything to me.3.103.320.350.755 14 I want to compose everything in my notebook. 2.91 0.751 15 I like to hold my ain text edition. 3.27 0.757 16 In English category, I like to larn by reading. 3.17 0.720 17 I like to analyze grammar from specific to general. 3.23 0.728 18 I like to larn English words by seeing them. 2.70 0.795 Sing the 3rd type of larning manners ( authority-oriented ) , Table 4 indicates that the overall mean value was 3.10 and a standard divergence of 0.35. Therefore, the point â€Å" I like the instructor to explicate everything to me † scored the highest average value of 3.32 and a standard divergence of 0.75. While the lowest average value of 2.70 and a standard divergence of 0.79 were noted for the point â€Å" I like to larn English words by seeing them † . It is inferred that authority-oriented scholars tend to be taught clearly. They have desire to larn from their instructors. They look for constructions and measure by measure patterned advance. In general, they consider their instructors as authorization in the category. Harmonizing to Willing ( 1988 ) they like to follow some forms. Table 5 Mean and Standard Deviations of the Students ‘ Analytical Learning Style ItemsLearning MannersMeanSouth dakota19Analytic Learning StyleI like to analyze grammar from general to specific.3.022.680.380.838 20 At place, I like to larn by analyzing English books. 3.24 0.732 21 I like to analyze English by myself. 3.32 0.755 22 I like the instructor to allow me happen my errors. 3.25 0.750 23 I like the instructor to give me exercises to work on. 3.15 0.725 24 At place, I like to larn by reading English newspaper. 2.49 0.791 Finally, for analytical acquisition manners Table 5 reveals that the overall mean value was 3.02 with a standard divergence of 0.38. Based on the consequences, the point â€Å" I like to analyze English by myself † scored as highest average value of 3.32 and a standard divergence of 0.75 whereas the lowest average value of 2.49 with a standard divergence of 0.79 was noted for the point â€Å" At place, I like to larn by reading English newspaper † . This means that analytical types of scholars are independent and tend to happen solutions for their jobs while larning. Analytic scholars ‘ cognitive strengths steer them non merely to analyse carefully and uncover great involvement in constructions, but besides to set a big sum of value on demoing their independency by making these things themselves, autonomously ( Willing, 1988 ) . In general, it can be inferred from the findings aforementioned types of acquisition manners that the mass media such as telecasting, pic ture, tape recording equipments are the most powerful devices for larning foreign linguistic communications in Iran since English is learned and spoken merely in academic categories and for academic intents. Harmonizing to Celec-Murcia ( 2001 ) , such media motivate scholars by conveying the existent life state of affairs into the schoolroom and showing linguistic communication in its more complete communicative context.Descriptive Analysis of the Learning Style Preferences by GenderIn order to detect whether there was a difference between males and females in using learning manner penchants, the Independent-sample T-test was conducted. Table 6 demonstrates that there was no statistically important difference in the mean tonss for male and female pupils in communicative ( M= 3.27, SD= 0.35 ; M=3.22, SD=0.36, T ( 90 ) =0.66, p= 0.51 ) ; concrete ( M=3.10, SD=0.36 ; M=3.05, SD=0.39, T ( 90 ) =0.67, p=0.49 ) , authority-oriented ( M=3.09, SD=0.37 ; M=3.11, SD=0.34, T ( 90 ) = -0.21, p= 0.83 ) , and analytical acquisition manners ( M=3.09, SD=0.38, M=2.98, SD=0.37, T ( 90 ) =1.32, p=0.18 ) . In other words, males and females apply larning manners in a similar manner. This is in understanding with the consequences of Yik, Hidayu, Bariyyah and Asyimah ‘s ( Undated ) survey ( hypertext transfer protocol: //apps.emoe.gov.my/ipba/rdipba/cd1/article152.pdf accessed 26 March 2010 ) . Table 6 T-test for gender differences in larning manner PreferencesLiterGramNitrogenMeanSouth dakotaTPCom Meter F 37 55 3.27 3.22 0.35 0.36 0.66 0.51 Con Meter F 37 55 3.10 3.05 0.36 0.39 0.67 0.49 A-O Meter F 37 55 3.09 3.11 0.37 0.34 -0.21 0.83 Anal Meter F 37 55 3.09 2.98 0.38 0.37 1.32 0.18 Note: N=Number of Subjects ; LS=Learning Styles ; G=Gender ; M=Male ; F=Female ; Com=Communicative ; Con=Concrete ; A-O=Authority-Oriented ; Anal=Analytical In other words, all of the values of significance values were above the value of significance value of P & lt ; 0.05. Harmonizing to Cohen ( 1988 ) , the magnitudes of the differences in the agencies were somewhat little. Cohen believes that 0.01 indicates little consequence, 0.06 shows moderate consequence, and 0.14 shows big consequence. Therefore the Basque Homeland and Freedom square for these four types of acquisition manners are as follows: communicative ( eta square= 0.004 ) , concrete ( eta square= 0.005 ) , authority-oriented ( eta squared=0.000 ) , and analytical acquisition manner ( eta square= 0.018 ) which are really little.DeductionsSing the consequences of this survey, some deductions are discussed with the position of text book designs, larning and learning English as a foreign linguistic communication in Iran. As it has been identified that many of the fresher university pupils are communicative type of scholars, there should be a moderately safe index for the genera l way to see in planing text books for Persian EFL fresher university scholars. Many research surveies such as Smith ( 1985 ) , Claxon and Murrell ( 1987 ) , Willing ( 1988 ) , and Riazi and Riasati ( 2007 ) claim that larning methods that match with learning manner penchants lead to academic accomplishments, more communicative undertakings need to be included in the class as most scholars in this sample prefer to larn in a communicative manner. Willing ( 1988 ) suggested the acquisition methods preferred by communicative scholars as: 1 ) Learning by watching and listening to native talkers of the mark linguistic communication. 2 ) Learning by talking in English with aliens when there is a opportunity. 3 ) Learning by speaking to friends in English. 4 ) Learning by conversations. 5 ) Learning by watching Television in English. 6 ) Learning English by hearing the words. Therefore, the text edition interior decorators may necessitate to take into history the aforesaid methods recommen ded by Willing ( 1988 ) while planing communicative text books for categories. They can besides see group treatments and teacher-students meetings as pupils prefer to speak with equals and instructors ( Riazi and Riasati, 2007 ) . In the visible radiation of acquisition, effectual tools to assist pupils listen to native talkers of the mark linguistic communication is to utilize movies and picture plans in categories. In this instance, pupils get familiar with the other contexts, state of affairss, and civilizations. Auxiliary stuffs such as short narratives should be utilized in categories ( Riazi and Mansoorian, 2008 ) . By and large, pupils need to be involved in synergistic accomplishments. In order to lend pupils to be cognizant of their ain acquisition manners and strengths, stock lists of larning manner and other procedures can be utilized ( Claxton and Murrell, 1987, p six ) . In add-on, lectors should assist scholars understand more about their ain penchants for larning. There are some promising schemes employed by lectors to lend their scholars to understand more about their penchants for larning and suggest ways to cover with more efficaciously in classs taught in ways inconsistent with their manners . This can besides assist scholars take increasing charge of their ain acquisition and to be more active in the procedure ( Claxton and Murrell 1987, p. four ) . In footings of instruction, by roll uping some information on scholars ‘ acquisition manners can assist lectors place scholars who learn comfortably via the types of undertakings designed for the class. For case, this survey recommends that lectors should make their best to carry first-year university scholars to work in groups and learn them how to pass on ( converse ) with one another in English. Lecturers should present types of larning manners to pupils in order to acquire familiar with their manner of larning a foreign linguistic communication in general and larning English in peculiar. In general, pupils should be encouraged to happen out their ain types of larning manner penchants in order to ease their acquisition.DecisionsThe intent of the current survey was to place Persian EFL fresher university pupils ‘ types of larning manner penchants and their deductions on the instruction and larning procedure every bit good as the designs of the text books. This survey be sides aimed to detect whether or non there was a important difference between male and female fresher university pupils using larning manner penchants. The dominant learning manner penchants of Persian EFL fresher university pupils revealed that the bulk of the Persian EFL fresher university pupils considered themselves as communicative scholars. They tend to larn English as a foreign linguistic communication by listening to native talkers of English likely because they feel that this would be most utile for their demands in relation to English linguistic communication acquisition. This can assist them in bettering their pronunciation and speech pattern. The receptive accomplishments such as speech production and hearing are appealing to the scholars of this sample. They have desire to utilize conversations in the schoolrooms and communicate in English. It is besides concluded that Persian male and female pupils have no different preferred acquisition manners as the findings of this survey demonstrated that there was no statistically important difference between them with respect to their learning manner penchants while larning English as a foreign linguistic communication. More significantly, this research survey suggests placing the scholars ‘ types of larning manners to lend their lectors to set in the proportion of undertaking types in text books to do acquisition easier for pupils.

Comparitive study of mutual funds Essay

Investing in mutual funds provides a total solution for the investing needs. With a well-designed portfolio of mutual funds, the investor can have his own pool of professionally managed investments, even with a small initial investment. Mutual fund is a kind of trust that manages the pool of money collected from various investors and it is managed by a team of professional fund managers (usually called an Asset Management Company) for a small fee. An investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets. Mutual funds are operated by money managers, who invest the fund’s capital and attempt to produce capital gains and income for the fund’s investors. A mutual fund’s portfolio is structured and maintained to match the investment objectives stated in its prospectus. The Indian Mutual fund  business has passed through three phases. 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The major mutual fund players in Indian market at present are: ï  ¶ABN AMRO Mutual Fund I have chosen HDFC ASSET MANAGEMENT COMPANY from private sector and SBI MUTUAL FUND from public sector for my study because HDFC is no 1 in private sector mutual fund companies and SBI is no 1 in public sector mutual fund companies. HDFC Asset Management Company Limited (AMC) was incorporated under the Companies Act, 1956, on December 10, 1999, and was approved to act as an Asset Management Company for the Mutual Fund by SEBI on July 3, 2000. In terms of the Investment Management Agreement, the Trustee has appointed the HDFC Asset Management Company Limited to manage the Mutual Fund. The paid up capital of the AMC is Rs. 25.161 crore. SBI Funds Management Ltd. is the investment manager of SBI Mutual Fund. SBI Mutual Fund has been constituted as a trust, sponsored by State Bank India. Today the Fund has an investor base of over 2.8 million spread over 23 schemes. 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OBJECTIVES OF THE STUDY The study is being conducted for the following objectives: ïÆ'ËœTo develop understanding of the concept and working of mutual fund schemes. ïÆ'ËœTo analyze and compare the performance of selected mutual fund schemes offered by SBI mutual fund and HDFC mutual fund. ïÆ'ËœTo study the investor’s behavior towards the mutual fund schemes offered by public and private sector. RESEARCH METHODLOGY DATA COLLECTION The data required for the study is collected from primary as well as secondary sources. The primary data is collected through self constructed questionnaires which will be to know about the investors behavior towards mutual funds in private and public sector. SAMPLE AREA- AGRA CITY SAMPLE SIZE- 50 SAMPLING METHOD- CONVINIENT SAMPLING The secondary data is collected from websites. NATURE OF STUDY The study is analytical which includes comparative analysis of performance of mutual funds in public and private sector as well as analysis of investors behavior towards mutual funds in private and public sector. TOOLS USED FOR ANALYSIS ïÆ'ËœFinancial technique such as Sharpe ratio and Standard deviation. Presentation tools ïÆ'ËœBar graphs and pie charts REFERENCES 1) KHORANA AJAY (2001) â€Å"Performance Changes following Top Management Turnover: Evidence from Open-End Mutual Fund† Journal of Financial and Quantitative Analysis, September 2001 2) Sapar Rao Narayan and Madava Ravindran in his paper entitled Performance Evaluation of Indian Mutual Funds(2003) www.ssrn.com 3)Panwar Sharad and Madhumathi R. in their study entitled Characteristics and Performance Evaluation of selected Mutual funds in India(2006) Indian Institute of Capital Markets 9th Capital Markets Conference Paper 4)Ranganathan Kavitha in her study entitled A Study of Fund Selection Behaviour of Individual Investors Towards Mutual Funds – with Reference to Mumbai City (2006) Indian Institute of Capital Markets 9th BIBLIOGRAPHY www.mutualfundsonline.com www.hdfcfund.com www.sbimf.com www.valueresearchonline.com

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The Changing World - Assignment Example The assignment "The Changing World" discusses the issue of how rapidly the world is changing as whatever was in place twenty-five years ago, is not the same today and will not be so in the next twenty-five years. And dreaming helps to make things happen as once upon a time, video calling, using the internet and traveling at such fast speed across the world was a dream for most people. The next twenty-five years will help the world witnessed a plethora of changes that affect human lives in general. The technological aspects and potential in the world are immense today, and many scientists from renowned institutes all over the world have stated how speed is going to give its definition a run for its money. In the computer industry, communication, information transfer and using technology will become a much easier job with great speeds that are unimaginable to man today. The use of silicon chips, faster processing systems etc will all help to share information and resources in a much easier and transparent manner. The environment is also a great aspect of what the future might hold in store. Today, it is being abused by a man and thus steps are being taken in order to preserve and conserve greenery in order to have a better future for the generations to come. Global warming should be countered in the future with better technology, the earth will definitely witness some unwanted changes what with the kind of natural calamities and disasters that have been striking because of environmental changes in the atmosphere.

Visual Arts Experimental Drawing - Research Project Paper

Visual Arts Experimental Drawing - Project - Research Paper Example Hopper first attended New York School of Art and Design, where he was shocked at the prospect of drawing live nudes. His choice of subjects was mostly boats and women, still life and natural landscapes. He was influenced by Manet and Degas and particularly loved Rembrandt’s use of light and dark shadows in Nightwatch, and the work of French engraver Charles Meryon. He hated illustrations but was forced by economic circumstances to work at a copywriting agency during his early professional life. After his father died he moved to and lived in his Washington Square apartment in New York’s Greenwich Village for the rest of his life (Kuh, 53). Hopper got his subject matter from both seascapes and landscapes and scenes in contemporary American life. His Girl at a Sewing Machine (1921) shows a girl at work on this machine, deeply involved as the sunlight comes into her room and lights it up. His work often depicts the solitude he felt in life. Hopper’s most celebrated p ainting is Nighthawks (1942) which is famous for its attention to detail, cinematic perspective and use of electric light set against the contrast of the night outside. It shows a group of people at a diner. Hopper’s Girlie Show (1941) is one of his more audacious pieces, where a red headed striptease is seen moving confidently across a stage as musicians play in the background (Barbara, 158). Works Cited Haskell, Barbara. Modern Life: Edward Hopper and His Time. Hamburg: Bucerius Kunst Forum, 2009. Print. Kuh, Katharine. Interview with Edward Hopper in Katherine Kuh, The Artist's Voice: Talks with Seventeen Artists. New York: Di Capo Press, 2000. Print. Levin, Gail. Edward Hopper: An Intimate Biography. New York: Knopf, 1995. Print. Lisa Milroy Born in Vancouver Canada in 1959, Lisa Milroy moved to London in 1979 and has been living and working there since then. She first studied at the Universite de Paris-Sorbonne in 1977–78 for a short while before moving on to Lond on’s St Martin's School of Art in 1978–79. She completed her art studies at the University of London, UK from 1979 to 1982. Lisa’s first solo art exhibition took place in 1984. She was also given the 1989 John Moore Painting Prize. Lisa currently teaches at the Slade School of Fine Art in London. As an artist, Lisa Milroy is famous for painting everyday items like vases, clothes and shoes in the form of collections. Milroy also paints objects in formations like in the shape of grids, lines, groups, rows and columns which she likes to create on plain backgrounds. Quite often Lisa’s arrangements of objects are influenced by their functional identity. For instance, stamps transform into islands for the eyes to travel between or wheels move forward at a dizzying visual pace. Handles (1989) won for Lisa the John Moores Award. This is a depiction of various handles of different types all spaced evenly through the work and can be viewed as a combination of lines dots and circles, assembled or spaced as in a catalog. The lack of color is intriguing and one cannot help wanting to pull on the handles to see if they work (Walker Art Gallery). Handles, 1989. Her painting Shoes (1985) shows a collection of shoes evenly spaced but in different configurations as to positions. Not one is repeated, they all

Busiess Taxation Essay Example | Topics and Well Written Essays - 1500 words

Busiess Taxation - Essay Example this expenditure is not an operational variable, it is charged in the balance sheet as an asset rather than expenditure in the profit and loss account. However, usage of the fixed asset over time is shown in the profit and loss account as a depreciating charge. Tax is applicable for companies on profit figure at the end of the tax year. Since the tax is fixed rate, the higher the profit the company shows, the higher tax it has to pay. Therefore to evade paying higher taxes, companies understate their profits by depreciating their fixed assets on a high value. This reduces the profit and hence the tax payable. Since this practise promotes immoral and unfair picture of the accounts, the government of UK introduced the concept of Capital Allowance through corporation tax. The case of IR Commrs vs Duke of Westminster (1936), exactly points out this need where it states that everyone â€Å"is entitled, if he can, to order his affairs, so that the tax attaching under the appropriate acts is less than it would otherwise be†. The government has fixed a rate of relief that is received on the purchase of capital goods. Companies can claim this type of tax relief when buying and investing. In practice this does the exact same thing a depreciation does since a company is able to set off a proportion of the costs of purchases against the profits it makes so that the total tax bill is reduced. Most capital allowances allow you to write off a percentage of the value of the asset against profits over several years. They are available at a variety of rates and these rates depend on the product bought, the time it was bought in, the nature of the asset and the size of your business. (Georgina, 2006; S. J. D. 2007) As mentioned in the previous section, tax relief can be claimed by companies on the purchase of capital goods. According to the Business Links Website, these capital allowances are available on three types of products, plant and machinery, buildings and research and

The Glenn Chasse Hotel Essay Example | Topics and Well Written Essays - 1500 words

The Glenn Chasse Hotel - Essay Example It also defines the obligations and rights of an employer towards an employee hence safeguarding rights and preventing violation of duties from both parties. Apart from the written contract there is also a formation of a psychological contract between the employer and the employee that represents their mutual beliefs and perceptions. It describes the promises and expectations of each of the parties during the time of recruitment. Feldhiem (1999)3 reflects these two strands by dividing the psychological contract into: Kate: She is the head house keeper and is quoted as "unfaunfamiliar with her new duties such as budgeting, training and discipline ". The smooth functioning of her department seems to be suffering due to this. She is not successful in appropriately training and guiding her staff as a consequence of which they are not familiar with her way of work. Harriet -Elspeth's assistant : Elspeth states that "good standards of casual staff are hard to find". If her statement is not influenced by personal bias, this is an indication that the recruitment process of the hotel is sub- standard and proper giudlines are not set for the employees. Harriet is not notified that it is not within her authoritative scope to "borrow" staff without notice. This prevents the smooth flow of hotel functions because crew( who again are not specific and sure of their job profiles) are not available at places where they are needed resulting in low turn over and uneven distribution of labor. Principle statements: The principle statement should be handed over to the employee within two months for job commencement. It essentially contains all the terms and conditions upon which the employment relationship has been formed which means all terms and conditions are agreeable to both employer and the employee. It plays a pivotal role in the regulation of human resources as well as sorting out legal issues which might arise in the course of the contract. The principle statement should clearly cite the employees exact job profile and all the tasks that come under his or her responsibility. It should also mention any extra tasks, which the employee is expected to do at times which might be paid/unpaid for. The salaries, incentives, deductions and addition allowances (where ever they are applicable) should be mentioned. The working hours and compensation for overtime should be specified along with number of paid holidays and sick leaves. The employee should be provided with all the rules, regulations and principles of the concerned organization to ensure discipline and also the terms and conditions for termination, grievance procedures and legal action. Specifying health and insurance coverage conditions is also important. Apart from the

Panopticism he states that the development of discipline Essay Example for Free

Panopticism he states that the development of discipline Essay In Michel Foucaults (1975) excerpt, Panopticism he states that the development of discipline in the 18th and 19th centuries came from he emergence of prison as the form of punishment for every crime. During these times the major crimes committed were from the French Revolution and the major riots and civil unrest in the French society. In these prisons the Panopticon puts the inmates in a different state in which each one is there own separate individual. Foucault states that the major effect of these Panopticon are that they â€Å"induce the inmate in a state of conscious and permanent visibility that assures the automatic functioning of power. † †Such a structure allows individuals to be seen and restricts their ability to communicate with the security, the warden, or other prisoners. In this case, crowds are nonexistent and each person is confined to their cell where they can be viewed by the watcher. He states that this new form of punishment lead to the development of a whole new kind of individuality for bodies. The brilliance of this prison is that the Panopticon forces blindness onto the prisoner where he or she is never sure if someone’s watching or not, inducing a harmless form of paranoia, keeping people in place. When a person is accused of a crime, society finds upon itself the responsibility of punishing him or her. The question of morality, however, is finding the perfect punishment in compensation of the crime that was committed. With the Panopticon, rather than breaking them down physically by using tortures like the thumbscrew or whips, prisoners can be broken down mentally, which allows the reconstruction of their mentality. This entire theory is effective due to the natural desire that people in general have to conform to society’s pressures. After all, it is ingrained in the natural being of humans to know that in order to survive, everyone needs a place in society whether it is as the businessman or as a joker. The fear of complete abandonment from this institution allows the system to work properly. Next, the Panopticon is essential to society in its ability to give a prisoner the chance of redeeming himself or herself to become a crucial part of society again. Instead of seeing revenge on the prisoners, this system allows them to be reformed through a force of habit. As prisoners get used to the idea that they’re being watched at all times with or without their knowledge, they adjust their behavior to meet society’s standards and norms. Thus, with a strong sense of paranoia, once the prisoner comes out of the Panopticon, he or she will rethink any decisions of breaking the rules. Once the person goes through that phase of the Panopticon imprisonment, he or she is set for a regular life in the real world with human interaction. In addition, with the Panopticon, power isn’t centralized in the hands of the warden or prison guards. The mere concept of being spied on causes others to display normal behavior, one that they want to portray to society. The real punishment that the prisoner goes through is one within his or her own mind where due to paranoia, the person shapes up to meet the rules of society in what is right rather than wrong. In this case, no one has power over another and even the amount of guards can be lessened; the prisoner is unable to tell the difference as to who is watching or how many people are watching. Power isn’t given to people but is within the architecture of the Panopticon. There will be no more vicious beatings of prisoners and no more degradation of them. In the end, they’re like everyone else, another everyday person in today’s world. Panopticism creates self-discipline forced into play through one’s own mentality of paranoia and fear, allowing criminals to be broken down mentally instead of physically, to redeem themselves as a part of society again, and to allow power to not be centralized in the hands of the warden or prison guards. It’s not only an effective system but it’s also efficient in the way that those separated from society may still have the ability to blend back in after undergoing this type of imprisonment. As a result, the concept of a Panopticon would certainly be better than the status quo where punishment is used and people are locked away behind bars without given a chance to prove that they’re reformed. Any cruel and unusual punishments that may occur are abolished and finally, for those who have made a mistake or two, redemption is finally possible.

Approaches to Employee Retention

Approaches to Employee Retention Attracting and retaining the quality staff is the competitive advantage for many organizations in challenging economic environment. There are two main approaches to attracting and retaining employees by the strategies employer of choice and employee engagement. Employer of choice has become in HRM in contemporary business recent years. It is representative of a whole new design of corporate culture. Employer of choice is applied in the company priorities by most successful and respected business leaders today. Now more and more employers are using an employer of choice strategy by providing and offering varieties of employee benefits in order to attract and retain best people. There are four measurements for monitoring the companys performance. In addition to market share, consistent financials and being a valuable corporate citizen, the fundamental element for a successful company is being an employer of choice. When companies are losing talent and experienced staff, the companies are losing professionals and expertise that gained at company expense, hard -built customer relationship as well that are very hard to replace todays labour market. To put employer of choice as the top priorities list can give the company competitive advantage be cause it can attract and retain critical human assets. The employee engagement is becoming very important across the globe as the customer power and employee power are increasing in the modern economic and business world. As 200 companies survey found that it can have $21 million benefit moving a workforce of 8000 employees from low level to high level engagement. And compared with 20% of disengaged the employees, more than 65% engaged employees say that they have a better understanding how to meet the customer requirements and needs. Employee engagement can also make effort on mental and emotional commitment to the organization. Engaged employees are willing to give extra effort to their job that can lead to increase the productivity. Some researches show that the employee engagement strategy makes an average less than three days sick leave per year than six days for the disengaged employees A successful employee engagement strategy helps create a community at the workplace and not just a workforce. When employees are effectively and positively engaged with their organisation, they form an emotional connection with the company. This affects their attitude towards both their colleagues and the companys clients and improves customer satisfaction and service levels. As the question mentioned that the companies must reject the concept that the loyalty is dead among todays employees. The company has to create a challenging environment that can attract and retain people. I totally agree this conception that employee royalty and satisfactory can be build up by employee engagement. It make employee make effort to the organization from coginitive level, emotional level and physical level. Engaged employees always think about the company, feel inspired by their job, they are customer focused in their approach, they care about the future of the company and are prepared to invest their own effort to see that the organization succeeds. It is now a generally acknowledged business fact that employee engagement is a key driver of business success. Employee engagement strategy can be applied no matter in small or large companies. It benefits the organizations and individuals, improving the performance, boosting the bottom line and makes employees happier and the work more enjoyable. However, it is not always the win-win situation. Some organization use employee engagement that can drive work intensification. It would obviously run this risk of being detrimental to the individuals concerned. The organization is expecting the employees to go one step further that can make overtime working normalised. And the over-performance rewarded can leave behind the staffs that just do a good job. In other hand, it is not easy to achieve work-life balance in some high-performance companies under employee engagement strategy. The priority of work with long and non-standard hours takes over family and social life. The increasing effort that engaged employees put into the work time make the work and life unbalanced. The latest research shows th at the employee engagement by high performance work systems may accrue marginal benefits in terms of the higher level of involvement and commitment. However, these benefits are outweighed by the associated increases in responsibility, workload, work-life spill over and work stress. 2. How companies are dealing with the linkages between HR and strategic formulation. Strategic Human Resource Management (SHRM) in an organization can be defined as accepting and involving the HR function as a strategic partner in the formulation and implementation of the companys strategies through HR activities such as recruiting, selecting, training and rewarding personnel. SHRM means linking of HR with strategic objectives to improve business performance and company culture to develop competitive advantage, innovation and flexibility. There are four different levels of linkage between HR strategic and the strategic management process: administrative linkage, one-way linkage, two-way linkage and integrative linkage. These four levels of linkage are very helpful for an organization to categorize which HRM strategy has to be applied. The administrative linkage has no linkage between strategic plan and HR function. It simply engages in administrative work that has no emphasis placed on achieving the linkage in both strategy formulation and strategy implantation. It focuses on day to day activities and personal management. In one-way linkage, the company develops the strategic plan and then informs the HR function. Although it does recognize the importance of human resources in implementing the strategic plan, it precludes the company from considering human resource issues while formulating the strategic plan. In two-way linkage, he strategic planning team informs the HRM function of the various strategies the company is considering à ¯Ã†â€™Ã‚   HRM executives analyze the human resource implications of the various strategies, presenting the results to the strategic planning team à ¯Ã†â€™Ã‚   The strategic plan is passed on to the HRM executive, who develops programs to implement it. The Integrative linkage is based on continuing interaction. The HRM function is built right into the strategy formulation and implementation processes. In the higher level linkage such as two-way linkage and integrative linkage are characterized by a close relationship between HRM and business strategies. HRM effectiveness can be explained by examine the contributions of the HRM function in the process of achieving strategic integration. In both of the short term and long term, SHRM should complement and contribute to the improvement of the productive capacity of enterprises. Strategic business partner: a role performed by HR practitioners, aiming to execute organisational strategy by aligning HR processes with the organisational strategy. HR managers become able to reengineer the way HR department executes its job, accomplishes those transactional HR jobs cost-competitively, and increasingly turn its attention to truly being a strategic partner with the firms top executives With an integrative linkage, strategic planners consider all the people-related business issues before making a strategic choice. These issues are identified with regard to the mission, goals, opportunities, threats, strengths and weakness, leading the strategic planning team to make a more intelligent strategic choice. While this process does not guarantee success, companies that address these issues are more likely to make a choice that will ultimately succeed. Research has supported the need to have HR executives integrally involved in strategy formulation. The level of HR involvement was positively related to the refinery managers evaluation of the effectiveness of the HR function. HR involvement was highest when top managers viewed employees as a strategic asset and this was associated with reduce turnover. HR practices that are properly implemented do deliver significant financial benefits to an organization. ( profitability, shareholder return, stock prices and organizational survival) Administrative linkage level will either become more integrated or face extinction. In addition, companies will move toward becoming interactively linked in an effort to strategically manage human recourses. Integrating the HR function into strategy formulation may help the strategic planning team make the most effective strategic choice. Once the strategic choice is determined, HR must take the active role in its implementation. HR is emerging as the key concept in assessing the competitive assets of organizations. HR managers and professionals, by virtue of their knowledge of human performance, are well positioned to exercise strategic leadership and contribute significantly to a firms competitive advantage. Therefore, the company has to create opportunities for the HR function to develop a more strategic role in a firms operation (Lawler Mohrman, 2003). As the arrival of the global economy, the HRM has more challenges to create an environment to maintain the competitive advantages. In order to become a strategic partner in the organization, the HR executive must have the abilities to research and training that from being acknowledge of the HR concepts, logic and practices. HR executives have to show the competencies which add more value to the organization. The role of HRM is becoming more creative and strategic to adapt the changes of worldwide workforce structures. More and more high performing companies have HR executive involved in business at a strategic level. There are four major factors of competencies related to how well an HR professional contributes in a strategic way to businesses in areas such as strategic decision making, culture management, fast change, and market driven connectivity. Previously, organization structured on a centralized and compartmentalized basis-head office, marketing, manufacturing, financing etc. By the end of the 1980s, HR played largely on administrative work that focus on HR operations and processing standardisation and technology which has no connection with the strategic management. The role of HR traditionally in the organization is no more than a one- way linkage role. They were doing what the business manager wanted. In recent years, theres a fundamental reassessments of human resources structures and positions. The massive change of business conditions, organizational structure and strategic decision makers has been leading HR to develop their perspectives and functions. Today, senior management expects HR to move beyond its traditional. HR is more tightly linked to corporate strategy and to creating business value through HR services that address a companys most pressing strategic challenges. HR now seek t decentralize and to integrate their operations and developing cross-functional teams. HR is anticipating critical workforce trends, shaping and executing business strategy, identifying and addressing people-related risks and regulations, enhancing workforce performance and productivity, and offering new HR services to help a company improve and grow. In order to become a strategic partner in the company, the HR executives need to fulfil five challenges to help the company to achieve critical goals. Posses and use their knowledge of how people can and do play a role in competitive advantage as well as policies, programs and practices that can leverage the companys people as a source of competitive advantage Firstly, knowledge management is essential for competitive advantage for helping HR to play an important role in developing company culture for organizational learning as a strategic partner. With knowledge management, business success is achieved in a culture of learning and workplace planning. The Research Quarterly found that the HR executives can leverage the company people through knowledge management, for competitive advantage in a challenging economy. HR executive and professionals has to acquire the knowledge and skills that are necessarily link HR to stakeholder value. And HR related policies, programs and rules can have a fundamental influence on workforce behavior that helping company to achieve the competitive advantages. To become the strategic partner, it requires HR executive to be involved in transferring knowledge. HR professionals must know how to optimize policies and practices, how to manage the learning that results from any change or execution process associated with new business structures. And HR executives need to have multiple channels to make sure the engagement of business strategies. HR executives must demonstrate business knowledge includes not only how it fulfills its mission, but also how it serves its customers and differentiates itself from its competitors. When HR professionals demonstrate their understanding of what is driving their business, they will add value by mobilizing the right workforce with the right skills to achieve the business goals of enterprise. Knowledge management requires knowledge managers. Key business resources like labor and capital have substantial organizational functions devoted to their management. Knowledge wont be well managed until some group within a  ®rm has clear responsibility for the job. Among the tasks  that such a group might perform are collecting and categorizing knowledge establishing a knowledge oriented technology infrastructure, and monitoring the use of knowledge. HR need to have clear strategies, outcomes, products , services and structures So the HR staff can achieve their goals and deliver the necessary outcomes. HR staff can do this to fulfilling for management roles Strategic HR role- aligns HR and business strategy and delivers the executive of strategy HR executives must be able to translate business needs in HR strategies to build up individual, team and organizational capabilities. HR strategy should be directly relevant to business requirement and delivering value that lead to an intense focus on structural realignment for HR teams. It requires HR to have competing perspectives, values and services. It also involved meeting stakeholder need for respect and ownership. HR executives need to widen the focus on learning new behaviours, changing attitudes and processes. Management of company infrastructure role- reengineers organization processes and builds an efficient infrastructure Management of employee contribution role- listening and responding the employees- employee commitment and capability is increased Transformation and change role- ensuing the organization has the capacity for change and delivers a renewed organization HRIS- HR information systems- technology is facilitating the transformation of HR function HRIS is designed to help provide information used in HR decision making such as administration, payroll, recruiting, training, and performance analysis. HRIS makes HR department working more effective to handle daily administrative tasks. Using the value-added approach to justify the HRIS expenditure links the system with the key business direction of the organization, and makes the critical of HR information to business success. The HRIS becomes not just a way to reduce administrative costs, but a key element of the business strategies. In additional to providing a framework of justifying HRIS expenditure as a strategic investment, the value-added approach emphasizes the role of HR as an active strategic partner in achieving the originations strategic business objectives Technology is facilitating the transformation of HR function. These technology solutions can cover multiple HR tasks, such as recruiting, benefits administration, and training administration. Applications and data a re usually shared in common across the company, with links to other systems in services centre operations, finance, and accounting as well as third-party systems for such tasks as payroll and benefits. Modern HRIS are comprehensive, accurate and accessible systems for recording employee and work data relevant to HRM, HR and organizational planning. HRIS helps the organization to improve strategic planning and program development and faster information processing times. By increasing administrative efficiency, technology allows HR to have fewer staff marking more value-added contributions to their organizations. The rapid evolution of electronic HR delivery systems is pushing more information in more usable formats to employees and managers who can use it directly for the benefit of their organizations. Fast and cheap access to accurate real time HR information Access and the ability to analyse, assess, interpret, manipulate, leverage and share the information effectively will be key to giving organizations a strategic edge. Successful data mining will be made possible by the use of date warehouses with their ability to consolidate internal and external information with powerful analytical tools Ubiquitous access to information to improve employee effectiveness and efficiency. This means working from anywhere and at anytime, the size, format, the footprint of technology deliverables will more from departmental desktop devices operating under the full control of the user organization to a mixture of hand-held, pocket-sized, integrated devices and wireless linkage that provide needed access on a real time basis to centralized processing and data storage capabilities. Instant access to all needed knowledge and to essential meaningful data will be a keystone for the successful enterprise. A variety of analytics and decision trees. Smart self-service. Customized content. HR executives must implement the new plans or programs. HR executive must have the skills to oversee the change in a way that ensures it success. Change was more successfully where HR professionals had been involved in developing the vision of the organisation, strategic planning, the change required and where the HR manage was well paid and reported directly to CEO. In previous times, change is constant. HR executives like scanning, scenario building and search conferences can help to predict the future and manage change. However, the most effective HR executives will not depend on formulas but will develop their strategic intelligence including foresight, partnering with people who complement their strengths, visioning with systems thinking, motivating and empowering their collaborators to realize their visions to create a winning future for their organizations. HR executives must have integration competence, the ability to integrative the three other competencies to increase the companys value. Although specialist knowledge is necessary, a generalist perspective must be taken in making decisions. This means that how HR all functions fit together to be effective and recognising that changes in any one part of HR package are likely to requires changes in other parts of the package. There are a few competencies the HR executives have to master to become a strategic partner. The integration competency is one of the most important that can integrate the other three competencies together to increase the organizations value. HR executives are playing the role as connecting hiring, training and worker evaluations via organizational competencies. From talent mapping and planning to performance evaluation, recruitment, retention and even benefits administration, todays human capital professionals are constantly seeking new ways to streamline, integrate and align human capital functions with broader corporate objectives The organization management has to realize that it is very important to have an integrated and consistent technology platform for HRM. The more integration between activities as diverse as recruitment, payroll and benefits management, training/development and performance measurement, the better HR executives can be at overall workforce planning and managing and motivating individual workers. As the result, the organization can be more effective These developments lead to an entirely new set of competencies for todays strategic Hr executive. The new strategic role of HR shows both opportunities and challenges. These include forming a series of partners with senior executives, line managers and external providers of HR services. As companies cope with the economy, HR can be instrumental in helping organizations leverage knowledge-based resources for business results. As highlighted in Creating People Advantage, critical HR challenges focus on three strategic categories, all related to knowledge management: 1) developing and retaining the best employees (talent, leadership development, work/life balance); 2) anticipating change (demographics, change, cultural transformation, globalization); and 3) enabling the organization (becoming a learning organization). (4) As indicated in a SHRM April 2009 poll of U.S.-based organizations and multinational companies, the primary focus of companies now is workforce planning. Although hiring expectations are low, talent management priorities remain high despite the economic downturn (see Figure 1 Competitive challenges influencing HRM The challenge of HR innovation Knowledge management It is no secret that knowledge is power. Knowledge management can create competitive advantage for a company and its customers. By sharing information and best practices, organizations create expanded opportunities for market share and financial growth. Furthermore, knowledge management provides a means for organizations to differentiate themselves from competitors. Second, KM can create a truly customer-focused culture. Appropriate organization resources can be directed toward solving customer problems or meeting customer needs quickly and effectively. Third, knowledge management can be a catalyst. Through tools, resources, and systems, it can help ignite creativity and innovation in the development of an organizations products and services. Fourth, KM can improve time to market. By leveraging best practices, learning and other time-savers to improve productivity, products can be introduced faster. Last, KM can expand a companys strategic options. By leveraging intellectual property in research and development efforts as well as overall market and business strategy, organizations can discover new ways to create value. Knowledge management can provide an organization with man benefits. Organizations can more effectively counter problems and threats and can respond more proactively to opportunities. In a knowledge based economy, managing knowledge along with other resources is a requirement, not an option. Knowledge workers Self-managing, automony, responsibility for continuing innovation Knowledge workers in todays workforce are individuals who are valued for their ability to interpret information within a specific subject area. They will often advance the overall understanding of that subject through focused analysis, design and/or development. They use research skills to define problems and to identify alternatives. Fueled by their expertise and insight, they work to solve those problems, in an effort to influence company decisions, priorities and strategies As the workers become more knowledge based, firms will need to implement strategic human resource practices in order to retain their tacit knowledge base either by retaining the tacit knowledge or by retaining the knowledge worker and thus retaining a critical competitive advantage. Performance of knowledge based industries depends on organizations attracting, holding, and motivating knowledge workers (Drucker, 2003). The transition to knowledge workers is having a significant impact on human resource practices. The knowledge workers must think like entrepreneurs, and the firms must think of the knowledge workers as entrepreneurial professionals as well as ensure a learning organization where tacit knowledge is actively diffused throughout the firm. This will allow the firm to better manage their knowledge resources through HR practices and help sustain their competitive advantage. High-performance work systems (HPWS)- combining people and technology- self-managing work teams Change in employees work roles and skill requirement The use of teams to perform work Changes in the nature of managerial work Changes in company structure Increased ability of HR information HRM practices in HPWS The challenge of sustainability The challenge of globalisation The challenge of attracting and retaining people NOKIA CASE:- Connecting People Exernal and internal people Nokia is the worlds leading mobile phone supplier and a leading supplier of mobile and fixed telecom networks including related customer services. Nokias corporate headquarters are in over 120 countries and employees are more than 47000 people worldwide. Human Resource Management plays an important role for Nokia to become the giant among the communication rivals, HRM in the new economy should to be human centric with a strong technology focus. Nokia use the SHRM to leverage on emerging technologies to better satisfy the wants and needs of the knowledge workers and in the process to build a competitive advantages. Nokia Australia is recognized as an employer of choice having been named National Best Employer in 2002 by Best Employer to Work for in Australia Awards sponsored by Hewitt, AGSM and John Fairfax. Nokia is one of only five companies to have consistently featured in the Best ployer category since the inception of these awards. Nokias HR policies have played a key role in helping the company to reach its 45 percent share of the global handset market and industry-leading profit margins of 20 to 25 percent, at a time of technological change and intense competition from Asian manufacturers. At Nokia values are the foundation and people the core. Nokia offer a workplace with a world of opportunities, engaging work, global culture and competitive rewards. The goal of Nokia HR is to create an environment in which all employees can fulfill their potential. It is crucial for the company to have the ability to adapt successfully to the high speed of change in the global market. The scale of Nokias business also means that Nokia employees can lead or participate in projects that have global impact, affecting the lives of millions of people and fulfilling Nokias mission: connecting people. Attracting, motivating and retaining people have become the main external influence on Nokias HR strategies. These four elements are: The first element of Nokia HR strategy is the Nokia way and values. Nokia is a networked organization with speed and flexibility decision making. Nokia provides individuals with a platform for personal growth in a challenge environment with a clear vision, goals and management principles. The Nokia Way brings talented people together who share the principles and success. Through the extensive employee engagement, Nokia have renewed their values that reflect their business and changing environment. Nokia is continuing engage all the stakeholders and employees to meet the needs of customers. And Nokias HR strategy includes the passion for innovation through new and improved ways and better understanding the world. Professional and personal growth (Challenge of Innovation) Nokia is focusing on professional and personal growth. Only with truly innovative ideas can make the company and its people to develop the industry and improve the products and services. Commitment to Self-developments People at Nokia is continuously looking for ways to improve their performance in order to stay at the forefront of technology and develop own competencies. Employees are encouraged to create their own development plan and take advantage of the variety of available learning solutions and methods. On the job learning is heavily encouraged. Nokia has the high-performance work systems (HPWS). First, Employees reward and compensations at Nokia is related to the companys performance.Nokia provides employees with market competitive rewards through a flexible global structure, which can address diverse and changing business and employment environments, as well as specific individual preferences. Nokia rewards employees for good performance, competence development, and for overall company success. This creates a positive and encouraging environment with opportunities for employees to optimize their potential and be rewarded fairly. Higher performance and contribution will lead to higher rewards. The Nokia global market competitive rewards structure addresses the need for flexibility, personalization, empowerment and commitment. Second, Nokia has the coaching and management training system. Coaching is regarded as a vital part of continuous learning. Highly skilled colleagues at Nokia provide employees with rich sources of experience and knowledge. Receiving coaching and partic ipating in different teams will fuel employees ´ development as well as give them the opportunity, every day, to share ideas and goals with innovators and industry leaders. Employees have access to a wide variety of training activities. Through global network of Learning Centers, Nokia HR aim to offer a consistent standard of training and development to all employees. The Learning Market Place Intranet contains information on all Nokia ´s learning solutions including e-learning as well as classroom training. Management Training Nokia place particular focus on developing managers in management and leadership skills. It is one of the key areas in competence development. There is a full range of training available from new managers ´ programs to senior programs for our more experienced people. Internal Job Market (Changes in the place of work) All employees at Nokia are invited to look at the job opportunities available inside Nokia. All vacancies, with the exception of very senior positions, are advertised internally. Employees are encouraged to improve their competencies through changing their positions. Internal job opportunities, the possibility to register to our internal candidate pool and other services for job-seeking inside the company are available through the Internal Job Market Intranet. The aim is to give Nokia people the opportunity to manage their own careers. Performance Management Nokia has created a successful performance management system across the whole company called Investing In People (IIP). This system is closely aligned to the company strategy and planning processes and involves biannual formalized discussions between employees and their managers. Employees are encouraged to be active and to own their IIP. In this way, employees always understand what is expected from them, how their individual achievements support the Nokia overall strategy, and how they are rewarded. Work-life balance The well-being of our employees is important and also fundamental to the Nokia Way. We as an employer recognize the importance of the balance between work content and personal interests and needs, as well as the impact of that balance on employee well-b