Socio-Economic Inequality in South Africa is Due to the...

Socio-economic inequality in South Africa is due to the institutionalised ideological mismatch regarding labour and economic policy Economic growth is shaped by policy context and promoted most effectively when it is consistent with either liberal market or co-ordinated market ideal type varieties of Capitalism. Policy inconsistency dampers economic growth post-apartheid South Africa attempted to adopt a social-democratic and co-ordinated variety of Capitalism. This failed due to the adoption of macro-economic neo-liberal policies. Organised labour protected labour market policies which lead to policy inconsistencies with regard to trade liberalisation. Trade liberalisation combined with labour market protection leads to unemployment.†¦show more content†¦A social democratic or coordinated variety of capitalism seemed like South Africa’s destiny. CME-type coordinated wage setting seemed realistic and major effort was put into developing regional and national-level social democratic institutions. Organised business and labour agreed to discuss the impact of labour relations on the economy. National Economic Development and Labour Council (NEDLAC) According to the leading business representative â€Å" Nedlac was intended to inaugurate a new era of inclusive consensus-seeking and ultimately decision making in the economic and social arenas† (Parsons 2007, 9). Nedlac failed. The first obstacle was the fact that peak- level business organisation was racially divided which made national coordination impossible. BSA turned into BUSA and from it emerged BBC. The second blunder came from government when they only referred some economic policies to Nedlac. The post-apartheid Labour relations act was negotiated in Nedlac before it went to parliament; sadly they neglected to send the 1996 â€Å"Growth Employment and Redistribution (GEAR)† macro-economic framework through Nedlac. Even though it would curb government spending, enhance private investment and liberalise aspects of the labour laws to promote job creation, it was still met with great public condemnationShow MoreRelatedOrganisational Theory230255 Words   |  922 Pagesorganization theory with several new thinkers and ideas. Pedagogically a well-structured book with many clear learning objectives, cases, examples and good summaries for every chapter. Professor Martin Lindell, Hanken Business School, Swedish School of Economics and Business Administration, Finland This book makes it easier to understand the current stand of organization theory. I strongly recommend it to anyone seriously interested in the different intellectual traditions that contribute to our understanding

Performance Of Microfinance Institutions In Mediterranean Countries - Free Essay Example

Sample details Pages: 21 Words: 6429 Downloads: 9 Date added: 2017/06/26 Category Finance Essay Type Analytical essay Did you like this example? This paper examines empirically the relation between governance mechanisms and the performance of Euro-Mediterranean microfinance institutions (MFIs) in terms of outreach and sustainability. Specifically, we found that performance-based compensation of managers is not associated with better performance of MFIs. The results identify tradeoffs between MFIs outreach and sustainability depending on larger boards size, and on higher proportion of unaffiliated directors. Don’t waste time! Our writers will create an original "Performance Of Microfinance Institutions In Mediterranean Countries" essay for you Create order Moreover, the study shows that the more women there are on a board the better the performance, and reveals that external governance mechanisms help MFIs to achieve better financial performance. This study also allows us to distinguish other factors leading to a better sustainability such as Regulation, the use of individual lending methodology. However, the MFIs active as NGOs seem to be more consistent with their social mission than with their financial performance. 1. Introduction Microfinance is the provision of financial and non financial services to the poor who are excluded from financial/credit markets because they are considered unbankable. Indeed, microfinance institutions has evolved primarily as a consequence of the efforts individuals and assistance agencies committed to the idea of ensuring that the poor people has access to some form of credit. The majority of MFIs claims having a dual mission of reaching poor borrowers (outreach), and being financially sustainabl e (sustainability). While the social goals of reaching the poorest and poverty alleviation are valid, financial sustainability has emerged as one of the core management and governance issues. The shrinking resources base for donor funds to support the increasing demand for grants and soft loans implies that MFIs will eventually have to support themselves (Ledgerwood, 2000). However, their sustainability will focus on governance structures within the industry. Indeed, as M Labie (2000) observes, in the last decade corporate governance principles have imposed themselves as the basic rules for any well Run Company to follow. The trend has however transcended from traditional business companies but is now part of the globalization process often seen as a tool for standardizing the controlling vision for any major organization in the world. The drive towards Governance has been propelled by a number of factors particularly the collapses of some of the major players in the Industry, th e influx of private Equity and fall in donor funding. Governance is about achieving corporate goals. The fundamental purpose of MFIs is to contribute to a country development. This involves reaching out to more clients especially the poor (Helms, 2006; Johnson et al., 2006). Not least but now growing in importance especially among donors is the requirement that MFIs achieve financial sustainability. Microfinance practitioners assert that good governance is the key to a successful MFI (Campion, 1998; Rock, Otero Saltzman, 1998; Labie, 2001; CGAP, 2006; Helms, 2006; UN, 2006). In spite of these observations, only few studies have focused on governance and the examination of the linkage of various governance mechanisms and performance (McGuire, 1999). It seems relevant to examine closely the role of various governance mechanisms since MFIs managers control significant resources. Except the study of Hartarska (2005), and those of Mersland, Roy and StrÃÆ' ¸m, Reidar ÃÆ'ËÅ"yst ein (2007), and Cull et al., (2007), no more study attempt to shed light on the link between governance and performance especially in the Euro-Mediterranean countries although it is a very active zone with a microfinance industry quite diverse (NGO, NBFI, Bank) where actors should simultaneously pursue the most effective way of realizing their social objective while achieving superior levels of profitability. While exploiting recently conducted survey by the authors in order to study the efficiency of MFIs in Mediterranean countries, the annual financial reports of the microfinance institutions and other relevant information collected from Microfinance Information Exchange (MIX), this paper aim to investigate the link between governance and Euro-Mediterranean MFIs performance in terms of outreach and sustainability since governance guides an institution in fulfilling its corporate mission and protects the institutions assets over time. As Rock, R, Otero, M Saltzman, S (1998) not es it is a key in guiding management in strategic issues and in carrying out the agreed upon strategic plans. The empirical model explores the joint and individual effect of management compensation, board diversity, and external governance mechanisms on both MFI sustainability, and the depth and breath of outreach while controlling for individual characteristics and, as well as country specific factors. The results show that performance-based compensation does not improve performance. MFIs with larger boards seem to do better. More independent boards are more effective however. Board diversity (Higher proportion of women) seems to ameliorate outreach. External governance mechanisms especially auditing and regulation improve the financial sustainability. The remainder of this paper is organized as follows. Section 2 deals with the research context. Section 3 briefly reviews the few related studies. Section 4 presents the conceptual framework as well as working hypothesis. Section 5 looks at data description and methodology. Section 6 discusses the empirical findings, and Section 7 draws conclusions emanating from the findings. 2. Microfinance in Mediterranean Experience throughout the world has proven that microfinance help the poor to increase income, built their business, and secure their future by reducing their vulnerability to external shocks. Furthermore, microfinance is often a powerful tool for empowering the poor especially women, to take charge of their economic well-being and those of their families. The Euro-Mediterranean region consists of 21 countries. The microfinance industry in this zone is young with high growth potential. Currently, it is estimated that there are over sixty microfinance institutions (MFIs NGOs), and a potential of numerous other producing credit to poor microentrepreneurs (Ben Soltane, 2008). The majority of these programs are south of the Mediterranean (Egypt, Jordan, Lebanon, Morocco, Palestine, Tunisia, and Syria). Programs also exist in Spain, France, Italy, Kosovo, Albania, Bosnia, and Croatia (Figure 1). Morocco AMSSF, FMBC, KARAMA, AL AMANA, ZAKOURA Turkey MAYA Bosnia Bossel, EKI, MI-Bospo, MIKRA, Women For Women Palestine FATEN, UNRWA Italy FRD, 10 Talenti Fond S.M.Soccorso Fond S.G.Moscati Tunisia ENDA, BTS Spain CODESPA, WWB Spain Egypt ESED, Lead foundation, DBACD, Al Tadamun France CSDL Albania PSHM, USCA Croatia DEMOS Lebanon Al Majmoua, Ameen, CHF-AM Jordan MFW, AMC, JMCC,DEF Kosovo P4, Meshtekna, Grameen Trust Figure1  [1]  : MFIs delivering microcredit in the Mediterranean. Euro-Mediterranean MFIs aim to provide financial services to low income households, even the extremely poor in a participatory and non-paternalistic development approach to the great interest of the donor community, policy makers, development researcher and practitioners. According to the so-called win-win proposition MFIs should combine the socials goals, such as poverty alleviation and reaching poor households (outreach) with operational and financial self-sufficiency (sustainability) based on access to international financial markets independently from international development agencies. Therefore, MFIs should simultaneously pursue the most effective way of realizing their social objective while achieving superior levels of profitability. The regionà ¢Ã¢â€š ¬Ã¢â€ž ¢s top MFIs are openly committed to best practice microfinance. In terms of depth of outreach, the sector has generally moved towards serving more and more of the poor clients. According to the FEMIP and Sanabel study, the Mediterranean represents a potential market for the microfinance with nearly 40 million customers, whereas currently only 9 million people profit from the financial assistance of the companies operating in this sector. The number of borrowers increased of more than 43 % per annum between 2004 and 2006, against 20% on a worldwide scale, an indication that the sector as a whole is reaching more of the marginalized in the society. The regionà ¢Ã¢â€š ¬Ã¢â€ž ¢s top MFIs have proven also to have excellent leadership abilities, impressive outreach and growth, as well as a commitment to best practice microfinance. Furthermore, it is estimated that around 85% of the regionà ¢Ã¢â€š ¬Ã¢â€ž ¢s active clients are served by sustainable MFIs. 3. Literature review Governance in microfinance has been recognized to be an important issue. However, the biggest problem to microfinance practitioners has been balancing the dual mission of outreach and sustainability. The changing of microfinance environment has shown a move towards sustainability ultimately leading to governance issues as donors funds shrink and equity inflows increase in the microfinance sector. Microfinance institutions have therefore embraced boards and adopted principles of corporate governance to ensure their survival. Investigating the link between good governance and the performance of MFIs in terms of outreach and sustainability is crucial since governance guides an institution in fulfilling its corporate mission and protects the institution assets over the time. However, there is a limited academic studies dealing with this subject, partly due to the lack of data. While using three surveys of rated and unrated east European MFIs from three random samples in the perio d 1998 to 2002, Hartarska (2005), investigates the relation between governance mechanisms and financial performance. Financial performance and outreach constitute dependant variable dimensions and governance mechanisms include board characteristics, managerial compensation, and external governance mechanisms such as rating, financial statements audited, and supervision. The author finds that performance-based compensation of managers is not associated with better performing MFIs; lower wages suggested for mission-driven organization worsen outreach. She identify also that a more independent board has better ROA, but a board with employee directors gives lower financial performance and lower outreach. Finally, the author concludes that external governance mechanism seems to have a limited role in the study region. In a recent study, Mersland, Roy and StrÃÆ' ¸m, Reidar ÃÆ'ËÅ"ystein (2007), use a self constructed global data set on MFIs spanning 57 countries collected from thir d-partly rating agencies. The authors study the effect of board characteristics, ownership type, competition and regulation on the MFIs outreach to poor clients and its financial performance. They found that split roles of CEO Chairman, a female CEO, and competition are important explanation. Moreover, the authors found that larger board size decrease the average loan size, while individual guaranteed loan increase it. Finally, they conclude that there is no difference between nonprofits organizations and shareholder firms in financial performance and outreach. A third study conducted by Cull et al., (2007) looking at MFIs financial performance and outreach as well, with a focus on lending methodology  [2]  , controlling for capital and labour cost as well as institutional features. While using data from 124 rated MFIs, the authors found that MFIs that focus on providing loans to individuals perform better in terms of profitability. Yet, the fraction of poor borrowers and fem ale borrowers in the loan portfolio of these MFIs is lower than for MFIs that focus on lending to groups. The study suggests also that individual-based MFIs, especially if they grow larger, focus increasingly on wealthier clients, a phenomenon termed as à ¢Ã¢â€š ¬Ã…“mission driftà ¢Ã¢â€š ¬?. This mission drift does not occur as strongly for the group-based MFIs. However, no governance variables, such as board characteristics or ownership type are taken into consideration. The limited academic investigation into the link between governance mechanisms and performance of MFIs in terms of outreach and sustainability, and the fact that other governance mechanisms such as the proportion of women in the board remain unexplored justify the importance of a similar study in the Euro-Mediterranean zone, characterized by a very active and quite diverse microfinance industry, that complete formers studies. 4. Conceptual framework and working hypothesis While focusing on the microfinance field, the governance can be defined as the process of guiding an institution to achieve its objectives while protecting its assets. It refer to the mechanisms though which donors, equity, investors, and other providers of funds ensure themselves that their funds will be used according to the intended purposes (Hatarska, 2005). The presence of these control mechanisms is crucial either to align the interests of managers and providers of funds since they may have diverting preferences and objectives, or to monitor the performance of managers to insure that they use their delegated power to generate the highest possible returns for the providers of funds. This notion comes from the agency perspective. It found its origins in the work of M. C. Jensen and W. H. Meckling, 1976 who assimilate the firm to a node of contracts. The explanatory model of the structures of financing and shareholding is founded on the assumption of asymmetry of information and conflicts of interests between managers and providers of funds. According to M. C. Jenson and W. H. Meckling, agency relationship is a contract under which à ¢Ã¢â€š ¬Ã…“one or more persons (principal) engage another person (agent) to perform some service on their behalf, which involves delegating some decision-making authority to the agentà ¢Ã¢â€š ¬?  [3]  . In this case the relation of agency will relate the principal (owner) and his agent (manager), this last being engaged to serve the interest of the first. From these relations emanates the concept of agency costs, costs which result from the potentially opportunist character of the actors (moral hazard) and information asymmetry between the contracting ones (adverse selection). These agency costs represent the loss in value compared to an ideal situation where there is no information asymmetry and conflict of interests. According to the theorist of agency an organisation is considered efficient if it minimise the agency costs. This purpose can be intended though an effective governance mechanism. According to Keasey et al., 1997, the most important features of an effective governance framework are ownership structure (including institutional and managerial ownership), CEO (manager) and director (board member) remuneration, board structure (size and composition), auditing, information disclosure, and the market for corporate control. Usually, research literature related to this field use partial measures. In other words, governance studies treat separately the impact of each variable such as compensation, board size, independence and diversity, and external market forces on firm performance. However, since latest studies (Hermalin Weisbach, 2003) identify the complementarities, and the correlation between these mechanisms, this study will investigate the impact of the majority of these mechanisms excluding ownership due to lack of data on ownership structure. The most important attribute tha t distinguishes microfinance institutions from other is what has come to be called its dual mission of balancing a social agenda or social impact with its financial objectives. The MFI combine a social development mission (provision of financial services to the lowest income population possible), with a financial objectives that drives the institution to achieve self-sufficiency and thereby accomplish sustained service delivery without dependence on subsidies. These dual objectives (social: outreach, and financial: sustainability) make difficult the study of governance of MFIs, especially with their different types: Non profit, Non-Governmental Organizations (NGOs), For-profit Microfinance Institutions, Credit Unions. This challenge is surmounted by formulating and testing hypothesis based on insights from the literature on corporate governance, formers studies, governance in banks and in non profit organizations, and by estimating the impact of the governance mechanisms on both sus tainability and outreach. 4.1. Internal Governance mechanism The incentives of top management have been characterized as an important mechanism of corporate governance as it ensures the alignment of the management and the shareholders interest (John et al., 2004). In other words, it serves as a mechanism for resolving the conflict of interest among the managers and shareholders. Brick, Palmon and Wald (2006) highlighted that director compensation should also affect performance of a firm. With regards to banking institutions, higher-powered incentives may encourage managers to take higher risks at the expense of depositors, who would suffer if the institution fails; thus low pay-performance sensitivity is suggested (John John, 1993). In fact, it is proved by Adams Mehran, 2003; Houston James, 1995; John Qian, 2003, that pay-performance sensitivity in banking in lower than other industries. Since in non-profit firm there is a growing problem of informational asymmetry between clients and managers (i.e., managers possess many crucial inf ormation about the product), it seems that the fixed management salaries is the best choice for mission-driven organizations (Easley Oà ¢Ã¢â€š ¬Ã¢â€ž ¢Hara, 1998). With the fixes salaries, the managers, indifferent between telling the truth or lying, will find it in his benefit to tell the truth. Therefore, if the client and donors find the information provided by non-profit managers more credible, the firm will be better-funded and better-performed. Hypothesis 1. MFIs whose manager receives a fixed salary will not perform worse than MFIs whose managers receive performance based remuneration. Most guidelines recognize that the board of directors is the focal point corporate governance. The composition and structure of the board have a direct bearing on corporate governance. Board of directors is designate for the purpose of ensuring the alignment of the firm activities and its specified objectives. The board has the duty for making sure that the top managers are behaving in a way that will provide the optimal value for shareholders (Coles et al., 2001). There is a view that larger boards are better for corporate performance because they have a range of expertise to help make better decisions, and are harder for a powerful CEO to dominate. However, recent thinking has leaned towards smaller boards. Jensen (1993) and Lipton Lorsch (1992) argue that large boards are less effective and are easier for a CEO to control. When a board gets too big, it becomes difficult to co-ordinate and process problems. Smaller boards also reduce the possibility of free riding by individual directors, and increase their decision taking processes. Empirical research supports this. For example, Yermack (1996) documents that for large U.S. industrial corporations, the market values firms with smaller boards more highly. Eisenberg et al. (1998) also find negative correlation between board size and profitability when using sample of small and midsize Finnish firms. In Ghana, it has been identified that small board sizes enhances the performance of MFIs (Kyereboah-Coleman and Biekpe, 2005). Mak and Yuanto (2003) echo the above findings in firms listed in Singapore and Malaysia when they found that firm valuation is highest when board has five directors, a number considered relatively small in those markets. In a Nigerian study, Sanda et al (2003) found that, firm performance is positively related with small, as opposed to large boards. Hypothesis 2. Board size should have an inverse correlation with MFIs performance A third common monitoring mechanism advocated by the agency perspective is a board composed of a majority of independent directors. These non-executive or outside directors are believed to provide superior benefits to the firm as a result of their independence from firm management. Under this organizational design, conflicts of interest can be avoided and executive leaders can be evaluated more objectively. The literature suggested t hat increases in the proportion of outside directors on the board should increase firm performance as they are more effective monitors of managers (Adams and Mehran, 2003). The proportions of the outside directors can be measured in terms of the ratio of outside directors to board size. The positive aspect of having board independence was evidenced in a study by Byrd et al (2001) that highlighted the survival of firms in the thrift crisis due greater proportion of independent directors in the board. Kyereboah-Coleman and Biekpe (2005) found also a positive relationship between proportion of outside board members and performance of MFIs in Ghana. Hypothesis 3. MFIs performance will be affected positively by the proportion of non-affiliated outsiders on the board. Corporate governance literature argues that board diversity in terms of women and minority representation is potentially positively related to firm performance. Board diversity promotes a better understanding for the m arket place, increases creativity and innovation, produces mores effective problem solving, enhances the effectiveness of corporate leadership, and promotes effective global relationships (Robinson and Dechant, 1997). Fondas and Sassalos, 2000 argue that diversity in board composition via greater female representation will lead to improved board governance and top management control. In microfinance, the study of Coleman, 2006 show that having women in CEOs on MFI boards enhance performance and also the more the women there are on a board, the better the performance. Furthermore, having a high fraction of women in the board would help the MFI understand its customers better so as to separate the good risk from the bad (Mersland R. et Oystein Strom R. 2007). Hypothesis 4. Board diversification and the presence of women and minority will lead to a better performance of MFI. Another principle of effective bank supervision is effective internal audit. Internal audit helps to ident ify problem areas and to avoid major collapse. The internal board auditor provides independent, objective assessments on the appropriateness of the organizationà ¢Ã¢â€š ¬Ã¢â€ž ¢s internal governance structure and the operating effectiveness of specific governance activities. Reporting of all internal audit reports in an accurate and timely manner is essential for evaluation of the institutionà ¢Ã¢â€š ¬Ã¢â€ž ¢s status and need for any change in strategy. Policy papers for MFIs stress the importance of internal audit and recommend that the internal auditor reports directly to the MFI board (Steinwand, 2000). Hypothesis 5. MFI allowing their internal auditors to report directly to the board should show higher financial performance. 4.2. External Governance Mechanisms The external governance mechanism can be implemented as a result of the failure or the weakness of internal governance mechanisms. In the microfinance industry donors and creditors are increasingly relying on information from audited financial statement and rating agencies (Hartarska, 2005). These external governance mechanisms are an important mechanism that provides depositors, creditors and shareholders with credible assurances that they will refrain from fraudulent activities. In other words it reduces informational asymmetries between the different stakeholders and the firm (Healy Palepu, 2001). Audited financial statements are an important tool for the assessment of MFIs by regulators and capital markets. They form an important part of the effective corporate governance. The auditorà ¢Ã¢â€š ¬Ã¢â€ž ¢s role is to provide a disinterested an objective view of the financial statements of the MFI in the line with generally accepted accounting standards. It is a mean to ensure potential investors and donors that an MFI complies with the accounting practices and managers do not misrepresent financial information. Hypothesis 6. MFIs with financial statement audited achieve better performance than MFIs without financial statement audited. According to Hartarska (2005), in the absence of developed equity and debt market, donors and investors rely on independent evaluation of MFIs performance. A MFIs rating reflects a rating agencyà ¢Ã¢â€š ¬Ã¢â€ž ¢s opinion of entityà ¢Ã¢â€š ¬Ã¢â€ž ¢s overall creditworthiness and its capacity to satisfy its financial obligations. The raters evaluate objectively and independently the corporate governance in MFI and rank it on a relative rating scale that would facilitate comparison. Unlike typical rating agencies that rate the riskiness of issued debt, microfinance rating agencies rate the overall performance of the MFI in terms of outreach and sustainability. Hypothesis 7. Rating helps MFIs to achieve better results Many MFIs around the world operating as NGOs have increased their assets, reorganized, and transformed into regulated entities that can capture savings deposits. A regulated MFI has more chance to earn customer trust, and by the way to have a higher financial performance. Hence, regulation is crucial for microfinance sector development since it affect MFI performance by changing the internal rule of the organization. It implies the access to an important and low-cost funding source through the right to mobilise savings. Due to this effect, the MFI win the opportunity to increase the number of clients, but also to increase average loan amounts for existing borrowers. Moreover, if demands to fulfill regulatory requirements divert attention away from serving the poor, and hold back innovation in lending technology that has been the driving force behind MFIsà ¢Ã¢â€š ¬Ã¢â€ž ¢ability to serve even poorer borrowers, regulatory involvement will lead to mission-drift (Hartarska, 2007). Therefore, the effects upon depth and breadth in outreach may be uncertain as well, either upon depth or breadth, or a combination of the two (Mersland R. Oystein Strom R. 2007). Hypothesis 8. Regulation may guide the MFIs to fulfill better sustainability, but not to achieve better outreach. 5. Data and methodological issues Data for this study are issued from various sources. The major part comes from a survey conducted by the author in 2006 in order to test the efficiency of microfinance institution in Mediterranean (Ben Soltane, 2008). The performance variables and some governance variables are also obtained from the annual financial reports of the microfinance institutions collected from Microfinance Information Exchange (MIX); a non governmental organization whose object is to promote the exchange of information on the microfinance sector around the world  [4]  . All these information are updated and completed by a questionnaire dealing fundamentally with detailed question on governance addressed to the MFIs in the region. The response rate was 58% with 40 institutions. A special questionnaire was also addressed to the Mediterranean microfinance institutions that donà ¢Ã¢â€š ¬Ã¢â€ž ¢t figure in the MIX MARKET data base. The response rate for these MFIs was weak and near 20%, with four inst itutions. Due to missed data, only two institutions are taken into account. The final sample comprises 42 institutions working in 20 countries. Our sample is quite representative of the Mediterranean microfinance industry as well as of the governance mechanisms and the performance of MFIs in the region. Following Hartarska (2005) works, our empirical model used to test the hypothesis include five major potential groups of determinants and is on the form: Where is a performance variable for MFI i in country j at time t; are MFI specific variables; are management specific variables; are board-specific variables, are external governance mechanisms; and are the country-specific macroeconomic variables. It is crucial to mention at this level that our choice of a single-equation model is supported by the hypothesis that various governance mechanisms are endogenously determined is not always supported by empirical evidence  [5]  . Since MFIs are special institutions having a d ual mission, their performance is measured in terms of outreach and sustainability. Outreach is measured in breath and depth. Breach of outreach (NAB) is the logarithm of active borrowers, depth of outreach (DEPTH  [6]  ), is the average loan size on GDP per capita. Sustainability is measured by return on assets (ROA) which is a standard finance literature measure of performance, and by operational self-sufficiency (OSS). This variable measures how well the MFI can cover its costs through operating revenues. Table 1. Definitions of dependent variables used in analyses Variable Explanation Social Performance: Outreach NAB Logarithm of the number of current borrowers DEPTH The average loan size on GDP per capita Financial Performance: Sustainability ROA Return On Assets OSS Operational Self-Sufficiency MFI specific variables () are MFI size measured by the logarithm of total assets, MFI age measured in years sine commencement, and MFI type measured by th ree dummies (NGO, Nonbank Financial Institution, and bank). Since further studies (Navagas, Conning, Gonzalez-vega, 2003) show that the type of lending methodology used influences the success of these organization, our study include a variable Individual which is a dummy that takes the value of one if the MFI used individual lending technology. Variables built-in are Fixed-wage, which is a dummy for pay not based on performance, Experience is used to proxy for a mangerà ¢Ã¢â€š ¬Ã¢â€ž ¢s quality and is measured by the years of work experience. The board-specific variables contains Board-size, measured by the number of board members; Employees measured as the proportion of MFI employees who are voting board members; Independent measured as the proportion of non-affiliated board members; Women measured as the proportion of women in the board; Internal Board Auditor is a dummy variable that takes the value of one if there was an internal auditor with direct access to the board. The variables included in are Regulation, which is a dummy that takes the value of one if the MFI was supervised by the central bank or other bank supervisory agency; Rated is a variable that indicates whether the MFI was subject to independent evaluation or rating by an outside organization; Audited is a dummy that take also the value of one if there was an audited financial statement in the year t-1. Since MFI are issued from north and south of the Mediterranean, the dissimilarity in economic conditions across countries are controlled by the size of the economy (Economy size), measured by the logarithm of a countryà ¢Ã¢â€š ¬Ã¢â€ž ¢s GDP, and by the average inflation rate (Inflation), measured by the average consumer price index. These variables are issued from the World Bank Development Indicators. We wanted also to build a variable that take account of the institutional differences between countries but we did not find an adequate measure. Table 2. Definitions of independe nt variables used in analyses Variable Explanation Fixed-wage A dummy being one if the manager receives a fixed salary Experience The number of years of experience of the manager Board-size Number of board members Independent The proportion of voting board members who do not have an affiliation with any of the stakeholders of the MFI Women The proportion of the women in the board Internal board auditor A dummy being one if internal board auditor reports directly to the board Audited A dummy that equals one if the financial statement of the MFI is audited and zero otherwise Rated A dummy that equals one if the MFI is rated by a specialized MFI rating agency and zero otherwise Regulation A dummy being one if the MFI is regulated by banking authorities Individual A dummy that equals one if the MFI used individual lending methodology and zero otherwise MFI age Number of year sine the commencement MFI size Loga rithm of the total assets of the MFI NGO The MFI is an NGO NBFI The MFI is an non financial bank institution Bank The MFI is an bank Inflation Average annualized consumer price index Economy size Logarithm of total GDP (Gross Domestic Product of the country) for year t 6. Discussion of findings Table 3. Descriptive statistics (N=42) Variable Mean Standard Deviation Min Max ROA 5.935 23.12 -7. 58 33 OSS 85.41 63.2 20.345 143.33 NAB 8.238 45.11 2.34 45.23 DEPTH 220 143 111 654 Fixed-wage 0.824 0.578 0 1 Experience 8.4 16.12 2 11 Board-size 5.82 3.32 4 16 Independent 0.457 0.245 0 0.213 Women 0.398 0.367 0 0.453 Internal board auditor 0.478 0.532 0 1 Audited 0.812 0.634 0 1 Rated 0.376 0.512 0 1 Regulation 0.423 0.675 0 1 Individual 0.732 0.479 0 1 MFI age 3.254 2.349 4 17 MFI size 17.634 2.115 7.311 23.546 NGO 0.598 0.463 NBFI 0.178 0.234 Bank 0.098 0.127 Inflation 0.164 0.254 0.023 0.328 Economy size 19.34 2.278 12.432 34.897 Source: Authorsà ¢Ã¢â€š ¬Ã¢â€ž ¢ estimates The descriptive statistics for this study are shown in table 3. Notably, we have complete records of data for only 42 institutions. The performances of Microfinance Institutions are widely spread. On the average, the MFIs recorded a return on assets of 5,935%. While the minimum was -7.58%, the maximum performance was 33% indicating a widely spread performance. Similarly, the studied MFIs have on the average an Operational Self-Sufficiency of 85.41% with respectively a minimum and a maximum of 20.345% and 143.33%. As regard to the DEPTH, the average value relatively weak 220 indicate that the poor borrowers are very well served On the average, the MFIs managers have 8.4 years of experience and 82.4% of these managers are receiving a Fixed-wage. On the average, 5 persons serve on a board of an MFI and a standard deviation of 3,32 cou pled with a maximum board size of 16 members and a minimum board size of 4 members suggest that these boards are widely dispersed. The unaffiliated directors represent on the average 45% of the board members. The descriptive statistics indicate also that on the average 39% of all boards are made up of women. In our sample, around half of the MFI have an internal auditor reporting directly to the board. Moreover, 81% of the MFIs studied have their financial statement audited and 37% of the MFIs forming the sample are rated. The result also shows that 42% of the institutions are regulated, and the individual lending technology constitutes 73% of the cases. The average age standing for the MFI is about 3 years. The NGO represent 59% of our sample however, the NBFI and Bank represent respectively 17% and 9% of the sample. Finally, the average inflation rate in all the countries subject of the study is about 16%. Table 4. Regression Results of sustainability and outreach Sustain ability Outreach ROA OSS NAB DEPTH Fixed-wage 2.76 (0,23) 1.38 (1,02) -0,157 (-0,47) -0,356 (-0,36) Experience 0.09 (0.044) 1.528 (9.72)*** 0.064 (2.65)*** -0.024 (3.22)*** Board-size 0,1927 (4,23)** 0,1923 (4,23)** 0.079 (2.74)*** -0.028 (0.61) Independent 0.081 (2.21)** 0.044** (1.54) 1.528 0.034 -0.029 (1.93)* Women 0,234 (2,18) 0.081 (3.18) 1,224** (0,09) -0,567** (1,11) Internal board auditor 0.94 (1.21) 0.061 (0.42) 2.34 (2.43) 0.34 (0.09) Audit 1.919*** (0.203) 0.006** (0.009) 0.003 (0.002) -0.182 (0.187) Rating 0.006 (0.009) 0.033 (0.132) 0.138 (0.071) -0.212 (0.192) Regulation 0.776*** (0.161) 0.002** (0.013) -0.013 (0.054) 0.008 (0.013) Individual 0.348*** (0.075) 0.009 (0.143) 0.024 (0.055) -0.0 61 (0.055) MFI age 0.174** (0.152) 0.168** (0.072) 0.002*** (0.013) -0.018** (0.137) MFI size 0.033* (0.132) 0,234** (4.32) 0.012** (0. 13) -0.125* (0.432) NGO -0.001 (0.004) -0.109 (0.084) 0.003** (0.005) -0.003*** (0.005) NBFI 0.059 (0.013) 0.417 (0.187) 0.003 (0.009) -0.278 (0.162) Bank 0.19 (0.124) 0.271 (0.238) 0.102 (0.076) 0.023 (0.301) Inflation -0.196** (0.025) -0.020** (0.009) -11.915 (1.814) -0.306 (0.059) Economy size -0.028 (0.008) 0.148 (0.172) 0.007** (0.002) -0.006** (0.002) Constant -3,2708** (-3,33) -3,2268** (-3,31) 0.2789 (2.11) 0,2962** (2,09) Number of observations 42 42 42 42 Wald Statistics 79.23 83.34 92.12 89.37 Log pseudo-likelihood -168.93505 -146.57205 -123.87643 -178.34896 Pseudo R2 42 42 42 42 Absolute value of t-statistics in parentheses *Significant at 10% level, ** Significant at 5% level, *** Significant at 1% level As can be shown in table 4 dealing with the estimation of the impact on sustainability and outreach, our first hypothesis stipulating that the remuneration system (performance-based compensation or fixed salary) is confirmed. The coefficient on Fixed-wage is not significant in any of the specifications. This result confirms formers findings, such as Hartarska (2005) and can be attributed to the fact that MFIs managers may not have reacted to performance-based compensation offered during the study period. Managerial qualifications as shown by the positive and significant sign of Experience in the OSS and NAB regressions as well as the enviable negative and significant coefficient in the DEPTH indicate that the acquired experience allows MFIs managers to reach poor borrowers and produce better sustainability. Board size is rath er positively related to ROA, OSS, and NAB suggesting in the contrary that MFIs with larger boards seems to do better. The results reduplicate our second hypothesis and confirm studies that support the view that larger boards are better for corporate performance since members have a range of expertise to help to make better decision, and are harder for powerful CEO to dominate. This is in sharp contrast to finding by Jensen (1993), Lipton Lorsch (1992), Eisenberg et al., (1998), and Sanda et al., (2003); however, it confirm the finding of Kyereboah-Coleman, A, (2006). An important result of this study is the support for the third hypothesis that MFIs with a higher proportion of unaffiliated directors had better sustainability (ROA OSS) and also reach poor borrowers. This result confirm previous works: Hartarska (2005), and indicate that MFIs can also benefit from more independent boards. The results of the study confirm partially the fourth hypothesis and show that board div ersity (Higher proportion of women) improves social performance. This is consistent with recent thinking and discussions which point to the fact that governance reforms have been geared towards the importance of gender diversity especially in the boardroom and that the issue of gender diversity is central and could enhance boards effectiveness by tapping boarder talent pools for their directors resulting in more diverse board having better relations with other stakeholders such as customers, suppliers, and employees (Ellis and Key, 2003) which inevitably translate into performance and firm value (Kyereboah-Coleman, A, 2006). Our fifth hypothesis is not confirmed by the empirical results. Although the internal auditor reporting to the board is way to reach board governance with information relative to internal firm governance, the results indicate that the internal board editor seems not to have any significant influence on MFIs performance. A similar result was found by Mersland R. Oystein Strom R. (2007). Although microfinance rating agencies rate the overall performance of the MFIs in terms of outreach and sustainability, the empirical results show that this variable havenà ¢Ã¢â€š ¬Ã¢â€ž ¢t any significant influence on MFIs performance. In addition, the study reveals that MFIs having their financial statement audited achieve better sustainability. These MFIs complies with accounting practices and are able to reach higher levels of financial performance. Regulated MFIs do not reach more borrowers but according to results from table 4, have significant and positive ROA OSS. Although this result is diverse from past studies which did not find any relation between these two dimensions: Mersland R. Oystein Strom R. (2007), or find a weak relation: Hartarska (2005), it bring the evidence that regulation may assure customers that they are treated fairly and this could lead to more business and better financial performance. Results indicate that the lending technology improve considerably the financial performance of the MFIs. This result can be attributed to the fact that the cost argument is more important than the repayment argument for group lending or village bank. The supposed efficiency in group lending does not hold Mersland R. Oystein Strom R. (2007). From another point of view, it can be justified by the new tendency toward the individual microlending (Armendariz de Aghion and Morduch, 2005; Ben Soltane and Trigui, 2008), since this methodology becomes highly recommended (Armendariz de Aghion and Morduch, 2000). This study confirms well the study of Cull et al. (2007). In conformity with the theory and formers studies such as Kyereboah-Coleman, A, (2006), the age of the firm as a proxy for reputation impact positively on performance likewise the size of the MFI. Expectedly, the size of MFI has a significant positive impact on performance. This may be due to the fact that a large firm has the ability to accommodate risk and to enhance productivity through diversification of products and services. The study shows that NGOs are more efficient than NBFI and show better social performance by reaching the poor. It becomes clear that NGOs are more consistent with their social mission than with their financial performance. The results reveal also the significance of controlling for crosscountry differences. The level of inflation affects negatively the sustainability of MFIs. Comparable results were found by Hartarska (2005), in Central and Eastern Europe and the Newly Independent States. Finally, the study suggests that economy of big size affect outreach. 7. Conclusion and recommendations This paper tests empirically the relationship between corporate governance and Euro-Mediterranean MFIs performance in terms of outreach and sustainability. While using data from a self-conducted survey as well as from the annual financial reports and from the Mix Market, the study examine the impact of management remuneration, board independence and diversity, internal auditor reporting directly to the board, external governance mechanisms of control, and MFIs and countries specifications. Results indicate that not all known governance mechanisms affect performance and in addition, different factors have differential effect on outreach and sustainability. The study shows that explicit and implicit incentives schemes such as compensation, perks, etc become less powerful and less able to motivate managers (Dewatripont, Jewitt Tirole, 1999). Results show also that larger boards are better for MFIs performance since members have a range of expertise to help to make better decision and are harder for powerful CEO to dominate. Moreover the study reveals that microfinance boards with larger proportions of unaffiliated directors achieve better results. Thus, independence of the microfinance board should be encouraged. The fundamental result of this study is that board diversity (Higher proportion of women) enhances performance and again the more women there are on a board, the better the performance. Thus board diversity is paramount for enhanced performance of microfinance institution. Having financial statement audited, and being rated by international agencies is synonym to a better financial performance. It seems that external governance mechanisms help MFIs to reach their financial performance. This study allows us to distinguish other factors leading also to a better sustainability such as Regulation and the use of individual lending methodology. However, the MFIs type (NGOs) seems to be more consistent with their social mission than with their financ ial performance. The microfinance institutions characteristics such as age and size affect positively the performance nevertheless, the level of inflation have a negative impact on the sustainability of MFIs. Although this study bring some clarifications on the link between governance mechanisms and performance in microfinance, several governance mechanisms remains unexplored such as CEO duality, graduate board members, international directors, ownership structure. Thus, it seems relevant to conduct more studies in order to learn more about the impact of these governance mechanisms on outreach and sustainability of MFIs not only in the Euro-Mediterranean countries but also in other part of world.

Essay on Menieres an Ear Disease - 1303 Words

Menieres an Ear Disease Menieres disease is disease of the ear. There are two types of Menieres, classical Menieres affects both the hearing and balance systems and theres also Menieres that affects only the Cochlea, which is the hearing organ and only the Vestibular system of balance. In the early stages of this disease many people experience sudden attacks of dizziness, nausea, ear ringing or tinnitus, and ear or head pressure. There may also be fluctuating or permanent, hearing loss. The dizziness they experience may take the form of vertigo or a feeling of lightheadedness, or an about to faint feeling. There may be a sudden loss of balance, sometimes referred to as a drop attack. However, the Menieres patient never†¦show more content†¦All of these reasons may have a number of different causes. So you see why it is so difficult for your doctor to know whats going on. Diagnosis is also very difficult. If Menieres is suspected, one should see a specialist who is an otologist, or at least an ear, nose, throat doctor or an ENT. Much testing may be necessary, because dizziness may be a sign of a more serious condition. Cardiovascular disorders and tumors must be ruled out. Also blood tests for other disorders, like blood sugar problems, thyroid, etc., should be done. After other possible causes are ruled out, there are tests that may show the possibility of Menieres. A MRI or C-T Scan lets a doctor know that there are no tumors or Central Nervous System problems, by looking at your brain and surrounding area. A possible Menieres disease patient may be sent to a neurologist for a complete brain examination. This is a normal procedure and does not mean anything is wrong. An ENG or Electronystagram is used to assess the balance system function. A patient may be asked to look at a series of things, including lights. Cool and warm water is inserted into ea ch ear to over-stimulate the balance system causing vertigo. The patients reaction time to the vertigo is then measured. Many people do not like this test, but it is a very good way to assess balance system function. There is also a platform balance test in which theShow MoreRelatedWhat is Menieres Disease and What Is the Best Way to Treat It?3033 Words   |  13 PagesThe ear is made up of three parts, the outer ear, the middle ear and the inner ear. The ability to hear is dependent on these three parts of the ear working together, and a problem with any part can cause hearing loss (heaing loss education centre, 2012). The inner ear consists of the cochlea, the auditory hearing nerve and the brain. These are the organs of hearing and balance and convert sound waves into nerve signals. 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Michael Jackson Research Essay Free Essays

string(56) " explore his talent and be in charge of his own career\." An Icon Never Forgotten The world of pop culture would never be the same. His voice was harmonious, his moves earth shattering and his actions unequivocally eccentric. The whole world could only watch in astonishment as the â€Å"King of Pop† altered lives and established himself as the juggernaut of the music industry. We will write a custom essay sample on Michael Jackson Research Essay or any similar topic only for you Order Now Having been born in 1993, did not give me the opportunity to anxiously stay up until midnight, December 2, 1983 and witness the world premiere of Michael Jackson’s pinnacle, the hit, Thriller. Though my life began as the height of his career began to taper off, his music, actions and appeal is as much a part of my generation as it was then. Michael Jackson is the world’s greatest entertainer. His body of work, likeness and story has had a profound influence on popular music today, and will continue to have a resounding impact for generations to come. It was the early morning of August 29, 1958, in the blue-collar town, Gary, Indiana, when Katherine and Joseph Jackson welcomed their eighth child, Michael Joseph Jackson into the world he would forever change. Joseph Jackson was quick to realize his children had an unnatural talent, a divine gift of song and dance. He became eager, if not obsessive to profit from these talents. Michael was pushed towards stardom at a very early age. In 1962, his father formed the group The Jackson Five, consisting of Michael and his brothers. Every aspect of their domestic and now professional lives where micromanaged by Joe. He parented and managed them with a strong, often cruel unyielding hand. The wrong dance step could easily result in a beating one day and a barrage of verbal battery the next, â€Å"There is a lot of sadness in my past life. My father beat me. It was difficult to take being beaten and then going on stage. He was strict; very hard and stern† (Jackson. Oprah Winfrey). Their childhoods were pretty much taken away due to the rigorous work schedule, † I remember going to the record studio and there was a park across the street and I’d see all the children playing and I would cry because it would make me sad that I would have to work instead† (Jackson. Oprah Winfrey). When this was discovered, he was one of the first to be shown as a product of abuse by parents to further their own selfish ventures. His story would be related to various young entertainers of today. Questions will be asked such as, â€Å"Are parents pushing their children to hard? † In terms of his musicality, Michael was the lead singer and his immense talent was already evident at this young age. His voice is like an angel, a sound so seducing and his myriad of effortless gravity defying dance moves, he was a natural. By 1969 The Jackson Five were the first group to appeal to black and white audiences. The crossover success was evident by the record breaking, four number one singles in 1970. The Jackson Five had become worldwide superstars, constantly performing to sell out concerts in global venues. The Jackson five was universally popular on all broadcasting networking appealing to all audiences black and white. Hits such as â€Å"ABC†, and â€Å"I’ll Be There† are instantly recognized even today. In 1971, they were named one of the most influential groups and were given an animated series based on the lives of the Jackson Family. It was a drastically fictional portrayal of their true reality. Even through the young Jackson’s success, the torment from their father was constant. Joseph would continue his physical abuse of Michael throughout his adolescence and the mental cruelty would last throughout his life. Yet somehow, Michael kept singing and the hits kept coming. Michael Jackson had become a star, one that could not be contained by the Jackson 5. It was the first time the world had seen young black child reach that level of success. The world would become in tune with his life. They would share his pain upon news of his abuse. They too would revel in all his success as his talents consumed the world over. Michael’s early life helped pave the way for his influential career. The Jackson Five were a big influence on future boy bands including New Edition, New Kids on the Block, and The Jonas Brothers. When the group New Edition met with their manager and creator, Travis Gresham, he suggested to name the group New Edition to signify that they were the ‘new edition’ of the Jackson Five. When producer Maurice Starr created the group, New Kids on the Block, he was in search for a new version of Michael Jackson to take on the lead vocals. Starr came across the high note hitter and dancing machine, Joey McIntyre. The more current version of an all brother group, The Jonas Brothers, were also significantly influenced by the Jackson Five, â€Å"The first time we heard Michael’s voice was when our dad played the Jackson Five’s hit, I’ll Be There. We were amazed by the way that he and his brothers came together to entertain the world has been an obvious influence on us. Michael Jackson influenced every listener and every future performer with a talent the world had never seen before† (Joe Jonas. MTV Awards). Furthermore, various RB groups like Boyz 2 Men and All 4 One have sampled their songs countless times. Even today’s big stars like Chris Brown copied a track from Michael in his song â€Å"She Aint You†. The fact of the matter is the Jackson 5, a product of Michael’s talent, was bigger than most groups could ever hope to be and is universally recognized as one of the biggest groups of all time. In Michael’s young adulthood, he made the decision to break away from his brothers, as his talent could not be limited to his family. A decision fueled by his desire to further explore his talent and be in charge of his own career. You read "Michael Jackson Research Essay" in category "Essay examples" Michael influenced many other artists, including Beyonce and Justin Timberlake, to take the chance and break away from the group that they were engaged in. When most artists leave an extremely prosperous and established band to start their own solo career, the odds of success are dismal. Michael Jackson defied that statistic, far surpassing anything the Jackson Five had previously accomplished. Michael’s major breakthrough as a solo artist came when he released his first album, â€Å"Off The Wall†, which was co-produced by the legendary Quincy Jones. The album was released in 1979, and its success was exceptional. The album produced four United States top hits on the charts, a first for any US album, and won Michael Jackson three Billboard Music Awards: Top Black Artist, Top Black Album, and Best Male RB Vocal Performance. Imagine that dance from his song â€Å" I Want to Rock with You† is known by anyone who has sat in front of a TV. These awards and self-advertisement practically made the name Michael Jackson a household name and helped his career flourish in the 1980s. Even with the great success of his first single, Michael was still not satisfied, â€Å"I’m never pleased with anything, I’m a perfectionist, it’s part of who I am† (Jackson. Oprah Winfrey). Again, Michael and Quincy collaborated and created three-hundred songs for his new album, Thriller. Hard to decide, they cut it down to their nine favorite songs and the album was released in 1982. Thriller had an astonishing seven hit singles and it was selling one million albums per week. There was no one in the United States who did not hear the song. The music video is so popular that there are events around the world to re-enact the dance. It spent 80 consecutive weeks in the top ten albums, and 37 weeks of those in the number one spot. Don’t think for a moment that it was a one hit album though. His hit Billie Jean features an even more memorable dance featuring a move at a concert that shook the world in which he effortlessly glided across the dance floor. That dance is often imitated and that â€Å"Moonwalk† is a term that permeates pop culture. At the Grammy Awards, Thriller won Michael Jackson a record-breaking seven Grammy awards and, what he wanted the most, Album of the Year. Blending pop, RB, soul, dance, and disco, Michael brought a new sound to the population. All Grammy hopefuls compare their success to Michael Jacksons sweeping of the awards The Thriller album not only created history, it also become a milestone for racial equality in music. Music Television, MTV, was against playing African American RB music video; however, eventually, they agreed to air Michael Jackson’s hit video, Billie Jean. MTV had been previously dominated by rock music videos and denied videos from black artists like Rick James, but once they recognized the popularity of Michael Jackson’s songs, they evolved more towards pop and R;B, which helped future black artists like Prince. Before Michael Jackson’s video aired, MTV was struggling to become a top television channel. When they aired Michael’s videos, MTV became the hottest channel to watch. When the video for Thriller debuted, the demand to play it was so high that MTV had to play it twice an hour to meet demand for it. Thriller was said to be the best and most prominent music video ever created. MTV owes it’s over one hundred million viewers to Michael Jackson. In fact a video that insulted him was removed at his requests. His songs are still asked for to this day. Michael Jackson’s videos were not popular just because of the catchy, upbeat rhythms, but, because they were different. He was all substance. He is the definition of a true performer. As mentioned before, the video Billie Jean was first debuted on MTV, viewers watched something they have never seen before. Dressed in a glittering black jacket and wearing one white glove, Michael jumped, spun, and slid all over the video’s surrealistic city street set. Viewers could not take their eyes off of him. Michael Jackson made music videos an art form instead of having the singer stand there in front of a band lip synching the song. He incorporated special effects, storylines, dance routines, and cameo appearances into them. This started the epidemic of music videos. Every music dance video played today, has Michael Jackson to thank for that. Recording artist Ne-Yo remembers that when when Michael Jackson, â€Å"dropped a video, it was an event. † (Ne-Yo. MTV). He was one of the first to spend a million on a music video. A model that is copied today buy the biggest stars. Michael Jackson is not only a brilliant singer/songwriter, but also a skilled dancer. In 1983, on the TV special, Motown 25: Yesterday, Today, Forever, Michael Jackson debuted his iconic dance move, the moonwalk. Unlike anything that had ever been seen before, the moonwalk proved Michael Jackson’s staying power and influence on popular culture. Everyone was trying to master the dance moves they had seen Michael do in his videos and on stage. Who didn’t want to glide across the stage in a perfect floating moonwalk? Besides the moonwalk, his other famous dance was the choreographed routine in the video Thriller. Michael knew that he wanted the video to, â€Å"take [dance] to another level†(Michael Jackson. Barbra Walters). The dance has been used in many Hollywood movies including the 2004 Blockbuster hit, 13 Going on 30. If you ask people to do the Thriller dance, nine out of ten will be able to demonstrate it. Michael Jackson’s dance moves has inspired many current artists today including Justin Timberlake and Usher. A former teen sensation himself, Usher is probably the closest current performer to Michael Jackson in terms of singing style and album anticipation. Usher is the primary reason for the return of the popularity of choreographed dancing with current RB acts. Usher states that ,†[Michael Jackson] influenced me in so many ways, more than just music †¦ as a humanitarian, as a philanthropist, as an artist, as an individual who transcended culture. I wouldn’t be who I am today without Michael Jackson† (Usher Raymond. MTV). With his outstanding talent as a dancer and a high-range vocals, Justin Timberlake has been honored in being compared to Michael Jackson ever since his former N*Sync days. 2006, at the Video Music Awards, the curtain rises as seven time Grammy winner, Justin Timberlake, stands, silhouetted with the stages lights. With his neck tilted down, hand on head, and spinning around, the crowd goes wild. Not because it is Justin Timberlake about to perform, but because he has just immortalized the one and only Michael Jackson. Timberlake expresses that, â€Å"No one presented a song onstage like Michael. To create the things that he created with his music, it’s really untouchable† (Justin Timberlake. MTV). Being one of the most influential artists, if not the most, is not always as exhilarating as it seems. With fame and fortune comes pain and despair. From skin bleaching to the dangling of his child off the balcony, there has always controversy surrounding his life. In 2002 Michael was in a hotel with his family and wanted to show off his new born baby to the paparazzi. He dangled the child over a fourth floor balcony. Michael stated that, â€Å"I love my children. I was holding my son tight. Why would I throw a baby off the balcony? That`s the dumbest, stupidest story I ever heard† (Michael Jackson. Oprah Winfrey). A lot of rumors got around that Michael Jackson was bleaching his skin because he wanted to become Caucasian. Michael Jackson said that he had a skin pigmentation; however, a lot of people did not believe this. There were many hurtful comments about him bleaching his skin and he was very offended by them, â€Å"I have a skin disorder that destroys the pigmentation of my skin, it’s something that I cannot help, OK? † (Michael Jackson. Oprah Winfrey). With all these controversies, Michael was given a nickname, â€Å"Yeah, Wacko Jacko, where did that come from? Some English tabloid. I have a heart and I have feelings. I feel that when you do that to me. It’s not nice† (Michael Jackson. Barbra Walters). With all of these controversies, Michael was still a charitable man with a big heart, † I’ve helped many, many, many children, thousands of children, cancer kids, leukemia kids† (Michael Jackson). In 1984, Jackson bought all new equipment for a unit at Mount Senai New York Medical Center, which is part of the T. J. Martell-Foundation for leukemia and cancer research. Later that year, he visited the Brotman Memorial Hospital, and donated all the money he received from a Pepsi commercial that he was in, $1. 5 million, to the Michael Jackson Burn Center for Children. Michael also created one of the largest charity events, the recording of â€Å"We are the World†, to help raise money for kids in Africa in 1985. Artists like Diana Ross, Lionel Richie, Bruce Springstein, Cyndi Lauper, Tina Turner and many more, helped with this recording. This charity was so influential that in 2010, over one hundred of today’s biggest artist including Justin Bieber, Fergie, Lil Wayne, Adam Levine and Pink re-sang the song for Haiti, raising an immense amount of money. Even with the rumors going on, Michael was said to have donated over three-hundred million dollars to different charities throughout his life. With Michael Jackson being big on charities and helping kids in need, he created an amusement park in his backyard for kids who are disadvantaged or have medical conditions. Michael named the park Neverland, same as the fantasy island in the story Peter Pan, which is about boy that never grows older, â€Å"I’ll always be Peter Pan in my heart† (Michael Jackson. Oprah Winfrey). The 3000 acre land is filled with rides, animals, a train and many more attractions, â€Å"We have elephants, and giraffes, and crocodiles, and every kind of tigers and lions. And – and we have bus loads of kids, who don’t get to see those things. They come up, sick children, and enjoy it† (Michael Jackson. Ed Bradley). Neverland was intended to bring happiness to everyone; however, it brought a horrific result to Michael. In 1993, Michael Jackson was accused of molesting a thirteen year old boy at his Neverland Ranch. Michael had met the boy in 1992 and they soon became friends. The child had become a regular guest and started staying the night at the residence, which was not uncommon. Michael gave the boy gifts and paid for several family vacation trips around the world. The father of the boy, Evan Chandler, stated that, â€Å"[Michael Jackson] was part of our family† (Chandler. Vindicating Michael). According to the allegations, for four months, Michael had been kissing and fondling with the boy when they were alone. These allegations became the main topic on all news stations. While Michael said he was innocent, many believed the news articles that stated he was a child molester, â€Å"It’s a complete lie, why do people buy these papers? It’s not the truth I’m here to say. You know, don’t judge a person, do not pass judgment, unless you have talked to them one on one. I don’t care what the story is, do not judge them because it is a lie† (Michael Jackson). In 1994, Michael Jackson settled the civil lawsuit paying an undisclosed amount to the boy’s family. Many believe that he paid between 15 and 20 million dollars. After receiving the money, the boy refused to testify in any criminal matters. Therefore, the prosecution was not able to pursue a criminal case. Michael was accused again of child molestation in 2005, but was also found not guilty. These accusations did not fully ruin Michael’s career, but they did impact it. The media began to impair the career of Michael Jackson with ridiculous tabloid stories and false allegations, using wrong information to convince them. Society started to see him in a different light, giving him a poor reputation, â€Å"The press has made up so much†¦ God†¦ awful, horrifying stories†¦ it has made me realize the more often you hear a lie, I mean, you begin to believe it† (Michael Jackson. Oprah Winfrey). Sadly, his fans began to separate Michael from his music. The music was still prodigious; however, Michael, was seen as a predator. Artist Lil Wayne is going through the same thing with fans, but he went to jail for drugs. Lil Wayne’s music is still heard on the radio; however, the media on him is not respectable. After the allegations, the majority of people did not consider Michael as the influential pop star he once was, nor gave him recognition for his notable charity work and contributions in society; however, Michael tried to better his career; however is was never at the same magnitude as his â€Å"Thriller† album. From experiencing fame at such a young age, fighting lawsuits, paparazzi scandals, continuous plastic surgery, extreme tabloid stories, and false allegations, Michael Jackson never fully recovered. These struggles lead Michael into a deep depression, which subsequently resulted in an accidental overdose that cost him his life. People around the world were taken back by his sudden death in 2009. Through the comments all over the Internet, persistent updates on the television, the massive increase of albums sold on ITunes, and the misinterpretations of the way his death occurred, it was vident that the death of the King of Pop had a large impact on the nation. Rarely does any album get a 25th anniversary celebration, but Thriller did. Without a doubt, Thriller was a milestone for an entire generation. With singles at the top of the charts, changing MTV, and credit for breaking the color barrier and making way for a new generation of black artists, Michael Jackson truly exceeded what an yone could have expected. His unprecedented success is still resounding in popular culture today. Televison shows such as X Factor, Glee, America’s Next Top Model and American Idol have all had â€Å"Let’s give thanks to Michael Jackson† episodes. There is even a dance game called â€Å"The Michael Jackson Experience† that lets people learn his dance moves and perform with him. Michael Jackson’s iconic dances, vocals, and blending of genres continue to inspire new artists and captivate audiences worldwide. There is no doubt in my mind that twenty years from now, everyone will still know who the â€Å"King of Pop† was and how he has influenced almost every artist today. Works Cited Goh, Dion Hoe-Lian, and Chei Sian Lee. â€Å"An Analysis Of Tweets In Response To The Death Of Michael Jackson. † Aslib Proceedings 63. 5 (2011): 432-444. Academic Search Premier. Web. 8 Dec. 2011. Fast, Susan. â€Å"Difference That Exceeded Understanding: Remembering Michael Jackson (1958-2009). † Popular Music ; Society 33. 2 (2010): 259-266. Academic Search Premier. Web. 8 Dec. 2011. Jackson, Michael. Moonwalk. New York: Doubleday, 1988. Print. Krohn, Katherine. Michael Jackson. Minneapolis: Lerner Publications Company, 2010. Print. Halperin, Ian. Unmasked: The Final Years. New York: Pocket Books, 2009. Print. Taraborrelli, Randy. Michael Jackson: The Magic, The Madness, The Whole Story, 1958-2009. New York: Hachette Digital, Inc, 2009. Print. â€Å"Vindicating Michael. † HIStory vs EVANstory: The 1993 Allegations Part 1. 20 Apr. 2011. Web. 10 Nov. 2011. ;http://vindicatemj. wordpress. com/2011/04/20/history-vs-evanstory-the-1993-allegations-part-1/;. Interview by Barbra Walters. 20/20. ABC. 12 Sept. 1997. Television. Interview by Oprah Winfrey. Oprah Winfrey Show. KFMB. 1993. Television. Interview by Ed Bradley. 60 Minutes. CBS. 1993. How to cite Michael Jackson Research Essay, Essays

Toxic Leadership in Organizations

Question: Explain about a Essay on Toxic Leadership in Organizations? Answer: Introduction Work with several associative people is a crucial topic for all peoples. This assignment explains how to lead efficiently. In this assignment the researcher, reflects his knowledge gained from company. The researcher talks about the multi-national company recruitment of new employees, selection of new employees and procedure of retention and about culture of working. Resource of human is a very common manifestation in every multi-national industry. The prosperity of every industry is depends upon the innovative, skilled and creative force of labor. As most of the industry like to get uniqueness and skilled labor force; the employee selection and recruitment and retention procedure is very crucial to every industry. The recruitment of a new employee requires several documents, obey statutory law it will go over the point of selection (Almansour and Neal 2015). Preparing documentation for recruiting and selecting a new HR Manager The company identifies the hiring of Human Resource Manager. The division of the company needs to follow the vital script for the recruitment and selection of new members. Recruitment of Approval The process starts with the industry confirmation of company department. The respective departments of the industry, elect new employees send a detailed letter with judgment of position that represent the education and required skills for the post. After admiring the draft, it will be send it to the department of the company (Bobbio, Van and Manganelli 2012). The selection and recruitment of the organization until the grand esteem of the industry give the permission of employee request recruitment to department. The approval must include the advertisement and the draft copy. Position description The company before giving any advertisement in criterion of job it needs to specify the details of job with proper authentication of job post schedule and job name. For instance, the company named BBC is hiring the Human Resource Manager; so as the assistant it will give all the necessary details regarding job requirements of the company. Advertising Advertising is the most vital form of advertising job description of any company. With the help of advertisement the industry, pluck the potential candidate for required company position. There are several media such as online advertisement, print media advertisement, open advertisement, electronic media etc. The department will prefer that in which publishing advertisement they will use for job criterion (Eisenbei and Giessner 2012). Assessing the impact of regulatory, legal and ethical considerations to the selection and recruitment process of BBC. The selection and recruitment step is moving advance in rules and legal of the company. When the manager of human resource of the company starts the process of recruitment, he or she must be sensible of some organizational rules. The perception of statutory rules and regulation implications initialize the company to reduce esteem of risk, job posting and interview question etc. The impacts of legal, regulatory and ethical consideration are described below: Selection process After initializing the process of advertisement, the next step of department of the company is selection process. Selecting a recruitment panels: as the company is recruiting three different posts, the department will acquire three recruitment panels for selecting the new employees. In each panel, the respective department of director will present and select the new employees. Short listings: After receiving the employee application, the respective panels will short list the candidates by taking IQ tests, examinations of MCQ and written exams. The desired short listed names will be allotted to the department of the company for arranging the interview process. Interviews: The department of the company will take the interview of the selected candidates by asking some simple questions like say something about yourself, education background, cultural background, any experiences of the work and their knowledge in the specified field. Appointment: The recommendations panels of selection and recruitment for the candidates who clear the panel of selection by achieving the minimum criteria for the final process of appointment. The department will give the receipt of final statements of employees who are recommended through selection and recruitment panels. As a Human Resource (HR) assistant, the first step in selection process is to review the candidate applications. Review of applications means application that is received; to check whether the candidate possesses talent and skills for the job or not. The Human Resource (HR) assistant after proper verification; will then separate the eligible candidates for interview. Testing candidates: The second step is to test the candidate in terms of knowledge that whether the candidate is eligible for the position or not. It includes physical tests, personality tests and skill tests. The Human Resource (HR) assistant will choose various candidates and send them for testing. After appropriate tests examinations the human resource manager will select down the fewer candidates. The third step is Interview which includes personal interview with candidates. It is very important step to judge whether the candidate has the right qualification and knowledge for the job or not. The Human Resource (HR) a ssistant has taken face to face interview to know the gesture and manner of the desired candidates. Once the interview has been over the Human Resource (HR) assistant will select the potential candidates; suitable for the post. This step will drive more candidates to a negative result. This step is also called negative selection process. After performing all the necessary duties of selection process; its time to ask the candidate to submit their necessary documents with attached appointment letter for joining selection criterion. Evaluation of Human Resource (HR) assistant contribution to the selection process in BBC In this assignment, the researcher has taken part in preparing the necessary documents for employee selection. The researcher has given advertisement to gather new employees. The researcher played a role in short listing candidates and take part in giving interviews. Leadership plays a very vital role in industry. There are several types of leaderships; each has some negative and positive impact on industrial management. This part of this assignment is about styles of leaderships, quality necessary for leaderships and much more (Hoch and Kozlowski 2014). Skills and attributes required for leadership The company management decides to open a latest and new division for expanding the business. The management of the company also employs employees who take care of it; but the question is whether it will be attributes of manager or leader? The researcher opinion says that it will be leaders of attributes. (1) The new hiring is liable for company new sub-division. If the hiring person has the manager ship attributes then he cannot be able to control the sub-division perfectly. (2) If a manager cannot handle ability of managerial, he cannot be a leader also, but the leader has some special and unique attributes, which helps to control and manipulate the company new sub-division more carefully. (3) The new hiring must have the leaderships attributes because he has to lead the sub-division of profitability too (Eisenbei and Giessner 2012). Management and Leadership There are various types of leaderships namely: leadership of autocratic, leadership of democratic, leadership of paternalistic, leadership of laissez faire, leaderships of transformational and etc. In researcher opinion, leadership of democratic is the responsible person of the organization new sub-division must pursue this process to lead. It is very important leadership approach as various employees take part in the decision making process which results increase in wok responsibility. Management is the process of organizing, leading and planning industrial resources with an aim of achieving its objectives. It need to able to resolve several industrial issues which result very effective in an overall company management. It relates to entire industrial management. It differs from leadership. Leadership implies to one person; who has the capacity of leading several industrial employees. Comparison of leadership styles in several situations Through all several types of different leadership, the democratic leadership is best as many employees take part in the decision-making process and gets motivated and moralized. If any person follows the type autocratic leadership, it will increase dissatisfaction among several employees. If any employee follows paternalistic approach the independence of employees in terms of decision making process is absent and it will also leads to dissatisfaction. In real scenario, many employees want freedom especially in the case of decision-making process. In laissez approach, it is not suitable for any new division of a company. So the researcher has concluded the democratic approach of leadership (Kellerman 2012). Ways to motivate staffs to achieve objectives There are several approaches of employees motivation, which will help them to attain the goal and objectives of the industries. The most vital are Maslows Law need hierarchy theory, X and Y theory and two factors theory. In respect to company management the Human resource (Assistant) opinion chooses Maslows theory by following ways: Self Actualization: It is the most valuable theory of Maslow. It includes creativity, morality, problem solving, lack of prejudice and acceptance of facts. The Human Resource Manager (Assistant) will try to improve the morality of employees by motivating them in their organizational work. Every company must ensure the system of reasonable payment of employees. If all employees of an industry will get handsome salary, the level of motivation will increase. (Qdais and Alshraideh 2016). Esteem needs: It includes self esteem, achievement of confidence, and respect over others. The industrial culture treats all employees as bridging factor to motivate the employees. Because, it clarifies and fulfills the social prestige and social respect needs. The Human resource (Assistant) applies the theory of Maslows Law need hierarchy theory because it includes self esteem, self actualization, safety and psychological needs of human behavior. Love Belonging: It implies the friendship, family and sexual intimacy. The Human resource (Assistant) will support the employee by giving them an equal respect within company management. This led the company management get rid of insufficiency and deficiency. Safety and Psychological Needs: It is the most vital part of Maslow Theory of motivation. It generally includes security of a body, employment of resources, family morality, and safety of property (Eisenbei and Giessner 2012). The Psychological Needs primarily includes breathing, sleep, water, and excretion. This phase include all the basic necessities of human nature. The Human resource (Assistant) will provide all the necessary benefits to all the existing employees in order to motivate employees; to work effectively and efficiently. Figure 1: Maslow Theory of motivation (Source: Bobbio, Van and Manganelli, and 2012, pp-230) Benefits of team work The industrial teamwork is very much beneficial for the success of the company. The ultimate famous faith; the organizational members are the better way of sharing the enhanced knowledge with other company members. When the company team members are not liable, they have to depend on one another to meet the success of the industry (Wren 2013). The researcher has discussed some of the key growth technique of how the team members can contribute to the success of the industry: Growth of efficiency: The growth of efficiency in an industry lays some important aspects like accomplishing and sharing. There are many works that cannot be done by one employee, which will lead to dissatisfaction and de moralization of employees. In this case, sharing and accomplishing of work division among employees help them to perform work fast and with better efficiency. Development of employee relations: Teamwork is a very important concept in development of employee relations. Working together not only results in efficiency of work but also it will pave the way of better relations among several employees (Terry 2015). It will increase trustworthiness and faith among different employees of an industry. Demonstration of a team leader The demonstration of a team leader has the primarily responsibility for planning, managing and tracking the project that are physically assigned. The main role and responsibilities of team leader or project manager is to define the project manager, project. The organization has to handle several situations in their day-to-day managerial tasks. They maximum solve their issue by working in a teamwork. The industry is very keen towards their teamwork. (Wren 2013). There are several demonstrations of a team leader which includes: As a Human Resource manager (Assistant) the role lay was Coordinator, Shaper and Resource Investigator in a company management. Coordinator is specifically considered as the leader orientation of an industry. Human Resource manager (Assistant) is responsible for industrial goals and objectives. Popular qualities inbuilt in a coordinator like thinking positive enables the industry to motivate team workers and to make them dedicated about the work. Shaper: Human Resource manager (Assistant) main work is to control the shape and structure of the work. It primarily focus towards the work is excellent. Full of motivation and commitment towards completion of work helps the industry to achieve the goal. Resource investigator: Human Resource manager (Assistant) analyzes and makes the contingencies in various organizational contracts; selects the plan of project that is necessary for the industry. Review of team effectiveness in achieving the aim of BBC The industrial organizational team is very much effective in the universe of competitive world. It has the diversity of knowledge, which helps them to overcome the prevailing challenges. The teams need proper behavior ethical code that might be working with different team members. It helps them to increase the efficiency of a organizational team. The team also follows the Belbins Team Role, which has different aspects to realize them that they are helpful and effective. For the organization, they have proper and appropriate roles to control the objectives of the industry (Ong and Salim 2014). Factors involved in planning and assessment of work performance The researcher has considered some performance and measurement consideration of new employees: Setting up the methods randomly: The Company use multiple methods to control the check quality in an industry. The employee cannot clarify the working checking time to make aware. They should be very much attentive to pass the criteria. Surveying customers and clients: The industry must measure the employee performance to illuminate the survey of customer and its clients. Performance Appraisal: All the industry must follow the quality of performance on those employees especially who devote their services to the ultimate customers. Plan and assessment of deliver needs Training needs analysis: The company has to analysis the training need assessment such as: (1) an analysis of the company strategic aim and objectives, (2) person analysis: to analyze the potential instructors and participants, (3) Analyzing the task or work: the company has to control and analyze the main work of the training employees, (4) Training analysis: the company must be ensured about the comfort ability and suitability of the employees, by providing the appropriate training (Rezaei, Fahim and Tavasszy 2014). The training process must include some vital steps: Need of assessment. Objective of training. Trainee selection. Evaluation of training. Administration training Evaluation process of assessment with success The employee must contribute the organizational work training efficiently in the changing organizational environment. The new employee needs the training adaption for assessment of training of employees. It includes the survey to access and manipulate the training consequences. It has to evaluate the training result and measurement of job productivity and performance (Landa and Tyson 2016). Conclusion This study concludes the concept of leadership management in an organization. The researcher has worked as a Human Resource Manager (Assistant) in order to maintain and manipulate the process of recruitment and selection. Various models and theories in relevant to concept of leadership is reflected above by the researcher. The concept of Management and Leadership is also highlighted with respect to company management. It is quite important for everyone to maintain good leadership qualities in respect to organization behavior. References Almansour, M.K. and Neal, J.R., 2015. Toxic Leadership in Organizations.Conflict Resolution Negotiation Journal,2015(1). Bobbio, A., Van Dierendonck, D. and Manganelli, A.M., 2012. 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