Impact of Public Debt Burden on Economic Growth of Bangladesh Essay

Abstract Bangladesh is relying heavily on public debt to meet the budget deficit since its independence. In this paper, the objective is to find out whether the government of Bangladesh is excessively borrowing from the public sources and thus negatively affecting the economy of the country. For this purpose GDP growth rate (GDP), manufacturing sector growth rate (MANF), investment as percentage of GDP (INV) and Export as percentage of GDP (EXP) have been selected for judging the impact of public debt burden (DB) on these variables. The study period is 1980-81 to 2011-12. Augmented Dickey-Fuller test has been used to diagnose whether the time series data are non-stationary. Granger Causality test has been performed to identify whether DB can be used for prediction of GDP, MANF, INV and EXP, and vice-versa. Then on the basis of the result of Johansen co-integration test, Vector Autoregressive (VAR) model has been used to find out the long term association between each set of variables. But, the result shows that in Bangladesh, there is no long term statistically significant association of  DB with any of the above mentioned economic indicators. Thus, it can be said that public debt burden has no positive or negative impact on the economic growth of Bangladesh. Keywords: Public Debt Burden, Economic Growth, Domestic Debt, External Debt, Johansen Co-integration, Granger Causality JEL Classification Codes: C22, H68, R42, E62, O11 1. Introduction Bangladesh, a young country burdened with scant natural resources and a burgeoning population, has always depended on loans and grants to fulfill its ambitions and thus deficit budgets have become the norm. Budget deficits are financed by- printing money, foreign borrowings and domestic borrowings and running down foreign exchange reserves. According to the economists and researchers, Bangladesh is using all four options mentioned above and reliance of Bangladesh government on foreign and domestic loans is crowding out private investments and thus stifling the economic growth. Excessive dependency on public debt will not only hamper the current economic growth but also will affect the economy negatively in the long run, as the future generations have to bear the burden of large amount of debt servicing. This study is aimed at drawing empirical evidence, whether heavy reliance on public debt in yearly budgets is hampering the economic growth of the country. There is much debate on the issue whether public borrowing has a positive or negative relationship with the economic growth of a country. According to the followers of classical school of thoughts of economics, public debt slows down the economic growth of a country and public debt should be kept as minimum as possible. However, the Keynesian economists are extremely flexible about public borrowing. The paper is arranged as follows – the first section introduces the study; the second section describes the current scenario and trends of budget deficit and public debt burden of Bangladesh; the findings of the related literature are reviewed in the third section; the fourth and fifth sections concern the research objective, models specification, sample size and sources of data and definitions of the related variables; the estimations and interpretations of the analyses are presented in the sixth section and the final section consists of a summary and conclusion of the study. 2. Literature Review A large number of studies had been conducted to identify the impact of public debt burden on the economic growth of a country across the world. In Bangladesh a several number of research studies had been done on the sustainability of public debt burden and on the crowding out effect. However in Bangladesh very few studies have been done using the Vector Auto-regressive model, to identify the impact of public debt burden on the economic growth of the country. Fosu (1996) investigated the debt overhang hypothesis by studying 13 severely indebted countries- Zambia, Venezuela, Sierra Leone, Philippines, Peru, Morocco, Mexico, Kenya, Honduras, Egypt, Ivory Coast, Argentina and Algeria. The sample period was 1971 to 1991 and the author used OLS estimation method for panel data. The author found the negative and robust relationship between investment and external debt. Qureshi & Ali (2010) analyzed the impact of high public debt burden on the economy of Pakistan. The sample of the study was 1981 to 2008. From their study a vast negative impact of public debt on the economy of Pakistan had been found by the authors. Ahmed & Shakur( 2011) performed a research to highlight the problems created by the debt (external debt) to economic growth of Pakistan. They have used the unit root test and Johansen co-integration to analyze time series data from FY 1981 to FY 2008. The Granger Causality Vector Error Correction (GCVEC) method proved unidirectional relationship between external debt and growth rate of GDP per capita. Wijeweera, Dollery & Pathberya (2005), investigated the connections between external debt servicing and economic growth in Srilanka during 1952-2002 by using co-integration methodology for the long run error correction method for the short run.they find negative impact of debt servicing on the economic growth but insignificant. Theason is that the external indebtness is not too high in Srilanka. The result indicate that Srilanka does not have a debt overhang problem and further they conclude that there is no short run relationshi between debt servicing and GNP. Hyman (2007) conducted a study on the impact of high debt burden on the economic growth of six Carribean countries. He found that the high indebtness of these small Carribean countries is causing negative economic growth rate. Ogunmuyiwa (2011) examined whether external debt actually promotes economic growth in developing countries using Nigeria as a case study. Time series data from 1970-2007 were fitted into the regression equation using various  econometric techniques such as Augmented Dickey Fuller (ADF) test, Granger causality test, Johansen co-integration test and Vector Error Correction Method (VECM). Empirical results reveal that causality does not exist between external debt and economic growth as causation between debt and growth was also found to be weak and insignificant in Nigeria. El-Mahdy & Torayeh (2 009) used data for the period 1981-2006 to find out the debt sustainability of Egypt and the results obtained from cointegration model revealed that the public domestic debt in Egypt has a robust negative impact on growth. The sustainability of debt was examined used some algebra methods. From a study of International Monetary Fund (2008), Bangladesh’s risk of debt distress is low based on external debt indicators. Bangladesh’s external debt burden indicators do not breach the relevant policy-dependent indicative thresholds under the baseline scenario and exhibit only a marginal breach under the stress tests. Debt burden indicators are significantly worse when domestic debt is included. Accordingly, this analysis reveals a more elevated risk of debt distress on public debt compared to results based solely on external debt. Staffs will monitor closely the evolution of domestic debt and the government’s ability to mobilize domestic resources. Majumder (2007) investigated the crowding-out effect of public borrowing on private investment in the Bangladesh context. An investment function with three independent variables, namely, public borrowing, GDP and interest rate has been estimated by analyzing the unit root test, co-integration test and the error correction model. The main findings of the study do not corroborate the crowding-out hypothesis in Bangladesh, rather, provide the evidence of crowding-in effect. Gunter & Rahman (2008) used the debt projection module, to project the evolution of Bangladesh’s public debt over a 15-year horizon (from fiscal year 2006 to fiscal year 2021) under three different macroeconomic scenarios and two different financing scenarios of an ambitious government-led investment strategy. The results of the debt scenario implied that increases in the debt levels for most of the projection period with levels high enough to have negative implications on investment and growth, the grant scenario implies a clearly limited increase in debt levels, with reduced debt levels at the end of the projection period similar to those under the baseline scenario. From the brief review in can be found that public debt burden has  a negative impact on the economic growth of a country, its impact on investment and other economic indicator varies depending on a country’s extent of indebtness. Situation of Public Debt Burden in Bangladesh Public debt is of two types- i) external debt and ii) domestic debt. The amounts of domestic debt are estimated by the Ministry of Finance of Bangladesh government. Figure 1: Budget Deficit, External Loan, Domestic Loan, and Net Loan from Banking and Non-banking Sector of Bangladesh from1993-2012 (amounts in ‘00 crore taka) Source: Bangladesh Economic Review 2005-06 and 2011-12 From the above graph it can be found that the budget deficit of Bangladesh government is increasing from year to year and it is showing a sharp increment in deficit from the fiscal year 2008-09 onwards. The domestic debt burden and govt.’s reliance on credit from banking channels are showing a sharp increase from the fiscal year 2009-10 onwards. However the dependence on external credit is showing a declining trend. Research objective and Sample The objective of this research is to observe the empirical relationship between public debt burden and economic growth of Bangladesh. For this purpose time series econometric tools have been used. Various variables that indicate debt burden parameter and growth condition have been taken in to consideration. The sample period of the study is 32 years, from 1980-81 to 2011-12. Data used in this study has been collected from secondary source. Data and Methodology * Nature of the Variables: In this study variables used are- Debt Burden (DB), where DB is stands for Debt Burden that is sum of Domestic Debt and foreign debt outstanding at the end of each period, calculated as percentage of GDP; Gross Domestic Product (GDP) growth rate; manufacturing production growth rate (Manf); total investment as percentage of GDP (Inv); and total  export as percentage of GDP (Exp). * Data Collection: Data series of these variables is collected from Bangladesh Economic Survey/ Review (various issues), Monthly Economic Trends (various issues) and Statistical Year Book of Bangladesh (various issues). * Method of Estimation: At first the stationary property of the univariate time series data has been examined. Augmented Dickey-Fuller (ADF) test has been used to test the unit roots of the concerned time series variables (Dickey and Fuller, 1979). The extended maintained regression used in the ADF test can be expressed in its most general form as: (1) Where, is the drift term, denotes the time trend, and is the largest lag length used. In this model, H0 =There is unit-root; & H1 = There is no unit-root. Then, the time series has been examined for co-integration. Co-integration analysis helps to identify long-run economic relationship between two variables. Granger and Newbold (1974) noted that, co-integration analysis is important because if two non-stationary variables are integrated, a Vector Autoregression (VAR) is misspesified due to the impact of a common trend. If co-integration can be identified between the variables then the model should include the residuals from the vectors (lagged one period) in the dynamic Vector Error Correcting Mechanism (VECM) system. If the variables are not co-integrated then Vector Autoregression (VAR) model is used. (2) The bivariate vector autoregressive model has two dependent variables y1,t and y2,t, where t = 1, †¦, T. The development of the series should be explained by the common past of these variables. That means, the explanatory variables in the simplest model are y1,t-1 and y2,t-1. The VAR (1) with lagged values for every variable is determined by: (3) y1,t= ∠11y1,t-1+∠12y2,t-1+ÃŽ µ1,t y2,t=∠21y1,t-1+∠22y2,t-1+ÃŽ µ2,1 In this model the assumptions about error terms are- * The expected residuals are zero, EÃŽ µi,t=0 with i=1, 2 * The error terms are not auto-correlated EÃŽ µi,t.ÃŽ µj,Ï„=0 with t≠ Ãâ€ž However, VAR-Models themselves do not allow us to make statements about causal relationships. This holds especially when VAR-Models are only approximately adjusted to an unknown time series process, while a causal interpretation requires an underlying economic model. However, VAR-Models allow interpretations about the dynamic relationship between the indicated variables. (4) The Johansen approach can be used to carry out Granger causality test as well. Granger (1969) developed a test approach to proof if a time series X contributes to the prediction of another series Y. Granger Causality is exists if the mean squared forecast error (MSE) by using the series X in the forecast model is smaller than without consideration of X: MSEYYt+hItÃŽ »2>ÃŽ »3>†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..>ÃŽ »k and r0 ranges from zero to k-1 depending upon the stage in the sequence. This is relevant test statistics for the null hypothesis r ≠¤ r0 against the alternative r ≠¥ r0 + 1. The second test statistic is the maximum Eigen value test known as ÃŽ »max(r0). This is closely related to the trace statistic, but arises from changing the alternative hypothesis from r ≠¥ r0 + 1 to r = r0 + 1. The idea is to improve the power of the test by limiting the alternative to a co-integration rank which is just by one more than the null hypothesis. The ÃŽ »max test statistic is: ÃŽ »max(r0) = -T in (1- ÃŽ »i) for i = r0 + 1 The null hypothesis is that there are r cointegrating vectors, against the alternative of r + 1 cointegrating vectors. Johansen and Juslius (1990) indicated that the trace test might lack power relative to the maximum Eigen value test. Based on the power of the test, the maximum Eigen value test statistic is often preferred. Estimation and Explanation To examine the impacts of public debt burden on the economic growth of Bangladesh for the time period of 1980-81 to 2011-12, the research results and their explanations are presented in this section.

Integrating Facebook In Teaching And Learning Education Essay

In this information age people are interacting with a assortment of new engineerings that people in different places try to utilize them to ease their occupations and come up with good consequences. Educators are besides be givening to utilize those engineering tools for more effectual instruction and acquisition by prosecuting and actuating scholars in the acquisition procedure. One of those technological tools is societal networking web sites. Among societal networking web sites facebook is the most popular one which has sucked a immense sum of young person to utilize it for communicating and practical societal interaction. As a effect, many instructors are trying to do a usage of facebook to better the larning out comes and do the acquisition more interesting to the scholars sing to the young person battle in the facebook use and the monolithic sum of clip which they spend in this practical environment. On the other manus, it is important for the pedagogues to cognize which type o f larning manner can profit more from utilizing this sort of engineering or whether there is a large difference in willingness of different acquisition manners for disbursement clip in facebook or non. Facebook is the most used societal web by worldwide active users which was founded by Mark Zuckerberg in February 2004 as Harvard-only societal web site. This societal web web site was able to pull a immense sum of users specially youth in a short period of clip. Right now it has more than 500 million active users around the universe. Actually, Facebook is defined as â€Å" a societal public-service corporation that helps people portion information and communicate more expeditiously with their friends, household, and coworkers † ( facebook.com ) . Although at first facebook was launched as Harvard societal web but developed to affect and prosecute other high school pupils, professionals inside corporate webs, and finally everyone who have entree to the on-line universe ( Cassidy, 2006 ) . Facebook allows users to make a personal profile while leting for information sharing, communicating, exposure albums, making a friends list, organizing or using to societal involvement groups, and different sorts of on-line games. In drumhead, Facebook members can portion their exposures, send messages, chat, tag themselves or others on exposures, write on friends ‘ walls, articulation groups, create new groups, portion thoughts in group treatments, add sorts of applications, and play games in Facebook. Facebook has been accessed by 1000000s of users in a short clip while going a portion of users ‘ day-to-day lives ( Ellison, Steinfield, & A ; Lampe, 2007 ; Selwyn, 2007a ) . Some maps and capablenesss of facebook such as enabling equal feedback, goodness of tantrum with societal context, and interaction tools make facebook an educational tool ( Mason, 2006 ) . Learning Manners The impression of larning manners is all about the ways which a scholar prefers to utilize when he/she is larning and retrieving new cognition ( Funda Dag & A ; Aynur Gecer, 2009 ) . Furthermore, Simsek ( 2001 ) stated that larning manner is a group of factors which determines how the pupils psychologically perceive, interact and response to larning environments. Harmonizing to Felder ( 1996 ) , every scholar prefers to larn otherwise. Some scholars can larn in an synergistic relationship with their friends and instructors and sing things by themselves, the others learn with a ocular presence of stuffs and information, and some scholars prefer to do usage of written stuffs and they agree that verbal accounts are more helpful to them. Therefore cognizing about the acquisition manners of the scholars is of import either for pedagogues or scholars. It could be utile for instructors because they will acquire a clear thought about how to learn persons with different larning penchants and besides it would be effectual for scholars to cognize how they learn better and easier. Indeed, there are some popular theoretical accounts to categorise larning manners such as ; David kolb ‘s theoretical account, Honey and mumford ‘s theoretical account, Anthony Gregorc ‘s theoretical account, Sudbury theoretical account of democratic instruction, and Fleming ‘s VAK/VARK theoretical account of larning manners. For the purpose of this survey Fleming ‘s VAK/VARK study was used to research different larning manners of research participants and see how different acquisition manners spend clip in facebook. VARK study tool was created in 1998 to research persons ‘ different acquisition manners. Alkhasawneh, Mrayyan, Docherty, Alashram, Yousef, ( 2007 ) , described ; â€Å" aˆÂ ¦VARK is based upon cognitive development work by Bruner ( 1967 ) and Piaget ( 1990 ) who argued that worlds assimilate environmental cognition through four centripetal modes: ocular, aural, reading and composing, and kinaesthetic ( utilizing tactile centripetal abilities such as a odor and touch ) . VARK is an acronym for Visual, Aural, Read/Write, and Kinesthetic ( Fleming, 2004 ) . VARK is an instrument that is speedy and easy for pupils to utilize and understand. It creates an consciousness of larning manners and provides motive to seek betterments in their acquisition penchant. †MethodInstrument Data is collected by administrating an online and manual study. The study is consists of two subdivisions, the first subdivision leads participants to an on-line VARK questionnaire ( http: //vark-learn.com/english/page.asp? p=quetionnaire ) . Students are required to describe their tonss in an online VARK acquisition manners questionnaire in the manual questionnaire. The 2nd portion of the manual questionnaire consists of two parts. In the first portion, participants were required to reply five demographic inquiries include of their name, age, electronic mail reference, gender, facebook ID. Furthermore, the topographic point where they have normally entree to the Internet, length of clip spent online in facebook, and their rank in any academic group were collected. The 2nd portion, 5-point Likert graduated table with 6 inquiries, was measured participants ‘ clip spent for different activities in facebook. These six inquiries were developed by research worker based on different maps exist in facebook and different activities that a facebook user is able to make. Participants Data was collected from 36 signifier four Malayan Chinese pupils ( 14 Male and22 female ) from SMJK Kwang Hua School in province of Selangor, Kelang. The whole of participants are at the age of 16 old ages old. Two pupils of these 36 are non facebook users. The questionnaires were distributed among pupils and they were expected to make full up them at place sing to their entree to the Internet at place to make full up larning manners questionnaire.Date analysis and consequencesLearning manners:Learning MannersOcularAuralRead/WriteKinestheticEntireMaleFemaleFrequency88614361422Table1: Frequency of each learning manner among participants Harmonizing to pupils ‘ studies on their acquisition manners tonss, among 36 signifier 4 pupils, there are 14 kinaesthetic ( 39 % ) , six read/write ( 17 % ) , eight aural ( 22 % ) , and eight visual ( 22 % ) . The consequences validated this statement from Suffolk County Council ( 2002 ) , â€Å" It has been estimated that up to 37 % of the population are kinaesthetic scholars†¦ . †Different acquisition manners and clip spent in facebookData was collected shows that there are some differences among different larning manners on clip spent in facebook and different activity penchants. The holla tabular array showsQ1: E-PQ2: CHAQ3: ObQ4: ActQ5: W-VQ6: SHAfb/Internetnorm of clip devouring in fbOcular1.252.253.52.52153 %8.1Aural0.752.53.753.252.751.553.5 %5.5Read/Write0.81.62.42.42272 %6.5Kinesthetic0.613.3843.382.921.2364 %8.2Mean0.852.433.412.882.411.43South dakota0.27 0.730.70.50.480.42Table 2: Average of clip spent for each activity in facebook by different acquisition manners scholars Indeed, this tabular array shows ocular and kinaesthetic scholars spend the highest clip ( 8.1 & A ; 8.2hour/week ) among other scholars in facebook whereas, aural scholars spend the lowest clip in facebook ( 5.5hour/week ) among other scholars. Another consequence which is interesting is that read/write scholars spend about 72 per centum of their clip online in facebook. Chart 1: Different activities in facebook ; Q1: E-P: Educational Purposes Q2: CHA: Chatting Online With Friends Q3: Ob: Reading or Detecting What Others Do Q4: Act: Doing Activities in Facebook Q5: W-V: Watching Videos Q6: SHA: Sharing News and Information about School Harmonizing to the above tabular array and chart ocular, aural, and kinaesthetic scholars spend the highest clip in facebook â€Å" lurking † or reading others ‘ stations while read/write scholars spend an equal clip in facebook lurking and besides to make activities such as composing a position or uploading a image. In fact, pupils with different sorts of tilting manners spend the highest clip in facebook to detect and read whatever their friends do or skulking. On the other manus, pupils with any acquisition manners spend the lowest clip in facebook for educational intents. In fact, ocular scholars spend the highest clip ( 1.25 hour/week ) for educational intents among other larning manners where as kinaesthetic scholars spend the lowest clip ( 0.61 hour/week ) for educational intents. Kinesthetic scholars spend the highest clip ( 3.38 hours/week ) to chew the fat with their friends while read/write scholars spend the lowest clip ( 1.6 hours/week ) to chew the fat with their friends among other larning manners. Kinesthetic scholars spend the highest clip ( 4 hours/week ) to detect and read others ‘ activities while read/write learning manner scholars spend the lowest clip ( 2.4 hours/week ) . Kinesthetic scholars spend highest clip to make activities in facebook ( 3.38 hours/week ) while read/write learning manner scholars spend the lowest clip ( 2.4 hours/week ) . Kinesthetic scholars spend the highest clip to watch picture in facebook ( 2.93 hours/week ) , while ocular and read/write scholars spend the lowest clip ( 2 hours/week ) . Read/write scholars manner spend highest clip ( 2 hours/week ) to portion intelligence and information about school and classs while ocular scholars spend the lowest clip ( 1 hour/week ) . Students with read/write larning penchant spend 72 % of their clip online in facebook which it shows although they are non on-line every bit much as others but they spend most of their clip in facebook.Findingss and Discussi onThis survey aimed to calculate out the sum of clip spent in facebook for pupils with different larning manners and besides to happen out activity penchants of facebook users with different larning manners. Sing to the consequences there are some differences in clip spent in facebook for different acquisition manners. For case, the consequences show that ocular and kinaesthetic scholars claimed more clip spent in facebook so it can be concluded that this environment is more interesting and prosecuting to these types of scholars but it does n't intend that this environment is non suited for the other types of scholars with different larning manners like aural or read/write scholars. So any type of larning manners can profit from this environment and instructors can do a smart usage of this societal web web site to prosecute pupils in larning procedure and besides to enrich their acquisition. Furthermore, consequences show that each type of larning manners is interested in skulking o r reading and detecting whatever others do. In this respect, instructors should take into see this sort of pupils ‘ involvement in their instruction schemes and teaching methods. Actually, this is the teacher function to plan, construction, and program in a manner to do the facebook an educational environment. It can be done when a instructor uses facebook in a manner it is and in a manner that it engages pupils to remain in it for a long clip. Teachers should look at the nature of facebook and inquire themselves what has made the facebook popular like this. What is the facebook power that keeps people interested about it? To reply these inquiries some researches should be done. Harmonizing to some surveies that have been done, societal presence and interaction among people could be a ground for this attraction. People enjoy of societal interactivities and showing their sentiments in societal environment. They like to talk out to show themselves and they have wonder to cognize about others. Many instructors tend to utilize facebook for educational purposes because they know most of pupils are interested in utilizing facebook but they face some challenges in the manner of utilizing it because they want to utilize it in a similar manner that they use any other online tools like wikis, moodle, or educational web sites whereas, facebook has a different nature. Teachers can believe about facebook in a different manner. In a manner to reenforce face to confront schoolroom larning. They should inquire pupils to come to the facebook and portion their perceptual experiences, believes, thoughts, sentiments, and definitions about different constructs and topics to acquire more familiar with each other ‘s perceptual experiences, acquire more thoughts about different educational affairs and open up their heads about different affairs. For case, a mathematics instructor begins learning fractions in schoolroom and so asks pupils to take part in their class facebo ok group and reply the instructor ‘s inquiry. The inquiry could be why do we hold to larn fraction? Why it is of import to larn about fraction and it can be used in our life? To reply these inquiries pupils have to believe, hunt, and explore and so come up with different replies and discuss with their schoolmates about their findings. Right now, the instructor can do certain that they are more interested in larning fraction because they know how of import is the acquisition of this subject and furthermore they will be more curiose to see is their sentiments and thoughts about fraction comes true or non. Actually this survey has some restrictions. First, because the information was collected from merely 36 Chinese race pupils, it could non be generalized. In add-on, it has been limited to a study method. The consequences could be more accurate if there were some qualitative methods of informations aggregation.DecisionSocial webs, particularly facebook are used by a immense sum of pupils anyplace in the universe. As a consequence, most of instructors are interested in utilizing this societal environment to prosecute pupils in larning procedure. It is important for instructors to cognize whether facebook is suited for all pupils with any type of larning penchants or non. This survey showed that ocular and kinaesthetic scholars spend more clip in facebook but it does n't intend that the other types of acquisition manners do n't utilize facebook. Indeed, it depends more on instructors to take the best scheme to suit the demands of any type of larning penchants. Teachers should reply this inquiry ; â€Å" How to prosecute my pupils in an academic facebook group? † or â€Å" what makes the facebook so popular among young person and how to do a usage of this characteristic to prosecute pupils in larning activities? † This survey has been done on a little group of participants ( 36, 16 twelvemonth old pupils ) . Further surveies should be done on mo re sums of samples. Furthermore, some surveies should be conducted to happen out in which manner educational usage of facebook can be more interesting for scholars.

Communication Satellite Corporation Essay

The following judgment on the appropriate economic regulations of the Communications Satellite Corporation (Comsat) has been arrived at after considering the due deliberations presented before the Commissioners by the two parties; namely Comsat and FCC. Central to this judgment is the premise that â€Å"the return to the equity owner should be commensurate with returns on investments in other enterprises having corresponding risks.† Also, the fair rate of return should be actually that required (or expected) by a firm’s investors. The Commissioners are also of the view that the interests of the ratepayers should be safeguarded. The ratepayers should not be penalized for any change in circumstances (e.g. excess liquid cash due to change of technological needs) resulting in inefficiency at Comsat. Such risk should be borne by the Shareholders alone. The judgment covers the fair rate of return awarded to Comsat (commensurate to its risks), the rate base and the price structure to be followed by Comsat. At the onset, we concur with Comsat’s argument that their risk profile cannot be compared to that of AT&T due to the following: 1. Even though AT&T is in the same business of providing communication channels, yet the equipment used is vastly different i.e. satellites versus data cables. 2. AT&T is a well-established utility while Comsat is a new venture. Their risk profiles are not similar. 3. Considering the testimony of Dr. Myers, the beta found for AT&T and Comsat are different thus implying that the investors view the inherent risk of the companies differently. Next, we look into the various risk factors discussed before us in order to reasonably estimate the risk inherent in Comsat. Operating Risks 1. Technological Risk: The trial staff established low technological risk by considering in hindsight the fact that Comsat’s evolution was relatively trouble-free. In our opinion, this is unjustifiable as when the company was started there was no way of knowing this and the technological risks were immense. 2. Business Risk: There was no government guarantee for Comsat. Also, considering the fact that disclosing information in a prospectus in no way changes the risk associated with the business. 3. Demand Risk: The arguments put forward by the trial staff in this case are sound but do not present a case for comparison with AT&T. 4. Competitive Risk: We think that competitive risk is medium, thus deviating from both the trial staff and Comsat’s stand. This is because although high risk was created due to Comsat’s competitors being its customers, it was also mitigated to some extent by FCC’s support. 5. Regulatory Uncertainty: Again this uncertainty of prospective regulation is reduced by expected support from FCC. 6. Political/International Risk: We agree here with the trial staff’s response. The risk faced by Comsat is probably just a little greater than that faced by other international organizations operating in those countries during that time. From the above discussion, we conclude that the company faces more operational risk than that touted by the trial staff albeit it is not as high as Comsat claims. Financial Risk The trial staff wants to impute the implications of a 45% debt structure to calculate the cost of capital. This is incorrect since firstly, there were no assets that could be used as security till 1972 and secondly, this is a hypothetical situation of which there can be many. However, we are of the opinion that the debt should be imputed at a rate of 45% post-1972 as a miscalculation on part of the management should not result in unjustified price structure for the ratepayers. Rate Base The appropriate rate base should now be calculated based on the above decision to impute debt post-1972. Pre-1972, the rate base will be the entire capital of the company. Evaluation of Cost of Capital We disagree with the first two witnesses, namely Dr Brigham and Dr Carleton and their estimation of Comsat’s cost of capital. Dr Brigham’s method takes into account 602 industrial firms and 56 utilities. These two categories of companies are not comparable for the purposes of this analysis. Also, the Andersen study using four utilities and its results is not worth considering since these utilities had a different capital structure and consequently, a completely different risk profile from that of Comsat. Dr Carleton has arrived at a risk premium of 2-4% but has provided no reasonable justification or methodology followed for calculating this. Also, we have no indication whatsoever about the nature of this premium, whether it is the risk premium for Comsat or the utilities sector or the market or the country as a whole. We concur with Dr Myers’ methodology of using the CAPM for calculating the risk premium. This study further simplifies matters as the cost of equity and the cost of capital is the same for this firm pre-1972 and incorporate the cost of debt post-1972. Also that the beta in this case would be calculated on the basis of market data. Assuming the markets to be efficient  implies that the appropriate risks have been implicitly factored into the prices and the beta. Based upon these estimates we will state the cost of capital to be 14%, which is the mid point found for the various risk estimates over time, taking into account a beta range from 1.4 – 1.7 as recommended by Dr. Myers. Pricing Structure The commissioners are of the view that Comsat was injudicious in charging the maximum rates the markets could bear. Instead, Comsat should have charged rate of return that is sufficient for it to maintain: a) to cover cost of capital already committed to the enterprise over and above the operating expenses incurred; and b) to attract additional capital as needed in competitive money markets at reasonable costs. We instruct FCC and Comsat to calculate the appropriate revenues for Comsat in line with the preceding judgment. Comsat should be penalized 50% of the excess revenue, if any, and FCC should use this money to further infrastructure development in Communication systems.

Topic 3 Essay Example | Topics and Well Written Essays - 1750 words

Topic 3 - Essay Example God, Tao, and the light address uncertainty in the way of living and derive a sense of goodness and integrity in the world. This paper will compare God, Tao and the light and establish how we access them and how the three deal with or address uncertainty. The book of Job seeks to define why the righteous suffer by presenting how God offers justice in case of human suffering. Indeed, in this book, God lets Satan destroy Job’s property and kill his children only for God to restore Job’s possessions in multiples. This derives an uncertainty about God, His justice, and the goodness in our way of living. The Allegory of the Cave presents the uncertainty in human life with respect to education. In this context, the sun acts as the source of light that derives human capacity to see where the sun symbolizes the Form of the Good. Notably, self-awareness eliminates cases of uncertainty in human life. The Tao Te Ching has 81 verses, which seeks to explain how to manifest goodness and integrity in our way of living in a world where many people are uncertainty about the reality of goodness and integrity in human life. Indeed, even the origin of the Tao Te Ching is not certain. It is clear that God, Tao and the light deal with and ac commodate uncertainty. From the book of Job, we can see that God is subjecting Job to suffering albeit some limitations. God limits Job’s misfortunes and Job and his friends fail to understand why God is punishing a righteous person like Job. They are indeed uncertain on how God works since they expected a just and righteous person like Job to get the justice he deserves. Ideally, God should reward the righteous and punish the wicked. Job and his friends believe in this assertion and hence their uncertainty on how God works leads them to choose between blaming Job or God. They almost gave up on the belief that God delivers justice since they would not understand how a just God could subject a righteous person to suffering. This book

Contrasting the English and French Court Decisions in Dallah v Essay

Contrasting the English and French Court Decisions in Dallah v Pakistan - Essay Example The concept of Arbitration is a process by which parties which are bound by a contract can choose to settle disputes without engaging in any time-consuming litigation process. In most cases the parties enter into an agreement in their respective contracts about the arbitration methods that will be employed in case of any disputes that could happen in future. In some other cases such arbitration can also remain a statuary requirement. The process of Arbitration is being governed through various statues in different countries has acquired international recognition via conventions such as the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards 1958 (New York Convention).1 For many reasons Arbitration is the most sought after option than litigation as the process is quicker and also involves lesser expenses and a higher degree of transparency compared to litigations. Also in cases where a lower judicial standard could possibly compromise the outcome of a case, arbitration is the preferred choice for resolving disputes. In addition, cases of multinational companies which usually include parties to settle international disputes in contracts and where a higher degree of confidentiality is at stake; the process of arbitration would be more suitable to settle such discrete cases compared to the court litigations. In some other cases arbitration can be preferred by parties in order to ensure control of the proceedings throughout the case which could be vital for making crucial decisions. In the arbitration process parties usually have their choice of representation who would be involved in presenting their arguments in the case. Individuals with the necessa ry skills and legal expertise are mostly chosen to contend on their behalf. In addition, the parties also have considerable say in the appointment of the chairperson for the arbitration process. Choosing the process of Arbitration also provide parties

Pantheon Essay Example | Topics and Well Written Essays - 1500 words

Pantheon - Essay Example It was thought that this inscription referred to the present temple, but Agrippa's temple was destroyed and then restored several times by Domitian and Trajan. It was fully reconstructed by Hadrian around 125 A.D., but he preserved Agrippa's inscription. This new Pantheon has been attributed to the architect Apollodorus of Damascus, one of the most famous architects of the Ancient world. The Greek influences we can appreciate in the portico (very similar to the pronaos of the Greek temples) are due to the great admiration Hadrian felt for Greek culture. After the portico, we find a big circular cella or rotunda, covered with a semispherical dome with an oculus opened to the sky. The portico and the rotunda are linked by a polygonal structure. The dome rests on a cylindrical drum and it is decorated with coffers, which were designed to reduce the weight of the dome; it is the world's largest concrete dome. The walls of the temple have the same height as the radius of the dome and the total height is equal to the diameter, so a perfect imaginary sphere can be inscribed in the interior of the Pantheon. The structure of the Pantheon is very different from the conventional structure of the roman temples, which was very influenced by the preceding Etruscan and Greek models, so when it was built it represented an important innovation. Although we can find examples of domes resting in a cylindrical drum in some previous buildings, like the thermal baths of Agrippa or Caracalla, the dome of the Pantheon is the first one built with such big dimensions. The materials used in the Pantheon were also very innovative; the concrete applied to the construction of the dome and the marble, used in the floor, which was a symbol of magnificence and splendor. Agrippa's temple was smaller than the present temple and it was facing to the south (the actual Pantheon is facing to the north). It seems that the structure was very similar to the actual temple, and it was based in the architectural principles of Vitruvius. In the pronaos, now decorated with Corinthian columns, were erected the statues of Augusto and Agrippa as the promoters of the temple, so what people saw at first sight were the figures of the Emperors, as the developers of this magnificent architectural work. The geometry of the Pantheon has a deep symbolic meaning. According to the plane geometry and Vitruvius' ideas, the squared Greek portico represents the Earth and the circular rotunda the Heaven. The rotunda and the dome are linked by an octagon, by which the squaring of the circle is achieved; this will mean the indestructible union between matter and spirit. In the floor we can also find geometrical drawings of circles inscribed inside squares. Furthermore, the lower part of the drum's wall is drilled with niches, suggesting a continuity in the unlimited space. The columns that support these niches have been constructed as if they were not supporting the dome, so it seems to be floating in the air. The dome represents the vault of heaven and each of the five levels of coffers represents the five concentric spheres of the Ancient planetary system. The central oculus, which illuminates the interior of the temple, symbolizes the

Down the Hatch Essay Example | Topics and Well Written Essays - 1500 words

Down the Hatch - Essay Example All this made her to remember what happened on the previous day. She and Ingrid her friend was in deep sleep; it was a quirk of fate because nothing can be asleep when the alarms are sounding off. However, it did wake them up because the alarms were a signal that a tornado is in close proximity and not a signal for anything mundane. A possible disaster brings with it a list of things people have to do to save their lives and number one on that list is the flight to a shelter. Hence, acting fast and evacuating all the breathing mortals will save as many lives as possible. That is why both of them ran to the barn but there was no one there, not even the horses although they usually prefer to stay where they are when a disaster strikes them. Only Katrina's dog, Amber, was there; perhaps waiting for her to show up. She didn't want any animal to feel disowned under such circumstances, for she was a caring human being above anything else. Now, she reflected, she had to shelter herself and the other two from the grueling tornado. Katrina let out a peaceful sigh and looks out the window in the living room. She sees no one. Letting her gaze wander towards the sky, she notices that they turn in vivid shades of orange and green just as her eyes fixes on it and the air comes to a standstill. The sheer action seemed like a premonition of some sort. The sinister atmosphere, that resulted, alone was trying to disturb her peaceful and tranquil soul again. An adventure had occurred with Katrina and her girlfriend yesterday; it was surely an intimidating day for her but she had acted in a cool, calm and collective way and had defied all the scariness out of her. The clouds formed a thundering sound and the rain then poured with a renewed energy, Katrina didn't know it was capable of producing. Remembering what to do, Katrina, her girlfriend Ingrid and her dog Amber, took refuge in a strapping shelter situated below that barn's floor. Sited in the barn was a hatch that opened to a safe haven. Katrina and Ingrid were conversing about the vice that tornados seem to bring in the lives. The vice that make a man wonder how God can allow such things to happen to ordinary people out of the blue as they, in their sight, weren't able to do anything extremely dire to evoke the anger in God this bad. They disagreed because Katrina held a firm belief in God and thought of Him as a God and nothing else. It may stir up guilt in her later to think of God in a negative manner. The disparity between their views was mainly due to their different religions. Katrina felt disturbed as she had always tried not to bring up any talk of religions, her or any other's, between them. It only created resentments in such a beautiful relationship. "Once we were late in evacuating all the animals and so lost a couple of horses and since then, Mother tells me we never found their bodies even." Katrina said trying to steer the conversation in a new direction. Thus, they started talking about their favorite animals; Ingrid loved birds but Katrina liked the four-legged creatures better. It was startling just then to observe the discrepancy between the two friends because of the way each of them were responding to the present circumstances. For the reason that where Katrina was a simple Midwestern Christian farm girl; Ingrid was a skittish East Asian Buddhist free willed girl. Tall, lean and wary with a

Israeli and Palestinian Term Paper Example | Topics and Well Written Essays - 1750 words

Israeli and Palestinian - Term Paper Example The government of Israel has become so strict about the publication of news regarding this conflict because it is spelt out in the constitution. In fact, according to the Israeli government, journalists are free to handle any topic rather than those that touch on national security and can be able to compromise it by insisting the people and promoting violence. On the other hand, the media freedom in Palestine is better than that in Israel. The Palestinians are free to cover much information about this conflict and avail to their audience. Although it is a matter of national interest, the government has appreciated that there is a craving demand for news about this war (Vipond, 2000). Hence, unlike in Israel, the Palestinian journalists are not put under strict censorship and restrictions (Jonathon & Karolides, 2009). Thus, they can adequately inform the people about the war without many restrictions. Mass media involve many different media technologies that reach large audience through mass communication. The media technology where communication is effected varies; broadcast media transmit information electronically and they include television, recorded music, film and radio. Print media employs the use of materials to distribute information, and includes books, magazines, newspapers, pamphlets and comics. Outdoor media transmits information through signs, placards and billboards (Lorimer & Patty, 2004). The digital media entails mass mobile and internet communication. Internet media has many services; for example websites, social networks, internet television and radio. Companies that control these media technologies are also referred to as mass media; for example publishing houses, television stations, social networks and radio stations. Glocalization involves adaptation of a given service or product uniquely to a given culture,

Water Supply and Its Situation in Texas, Arizona, Oklahoma, Kansas, Ca Dissertation

Water Supply and Its Situation in Texas, Arizona, Oklahoma, Kansas, California, Nevada andMexico - Dissertation Example First, in the case of Texas that is experiencing about 40% of drought conditions as Hess & Frohlich write, the state needs to reverse the heavy use of water in the processing of natural gases in the fracking process (1). This will help save water and even save the agricultural sector. Oklahoma’s water problem may be solved by making agreements with other states on how it can save water even if it has to dig underground reservoirs for the same. Hess & Frohlich says that the same case would apply for Arizona since the state enjoys seasonal rains throughout the year (1). Through saving this water in underground reservoirs, the state can help deal with the severe drought conditions. Kansas, Nevada, and Mexico would greatly benefit from an institution of a water management plan that would even include the help of engineers to even construct underground pipes that will help store and transport water in the required places. For the case of California, investing in desalination water plants would prove useful since these plants as Hess & Frohlich explain would help save a lot of water that would have otherwise gone into waste (1). This water would also help in agricultural practices among the many farm workers in the state. From an analysis of the water supply conditions in these states, it is evident that there requires having stringent and timely measures to solve the water problems existing today. As seen in the compilation of Hess & Frohlich, fracking is a major contributor to drought in Texas (1). According to BBC, fracking is the process that involves drilling into the earth in the quest to release the gas underground (1). In this process, water of high pressure is directed at that underground rock so as to release the gas underneath. In the course of the fracking process, BBC writes that gas flares up from the ground either after the horizontal or a vertical process of hitting the rock layers.

US Macroeconomic policy 2006-2008 Research Paper

US Macroeconomic policy 2006-2008 - Research Paper Example With the global political situation ever changing, foreign policies fluctuation in split second, the economy has suffered too over the recent years. This paper describes the United States of America's macroeconomic polices in the recent years and their impact on the people. We shall consider the past three years and look at how the changing economic policies changed business interests and how they impact the overall economic situation of the state. In 2006 U.S economy was still suffering from the effects that the hurricanes such as Katrina had on the U.S. economy and because of their reverberations in 2006. The health of the national economy was facing threat, due to the severe beating that the infrastructure took-most notably the infrastructure for energy. For the preceding year and a half, energy prices had surged worldwide. When the storms hit at the end of August, economic activity had been quite robust for several years, supported by monetary accommodation and strong productivity growth. Real GDP had grown steadily at, or above, its potential or long-run sustainable pace, which is estimated at around three and a quarter percent. This pattern continued even during the third quarter-immediately following the hurricanes-when real GDP grew by just over four percent. In the fourth quarter, growth did drop sharply to about 1 percent. However, a good deal of this slowdown appears to have been due to several temporary factors, non e of which were related to the hurricanes. In 2006 the US economy was facing a great deal of un-certainty; the economy appears to be approaching a highly desirable glide path. First, real GDP growth currently appears to be quite strong, but there was good reason for it to slow to around its potential rate as the year progresses. Second, it appears that US economy operating in the vicinity of "full employment" with a variety of indicators giving only moderately different signals. The Fed raised the federal funds rate by 25 basis points a total increase of 350 basis points. However, once the rate got to 4 percent, the issue of exactly how much accommodation actually remained in the economy became more of a judgment call. As a result, some further policy firming was needed to keep the risks to the attainment of both sustainable economic growth and price stability roughly in balance. The U.S. Economy and Policies in 2007 In 2007 the data showed payroll employment growing at a rather robust pace for all of last year. Moreover, the unemployment rate had declined by half a percentage point over the past year; this suggests a degree of tightness in the labor market, The decline started toward the end of 2005 and residential investment has fallen-in absolute terms-by a total of 13 percent. This sector alone which represents only a small fraction of U.S. real GDP-subtracted a hefty 1 percentage points from real GDP growth. Housing starts have followed a similar pattern, reaching a climax in January 2006 and then falling by roughly 40 percent through January of 2007. In addition to housing, weakness in

The Treatment of Heroes in Ancient Poetry and Modern Film Essay

The Treatment of Heroes in Ancient Poetry and Modern Film - Essay Example However, these solutions often leave a wake of destruction behind them. At the base of each man's soul is a deep-seated sense of respect for the tenets of honor and courage. One of these men is Odysseus, king of Ithaca. Agamemnon and Menelaus drag him away from his peaceful home, where he leaves his wife and infant son for a war that will take ten years, and a journey home that will take twice that, stories chronicled in Homer's Iliad and Odyssey. The other is Detective Martin Riggs of the Los Angeles Police Department. The Lethal Weapon movie series shows how he tries to find and maintain a sense of personal peace while being pulled into chaos by criminal after criminal. Both of these men fit the description of the hero that has transcended time to become an idea that audiences all over the world have enjoyed since performance art began. The most dominant force in the hero is "competitiveness".1 The ancient Greeks loved athletic competitions, and it is no surprise that Homer's twin epics feature them: Odysseus must watch the games at Phaeacia before he is allowed to journey home, and Odysseus sets up a deadly contest in his own castle in Ithaca, ostensibly to give away Penelope to one of the suitors, but actually to trap all the suitors in his home. These are not just set-pieces used for plot purposes, however; the suitors in Odysseus' home while away the years by having contests of strength and agility virtually every day. In the example of Martin Riggs, the competition is somewhat different. While there are no athletic events in his story, he and his partner, Det. Murtaugh, go back and forth about the relative effects of aging on both of them, and they badger each other in a semi-humorous fashion about which one of them has better aim with a gun, can run faster to catch a criminal, and so on. Each of the movies in the series finds it climax in a hand-to-hand combat scene, using the competitiveness to build suspense within the audience. This idea of competition also appears in the 1959 classic Ben-Hur, where Judah and Messala engage in a friendly spear-tossing contest, aiming at a point where two wooden beams meet in the ceiling.2 Honor, and its attendant condition, fame, are also important to heroes across time. In Greek culture, the winner of a competition would receive "public acknowledgment of his superioritymarked by material tributes and gifts."3 This could take the form of gifts of land, sitting in honored seats, being given the best cuts of meat at feasts, among other honors. The central conflict between Achilles and Agamemnon at the beginning of Iliad is related to the king's prerogative to select the booty from a particular battle. At first, Agamemnon does not want to give back the Chryseis, the priest's daughter that he brought back from their previous war. Once Apollo's command becomes clear, however, Agamemnon gives her back, but only after taking Achilles' new prize, Briseis, from his tent. Achilles' anger over this lack of respect keeps him from fighting with the rest of the Greeks against Troy until Patroklos dons Achilles' armor and is slain in battle, and so the importance of honor and respe ct to the

Critically evaluate the claim that culture is best understood as a system of symbolic classification Essay Example for Free

Critically evaluate the claim that culture is best understood as a system of symbolic classification Essay Introduction                      This essay will focus on evaluating the claim that culture is perfectly understood as a symbolic classification system. Culture can be defined as cumulative deposit of beliefs, attitudes, knowledge, values, experience, roles, meanings, spatial relations, hierarchies, notions of time, possessions and material objects obtained by a group of individuals in the course of the generations through group and individual thriving. Culture involves patterns implicit and explicit, for and of behavior obtained and conveyed through symbols, representing the unique achievement of the human groups, comprising of their personifications in artifacts; the fundamental core of culture include the traditional ideas and particularly their emotionally involved values; culture systems on the other hand may be deemed as products of action. A symbol refers to any object, usually material, meant to stand for another, even though there is no significant relationship. Typically culture is founded on a shared set of meanings and symbols. Symbolic culture allows human communication and therefore must be taught. The symbolic culture is more adaptable and malleable than biological evolution. Humans subconsciously and consciously, strive always in making logic of their surrounding world. Some symbols like objects, words, gestures and signs assist individuals in understanding the world. Usually symbols offer clues in understanding the experiences. They usually express familiar meanings which are shared by the societies. Uniform and badge held by police officers represent symbols of law or authority enforcement. When an officer is seen wearing a uniform or in a squad car enhances reassurance in man citizens, and anger, fear, or annoyance among others (Browne et al, 1990, p38-p42). The world has countless symbols. Company logos, traffic signs and sports uniforms are some of the symbols. A gold sign in some cultures symbolizes marriage. There are some symbols which are very functional; for example, stop signs offers valuable instruction. They belong to the material culture since they are physical objects, however they function like symbols, in addition they pass on nonmaterial cultural meanings. Some of the symbols are only helpful in what they signify. Gold medals, trophies and blue ribbons, for instance, provide no other function other than representing the accomplishments. However numerous objects have both nonmaterial and material symbolic value. Symbols are usually taken for granted easily. Few individuals challenge or even consider sticking the figure signs on the public bathrooms’ doors. However those figures signs are more than being mere symbols which informs women and men which bathrooms they are supposed to use. Also they uphold the value, in U SA, that restrooms ought to be gender exclusive. Even if stalls are comparatively private, most places do not offer bathrooms that are unisex (Hoijer, 1954, p. 14). Symbols frequently get recognized when used out of context. Symbols express strong messages and are used unconventionally. Even destruction of symbols is perceived to be symbolic. Effigies signifying public figures are beaten so as to express anger at particular leaders. Crowds in 1989 tore down Berlin wall a symbols which decades-old of the division between West and East, capitalism and communism. While diverse cultures have different systems of symbols however language is common to all. Language refers to a symbolic system by which individuals’ converse and through which the culture is spread. Various languages include a system of symbols utilized for written communication, whereas others rely on nonverbal actions and spoken communication. Societies regularly share one language, and a lot of languages have the same fundamental components. An alphabet refers to a written system which is made of symbolic shapes which refer to sound which is spoken. These symbols taken together , express definite meanings. English alphabet employs a mixture of 26 letters in order to create words; where these 26 letters create over 600,000 English words which are recognized (Smith, 2001, p. 46). Case study 1                      Additionally, through using language, individuals’ converse without using words. The communication which is nonverbal is symbolic, and, similar to the case of language, a lot of it is learned by the individual’s culture. Various signals are almost universal: crying regularly represents sadness and smiles frequently signify joy. Additional nonverbal symbols differ across the cultural backgrounds in their meaning. For instance, a thumbs-up symbol in the United States shows positive support, while in Australia and Russia, it signifies an offensive curse. Various gestures differ in meaning depending with the individual and the situation. A symbol of waving the hand can represent numerous things, considering for whom it is done and how it’s done. It may signify â€Å"no thank you,† â€Å"hello,† or â€Å"I’m royalty,† or â€Å"goodbye.† Winks express a range of messages, comprising of â€Å"Iâ€⠄¢m only kidding,† or â€Å"I’m attracted to you,† Or â€Å"We have a secret.† From a distance, an individual can comprehend the emotional idea of two individuals in conversation just through examining their facial expressions and body language. Folded arms and Furrowed brows signify a serious topic, perhaps a disagreement. Smiles, with arms open and heads lifted, imply a cheerful, friendly conversation (Durkheim, 2003, p. 41). Case study two                      Even though language is possibly the most apparent system of symbols that used in communication, numerous things we do express a symbolic meaning. For instance, of the way individuals dress and what it signifies to other individuals. The manner in which a person dress symbolically communicates to other people if that individual care about academics or if he or she is a fan of their schools football group, or it might converse that the individual is a fan of punk music or has adopted an anarchist philosophy. In various urban settings, the symbolic meaning of individuals clothes can signify gang connection. Other gang associates use these symbolic sartorial signs to identify allies or enemies. Anthropologists argues that, through their evolution course, individuals evolved a universal individual capacity to categorize experiences, as well as encoding and communicating them symbolically, like with language which is written. Due to the fact that symboli c systems were learned as well as being taught, they started developing independently of the biological evolution. Since this capacity for social learning and symbolic thinking is a human evolution product confuses older arguments regarding nurture versus nature. This view of culture shows that individuals who live away from each other begin develops distinct cultures. Basics of different cultures, but, can spread easily from one group of individuals to another. Belief that culture is coded symbolically and can, consequently, can be taught from one individual to another, meaning that cultures can change even if they are bounded. Culture is dynamic can be learned and taught, which makes it a rapid adaption form potentially to variations in the physical conditions. Anthropologists usually view culture both as supplement and product of the biological evolution; culture can be perceived as the core means of human version to the world which is natural (Middleton, 2002, p.16). The above view of culture as symbolic system with the adaptive functions varying from one place to another, made the anthropologists to conceive of various cultures as described through different structures or patterns of continuing conventional meaning sets. These meanings took solid form in diversity of artifacts like rituals and myths, tools, well as the planning of villages and the design of housing. Anthropologists differentiate between symbolic culture and material culture, not only since each signifies distinct types of human activity, however also because they comprise of different forms of data that necessitate dissimilar methodologies to study. The culture sociology relates to culture since it is evident in the society: the ways of acting, the ways of thinking and the material objects that collectively shape the individual’s way of life. In regard to Max Weber, the symbols are very essential features of culture: individuals employ symbols to convey their spirituality as well as the spiritual side of actual events, and perfect interests are obtained from the symbols (Smith, 2001, p.21-24). In accordance with the sociologists, symbols composes one of the five essential basics of culture, the others being norms, values, language and beliefs. Symbolic anthropology perceives culture as independent system of meaning decoded through interpreting the key rituals and symbols (Werness, 2000, p.37). In conclusion, it is evident that culture is as set of symbolic classifications, referred to as a group of symbols which can prearranged into a paradigmatic set, frequently hierarchical. These systems of classifications show a world view or tribal order. Languages are constituted of the systems of classifications like grammars. Grammars classify number, person and time. Cultures consist of unconscious classifications which include relatives, plants, colors and animals. References Browne, R. B., Fishwick, M. W., Browne, K. O. (1990). Dominant symbols in popular culture. Bowling Green, Ohio: Bowling Green State University Popular Press. Durkheim, E. (2003). Emile Durkheim sociologist of modernity. Malden, MA: Blackwell Pub..Hoijer, H. (1954). Language in culture: conference on the interrelations of language and other aspects of culture. Chicago: University of Chicago Press. Middleton, J. (2002). Culture. Oxford, U.K.: Capstone Pub..Smith, P. (2001). Cultural theory: cn introduction. Malden, Mass.: Blackwell :. Werness, H. B. (2000). The Continuum encyclopedia of native art: worldview, symbolism, and culture in Africa, Oceania, and native North America. New York: Continuum. Source document

Employee Motivation And Organisational Performance Commerce Essay

Employee Motivation And Organisational Performance Commerce Essay As the hospitality industry keeps on growing, the competition has turned into a battle now. During this tough time it is very pragmatic to hold on to our loyal guest even though there is a ceaseless change in the organization. To overcome this challenge of holding our loyal customers and to keep on attracting new guests, it is very important that the employees are highly motivated. This research critically analyses the factors affecting the motivation of the employees in an organization, it evaluates the effects on the performance of the organization due to motivated employees. It suggests a relationship between the employee motivation and the organizational performance. The research was carried out by taking interviews of the employees as well as the executive member of the hotel in order to get hold of perspective of both the sides. The important factors have been acknowledged and critical analysis has been done. The findings of the research exhibits that the organisation is constantly doing well but there is always a scope of improvement. It also gives the recommendation to improve the organizational performance by motivating the employees. 1 .INTRODUCTION When we think of the term hospitality, different things come in our mind. The first thing what we can think of is hotels. Many people also think about the famous pineapple which held an important part in history when it came to the term hospitality. Hospitality word comes from Latin language i.e.hospitalitem, hospes, and hostis (friendliness to guests) mean to welcome with warmth and care. Hospital also comes from the same source with the concept of caring about human beings who are ill and who want care, support and love. When we speak about hospitality we talk about guests and not customers, as the word guest brings out the full dimension of hospitality and in real terms. The word customer appears less welcoming and it focuses on financial transaction. In hospitality industry we need to greet our guests with a warm and genuine welcome. In order to achieve this we need to create a surrounding which is totally different from outside world. We are talking about warm and hospitable sur rounding with a prompt, pragmatic and professionally delivered service which requires employees who are willing to deliver it. Now the word service comes Latin word servitium meaning act of serving, demonstrates a creative and incorporating function with many shades and intricacies. The meaning of hospitality and service are almost intertwined, it can also be said that if hospitality is strategy than service is tactics. (Sturman et al., 2011). Now in this ever growing hospitality industry, consumer expectation and demands for quality in increasing and consumer tastes is varying on the other hand. To deliver service in this cut throat competition internationally and nationally is very difficult and it requires highly motivated staff. Customer loyalty is another big issue in todays hospitality industry, in order to overcome this issue there has to efficient, motivated staff. Employee motivation is by far the most serious issues in any of the organisation. It is very important to understand and use the motivation technique for managing the people in hospitality industry. Furthermore, customer satisfaction is highly affected by customers perception of employees effort. (Mohr and Bitner, 1995 cites in Kusluvan, 2003.p.339) and effort is what motivation is about. There has been tremendous amount of research done for different employee motivational theories which are conducted outside hospitality industry. Many empirical studies which are done in past on motivational theories have somewhat failed to show the direct linkage between employee motivation and organisational performance. It has been always said that employees are the biggest asset for any organisation and there has been efforts to motivate them without knowing the exact factor that is behind the employee dissatisfaction. To improve any organisations performance three things are very necessary which are productivity, labour efficiency and staff turnover. This is quite evident that if the employee is happy and motivated then the productivity is going to increase by itself. If the employees are happy then loyalty towards the firm increases and it ensues less staff turnover and higher labour efficiency. This research will review the empirical studies done by other researchers on employee motivation and will integrate all the theories and hypothesis in one discussion. The author will also establish a direct linkage that how employee motivation affects organisations performance, how employee motivation helps in increasing loyalty towards the organisation. 1.1 AIM OF THE RESEARCH The aim of the research is to study the relationship between the motivation of the employees and organizational performance. 1.2 OBJECTIVES To critically analyse the employee motivational factors affecting the growth of an organization. To study the relationship between the motivation and organizational performance. To critically evaluate the interpersonal relationship and effects of communication on the level of motivation of employees in West India quay Marriott. To suggest recommendations based on the research and analysis in order to increase the motivation of employees and hence the productivity of an organisation. 2 .LITERATURE REVIEW In order to become good in anything, the only talent you need is motivation Charles de Gaulle. Literature review gives a proper framework to evaluate and critically analyse the various motivational theories and conceptual models which are necessary for the operational functioning of an organization. It relates to various working models of motivational theory used by the organization to keep their employees motivated and increase the productivity of the organization. It is very necessary to understand that the motivational level of the employees working in a particular organization should be on optimum level because of this ever changing dynamics and structure of the hospitality sector. A detailed critical evaluation of the various motivational theory and many empirical research done recently is been carried out by the author, so that a proper understanding of steps which are necessary to launch a proper motivational program for the employees is fulfilled. 2.1 MOTIVATION CONCEPT Its very difficult to give an exact definition of motivation because it varies from individual to individual and culture to culture. The word motivation derives from the Latin verb movere and means to move (Pintrich Shunk, 2002, p.5. cited in Lins (2005).According to Pintrich schunk, the motivation refers to the process whereby goal-directed activity is instigated and sustained (2002.p.5).The term motivation is like a force which moves arouse and direct people. Work motivation therefore refers to a personal desire to work hard and work well to the arousal, direction, and persistence of effort in work settings (Rainey, 2009, p.248.cites in Vellnagel, 2012).Motivation can be referred to as the willingness to exert maximum level of efforts toward organizational goals, conditioned by the efforts ability to satisfy some individual need (Robbins, 1993, cites in Jang, 2008, p.17). Motivation is defined as the direction and persistence of actions (Mullins, 1992 cites in Jang, 2008, p.17).Mullins also states that the motivation is the driving force which drives an individual towards certain goals and expectation. Now the term motivation is explained by various people in the past like Abraham Maslows in his motivation hierarchy, Hertzbergs concept of intrinsic and extrinsic motivating factors. Maslow (1943) explains in his theory that every human being has five needs which are in hierarchy. Hertzberg (1966) critically analyses in his motivation hygiene theory that there are two factors affecting the individuals satisfaction or dissatisfaction with work. Employee motivation research is done by many people to name few of them are Charles and Marshall (1992) and Simon and Enz (1995) but kovachs instrument is the most comprehensively used for all the employee motivation studies. According to Kovach there are ten factors affecting motivation of the employees when he c onducted a study consisting of ten industrial workers in United States, which are as follows: Good wages. Tactful obedience. Job security. Appreciation and praise for work done. Feeling of being involved. Sympathetic help with personal problems and opportunities for growth and advancement. Good working conditions. Personal loyalty to employee. Interesting work. (Kovach.1980, 1987) Kovach in his long study between 1946 and 1986, found a very slow changes of industrial workers wants and needs. For example, higher ranked appreciation and praise was replaced by interesting work. Also it was seen that good wages was always ranked 5th among the ten factors which shows that good wages may not be the most important factor what the employees are seeking when it comes to job. The following changes were based upon the general improvement of Americans standards of living and quality of life. Thereafter Charles and Marshall(1992) simulated Kovachs study among 255 employees of seven Caribbean hotels and the study showed very different results compare to what Kovachs result was. The result showed that the two most important factors of job motivation were good wages and good working conditions. These findings were supported by Simon and Enz (1995), who conducted a survey among 278 hotel employees in different hotels located in United States and Canada. Simon and Enz study showed that good wages, job security and growth were the three most highly ranked factors for job motivation among hospitality employees. These studies can be related to Maslows hierarchical theory of motivation where it is critically analysed that the human behaviour is affected by five needs system in which the most primitive or the basic one is at the bottom of the pyramid and accordingly promotes itself to the most mature one .The five needs of the human being in the Maslows pyramid are as follows Being needs Deficit needs (Created by author Adapted from Maslow 1954) 2.2 EMPLOYEE SATISFACTION The definition of employee satisfaction can be either an overall feeling about the job, or as a linked set of approaches about various aspects of the job (Spector, 1997). Locke (1976) defined employee satisfaction as a satisfying or optimistic emotional state resulting from the appraisal of ones job or job experience. Levy -Garboua and Mont Marquette (2004) defined employee satisfaction as a guide of preference for the experienced job against outside opportunities qualified on information available at time. A comparison is made in the given definition between the real job experience in the past and the mental experience of outside opportunities available. It also contains the comparison between future expectations of own job and outside opportunities in the future(Levy-Garboua et al.,2007).Employee satisfaction is an important variable which gives a general preview of the employees attitude towards their job and workplace. Hence employee satisfaction is the expectations of an employe e about workplace and attitude towards his job. As a result, job satisfaction is a function of the extent to which ones needs are satisfied in a job (Togia et al., 2004).Considering the different definition of employee satisfaction author argues that expectation can vary from employee to employee from monetary gains to career advancement. Depending upon the needs of the employees, organisations carry out the motivational training program. In this modern time various hospitality industry are concentrating more on HRM i.e. Human Resource Management. Different HRM policies consist of various techniques. In one of the similar research carried out in UK comprising of four organisations showed the link between employees perception of these high commitment performance management practices by HRM and their commitment towards an organisation. The research carried out in UK consisted of 524 questionnaire responses collected from four organisations. The findings in the research clearly posit t hat there is a strong relationship between employee perception on HRM practices and their commitment towards the organisation. The performance of the employee is elevated when there is a trust on HRM policies and employee pursue it as fair (Farndale et al., 2011p.16).HCPM (high commitment performance management) practices achieve their goal of higher commitment provided the practices followed are perceived to be fair by the employees which in turn benefits the overall performance of the organisations (Dirk And Ferrin, 2001 cites in Farndale et al., 2011 p.16). HCWPs should therefore include performance management elements which allow employee engagement (Gardner et al., 2001 cites in Farndale et al., 2011 p.16) and prospects for development, but it also needs to be made on procedures and interactions that are considered fair by employees. Now, the author would like to add that since employees make most important aspect of any organisation, so definitely all the HRM practices put for ward should be benefiting the employees rather than just profitability of the organisation. Having said that, HRM practices should also be pragmatic enough to avoid overdoing of any procedures or practices. The core Motivational idea related with HRM performance research is simple and intuitive. If the people enjoy the work they are given and they do the work with full of their abilities and work harder, they will be motivated to perform at a higher level when given the opportunity to do challenging and enjoyable work. Employees want challenge and personal growth (Walton, 1972.p.71 cites in White and Bryson, 2011.p.4). McDuffie (1995, p.201 cites in White and Bryson, 2011.p.4) argues that employees will only offer discretionary effort if they believe, among other things, that the company will make reciprocal investment in their well-being. Furthermore, another author Appelbaum et al.(2000.p.46 cites in White and Bryson,2011.p.2) posits Jobs that are challenging and make use of worke rs skills are intrinsically rewarding. As HRM is designed to provide jobs that are more satisfying and involving for employees it is natural to assume linear increments in motivation as with Appelbaum et al. (2000.p.46).But authors like Becker and Huselid (2006) and McDuffie (1995) put forward views which are contradictory and they said at after certain level of threshold point the motivation of employees follows a non-linear effects. A contrary view adopted by Marxian labour process theorists is that HRM implies labour escalation and that can have negative incremental effects (eg.Ramsay et al.2000 cites in White and Bryson, 2011.p.3).Finally there is the non-linear model of Godard (2001) where HRM initially has positive effects but at later stages turns negative at high levels of implementation due to work strain. Here author argues that although HRM practices are very much necessary for any organisation and in order to reap profitable results it should strongly signal employees. H RM practices should not be confined to only on specific opportunities for employee participation and personal development but also whether the HRM practices helps in total transformative development that conjures employee identification. 2.3 FACTORS AFFECTING EMPLOYEE MOTIVATION As we saw in research done by Kovach, Charles and Marshall, Simon and Enz that there are many factors which affect employee motivation and satisfaction. These factors keep on changing depending upon the needs of the employees at different time. As Maslow in his famous theory said that the human needs are divided into five basic needs. Then Herzberg came up with dual factor theory stating that man has two sets of needs one of an animal to avoid pain and another of a human to grow psychologically. During all these after much empirical research it has been found that there are many factors which affect employee motivation. In order to measure job satisfaction and motivation of an employee, its very important to measure different facets of the job which is generating employee motivation. Now, Facets of job satisfaction can involve any aspect of the job such as pay, colleagues, supervisors, organisational factors and work conditions (Coomber and Barriball, 2007 cites in Akman et al., 2011 p.677). Pearson (1991 cites in Akman et al., suggests that the employees wait for their job to provide a combination of features (e.g. pay, promotion and autonomy) for which the employee has certain favourable values. Furthermore, while discussing the factors Luthans (1992 cites in Akman, 2011.p.677) posits five factors which affects the employee motivation. These factors are pay, job characteristics, working conditions, management politics and working colleagues. While pay was considered as external factor by Luthans (1992) other factors like job characteristics have been defined as internal factors (Rose, 2003 cites in Akman, 2011.p.677). Mcafee et al., (1995 cites in Akman 2011.p.677) investigated effects of discretion, result feedback and process feedback on employee job motivation. It was found that only discretion and result outcome doesnt affect employee job motivation but it is very necessary to give them process outcome also. Drummond and Stoddard (1991 cites in Akman 2011 .p.678) add to the discussion that employee satisfaction contains an evaluation of various features of the job. These characteristics are working conditions, pay, and relationships with colleagues and supervisor, organisational policies and nature of the work itself. When talking about characteristics of job like working hours, It has been proven in the research that employees who get flexible working hours are more happier and content and they give back more to the organisation. Berg et al., and Dockery (2004,2005 respectively cites in Atkinson and Hall,2011.p.101) posits that flexible working hours helps to promote active states such as being pleased and cheerful because they feel that they are treated well. It also helps to generate passive state which reflects in feelings like contentment and calm, since there is reduction of work-life stress and this all was possible because of flexible hours provided to the employees. Furthermore author adds to the discussion that if the employees are happy, it shows in the overall productivity of an organisation. Basically it is a two way effect if the employee feels that they are taken care of by the organ isation, employees tend to reciprocate this gesture by generating revenue or profit. Management has to create trust among the employees which is another factor that is important for employee motivation. Various people investigated about employee motivation and job satisfaction and among one of them were Kazemzadeh and Bashiri (2005 cited in Akman et al., 2011.p.678) who identified ten main groups which are as follows: Management and personnel relationship. Relation between employees. Employees job satisfaction. Education. Wage and salary. Other welfare facilities. Employees commitment. Job promotion. Performance. Organisations systems and processes. Another author named Bodur (2002 cites in Akman et al., 2011.p.678) suggested that work content, age, gender, educational level, working conditions, location (rural or urban), co-workers, salary and working hours are some of the factors related to job motivation and satisfaction.Kuo et al.,(2010) cites in Akman et al., (2011,p.678) that both job characteristics and employee empowerment are important factor in order to maintain high employee commitment and loyalty towards the organisation. Taking the research even further Jun et al., (2006) investigated direct and indirect relationships among top management commitment, HR-focused TQM practices, and employee satisfaction and employee loyalty. They found a strong relationship between TQM practices and job satisfaction loyalty. Author would like to add further that factors affecting employee motivation can differ from employee to employee depending upon their needs and desires. For e.g. one employee is looking for monetary gains then mon ey will be motivating factor for him and if another employee who is looking for career advancement then promotion and rewards, recognition will be motivating factor for him. 2.4 RELATIONSHIP BETWEEN EMPLOYEE MOTIVATION AND LOYALTY TOWARDS ORGANISATION Loyalty is an emotional state it signifies the relationship of an employee with the organisation for which they work and that has implications for their decision to remain with the organisation (Allen and Grisaffe, 2001 cites in Akman et al., 2011.p.682).According to another definition loyalty means as attachment to the organisation specially when one is having strong believes in organisational goals and values and has a strong desire to maintain membership of the organisation. Furthermore Becker et al., (1995) defined loyalty in Akman et al., (2011.p.682) as a strong desire to be a part of the organisation and put high levels of effort for the sake of an organisation and definite belief in the goals and values of the organisation. Thus, loyalty is strong belief in goals and values and a desire to be a part of the organisation. Chen (2006) cites in Akman et al., 2011.p.682) that while job motivation represents an effective response to specific features of the job with proper attitude, employee loyalty is in effective response to the whole organisation. Furthermore, empirical evidence suggests that employee motivation and satisfaction are precursor to organisational loyalty of employees. This suggests that organisational loyalty of employees develop from job satisfaction and motivation and which nullifies the effects of staff turnover. Also, author will like to add to the discussion that loyal employees help in organisations growth as they believe in goals and values of the organisation. This also reduces the staff turnover issue leading to high profitability by saving money on recruitment and training of staff. 2.5 LINKAGE BETWEEN EMPLOYEE MOTIVATION AND ORGANISATIONAL PERFORMANCE For any organisation its employees are the major assets to look for. Employees are the people who help the organisation grow in terms of profitability and revenue. In order to keep the employees motivated HR has a major part to play. One of the first empirical studies carried out to show the linkage between Employee motivation by HR and organisational performance was done by Arthur (1994). Arthur in his study posits that the explicit sets of HR policies, practices and systems that were designed to enhance the employee commitment (e.g. empowerment, due process, high wages and benefits, etc.) was linked to three proficiency measures of firm performance (i.e. productivity, labour efficiency and staff turnover).A similar study was carried out by Huselid (1995) a year later which showed a similar sets of 13 of HR practices known as high performance work system, was related to both efficiency (i.e. employee turnover) and financial measures (i.e. sales, profit, and market value) of firm per formance. There were many studies which were carried out after that which highlighted the important relationship between employee motivation by HR and firms performance. Furthermore author adds to the discussion that although initially efforts broadened the understanding of about this important relationship, a number of scholars challenged the authenticity of the research. One of the most commonly voiced concerns was that most of the research till date used cross sectional research design (Gerhart et al., 2000 cites in Tracey, 2012. p.910). But research has proved that the relationship between employee motivation and firms performance cant be denied. As one the studies carried out by White and Bryson (2011) posits that if the employees believe in the HR policies and practices they feel motivated and it reflects in their work which leads to higher productivity. 2.6 DIFFERENT MOTIVATIONAL THEORIES USED IN HOSPITALITY SECTOR There are several motivational theories which are used in hospitality sector to improve the employee motivation. Author has briefly evaluated few of them in the below tree diagram. (Created by author adapted from Vellnagel 2012) Furthermore, the difference between the content theory and the process theory is that content theories focuses on factors which leads the individual feel motivated within inside whereas process theories concentrates on the dynamics of motivation and how it takes place. Content theory consists of: Maslows needs of hierarchy theory. Hertzbergs two factor theory. Achievement motivation theory. ERG theory. Process theory consists of: Vrooms Expectancy theory. Goal setting theory. Adams Equity theory. Porters Performance Satisfaction Model. As the concept of motivation is very broad and since it would go beyond his scope of work author has liked to discuss and analyse only selected theories of motivation in the research. 2.6.1 CONTENT THEORIES The content theories supposed that all the individuals have same sets of needs (Fincham, Rhodes: 2005 cited in Vellnagel 2012).They gave importance to the reasons for motivated behaviour (Tosi, Mero, Rizzo: 2000, p.129) of individuals. The most famous of all the content theories are Maslows hierarchy of needs(1943),Hertzberg two factor theory(1959),the job characteristics approach(Hackman,Oldham:1980) and McClellands achievement power theory(1961). 1. Maslows Hierarchy of needs theory The most simple and well known motivational theory was put forth by Humanistically oriented psychologist Abraham Maslow (Arnold et al, 2005.cited in Vellnagel 2012).In 1943 Maslow put proposed a theory of humans function namely according to the sequential hierarchical order of the development of five basic needs (Latham, 2007. cited in Vellnagel 2012).According to Maslow if any of these needs are fulfilled then the individual goes on to fulfil the other needs. If the all the needs are satisfied then the level of motivation goes down. 2. Hertzbergs two factor theory In 1959, Hertzberg proposed a theory on his findings that the man has two set of needs, one of an animal to avoid pain and the other of a human to grow psychologically. These findings led him to put forth a dual theory of motivation which is being used for management training and work motivation program worldwide. This theory critically analyses the factors which makes the employee feel happy at work and leads to job motivation and these factors were called motivators for obvious reason. These motivators are intrinsic factors which are directly affecting the inner feelings and self-esteem of the employees (e.g. Career advancement, achievement, work itself, responsibility, job growth).On the other hand factors which lead to job dissatisfaction are extrinsic factors and are related to external working conditions, relationship with colleagues and supervisors, wages, personal life and these are called hygiene factors. (House, R.Wigdor, L.2006) 2.6.2 PROCESS THEORIES The process theory aims at the identification of relationships among dynamic variables which make up motivation (Mullins, 2001.p.237).They look at mental processes which cause the motivation in an individual. The process theory is all about how behaviour is being created. There are various classical process theory like Adams Equity theory (1963), Expectancy theory by Vroom (1964), Lathams and Lockes goal setting theory (1984). 1. Adams equity theory An American behavioural psychologist named John Stacey Adams, proposed the Equity Theory in 1963 which is possibly the most readily understandable psychological process(Riley,2000.p.26 cited in Vellnagel,2012).Equity theory aims at an individual feelings of how fairly he has been treated in comparison to others. According to this theory people develop a belief of what is fair reward for ones job contribution that is an exchange. Most exchanges involve a number of inputs and outcomes. People compare the exchanges with their employer to exchanges with other insiders and outsiders. If an employee then believes that he is unfairly treated then he will seek justice. 2. Vroom expectancy theory A sophisticated theory of motivation was put forth by Victor Vroom in 1964 and it focuses on the concept of expectancy (Van der Wagen, Davies.1998, p.31 cited in Vellnagel.2012).Instead of aiming on the factors of work which maintain and energize behaviour (Latham, 2007.p.44 cited in Vellnagel, 2012).The theory was inspired on thoughts that a individuals activity leads to a certain behaviour and then this behaviour leads to a certain result. Vrooms theory consist of three variables which are expectancy(E),instrumentality(I) and valence(V) due to which it is also called as the valence-instrumentality-expectancy theory. Both expectancy and instrumentality are possibilities or probabilities. It is about what the individuals estimates to be the likelihood of good performance leading to valued rewards, and of effort leading to good performance. The product of the three variables equals the force (F) of an individuals motivation to perform. Therefore F=E*I*V FINDINGS In order to find the research study satisfactory an overall practical approach of all the four motivational theories should be considered. Maslows theory was one of the basic motivational theories but it was also one of the most criticised theories. The reason was because it was vague and didnt predict behaviour; also it was based upon the socio-philosophical approach reflecting only middle class of white Americans from mid twentieth century (Buchanan,H,2010.p.269).It should also be noted that even though Maslows theory was criticised but this theory has huge influence on todays management practice. The two factors theory put forth by Hertzberg was another motivational theory which was not spared from criticism. Its believed that there might be a gap between what people think motivates them and what actually motivates them. People could relate their success to their personal efforts and blame people or the organization for the failure. However, the two factors theory describes the employees needs and also the rise in motivational level after the redesigned job (Fincham, R.2005.p.200). The two process theory are good but not good enough. The best Adams equity theory is best when comparing salaries. As it is well known fact that money can be measured but education. Knowledge, training and effort are not measurable. Same can be said about the Vrooms theory of expectancy, after a critical analysis its been found that Vroom theory is a nice mathematical approach but when it comes to identifying and quantifying the expectancy of a certain motivation to a task, it is becomes very complicated and also the practical approach is very low (Fincham,R.2005.p.209 et seq.) 3. METHODOLOGY 3.1 Introduction This part of the research concentrates on the methods that need to be adopted in order to conduct the research. Research can be defined as the systematic approach of seeking solutions towards a problem. Research comprises of investigation, recording and analysis of evidence for the sole purpose of gaining knowledge. Every research has this issue of choosing the most appropriate method so that the objectives