Examination the present strategic position of the multibillion British Essay

Examination the present strategic position of the multibillion British Petroleum (BP) plc Oil Company - Essay Example Introduction Business ethics refers to the moral guidelines that govern business practices at the workplace, and these are the universally accepted principles that are expected of each business. In the contemporary business world, the concept of business ethics has gradually been popularised and it is now a buzzword all over the world. Many firms around the world today are not only concerned with making profits and meeting fiduciary responsibilities to shareholders and consumers, but also showing corporate responsibility (Dirks 2001). There is a proven parallelism between profits and Social Corporate Responsibility, with studies showing that CSR improves profits (Robins 2011). In today’s highly competitive global capital, labour and financial markets, companies in the system cannot afford to be totally unresponsive to ethical issues and concerns. In such a system, that is highly conscious corporate responsiveness, businesses have no choice but to advertently demonstrate their commitment to ethical issues in society. This paper aims at examining the business ethics and Corporate Social Responsibility (CSR) of the multibillion British Petroleum (B.P) Company that is involved in oil and alternative energy. This analysis will endeavour to determine among other things, the ethical practices of the company, and its corporate responsiveness; in other words, is B.P an ethical firm? A vast company of global influence such as BP is obliged to cautiously apply strategic managerial approaches in promotion of global business ethics in industrial sectors. This analysis is important because it will it will raise an awareness about BP’s business ethics and Corporate Social Responsibility, and more importantly, it will establish a relevant knowledge base for future direction to all the stakeholders involved in the oil business around the world. The paper will first outline BP’s business ethics and Corporate Social Responsibility strategies, and thereafter, a detailed analysis of these approaches will be carried out in the next section using PESTLE and Carroll's (1991) CSR pyramid models. This analysis will determine how sustainable the company with respect to the 3Ps (People, Planet, Profit) or Elkington’s (1998) Triple Bottom Line (socio- and environmental goals as well as the profit bottom line). Ultimately, after the report has been concluded, what shall follow will be a set of recommendations for the company with regards to its future business ethics and Corporate Social Responsibility strategies. BP’s Strategic Management BP is one of the world’s leading oil companies that majors in exploration, production, refining and marketing of petroleum oil products, including natural gas (Warren 2012). This makes BP Oil company one of the world’s companies that are hugely involved with the use of fossil fuels responsible for major global environmental challenges in the 21st century (Mallenbaker 2012). This has f orced the company to restructure its operations while stating its obligations and commitment to the creation of a stable and sustainable society. In this

Organizational Behavior---Individual Assignment Instruction Essay

Organizational Behavior---Individual Assignment Instruction - Essay Example An example of an organizational conflict that I witnessed was in a company that I worked part time during the last summer. In this organization, Faith, the chief engineer in charge of new product development brought a list of items to George, the procurement officer for purchase. However, George failed to sanction the purchase claiming that the products were too expensive and did not meet the cost cutting threshold that had been imposed by the organization. However, faith believed that George did not have trust in her abilities and hence the reason why he was constantly fighting her anytime a new spare needed to be purchased. To resolve this conflict, the business unit vice president ordered the two to report to the same executive who would evaluate the purchase orders in terms of cost-effectiveness and quality. This change of structure aligned the hitherto incompatible goals. In the case of the conflict between George and Faith, it was resolved by altering the organizational structure to fit the two parties. However, I have realized that in most cases most of the organizational conflict happens in teams. Wherever such conflict happens, the easiest solution would be to change the group composition. However, there are other times when the conflict is as a result of varying styles and values among team members. Naturally, when that occurs, the first thing that comes to the leaders mind is to replace the team members that do not agree with the styles or preferences of the teams. Over the years, I have observed that removing some people from the team may not always be possible since their skills might be needed or there might not be an available replacement for them. In the event that this happens, the most sensible way to mitigate such conflict is through focusing the team’s attention on a common enemy such as the competition. When people or even departments are taught on how to focus their attention on the enemies facing them instead of

Current Education System Impact on Creativity

Current Education System Impact on Creativity Abstract This paper discusses how the current system education in Latin America kills creativity. The paper explains that standard test need to be reorganized and how the system would improve. Then it will show how free time is important for each student to have better knowledge. Finally, you will find how is the methodology of the system to reflect on the path we are following. Also along the paper there are some comments to solve the problem because that problem is affecting childhood. Keywords: Current educational system, creativity, students , methodology, childhood. The current education system kills creativity Does every person have the same opportunities in the current education system? The answer is clear No. Nowadays the current education system is based on a few important subjects such as maths, science and language but it does not focus on people who like to dance or sing. In the article The case for disruption in Latin Americans classrooms (Segan, 2016), Susan says that many schools in Latin America continue to use antiquated models for education. For many years education system in those developing countries has not had a great change, even though humans are developing every moment; our cars improved, our computers improved, and our engines improved. However, in the article Inteligencias Mà ºltiples: La teorà ­a en la prà ¡ctica. (Howard), Gardner suggest that we have been used this education system since industrial revolution. In those days this system worked because the world necessities only consisted on memorizing or following instructions. This education system uses those old techniques such as memorization but in todays world skills such as creativity, imagination, and innovation are needed. Gardner also suggests that there is more than only one intelligence so why does education system only focus on some of them? We have different ways to learn, create, and innovate so we cannot keep on using this system. Each person is different and unique so the system cannot judge us equal. Also, the world has changed since the industrial revolution and our necessities have changed too. Now we have many people without work because the system does not prepare them for new labour requirements because the world need more people who can solve problems. On top of that the current educational system believes that some subjects are more important than others such as math and dance but nothing farther than the truth because a dancer can create and innovate with his/her body. However we sometimes think that a mathematic or a logic person only has theoretical knowledge and c annot apply that kind of knowledge in real life, but that is not true in all cases. However the current system education guides us to think in a unique way. For those reasons by me there are 3 issues with the current system education that kills creativity. Standard test are not suitable for all students First of all, standardized tests are one of the biggest problems in the education system. In the article Inteligencias Mà ºltiples: La teorà ­a en la prà ¡ctica. (Howard) , the author says that there are several different intelligent. Based on this information in my view standard test is not a good way to evaluate a students progress. Standardized test are based on questions to benefit certain people with specific skills. For example, in Ecuador there is an exam called ENES which benefit people who have logical and linguistic intelligence. However, people who do not have those skills cannot pass this exam so they believe that they are not able to study anything. Those exams are created to benefit specific skills such as the ability to calculate math problems or create and solve equations. However, in the article The case for disruption in Latin Americans classrooms (20 May 2016), Susan Segal says that the way students learn and what they need to learn is rapidly changing so the ma in problem is Can a unique exam apply to everyone? According to Gardner there are different intelligent, skills and necessities so those kinds of exams do not work because each person has different skills and necessities. By the contrast this kind of test judges everyone as equals. Another issue is that a test takes a lot of time to be answered and is exhausting for students. People who control educational system should change test methodology and try to make them less stressful. With this in mind if tests were more practical, students would increase their knowledge faster and they would develop new important abilities. For example, with a test is difficult to value the real awareness. By the contrast by creating projects would be better to evaluate each student. By creating projects students develop skills such as to resolve real problems, create new ideas or improve leadership. In science, we dont begin by knowing the answer-we value the process ¨ (Ossola, 2014). That shows us that sometimes we need to move our hands to learn better. If we do not make the process we will have knowledge but we would not be able to apply that knowledge in the real world. One solution for this problem would be to decrease the number of tests and increase the number of pro jects but tests could be more practical because now there are a lot of tests that only exploit our ability to memorize. At the present time our world is more competitive and big ideas are required to improve our world. In this way test should be related to take advantage of those skills and guide us to use them to resolve real problems. Time should be better spent Secondly, the lack of free time for students is another problem in the current education system. Time is important for every one because we can use it on different things such as relaxing, doing homework, playing or whatever we like. However, what happens if we spend too much time in classes? We do not take advantage of the hundred percentage of our time because we have exhausting classes with a long schedule. In some cases each subject is token 2 hours per day, so teachers cannot stay those schedules and neither do students. Thus students get stressed easily and cannot pay attention very well. Also students who do not like some subjects spend their time in other activities such as playing on their cell phones, chatting or joking. Hence time is not taken advantage of in classes, so schedule should benefit students and teachers. Each one works better if they are relaxed. A good example to take advantage of time is in the article, A Young Tinkerer Builds a Windmill, electrifying a nati on. (2007). Where Sarah Childress says that while William Kamkwanba quietly plowed through homework, his classmates were busy gossiping and checking their Facebook profiles. He took advantage of his time while his partners did not spend time in a good way. Also William Kamkwanba created a new project without any pressure. He was relaxed and he worked better. Also he did not spend his time in classes because he was forced to work with his hands so he worked better if he was moving his hands. Also William Kamkwanba had done his work without any teacher; he is a great example of self-preparation. A great example of this is when he built a wind will only with a book. This shows that the only limit is our imagination. He worked every minute in his project so his project could be done. Based on that the scholar system should change the schedule and exploit each ones abilities taken advantage of every minute in classes and give more free time to decrease stress. Also the system should cons ider different ways to exploit time. As we can see in Willians example creating projects is one of the best solutions because with projects we are able to think outside the box and not waste time. Time is too important because we cannot recover lost time. The current methodology no longer works Finally, the current methodology based on memorization is an impediment to learn because creative people are wasting their time. Nowadays memorization is an important base in our education system. However not all students are able to learn in this way also this way of teaching does not teach critical thinking skills. If we think on memorization, scientist comes up our mind because some people believe that they are like robots and they only memorize their books. However , in the article Scientists Are More Creative than You Might Imagine (Nov 12, 2014). Ossola Alexandra believes that scientists are like artists as well. Scientists are able to create because they need new ideas. Also projects are based on new ideas and a scientist always does projects. If a scientist only has the ability of memorize, he would fail in the science world. However the education system, which I described before, is not useful for different skills based on creativity, it focuses in creating head knowledge. S chools only teach what they need to learn they only teach facts, but sometimes they do not teach how they can apply that knowledge and students are like machines, empty machines. A student can follow instructions but the real question is, can that student think by himself. Curiosity, initiative, leadership are not used in classes and they are abilities that can help a student not only in his studies also in his life. Innovative solutions and new technologies are emerging around the world (Segal Susan, 2016). That means that there are a lot of people with good ideas. However in Latin America those techniques such as creativity, collaboration, problem-solving and others are not taken of advantage because those skills are killed in schools or high schools. The system only teaches us to follow one way. Nevertheless kids are living a different reality so they need different skills. Memorization is an antiquate technique that should be changed by techniques like leadership or adaptability initiative. To sum up In conclusion if the current education system in Latin America based on memorization and head knowledge are not useful in the world today, we should find a solution to help people with fresh ideas, innovation or creativity. Today we are judge a fish by its ability to climb that shows us that we are not creating people who can solve real problems because the education system is focused head knowledge. However, the world need more than knowledge as developing countries we should be able to pick the best of other education systems from countries with better development. Also education system is too important for each one because kids are formed in this system and they will be the future of our society. Nevertheless we are killing their abilities and we are formed robots that only have linear thinking. Is true that there are problems so we need to identify which are they and try to find a solution. Childress, S. (2007, DECEMBER 12). A Young Tinkerer Builds a Windmill. Retrieved from THE WALL STREET JOURNAL: http://www.wsj.com/articles/SB119742696302722641 Howard, G. (n.d.). Inteligencias Mà ºltiples: La teorà ­a en prà ¡ctica. Barcelona: PAIDÓS. Ossola, A. (2014, November 12). Scientists Are More Creative Than You Might Imagen. Retrieved from the Atlantic: http://www.theatlantic.com/education/archive/2014/11/the-creative-scientist/382633/ Sean T, F. (Director). (25 june 2013). El Sistema Educativo Finlandà ©s Subtitulado web [Motion Picture]. Segan, S. (2016, May 20). The case for disruption in Latin Americas. Retrieved from The World Economic Forum on Latin: https://www.weforum.org/agenda/2016/05/a-case-for-disruption-in-latin-america-s-classrooms/

The Core ideas of change management

The Core ideas of change management It is in the nature of people to be afraid of change. In our everyday life we normally establish routines and become comfortable with the way things just happen. The idea of potential change of the patterns of behavior makes us feel uncomfortable, brings uncertainty and risk in the everyday life. As social entities, corporations are no different. Daily work schedules and process organisation become part of the corporate identity and gradually slow down the speed needed to remain competitive and be a winner. According to Tabrizi (2007), To stay competitive, a player must be dynamic in the marketplace, constantly revising its own strategy in response to the strategies of its opponents, as well as aligning itself with the changing demands of its customers. The organizations that can most quickly respond to the marketplace, particularly those that adapt faster than their competitors, are the ones that make it to the top. Key concepts In general, reviewing the initial reasons for change, it can be reactive, when organizations respond to external factors, and proactive, when companies initiate the process of change themselves. However, no matter what the initial reasons were, once the process has started, we can be sure that change in one part of the company invariably will affect people and processes in all other parts. Moreover, a thorough change can influence, or be influenced by the organizational mission and strategy, structure, products and processes, its employees and culture, technology and know-how employed. Change can be provoked by external or internal factors, or a combination of both. External factors may be changes in demand of consumers, threatening actions of competitors and suppliers, newcomers in the business, MAs, changes in the legal and political environment, new technologies, changes on the labor market, etc. The internal factors can be found within the company itself and may result from redefined mission and strategy, need for major changes in the culture and management style, need for improvement of quality and efficiency, etc. There are lots of algorithms and prescriptions about how exactly shall changes be implemented. In order to get deeper understanding of the contemporary methods, first we will examine the basic change management theories and approaches. Theoretical foundations The three main theoretical schools are differentiated by the addressed levels of change individual, group or organizational level. These are The Individual Perspective School, The Group Dynamics School and The Open Systems School (Burnes, 2009). Individual Perspective school According to Burnes (2009), the Individual Perspective School is divided into two main movements Behaviorists and Gestalt-Field theorists. Both of them address organizational changes on individual level. The main idea of the Behaviorists is that peoples reactions are closely interrelated with their interaction with the environment. One of the first Behaviorists, Pavlov, stated that all behavior is learned and all individuals actions are led by the expected results. Through his well known experiment with the dog that associated the sound of the bell with food, Pavlov proved that one can easily manage peoples behaviour through external stimuli and reward. The other movement, the Gestalt-Field theorists, argues that human actions could not be product only of the surrounding environment, but from the interpretation of this environment through changing the understanding of the situation and modifying the external stimuli. Group Dynamics School According to Cummings and Worley (2009), The Group Dynamics School emphasizes on the implementation of organizational change on a group level. Its founder Kurt Lewin argued that the individual will respond to the groups interactions and pressure and will adapt to its culture and behaviour, accepting its values, norms and roles. Open Systems school The main focus of the Open Systems School is the organisation as a whole, composed of a number of interconnected sub-systems (Burnes, 2009). The different parts and subsystems are interacting with each other and with the environment. Mullins (2008) writes that most important is to achieve an overall synergy within the organization, rather than optimizing the performance of any one individual part. Approaches to change The three basic approaches to change management are the Planned approach, the Emergent approach and the Contingency approach (Burnes, 2009). Contingency approach The basic principle of the Contingency approach is that there is no one best way to change. Change has to be applied in line with the environment and the organisation has to adapt to it. The contingency approach examines the effectiveness of different models, techniques and methods of change management and advises to choose according to the situation. Planned approach The basic idea of the planned approach is that organizations shall first identify areas where changes are required and initiate a process of its implementation (Burnes, 2009). It was launched in the 40s in the work of Kurt Lewin, who developed the most popular models of planned change: Action Research and Three-Phase Model. The approach has been widely used since the 80s. The Action research model is based on the statement that change requires action, and action is based on analysing the situation correctly. The Three step model is based on three phases of implementation: unfreezing moving refreezing. The Planned approach represents a more general prescription about how change should happen in a world much more ideal than the world we know today. As the contemporary situation is changing rapidly, the chance that the environment has changed again during the implementation of your change plan and has made it useless, is extremely high. That is why, I consider the Emergent Approach much more effective and useful. Emergent approach The Emergent approach is focused on the assumption that change is a continuous. According to Dawson (2002), organizational change is a persistent, open-ended process of adaptation to changing environment. It emerges in an unpredictable and unplanned fashion. Maybe the most distinctive feature of the approach is the bottom-up approach of control, i.e. that the employees are most closely involved with the process with the change process (Dawson, 2002). The approach requires a major change in the traditional role of the managers. Unlike the planned approach, here, the role of the manager is not to initiate and control the process, but rather to assist and facilitate it. In order to summarize the main models of implementation, Burnes (2009) has chosen the three most practical models of emergent change: Kanters Ten Commandments for Executing Change, Kotters Eight-Stage Process for Successful Organisational Transformation and the Seven Steps model of Luecke. In order to illustrate the overall impact that emergent change has on organizations, I have chosen the case of Ken Freeman, who made Corning Clinical Labs from a business in shambles to the industry leader in the size (Appendix I). CASE STUDY Ken Freeman, Corning clinical labs, Appendix I Change and the Manager External and Internal Approaches to Change As we have already outlined in the previous part of the work, change can be planned or unplanned (emergent). Planned change is sought when the organisation deliberately attempts to make internal changes to meet specified goals or to pursue a set of strategies (French et al, 2008). However, not all change in organisations happens as a result of intended direction. Unplanned change is provoked by some external triggers such as market forces, economic crises, economic opportunities or social changes. Unplanned change occurs spontaneously and without the organisations provocation. The appropriate goal in managing unplanned change is to act immediately once the change is recognized, to minimize any negative consequences and maximize any possible benefits. (French et al, 2008) However, no matter whether the changes were planned or unplanned, in order to implement a successful and thorough change management plan, there shall be sufficient dissatisfaction with the existing situation, strong attraction to moving towards a more desirable position, desire to formulate a strategy that will realize the vision (French et al, 2008). Change may be triggered by internal or external forces: External forces may be changes in the demand for the organizations products as a result of changing consumer preferences, action by competitors, government etc., threatening tactics of competitors by aggressively cutting prices, newcomer in the market, political or legal changes, changes in the terms of trade (tariffs, exchange rates), lack of skilled employees, etc. (Martin, 2005) Internal forces should theoretically, be more clear and predictable. For example changes in strategy as a result of revised mission or goals, need for cultural changes, changes in the management style, need for improvement in quality, efficiency, standards, need to cut costs (Martin, 2005). However, according to Mabey and Salaman (1995), irrespective of the initial reasons for the change, change is characterized by two important dimensions: firstly, the scale of change (from fine tuning through to corporate transformation) and secondly the style of change (collaborative through to coercive). Selected models of Change Organizations typically respond to the challenges of the above described external and internal triggers with the help of various programs, each designed to overcome obstacles and enhance business performance. According to Luecke (2003), these programs fall into one of the following four categories: Cultural change Cultural changes focus on the human side of the organization. It handles with the general approach of doing business and the relationship between the management and the employees. A typical example for cultural change is changes in the mission and vision of the company and the organizational development. In order to illustrate the overall impact on the company that cultural changes may produce, I have chosen the example with ATT and NCR. Case study ATT and NCR (Apendix II) Structural change Structural changes address the structure of the organisation and the design of jobs and working arrangements as the key levers of change. According to Mabey and Salamn (1995), structural changes are triggered by an organisations inability to fully realize the strategy it is following due to administrative deficiencies caused by a mismatch between the new strategy and the existing structure (Mabey Salaman, 1995). Luecke argues that these programs treat the organization as a set of functional parts-the machine model. Through mergers and acquisitions, between companies, reengineering of units, reconfiguring of divisions, managers try to improve the overall performance and results. A classic example of redesigning the whole management structure in order to complement the strengths of the top people, is provided by Google (Appendix III). CASE STUDY GOOGLE, Appendix III Cost cutting The third program for change is cost cutting. Its core idea is to eliminate non-essential and non-profitable activities. This can be done through reengineering of the structure, decrease of the personnel, focusing on the production of profitable items, etc. Process change Process change aims at making processes faster, more effective, more reliable, less costly. These programs focus on altering how things get done (Luecke, 2003). Examples include reengineering a loan approval process, approaches to handling customer warranty claims, production processes, etc. Attitudes to Change 3.1. Reactions to change In general, there are different reactions to the proposed change process and according to them people are split into three main different groups supporters, apathetic and resistors. According to French et al (2008), change initiatives are typically met by some resistance. Resistance to change is any attitude or behaviour that reflects a persons unwillingness to make or support a desired change. The reasons for this reaction are manifold people are afraid of the unknown, many of them dont understand the need for change, or some may even think that the proposed change goes against the values held by members in the organisation. These reactions outline the need to consider also changes in the culture of the organisation, including changes in members values and beliefs. French et al (2008) outline also another perspective of resistance to change in their work, namely to see resistance as feedback that can be used by the change agent to help accomplish his objectives. The essence of this notion is to recognise that when people resist change they are defending something important that appears to be threatened by the change attempt (French et al, 2008). There is no universal recipe on how could resistance to change be overcome, however, considering the limitations of this paper, one example method illustrated also by a brief case study will be presented in the third part of this paper, The People Problem, which shall give the essence that could be followed. Gender and Change Management Preece, Steven Steven (1999) describe several studies that have concluded that women are more likely than men to display characteristics which would make them good team players. The authors cite a survey conducted in the company Bass, designed specifically to examine gender-related issues in public house management. According to the survey, women appeared to focus on teamworking 82 % of them answered that they find it beneficial due to issues such as the mutual development of ideas, helping each other and problem solving. In the same time, only 65% of the men stated to have positive attitude against team work. These results evidence that women are in general better teamplayers than men and consequently may experience a greater impact in the changeover of the company they are employed with. Case study ATT and NCR (Apendix III) What aspects of the external change environment did Jerre Stead and his advisers choose to focus on? Could they have defined the external environment in a different way, perhaps using scenario planning techniques discussed above, which would have allowed them to construct other, more realistic scenarios? By way of illustration, had they been less US- and head office-centric, could they have created a more accurate picture of the organization and its problems, one that would haveallowed them to see the potential for the problems they would create in Scotland, their key subsidiary location? The central point of this message is that managers are active agents, not merely passive recipients of abstract and external market forces. Good managers understand how to enact their environment in order to control it through more intuitive and creative interpretations, re-definitions and action (Weick, 2001). Weick argues that managers are often better advised to act their way into thinking, by taking smaller, incremental steps and learning from them, rather than think their way into acting through top-down, transformational planning strategies such as those depicted in the ATT case. The dangers of a top-down, planning-then-action approach are twofold. The first danger is that by making big changes there is little chance for learning to occur because you dont really know which of the many components of the change had the most effect. The second danger, and more likely consequence, is that by constructing a plan that is complex you are likely to fall into the trap of paralysis by analysis. The key point is that culture, once understood, is treated as a highly manageable feature of organizations. This seemed to be the perspective of Jerre Stead, the CEO of ATT (GIS) in the case study. Such unitary assumptions and analysis may have a degree of validity in certain contexts, but in others they are likely to be misplaced and misleading. Ask yourself the questions in the ATT case: (1) How realistic were the assumptions made by Stead regarding the potential to create a unified culture in the company? (2) Were leadership and communications all that was necessary to overcome barriers to change? Perhaps he could have taken a different view, distinguishing between: à ¢-   the corporate culture, which is essentially what managers want the organization to be like, similar to the concept of corporate identity in Chapter 6 and more amenable to control; and Chapter 9 Managing organizational change 385 à ¢-   the organizational culture and subcultures, which are more akin to the notions of organizational identity in Chapter 6, and which are less amenable to control, for a variety of reasons. Bearing in mind the preceding health warnings, and the concerns expressed about the concept of unitary cultures, managers need to have a set of sophisticated techniques to identify and manage their organizational cultures. For example, in the ATT case, Jerre Stead and his colleagues might have benefited from constructing alternative scenarios of what the organization might have looked like. More importantly, they would clearly have benefited from an understanding of the nature of the different subcultures in the various subsidiaries of ATT (GIS). The People Problem The real change comes from the people. Individuals are those who create, implement and support change processes. Unless people are involved, committed and prepared to adapt and learn, objectives, plans and future desired states will be likely to founder on the rocks of resistance (Rosenfeld Wilson, 1999). Any transformation of significance will create people issues. And the more significant the transformation and the impact on the people, the greater is the need for full involvement (Burnes, 2009). A successful implementation of turn-around organisational transformation requires not only good planning, but also understanding of the human part. Discipline is a key factor for success; however, it demands strict data collection and analysis, planning, and implementa ­tion discipline as a redesign of strategy, systems, or processes. The main goal of this work is concerned with the role people play in managing strategic change how they do it. Role of the management Typically, the people at the top of any organisation are seen by others employess, stakeholders and outside observers as intimately associated with strategic change, whenever such occurs. Therefore, the overall role of management in the process of change is highly significant (Johnson, Scholes Whittington, 2008). 1.1. Change Management at the Top According to Mullins (2008), the successful management of change is a key factor of organisational performance and effectiveness and should emanate from the top of the organisation. The people at the top of the company are responsible for the strategy and philosophy, the culture, for creating and sustaining a healthy climate and establishing and directing appropriate organisational processes. The successful implementation of change demands positive action from top management and a style of transformational leadership in order to gain a commitment to change (Mullins, 2008). Extremely important management features and capabilities are effective communication skills, ability for recognizing and releasing the potential of everyone involved with the change, setting a good personal example, self-pacing to avoid unnecessary stress. 1.2. Managers and leaders However, top managers may be the initiators but are not always the real leaders of the change process. Luecke (2003) argues that leaders create an appealing vision of the future and then develop a logical strategy for making it a reality. They also motivate people to pursue the vision, even in the face of obstacles. Managers, on the other hand, have the job of making complex tasks run smoothly. Managers are those who elaborate and implement process details, assure resources and direct the process. John Kotter has described the relationship of leadership andmanagement in a simple two-by-two matrix, shown below (Luecke, 2003): The main idea of the matrix is that long-term transformation process requires involvement both from leaders and managers and that transformation goes nowhere when both leadership and management are found wanting (Luecke, 2003). 1.3. Middle managers Middle managers are the implementers of strategy. Their role is to put into realization the direction established by top management by making sure that resources are allocated and controlled appropriately, monitoring performance and behaviour of staff and, where necessary, explaining the strategy to those reporting to them (Johnson, Scholes Whittington, 2008) Role of Employees According to Brill and Worth (1997), in order to make the change effort work, we must learn how to capitalize on positive human qualities, such as trust, idealism, and dedication, and mitigate the impact of those other natural human traits (suspicion, stubbornness, anxiety) that often undermine the change process. The role of employees is most obvious in cases where the chosen approach to change is bottom-up, not top-down. Strictly speaking, bottom-up change can not only be implemented from the lower levels of the hierarchy, but also initiated from the employees. However, Burnes (2009) argues that there is little point in encouraging staff to identify change opportunities unless they are also encouraged to implement them. The need for using the bottom-up approach is evident when taking the emergent approach to change. Having in mind the rapid pace of environmental changes, they need to be dealt with speedily and be treated locally, in order to achieve optimal and timely success. Role of Stakeholders In the process of change stakeholders are not actively participating, however, gaining their support is extremely important. In a turnaround situation it is crucial that key stakeholders, like the major financing bank, trade unions and some key clients are kept clearly informed of the situation and the following improvements as they are being made. Moreover, a clear assessment of the power of different stakeholder groups may become vitally important, especially when implementing major transformations (Johnson, Scholes Whittington, 2008). The support of powerful stakeholder groups can help to build a strong fundament, especially in cases where the change agent does not have a strong personal power base from which to work. Dealing with Difficult People Understanding the roles of the participants in the process and showing them the right direction to the desired change is the a major part of the transformation. However, as already outlined in the previous part of this work, change imposed by others feels threatening rather than exciting and the lack of choice makes people feel powerless and leads to stress and defensive behaviour (Mabey Salamen, 1995). That is why, the earlier in the process the resistance agents are found, the better the whole process can be managed. French et al (2008) have outlined the following general approaches for dealing with difficult people: Education and communication discussions, presentations, demonstrations; Participation and involvement allow others to help design and implement changes, contribute ideas; Facilitation and support providing emotional support, actively listening to problems, training; Negotiation and agreement offering incentives, working out trade-offs, special benefits; Manipulation and cooptation influence others, selective information, buying off leaders; Explicit or implicit coercion using force, threatening (French et al, 2008). Resistance to change as resource of new ideas Resisters to change are problematic and typically, when something goes wrong, they are the first that are blamed for the disaster. However, this is not only pointless, but leads also to destructive management behaviours mangers may become defensive, uncommunicative, competitive (Ford Ford, 2009). Strong leaders can hear and learn from their critics and understand that even difficult people can provide valuable input when treated with respect and let to communicate their point of view. An example of such situation is presented in Appendix IV a brief case study about Alison, IT executive, aiming to implement a major change in the computer system of the hospital she was employed with. CASE STUDY Alison, Appendix IV Linking Strategic and Operational Change In the previous chapters of this work, I have examined the theoretical grounds, the major approaches to change, the roles of the different participants in the change process. However, no matter how good the plan for change may be, the most critical part, i.e. the bottleneck remains the implementation of the transformation. According to Luecke (2003), 70 percent of change initiatives fail to meet their objectives. Kotter has also written that If you were to grade them using the old fashioned A,B,C,D, and F, Id be surprised if an impartial jury would give 10% of these efforts an A. But Im not saying that 90% deserve a D either.What is tragic is that there are so many C-pluses. Its one thing to get a C-plus on a paper; its another when millions of dollars or thousands of jobs are at stake (Luecke, 2003). Implementing Strategic change Burnes (2009) argues that the implementation of change is a two-way process of ensuring that strategic decisions lead to operational changes and on the other hand, operational changes influence strategic decisions. The process of implementation may follow the models either of Planned or Emergent approaches. Although that by many, including Burnes (2009), there are no universal rules for leading change, supporters of panned and emergent approach propose sequence of actions to be adopted, which could facilitate and give a structure to the implementation of the strategic changes. Pettigrew Whipp (Burnes, 2009) propose a simplified model of actions to be taken in order to structure the change process: Kanter and Kotter (Burnes, 2009) also propose some ideas for implementation of change. However, I consider that Luecke has given the most practical recipe for action. His model consists of seven steps: Step 1. Mobilize Energy and Commitment through Joint Identification of Business Problems and Their Solutions Step 2. Develop a Shared Vision of How to Organize and Manage for Competitiveness Step 3. Identify the Leadership Step 4. Focus on Results, Not on Activities Step 5. Start Change at the Periphery, Then Let It Spread to Other Units without Pushing It from the Top Step 6. Institutionalize Success through Formal Policies, Systems, and Structures Step 7. Monitor and Adjust Strategies in Response to Problems in the Change Process (Luecke, 2003). For me, this approach is very close to the practice, as it is very much result-oriented and in reality results are the real measures of success, not plans and theories. In order to illustrate this consideration, please refer to Appendix V, a case study about Xerox. CASE STUDY XEROX, APPENDIX V The role of the Change agent In the process of change there are always factors limiting the implementation of the changes in the operational level. According to Mabey and Salaman, (1995) an important factor for successful implementation of strategy into operational level is the formal and informal presence of a change agent. According to Rosenfeld and Wilson (1999), change agents are the individuals or groups of individuals whose task is to effect the desired change. They can be both internal and external to the organisation. The agent acts as intermediary and his responsibilities may range from complete collaboration with staff to acting as absolute authority and expert. Internal change agents are mostly experts in the field, to who people trust. External agents may have political credibility and support, however, often lack the detailed knowledge of the company (Rosenfeld Wilson, 1999). Considering the complexities involved with change, the range of abilities and expertise of the change agent could be significant. Vital to the success of the change agent is also the support from the senior management of the company. Change agents see the need for change and articulate it effectively to others. They are critical catalysts for a change initiative and should be placed in key positions (Luecke, 2003). Here are some of the most important implications of change agents: articulate the need for change; are accepted by others as trustworthy and competent; see and diagnose problems from the perspective of their audience; motivate people to change; work through others in translating intent into action; stabilize the adoption of innovation; and foster self-renewing behavior in others so that they can go out of business as change agents (Luecke, 2003). People suitable for this job can be professional change agents like those working in the HR consultancy companies, or people from the business. They can also be produced like GM did in the past. Luecke (2003) describes the case: General Motors attempted something very similar in its joint venture with Toyota: the NUMMI small car assembly plant in California. That plant was run according to Toyotas world-beating production methods, and GM rotated manufacturing managers through the plant to learn Toyotas methods and, hopefully, bring a working knowledge of those methods back to Detroit. Reflecting on Change in Different Contexts

Analysis of Presentation on Nature as Female :: Gender Sex Female Male Essays Papers

Analysis of Presentation on Nature as Female I found the presentation on Nature as Female to be very interesting, because the topic asks as many questions as it answers. The question of why nature is gendered, I believe, is inextricably rooted in language. Language determines everything our experiences, our perceptions, our beliefs, and our desires. In a class I took last term we spoke about Lacan and his theory about language determining our desires, and it made sense to me, because you cannot desire what you cannot name. In the same way, language determines our beliefs about the world. In an anthropology course I took, there was a study about this Navajo tribe that demonstrated a profound understanding of quantum physics, without ever having been taught it. The linguists believed that this was because of their language. Their language determined their perception of the world, and thus allowed them to understand it in a vastly different way then people who speak English or French, for example. The example that was given to try to explain the difference was that instead of calling grass "grass", the Navajos would call it "growing green that reaches up to the sky". In their process of naming it as such, their concept of grass is different than our concept of grass. Do you understand the difference that language can make, just in how things are named and described? Another example that was given was how Chinese children displayed far greater mathematical understanding compared to English speaking children, and the disparity was traced back to language. The argument here is that language determines our conceptualization of numbers. In English, we say ten, twenty, thirty†¦etc. The word "twenty" gives no indication that it means "two tens". In Chinese, however, the words do give this indication (one-ten, two-ten, three-ten†¦etc). Language is so innate in us that we forget its power. But realizing how language exerts itself over everything, it is easy to understand how our conceptualization of nature as female has come to be. Our concept is a result of our language, which determines our understanding of the world. In the English language there are gendered words, which necessarily influence our belief about what they signify. Thus we say "mother nature" and without a second thought we understand nature to be female. In just that one word "mother", nature becomes conceptualized for us as female. Thus, our understanding about nature is based on this belief.

Gun Control Essay -- Second Amendment The Right To Bear Arms

Gun Control in the United States   Ã‚  Ã‚  Ã‚  Ã‚  News is all around us and is readily available to everyone. There are many flaws in the system that hurts the authenticity of the news when you see it. The media is indirectly part of the political system. Most news is either considered liberal or conservative by many.   Ã‚  Ã‚  Ã‚  Ã‚  The media is often considered to be biased. The reason for this is because they do not act neutral on the things that they report on. They usually give their point of view and tend to warp the information so it’s easily digestible by the average person. This type of â€Å"nugget feeding,† can influence the judgment of some one who has no idea what is going on. The media tends to sensationalize the news by making it seem dramatic, and compelling. This hooks the viewer, and keeps them tuned in. The purpose of this is for ratings, and most importantly money. The media has become less professional, and their morality has gone down hill. The editors/gatekeepers decide what information is sent out for the public to see, and hear. This is another way that the news is shaped for our viewing pleasure.   Ã‚  Ã‚  Ã‚  Ã‚  The news media rejects the fact that they are biased. They claim that they are the â€Å"middle of the road,† and are neutral on the stories that they cover. Publishers also claim that they are the watchdog for the political system, and they make sure that the system is free of any corruption, or wrongdoing. Th...

How Actors Contribute to Film Essay

The very goal and essence of acting is to represent a certain character or figure and portray his or her ideas and personality. The goal of acting is to be another person entirely and play their character and their life as if they were your own. It is a beautiful art form and its target is to make the writer’s characters and story come to life. The skills, dexterity and prowess needed in order to fulfill such goals are, certainly, determination, as needed in the hearts of all people who are striving to achieve their dreams. It may not be considered as a skill but it is truly and absolutely a mandatory quality in every dreamy person. One also needs creativity and uniqueness in order to make the film’s â€Å"dramatis personae† come to life and be a real living and breathing person in the eyes of the audience. Also, for the role of the actor to come alive, the actor would need to be in possession of a strong power of influence and, in a way, control and manipulation for the reason that their acting needs to be fantastically believable and have a sense and aura of reality. This quality of believability will strike the audience and will cause a conflict in his or her mind, which would be sinking into the fantasy of the film and holding onto the reality of the world. You will need to be extremely professional and comfortable in front of the camera in order to lose the audience in the story and cast. These are only some of the many skills you will need in order to perform with beautiful finesse and accomplish the very purpose of acting. An actor who executes his job well, complete with panache, professionalism, believability, creativity, humility to accept the words of fellow actors or the director himself, and so much more are marks of good actors. They have to attain the goals of an actor and they have to know how to get into complete character. They have to know how to improve on themselves and make it their objective to reach out to their audience and convey their emotion and influence them to their advantage. As the audience, I would know good acting if I truly feel and believe in the words and actions of the actor. On the other hand, a bad actor is, naturally, the opposite. He is not professional in what he does and does not communicate enough feeling through his acting. The audience would not feel any passion from the actor and the actor does not achieve the exact impact he expected from the audience. The director is the individual who confronts the actor’s wrongdoings, suggests particular improvements, helps the actor understand his role and he is the one who directs the flow of the film, itself. He is a very vital part of the film industry. Since he knows the story and the cast very well, the director’s influence on an actor’s performance is crucial. The director has to know how to take charge and should know what to expect of his actors. He has to be a good communicator because if the actor misunderstands his words, it will absolutely affect the film development process. The actor should know how to follow his director but at the same times, they should have the respect due each other and the actor should know when he should speak up about certain topics. He should also regard the director as his mentor and so I believe the director’s influence may deeply affect the performance of the actor and the director’s words will surely be embedded in his mind. Since he is one of he heads of the film development process, the actor would know that the director knows best and so the effect and impact of the words of the director will affect the performance of an actor. Negative or negatively said words may offend the actor or it may even be taken constructively. Positive or even positively said negative words, may affect the actor more successfully because it will raise the actor’s confidence. Directors, though, should not control the every movement of an actor because he should allow a space for creative freedom, which actors are definitely entitled to. Actors should have creative freedom so that it will practice the mind of the actor to generate more creative, original and spontaneous ideas. Also, in order to make their own individual mark on the film and they will, somehow, feel more accredited for the film because they have contributed their own approaches in their acting. This will also help the director and ease his burdens of continuously managing the actor’s movements. Creative freedom is essential. But, it should not be used abusively liberal. The actor should give space for the director’s words as the director gave space for the actor’s creative freedom. Te film industry makes stories in order to influence or inspire their audience, let them enjoy books or lives of people in a more animated and different light and perspective, make them laugh, smile, inspirit or galvanize them, even for simply a moment. They could even be making these films because it is their most efficient or only outlet of their emotions. There are many reasons for creating films and creating stories because people have different minds and have different ways of thinking. We watch such films because we, as humans, are inclined to become very curious and become interested in many things. We may also sometimes, subconsciously, yearn for a better life and so we watch the movies that portray those with better lives that we want, movies with people with worse lives that will make us appreciate our present life or even some sort of nonsensical farce or slapstick comedy and that will make us laugh and lift our spirits. We also, may have different reasons of watching films that range from just wanting to have a get-together with friends or it is your way of cheering yourself up. Films are a very big part of our world’s culture because they can poison your mind and offend people or it can also make you laugh, inspire others and change people for the better and make you make a change and a difference.

Alliant health system Essay

From my point of view no strategy is perfectly sound. There are some or other lacking points in every strategy. In case of alliants strategy, although they have made quite advancements but in last 5yrs they have hit a few unexpected obstacles and drawbacks that has staggered their progress. alliants were only been able to lay the base. The working of alliants was facing the problem of in cordiality to the total quality management philosophy. For alliants to eliminate the problem the quality process still needs a jumpstart ,even the physicians show broader there view point, implementation of an IT system that fully supports total quality management by getting them the data and the important facts it need to have to in cooperate innovation in future in their organisation. Even the CEO wolford said that he cannot talk about any one area which is doing substantially well than its competitors. alliants were finding a problem to get plans into implementation. Even as per the statistics the unable to monitor rate was around 2% to 70%. How well have they implemented the quality strategy? Alliants thought of a new action plan to introduce total quality management with the help of quality management team with a 10 pointer action setup. This time they were determent that the implementation of plans takes up systematically. Mainly 4 area of TQM strategy were taken of well. 1) CARES+ – this process was implemented all across the alliants. This helped in shifting from the traditional system of the planning to the improvement of the quality which was highly efficient. 2) EQUIP- this was an idea to give voice to the employees. They were allowed to share their point of view and give their ideas, innovations and communicate with the higher management of the organisation. 3) . Quality Improvement Teams- these teams brought the technicality and specific analytical tools to bring implementation in action. 4) . Critical Paths 3. Evaluate their information technology needs. Believed information technology (I/T) is a key in the future strength of TQM Need â€Å"expert systems – computers to help the mind† â€Å"Was a shift in focus: to patient-oriented systems rather than functional, â€Å"stove pipe† applications that met narrow departmental needs. Physicians, clinical support professionals, and administrators could share information and drive continuous improvement in service â€Å"HELP offered advice on possible diagnoses, cost-effective treatments, resource scheduling, and drug contraindications. † New I/T strategy offered significant advantages over Alliant’s existing patchwork of stand-alone systems: System worked concurrently – advice was available as patient was being treated Had the potential to improve coordination dramatically by collecting data from all corners of the hospital into a single patient-centered system 4. Would you proceed with HELP? From my point of view, yes we should proceed with HELP. As this improving the quality, saving time and even the paper. This system has helped the hospital in making the whole organisation a one working unit. This is basically a single patient orient system that has all the information about every patient who has been admitted in any of their hospital in any other area. This has eliminated the repeated data and has been proved to be more productive, efficient and well organised. 5. What would you do to make sure implementation is successful? The steps which i would take will involve

Ap Nsl

ap nslChapter 18: Reading Questions 1. Read the handout on incorporation doctrine and write a definition of incorporation clarifying the concept of incorporation in your own words as well as explaining the role of the 14th Amendment in incorporation. I will cover this in class! 2. What are the three reasons why the liberties claimed by some people become major issues? Give one or two examples for each reason. 3. Explain briefly how the Supreme Court has interpreted the Free Exercise and Establishment clauses. 4.What are the difficulties in using the â€Å"wall of separation† principle? 5. List and explain the circumstances when the Supreme Court has ruled that freedom of speech may be limited. 6. Define the â€Å"clear-and-present-danger test,† libel, preferred position, prior restraint, imminent danger, and symbolic speech. You may just want to put these straight onto your flashcards 7. Summarize the Supreme Court’s changing interpretations of how to protect bot h the due process rights of accused criminals and to preserve the safety of the community.Define the exclusionary rule and the â€Å"good faith exception. †. Chapter 19 Reading Outline 1. What does the book say is the pertinent question regarding civil rights? 2. What were the strategies that black leaders followed in order to obtain civil rights? Once basic rights such as voting and integration had been obtained, what issues did civil rights leaders focus on? 3. Briefly outline the steps in the NAACP’s strategy in the fight against segregated schools and indicate the success they had in the courts and in implementing desegregation. . What was the issue concerning desegregation vs. integration? How has this issue been resolved? 5. What were the four developments that made it possible to pass civil rights bills? 6. What accounts for the change in attitude in Congress towards civil rights issues from the 1960s to the present? 7. How has the Supreme Court changed in its a ttitudes towards equal rights for women from the early 20th century to today? 8. What are the two standards the Court uses today to in considering sex discrimination cases? What is the debate between those who support â€Å"equality of result† and those who support â€Å"equality of opportunity†? 9. What are the criteria that the Supreme Court has adapted in defining strict scrutiny of any law involving racial preferences? 10. Briefly summarize the highlights of the government’s response to abortion. 11. How did activists for the disabled manage to get The Americans with Disabilities Act passed? 12. Briefly summarize what is included in the law and the objections that some have had to the law.

Oil and Gas Problems in Kazakhstan

Kazakhstan's Oil Supply Chain Management Challenges Kazakhstan is endowed with rich oil reserves, which provide an important source of revenues for stable economic growth and improvement of the country's living standard. This paper addresses the challenge the Republic of Kazakhstan faces in managing its oil supply chain. The country's capacity for refining crude oil is minimal and a substantial portion of that refining capacity is outside the Republic; added to that, most of the pipelines and refineries to export oil to international markets are jointly managed by the Republic and multinational corporations (MNCs).Thus there are political, technological and financial risks for the republic's oil supply chain. 14 Jay Nathan, The Peter J. Tobin College of Business, St. John's University As in other oil producing nations, Kazakhstan's oil industry revenues directly depend on the worldwide prices for oil and oil products, based on supply and demand; and revenues depend on the cost of pro duction and transporting the final product to customers (Rasizade, 1999). For Kazakhstan's oil supply chain, the physical distribution infrastructure connecting supplies of crude oil to refineries and to the world markets through pipelines, has been challenging and costly.Moreover, currently Kazakhstan is equipped with only a few ; refineries and therefore the major portion of Kazakhstan's crude oil is being refined in Russia. Recently, China has invested heavily in the construction of pipelines across the Republic of Kazakhstan to supply the increased demand for oil in China. Thus Kazakhstan has to manage political, technical and financial risks in the integration of her oil supply chain (Gaudenzi and Borghesi, 2006; Lockamy and McCormack, 2004). In the era of rapid technological development and globalization. It is imperative that every nation adapts to such an environment.Supply chain management has become an important means for sustaining competitive advantage for all successful industries and businesses (Magretta, 1998). The objective of every supply chain, including the global oil industry, is to maximize the overall value generated. The value a supply chain generates [to an organization, or to a nation] is the difference between what the final product is worth to the customer and the effort the Introduction Kazakhstan has considerable deposits of oil; however, the country faces a serious disadvantage of not having any direct access to the open sea, as the Caspian Sea is landlocked.While her oil industry's upstream cost, i. e. , the cost for exploration, development and production of crude oil, may be similar to that of most other oil producing nations, its downstream cost, i. e. , transportation of crude oil to the refinery, refining and transportation to markets in particular, is more costly (Sridharan, Canines and Patterson; 2005). For Kazakhstan to transport the oil to world markets, the industry has to depend on pipelines (Cavenagh, 1999) through ot her countries. Also, maintaining such an operation requires a large number of skilled workers, but Kazakhstan does not have enough of them.Kazakhstan's Oil Supply Chain Management Challenges 15 supply chain expends in filling the customer's request. For most commercial supply chains, value will be strongly correlated with supply chain profitability, the difference between the revenue generated from the customer and the overall cost across the supply chain (Chopra and Meindl, 2003; Lee, 2002; Cavinato, 2002). The Republic of Kazakhstan will do well to monitor—especially to sustain growth — the overall value of her oil supply chain in the coming years. because of refinery gain {www. gravmag. com, 2006).It is important to note that greater economic rewards can be gained only with well-integrated global oil supply chain management. Oil Production Sharing Agreement and Risks in Kazakhstan The Ministry of Energy and Mineral Resources of Kazakhstan and the Ministry of Fuel an d Energy of Russia, periodically set quotas for Kazakhstan's oil flow through Russian territory. For example, on December 25, 2000 the quota for Kazakhstan was set at 17. 3 million tons. The memorandum between Kazakhstan and Russia of October 9, 2000 sets the principle of â€Å"a single route,† whose sole operator is the Kazakh Oil Company.Annual quotas depend mainly on the political relations between the two nations. Besides politics, there is also a technical risk factor, i. e. , the high degree of pipeline wear and deterioration, which may hamper the effectiveness and quality of services provided to exporting countries. In addition, the lack of proper maintenance of these oil pipelines does exist primarily due to the fact that a large number of well-trained local technicians and engineers who are required are not available to day (Doing Business with Kazakhstan, 2004).Kazakhstan's oil pipeline systems were built in the '70s {more than 60 percent of oil pipelines of the Wes tern branch, to be exact) and the rest in the '80s {75 percent of the Eastern branch). Thus, at the end of the year 2000, Oil producing countries and global supply chains Energy makes the wheels of global supply chains go round (Bud La Londe, 2006). A typical oil supply chain begins with the crude oil producer, next, the oil moves to the refiner, the transporter, the retailer and finally to the gas pump where a customer receives the product.The top world oil producers are Saudi Arabia, Russia, the United States, Iran, Mexico, China, Canada, United Arab Emirates, Venezuela, Norway, Kuwait, Nigeria, Brazil, Kazakhstan and Iraq. The Organization of the Petroleum Exporting Countries (OPEC) controls major crude oil supplies to the world. OPEC influences the price of crude oil by setting production quotas. The values {revenue opportunities) are added by processing and chemically changing the crude oil, which is called â€Å"refining. A 42-gallon barrel of crude oil makes about 19 1/2 gal lons of gasoline, nine gallons of fuel oil, four gallons of jet fuel and 11 gallons of other products, including lubricants, kerosene, asphalt and petrochemical feed-stocks to make plastics. This adds up to more than 42 gallons Supply chain management has become an important means for sustaining competitive advantage for all successful industries and businesses. Kazakhstan's Oil Supply Chain Management Challenges 16 55 percent ofthe pipelines were 10 to 20 years old and 12 percent had been used for more than 30 years.Only 1 percent has been used for less than 10 years. As time goes by, those pipelines are getting even older and that means not only the risk and cost of maintaining them would be larger, but also the situation presents serious technical problems as well for the Republic of Kazakhstan {Petroleumjournal. com, 2006). form of joint ventures, production sharing agreements and exploration/field agreements. Oil is recovered from 55 fields. The largest of these fields are: Ten giz (some one billion tons of predicted oil reserves); Karachaganak (340 million tons in oil reserves, more than 1. billion tons in gas condensates and more than 1. 3 trillion cubic meters of natural gas); Uzen (with over 1. 5 billion tons of geological hydrocarbon reserves, of which more than 200 million tons are extractable) and Kumkola (with 350 million tons of oil reserves, of which 80 million tons of oil and 75 billion cubic meters of natural gas are proven). The Caspian and Aral Sea shelf also contain significant reserves. Currently, there are only three major refineries in Kazakhstan: Atyrau, Shymkent and Pavlodar (see Exhibit 2). Kazakhstan's Oil Fields and ProductionMangistau and Atyrau oblasts (provinces) are the main oil producing areas in Kazakhstan (see Exhibit 1). They account for more than 70 percent of the total oil extracted in the Republic. The other three extracting regions, Aktyubinsk, Kzylorda and Zapadno Kazakhstanskaya, account for the remainder. International oil projects have taken the Exhibit 1: Production (in thousand tons) by regions 1998 Crude oil, thousand tons Aktubinskaya Atyrauskaya Zapadno-Kazakhstanskaya Kyzylordinskaya Mangistauskaya 23,818. 7 2,640. 8 11,135. 1 3,007. 8 7,035. 0 1999 26,735. 8 2,326. 7 12,359. 3 3,928. 8,121. 7 2000 30,647. 9 2,701. 1 13,422. 0 13. 5 533. 8 9,173 2001 36,060. 0 3,405. 3 15,589. 5 49. 4 6,172. 8 10,843. 0 Source: National Statistics Agency of Kazakhstan, 2005 Kazakhstan's Oil Supply Chain Management Challenges 17 Exhibit 2: Design and Delivery Capacities of Major Refineries Plant Design Capacity m In. tons Actual Deliveries min. tons Per month Design thousand tons Actual thousand tons Per day Design thousand tons Actual thousand tons Shymkent Oil Refinery PavlodarOil Refinery Atyrau Oil Refinery 6. 5 3. 6 2. 3 590 326. 8 189. 5 245. 4 19. 7 22. 6 14 10. 9 6. 3 7. 5 4. 677 418 2. 7 8. 2 Source: National Statistics Agency of Kazakhstan, 2005 †¢ Pavlodar (a foreign investor was given a man agement concession in 1997; the plant has been under government control since summer 1999) processes mainly light crude from Siberia and supplies the northern region of Kazakhstan; †¢ Atyrau belongs to Kazakhoil, processing heavy domestic oil and supplies the western region; †¢ Shymkent was mostly sold (95 per cent) to private investors in 1996. It processes dedicated crude from the region (Kumkol, Aktyubinsk, Turkmen fields) and supplies the south, particularly Almaty.Kazakhstan's Oil Production and Distribution Costs A multitude of different schemes exist for dividing oil revenues between the host country and the foreign partner. The usual target for distribution of revenue from production to market is about 85 percent to the host country and 15 percent to the oil company. This ratio can be construed in a variety of different ways with different types of contractual forms; it also depends on the host country's laws and preferences, but in general oil companies target thi s ratio.This number has varied over the years. For example, in Saudi Arabia the ratio is much higher in favor of the Saudis due to huge reserves and tower production costs. In the Caspian, the ratio is likely to be lower due to additional transport costs of getting the oil out of the region, i. e. , pipeline construction costs and transit fees and political risks in the area. Part of the problems with signing contracts with Caspian nations has been the nations' unwillingness to recognize the economic necessity of decreasing the ratio (Feiveson, 1998).The upstream breakdown of costs is about 10 percent for exploration to find an economical field (odds are about one in 10 holes drilled will hit a commercial-sized field), 80 percent (or higher) to develop the find and 10 percent in continued on pg. 20 The benefits an increased number of properly educated personnel would befar the proper management of the entire supply chain activities are enormous; it is a strategic necessity for the R epublic of Kazakhstan to leverage and sustain future oil revenues. Major Oil Pipelines and their Routes MapHere are the various Kazak pipelines and their routes: Kazakhstan's Oil Supply Chain Management Challenges 18 Exhibit 3: Map of Major Pipelines Oil ptpalin «a Existing) prundw eonsiruClioR A Maior Ott nekl RBfinoty  » Planntd wunott †¢ †¢ confl ruction 0 Mil « 200 Km 400 Oil Pipelines Infrastructure in Central Asia Source: Adapted from Kazakhstan Oil and Gas International Conference Proceedings, 2002 The major pipelines are identified by the Kazakhstan Ministry of Power, Industry and Trade as the projected priority export routes for oil in the following order: 1.Atyrau-Samara pipeline: The possibilities for oil exports along the AtyrauSamara oil pipeline are restricted by its throughput capacity and by the quota set by Russia. This is a constraining factor for the growth of both crude oil production and export supplies. To increase the throughput capacity from 1 0 to 15 million tons per year, a series of technical measures in Kazakhstan and Russia are being taken at a cost of 22 million dollars; Kazakhstan's Oil Supply Chain Management Challenges 2. Tengiz-Novorossisk oil pipeline: The Caspian Pipeline Consortium's (CPC) oil export pipeline project is a short-term priority westward.This project ensures an independent outlet for Kazakhstan's oil exports to the Black Sea and opens up opportunities for the attraction of foreign investments in the oil-and-gas sector. The necessary agreements for the project participants have already been signed and operations initiated; 3. Trans-Caspian pipeline: Planned to follow a route through the Black Sea to Turkey, the Trans-Caspian oil pipeline project is considered to be a priority. The oil pipeline will stretch from Western Kazakhstan to an outlet on the Mediterranean (the Turkish port of Ceyhan) via the Caspian Sea.The territory of Azerbaijan, Georgia and Turkey creates risks for the project due to th e complicated mountainous terrain and water barriers and the need to cross confiict-prone zones; 4. Kazakhstan-China pipeline: Since 2004, in the Kazakhstan section of the Caspian Sea, the volume of the crude oil production has increased. The export oil pipeline of the CPC alone cannot meet the demand for oil transportation infrastructure. Preliminary engineering and economic calculations have shown that an oil pipeline eastward to China is a promising and economically favorable project.The Kazakhstan-China oil pipeline project can, simultaneously, meet Kazakhstan's national security interests and provide an outlet to meet China's growing demand for oil. The oil pipeline's route will pass over the territory of Kazakhstan and China will guarantee the project funding. The downside of the project is that the People's Republic of China can potentially control the price paid for the oil; 5. Persian Gulf-Iranian oil pipeline: The Persian Gulf-Iranian oil pipeline provides another possible oil pipeline route to the south.However, severe competition from OPEC countries can bring about a reduction in the price paid for oil from the Persian Gulf. Consequently, a reduced load on the oil pipeline may occur at some time in the future due to low profitability in that market. No terms for investment mobilization for this project have yet been defined; 6. Arabian Sea-Trans-Asi an oil pipeline: The Trans-Asian oil pipeline via Kazakhstan-Turkmenistan-Afghanistan-Pakistan to an outlet in the Arabian Sea is politically highly risky, since it passes over the territory of Afghanistan.Currently, consideration is being given to the basic question of how the funding will be organized for the project. Kazakhstan's Oil Supply Chain Management Challenges 20 Exhibit 4: Comparison of Transport Costs per barrel of Kazakh Oil Route Cost to Port $1. 42 $1. 42 $1. 42 Black Sea Tanker Second Pipeline Final Tanker Cost $1. 23 Total Tengiz Novorossiysk Samsun Ceyhan NovorossiyskBosporus Bypass T urkmenistan – Kharg Source: KazakhOil Report, 2005 $2. 65 $3. 46 $3. 17 $2. 50 $0. 40 $0. 40 $0. 88 $0. 59 $0. 76 $0. 76 $0. 93 $1. 57 operating costs to produce the oil.Exploration costs are cash expenditures, which include payments for exploration licenses to the host countries. Development costs are capital costs depreciated over time and operating costs pay for themselves with the sales of crude oil production. Downstream costs include transportation of crude to the refinery, refining, transportation of products to market and marketing. If one were to examine the cost breakdown of a gallon of gas {called petrol in some countries) averaged around the world, from ground to market, the distribution would be approximately: †¢ 2. percent for exploration †¢ 12. 5 percent {or more) for production and development †¢ 20 percent to the host government †¢ 2. 5 percent for transportation to a refinery †¢ 7. 5 percent for refining †¢ 2. 5 percent to trans port to market †¢ 2. S percent for marketing †¢ 50 percent in taxes to the consumer at the pump For example, the costs per barrel for export of Tengiz oil are: lifting costs (the costs to get crude oil extracted from below surface and bringing it to the ground level) $2, pipeline costs $1. 2, transit fee $3, shipping by oil tanker {including other means) $1. 23. The total comes to $7. 65. Kazakhstan's Oil Supply Chain Management Challenges In Kazakhstan the preferred contract form is a joint venture between a foreign firm and a state enterprise, generally KazakhOil, which is the state oil company. In a joint venture both the state enterprise and the foreign venture invest stated amounts of capital, which can take various forms, including physical assets and rights to land. Risk is shared in proportion to capita! nvested. The amount of control the foreign firm has is usually limited and in some cases joint ventures are little more than contracts for procurement. The usual t arget for distribution of revenue from production to market is about 85 percent to the host country and 15 percent to the oil company. Kazakhstan's Oil Supply Chain Management Challenges 21 Kazakhstan has two separate pipeline networks: a crude oil pipeline from Western Siberia supplies Pavlodar and Shymkent, while Atyrau runs solely domestic crude from northwest Kazakhstan.The current pipeline system is fragmented and does not link the east and the west of the country, nor does it move petroleum from oil producing fields in the west of the country to the Pavlodar or Shymkent refineries located in the north and the east. The domestic pipelines capacity will not cope with the anticipated significant volume increases the Republic hopes to be producing in the years to come. At present some of Kazakhstan's production is exported by means of barges to Baku, Azerbaijan, where it is fed into the Azerbaijan pipeline network system and sent to world markets (Rasizade, 1999).The existing pipe line networks will require large investments, if Kazakhstan is to develop its crude oil and gas potential to the fullest. Kazakhstan's major oil ports are: Atyrau and Aktau ; major oil export pipelines are: Tengiz-Novorossiisk (Russia); Uzen-AtyrauSamara (Russia); the Kenkyak-Orsk (Russia) line that transports oil from the Aktyubinsk fields to the Orsk refinery; and the Caspian Pipeline Consortium (CPC) that transports oil from Western Kazakhstan to the Black Sea at Novorossiysk (Baker and McKenzie, 2002).Even though the Republic has upgraded its overall educational system, especially the post-secondary curricula, degree offerings and the academic rigor modeling after the Western-type system, there is still a paucity of engineers and technicians to maintain and to sustain the growth of the oil industry. The benefits an increased number of properly educated personnel would be for the proper management of the entire supply chain activities are enormous; it is a strategic necessity for the Republic of Kazakhstan to leverage and sustain future oil revenues. Current Issues in Global Energy MarketIn recent years, demand for energy has surged. This unrelenting increase has helped fuel global economic growth, but placed considerable pressure on suppliers augmented by geopolitics and other disruptive factors. On the demand side, increased energy security and environmental concerns may lead to changes in consuming countries' energy policies. These uncertainties have been reflected in the market through volatility and high prices (Birol, 2006). Daniel Yergin of Cambridge Energy Research Associates Inc. (CERA) during a symposium on â€Å"The Economics and Geopolitics of Russian Energy† at Georgetown University in Washington D. C. n October 29, 2007, forecasted that oil prices are becoming increasingly decoupled from the fundamentals of supply and demand (Yergin, 2007). Policy Implications for the leadership in Kazakhstan Kazakhstan is not a major player in geopolit ics. OPEC member states and Russia have political clout in the global energy market. Russia, Kazakhstan's northern neighbor, not only has huge oil reserves on her own, but also Energy makes the wheels of global supply chains go round. Kazakhstan's Oil Supply Chain Management Challenges 22 controls the refining capacities, as well as some of the flows of refined oil from Kazakhstan to world markets.However, for the young republic, the rich deposit of oil is a blessing; at the same time, it can easily be squandered by mismanagement and bad public policy. Fortunately, in today's global world — armed with first-class business know-how and with lessons learned from other oil producing nations — it is possible for the leadership of Kazakhstan to take a long-term view of proven crude oil deposits in the Caspian Sea and within the sovereign republic of Kazakhstan. 7. Feiveson, H. (1998). â€Å"The Problem of Caspian Energy. † Princeton, New Jersey: Princeton University. 8. Gaudenzi, B. and A. Borghesi. (2006). Managing Risks in the Supply Chain Using Ahp Method. † International journal of Logistics Management, vol. 17, pp. 114-136. www. gravmag. com 9. Lee, Hau L. (2002). â€Å"Aligning Supply Chain Strategies with Product Differentiation. † California Management Review, pp. 105-119. 10. Lockamy, A. and Kevin McCormack. (2004). Linking SCOR planning practices to supply chain performance. International journal of Operations & Production Management, vol. 24, pp. 1192-1218. 11. National Statistics Agency of Kazakhstan, 2005. www. petroleumjournal. kz References 1. Birol, F. (2006). â€Å"World Energy Prospects and Challenges. The Australian Economic Review, vol. 39, no. 2, pp. 190-195. 2. Bud La Londe. (2006). â€Å"Energy Problem Cries for Decisive Action. † Supply Chain Management Review, Vol. 10, Issue 6, pp. 6. 3. Cavenagh, A. (1999, February 24). â€Å"Caspian Oil Project Has a Slov^ Road to Syndication. † Project Fin ance International, pp. 50-51. 4. Cavinato, J. (2002, May June). â€Å"What's Your Supply Chain Type? † Supply Chain Management Review, pp. 60-66. 5. Chopra, S. and Meindl, P. (2004). SupplyChain Management (Second Edition). New Jersey: Prentice-Hall. 6. Doing Business with Kazakhstan. (2004). Edited by Marat Terterov.London, England: Kogan Page Publishers. 12. Rasizade, A. (1999). â€Å"Azerbaijan, the U. S. and Oil Prospects On The Caspian Sea. † Journal of Third World Studies, vol. XVI, No. 1, pp. 29-48. 13. Report of Baker and McKenzie. (2002, November). CIS Energy Notes. 14. Report of KazakhOil (2005). 15. Sridharan, U. , Caines, R. and C. Patterson. | (2005). â€Å"Implementation Of Supply Chain Management and its Impact on the Value Of Firms. † Supply Chain Management, Vol. 10, pp. 313-318. 16. Yergin, D. (2007). â€Å"Oil Market Fever as Prices Near $100. † Pipeline & Gas Journal, Issue II, pp. 97-97.

Corporate Governance in Malaysia Essays

Corporate Governance in Malaysia Essays Corporate Governance in Malaysia Paper Corporate Governance in Malaysia Paper Corporate Governance is a concept in which it has been existence for decades; although not in the exact form that it has come to be understood today (Anandarajah, 2001). The term corporate governance was introduced in Malaysia in 1997 during the Asian Financial Crisis. It also drew the public’s attention on the weaknesses of the Malaysian corporate governance practice (Nor Azizah Zainal Abidin, 2007). Besides that, the downfall of Sime Bank, the Bumiputera Malaysian Finance (BMF) scandal, the irregularities in Renong Berhad, the Perwaja fiasco and the internal management problem faced by Malaysian Airline System (MAS) forced government to enhance corporate governance regulations (Norwani, Mohamad, Chek, 2011). The High Level Finance Committee Report 1999 on Corporate Governance in Malaysia defined corporate governance as the â€Å"process and structure used to direct and manage the business and affairs of the company towards enhancing business prosperity and corporate accountability with the ultimate objective of realizing long term shareholder value, whilst taking into account the interest of other stakeholders. † (Malaysian Code on Corporate Governance, 2012). The code that governs the corporate governance in Malaysia is called the Malaysia Code of Corporate Governance (MCCG). This code was recently revised in March 2012 and it is known as the MCCG2012. Besides providing relevant information to investors, this code also aims to encourage transparency management of companies, to enable investors to guide the direction of the company (Nor Azizah Zainal Abidin, 2007). The MCCG 2007 was revised with the aim to enhance the directors’ duty to the companies. With the revised MCCG 2012, there are still many issues arising from corporate governance. However, to some extent there are improvements in some area of the corporate governance. The revised MCCG 2012 contained a few improvements in the recommendation. This Code now establishes clear roles and responsibilities where ethical standard should be formalized through the code of conduct by the board to ensure its compliance. Through the company’s code of conduct, it mandates the board to formulate system of compliance and ethical standards. Besides, it also includes ensuring that the company’s strategies promote sustainability. There are many improvements made under reinforcement of independence. 3. 1 mandate boards to undertake an annual independent director assessment. For an individual to serve as an independent director, 3. 2 mandate a cumulative term to nine years. Under 3. 3, justification and shareholder’s approval is needed if the board retains as an independent director. And lastly MCCG 2012 recommends that a majority of independent directors must be in the board and the board chairman is not an independent director. These were not in the MCCG 2007. The most important improvement under the MCCG 2012 is to ensure timely and high quality disclosure. Under this the board should make certain the appropriate disclosure procedure and policies of the company. Also, for effective dissemination of information, board should encourage the company to leverage on information technology. This is to promote better use of technology. Furthermore, with the existing recommendation, MCCG 2012 also state that the board should also encourage pool voting in order for strengthening the relationship f the company and shareholder. This imposes duty to inform the shareholders of their right to demand a poll vote by the general meeting chairman. The concern here is whether the revised MCCG have enhanced the corporate governance of the companies in Malaysia. This code calls for voluntary compliance, coupled with the requirement in the listing rules of KLSE which make mandates disclosure of the extent of compliance with the best practice sets out in the Code, while allowing for some flexibility in its implementation by companies. The aim here is to provide necessary information and encourage disclosure to investors who entrusted their funds to companies, so that they can monitor the way it is being run (Finance Committee on Corporate Governance, 1999). This Code has somehow reduced the number of financial scandal but definitely not completely clear it off. There are many scenarios that company collapsing due to financial scandal as what was initiated by the BMF (Bank Bumiputera Finance) scandal. The law governing director’s duty consist of various forms of law. These duties have been observed also contain a plurality of legal fields such as company law and employment law (Hee, 2003). Section 132(1) of the Companies Act 1965 requires a director to use reasonable diligence and to act honestly in the discharge of his duties. The duty to act in the best interest of the company as a whole also from common law covers the collective interest of both existing and prospective shareholders. It is suggested that the common law fiduciary duty to avoid conflicts of interest should be codified to allow directors to be clear about their obligations in conflict situations. KLSE listing Requirements stipulates that public listed companies must got at least two independent directors. Individuals who are expressly excluded from being eligible to act as independent directors include major shareholders, professional advisers or relatives of an executive director or major shareholder of the listed company (Hee, 2003). This provides a better equilibrium of powers between directors and independent directors. The auditor actually provides a check on the information aspect of the governance system rather than having a direct corporate governance responsibility. As widely recognized, the duties of the audit committees have been related to internal audit financial reporting and external auditor. The importance of an audit committee in the framework of corporate accountability is where audit committees are expected to act as the guardian of investors’ interests and corporate accountability suggested by the wide adoption of audit committee (Saidin, 2007). The main duties are to inspect and form an opinion as to whether the financial statements have been drawn up in accordance with the financial reporting standards of Malaysia and the Companies Act 1965; to obtain reasonable assurance that the financial statements are free from material misstatements; and to examine and form an opinion whether the financial statements give a true and fair view of the financial position of the Company as of the financial year end and of its financial performance and cash flows of the year end (Yycadvisors, 2012). The pertinent issue in corporate governance is due to mismanagement, director’s duty not well performed, abusing the minority projection / shareholders and not having meetings often to update what is going on. Management or board should practice the commonly accepted principles of corporate governance such as independence, accountability, roles and responsibilities, integrity and ethical behavior, and transparency. A company’s board should have a number of independent directors. They should be individual with no connection with the company other than a seat in the board. Also, selected independent directors should meet the â€Å"independence† test under the regulatory rules and also to serve with independence of minds. This process of selecting independent directors is likely to maintain their independent mindedness (Rahman Salim, 2010). To create a system that holds decision makers accountable while according proper respect to their authority over corporation is a challenging thing for corporate governance. The market, shareholder voting, and civil and criminal liability is the regular accountability mechanism. In theory, to create incentives for deterring self-dealing and other forms of misconduct and for responsible decision making these mechanisms work together. However, in reality, these contain flaws that allow individuals to occasionally exercise an irrational discretion when making decisions that will affect many others. The impact can be distressing for investors, employees, and the economy when the governance system fails (Jones, 2010). Given the control of publicly held companies, management should be accountable to its board of directors. The board, in turn, should be accountable to the shareholders and other stakeholders. The principle of accountability can be enhanced by many ways, such as enforcing rules and laws, protecting shareholders’ rights, imposing duties on officers and ensuring the scrutiny of the company’s financial statements by independent auditors (Rahman Salim, 2010). To provide creditors, depositors and shareholders creditable assurance that they will abstain from fraud activities, financial transparency would be an important mechanism. Timely and accurate disclosure should be made regarding all materials matter concerning the corporation is one way to ensure excellent corporate governance. The voluntary items disclosed in the annual reports, the time of the information to be released and quantity of information influenced by the board of directors. In disclosing all the relevant information in the financial reporting, the BOD will be transparent when they are independent and examine their responsibility to be accountable to the shareholders. To ensure the quality of the financial reporting process is one of the main functions corporate governance play. Financial reporting should be prepared with integrity which relies on corporate governance. Dependency of the integrity of financial reporting is highly on the performance and conduct of individual involved. What lead the company to reporting failure is when the corporate governance fails where most of them manipulated their financial statement to meet the performance expectation. Research also has found that there is a connection between weaknesses in corporate governance with bad financial quality, fraudulent financial statement weak internal control and earnings manipulations (Norwani, Mohamad, Chek, 2011). Problems that arise in companies in Malaysia regarding corporate governance have to do with the political interference to certain extent. State/government can be said as the â€Å"real† company controller compared to law/policy regulated under corporate governance. For example, the famous corporate governance failure in Malaysia the scandal of Perwaja Steel Sdn. Bhd.. Perwaja, a company owned by the government in collaboration with a Japanese company, Nippon Steel Corporation that was established by HICOM Bhd. in 1982, to fulfill the government’s mission in implementing the heavy industrial policy (Nor Azizah Zainal Abidin, 2007). This can be seen as an example where the state, as a shareholder in the company, has direct interest to it. Fraud and corruption can easily happen with the existence of this relationship. Due to the misconduct of directorship the corporate governance of Perwaja collapsed. Perwaja faced with corruption and mismanagement in tender and contract awarding. Furthermore, doubtful trading transactions and payments were carried out to non existing companies (Netto, 2004). There are one sided contracts between Perwaja and both local and foreign companies plus with erroneous records and many of millions ringgit were unauthorized (Norwani, Mohamad, Chek, 2011). This shows the failure of corporate governance in Perwaja Steel Sdn. Bhd.. However, with fresh funds being injected by the government today, Perwaja is still in business (Netto, 2004). In other case, like the Malaysian Airlines System Bhd. (MAS) faced with internal management problems. Tan Sri Tajuddin Ramli, the largest shareholder in MAS who held both Chief Executive Officer plus with chairman position, entered into unprofitable business activities whereby he had over expansion the flight destination, has caused the occurrence of governance failure (Norwani, Mohamad, Chek, 2011). The new management under Tajuddin Ramli had already cause MAS to suffered huge debts, prior to the Asian Financial Crisis. This had put MAS at risk during the crisis as all their transaction were done is UD dollars (Nor Azizah Zainal Abidin, 2007). Due to the veto power of the government in MAS’s management the decision on airlines destinations were subjected to government’s decision and approval. To comply with Malaysian foreign policy, MAS had to oblige and extend its services, where at that time, not popular destinations or less concentrated areas were decided by the government. This decision contributed lower return to MAS. From this point of view, we can see that the government/political involvement in business have a huge influence in the management of the company. Besides another reason of governance failure of MAS was due to increased in capital expenditure caused by many orders on planes from 1998 to 2001. It was simply a mismatch between earnings and expenditure in the financial reporting, whereby earnings were is ringgit while the latter was in US dollar. MAS ended up paying a higher cost than what was originally ordered for. MAS was then repurchased for more than double of the market price. The question here was before the government’s buyback, why an audit was not conducted which would have a very important bearing on the proper price of the government buyout. An international case study example would be the Satyam Linggam scandal, the biggest corporate scam in India has come to the most respected businessman. Satyam founder resigned as its chairman after admitting to cooking up the account book. The CEO was responsible for the board accounting improprieties that reported a large amount of cash holding that does not exist and overstating the company’s profit and revenue. With a successful effort on the part of investor’s in order to prevent an effort by the minority shareholding promoters to use the firm’s cash reserves to buy two companies owned by them, the scandal all came to know. Consequently, this failed the attempt of expansion on Satyam’s part, which in turn led to a collapse in company’s stock prices, followed by a shocking confession from Raju. History has played a part in the development of corporate governance in India. The first code for corporate governance was published in 1988, but by the Confederation of Indian Industry (CII) entitled desirable Corporate Governance. Unlike codes in some other countries, the CII code did not make statements of principle but addressed specific business issues in India. The code called for â€Å"professionally competent, independent non-executive directors† to make up the board. None should hold more than ten listed company. The code also called for audit committees. A year later 1999 a government committee released India’s National Code on Corporate Governance (Ticker, 2009). Reflecting international standards, the code had the approval by the SEBI and incorporated into stock exchange rules. The government issued guidelines on corporate governance in central public sector enterprises in 2007, covering the composition of the boards, audit committees, accounting standards and risk management (Ticker, 2009). However, corruption remains entrenched in India, not at least in the government administration. The Ministry of Company Affairs and the Securities and Exchange Board need more competent staff experience in corporate governance matters. But rapid economic growth and potential in India suggest that the next few years will see significant changes in both attitude and practice (Ticker, 2009). The failure in corporate governance forced rules and regulations to be enacted (Norwani, Mohamad, Chek, 2011). Recent corporate scandals and the near-collapse of the global ? nancial system all demonstrate the importance of maintaining an effective corporate governance regime (Jones, 2010). With the revised MCCG 2012, duties of all the board of directors are clearly stated, and this will serve as guidance and should improve the corporate governance of the company.