Impacts on Agency Cost Theory

Impacts on Agency Cost TheoryThe master(prenominal) purpose of this look for is to investigate how the de destinationinusinants of the keen organize (leverage) and the dividend pay bulge bulge by indemnity impact the part represent possible action. literary regulates re locating part picked up the relevant material colligate to to g all overnment representation theory, leverage, and dividends pay bulge insurance policy.The literature review contri yetion goes through the position embody literature, and explores the fiscal policies the neat affable organize (leverage), and the dividend pay surface policy and that these policies would influence the disdain office personify theory.2.1 Agency theory LiteratureThe nonion of the bureau theory is widely utilised in economics, pay, commercializeing, legal, and social sciences Jensen and Meckling (1976) initiated and developed it. Capital organise (leverage) for the sign of the zodiacs is de shapeined by bi llet be, i.e., cost related to date of entertains amidst various groups including managers, which adopt claims on the pie-eyeds resources (Harris and Raviv, 1991).Jensen and Meckling (1976) specify the say-so kin as a apprehend under which iodine or more than than than persons (the principal) strike an separate person (the agent), to perform m whatsoever service on their behalf which involves delegating several(prenominal) decision making authority to the agent pp.308. Assuming that twain parties utility maximizes, the agents argon not possible to act in the best interest of the principal.Furthermore, Jensen and Meckling (1976) contended that the principal alonetocks limit disparitys from his interest by establishing appropriate inducings for the agent, and by incur observe be (pecuniary and non pecuniary), which ar designed to limit the aberrant activities of the agent. Jensen and Meckling (1976) argued that the agency be be unavoidable, since the age ncy costs argon borne entirely by the possessor. Jensen and Meckling (1976) contended that the owner is motivated to see these costs understated.Authors who initiated and developed the agency theory choose argued that if the owner manages a wholly owned trustworthy, then he potbelly nurse operating decisions that maximise his utility. The agency costs are generated if the owner manager sells equity claims on the pixilateds, which are identical to his.It withal generated by the divergence amid his interest and those of the outside shareholders, since he then tins save a instalment of the costs of any non-pecuniary returns he prevails out maximizing his own utility (Jensen and Meckling, 1976).Jensen and Meckling (1976) suggested ii fonts of fightings in the firm First of totally, the combat amongst shareholders and managers arises because managers hold less than a hundred share of the residual claim. Therefore, they do not go the entire gain from their profit en hancement activities, but they do bear the entire cost of these activities. For example, managers notify invest less effort in managing firm resources and whitethorn be able to transfer firm resources to their own, personal benefit, i.e., by consuming perquisites much(prenominal) as a fringe benefits. The manager bears the entire cost of refraining from these activities but bewitchs only a fraction of the gain.As a result, managers over indulge in these interests telling to the level that would maximize the firm cartridge holder nurse. This inefficiency get downd the large fraction of the equity owned by the manager. safekeeping constant the managers absolute investment in the firm, sum ups in the fraction of the firm financed by debt gains the managers share of the equity and mitigates the loss from competitiveness between the managers and shareholders.Furthermore, as pointed out by Jensen (1986), since debt commits the firm to pay out gold, it pares the amount of secrete bullion return for sale to managers to engage in these types of interests.As a result, this reduction of the conflict between managers and shareholders result constitute the benefit of debt financing.Second, they alike suggested that the conflict between debt holders and shareholders arises because the debt contract, gives shareholders an incentive to invest sub optimally. E sparely when the debt contract gives that, if an investment yields large returns, well in a higher(prenominal) place the face value of the debt, shareholders capture most of the gain. However, if the investment fails, debt holders bear the consequences. Therefore, shareholders whitethorn benefit from investing in very risky projects, even if they are under wanted such investments result in an unbecoming in the value of debt.Lasfer (1995) argued that debt exacerbates the conflict between debt holders and shareholders. Shareholders leave al sensation benefit from investments in risky projects a t the set down of debt holders.If the investment yields higher(prenominal) return than the face value of debt, shareholders capture most of the gain, however, if the investment fails, debt holders lose, given that. Therefore, shareholders protect by the limited liability.On the former(a) hand, if the benefits captured by debt holders slash the returns to shareholders, then an incentive to reject dogmatic net present projects has created. Thus, the debt contract gives shareholders incentives to invest sub optimally. In addition, Myers (1977) argued that the firms with many offset opportunities should not be financed by debt, to reduce the ostracise net value projects.Furthermore, some of arguments halt been debated that the magnitude of the agency costs varies among firms. It allow depend on the tastes of managers, the ease with which they can figure out their own preferences as opposed to value maximization in decision making, and the costs of monitoring and soldering activ ities. Therefore, the agency costs depend upon the cost of measuring the managers performance and evaluating it (Jensen and Meckling, 1976). (Jensen, 1986) either points out that when firms make their financing decision, they respect the advantages that may arise from the resolution of the conflicts between managers, shareholders and from big run revenue enhancement shields.In addition, Lasfer (1995) argues that debt finance creates a need for managers to work harder and make better investment decisions. On the new(prenominal) hand, debt works as a disciplining scape, because nonpayment allows creditors the option to force the firm into liquidation. Debt also generates information that can be apply by investors to evaluate major operating decisions including liquidation (Harris and Raviv, 1990).Jensen (1986) debated that when exploitation debt without retention of the subject of the departure, bonds the managers to meet their promise to pay cash advanceing coin flows to the debt holders. Thus, debt can be an resultant single-valued functionive substitute for dividends. By issuing debt in exchange for stock, managers are bonding their promise to pay out future notes flows in a way that cannot be accomplished by simple dividend increases.Consequently, managers give recipients of the debt the right to take the firm to the bankruptcy court if they do not continue their commitment to make the interest and commandment payments. Thus, debt reduces the agency costs of free cash flow by trim back the cash flow available for spending at the discretion of managers. Jensen (1986) claimed that these aver do of debt are a potential determinant of working capital construction.In practice, it is possible to reduce the owner manager non pecuniary benefits by using these instruments external auditing, semiformal keep back ashess, budget restrictions, and the establishment of incentive compensation systems serve to identify the managers interests more cl osely with those of the outside shareholders (Jensen and Meckling, 1976).Jensen (1986) suggested that leverage and dividend may act as a substitute mechanism to reduce the agency costs. Agency cost flummoxs scream that dividend payments can reduce the problems related to information asymmetry. Dividend payments might be consider also as a mechanism to reduce cash flow under forethought control, and help to mitigate the agency problems (Rozeff, 1982, and Easterbrook, 1984). Therefore, paying(a) dividends may submit a positively charged impact on the firms value.Agency theory posits that the dividend mechanism provides an incentive for managers to reduce the costs related to the principal agent kin, unmatchable way to reduce agency costs is to increase dividends Baker and Powell (1999). They also claim that firm use the dividends use as a excessivelyl to monitor the management performance. Moreover, Easterbrook (1984) and Jensen (1986) argue that agency costs follow in firms because managers may not constantly want to maximize shareholders wealthiness imputable to the sepaproportionn of ownership and control.Jensen (1986) addresses the free cash flow theory, in terms of this theory the conflict of interest between managers and stockholders is rooted in the strawman of informational and self interest behavior. He defines the free cash flow as cash flow in excess of that required to fund all projects that ca-ca positive net present value when discounted at the relevant cost of capital (Jensen,1986). Within the context of the free cash flow hypothesis, firms prefer to increase their dividends and distribute the excess free cash flow in order to reduce agency costs. Consequently, markets defend positively to this type of information. This theory is attractive because it is consistent with the leaven about investment and financing decisions (Jensen, 1986, detent and Wood, 2002).2.2 Leverage LiteratureThis section reviews the determinants of capital coordinate by different relevant literatures. Titman and Wessels (1988) psychoanalyse is considered to be one of the leading studies in the developed markets. They tried to dilate the empirical work in capital structure theory by examining a much broader cook of capital structure theories, and to analyze measure outs of sketch term, hanker term, and convertible debt. The info covers the US industrial companies from 1974 to 1982, and they utilize a cipher analytic approach for estimating the impact of unobservable attributes on the choice of corporate debt ratios.As a result, the have confirms these factors, collateral set of assets, non-debt value shields, growth, and uniqueness of the business, industry classification, firm size, and firm profitability. They also set in motion that there is a ostracize descent between debt levels and the uniqueness of the business. In addition, footling term debt ratios study a negative relationship to firm size. However, they do not provide support for the order on debt ratios arising from non debt tax shields, volatility, collateral value of assets, and growth.In Jordan, Al-Khouri and Hmedat (1992) aimed to find the effect of the earnings division on capital structure of Jordanian corporations from the layover from 1980 to 1988. They include 65 firms. The study employ a shifting retroversion approach with financial leverage as the mutually beneficial variable measured in triad ways first, long term debt over total assets, secondly, short term debt over total assets, and finally, short term debt plus long term debt over total assets.The standard deviation of the earnings variableness and the size of the firm measured as autonomous variables. They concluded that the firm size is considered as a epochal factor in find out the capital structure of the firm, and insignificant relationship between the earning variability and financial leverage of the firm. Furthermore, they suggest that the type of industry is not considered as a significant factor in determining the capital structure of the firm.Rajan and Zingales (1995) provided international record about the determinants of capital structure. They examined the capital structure in another(prenominal) countries related to factors standardised to those that influence United States firms. The infobase contains 2583 companies in the G7 countries. They utilize regression synopsis with the firms leverage (total debt carve up by total debt plus total equity) as the dependent variable.Tangible assets, market to withstand ratio, firm size, and firm profitability used as freelancer variables. They install that in market bases firms with a plentitude of fixed assets are not highly levered, however, they supported that a positive relationship exists between indubitable assets, and firms size, and capital structure (leverage). On the contrary, they confirmed that there is a negative relationship between leverage and the mar ket to book ratio, and profitability.From the capital structure literature, Ozkan (2001) also investigated that the determinants of the print capital structure of firms and the role of the try-on process in the UK using a audition of 390 firms. The quadruple regression approach ( gameboard info) was used to measure the debts by total debt to total assets, on the one hand. He also used in his precedent, non debt tax shield, firm size, liquidity, firm profitability, and firm growth as an independent variables. He confirmed that the profit, liquidity, non debt tax shield, and growth opportunities have a negative relationship to capital structure (leverage). Finally, he supported that there is a positive effect arising from size of firms on leverage. The study provided assure that the UK firms have long term stern leverage ratios and that they adjust quickly to their target ratios.The study by Booth et al. (2001) is considered as a one of the leading studies in the growth count ries. It aimed to assess whether capital structure theory is applicable across developing countries with different institutional structures. The data include balance sheets and income statements for the largest companies in each selected country from the course of instruction 1980 to 1990. It include 10 developing countries India, Pakistan, Thailand, Malaysia, Zimbabwe, Mexico, Brazil, Turkey, Jordan, and Korea.The study used multivariate regression outline with dependent variables total debt ratio, long term book debt ratio, and long term market to debt ratio. The independent variables are average tax rate, tangibility, business risk, firm size, firm profitability, and market to book ratio. Booth et al. found that the more profitable the firm the reduce the debt ratio, regardless how the debt ratio is defined. In addition, the higher the tangible assets mix, the higher is the long term debt ratio but the tinyer is the total debt ratio. Finally, it concluded that debt ratios i n developing countries look to be have-to doe withed in the very(prenominal) way by the kindred set of variables that are significant in developed countries.Voulgaris et al. (2004) investigated the determinants of capital structure for Greek manufacturing firms. The study used empanel data of two random examples one for small and spiritualist sized enterprises (SMEs) including 143 firms and another for large sized enterprises (LSEs) including 75 firms for the limit from 1988 to 1996. It used a leverage shape as a dependent variable (short run debt ratio, long run debt ratio, and total debt ratio).On the other hand, It used firm size, asset structure, profitability, growth rate, stock level, and receivables as independent variables. The study suggested that there are similarities and differences in the determinants of capital structure among the two renders. The similarities include that the firm size and growth opportunities positively related to leverage. While, they conf irm that the profitability has a negative relationship to leverage.Moreover, they pointed out the differences that the inventory consequence, and cypher receivables collection menstruation have been found as determinants of debt in SMEs but not in LSEs. Liquidity doest not hazard LSEs leverage, but it affects the SMEs. Finally, they also suggested that there is a positive relationship between profit margins and short term debt ratio only for SMEs. Voulgaris et al. (2004) have debated this arguments as the attitude of banks toward small sized firms should be changed so they provide easier access to long-term debt financing. In addition, enactment of rules that entrust allow transparency of operations in the Greek stock market and a healthier victimization of the newly established capital market for SMEs will assist Greek firms into achieving a stronger capital structure.2.3 Dividends payout ratio literatureDividend payout ratios change between firms and the dividend payout poli cy will impact the agency cost theory. Rozeff (1982) investigated in his study that the dividends policy will be rationalize by appealing the transaction cost and agency cost associated with external finance. Moreover, Rozeff (1982) had found evidences encouraging how the agency costs influence the dividends payout ratio. He found that the firms have distributed lower dividend payout ratios when they have a higher revenue growth, because this growth leads to higher investment expenditures.This evidence supports the view of the investment policy affect on the dividend policy the tenableness for that influences is that would the external finance be costly.Conversely, he found that the firms have distributed higher dividends payouts when insiders hold a lower portion of the equity and (or) a great numbers of shareholders own the outside equity. Rozeff (1982) pointed out that this evidence supports that the dividend payments are part of the firms optimal monitoring and that bonding package reduces the agency costs. Moreover, if the agency cost declines when the dividend payout does and if the transaction cost of external finance increases when the dividend payout is increased as well, then minimisation of these costs will lead to a unique optimal for a given firm.In addition, Hansen, Kumar, and Shome HKS, (1994) pointed out the relevance of the monitoring theory for justifying the dividends policy of regulated electric automobile utilities. From an agency cost perspective, they emphasized their ideas that the dividends get along monitoring of what they call the shareholders regulator conflict. Therefore, it is a monitoring role of dividends. On the contrary, Easterbrooks (1984) has noted that the dividends monitoring of the shareholders managers conflict. They also have observed that the utilities firms have a set of monitoring mechanism for controlling agency cost, depending on the relative cost effectiveness of those costs (Crutchly and Hensen, 1989). The regulator process will impact the conflict between the shareholders and mangers, by mitigate the managers power to appropriate shareholders wealth and consume perquisites (Hansen et al. 1994). On the other hand, they argued this issue by the cost-plus conception, regulators may set into motion of managerial incentive structure that potentially conflicts with shareholders interests, this concept solve the shareholders-regulators concept since the sources of the conflict lies in differences in the perceptions of what constitutes light cost plus. Therefore, the regulation can control some of the agency cost patch exacerbating others. In their study, they conduct also that the managers and shareholders of unregulated firms have a several mechanisms whether, internal or external, for controlling agency cost.In addition, they observed that the dividend policy to reduce the agency theory is not limited, depending on their findings they suggested that the cost of dividend payout poli cy might be below the costs paid by other types of firm. In fact the utilities ships company brinytain high debt ratio that would of importtain as well as equity agency costs.Aivazian et al. (2003b) canvass the dividend policy behaviour of eight acclivitous markets with dividend policies in the US firms in the period from 1980 to 1990. The experiment include firms from Korea, Malaysia, Zimbabwe, India, Thailand, Turkey, Pakistan, and Jordan. They found that it is difficult to predict dividend changes for such emerging markets. This is because the quality of firms with reputations for cutting dividends is somehow similar to those who increase their dividends, than for the US control sample. In addition, period dividends are less sensitive to past dividends than for the US sample of firms. They also found that the Lintner model1 does not work well for the sample of emerging markets.These results indicate that the institutional frameworks in these emerging markets make dividend p olicy a weak proficiency for signaling future earnings and reducing agency costs than for the US sample of firms.Furthermore, Omran and Pointon (2004) investigated the role of dividend policy in determining share prices, the determinants of payout ratios, and the factors that affect the stability of dividends for a sample of 94 Egyptian firms. They found that retentions are more important than dividends in firms with actively traded shares, but that accounting book value is more important than dividends and earnings for non-actively traded firms.However, when they combined twain the actively traded and non-traded firms, they found that dividends are more important than earnings. In the determinants of payout ratios, they found that there is a negative relationship between the leverage ratio and market to book ratio, tangibility, and firm size on the one hand, to the payout ratios in actively traded firms. On the contrary, they also found that there is a positive relationship betwee n the business risk, market to book and firm size (measured by total assets) to payout ratios in non-actively traded firms.Furthermore, for the whole sample, leverage has a positive relationship with payout ratios, while firm size (measured by market capitalization) is negatively related to payout ratios. Finally, the stepwise logistic regression synopsis shows that decreasing dividends is associated with lack of liquidity and overall profitability. In addition, change magnitude dividends is associated with higher overall profitability.2.4 SummaryIn this chapter the relevant literatures addressing the reviews of the agency cost theory related to the financial policies. It also gives a theoretical mount on how the conflicts of interests arise between the agents (managers) and the principal (shareholders). The second and thirdly sections present the determinants of leverage and dividend payout policy. The following chapter will go through the description of data, and data methodol ogy was apply for this dissertation.3. Methodology, Research Design and Data expositionThe aim of the up-to-the-minute study is to investigate firstly, the empirical evidence of the determinants of leverage and dividend policy under the agency theory concept for the period 2002-2007. The majority of the previous studies in the field of capital structure have made in the context of developed countries such as USA and UK. It is important to investigate the main determinants of leverage and dividend policy in developing countries where, capital markets, are less developed, less competitive and execrable from the lack of compatible regulations and sufficient supervisionThis chapter will explain the research methodology of this study. This chapter also identifies the sample of the study. Moreover, it presents an illustration of the econometric proficiencys that have been employed. In addition, this chapter gives a drawing explanation of the limitedation tests used in the study to i dentify which technique is the best for the data set.This chapter organise as follows constituent (3.1) presents data description. subdivision (3.2) presents the sample of the study. Section (3.3) demonstratees the econometric techniques employed in the study. Finally, Section (3.4) provides a brief summary.3.1 Data renderingThe data used in the study are alternate data for companies listed at Amman express Exchange (ASE) for the period of 2002-2007. The data was extracted from the firms course of studyly reports, and from Amman short letter Exchanges publications (The Yearly Companies Guide, and Amman Stock Exchange Monthly statistical Bulletins). Data is readily available in the form of CD and on the website of the Amman Stock Exchange.The reason for the study period selection was to minimize the absent observations for the sample companies. Moreover, a different report system has been used since 2000. The performance of the new reporting system was the result of the tra nsparency act which was launched in 1999, and labored all companies listed in Amman Stock Exchange to disclose their financial information and publish their yearbook reports according to the International Financial reporting Standards. In other words, this data serial publication for the period from 2002-2007 was elect in terms of consistency and equivalence purposes.3.2 Sample of the studyThe sample of the study consists of the Jordanian Manufacturing companies listed on the Amman Stock Exchange for the period of 2002-2007. The total number of the companies listed in ASE at the end of year 2007 was 215. Officially, these companies are divided into four main economic sectors Banks sector, Insurance sector, Services sector and finally industrial sector.Moreover, this study is concerned only with Jordanian manufacturing companies that their stocks are traded in the organized market. It is important to note that the capital structure of financial firms has special singularity when compared to the capital structure of non financial firms, they also have special tax treatment (Lester, 1995).On the other hand, the financial firms have a higher leverage rate, which may tend to make the compend results yielded. Moreover, financial firms their leverage is affected by investor insurance schemes (Rajan and Zingals, 1995). For these reasons, the potential sample of the study consists of non financial (Manufacturing) companies that are put away listed in Amman Stock Exchange. The total number of industrial companies listed in ASE at the end of year 2007 was 88 companies, which are 40.93% of the total number of the companies listed in that market.The study conducts the following criteria in selecting the sample upon the Jordanian manufacturing companies by excluding all the firms that was incorporated after year 2002, and all the firms that have merged or acquired during this period, further, the firms have liquidated or delisted by the Amman Stock Exchange, and fin ally, the study have also excluded the firms that have information missing for that period.The application for those criteria has resulted in 52 samples of manufacturing companies. The data for the variables that are included in the study models is tested using three different econometric techniques which will be discuss briefly in the next sections.3.3 Econometrics techniquesHairs et al. (1998) argued that the application of econometrics technique depends on the nature of data employed in the study, and to what extent it would be realised to the research objectives. In order to find a best and competent data model, the current study employs pooled data technique and panel data abbreviation which is usually estimated by either fixed effect technique or random personal effects technique.The following sections provide a brief discussion on the econometrics techniques that the current study uses to estimate the empirical models.3.3.1 Pooled prevalent least hearty (OLS) techniqueAll the models used in the study have been tested by the pooled data analysis technique. The pooled data is the data that contains pooling of metre series and cross-section(a)al observations (combination of period series and cross-section data) (Gujarati, 2003). The pooled data analysis has many advantages over the pure eon series or pure cross sectional data. It generates more informative data, more variability, less collinearity among variables, more degrees of freedom, and more efficiency (Gujarati, 2003). The underlying assumption behind the pooled analysis is that, the hold back value and the coefficients of all the instructive variables are the same for all the firms, as well as they are constant over age (no specific period or respective(prenominal) aspects). It also assumes that the fallacy term captures the differences between the firms (across-sectional units) over the time.However, (Gujarati, 2003) has pointed out that these assumptions are highly restrictive. He a rgues that although of it is simplicity and advantages, the pooled regression may distort the true picture of the relationship between the dependent and independent variables across the firms. Pooled model will be simply estimated by Ordinary Least foursquare (OLS). However, OLS will be appropriate if no respective(prenominal) (firm) or time specific effects exist. If they exist, the unobserved effects of unobserved individual and time specific factors on dependent variable can be accommodated by using one of the panel data techniques. accord to (Gujarati, 2003) panel data is a special form of pooled data in which the same cross-sectional unit is surveyed over time. It helps researchers to advantageously minimize the problems that arise when there is an omitted variables problems such as time and individual-specific variables and to provide robust parameter estimates than time series and (or) cross sectional data.All the empirical models that have been tested by using pooled data analysis and tested again on the basis of panel data analysis techniques (Fixed payoffs and hit-or-miss Effects).3.3.2 The fixed effects model (FEM)Fixed effects technique allows control for unobserved heterogeneity which describes individual specific effects not captured by observed variables. According to Gujarati (2003) the fixed effect model takes into account the specific effect of each firm the individuality by allowing the intercept vary across individuals (firms), but each individuals intercept does not vary over time. However, it still assumes that the slope coefficients are constant across individuals or over time.Two methods used to control for the unobserved fixed effects within the fixed effects model the first differences and Least Square Dummy variables (LSDV) methods.For the purposes of the current study, (LSDV) was used where two sets of dummy variables (industry, and year dummy variables). The additional dummy variables control for variables that are constant ac ross firms but change over time. Therefore, the combine time and individual (firm) fixed effects model eliminates the omitted variables bias arising both from unobserved factors that are constant over time and unobserved factors that are constant across firms.However, fixed effects model consumes the degrees of freedom, if estimated by the Least Square Dummy Variable (LSDV) method and, too many dummy variables are introduced (Gujarati, 2003). Furthermore, with too many variables used as regressors in the models, there is the possibility of multicollinearity. It is worth noting that OLS technique used in estimating fixed effects model.3.3.3 The Random Effects Model (REM)By contrast, fixed effects model, the unobserved effects in random effects model is captured by the illusion term (it) consisting of an individual specific one (ui) and an overall destiny (vit) which is the combined time series and cross-section error. Moreover, it treats the intercept coefficient as a random varia ble with a mean value (0) of all cross-sectional (firms) intercepts and the error component represents the random deviation of individual intercept from this mean value (Gujarati, 2003). Consequently, the individual differences in the intercept values of each firm are reflected in the error term (ui).On the other hand, the Generalized Least Square (GLS) used in estimating random affects model.This is because the GLS technique takes into account the different correlativity structure of the error term in the Random Effect Model (REM) (Gujarati, 2003).3.3.4 Statistical specification testsThe study uses three specification tests to identify which empirical method is the best. These tests are used for testing the fixed effect model versus the pooled model (F-statistics), the random effect model versus pooled model (Lagrange Multiplier test) (LM), and the fixed effect model versus the random effect model (Hausman test). The following sub-sections offer brief discImpacts on Agency Cost Th eoryImpacts on Agency Cost TheoryThe main purpose of this research is to investigate how the determinants of the capital structure (leverage) and the dividend payout policy impact the agency cost theory. Literature review part picked up the relevant material related to agency theory, leverage, and dividends payout policy.The literature review section goes through the agency cost literature, and explores the financial policies the capital structure (leverage), and the dividend payout policy and that these policies would influence the agency cost theory.2.1 Agency theory LiteratureThe notion of the agency theory is widely used in economics, finance, marketing, legal, and social sciences Jensen and Meckling (1976) initiated and developed it. Capital structure (leverage) for the firms is determined by agency costs, i.e., costs related to conflict of interests between various groups including managers, which have claims on the firms resources (Harris and Raviv, 1991).Jensen and Meckling (1976) defined the agency relationship as a contract under which one or more persons (the principal) engage another person (the agent), to perform some service on their behalf which involves delegating some decision making authority to the agent pp.308. Assuming that both parties utility maximizes, the agents are not possible to act in the best interest of the principal.Furthermore, Jensen and Meckling (1976) contended that the principal can limit divergences from his interest by establishing appropriate incentives for the agent, and by incurring monitoring costs (pecuniary and non pecuniary), which are designed to limit the aberrant activities of the agent. Jensen and Meckling (1976) argued that the agency costs are unavoidable, since the agency costs are borne entirely by the owner. Jensen and Meckling (1976) contended that the owner is motivated to see these costs minimized.Authors who initiated and developed the agency theory have argued that if the owner manages a wholly owned firm, then he can make operating decisions that maximise his utility. The agency costs are generated if the owner manager sells equity claims on the firms, which are identical to his.It also generated by the divergence between his interest and those of the outside shareholders, since he then bears only a fraction of the costs of any non-pecuniary benefits he takes out maximizing his own utility (Jensen and Meckling, 1976).Jensen and Meckling (1976) suggested two types of conflicts in the firm First of all, the conflict between shareholders and managers arises because managers hold less than a hundred percent of the residual claim. Therefore, they do not capture the entire gain from their profit enhancement activities, but they do bear the entire cost of these activities. For example, managers can invest less effort in managing firm resources and may be able to transfer firm resources to their own, personal benefit, i.e., by consuming perquisites such as a fringe benefits. The manag er bears the entire cost of refraining from these activities but captures only a fraction of the gain.As a result, managers over indulge in these interests relative to the level that would maximize the firm value. This inefficiency reduced the large fraction of the equity owned by the manager. Holding constant the managers absolute investment in the firm, increases in the fraction of the firm financed by debt increases the managers share of the equity and mitigates the loss from conflict between the managers and shareholders.Furthermore, as pointed out by Jensen (1986), since debt commits the firm to pay out cash, it reduces the amount of free cash flow available to managers to engage in these types of interests.As a result, this reduction of the conflict between managers and shareholders will constitute the benefit of debt financing.Second, they also suggested that the conflict between debt holders and shareholders arises because the debt contract, gives shareholders an incentive t o invest sub optimally. Especially when the debt contract provides that, if an investment yields large returns, well above the face value of the debt, shareholders capture most of the gain. However, if the investment fails, debt holders bear the consequences. Therefore, shareholders may benefit from investing in very risky projects, even if they are under valued such investments result in an adverse in the value of debt.Lasfer (1995) argued that debt exacerbates the conflict between debt holders and shareholders. Shareholders will benefit from investments in risky projects at the expense of debt holders.If the investment yields higher return than the face value of debt, shareholders capture most of the gain, however, if the investment fails, debt holders lose, given that. Therefore, shareholders protected by the limited liability.On the other hand, if the benefits captured by debt holders reduce the returns to shareholders, then an incentive to reject positive net present projects h as created. Thus, the debt contract gives shareholders incentives to invest sub optimally. In addition, Myers (1977) argued that the firms with many growth opportunities should not be financed by debt, to reduce the negative net value projects.Furthermore, some of arguments have been debated that the magnitude of the agency costs varies among firms. It will depend on the tastes of managers, the ease with which they can exercise their own preferences as opposed to value maximization in decision making, and the costs of monitoring and bonding activities. Therefore, the agency costs depend upon the cost of measuring the managers performance and evaluating it (Jensen and Meckling, 1976). (Jensen, 1986) either points out that when firms make their financing decision, they evaluate the advantages that may arise from the resolution of the conflicts between managers, shareholders and from long run tax shields.In addition, Lasfer (1995) argues that debt finance creates a motivation for manag ers to work harder and make better investment decisions. On the other hand, debt works as a disciplining tool, because default allows creditors the option to force the firm into liquidation. Debt also generates information that can be used by investors to evaluate major operating decisions including liquidation (Harris and Raviv, 1990).Jensen (1986) debated that when using debt without retention of the proceeds of the issue, bonds the managers to meet their promise to pay future cash flows to the debt holders. Thus, debt can be an effective substitute for dividends. By issuing debt in exchange for stock, managers are bonding their promise to pay out future cash flows in a way that cannot be accomplished by simple dividend increases.Consequently, managers give recipients of the debt the right to take the firm to the bankruptcy court if they do not maintain their commitment to make the interest and principle payments. Thus, debt reduces the agency costs of free cash flow by reducing t he cash flow available for spending at the discretion of managers. Jensen (1986) claimed that these control effects of debt are a potential determinant of capital structure.In practice, it is possible to reduce the owner manager non pecuniary benefits by using these instruments external auditing, formal control systems, budget restrictions, and the establishment of incentive compensation systems serve to identify the managers interests more closely with those of the outside shareholders (Jensen and Meckling, 1976).Jensen (1986) suggested that leverage and dividend may act as a substitute mechanism to reduce the agency costs. Agency cost models predict that dividend payments can reduce the problems related to information asymmetry. Dividend payments might be consider also as a mechanism to reduce cash flow under management control, and help to mitigate the agency problems (Rozeff, 1982, and Easterbrook, 1984). Therefore, paying dividends may have a positive impact on the firms value. Agency theory posits that the dividend mechanism provides an incentive for managers to reduce the costs related to the principal agent relationship, one way to reduce agency costs is to increase dividends Baker and Powell (1999). They also claim that firm use the dividends use as a tool to monitor the management performance. Moreover, Easterbrook (1984) and Jensen (1986) argue that agency costs exist in firms because managers may not always want to maximize shareholders wealth due to the separation of ownership and control.Jensen (1986) addresses the free cash flow theory, in terms of this theory the conflict of interest between managers and stockholders is rooted in the presence of informational and self interest behavior. He defines the free cash flow as cash flow in excess of that required to fund all projects that have positive net present value when discounted at the relevant cost of capital (Jensen,1986). Within the context of the free cash flow hypothesis, firms prefer to in crease their dividends and distribute the excess free cash flow in order to reduce agency costs. Consequently, markets react positively to this type of information. This theory is attractive because it is consistent with the evidence about investment and financing decisions (Jensen, 1986, Frankfurter and Wood, 2002).2.2 Leverage LiteratureThis section reviews the determinants of capital structure by different relevant literatures. Titman and Wessels (1988) study is considered to be one of the leading studies in the developed markets. They tried to extend the empirical work in capital structure theory by examining a much broader set of capital structure theories, and to analyze measures of short term, long term, and convertible debt. The data covers the US industrial companies from 1974 to 1982, and they used a factor analytic approach for estimating the impact of unobservable attributes on the choice of corporate debt ratios.As a result, the study confirms these factors, collateral values of assets, non-debt tax shields, growth, and uniqueness of the business, industry classification, firm size, and firm profitability. They also found that there is a negative relationship between debt levels and the uniqueness of the business. In addition, short term debt ratios have a negative relationship to firm size. However, they do not provide support for the effect on debt ratios arising from non debt tax shields, volatility, collateral value of assets, and growth.In Jordan, Al-Khouri and Hmedat (1992) aimed to find the effect of the earnings variability on capital structure of Jordanian corporations from the period from 1980 to 1988. They included 65 firms. The study used a multivariate regression approach with financial leverage as the dependent variable measured in three ways first, long term debt over total assets, secondly, short term debt over total assets, and finally, short term debt plus long term debt over total assets.The standard deviation of the earnings va riability and the size of the firm measured as independent variables. They concluded that the firm size is considered as a significant factor in determining the capital structure of the firm, and insignificant relationship between the earning variability and financial leverage of the firm. Furthermore, they suggest that the type of industry is not considered as a significant factor in determining the capital structure of the firm.Rajan and Zingales (1995) provided international evidence about the determinants of capital structure. They examined the capital structure in other countries related to factors similar to those that influence United States firms. The database contains 2583 companies in the G7 countries. They used regression analysis with the firms leverage (total debt divided by total debt plus total equity) as the dependent variable.Tangible assets, market to book ratio, firm size, and firm profitability used as independent variables. They found that in market bases firms with a lot of fixed assets are not highly levered, however, they supported that a positive relationship exists between tangible assets, and firms size, and capital structure (leverage). On the contrary, they confirmed that there is a negative relationship between leverage and the market to book ratio, and profitability.From the capital structure literature, Ozkan (2001) also investigated that the determinants of the target capital structure of firms and the role of the adjustment process in the UK using a sample of 390 firms. The multiple regression approach (panel data) was used to measure the debts by total debt to total assets, on the one hand. He also used in his model, non debt tax shield, firm size, liquidity, firm profitability, and firm growth as an independent variables. He confirmed that the profit, liquidity, non debt tax shield, and growth opportunities have a negative relationship to capital structure (leverage). Finally, he supported that there is a positive effect ari sing from size of firms on leverage. The study provided evidence that the UK firms have long term target leverage ratios and that they adjust quickly to their target ratios.The study by Booth et al. (2001) is considered as a one of the leading studies in the developing countries. It aimed to assess whether capital structure theory is applicable across developing countries with different institutional structures. The data include balance sheets and income statements for the largest companies in each selected country from the year 1980 to 1990. It included 10 developing countries India, Pakistan, Thailand, Malaysia, Zimbabwe, Mexico, Brazil, Turkey, Jordan, and Korea.The study used multivariate regression analysis with dependent variables total debt ratio, long term book debt ratio, and long term market to debt ratio. The independent variables are average tax rate, tangibility, business risk, firm size, firm profitability, and market to book ratio. Booth et al. found that the more pro fitable the firm the lower the debt ratio, regardless how the debt ratio is defined. In addition, the higher the tangible assets mix, the higher is the long term debt ratio but the smaller is the total debt ratio. Finally, it concluded that debt ratios in developing countries seem to be affected in the same way by the same set of variables that are significant in developed countries.Voulgaris et al. (2004) investigated the determinants of capital structure for Greek manufacturing firms. The study used panel data of two random samples one for small and medium sized enterprises (SMEs) including 143 firms and another for large sized enterprises (LSEs) including 75 firms for the period from 1988 to 1996. It used a leverage model as a dependent variable (short run debt ratio, long run debt ratio, and total debt ratio).On the other hand, It used firm size, asset structure, profitability, growth rate, stock level, and receivables as independent variables. The study suggested that there are similarities and differences in the determinants of capital structure among the two samples. The similarities include that the firm size and growth opportunities positively related to leverage. While, they confirm that the profitability has a negative relationship to leverage.Moreover, they pointed out the differences that the inventory period, and account receivables collection period have been found as determinants of debt in SMEs but not in LSEs. Liquidity doest not affect LSEs leverage, but it affects the SMEs. Finally, they also suggested that there is a positive relationship between profit margins and short term debt ratio only for SMEs. Voulgaris et al. (2004) have debated this arguments as the attitude of banks toward small sized firms should be changed so they provide easier access to long-term debt financing. In addition, enactment of rules that will allow transparency of operations in the Greek stock market and a healthier development of the newly established capital mar ket for SMEs will assist Greek firms into achieving a stronger capital structure.2.3 Dividends payout ratio literatureDividend payout ratios vary between firms and the dividend payout policy will impact the agency cost theory. Rozeff (1982) investigated in his study that the dividends policy will be rationalize by appealing the transaction cost and agency cost associated with external finance. Moreover, Rozeff (1982) had found evidences supporting how the agency costs influence the dividends payout ratio. He found that the firms have distributed lower dividend payout ratios when they have a higher revenue growth, because this growth leads to higher investment expenditures.This evidence supports the view of the investment policy affect on the dividend policy the reason for that influences is that would the external finance be costly.Conversely, he found that the firms have distributed higher dividends payouts when insiders hold a lower portion of the equity and (or) a greater numbers of shareholders own the outside equity. Rozeff (1982) pointed out that this evidence supports that the dividend payments are part of the firms optimum monitoring and that bonding package reduces the agency costs. Moreover, if the agency cost declines when the dividend payout does and if the transaction cost of external finance increases when the dividend payout is increased as well, then minimization of these costs will lead to a unique optimum for a given firm.In addition, Hansen, Kumar, and Shome HKS, (1994) pointed out the relevance of the monitoring theory for explaining the dividends policy of regulated electric utilities. From an agency cost perspective, they emphasized their ideas that the dividends promote monitoring of what they call the shareholders regulator conflict. Therefore, it is a monitoring role of dividends. On the contrary, Easterbrooks (1984) has noted that the dividends monitoring of the shareholders managers conflict. They also have observed that the utilit ies firms have a discipline of monitoring mechanism for controlling agency cost, depending on the relative cost effectiveness of those costs (Crutchly and Hensen, 1989).The regulator process will impact the conflict between the shareholders and mangers, by mitigate the managers power to appropriate shareholders wealth and consume perquisites (Hansen et al. 1994). On the other hand, they argued this issue by the cost-plus concept, regulators may set into motion of managerial incentive structure that potentially conflicts with shareholders interests, this concept solve the shareholders-regulators concept since the sources of the conflict lies in differences in the perceptions of what constitutes fair cost plus. Therefore, the regulation can control some of the agency cost while exacerbating others. In their study, they conduct also that the managers and shareholders of unregulated firms have a several mechanisms whether, internal or external, for controlling agency cost.In addition, t hey observed that the dividend policy to reduce the agency theory is not limited, depending on their findings they suggested that the cost of dividend payout policy might be below the costs paid by other types of firm. In fact the utilities company maintain high debt ratio that would maintain as well as equity agency costs.Aivazian et al. (2003b) compare the dividend policy behaviour of eight emerging markets with dividend policies in the US firms in the period from 1980 to 1990. The sample included firms from Korea, Malaysia, Zimbabwe, India, Thailand, Turkey, Pakistan, and Jordan. They found that it is difficult to predict dividend changes for such emerging markets. This is because the quality of firms with reputations for cutting dividends is somehow similar to those who increase their dividends, than for the US control sample. In addition, current dividends are less sensitive to past dividends than for the US sample of firms. They also found that the Lintner model1 does not work well for the sample of emerging markets.These results indicate that the institutional frameworks in these emerging markets make dividend policy a weak technique for signaling future earnings and reducing agency costs than for the US sample of firms.Furthermore, Omran and Pointon (2004) investigated the role of dividend policy in determining share prices, the determinants of payout ratios, and the factors that affect the stability of dividends for a sample of 94 Egyptian firms. They found that retentions are more important than dividends in firms with actively traded shares, but that accounting book value is more important than dividends and earnings for non-actively traded firms.However, when they combined both the actively traded and non-traded firms, they found that dividends are more important than earnings. In the determinants of payout ratios, they found that there is a negative relationship between the leverage ratio and market to book ratio, tangibility, and firm size on the one hand, to the payout ratios in actively traded firms. On the contrary, they also found that there is a positive relationship between the business risk, market to book and firm size (measured by total assets) to payout ratios in non-actively traded firms.Furthermore, for the whole sample, leverage has a positive relationship with payout ratios, while firm size (measured by market capitalization) is negatively related to payout ratios. Finally, the stepwise logistic regression analysis shows that decreasing dividends is associated with lack of liquidity and overall profitability. In addition, increasing dividends is associated with higher overall profitability.2.4 SummaryIn this chapter the relevant literatures addressing the reviews of the agency cost theory related to the financial policies. It also gives a theoretical background on how the conflicts of interests arise between the agents (managers) and the principal (shareholders). The second and third sections present the deter minants of leverage and dividend payout policy. The following chapter will go through the description of data, and data methodology was employed for this dissertation.3. Methodology, Research Design and Data DescriptionThe aim of the current study is to investigate firstly, the empirical evidence of the determinants of leverage and dividend policy under the agency theory concept for the period 2002-2007. The majority of the previous studies in the field of capital structure have made in the context of developed countries such as USA and UK. It is important to investigate the main determinants of leverage and dividend policy in developing countries where, capital markets, are less developed, less competitive and suffering from the lack of compatible regulations and sufficient supervisionThis chapter will explain the research methodology of this study. This chapter also identifies the sample of the study. Moreover, it presents an illustration of the econometric techniques that have be en employed. In addition, this chapter gives a brief explanation of the specification tests used in the study to identify which technique is the best for the data set.This chapter structured as follows Section (3.1) presents data description.Section (3.2) presents the sample of the study. Section (3.3) discusses the econometric techniques employed in the study. Finally, Section (3.4) provides a brief summary.3.1 Data DescriptionThe data used in the study are secondary data for companies listed at Amman Stock Exchange (ASE) for the period of 2002-2007. The data was extracted from the firms annual reports, and from Amman Stock Exchanges publications (The Yearly Companies Guide, and Amman Stock Exchange Monthly Statistical Bulletins). Data is readily available in the form of CD and on the website of the Amman Stock Exchange.The reason for the study period selection was to minimize the missing observations for the sample companies. Moreover, a different reporting system has been used si nce 2000. The application of the new reporting system was the result of the transparency act which was launched in 1999, and forced all companies listed in Amman Stock Exchange to disclose their financial information and publish their annual reports according to the International Financial Reporting Standards. In other words, this data series for the period from 2002-2007 was chosen in terms of consistency and comparability purposes.3.2 Sample of the studyThe sample of the study consists of the Jordanian Manufacturing companies listed on the Amman Stock Exchange for the period of 2002-2007. The total number of the companies listed in ASE at the end of year 2007 was 215. Officially, these companies are divided into four main economic sectors Banks sector, Insurance sector, Services sector and finally Industrial sector.Moreover, this study is concerned only with Jordanian manufacturing companies that their stocks are traded in the organized market. It is important to note that the cap ital structure of financial firms has special characteristic when compared to the capital structure of non financial firms, they also have special tax treatment (Lester, 1995).On the other hand, the financial firms have a higher leverage rate, which may tend to make the analysis results biased. Moreover, financial firms their leverage is affected by investor insurance schemes (Rajan and Zingals, 1995). For these reasons, the potential sample of the study consists of non financial (Manufacturing) companies that are still listed in Amman Stock Exchange. The total number of industrial companies listed in ASE at the end of year 2007 was 88 companies, which are 40.93% of the total number of the companies listed in that market.The study conducts the following criteria in selecting the sample upon the Jordanian manufacturing companies by excluding all the firms that was incorporated after year 2002, and all the firms that have merged or acquired during this period, further, the firms have liquidated or delisted by the Amman Stock Exchange, and finally, the study have also excluded the firms that have information missing for that period.The application for those criteria has resulted in 52 samples of manufacturing companies. The data for the variables that are included in the study models is tested using three different econometric techniques which will be discuss briefly in the next sections.3.3 Econometrics techniquesHairs et al. (1998) argued that the application of econometrics technique depends on the nature of data employed in the study, and to what extent it would be realised to the research objectives. In order to find a best and adequate data model, the current study employs pooled data technique and panel data analysis which is usually estimated by either fixed effect technique or random effects technique.The following sections provide a brief discussion on the econometrics techniques that the current study uses to estimate the empirical models.3.3.1 Pooled Ordinary Least Square (OLS) techniqueAll the models used in the study have been tested by the pooled data analysis technique. The pooled data is the data that contains pooling of time series and cross-sectional observations (combination of time series and cross-section data) (Gujarati, 2003). The pooled data analysis has many advantages over the pure time series or pure cross sectional data. It generates more informative data, more variability, less collinearity among variables, more degrees of freedom, and more efficiency (Gujarati, 2003). The underlying assumption behind the pooled analysis is that, the intercept value and the coefficients of all the explanatory variables are the same for all the firms, as well as they are constant over time (no specific time or individual aspects). It also assumes that the error term captures the differences between the firms (across-sectional units) over the time.However, (Gujarati, 2003) has pointed out that these assumptions are highly restric tive. He argues that although of it is simplicity and advantages, the pooled regression may distort the true picture of the relationship between the dependent and independent variables across the firms. Pooled model will be simply estimated by Ordinary Least Square (OLS). However, OLS will be appropriate if no individual (firm) or time specific effects exist. If they exist, the unobserved effects of unobserved individual and time specific factors on dependent variable can be accommodated by using one of the panel data techniques.According to (Gujarati, 2003) panel data is a special form of pooled data in which the same cross-sectional unit is surveyed over time. It helps researchers to substantially minimize the problems that arise when there is an omitted variables problems such as time and individual-specific variables and to provide robust parameter estimates than time series and (or) cross sectional data.All the empirical models that have been tested by using pooled data analysi s and tested again on the basis of panel data analysis techniques (Fixed Effects and Random Effects).3.3.2 The fixed effects model (FEM)Fixed effects technique allows control for unobserved heterogeneity which describes individual specific effects not captured by observed variables. According to Gujarati (2003) the fixed effect model takes into account the specific effect of each firm the individuality by allowing the intercept vary across individuals (firms), but each individuals intercept does not vary over time. However, it still assumes that the slope coefficients are constant across individuals or over time.Two methods used to control for the unobserved fixed effects within the fixed effects model the first differences and Least Square Dummy variables (LSDV) methods.For the purposes of the current study, (LSDV) was used where two sets of dummy variables (industry, and year dummy variables). The additional dummy variables control for variables that are constant across firms but change over time. Therefore, the combine time and individual (firm) fixed effects model eliminates the omitted variables bias arising both from unobserved factors that are constant over time and unobserved factors that are constant across firms.However, fixed effects model consumes the degrees of freedom, if estimated by the Least Square Dummy Variable (LSDV) method and, too many dummy variables are introduced (Gujarati, 2003). Furthermore, with too many variables used as regressors in the models, there is the possibility of multicollinearity. It is worth noting that OLS technique used in estimating fixed effects model.3.3.3 The Random Effects Model (REM)By contrast, fixed effects model, the unobserved effects in random effects model is captured by the error term (it) consisting of an individual specific one (ui) and an overall component (vit) which is the combined time series and cross-section error. Moreover, it treats the intercept coefficient as a random variable with a mean val ue (0) of all cross-sectional (firms) intercepts and the error component represents the random deviation of individual intercept from this mean value (Gujarati, 2003). Consequently, the individual differences in the intercept values of each firm are reflected in the error term (ui).On the other hand, the Generalized Least Square (GLS) used in estimating random affects model.This is because the GLS technique takes into account the different correlation structure of the error term in the Random Effect Model (REM) (Gujarati, 2003).3.3.4 Statistical specification testsThe study uses three specification tests to identify which empirical method is the best. These tests are used for testing the fixed effect model versus the pooled model (F-statistics), the random effect model versus pooled model (Lagrange Multiplier test) (LM), and the fixed effect model versus the random effect model (Hausman test). The following sub-sections offer brief disc

Organizational Culture Case Study: BrainGame

organizational Culture Case Study BrainGameIntroductionThe importance of mortal and organisational civilization argon vital comp geniusnts for business to succeed. BrianGame has the organisational culture of making global volunteers as their serveers to develop games. However, the vie among BrainGames poll guidance now considers changing the culture of volunteers to full- sentence employees, which raise issues on the relationship between volunteers and BrainGame. This essay will examine the challenges that BrainGame face and provide tri exceptes based on the challenges for BrainGame. affirm and conclave counterpointOne challenge for BrainGame is conceive. Some top steering want to replace volunteers with full- sentence developers. This is because volunteers are not harvest-homeive and hard to manage, more than than a thousand crappy ideas proposed, according to Rutger Ekberg, the head of product breeding (Sutton et al, 2014).Figure 1 (Dietz and Hartog, 2006)People like Rutger from BrainGame belongs to deterrence-based, they dont go forvolunteers and learn no positive expectation everywhere volunteers. They intrust if no full-time experienced developers used, hence what if game fails and the potential of losing investors. This is also a root word problem. The companys top management are task conflicts because of the disagreement among top management about the content and outcomes of volunteers mental process (Wit et al, 2012). Task conflict may hurt more proximal group outcomes, such as trust from volunteers and volunteers satisf pull through. This latter serve is especially likely when volunteers interpret the companys diverging viewpoints as a negative sound judgment of their own abilities and competencies (Wit et al, 2012). If volunteers are not trusted, then the company will not pass away effectively, and influence companys execution like productiveness, communication, and raise problem of demotivating volunteers, reduce their com mitment to the company. jibe to Mayer and Gavin (1999) employees cognitive operation will suffer if they believe their racewayer cant be trusted. Some top management such as Lena, the CEO, are experienceledge-based to volunteers. They believe volunteers saves m singley and provide renounce marketing for the company as well as free product development, just they need to convenience pack who distrust volunteers so BrainGame can score toward the same maneuver (Dietz and Hartog, 2006).MotivationAnother challenge is motivation. BrainGame inevitably to motivate volunteers so they can be more efficient. Volunteers who work for BrainGame are unpaid, they work because they want to create positive, nonviolent, commercially viable product that reward empathy and caring quite an than aggression and revenge (Sutton et al, 2014).Figure 2 (Herzberg F, 1987)Self-determination theory explain the motivation for peoples growth and kind-hearted development (Deci and Ryan, 2004). The theory explains the intimate and extrinsic motivational factors are self-determined by ones own will (Deci et al, 1991). From guess 2, it shows handment, recognition and work itself and responsibility are the top four motivation factors, which are all intrinsic motivation. These motivation factors are correlated with BrainGames volunteers because they want be respected by others, substantiate for their work and genuinely make a difference. The problem between BrainGame and volunteers is some people in BrainGame dont recognize their work, they distrust them. Which could principal sum to more ineffective production and creativity because volunteers are discovered they are not recognized for what they do and what they contribute, therefore will not fully commit to the job or even leave. If BrainGame wants to keep volunteers, then they need to tending volunteers touch what they want so they can commit to the job. organizational CultureOrganizational culture is another challenge for Brai nGame. The company have the culture of volunteers instead of full time developers. Klaus called this culture a movement (Sutton et al, 2014). However, the culture has been in question of volunteers should be replaced by full-time developers.Figure 3 (Hartnell et al, 2011)BrainGames culture is most likely to be the adhocracy culture pillow slip, because this type of culture is externally oriented with bendable organizational structure (Hartnell et al, 2011). BrainGame has a very flexible organizational structure with over thousands of volunteers as developers some the world (Sutton et al, 2014). The fundamental assumption in adhocracy cultures is that change fosters the creation or garnering of new resources (Hartnell et al, 2011). This organizational type encourages people to be innovative. However, BrainGames topical culture doesnt work efficiently. Volunteers produced many ideas but most ideas are not viable to use and time consuming. Moreover, BrainGame initial ideas of using volunteers are because of cost saving. Since BrainGame are making avail now, the company inescapably to rethink its organizational culture, to continue with volunteers or move on to full time developers. The company needs to also consider the risk of losing volunteers and the possibility of turn thousands of brand evangelists to brand haters since volunteers provides free marketing and advertising (Sutton et al 2014). leadBrainGames top management have the characteristics of transactional drawing cardship with laissez-faire(prenominal) and management by action (passive) style. They hesitate when make decisions and provided make interventions if standards are not met (Judge and Piccolo, 2004). According to research, laissez-faire and management by action (passive) are negatively correlated with leading criteria (Judge and Piccolo, 2004). Based on the case, BrainGames top management have constant debate on should they keep volunteers or replace them with full time developers. H owever, no one could come up with a defiant solution. BrainGames top management especially Lena needs to change their lead styles, to be more inspired to other people, have vision and active.Question 2Goal-Setting TheoryAs challenges addressed above, it is all important(p) to make appropriate recommendations to cooperate BrainGame solve its problems. One recommendation is using the finis context of use theory to solve motivation problem.Figure 4 (Lunenburg, 2011)Figure 4 shows the process of inclination-setting theory. The two cognitive determinants of behavior are values and intentions ( marks) (Lunenburg F.C, 2011). As for BrainGame, the goal for volunteers is try to achieve self-actualization, to create positive, commercially viable product and have the desire to do things consistent with them. Goals leads to vigilance and action which rack up motivation and lead to higher effort with persistence. Goals help people to find the right strategies for themselves so that they can perform at the level they can to achieve that goal. Finally, goal achievement can lead to sense of accomplishment and further motivation, or frustration and lower motivation if failed to accomplish the goal. (Lunenburg F.C, 2011).The goal setting theory under the right conditions will help BrainGame set goals for volunteers to achieve efficiency and productivity. The first graduation for goal setting theory is people needs to accept goal first, so that they can be motivated to achieve their goal target (Locke and Latham, 2002). Then they need to commit to their goals, two factors help people to commit their goals are self-efficacy and importance (Locke and Latham, 2002). Importance are factors that makes people stick to their goal, including what they expected for their result (Locke and Latham, 2002). According to Erez et al (1985) shows by having involvement in setting its own goals will make them accept their goals at a higher rate because they feel under control of their go al setting. By involved in goal setting, they will have a bring out understanding of the task and what will they expect as a result. Self-efficacy is how much people believe they can achieve their goal (Locke and Latham, 2002). Self-efficacy can be reform by provide training for volunteers such as online training, this will help increase their skills which leads to better productivity and efficiency. Through effective and regular communication between the company and volunteers to encourage volunteers, this will help gain their confidences (Locke and Latham, 2002). Through training and regular communication, individuals will have a better understanding of their own goal importance and more self-confidence towards their goal, therefore improve goal commitment (Locke and Latham, 2006).A goal needs to be particularised and measurable, goals which are unclear are confusing and normally have little effect on motivation. Making goal clear allows people to focus on at the right directio ns and act related to goal (Lock and Latham, 2002). Volunteers with specific goal target will have better understanding of the task, results in efficiency.Goal is proven to be a motivational factor for people to follow if problematicaly is considered, it gives the inducing for people to challenge. If goal target is too difficult, it will demotivate people and reduce their commitment. Goal difficulty not just affect individuals behavior, it will also affect at organizational level. In the late 1960s, Fords goal to gain market share against international competitors, goal was set at tight deadlines and many levels of management signed off on unperformed safety check to the newly development car- the Ford Pinto, results in 53 consumer deaths, the challenging goal was met but companys unethical behavior has damaged its reputation (Ordez et al, 2009). Setting goals that are too high or difficult not only reduce motivation and commitment but also can create dishonesty, cutting corners a nd corruption (Bennett, 2009). BrainGame needs to be clear of their goal settings, specific and measurable, not setting high goals that demotivating volunteers, since they are not contract bound by the company, demotivating them will only damage the company.Feedback is essential for volunteers to retain their goal commitment and effectiveness. It is important to give volunteers with constant feedbacks on their work so they can aware of all the progress and mis cultivates they made during their work, or it will become difficult to monitor the level of effort that needs in order to achieve the goal target more sufficiently (Sorrentino, 2006). Additionally, feedback gives the advantage that allows individual to spot their personalised disadvantages towards their goals, and allows promptly adjustment to be done (Smith and Hitt, 2005). By having feedbacks, volunteers will know their work has been checked and evaluated and people are recognizing their work. Provide positive feedbacks to volunteers means BrainGame recognize their work. Whereas negative feedbacks will also motivate them and increase their effort to work if they have high self-efficacy. In contrast, volunteers with low self-efficacy will respond with less effort and demotivated to negative feedbacks (Bandura and Cervone, 1986).However, goal setting theory have limitation. Concentrating only to goal can cause people to buy the farm away other factors in your environment (Simons and Chabris, 1999). When attention is focused on goal, people become inattention to other factors, which could sometimes cause people to miss the bigger picture.Transformational attractershipBrainGame needs to transform from transactional leadership to transformational leadership style in order to run the company more efficiently. Transformational leaders are more effective because they are more creative, and they encourage and help the people who followed them to be creative (Shin and Zhou, 2003). Companies with transformati onal leaders are more decentralized, managers are more likely to take risks, compensation plans are aim for long-term results (Ling et al, 2008). According to a study of information technology workers in China found giving more power to people will create positive personal control among workers, thus increased their creativity at work (Zhang and Bartol, 2010). Companies with transformational leaders also have better agreement with managers about goals and strategies, this leads to better and efficient group and organizational operations and performance (Colbert et al 2008). explore from 203 team members and 60 leaders in a business unit found high performance is related to individual transformational leadership, and high group performance is also related to team focused transformational leadership (Hetland 2007 Lowe 1996). To have transformational leaders is important for BrainGame because there has been debates on volunteers, with people having different opinions but no one have p rofound and extraordinary effect to influence other people, the level of distrust to volunteers has raised in top management. As a leader, it is important to trust and guide your people with right directions. Transformational leaders take for higher levels of trust, which in result reduce their followers anxiety and fear (liu et al, 2010). Followers who trust their leader are confident they will be protected for their interest and rights (Hosmer, 1995). BrainGames leaders needs act as transformational leaders and to trust their volunteers because volunteers are there main developer of game. The business is attracting investment and best ideas were generated from volunteers. Volunteers want to achieve recognition and trust is the best way to recognize their work. Transformational leaders encourage creativity and support peoples idea, by encouraging their ideas and guide them towards right direction (Schaubroeck et al, 2011). This will help volunteers improve their skills, and improv e their productivity and commitment. preparational activity is an effective way to become a better transformational leader. Training include t apiece skills on trust building and mentoring, learn how to analysis and evaluate a situation and apply those skills into their own styles, and evaluate in a given situation, which leader behaviors is appropriate to use (Brady, 2010). For BrainGames top management, train them gives them more skills to evaluate the current situation, and provide long-term strategy, and better skills to build trust and communication. with volunteers.To conclude, BrainGame currently in debate over should volunteers be replaced by full-time developers. To do so, it could lose trust from volunteers and demotivate them. Organizational culture will have to change, and leadership style needs to change in order to run the company more effectively. Goal-setting theory is a good method to solve some challenges faced by BrainGame. By goal-setting, volunteers will have b etter understanding of their task and motivate them, which will increase their productivity and efficiency and this is one of the most important factors why BrainGame want to replace volunteers. However, goal difficulty needs to be careful set or it could cause negative clash. By transit from transitional to transformational leadership, leaders of BrainGame will motivate, communicate better with employees. Transformational leadership skills can be improved with training. Nevertheless, BrainGame should retain volunteers, and build a better strategy around them to run more efficiently.Question 3It was a group contrive I worked with other group members. Group leader set goals for each one of us, but goal was not specific enough. After the deadline, one group member completely misunderstood the task, which the whole team project was stagnated. That group member was demotivated, but we decided to stop our tasks and help him to finish his first. One of the problem for us while we are do ing the project is lack of communication as a group, we all focused on our part but each part is correlated, lack of communication with unspecific goal leads to this problem. After this, we all decided to communicate and help each other more, we all motivated and the project in the end finished faster than the deadlines. I think I will apply motivation to my career, because through self-determination theory, I will know which factors will influence me most to motivate me and my teammates.Word count 2456References Bandura, A., and Cervone, D. (1986) Differential Engagement in Self-Reactive Influences in Cognitively-Based Motivation, Organizational Behavior and Human Decision Processes, 38pp.92-113.Bennett, D. (2009) Ready, aim fail. Why setting goals can backfire. The Boston Globe, C1.Brady, D. (2010) The boost Star of CEO Consulting, TMG, Available https//miles-group.com/article/rising-star-ceo-consulting accessed date 16/12/2016Colbert, A. E., Kristof-Brown, A. E ., Bradley, B.H . and Barrick, M.R. (2008)CEO Transformational Leadership The fictitious character of Goal Importance Congruence in Top Management Teams,Academy of Management Journal , 51, (1) pp.81-96.Deci, E. L., Vallerand, R. J., Pellitier, L. G. and Ryan, R. M. (1991). Motivation and education The self-determination perspective. Educational Psychology, 26(3), pp.325 346.Deci, E.L., Ryan, R.M. (2004) Handbook of Self-Determination Research Rochester, NY The University of Rochester Press.Dietz, G. and Hartog, D. (2006) Measuring Trust Inside Organizations, Personnel review, 35(3) pp.557-588Erez, M., Earley, P. C. and Hulin, C. L. (1985) The impact of participation on goal acceptance and performance A two-step model. Academy of Management Journal, 28(1), pp.50-66.Hartnell C. A., Ou A.Y. and Kinicki A. (2011) Organizational Culture and Organizational Effectiveness A Meta-Analytic Investigation of the Competing Values Frameworks Theoretical Suppositions. Journal of Applied Psychology. 96 (4), pp.6 77-694.Herzberg, F (1987) One More Time How Do You Motivate Employees? Harvard worry Review, Reprint 87507, pp.1-16Hosmer, L.T. (1995) Trust The Connecting contact Between Organizational Theory and Philosophical Ethics, Academy of Management Review, 20, 393.Hetland, H., Sandal, G. M. and Johnsen, T. B. (2007) Burnout in the Information Technology empyrean Does Leadership Matter? European Journal of Work and Organizational Psychology ,16, (1) pp.58-75Judge, T.A. and Piccolo, R.F. (2004) Journal of Applied Psychology, 89(5) pp.755-768Liu, J., Siu, O. and Shi, K. (2010) Transformational Leadership and Employee Well-Being The Mediating Role of Trust in the Leader and Self-Efficacy, Applied Psychology An International Review, 59(3) pp.454-479.Ling, Y., Simsek, Z., Lubatkin, M.H. and Veiga, J.F. (2008) Transformational Leaderships Role in Promoting Corporate Entrepreneurship Examining the CEO-TMT Interface, Academy of Management Journal 51(3) pp.557-576.Locke, E. A. and Latham, G. P. ( 2002) Building a practically useful theory of goal setting and task motivation A 35-year odyssey. American Psychologist, 57(9), pp.705-717.Locke, E. A. and Latham, G. P. (2006) current directions in goal-setting theory. Current Directions in psychological Science, 15(5), pp.265-268.Lowe, K. B., Kroeck, K. G. and Sivasubramaniam, N. (1996). Effectiveness correlates of transformational and transactional leadership A meta-analytic review of the MLQ literature. The Leadership Quarterly, 7(3), pp.385- 425.Lunenburg F.C. (2011) Goal-Setting Theory of Motivation. International Journal of Management, Business and Administration, 15(1)Mayer, R.C. and Gavin, M. (1999) Trust for management and performance Who minds the shop while the employees watch the boss? 1999 Annual Meeting of the Academy of Management.Ordez, L., Schweitzer, M., Galinsky, A. and Bazerman, M. (2009). Goals deceased wild The systematic side effects of over-prescribing goal setting. HBS Working Paper, 09-083.Schaubroeck, J ., Lam, S.S.K. and Peng, A.C (2011) Cognition- Based and Affect-Based Trust as Mediators of Leader Behavior Influences on Team Performance. Journal of Applied Psychology, 96(4) pp.836-871Simons, D. J., Chabris, C. F. (1999). Gorillas in our midst sustained inattentional blindness for high-octane events. Perception, 28(9), pp.1059-1074.Shin, S. J., and Zhou, J., (2003) Transformational Leadership, Conservation, and Creativity Evidence from Korea, Academy of Management Journal, 46(6), pp.703-714Smith, K.G. and Hitt, M.A. (2005) Great minds in management the process of theory development. New York, NY Oxford University Press.Sorrentino, D.M. (2006) The seek mentoring program An application of the goal-setting theory. Journal of College Student Retention, 8(2), pp.241-250.Sutton, R. I. and Rao, H. (2014) Can a volunteer-staffed company scale? Harvard Business Review, 92(5), pp.125-129.Wit, F.R.C., Greer, L.L and Jehn, K.A (2012) The Paradox of Intragroup Conflict A Meta-Analysis Journ al of Applied Psychology, 97(2) pp.360-390Zhang, X. and Bartol, K.M. (2010) Linking Empowering Leadership and Employee Creativity The Influence of mental Empowerment, Intrinsic Motivation, and Creative Process Engagement, Academy of Management Journal, 53(1) pp.107-128.

Sex Differences In The Human Brain Psychology Essay

awakeuality Differences In The Human Brain Psychology EssayFor a compass point of hundreds of long time, the unlikeness between masculine person and young-bearing(prenominal) were expound and misrepresented that males argon suppositional to be more superior or be in a higher status than feminines in which we normally named this discrimination energiseism (Michael, 1999). However, in the novel years, pass force and women had already achieved equality as we now be amaze close together and thus we became unaw ar of the important differences between us (Michael). Also, beca mapping the finis of achieving balance equality between men and women became close and the unaw atomic number 18ness of the lodge, the commissioning of discovering what exactly present within a male and female would take aim a great deal of effort and endurance (Michael). It is known that men and women differ physically in which the dissimilarity be both fool or they atomic number 18 easy to mea sure and observe (Michael). Some of the examples which slew be easily measured are weight, height, size, shape and anatomy (Michael). ace of the differences between men and women are for instance, women come neurons which relate the right and leftover hemisphere of the instinct four times more than men (Michael, 1999). Also, females read greater access to both hemisphere of their brilliance, regardless of that, women equable use the right sides of their promontory more frequently (Michael). Males on the other hand, are more physically fit and stronger (Michael). They have more strength and muscles force out build up easily (Michael). However, the psychological differences between male and female can be harder to understand and describe (Michael). Problems emerge when we think that the icy sex have to act, think and feel the same as we do collect to the deficient in information, education and experiences (Michael).In a published newspaper in Scientific American titled Sex Differences in the Brain by Seymour Levine, who is a neuroendocrinologist in the year of 1966, the understanding of the effect were presented in a pleasant manner in which he single menti one and only(a)d about the one region in the sense that is important in the totally article, which is the hypothalamus known as the site for regulating internal secretions and involved in spacial learning (Cahill, 2011). Previously, queryers thought that sex differences in the brilliance exclusively means the hypothalamus, steroid hormones and sex behavior, which has got nothing to do with anything else in the brain (Cahill). This misleading observation diminished as more and more attest arise nowadays proves that the idea before was wrong (Cahill).The process of discovering about the influence of sex on maneuver of neurons have been undergoing in a fast pace in which studies found that every part and train of the brain is guessed (Cahill, 2011). According to Dr Pfaff, author of Man and Women An Inside Story, described that sex differences in the brain is principal(prenominal)ly collectable to the hypothalamus and he subsequent gives several other reasons of sex influence in the brain much(prenominal) as social behavior and aggression, provided he failed to take into term about the nature of brain functioning influenced by sex (Pfaff, 2002, as cited in Cahill, 2011). In the end, he returns to his statement aphorism that sex differences in the brain are hypothalamus centered which is incorrect (Pfaff, as cited in Cahill).The take aim of intelligence, also known as IQ, does not seem to be main factor of sex differences rather than dexterity (Kimura, 1999). Nevertheless, slightly investigators for instance, Lynn and Rich from the University of Ulster in Northern Ireland proposed that in that location are slight intellectual differences between male and female preferring men (Kimura). The meaning of opposite patterns of intellectual means that each pe rson have different own intellectual strength (Kimura). For instance, rough people whitethorn be good at utilizing words and al or so are especially skillful at addressing external stimuli (Kimura). Their individual abilities are different although the intellectual strength is the same (Kimura).Sex differences in the brain had been studied regarding the issue of job solving. Overall, men tends to be superior in spatial task than women, particularly, when they are asked to imagine an object to be rotating or some other way, men shows an receipts in handling the problem (Kimura, 1999). They are also better at solving problems related to math and in finding a path (Kimura). Although some look brave the idea, such as teenage boys in the United States normally act better than girls on science and mathematics test, however, this is not true for boys in Thailand and Iceland where usually teenage girls stand out boys in an mathematics exam held internationally, devising the sta tement of boys perform better in mathematics than girls inappropriate (Eliot, 2009). Thus, match to Cordelia bonny, superiority in mathematics and science are not genetically determined in our brain or fixed, but are due to upbringing, education, or they are inhibited by the society (Fine, 2010).Women, on the opposite, outperform men in memorizing or remembering word, have an advantage in identifying items that match quickly and doing manual test such as putting marbles or pegs in proper holes (Kimura, 1999). In spite of that, Maccoby and Jacklin from Stanford University argued that it is still an incomplete picture to say that spatial task favour males and verbal task favour females (Jacklin Maccoby, 1974). There was evidence showing that the advantage of spatial task for male does not apply to certain spatial tasks, and that womens advantage in verbal task was including many memory required work which are definitely not verbal (Cahill, 2011). Also, there are possibilities that females are able to outperform males when they are exposed to extra androgens prior to line of descent or newborn, a genetic deficiency known as nonheritable adrenal hyperplasia (Kimura, 1999). In this case, ability of CAH-affected girls to do well in spatial task increases compared to normal unaffected girls (Kimura). Another exception shown by Elizabeth Hampson from the University of occidental Ontario is that females perform some task differently throughout their menstrual period because the estrogen level becomes inconsistent and thus will affect their ability in doing the task (Kimura).Recently, a group of detectives from National Institutes of Health (NIH), have come up with a surprising new report saying that sex differences in the brain decreases as age increases in which the subjects of the research consist of a group of children whose age ranging from 9 through 22 (Sax, 2007). To say it in another way, they discover that when females and males encounter puberty, where the level of steroid hormones such as estradiol in female and testosterone in male begin to increase, the sex differences in the brain diminish (Sax). Even so, some researchers like Leonard Sax, author of Boys Adrift and Girls on the Edge think that the finding is a common-sense expectation (Sax). Other researchers or authors such as Cordelia Fine and Lise Eliot also think that although sex differences prior to birth are undistinguished because they have different education and life styles depending on the culture of the society (Sax).Sex differences in the brain do not diminish over age, but increases as we grow older when the onset of puberty starts (Sax, 2007). The latter finding seems to be more reliable to many of the researchers (Sax). To give a more clearer view, an example is to compare boys and girls both at the age of six years old, they tend to behave differently in which usually boys attention scotch is much weaker compared to girls of the same age (Sax). On the othe r hand, compare a mature old man and women both at the age of 40 years old, there wouldnt be any differences, they are able to donjon quiet and sit still as women do (Sax). Another researcher named Fausto-Stirling, who focuses studies regarding this, also think that if there are any sex differences in the brain, it is barely present after birth during puberty (Sterling, 1992). Thus, the finding of sex differences diminishes as age increases are verbalize to be counter-intuitive (Sax).Brain education does not stop after birth, but instead goes on for a long time, that is where the field of social cognition comes into action to look for sex differences in our brain (Eliot, 2009). At the early stage of sex differences it is said to be congenital and development of our individual behavior depends on either gene expression or being exposed to certain hormone prenatally (Eliot). Regardless of that, behavioral development can be shaped from a young age by training, social learning, cul ture and various lifestyle that each one of us would encounter in every society (Eliot). To illustrate the idea of congenitally programmed, Jessica Woods, Peg Nopoulos and Vesna Murko carried out an experiment with young adults from 7 to 17 years old which the same section in window dressing lobe of the children are measured (Eliot). The issue was surprisingly different from previous research they have make where the size of straight gyrus, an area in the cortex, is haply bigger in boys, in which the reversal of adulthood and childhood ponder the maturation of boys brain in later part of their life (Eliot). They are the few neuroscientists to examine male and female brain differences not only in biological sex but in terms of sexual activity type (Eliot). Woods and colleagues argue about the suggestion that sex differences in the brain are because of Y chromosome despite having no prove that the causes of brain differences depends on social learning (Eliot).In the past few yea rs, there were a lot of new technology created to better examine the homophile brains activity, for instance positron emission tomography, PET and functional magnetic ringing imaging, fMRI (Kimura, 1999). These new techniques enable us to solve problems regarding brains activity, provides more period and information about how our brain function (Kimura). The outcome until now was elicit but there were times when disagreement happens because of the results (Kimura). A number of studies done shown that the activity between both side of the brain of male are greater than female when performing task involving language, for example, identifying rhyme of words (Kimura). However, some other research could not find out the asymmetry function for sex differences in human brain (Kimura). It may be due to different language tasks given in various researches possibly because the brain system acts for certain language tasks only but not others (Kimura). possibly limitation exist because the new techniques are too complicated which leads to different results, because it is difficult for it to correctly measure what exactly is happening in the brain as the activity in our brain are very tangled (Kimura).In a nutshell, there have been many critics and arguments about the postulate of sex differences in the brain (Bland, 2003). One of it is that the research subject for most of the studies are mainly focusing on male only, this in returns affect and limit our understanding of brain differences for the opposite sex because the research are based with one sex only (Beery Zucker, 2010). Therefore, the research of sex differences in the brain should now put more attention in female perspective (Beery Zucker). Moreover, there are certain brain disorders that affect one sex more frequently than another or there may be more protected from the disease compared to the opposite sex (Arnold, Ball, Blaustein, De Vries and McCarthy, 2012). Thus, in this situation, it would bring be nefit to us if researcher could identify the problem and come up with a solution for instance, create drugs or treatment for particularised sex to be protected against these diseases (Arnold et al., 2012). There is no doubt that the whole debate about sex differences in the brain will keep back to be studied for a long time (Bland). Different researcher would have different opinion and thinking, it is just the matter of how they explain the outcome in their own way (Bland).

CSR initiatives by Mahindra, Nokia and Nestle

CSR initiatives by Mahindra, Nokia and near unified social duty is the self regulated mechanism where business en sure as shootings that it supports to law, ethics and norms. integrated Social Responsibility has been redefined throughout the years. It is an organizations mission and a occupy to what the company stands for. It is as well known as collective office. Social office is the theory that the business should not dumbfound amorally instead of this it should cook for the welf atomic number 18 of the society and community and the individuals. In simple way we give the axe say CSR is all close to how companies manage the business processes to produce an general positive adjoin on society. CSR is the way in which the companies impact the public around them economically, environmentally and socially.CSR initiatives by MahindraAt Mahindras, CSR means not provided the sharing of our wealth, but of our time and of ourselves.Making socially trus tworthy products, mak ing a commitment to the community is the Corporate Social Responsibility for The Mahindra assort. Corporate Social Responsibility is not just a duty for the Mahindra theme but they say that its a way of support.Corporate social responsibility has been always a crucial part of their vision. They say that CSR is the opportunity for them. In 2005 group celebrated its 60th anniversary and pledged to dedicate 1% of its profit after tax to corporate social responsibility.Mahindra launched a modified kind of Employee Social Options (ESOPs) to enable employees to involve in socially responsible activities of their choice. This programe has proved a big success. Employees at Mahindra are contributing in a significant way in the findment lop in villages to teaching fryren. They are assisting in disaster relief operations in any case. In fact they are trying their best in creating the better world.CSR initiatives at Mahindra focus mainly on education and health. They have their specia l ferocity on the girl youngster. Nanhi Kali is the project for the girl child. There is also a scholarship for the economically disadvantaged masses named as Mahindra both India Talent Scholarship. Mahindra Group is also planning to set up two Mahindra Pride Schools. These schools pull up stakes offer a variety of courses. The main strain will be on employability. It will also include cultivation for Information Technology, Retail, and Automotive Engineering etc. They will provide cutting skills and capabilities to the weaker sections of society, particularly the scheduled castes and scheduled tribe youth.Various fields where Mahindra has taken initiatives towards corporate social responsibility are given belowEducation-The Mahindra Group select education as the main tool to transform the lives of the wad. In 1953,The K.C. Mahindra Education Trust (KCMET) was formed to promote KCMET has provided much than Rs. 25 crores in the form of grants, scholarships and loans. (KCME T) and the Naandi creation is aimed at providing education to the underprivileged girl child in India.Project Nanhi Kali as explained before is also for promoting education. It is a national girl child sponsorship sister sponsorship allows an individual, typically in a developed landed estate, to sponsor, or fund a child in a developing country until the child becomes self sufficient. This could mean financially backing the education, health or security of the sponsored child, or in some cases.. percolate the link for more(prenominal) study.Programme managed by the K.C. their main emphasis is on providing primary education to the girl child.Criteria for selection in Nanhi Kali syllabus1. Girls who are enrolled in government schools2. Girls whose family income is less than Rs 15,000 p.a.3. Eldest girl child4. Girl children with many siblings5. Girls whose parents are illiterate6. Girls belonging to backward communitiesMahindra Mahindra was awarded the reputable Auto Monitor Corporate Social Responsibility Initiative of the socio-economic class 2007 award for its Nanhi Kali Project at a glittering function held in Delhi.In Mumbai they have started Each One Teach One, Apnalaya, maintain The Children, National Sponsorship Council, India Sponsorship Committee, Salaam Baalak Trust, S.N.D.T. Kanya Shala, Indian Association For Promotion of Adoption Child benefit, Akanksha introduction, Reach Foundation Action Programme (REAP), Bal-Jeevan Trust, Sunbeam, Doorstep School, Aseema, and Project Crayon.In August 2006, the KCMET and the Government of Rajasthan The Government of Rajasthan also known as the articulate Government of Rajasthan, or local anaestheticly as State Government, is the supreme administration authority of the Indian state of Rajasthan and its 30 districts... Click the link for more information.agreed jointly to sponsor the education of 10,000 Nanhi Kalis in Udaipur.Mid daytime repast KitchenThe Company net a alliance with the Governm ent of Rajasthan and Naandi Foundation for setting up of a centralised Mid sidereal day Meal Kitchen at Govindgarh Taluka, Jaipur District, in the state of Rajasthan.EnvironmentMahindra Mahindra is also an environmentally aware organization and is pull to financial aid in maintaining the ecological balance. On the Founders Day the company launched a special campaign named Mahindra Hariyali which aims to add one gazillion trees to Indias green covering by October 2008.Also ESOPs put ups take up local environmental initiatives at dissimilar plants and area offices. Thus employees undertake various initiatives in environment such as Energy Conservation cognisance Drives, Rain water harvesting, Global Warming.Arts and cultureThe Arts has also been an area of special focus of Mahindras social responsibility. Mahindra has instituted the Mahindra Excellence in theater Awards (META) which is Indias first dedicated theatre awards instituted by a Corporate. META will develop talen t in theatre across the country. The awards will initially cover English Hindi theatre.The selection process covers four broad areas of the country, namely, North, South, vitamin E and West.Six plays selected from each region and are referred to the respective Critics Panel. Mahindra Group also plans to set up a Mahindra Academy for Excellence in Theatre.SportsMahindra joined FootballA club with of games was set up in 1950. In 1956, a group of youngsters make a Mahindra official team in the Bombay Football League. The company provided full- size football field for practice and training.Mahindra united of Mumbai is the only team in Maharashtra who profit the Durand Cup twice the plunk for oldest trophy in the world. It is also the first team in Maharashtra to win the Harwood League and the Nadkarni Cup three times in a row. The MU win its IFA shield in Kolkata recently.Health Disaster ReliefMahindra FoundationThe Mahindra Foundation has been set up to provide medical relief to the poor and barren sections of society. The foundation has helps patients suffering from cancer and heart diseases.The Mahindra Group has also been in truth responsive to any disaster in India always. At the time of tsunami or the Gujarat earthquake, the Mahindra family has always provided support either by financial help or by s final stage vehicles and supplying material. few of the Notable ESOPS initiatives this year wereThe line of invigoration Express (hospital-on-wheels)The Lifeline Express is the worlds first hospital on complain and provides free medical and surgical treatment to people suffering from polio, cataract, deafness and cleft lip. It is undertaken by the Tractor Plant in Rudrapur, where 647 surgeries were performed free of cost.AIDS sensation Campaign started in July 2007 in nasik city.The Company feels privileged to have original the Businessworld BSR Business for Social Responsibility Award.CSR initiatives taken by NokiaNokia is the market attractor and a global company so it takes its responsibility seriously. Nokia respects the atom of the society. They believe that mobile technologies can contribute to economic growth.Many of the programs are targeted at young people and youth evolution by Nokia as the corporate social responsibility. For lesson, Nokia collaborates with the International Youth Foundation. The company also has write a cooperative agreement with the international childrens organization Plan in Africa to raise the childrens awareness of their opportunities and rights.Nokia also engages in some other types of societal CSR such asemployee volunteering,corporate giving,Nokia Data Gathering is an example of a CSR programme that Nokia is expert in mobile technologies to do estimable things for society. The computer software allows different organisations to collect data using mobile phones instead of more paper forms.Nokia looks after its employee through various employee programmes and ethical labour practices.e nvironmental initiatives can be taken as the part of CSR. Taking heraldic bearing of environment is the everyones responsibility in the company. Nokias aim is be to be draw in environmental activities. Environmental steering priorities include capability strength, managing plaza of products, and take-back of used devices for proper recycling. Nokia collaborates with stakeholders to maximize contribution in the environmental management field.For example, in 2007 Nokia initiated supplier collaboration to realize on energy efficiency targets Nokia has also worked with World Wide Fund a global saving organization, from 2003 in order to enhance Nokias environmental performance and increasing the environmental awareness of all Nokia employees.Since January 2008 Nokia has been a member of WWFs programme Climate Savers that kit and caboodle to reduce greenhouse gas emissions.Nokia also supports Connect2Earth, a green on-line community launched by WWF.It want to make a positive impa ct through its product and function. Nokia aims to ensure that environmental, ethical as well as health and safety issues.Nokias CSR initiatives are given belowNokias helping manpowerBridge IT shamble a connectionVillage phonesNokias helping turn overNokia Helping Hands is an employee volunteerism program that allow employees to dedicate a maximum of two functional days per year to volunteer work of their choice. The volunteer work includes building schools, collecting toys, clothes and other supplies for people in need and arranging activities for children. Through helping others it is possible to learn naturalskills and find new perspectives.Village phoneVillage Phone provides an example of a programme that targets universal access, provide access affordable telecommunications services in rural areas so boost economic emergence in rural communities.Accessibility is other project that provide accessibility features specifically to those people with disabilities and cognitiv e, sensory and physical limitations.Nokia is developing another project that will remind people to take their HIV/AIDS medicines on time.Nokia has been facial expression for a way to remind people on their phones that would be get hold of as well as discreet. This would allow for better monitoring and accountant from the side ofhealth organizations.Bridge ITIt is the result of a unique partnership mingled with Nokia, IYF, Pearson, SEAMO Innotech and the United Nations Development Program (UNDP). The program uses existing information and communication technologies to access to quality education everywhere in the world. The vagary is to offer young people the opportunity to education and skills development. The main impersonal is to deliver educational material of high quality to developing country schools through wireless technologies.Nokia has the text message technology which can be used in the programme which enables teachers and students to request and download materials fro m a digital library. So BridgeIT brings global educational materials into the reach of teachers and students in developing countries.Make a connectionNokia has been cooperating with the International Youth Foundation established in 1990, is a global non-profit organisation working which empower young people to be healthy and productive. IYFs programmes help youth obtain quality education, make healthy choices, gain employability skills, and work to improve their communities. Nokia supports various youth development programme. Instead of starting completely new programmes, IYF identify those of its programmes that are working and bringing the expected benefits for participants. In 2000, Nokia and the IYF launched a global youth development initiative named as Make a Connection which is to strengthen the life skills of young people and prepare them for the future.Minimising environmental footprintNokias environmental work is based on life cycle thinking which means that Nokia aim to m inimize the environmental impact of the products throughout the operations,with the extraction of raw materials and ending with recycling, treatment of waste, and recovery of used materials.Energy efficiencyNokia make sure that devices use as little energy as possible. Nokia also work to reduce the energy consumption of the operations and agree on energy efficiency targets with the key suppliers.The future is in your handsNokia has launched The Future is in Your Hands, which is a recycling scheme. The programme encourages customers to use special Nokia recycling bins for the disposal of old mobile phones and batteries. The phones will then be properly recycled.The apparent motion comes in addition to Nokias existing take-back scheme, which operates in Singapore, Malaysia, Phillipines, Hong Kong, Taiwan and China.CSR initiatives taken by go up near is one of Indias branded food manufacturers. cuddles approach is to realize a long- call sustainable appreciate for their consumers , customers, employees, shareholders and society as a whole. It is a market leader in pretty every category.Some people say that nest doesnt really believe in the archetype of corporate social responsibility instead they believe in the ideal of creating shared value. The answer to this question is that they do believe that creating share value is one level higher than corporate social responsibility. In corporate social responsibility, they help communities and creating share value is just their way of doing business. principal(prenominal) CSR activities by go up are given belowCommunity WelfareEnvironmentRural DevelopmentWaterSafe inebriation waterIn India one of the major concern is the availability of clean drinking water for many communities. Approximately 200 million people do not have access to clean drinking water. draw close India has committed to improving the situation. It believes that the first step is to cook awareness in the communities. A key focus area of thei r Corporate social responsibility initiatives is to help provide Clean Drinking Water. Other one is to educate children in schools so that we can conserve this scarce resource.Nestle also supports local schools.It also helps in the maintenance of public parks and green belts.It facilitates contrast donation camps and health awareness programs. All these initiatives strengthen the bond between Nestle and the community.Nestles main emphasis is on creating value for the public in terms of better nutrition, water, and food production. These three are the key to Nestle in building a sustainable business in the long-term. It makes a fundamental connection between shareholder value and community value. Nestle launched a series of initiatives to show its commitment in Creating Shared Value. such as Company is launching the Nestle Healthy Kids Global Programme. The Nestle Prize, provides financial support of up to USD 461,000 to individuals, NGOs, or small enterprises who offer advanced s olutions to nutritional deficiencies, access to clean water, or progress in rural development.Community DevelopmentThe main business objective of nestle is to create value that can be sustained over the long term for the economy and society, using natural resources, creating growth opportunities and prosperity.The recently originated term is inclusive growth but it shows that in which thing company believes and what is it working for so that the business must be good for society, improving the quality of life of the people. The Nestle in the community model is simple.EmploymentNestle is creating set and indirect employment knowledge, training programs and through transfer of technology. This enable people in the community to participate in economic prosperity. Nestle is always working with the community to understand what is needed to improve their quality of life.Nestle has been conducting dairy development programs in village to train the women in good dairy practices as well as spread awareness about personal health, hygiene, water conservation and economic independence.Rural DevelopmentNestle has worked with millions of milk and coffee farmers and has make them better suppliers. It has helped them out of poverty and to prosper. Today, Nestle works directly with almost 600,000 farmers throughout the world, providing around over USD 27 million worth of microfinance in 2008. About 2.4 million people in developing countries earn their livelihoods from the Nestle supply chain.Conclusion-All the three companies are doing their best. They are taking up their corporate social responsibility seriously. Nestle believes in creating the shared value as well as doing their responsibility well. Mahindra has almost tried to do everything for the welfare of the society. Similarly Nokia is also perform well. Where Mahindra focuses on the education of girl child, Nokia and Nestle emphasize on the development of rural areas.

Emotional Intelligence Academic Achievement Motivation Among Adolescents Education Essay

Emotional tidings service Academic Achievement Motivation Among Adolescents learning EssayThe present paper is an attempt to bear witness race in the midst of ruttish experience and faculty member feat pauperization. It excessively studies the horny cognizance of students with spunky, norm and busted schoolmanian acquirement pauperization. Sample for the study includes one hundred five students (48 boys and 57 girls) of figure XII of Patna. The data were analyzed with the help of increase moment coefficients of correlativity. The findings of the study reveal positive relationship amid horny comprehension and schoolman action penury. The study in addition reveals that students with last, average and beginning donnish achievement motivation differ from one another on emotional word of honor.KEYWORDS Emotional newsworthiness, Academic achievement motivation. ______________________________________________________________________________INTRODUCTIONThe rapid nurture of the era is challenging the adolescents to face the wave of globalization. Thus, the ability to control the emotions has acquire primal for not carried away by the f modest of shun and ugliness elements. A high emotional intelligence helps to maintain a acres of harmony in oneself and finally be much self-confident in dealing with the challenges of living and learning in educational institutions. Emotional Intelligence is a cross-section of interrelated emotional and social competencies, skills and facilitators that determine how effectively we understand and express ourselves, understand others and relate with them, and cope with daily demands and pressures (Bar-On, 2006). It is that cleave of the human spirit which motivates us to perform, which harbours us energy to demonstrate behaviours such(prenominal) as intentionality, persistence, creativity, impulse control, social deftness, compassion, intuition and integrity (Kapp, 2002). Lam and Kirby (2002) be of the opinion that emotional intelligence involves perceiving, understanding, and regulating emotions. noble emotional intelligence can contri furthere to a student in the learning work at (Goleman, 1996 Elias, Ubriaco, Reese et al., 1992, Svetlana, 2007). Students low on emotional intelligence may find disaster more difficult to deal with, which undermines their faculty member motivation (Drago, 2004). Academic motivation is defined as en indeediasm for faculty member achievement which involves the degree to which students accept certain specific behavioural characteristics related to motivation (Hwang et al, 2002). It is the orientation to the actions which is important to compel with the perfect standards. Goc (2010) has stated the factors affecting students achievement motivation as effectiveness of the teacher, friends, the individuals attitude towards school, students perceptions rough their own abilities, past experiences (positive or negative), the splendour give n to the students success, parents approaches towards their children and school.For many years educators, professionals and the public a wish well have been commission on the intellectual achievement of individuals. In the past, perceived cognitive potential, more than any other factor has been seen as a predictor of faculty member achievement. It has, however, been established that despite an individual having the intellectual potential to succeed at institutions of high education, he/she may experience difficulty dealing with emotional issues, have poor relationships, and be ineffective in his/her decision making (Goleman,1995). These observations, among others, have led to the realization that individuals from changing populations may require more than intellectual abilities to exist and thrive schoolmanally.All students experience frustration and bankruptcy to achieve their goals. They depend on the strength of fortitude to control their negative thoughts and feelings. If th ey are adequate to(p) to control emotions, they give achieve the academic goals as well (Dweck, 1996). Finnegan (1998) argued that school should help students learn the abilities underlying the emotional intelligence. This he believes could lead to achievement from formal education years of the child. Likewise, Abisamra (2000) inform that thither is a positive relationship in the midst of emotional intelligence and academic achievement. He therefore canvassed for inclusion of emotional intelligence in the schools curricula. Parker et al (2004) in their study lay down that highly successful students scored higher than the discomfited group on emotional intelligence. In the same vein, Low and Nelson (2004) reported that emotional intelligence skills are key factors in the academic achievement and test performance of high school and college students respectively. A study conducted by Rode et al (2007) predicted that emotional intelligence was related to academic performance for dickens reasons. First, academic performance involves a great deal of ambiguity. Second, studyity of academic work is self-directed, requiring high take aims of self- anxiety. Therefore, individuals with high emotional intelligence would perform give academically. Similarly, a study conducted on children aged 4 years tack that controlling the impulses of action have shown their ability in achieving good academic and good social skills when they are in their adolescence (Shoda, Mischel, and Peake, 1990). Contribution of emotional management to academic performance was overly supported by research make by MacCann et al (2011). The results signal that better educational outcomes might be achieved by geting skills relating to emotion management and problem-foc recitationd coping. Svetlana (2007) suggests the need to incorporate emotional intelligence training into secondary education curricula, due to a significant relationship mingled with emotional intelligence and academic a chievement.The intent of this study was to examine the relationship between emotional intelligence (EI) and academic achievement motivation among adolescents. Scant research exists on the relationship of emotional intelligence and academic achievement motivation in India. There are two major reasons for this. First, the emotional intelligence EI construct is relatively new (Mayer Salovey, 1990). Second, a atomic number 6 of research on general intelligence and cognitive performance has overshadowed the employment of non-cognitive EI factors that may effect academic achievement. This has led to a consensus among educators that cognitive factors, like high scores on intelligence tests, predict student performance in college (Jensen, 1998). Yet, many students still fail to live up to their full-strength potential despite their IQ or previous academic performance. Conversely, well-nigh college students with mediocre grades have managed to complete a college or university education . Both of these examples suggest that other factors, specifically non-cognitive EI factors, may be at work.In essence, the vastness of emotional intelligence on academic achievement motivation has been found to be very significant. Nevertheless, and in spite of the studies reviewed, there is still a need to further investigate the relationship of emotional intelligence to academic achievement motivation most especially in country like India, where most researchers are yet to show interest in the construct. Investigations that speak the interrelatedness of emotional intelligence and elements of academic achievement at institutions of higher education will strengthen the relationships between these constructs. The research findings may also support the need to incorporate emotional intelligence curriculum into college academic programs.OBJECTIVES The accusings of the study were-1. To study the relationship between emotional intelligence and academic achievement motivation.*2. To st udy emotional intelligence of students with high, average and low academic achievement motivation.*METHODOLOGY The sample for the present study consisted of 105 class XII students. Out of which 48 were boys and 57 were girls. Simple random ingest technique was adopted to select the sample. Academic Achievement Motivation interrogatory of Dr. T. R. Sharma and Emotional Intelligence Inventory by Dr. S. K. Mangal and Mrs. Shubra Mangal were used as tools for the study. High, average and low groups of academic achievement motivation were formulated on the root of the norms set by the Academic Achievement Motivation Test of Dr. T. R. Sharma. produce moment coefficients of correlation coefficient coefficient were computed for the analysis of the data.RESULTS AND DISCUSSIONTABLE 1value OF COEFFICIENTS OF CORRELATION BETWEEN EMOTIONAL INTELLIGENCE AND ACADEMIC ACHIEVEMENT needGroupsSample Size(N) coefficient of correlation Coefficient(r)Total1050.275Boys480.225Girls570.344Perusal of T able 1 shows that the values of coefficient of correlation between emotional intelligence and academic achievement motivation for total sample, boys and girls are .275, .225 and .344 respectively. It marrow that there is low positive correlation between emotional intelligence and academic achievement motivation among total sample and two boys and girls. It may be due to the reason that as they are better actuate to handle, manage and control their emotions, their academic achievement motivation also increases. The above finding draws support from the findings of Mahyuddin, Elias and Noordin (2009). They also found significant correlation between EQ and academic achievement motivation. However, Bissessar (2008) and Drago (2004) found no relationship between emotional intelligence and intrinsic motivation and achievement motivation respectively.* This objective was achieved with reference to total sample, boys and girls separately.TABLE 2LEVEL WISE set OF COEFFICIENTS OF CORRELAT ION BETWEEN EMOTIONAL INTELLIGENCE AND ACADEMIC ACHIEVEMENT demandGroupsLevel of Academic Achievement MotivationSample Size(N)Correlation Coefficient(r)TotalHigh250.320Average710.198Low9-0.320BoysHigh170.422Average280.104Low30.127GirlsHigh8-0.012Average430.200Low6-0.770Values of coefficient correlation depicted in table 2 reveal that there is low positive correlation between emotional intelligence scores and high and average levels of academic achievement motivation i.e. (= .320 and .198 respectively). Value -0.320 depicts the negative correlation between the emotional intelligence and low level of academic achievement motivation for the total sample. In case of boys, there is positive correlation between emotional intelligence and high, average and low levels of academic achievement motivation i.e. (= .422, .104 and .127 respectively). In case of girls, there is negative correlation between emotional intelligence and high and low levels of academic achievement motivation i.e. (= - 0.012 and -0.770 respectively). Average level of academic achievement motivation is positively tally with emotional intelligence (= .200) for the selected sample of girls.CONCLUSIONSThere is low positive correlation between emotional intelligence and academic achievement motivation among both boys and girls that indicates with increase in emotional intelligence, the students are academically motivated.There is low positive correlation between emotional intelligence scores and high and average levels of academic achievement motivation. Emotional intelligence is negatively fit with low level of academic achievement motivation for the total sample. In case of boys, there is positive correlation between emotional intelligence and high, average and low levels of academic achievement motivation. High and low levels of academic achievement motivation are negatively correlated and average level of academic achievement motivation is positively correlated with emotional intelligence for the selected sample of girls.IMPLICATIONSExcellent performance in academic is the key target and goal for each student regardless of ethnic group. In recite to obtain good results, a break up from effective learning techniques, students should be able to recognize themselves in particular of self emotions, so that it does not endure a stumbling to success. Hence the need to identify oneself, emotional intelligence should be noted not only for academic interest but also for success in life.The key to obtain success of learning is to give full attention and concentration during the process of teaching learning. High level of emotional intelligence can help calm the mind and thus to increase the absorption of information received. As a result it will contribute to their academic achievement. It is recommended that students academic achievement should be enhanced with the use of emotional intelligence training.The inclusion of emotional intelligence as part of the curriculum could lead t o a variety of positive personal, social and social outcomes. Increasing emotional intelligence may not only ease the learning process and improve career choice and likelihood of success, but could also enhance the probability of better personal and social interlingual rendition in general. The educational experience would be more balanced or holistic as it would focus on educating the whole person. There could also be beneficial effects for the institutions, improving the environment in which the educational experience occurs.Students need the ability to appraise a situation correctly, counterbalance appropriately in difficult circumstances and exercise stress valuation reserve or display impulse control when making judgments about academic decisions. Students need activities and advising sessions that help establish proactive patterns that increase awareness about emotional intelligence. The goal is to foster skills that lead to academic success.

How Is Machinal A Reflection English Literature Essay

How Is Machinal A reflectance English Literature EssayMachinal is a strong echo of its ethnical context, making it an interesting and refreshing piece of theatre. It touches on the rising issues of the time, which would go onto read an immense impact on to daylights popular culture. This makes Machinal both pertinent and timely for a modern auditory sense, without obscuring Treadwells original get under ones skins and views, done her lend oneself of expressionism.Treadwell was unmatchable of the first few dramatists that brought this obscure genre to the Broadway, in the late 20s. The aim of the expressionist movement, which was sh atomic number 18d by Treadwell, was to replicate the cutting and regenerated spirit of American culture. Treadwell uses the character of the spring chicken Woman as a vehicle for this view.though Treadwell never achieved the same celebrated success and recognition of many of her antheral colleagues, today she is considered one of the most accomp lished writers and dramatists of the early twentieth deoxycytidine monophosphate. Machinal is considered the dress hat and most successful of her works and first opened on Broadway in 1928. In a South Atlantic review, (Weiss 2006) states that Treadwell has dedicated her literary life story to exploring the lives and motives of lonely and trapped individuals.In spring 1927, Treadwell attended the infamous runnel of Ruth Synder and her lover, Judd Gray, although, Treadwell did non officially cover the trial as a reporter, the time she spent in the courtroom served as the catalyst for Machinal. Synder implementmed standardized a harmless housewife and her lover was portrayed as an unintelligent accessory in her crimes. The trial attracted an amazing public interest, with over one hundred eighty reporters that wrote a total of 1,500,000 words on the case. Almost every day there was some new coverage about the Synder-Gray trial. The media turmoil did not stop until Synder and Gray were finally executed via an electric chair in January 1928. Synder became the first woman to be executed in 20th century New York State.Many have argued that Treadwell chose to use expressionistic techniques in an strive to focus solely on the theme of one womans imprisonment in an indifferent marriage. By using expressionism, Treadwell distances Machinal from the melodramatic case on which it is establish on.Treadwells character of the childlike woman is the unprecedented embodiment of the 1920s new woman. This new type of woman was not devoted to social service, in comparison to the progressive generations, resulting with a woman to a greater extent in subscriber line with the capitalistic spirit of the era.The first chronological succession takes place within the George H. Jones gild office. The Young woman is late for work and sc centenarianed by her co-workers. Treadwell writes Helen as a unnerved woman, who is distinctly crushed by beau monde a aroma probably expli cit by the old woman. She is often late as she cannot stand the stifling crowds of the subway, this serves as a metaphor for how Helen feels about society in general. Daunted by urban industrialisation, represented here by deafening machine noises, train whistles and welding riveting sounds. (Dolan 1992). Helen wants nothing more put to be free of her prison of a job, but kinda is forced into a callous marriage with an unattractive, unappealing man.Unlike the old woman, the new woman was eager to compete and longing to find private fulfilment. You could argue the new woman, was now selfish. The young woman wants personal fulfilment, whereas, her bugger off clings to the old view of women. Here Treadwell clearly expresses the vast difference surrounded by the Helen and her mothers generation and their personal views of women.What replaced the moralizing piousness of the matriarchy was an irreverent equalitarian popular and mass culture which was steeped in the ethos of terrible honesty as Raymond Chandler puts it. Douglas interprets the desire to strip away the deceptive appearances of modern life and glance the sometimes unpleasant underlying realities (Glenn 1997). This is what Treadwell does with the Husband and the Young Women. On the come along it looks like the perfect opportunity for a marriage, hes a successful clientele man and shes a woman destined for motherhood, with no real future, however, down the stairs the surface a horrific murder takes place.New women withal began staking shout to their own bodies, taking part in a sexual liberation. We see this in Machinal where the young woman doesnt allow her husband to be alike intimate with her, but happily has an illicit love affair with a stranger she has control of her body Many of the ideas of this era, and those Treadwell expands upon in her defraud, have fuelled the quick change in sexual thought. Nevertheless, these ideas were already floating around gifted New York circles prior t o the First World War, in the writings of Sigmund Freud, Havelock Ellis and Ellen Key. Here, thinkers expressed sex as being central to the human experience, emphasising that women atomic number 18 also sexual beings with human impulses and desires, just like their virile counterparts. Restraining these impulses would be self-destructive.By the 1920s these ideas idea flooded the brinystream media. Treadwell puts focus on this again through the young woman (the expressionistic vehicle), as the only way she finds license is through an illicit love affair. Machinal reflects a culture moving snuggled and closer to being more secular and leaving behind scriptural verses such as The women should keep silent in the churches. For they are not permitted to speak, but should be in submission, as the Law also says.Christianity ineluctably plays a very important role in the last episode of Machinal. The young womans attempt of objectification finally explodes into murder. Treadwell represe nts her final suppression at the give of the church and the court. The ultimate justice of God, where the priest continually says Father liberate her, Christ forgive her. Treadwell is possibly stating how the young woman is now beyond the help of any earthly justice.She is finally secluded behind veto and continues to be determined to resist any governing authority. The executioner crop a clip off her hair, the final invasion of her bodily privacy, this suggests that the young woman has finally been sterilized and is completely under the law.One of Treadwells main messages is that all men are born free, whereas women are not. However, this is not what the leger teaches, the bible teaches that the entire human race are bound by sin, however, it was woman who sinned first and as a punishment she was made to fix to the authority of man and allow her husband to rule over her. This is something that would have been deeply rooted in the views of the people from the 1920s and Treadwe ll is trying to express, that women do not have certain freedoms, like men do. Dolan states that Treadwells text ironizes the fine-looking humanist notion that all me are born free (Dolan 1992).From get on inference we also notice that no one in the play is given a clear identity. The fact that we dont find out what the young womans (Helen) name is until later episodes reveals that this is not important to character development. Many of the characters are defined purely by their occupation or role in life (in the case of the Mother) this device elucidates the idea that the young womans struggles can be the plight of any woman.Machinal can also be read as a feminist version of Elmer Rices 1923 play The Adding Machine, as both plays use expressionistic techniques and attempt to contextualize an secluded act of murder. To do so is to come to the abstract mode of Expressionism itself. Writing a type of play meant to cotton up the universality of a subjects experience Treadwell begin s by suggesting her subjects specificity as a woman, and as a woman based on one individual woman. (Strand 1992)The diagram of Machinal might portray Helen Jones as the villain her role is quite the opposite. Treadwell clearly intender her to be a tragic heroine, the play is written with heated anger. Treadwell suggests women are doomed to wander forever in the dead wasteland of male dominated society, under complete authority. Since this is an expressionistic piece, its intent is to convey emotion and feeling, not realism, which would make Helen the villain. Helen does not murder her husband because she is evil she does it because she has no other option.In conclusion, Machinal is indeed a strong representation and expression of the cultural context of the time, using expressionism as a way for the audience to sympathise and empathise with the characters, rather than viewing them as social products of the 1920s, deliverance the characters into the 21st century.