Impact of the Nigerian Business Environment on Shell

Impact of the Nigerian Business Environment on Shell ABSTRACT Since the advent of crude oil production half a century ago in Nigeria, other parts of the productive economy such as agriculture and manufacturing have been neglected by the government and also the countrys poor and shambolic infrastructure has made doing business too costly for investors. There is a major exodus of Manufacturing companies from Nigeria presently as the rising cost of running their business is eating deeply into their profits for example Michelin, closed its operations in Nigeria two years ago citing the high cost of production, while chocolate maker, Cadbury has found it cheaper to move production to neighbouring country (like Ghana) and re-import its goods. Cheaper imports from China have closed a high percentage of factories in Nigerias once-thriving textile industry. Investors who bought equipment with foreign exchange component said they now need more naira to pay for their loans. They linked what is happening to their investment now to the Structural Adjustment Programme (SAP) or pre-SFEM days when importers suddenly had huge accumulated debts resulting from the adjustment of the exchange rate, over dependant on foreign goods, and high level of corrupt within the system. The micro and macro economic factors impacting on the running costs of manufacturing and production companies doing business in Nigeria makes it difficult for continued business activities in Nigeria by expatriate companies unless they are really making profit or they have a business that do not depend largely on the infrastructural amenities in Nigeria or can build a mini city that generates and produces its own power and other resources necessary to run its business such as Royal Dutch Shell. This report looks at the impact of the Nigerian business environment on Shell Plc and analysed the risks involved with macro-environmental factors. The report also analysed the strengths and weakness of shell Plc and strategies employed to take advantage of its strengths and opportunities in dealing with the various challenges they face. CHAPTER ONE INTRODUCTION 1.0 NIGERIA The Federal Republic of Nigeria comprises thirty-six states and one Federal Capital Territory (Abuja). The country is located in West Africa and shares land borders with the Republic of Benin in the west, Chad and Cameroon in the east, and Niger in the north. Its coast lies on the Gulf of Guinea, a part of the Atlantic Ocean, in the south. The three largest and most influential ethnic groups in Nigeria are the Hausa, Igbo and Yoruba (see appendix, fig 1). Nigeria has a population of almost 148 million and is the most populous African country and the 9th most populated country in the world. It has about 400 Languages (Hausa, Yoruba and Igbo Etc) and its official Language Is English but its Lingua Franca in the North Is Hausa, Yoruba in the West, Ibo in the East and Pidgin English in the South. The Nigerian currency is Naira and Kobo (see appendix, fig 2). Nigeria has a dual economy with a modern segment dependent on oil earnings, overlaid by a traditional agricultural and trading economy. At independence in 1960, agriculture accounted for well over half of GDP, and was the main source of export earnings and public revenue. The oil sector, which emerged in the 1960s and was firmly established during the 1970s now making Nigeria the 12th largest producer of petroleum in the world and 8th largest exporter is now of overwhelming importance to the point of over-dependence: it provides 20% of GDP, 95% of foreign exchange earnings, and about 65% of budgetary revenues. Competition between ethnic and regional groups for power and access to the countrys oil wealth has been at the root of politics in Nigeria. The per capita income of Nigeria is $2,300 as at 2008 base on the reports from the World Fact book. Nigeria is governed by a democratic government but not politically stable because Nigeria is a country of extremes. Great wealth and great poverty sit cheek by jowl, and tensions between different communities can boil over into civil strife especially in the delta region. While a few parts of the country remain problematic, the vast majority is as warm and welcoming to visitors as anywhere. The country have an image problem as corruption seems to be the order of the day, also email scams (419) has become known as a lot of innocent yet greedy people have been a prey to this scam. Conducting business in Nigeria is characterized with so many factors and this report will critically analyze the business environmental factors, degree of risk involved and the advantages of operating in such an environment (Nigeria). 1.1 ROYAL DUTCH SHELL PLC The Royal Dutch Shell Plc is a global group of energy and petrochemical companies founded by Alfred Donovan, was formed in February 1907 with the amalgamation of the Royal Dutch Petroleum Company (legal name in Dutch, N.V. Koninklijke, Nederlandsche Petroleum Maatschappij) and the Shell Transport and Trading Company Ltd of the United Kingdom, a move largely driven by the need to compete globally with the then predominant US petroleum company, John D. Rockefellers Standard Oil in the ratio of 60:40. Royal Dutch Shell (Shell) is engaged in oil and gas exploration and production, transportation and marketing of natural gas and electricity, marketing and shipping of oil products and chemicals. The company also has interests in renewable sources of energy such as wind and solar; and hydrogen. The company has extensive operations in more than 140 countries around the world. Its headquartered is in The Hague, the Netherlands and employs more than 300,000 people across the globe. The company recorded revenues of $318,845 million during the fiscal year ended December 2006, an increase of 3.9% over 2005. The operating profit of the company was $45,777 million during fiscal year 2006, an increase of 0.3% over 2005. The net profit was $26,311 million in fiscal year 2006, an increase of 0.2% over 2005. The current supplies earnings for year 2008 were $31.4 billion compared to $27.6 billion for year 2007 with an increase of 13.7%. 1.2 Management The Non executive chairman of Shell is Jorma Ollila, former Chairman and CEO of Nokia, he was appointed on the 1 June 2006. Ollila is the first Shell Chairman to be neither Dutch nor British. Other non-executive directors include Maarten van den Bergh, Wim Kok, Nina Henderson, Lord Kerr, Adelbert van Roxe, and Christine Morin-Postel. Jeroen van der Veer is the present CEO of Shell. 1.3 Shell Plc in Nigeria Shell Petroleum Development Company of Nigeria Ltd (SPDC) started onshore operations in Nigeria since 1958 as part of a consortium led by NNPC (The Nigerian National Petroleum Corporation) with 55 percent and including Shell (30 percent), Elf (10 percent) and Agip (5 percent). SPDCs operations concentrate in the Niger Delta and offshore shallows nearby, where it holds oil mining leases covering an area of 31,000 km2. There, it has installed more than 6,000 km of pipelines and flow lines, 87 flow stations, eight gas plants and more than 1,000 producing wells. In 1997, SPDC produced 899,000 barrels per day from this system (about 40 percent of Nigerias OPEC crude oil quota). The SPDC workforce stands at more than 10,000 people of whom 4,500 are employees; the remainder work for contractors and of total workers, 98 percent are Nigerians (see appendix, fig 3 for Niger delta oil field in Nigeria). Shell also has three other companies which are NLNG (Nigeria Liquefied Natural Gas) a gas company to produce Liquefied Natural gas and natural gas liquids for export. Shell is in joint venture with Nigeria with a 25.6% interest in NLNG (Nigeria Liquefied Natural Gas) together with NNPC (49%) while SNEPCO (Shell Nigeria Exploration and Production Company) and SNG (Shell Nigeria Gas) are both 100% owned by Shell. SNEPCO comprise Shell Plc, Total, Exxon Mobil, and Chevron Corporation. CHAPTER TWO 2.0 SHELL PLC AND OIL INDUSTRY IN NIGERIA 2.1 Oil and Gas The Oil and Gas Industry has played a major role globally. It has always been a central global player in international development and geopolitics and because of the critical importance of hydrocarbon based energy as the engine of rapid industrial growth in modern economy, either capitalist or communist. Due to the intrinsic dependence of this centurys growth model on access to ever-greater reserves, the industry has had to deal with increasing complexity in its relations with developing countries and environments. This in turn has led to increased cost of operations to match the growth models demands (Meadows et al, 1972; Nordhaus, 1973). WCED (1987) agreed that since 1970s, continued hydrocarbon-based Growth model is only justifiable if profits are ploughed into technological advances that would ensure a timely and less painful transition to alternative energy. 2.2 Challenges Faced By Shell Plc in Nigeria Since Shell started producing Oil in Nigeria, it has faced a lot of challenges in dealing with the government, micro and macro economics factors in Nigeria and most especially the communities, as Shell production led to oil spillage, gas leakage and so many more. It has affected the soil and water which is the main source of earnings for people in the Niger delta, as the agriculture and fishing has almost become impossible which is source of living for the people. This has raised a lot of community clashes with Shell so much so that their operations in Nigeria has been globally criticised and has also affected the image of company. In 1995, the company faced two major challenges; firstly, the Greenpeace occupied its Brent Spar platform in the North Sea to prevent its being decommissioned by sinking. Secondly, the Nigerian government executed Ogoni human rights activists: Ken Saro Wiwa, the head of the MOSOP (Movement for the survival of Ogoni people) a campaigning organization representing the ogoni people in their struggle for ethnic and environmental rights and eight others, this problem led to boycotts, public outcry and violence against the company. The crises arose soon after Shell began to review its societal relations, and further catalyzed internal support for transformation. Unfortunately, they occurred at a moment when the company was casting about for ways to avoid exactly such crises, leading Shell officials to heed those who internally promoted a new approach. CHAPTER THREE 3.0 ANALYSIS OF NIGERIAN BUSINESS ENVIRONMENTS For management of Shell Plc to apply effective Strategy that will work at international level and which will also reflect the Companys Vision, Mission, and Objectives, they need to understand the international business environment (both internal and external environment) of the host country (Niger delta, Nigeria). A good international strategic planner must recognise all relevant factors within the environment before pushing it through the process of analysing, decisions making and actions taking. Putting the relevant factors into consideration and testing them will help to create sustainable competitive advantages over other competitors. After critical analysis of the international business environment by the team of strategic planners for Shell Plc regarding Nigeria Oil Industry, decision needs to be taken to determine the mode of operation that should be employed by the company in order to compete effectively and efficiently within the oil industry of the host country. Decisions are of no use unless they have been implemented (acted on and monitored); Shell Plc needs competent strategists that will utilize the available resources effectively to bring the intended operations and strategies to reality. Shell Plc has been in Oil business since 1886 and operates around the world. The company has been able to maintain good name (goodwill), good customers loyalty, and strong customer database. The company construct meaningful strategic planning for Nigeria business environment before/after operating in the country, while the strategy is monitored and reviewed quarterly to reflect the companys true vision, mission, and objectives. 3.1 SWOT ANALYSIS The Strengths of Royal Dutch in Nigeria includes SPDC (Shell Petroleum Development Company of Nigeria) is the Oldest Oil and Gas industry in Nigeria. It was the first company to begin the production of Oil and Gas in Nigeria as a result, the company was able to monopolise the Oil Sector in Nigeria for a long period and established herself as a for-runner with a higher percentage than any competitors in the market. SPDC has a long standing name as one of the biggest Oil and Gas Company in the world as such it has the necessary equipment and money to invest in exploration of oil in Nigeria. Shell has been in business for over a century and they came to Nigeria with wealth of experience, technology, innovation and machinery. Shell operates autonomy of Shell Companies in a decentralized structure allowing Shell Offices in different countries to deal with the regulations, culture and behaviour of the communities in the best suitable way to meet their needs and concern. The Weaknesses of Shell Plc in Nigeria are: Shell faces the challenges that most companies encountered when they come into other countries as they have to learn the new rules, regulations and behaviours of the country and this can be a weakness from the start. Shell was not prepared for the challenge of dealing with the expense of ameliorating socio-environmental concerns which escalated and caused a lot of criticism internally and damaged the image of the company globally. The Opportunities of Shell Plc in Nigeria are: Nigeria was a virgin ground and shell Plc had the opportunity of being the first oil and gas to start production of oil and since then more and more oil fields were been discovered in Nigeria which has led to continuous production and increased production and business for the company. Shell had the opportunity for developing new business ideas as Nigeria gave them the licence to do that which led to joint venture between Shell Plc and Nigerian government, then the discovery of Natural gas led to LNG (another Joint venture) with Nigerian government and other opportunities opened up and shell now has SNEPCO and SNG, wholly owned. Also, Shell has the financial background to go into deep water exploration that led to new discoveries and new business expansion. The Threats of operating in Nigeria are: Fear of persistent interruption in their operations or damages to their properties and machineries by the militants in the delta region from which they conduct the drilling. Oil Gas extraction will someday reach a limit point but technical improvements in seismic exploration and extraction efficiencies have ensured continuing growth in reserves at the resource frontier. Growth of alternative sources of energy particularly renewable such as biomass and solar might changed their modus operandi. Continuing criticism on their image globally will increase costs spend on company and brand image. The new oil reform bill that would allow the Nigeria to retake acreage that has not yet been explored by their owners. Fear of new players into the oil sector from China and Brazil that will break its dominance in Nigerian oil and gas sector. It may be the target for other competitors. 3.2 PEST ANALYSIS AND RISK ASSESSMENT If organisation is able to know that only one thing that constant in this world is change, it would be able to make plan for emergent situations by understanding its business environment. It is very important for any organisation that intends to operate in Nigeria business environment to conduct environmental analysis before and after starting a business. In fact, continuous process should be applied to all aspects of planning because Nigeria business environment is not predictable despite its attractiveness. The companys strategic planners must be able to identify its marketing environment that is made up of the following: The internal environment is the staff (or internal customers- hired contractors), office technology, finance, wages etc. The microenvironment is the organisational external customers, suppliers, distributors, other competitors etc. Company with strong internal forces can still set up strategies to dictate the mode of its operations. The macro-environment cannot be control but company can set up strategies that will help in adapting to the business environment, which is known as PEST FACTORS- Political Factors (and Legal), Economic Factors, Socio-cultural Factors, and Technological Factors (see appendix, fig 4). 3.2.1 POLITICAL/ LEGAL FACTORS political/legal factors influences the environmental regulations which participants in the oil industry must comply with. As with many factors in the general environment, changes that benefit one industry may damage others. For example, on the political front, government legislation can affect oil production by increasing the leasing charges on oilfield and then charge taxes per barrel produced. In a broader view, the following constitutes the numerous political and legal issues to be considered in any business environment: Political stability Risk of military invasion Legal framework for air pollution Intellectual property protection Industrial safety regulations Anti-trust laws Pricing regulation Taxation and incentives Wages legislation Hours work per week Mandatory employee benefits RISK ASSESSMENT ON POLITICAL/LEGAL FACTORS Nigerian political/legal history was characterised by military intervention, civil war, ethnic sentiments, and marginalisation. The country has a bad record in democratic set up and abuse of human right practices. The high level of corruption and political instability did not allow the rule of law to reflect in the society and also, the problem of instability in government policy due to lack of continuity in governance. Shell Plc assessed Nigerian business environment and capitalised on the corruption practices of the people. The company involvement in the execution of environmental activist (Ken Saro-wiwa) and eight Ogoni people that protested against the company reckless operations on their farm lands (in Niger Delta) cannot be dismissed. The political/legal factors do not possess any risk to Shell Plc if it knows is way. It is not necessary also for the company to follow all the legislations laid down for the Oil Industry. Legislations on industrial safety, air pollution control, wages, maximum hours work, mandatory employee benefits etc were not observed by the company. 3.2.2 ECONOMIC FACTORS the economy has an impact in all industries, from suppliers of raw materials to manufacturers of finished goods and services as well as all organisation in the service, wholesale, retail, government and non-profit sectors of economies. Key economic indicators include the following: Interest rates Unemployment rate Type of economic system in countries of operation Government intervention in the free market Comparative advantages of host country Exchange rates and stability of host country currency Efficiency of financial markets Workforce and labour cost Business cycle stage (e.g. prosperity, recession and recovery) RISK ASSESSMENT ON ECONOMIC FACTORS Nigeria operates mixed economy system which helps Shell Plc to manipulate the system because of government intervention in the economy. The interest rate does not pose any threat to Shell Plc because it did not take loans from any Nigerian banks. The companys bankers (the foreign banks) finance and support all their financial activities which favour Shell Plc because of devaluation in Nigerian currency. The major economic risk assessment to Shell Plc operating in Nigeria is increase in unemployment rate (especially in Niger Delta) due to exploitation of crude oil in that area that leads to job lost. The effect of this action has turned thousand of youths into militant groups that kidnapped foreign workers employed the company in exchange for money while some stole extracted oil from Shell. Despite the problem encountered from the militants, the company still operate in Nigeria because of prosperity attached to Oil Industry in Nigeria. 3.2.3 SOCIO-CULTURAL FACTORS -socio-cultural forces influence the values, believes, and lifestyles of a society. Examples include a higher percentage of women in civil service and more men engineering related jobs, holidaymaker, dual-income families, night out orientation, increases in the number of temporary workers, greater concern for healthy diets and physical fitness, greater interest in the environment, and postponement of having children. Some of these factors affect Oil Industry in Nigeria. RISK ASSESSMENT ON SOCIAL-CULTURAL FACTORS The risks that associate with Social-Cultural factors are many especial to the indigene of Niger Delta where eighty percent of the population are illiterate and have strong believed in their local tradition. Most of the indigene want to work for Shell Plc as a security officer or domestic assistant but their level of literacy does not matched the companys requirement. Shell Plc has employed some of the indigene on temporary basis and gives them opportunity to integrate within the system. The company give out scholarship to the indigene of Niger Delta to increase their level of literacy and give them sound orientations that meet the companys standard in order to tackle some of the problems associated with these factors. 3.2.4 TECHNOLOGICAL ANALYSIS development in technology leads to new products and services and improve how they are produced and delivered to the customers. Innovations can create entire new industries and alter boundaries of existing industries. Issues to be considered in technological analysis include the following: Recent technological development Technologys impact on product offering Impact on cost of production Impact on value chain structure Rate of technological diffusion RISK ASSESSMENT ON TECHNOLOGICAL FACTORS The only major risk on technological factors is problem of electricity power supply which can hinder technological advancement. This problem has been taken care for by using Power Generator to support the power system but add to the cost of production. There are no standard infrastructural facilities in place when Shell Plc moved to Nigeria but the government is now committed to modern technological development. Shell Plc imports most of its equipment with foreign expertise that operate it and then arranged with the expertise to train home workers. This process improves technological adoption and diffusion which also reduce the cost of production in long run. The company have used different methods to attract young talented graduates (in all disciplines but priority to engineering students) and trained them to become an expert. The number of Macro- environmental factors is virtually unlimited. In practice, the oil producers must prioritise and monitor those factors that influence the industry. It may be difficult to forecast future trends of any international business environment base on the macro-environmental factors with an accurate level of acceptability because of its complexity. 3.3 STRATEGIES EMPLOYED BY SHELL PLC FOR DEALING WITH CHALLENGES Shell Plc used corporate alliance strategy to shed off threats from competitors and to maintain its dominant position. The company operates joint venture with Nigerian government (NNPC) and also in partnership with Total, Chevron Corporation, and Exxon Mobil Corporation to form Shell Nigeria Exploration and Production Company (SNEPCO). The company was also in partnership with Globacom (a Nigerian telecommunication company) to create employment impact that will enhance the companys operations (Shell Plc) in Nigeria. Their strategy involved helping communities to leverage income and improve their quality of life in conventional ways, such as creating jobs and assisting to defray costs of social overheads such as roads, schools and hospitals. The company set up a committee that look into complain by the farmer(s). The committee assessed complains and compensate appropriate to their loss. The company also support the government initiative on amnesty by giving support to militants that submit their gun(s). The company want to support training or education of militants that surrendered their ammunition for to better life (see appendix, fig 6 for the images of militants surrendered their guns). The company is using Corporate Social Responsibility (CSR) to build its image locally and globally to show more concern on corporate governance and sustainable development. The CSR campaign by Shell Plc is to accelerate developmental and employment-generating opportunities across the Nation but especial Niger delta. Two special partnerships have been entered into by the company with USAID (United States Agency for International Development)- a 5 year worth $20 million agreement to develop Nigerian capacity in agriculture, health and business enterprise; and with Africare- a 3 year worth $4.5 million partnership that focus on reducing deaths from malaria. Security strategy was used to crush the militants through cooperation between Shell and State Security Forces but proved ultimately counterproductive as youth militancy increased and the security deteriorated across the wider Delta. The militants target (kidnap) the foreign workers and key officers in Shell Plc in exchange for money (compensation) which nearly put an end to Shell operations in that region (see appendix, fig 5 for images of workers kidnapped). The company outlined a new approach of CSR and community engagement which aimed to build a security-development nexus in partnership with local people. This approach has worked well for the company but now it has led to uncivil tensions along gendered and ethnic lines which undermine the prospect of a long term solution. 3.4 NIGERIAN COMPETITIVE ADVANTAGE- Porters Diamond Model SWOT analysis was used to determine the advantages, the level of attractiveness and risk involved in Nigerian business environment in line with the macro environmental factors for Shell Plc to operate in Nigeria (especially in Oil Gas Sector). Despite the problems and criticism encountered by Shell Plc, the company still operate and increase investment in Nigerian Oil and Gas Sector, and also extend partnership across the sector because of Nigerian comparative advantage. The Nigerian business environment possesses most of the qualities and characteristics that determine national competitive advantage as stated by Michael Porter in his theory (see appendix, fig 7 for porters diamond model). He identifies four sets of conditions that are essential in determining country competitive advantage: Factor conditions- human, knowledge, physical, technological and capital resources. Demand conditions- quality and quantity of home demand, demand that internationalised the domestic market will stimulate innovation faster in the domestic market. Related and supporting industries- availability of aid to trade (banking, insurance, transportation, warehouse and telecommunication). Firm strategy, structure and rivalry- local rivals and strategy that works with business environment. There are two other factors that can play an important role for any company to fully enjoy competitive advantage of any nation: chance (war, politics, financial movement and serendipity) and government (government policies, subsidies, training/education, and effective capital market). We have discussed most of these factors in our SWOT analysis and PEST analysis on Shell Plc. CHAPTER FOUR CONCLUSION What is Shell Plc comparative advantage in economic reform, competitiveness and economic governance when viewed in the light of activities initiated by other bilateral and multilateral donors, NGOs, and the Government of Nigeria? Shell Plcs broad comparative advantages are in government institutional strengthening and promoting private sector-led growth. Shell Plc has the most impact when it targets its activities in these areas at operational levels, where they can have sustainable effects, rather than at broad consensus-building (except in public awareness activities). In a vast bureaucratic environment like Nigerias, support must be highly selective, focusing on agencies and institutions in key leverage positions. These activities will complement the comparative advantages of other donors (who are operating at different sector but in partnership with Shell plc like Globacom and USAID). Globacom will continue to focus on telecommunication, and its technical and operational activities in the technology area can coordinate with Shell Plc. The USAIDs comparative advantage is in developing and implementing programs that actually address agriculture, health and business development. Shell Plcs CSR campaigns and partnership with international body (like Africare and USAID) will go a long way to redeem the image of the company internationally and also help to maximise their competitive advantage over others (like BP- British Petroleum). Their support to Nigerian government amnesty to educate and employ militants that surrendered their guns will reduce the number of youth that join militant group to survive. It is very important to be realistic about the strengths and weaknesses of any organisation when using SWOT analysis; it is of most important to identify the organisational current strengths and weaknesses then future chances. The macro environmental factors need to be mirrored with the organisational competitive advantage. Continuing evaluation of organisation strategy will help to check how effective they are in practice and then helps to inform of future environmental challenges. References Best, M. (1990) the New Competition: Institutions of Industrial Restructuring. Harvard University Press, Cambridge Dabbs and Bateson (1998), corporate impact of addressing social issues in projects of the developing world, Pro-Natural. Lima, Peru Davis, J (1998), a Commitment to Sustainable Development, WBCSD, London. Elkington, J (1998) Contributing to Society, a personal view. In Shell International, Ltd. Profits and Principles: does there have to be a choice? London. pp. 46-47. Environmental Resources Management (ERM), 1996, Camisea: Increasing Social Capital. London, May Faulds, E, F. Morrison and A. Wilkinson Shell, UK (1998) Engineering in a Show Me Frynas, Jedzrej George Oil in Nigeria: conflict and Litigation between Oil Companies and Village Communities Hamburg Lit 2000 Hastings, M, Corporate Incentives and environmental decision making: A case study and workshop report Centre for Global Studies, September 1999 Marketing Teacher (2008), Analysing the Environment- Five Forces Analysis retrieved on 08, December 2009 www.marketingteacher.com The World Fact Book (2009), Country with top per capita income retrieved on 03, December 2009 Wade, B.N

Gough Whitlam :: essays research papers

We are a government committed to bringing change into about social and economical aspects of our country." (Hayden, Speech, 1973) The Whitlam government's term was filled with controversy, scandals and public protest however, despite criticism of the government it is undoubted that within its term, 5 December 1972- 11 November 1975, the government was significantly influenced by socialist ideals through directing its policies relating to the social, economic and government aspects of society. The government adapted 'crash through or crash' style of policy change, reminiscent of a peaceful socialist revolution, however modified to suite the Australian climate. Whitlam's approach included more democratic elements and involved the people influencing the policies of his government, his eventual goal to solve the great problems capitalism had brought upon Australia. (McGavin, 1987, 55) His solution was quite simply to lessen the capitalist enemy of socialism, the class divide. The government promised the citizens of Australia better quality of life hand in hand with equality and said that these goals would be implem ented in the improvement of education, health and welfare, stricter economic regulation as well as broad public ownership of several other basic industries and finally an extension of the national government's power promoting constitutional and electoral changes. Socialism is defined as a political doctrine concerned with the morals of society and relates to all economic and social aspects of society. Socialism is further characterised by the state ownership and nationalisation of all means of production, facilities and banking for the reason that under socialist control private barriers can no longer prevent the people from working together for the common good. (Bobbio, 1987, 44) This utopia is thought to be achieved through a peaceful political revolution, of course, in the best interests of the nation. (Evans, 1977, 23) Furthermore, socialism is defined by the belief that capitalism has unforgivably failed the working classes and that there is in fact simply no need for inequalities that exist within society. Socialist theory dictates that inequalities within society should be altered to the extent that the upper class minority can no longer hold exclusivity to privilege whilst the majority of the working classes suffer. Whitlam's breed of socialism embraced the practical and moral components of the ideology. Further, he was a great advocate for rapid change and this was extremely reminiscent of ideological socialist revolution. "We have a new chance for our nation. We can recreate this nation.

HRM Consultancy Report †BancRoyale Amsterdam Essay

In a survey undertaken by PWC of customers and outsourcing service providers cut across different advanced countries, over 80% customers noted that outsourcing activities delivered targeted gains provided for in the original business case. By implication therefore, it can be said that outsourcing and offshoring in the case of Bancroyale is a basic part of organizational strategy in a bid to maintain competitive advantage and staying ahead of other organizations. The need to outsource certain business processes by organizations over the years have been attributed to the recession that hit hard on world economies and businesses, it is also borne out of the need to reduce and contain costs while maximizing benefits and increased efficiency. As we speak and in coming years, process enhancement and productivity as well as governance, risk and security are other needs to be met by business process outsourcing. It is a trend that continues to emerge over time. Business processes such as IT and payroll management is of the essence to be outsourced due to their dynamic nature for the former and better efficiency in management by 3rd parties for the latter. Studies have shown that about 50% of clients are discouraged from outsourcing due to a lack of experience by service providers and their inability to justify the costs against benefits and therefore provided a justification for preference for in-house employees over 3rd parties while some companies do not have the skills to manage outsourcing activities and the service providers. Some are of the opinion that they require to put their house in order before outsourcing certain business processes. Banc Royale Amsterdam known and popular for superior and friendly customer service has taken steps to outsource its online customer service unit to a small South American company to handle due to increasing costs of maintaining this department. It is pertinent to take note of issues that may arise due to this change and its effect on the bank and also its customers. Majority of organizational change management systems fails as proven by research because employees who are at the core of these programs are not carried along and feel left out, this leads to low morale which results in demotivation and its consequences. Dawson and Jones (n.d), said that it is the people/employees that are subject to change and must adapt to change as against the organization adapting to change therefore human capital is the most important and critical element when instituting any form of change. People/employee and customer issues would arise and worthy of note is the language barriers already raised by the firm saddled with the responsibility of handling this unit. It is expected that most customers of Banroyale would speak Dutch or French and this should have been put into consideration while contracting this unit out to a South American firm. From the onset, management ought to have determined if this firm has Dutch speaking customer service consultants that would be able to communicate with their customers and also keep up with the standard of superior customer service set by the bank. The entire reason to outsource this unit is completed defeated if the bank cannot maximize benefits from this exercise as customers that are not pleased with services via the online customer service window are either completely lost or aggrieved thereby making the bank lose more money than it planned to save. The decision to outsource a key unit of the bank by the management is also likely to cause collective distrust amongst employees in spite of the fact that the decision is a strategic performance management decision that is expected to make the bank cut down on its increasing costs. According to Shawn 2008, the decision to outsource creates uncertainty for existing employees and it could make them to look elsewhere for employment, in cases where they do not leave, they most times do not cooperate with the new service providers to provide them with adequate information that would make the task easier to handle thereby causing also decreased efficiency in service delivery and bring in operational risk. Another major people management issue of outsourcing of this unit has to do with the customers to be attended to. In most cases, the service provider, that is the South American firm even though based on recommendation are highly professional most often than not would not be able to provide 100% banking services customers have always enjoyed because they have limited access to the bank’s customer database and hence, all they would be able to do while trying to serve the bank customers is to only take down messages and tell the customers someone would get back to them, these are customers that probably want to know their bank balance, ask questions regarding interest rates, cancel standing orders immediately etc. Only staff of the bank that has access to specific customer data base would be able to provide services to these customers. There is a very high likelihood that there would be a wide gap between management goals and eventual performance. One of the bank’s strategic capabilities and strengths is embedded in this unit that is customer service which is a major selling point for the organization; therefore it ought not be toyed or experimented with. In its quest to maintain a competitive advantage other areas should be looked at to reduce costs and expenses. HRM should seek to look at better ways to maximize the performance of this unit by determining unnecessary overheads are proposing to bank management to reduce, it could also develop more work challenges and deliverables to the managers of this unit in order to justify the increasing costs. Increasing costs accruable from this unit should provide increasing bottom lines for the entire bank, therefore performance management systems should be adopted to determine if these increasing expenses are justifiable and are actually increasing the bank’s bottom line. HRM could also propose to the service provider to hire some of the laid off bank customer service consultants and have them on their payroll on their own terms, this would ensure that these people are not so aggrieved for being laid off but also be able to still provide their services to the bank indirectly through the service provider. Lastly, if it is of great necessity that management outsource this unit then it is advised that it be done gradually and strategically in order to integrate the service providers into the system instead of a sudden transfer of this function thereby causing avoidable people management issues. SECTION 2- Organisational Solutions OB-HR Matrix Relationships The study of organizational behavior covers basically how knowledge about people, individuals, and groups are applied within an organization; and covers topics bordering on leadership behavior and power & politics, communication, group structure and process, learning & attitude development and perception, change process, conflict, negotiation and resolution, job design and motivation etc. Organizational behavior (OB) is a field of study devoted to understanding, explaining and ultimately improving the attitudes and behaviors of individual and groups in organizations. Therefore, the findings of this report are meant to be applied by managers to see how relevant they are to real world practical organizational challenges. The managers or HR professionals apply these organizational behavior theories and principles in solving problems that relate to human capital. For instance, while OB would explore the relationship between social recognition or employee motivation and job performance, human resource management would be examining the best ways to structure a perfect rewards system and performance management. In other words, the study of organizational behavior provides significant insights to human resource management when the principle and theories are effectively applied by HR professionals. Motivation and Diversity being very key and relevant organizational behavior concepts relevant to the change process being embarked upon by the organization would be the subject of analysis in this section. MOTIVATION – By making reference to the book ‘’Good to Great’’ by Jim Collins where he analyzed how Fortune 500 companies such as Wells Fargo, Walgreens etc transformed from just good companies to great companies. These companies were reported to have transformed into great companies basically by their commitment to hire the right people with emphasis on character, work ethics, intelligence, values and commitment and refusing to hire when such people were unavailable. This model was also adopted by Apple when they embarked on opening retail stores to serve their customers, they focused on hiring only very highly passionate individuals for their products i.e. highly enthusiastic about Apple products and this would only mean that, employees are first hand self motivated because they are passionate about what they are doing and so whether they are rewarded using the traditional reward systems or not, they are still happy doing what they are doing. However, Apple did not just stop at hiring passionate people, they created very unusual reward systems worthy of note is by not placing sales people on commission so as to ensure tension is completely eroded and employees maintain a very calm mien in dealing with customers. These hired sales people also go through rigorous trainings to acquaint them with the skills and knowledge to succeed in the Retail stores. Career growth opportunities for these sets of employees to grow through different opportunities are provided within the organization. Motivation in this context is therefore defined as an employee’s willingness to put in his maximum effort into his job to achieve organizational objectives while also being able to meet his personal needs and objectives. Motivation was defined by Baron, 1983 as a set of processes concerned with the force that energizes behavior and directs it towards attaining some goals. Simply put, motivation is the reasons why individuals behave the way they behave or do what they do, which implies in a workplace that an employee is said to be motivated on the job when he enjoys doing what he is doing and totally involved in it as against doing it for the sake of only remuneration to be received. A self-motivated employee implies that personal goals align with organizational goals most often than not therefore, employee satisfaction & retention, customer satisfaction & retention and accomplishment of organizational goals are guaranteed even in the long run. Human behavior is goal directed and it is motivation that drives an individual to behave in a particular way he does. Motivated employees are more self driven and autonomy-oriented than those who are less motivated ( Ryan and Deci, 2000), they also show interest in colleagues work more than less motivated employees which makes them more open to challenges and developmental opportunities. Motivation and HRM approaches for BancRoyale. Research and studies have shown and proven that motivation is positively related to employee performance and therefore HRM has a major role in this regard by implementing the concept of performance and reward management. Gungor, 2011 conducted a research on the relationship between reward management systems and employee performance with a major focus on motivation as a critical and intervening factor, he concluded that reward management systems application is significantly and positively related to motivation and employee performance which implies that financial rewards have great impact on employee performance and motivation (be it intrinsic and extrinsic). HRM has the duty to identify employee needs and goals through employee audit and other means that target employees’ individuality. The implementation of performance management systems by BancRoyale would make it benefit greatly from all its positive outcomes such as customer and employee satisfaction and retention and other additional benefits. Individuals have different needs as analyzed by Abraham Maslow in his ‘Hierarchy of Needs’ and theory of motivation where he stated that individual needs are arranged in a hierarchy of importance, he also added that all these needs are insatiable, however as one level of need is satisfied it no longer motivates behavior and therefore the next level is activated. HRM must be able to determine the level on which each employee is on to be able to strategically position the organization to meet such needs. It is important that HRM understands that unmet needs and expectations of employees over time leads to certain behavioral patterns that manifest in absenteeism, frustration, work stress and conflicts with its attendant effect on performance. DIVERSITY – Meanings According to the US Department of Interior, diversity refers to many demographic variables including but not limited to race, religion, color, gender, national origin, disability, sexual orientation, age, education, geographic origin and skill characteristics. The Law Society of Scotland says that diversity is about recognizing that everyone is different in a variety of visible and non visible ways; and about creating a culture that respects and value uniqueness and difference in people in order to harness their potential in creating a more productive working environment. Diversity encompasses acceptance and respect of individual uniqueness and differences, exploration of these differences in a safe, positive and nurturing work environment, moving beyond mere tolerance to embracing and celebrating the rich dimensions of diversity within each individual (University of Oregon, www.gladstone.uoregon.edu/) Diversity and HRM approaches for BancRoyale HRM is saddled with the responsibility of managing diversity, ensuring the organization conforms to the legal requirements related to equal opportunity. This process is managed with HR functions ranging from recruitment, selection,evaluation, job design, training, people management to workforce management in terms of placing the right people in the right location and position. Due to seeming economic and business realities in addition to demographic changes taking place within the organization, diversity management is an all-new challenge for HR and the entire bank. If HR performs its functions related in this context, it would save the organization from avoidable litigation, reduced employee costs and better bottomlines. In order to make diversity a strong point of the bank, the following HR processes should be considered: Recruitment and selection: HR must look to assembling teams of diverse backgrounds that would stimulate creativity and innovation with skill sets that complement each other. Technology: diverse workforce often includes virtual teams therefore the need for technological support. HR policy: need to take into cognizance cultural and ethical aspects in addressing equality standards prevalent in each location they are present. Training: Managers and employees need to be trained on leadership and teamwork as it applies in a diverse workplace. KEY HRM ISSUES WITH GREAT IMPACT ON THE TRANSITION FROM IN-HOUSE ONLINE CUSTOMER SERVICE TO 3RD PARTY SERVICE MANAGEMENT IN BANCROYALE Diversity Management Diversity Management – â€Å"Diversity management is the ability of an organization to maximize the advantages of organizational employee diversity and minimize the inherent problems. I.e maximize the benefits and minimize the costs of implementing diversity policy in the workplace† Benefits to Banc Royale Creating a competitive advantage (the business case for diversity) Better understanding of diverse customers. Increased productivity on complex tasks. Better problem solving as a result of inputs of diverse members. Increased innovation Potential issues that may arise in diversity management (Knouse 2008) Diversity members may show loyalty to background groups rather than the team. Potential for increased conflicts amongst employees with diverse background. Potential for exclusion of people different and more cohesion amongst similar groups within networks. Potential for non-cooperation when group members have different values. High potential for miscommunication among diverse organizations Proposed solutions HRM practices must be fair and equitable and take responsibility for the effective delivery of the policy Work groups and teams must be allowed to grow and develop in stages and be given time to fully develop Diversity plan must be well thought out and communicated to be effectively implemented. Change focus from social cohesion to task cohesion Reinforce a culture of diversity through continued management commitment Institute mentoring systems with bias for the diversity cause. Employing the right people to deliver best quality service based on equality of opportunity. Ensuring employees are able to contribute a diverse range of skills and experience. Ensuring Banc Royale harnesses and realises full potentials and performance of employees. Building and encouraging a culture of intolerance to discrimination. Eliminating barriers leading to discrimination and prejudice. Building a culture that fosters cooperation and respect amongst employees. Board of Directors is overall lead. All directors and line managers are responsible for full implementation of the policy. Employees are responsible for adhering and complying with the policies. Trainings, sensitization seminars and workshops are conducted and organized by HRM for employees to learn about the policy. Emergence of virtual teams Virtual teams came to the fore as evolving organizations saw the increasing need to go global and this was characterized by technological advancement. Organizations whose goals are to maintain a competitive advantage believe that creating effective virtual teams are necessary to achieve this goal. Global brands such as Coca cola, Microsoft, Citigroup, Ford, Toyota and even non-profit organizations have been able to lead the pack of their various industries as they have seen ahead that they require to be present across all parts of the world using people as their major resource. Symons et al (2007) have this to say about virtual teams being teams where its members are geographically dispersed and unified by one project. Which invariably means that there are 2 teams: physical teams and virtual teams unified by one organizational goal. While the physical team adopt face to face communication, the virtual team communicate using technology such as telephones, emails, conference calls, or other computer-mediated communication. The foregoing pre-supposes that in building or creating virtual/global teams, there would be a large involvement of a diverse workforce scattered all over the globe which comes with its attendant challenges and even more benefits if systematically harnessed. MIT Sloan School conducted a study in 2009 and concluded that virtual teams could outperform physical teams and provided a justification for their creation which amongst others include: Productivity day in day out due to time zone differences, Sharing of best practices, Reducing costs, Innovation and increased creativity as a result of highly diversed workforce. Bergiel et al (2008) said that such teams as virtual teams allow organizations to attract and retain top talents because workplace flexibility is seen as a crucial aspect of job satisfaction for many employees; for many companies, the use of virtual teams reduces costs and time of employee travel. However, inspite of all the benefits accruable from virtual teams, without proper structures and strategic planning, these benefits may not be harnessed. Trust is a crucial component required in building a cohesive and effective team and it even becomes more complicated when this trust needs to be built where distance is a barrier. In building trust, it is important for team members to have face to face interactions, this allows them to develop rapport, build friendship and relationships and also have a better understanding of the team goals. Frequent communication electronically between members also has a way of fostering relationships. Team training from time to time on technology that has to do with team interaction would also go a long way to promoting the understanding of team goals and objectives Virtual teams are very much likely to fail when organizations do not make appropriate investment in technology and training of team members. Team leaders must be taught how to provide leadership and direction with giving feedbacks effectively through unconventional methods while members should be trained and given guidelines on how to communicate with other team members to encourage team building. At the helm of all of these is the support and trust of company CEO and other management staff in promoting and deepening the activities of the virtual team without which it is bound to fail. The decision to create virtual teams is usually the idea of management and therefore they must be seen to support it by building the appropriate structures that would ensure goals are achieved. Symons et al (2008) concluded and postulated some key points that should be followed by virtual managers which is hereby recommended to the Customer Service Departmental Head in alliance with the South American company that is in charge of it and they are as follows: Communication is a critical component of virtual teams enhanced by the support and the introduction of technology, therefore virtual teams succeed when value are placed on the people than the technology. It implies that the manager must create a definite purpose in cooperation with his team members and effectively communicate it to them. Leadership style advised for virtual teams is democratic in order to get the best out people and promote creativity and innovation. This is the benefit obtainable from having a diverse workforce and it must be adequately harnessed by the leadership approach used. In this kind of work environment, each team member is able to voice his opinion irrespective of his background, language, status etc. The virtual manager is able to create a very high level of trust when conscious efforts are made from the outset to address trust issues and conflicts that might arise as a result of diversity. He therefore should employ essentially face to face interactions in conflict resolutions and better still create an environment of friendship where conflicts are minimal. In addition to these key points, virtual teams are disadvantaged by problems or challenges characterized by difficulties in communication caused by the absence of face to face interactions, lack of employee engagement to get the best out of team members, major trust and integrity issues etc all caused by inability to go through physical interactions. This is responsible for the slow pace of trust building in virtual teams however all of these disadvantages and more can be mitigated to have our dream ideal virtual team or better put, the ideal Customer Service Department by employing tested strategies. The Banc Royale virtual manager is hereby advised to adopt the following strategies in building a cohesive and effective team: Communication All team members must be kept closely via communication. Effective communication is essential from top to bottom and bottom to top ensuring free flow of information. Communication must also be frequent and the manager’s responsiveness to communication or information is also key to effective communication. Communication does not start or end with passing information, listening and being very attentive is also critical. He must be able to create awareness from time to time so that the team can achieve expected outcomes and results. His ability to make use of the technology resource provided also enhance communication and also train team members on how to optimize the benefits available in the resource. The team leader must seek to understand his members through and through including their cultures and background, this would help him in deepening his relationship and develop trust. Collaboration The virtual manager must be able to create a collaborative mindset in the entire team which harmonises the best of competition and fostering trust and respect amongst team members. Collaboration can only be achieved when divergent views are welcome are analysed to take decisions that would allow for goals to be achieved and eventually create a win-win situation. Defined team objectives The virtual manager must be able to make his team members know the reason for their existence. This reason must be well clarified and communicated, team members must understand the role and contribution of their team to the entire bank, what is expected from each team member, results that are expected from the team etc. This clarity of purpose ensures that employees are properly engaged. Success celebration Milestones and successes must be celebrated to motivate star performers and encourage other team members to do better. Finally, the Customer Service department head could also adopt an account/customer classification approach to structuring the new online customer service just outsourced. The Team lead is advised to divide his team across the types of clients that patronize the unit such as new customers, existing customers broken down into retail, commercial, borrowing and non-borrowing customers. It is also necessary to ensure multi-lingual Customer Service Consultants are hired to avoid complaints as a result of language barriers. Influence of Power and Politics Power is the capacity or ability to influence another and it is drawn from various sources such as formal authority, control of scarce resources, control of decision processes, control of knowledge and information etc Politics is the tactical use of power or practical exercise of power to retain or obtain control of real or symbolic resources† according to Bacharach et al (1980 p. 1). Politics in the workplace or organization is usually driven by personal interests and therefore tantamount to the achievement of organizational goals and objectives. This determines productivity within the organization. The influence of power and politics on Banc Royale Amsterdam as a result of the changes being made can be both positive and negative. Scholars such as Eisendhart et al (1988) believes that politics is linked with poor organizational performance creating inflexibilities, communication barrier, restricting information flow etc. while some scholars are of the opinion that politics is necessary for innovation, creativity and organizational change that are brought about by disagreements and conflicts. This decision as taken by the management has some political undertones to it due to the fact that this unit is a very key unit in the organization, it can be noted that other units also exist within the organization that could also have been outsourced to cut down on expenses. This decision definitely would have caused collective distrust amongst employees not affected by this decision and could lead them to seek for employment in other organizations. According to Shawn 2008, the decision to outsource creates uncertainty for existing employees and it could make them to look elsewhere for employment, in cases where they do not leave, they most times do not cooperate with the new service providers to provide them with adequate information that would make the task easier to handle thereby causing also decreased efficiency in service delivery and bring in operational risk. It would also bring about a situation whereby other existing employees of the entire department would lose confidence in the Manager of the department for allowing such a decision to be taken. They would lose confidence in his ability to provide leadership and therefore bring about a decline the department’s productivity and his ability to be in control. If an individual is perceived by others to have influence then such person holds power and such is arrogated to him. When his employees believe in his ability to control the distribution of rewards valued by others such as promotion, money or even his ability to influence management to retain the â€Å"online customer service unit†, then they believe he has power and influence and would respect his leadership. Power requires one person’s perception of dependence on another person and in this situation, existing employees of this department are beginning to think otherwise. In order to minimize power and politics which is not bad entirely except it is engendering an unethical culture within the organization, it is of necessity that HRM takes a very strong stand to tackle it and I would recommend that they look at HR processes that include Recruitment and Performance Management. In whatever HR process we want to look at, the sole aim is to ensure that negative power and politics is downplayed and HR plays a major role in ensuring that. It is important that structures are built that do align with the objectives of the organization based solely on Corporate Governance policies in order to have management buy in. Section 3: Conclusion ‘Human capital represents one of the last and the best sources of competitive advantage’ (Kaufman, 2010: 292). The strategic objective of Banc Royale is to provide â€Å"helpful banking† to its numerous customers who are mostly retail customers, therefore cannot afford to get customer service wrong so that customers would not lose confidence in the brand. Quick steps need be taken immediately to first address the language barrier issues that are existent between both customers-service providers-bank employees. It is recommended and advised that management should change the focus of this exercise from cost reduction alone to enhanced and improved productivity with greater emphasis on collaboration between the bank officials and the service providers to ensure seamless integration. We all know change is difficult, however, if we consider what we stand to gain as an organization we would be glad to embrace change. Globalization, the need to maintain competitive advantage and churn out good bottom lines at minimal expenses, economic downturn are amongst other justifications for the creation of virtual teams and the need to outsource certain units of an organization. Banc Royale intends to be at the forefront of this, therefore all employees are enjoined to understand the workings and the concept of virtual teams in order to give support as required. Virtual managers have the responsibility to acquaint themselves with the roles required of them which include and are not limited to: Providing strategic direction in alignment with corporate goals Motivating and empowering team members to achieve team goals Identifying and providing required resources to achieve team goals Developing and communicating a clear vision to team members Giving effective employee feedbacks etc. Performance management as it affects human resources is to ensure organizational goals are met by training, motivating and rewarding employees by adopting best practices to achieve competitive advantage. As it applies to Banc Royale at this point in time, there is a need for management to have meetings and round table discussions with existing employees that the organization require to retain and get them to understand the reasons for the decision taken and make them see reason, in addition to this, appraisal could be done for the existing employees so that promotion exercise can be undertaken or probably an increase in compensation so as to win their hearts. The human resource management department of any organization is charged with the responsibility of managing employees, employee welfare and employee performance in alignment to the organizational goals and objectives, it is however in the purview of HRM to direct and guide employees and management to behave in such a manner that would ensure both personal and organizational goals are aligned and delivered. This describes the link between organizational behavior and human resource approaches and concept all described in this report. Human resource management can be used as a tool by management for shaping organizational behavior. The relationship between organizational behavior and human resource management stems from the fact that human resource management can be used as a tool for shaping organizational behavior. The practice of performance management also helps in the integration of other HR practices such as talent management, training and development, reward system management that have been discussed in this report to ensure they are all interrelated and be able to complement each other to achieving overall organizational health goals and objectives. Performance management systems aid the integration and enmeshment of HR policies with overall business organizational goals. REFERENCES Aguinis, H. (2009),†Performance Management (2nd ed.)† Upper Saddle River, NJ: Pearson Prentice Hall. Aguinis H. & Pierce Charles A (2007), â€Å"Enhancing the relevance of organizational behavior by embracing performance management research†, Journal of Organisational Behavior Bacharach, S. B. & Lawler, E. J. (1980),†Power and politics in organizations†, San Francisco: JosseyBass. Baron, R.A. (1983), â€Å" Behaviour in Organizations†,. New York: Allyn & Bacon, Inc. Bergiel B. J., Bergiel, E. B., & Balsmeier, P. W. (2008),†Nature of virtual teams: A summary of their advantages and disadvantages†, Management Research News, 31(2), 99-110. Centre for Strategy & Evaluation Services (October 2003) – INDICATORS TO MEASURE THE COSTS EFFECTIVENESS OF DIVERSITY POLICIES IN ENTREPRISES- FINAL REPORT Dawson Mark J. & Mark L. Jones(n.d), â€Å"Herding Cats- Human Change Management† Eisenhardt, K. M. And L. J. Bourgeois (1988), â€Å"Politics of strategic decision making in high-velocity environments: Towards a midrange theory†,Academy of Management Journal, Eidson C., (2009) ,†The benefits and liabilities of virtual teams†, Available from ( http://expertaccess.cincom.com) Accessed on 31st July 2013 Equality and Diversity – Policy and Procedures http://www.grundon.com/PDFs/dutyOfCare/Equality%20Diversity%20Policy%20Procedure%20-%20Jun09.pdf (Accessed 1st July 2013) Gandz J. 2001, â€Å"A Business Case For Diversity† Copyright Queen’s Printer of Ontario Gà ¼ngà ¶r P. (2011),†The Relationship between Reward Management System and Employee Performance with the Mediating Role of Motivation: A Quantitative Study on Global Banks’’, 7th International Strategic Management Conference Greenberg J.(2005), â€Å"Diversity in the workplace† http://diversity.sdce.edu/content/diversity-workplace-benefits-challenges-and-solutions (Accessed 2nd July 2013) Heller R, A. Laurito, Kurt J., M.Martin, Fitzpatrick R. & K. Sundin(2010), â€Å"Global Teams: Trends, Challenges and Solutions†, Cornell Center for Advanced Human Resource Studies, New York. Kaufman, B. (2010), ‘‘SHRM Theory in the Post-Huselid Era: Why It is Fundamentally Mis-Specified’, Industrial Relations, 49 (2): 292. Knouse Stephen B. (2008),†Issues in Diversity Management†, DEFENSE EQUAL OPPORTUNITY MANAGEMENT INSTITUTE DIRECTORATE OF RESEARCH, Internal Report No 05-08, pp 10-13 Maslow, A (1954). Motivation and personality. New York, NY:

The Atlantic Slave Trade Was Motivated By Race Or...

Many historians have argued that the Atlantic slave trade was motivated either by race or economics. Personally, I find this to be true. With new European colonies being started around the world, there became a need for a labor force that could help economically and financially in the cheapest way possible. When the people figured out that they could go on voyages to Africa and come back with 200+ sets of hands for manual labor, they exploited this. Slaves would be bought and owned by citizens to help do everyday tasks and a tremendous amount of manual labor. However even though a great portion of slavery was for financial reasons, it soon became a thing due to racism as well. These Africans that were brought over were thought of as â€Å"not human† and used this as a reason to participate in the treacherous act that is slavery. Many elements that denominated from economics and racism were the causes for the Atlantic Slave trade. Per CBS news’s timeline for the slave tr ade, 1502 was the first year that African slaves were reported in the new world. The reasons for this was a need of a labor force that would be very economically substantial but very effective and Africans who, at the time, were thought of as less-than people, not smart, but strong enough to help work for their captors, were the perfect fit for the roll. This wasn’t just in the British colonies and north America. The Atlantic slave trade had massive amounts of Human labor being shipped all over the Americas. TheShow MoreRelatedAfrican People s Fight For Independence And Racial Equality Essay1240 Words   |  5 Pageseach race possess characteristics or abilities specific to that race, especially to distinguish it as inferior or superior to another race or races. Nelson Mandela an iconic figure for the black movement once said â€Å"No one is born hating another person because of the color of his skin, or his background, or his religion. 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