Kingfisher Case Study

EISSN 2277-4955 THE KING WITHOUT FISHES†¦!!! [CASE ON CRISIS OF KINGFISHER AIRLINES] Prof. Bhavik M. Panchasara Marwadi Education Foundation’s Group of Institutions, RajKot, [email  protected] com ABSTRACT Indian Aviation Industry is one of the fastest growing markets in the world. But nowadays it is in the news due to different reason. And that is the failure of one of the leading aviation player – Kingfisher Airlines. The airline has been facing financial issues for many years. Till December 2011; Kingfisher Airlines had the second largest share in India's domestic air travel market.However due to the severe financial crisis faced by the airline, it has the fifth largest market share currently. Even the company have no funds to pay the salaries to the employees and is facing several other issues like fuel dues; aircraft lease rental dues, service tax dues and bank arrears. This case outlines the financial turmoil of the Kingfisher in detail. Keywords: Aviation industry, Kingfisher Airlines, financial turmoil, financial issues, crisis and debt restructuring INTRODUCTION: Kingfisher Airlines is an airline group based in India.Its head office is The Qube in Andheri (East), Mumbai; and Registered Office in UB City, Bangalore. Kingfisher Airlines was established in 2003. It is owned by the Bengaluru based United Breweries Group. Kingfisher Airlines, through its parent company United Breweries Group, has a 50% stake in low-cost carrier Kingfisher Red. The airline started commercial operations in 9 May 2005 with a fleet of four new Airbus A320-200s operating a flight from Mumbai to Delhi. It started its international operations on 3 September 2008 by connecting Bengaluru with London.The airline has been facing financial issues for many years. Till December 2011; Kingfisher Airlines had the second largest share in India's domestic air travel market. However due to the severe financial crisis faced by the airline, it has the fifth largest market s hare currently, only above Go Air. Kingfisher Airlines is one of the only seven airlines awarded 5star rating by Skytrax along with Cathay Pacific, Qatar Airways, Asiana Airlines, Malaysia Airlines, Singapore Airlines, and Hainan Airlines. Kingfisher operates 250 daily flights with regional and long-haul international services.In May 2009, Kingfisher Airlines carried more than 1 million passengers, giving it the highest market share among airlines in India. Kingfisher also owns the Skytrax award for India's best airline of the year 2011. BAUDDHIK VOLUME 3, NO. -1, JAN-APRIL-2012 84 EISSN 2277-4955 STARTING OF THE CRISES: Ever since the airline commenced operations in 2005, the company is reporting the losses. But the situation became more horrible after acquiring the Air Deccan in 2007. After acquiring the Air Deccan, the company suffered a loss of over Rs. 1,000 crore for three executive years. By early 2012, the airline accumulated the losses of over Rs. ,000 crore with half of it s fleet grounded and several members of its staff going on strike. Following table 1 highlights losses of the company since inception: Table 1: Net Reported Losses and debts since inception (Rs. In Crores) Year Loss Secured Loans Unsecured Loans Mar-11 -1027. 4 5,184. 53 1,872. 55 Mar-10 -1646. 22 4,842. 43 3,080. 17 Mar-09 -1608. 83 2,622. 52 3,043. 04 Mar-08 -188. 14 592. 38 342. 00 Jun-07 -419. 58 716. 71 200. 00 Jun-06 -340. 55 448. 16 3. 50 Mar-05 -16. 79 159. 42 125. 06 DEBT RESTRUCTURING: In the situation of loss and tough financial condition, the company went for more loans.Table 1 shows the portion of secured and unsecured loans taken by the company. Due to heavy burden of debt and interest, in November 2010, the company adopted the way of debt restructuring and under that total 18 leading lenders, those have landed total Rs. 8,000 crores, agreed to cut interest rates and convert part of loans to equity. As per the contract, lenders have converted Rs. 650 crores debt into p reference shares which will be converted into equity when the company lists the on the Luxembourg Stock Exchange by selling global depositary receipts (GDR).Shares will be converted into ordinary equity at the price at which the GDRs are sold to investors. Besides the 1,400 crore debt which will be 800 crore converted into preference shares, another CRISIS TILL CONTINUE: Debt restructuring also couldn’t change the game. By restructuring, company had reduced the interest charges by Rs. 500 crores every year, but due to the high leverage condition and increase in cost, the company started to face the liquidity problem. The company had no funds in hand and it created the following payment problems.DELAYED SALARY: Kingfisher Airline has staff strength of 6,000 and spends 58 crore on salaries a month. According 173. 66 to the first quarter financial results, it has increased from crore under the employees cost head, which has 163. 40 crore during the same quarter last year. Kingfi sher Airlines delayed salaries of its employees in August 2011, and for four months in succession from October 2011 to January 2012. Kingfisher also defaulted on paying the Tax Deducted at Source from the employee income to the tax department. debt has been converted into redeemable shares for 12 years.Due to debt restructuring, the company able to down the average interest rate to 11% and to save Rs. 500 crores every year in interest cost. BAUDDHIK VOLUME 3, NO. -1, JAN-APRIL-2012 85 EISSN 2277-4955 FUEL DUES: In the past several years, Kingfisher airlines had trouble paying their fuel bills. Due non-payment, several Kingfisher's vendors had filed winding up petition with the High Court. As on Nov 2011, winding up petition of seven creditors was pending before the Bangalore High Court. In the past Lufthansa Technik & Bharat Petroleum Corporation Limited (BPCL) had also filed winding up petition against Kingfisher Airlines.Here are some cases: ? ? HPCL: In Jul 2011, Hindustan Petrol eum Corporation Limited (HPCL) stopped the fuel (ATF) supplies for about two hours to Kingfisher airlines owing to the non-payment of dues. Situation was later resolved. ? BPCL: Bharat Petroleum Corporation in 2009 had filed a case against Kingfisher airlines for non-payment of dues. High court in an order said that the entire amount 245 crore had to be paid by Nov 2010 and the airline paid it in instalments. AIRCRAFT LEASE RENTAL DUES: Since 2008, it has been reported that Kingfisher Airlines has been unable to pay the aircraft lease rentals on time.Due to that, the Kingfisher Airlines has grounded 15 out of 66 aircraft in its fleet as it was unable to meet the maintenance and overhaul expenses. Here are the some major issues with: ? GECAS: In Nov 2008, GE Commercial Aviation Services threatened to repossess 04 leased planes in lieu of default. Kingfisher Airlines initially BAUDDHIK On 9 December 2011, S. K. Goel, chairman, Central Board of Excise and Customs (CBEC) announced that CBEC is considering legal action against Kingfisher for not paying service tax. As on 10th Jan 2012, Kingfisher Airlines has service tax arrears of 70 crore.The Ministry of Finance has given a concession to Kingfisher and instructed them to pay the dues by 31st Mar 2012. In Jan 2012, SERVICE TAX: Kingfisher received a notice from the Airports Authority of India on February 2012 regarding accumulated dues of 255. 06 crore. The airline was operating on a cash and carry basis for the last six months, with daily payments amounting to 0. 8 crore. AAI REPORTS: DVB: In Jul 2010, DVB Aviation Finance Asia Ltd (a lessor from Singapore), sued Kingfisher Airlines for lease rental default.Case was filed in a UK court on Jul 16, 2010 after Kingfisher did not pay for three month lease rental for A320 aircraft it leased from DVB. denied that it missed the payments. GECAS had filed a complaint with DGCA saying Kingfisher had defaulted on rentals for four A320 aircraft, and sought repossession of th e planes. In Jan 2009, The Karnataka High Court rejected petition by Kingfisher Airlines to restrain GECAS from taking any step to deregister and repossess the 04 aircraft in dispute. As a result, Kingfisher had to return the A320 aircraft to GECAS. VOLUME 3, NO. -1, JAN-APRIL-2012 87EISSN 2277-4955 Kingfisher paid 20 crore towards its dues for operational by February 20. With this, Kingfisher's market share clearly dropped to 11. 3%. The cancellation of the flights was accompanied by a BANK ARREARS: Kingfisher Airlines had not paid some bankers (Lenders) as per the Debt Recast Package (DRP) with lending banks. Till the end of Dec 2011, the arrears were estimated to be 260 crore to 280 crore. Lenders hence had told Kingfisher Airlines to clear its dues before they can release any more money sought by the Airline. Ravi Nedungadi, chief financial officer of UB Group however said that the arrears were 180 crore.State Bank of India (SBI) on 5th Jan 2012 declared Kingfisher Airlines a NP A. SBI is largest creditor and the leader of the consortium of banks in the DRP (Debt Recast Package) and has an exposure of NPA by following banks: State Bank of India Bank of Baroda Punjab National Bank IDBI Central bank of India Bank of India Corporation Bank THE CRISIS CONTINUE: During late February, 2012, Kingfisher Airlines started to sink into a fresh crisis. Several flights were cancelled and aircraft were grounded. The airline shut down most international short-haul operations and also temporarily closed bookings.Out of the 64 aircraft, only 22 were known to be 1,457. 78 crore. Thus, by Feb 2012, Kingfisher has been declared 13. 5% drop in the stocks of the company on 20 February 2012. The CEO of the airlines, Sanjay Agarwal was summoned by the Directorate General of Civil Aviation to explain the disruptions of the operations. The State Bank of India, which is the lead lender to Kingfisher airlines said that they would not consider giving any more loans to Kingfisher unless and until it comes up with a new equity by itself. Political activists also claimed that bailing or helping a private airline would lead to problems within the Government.By February 27, Kingfisher operated only above 150 out of its 400 flights and only 28 aircraft were functional. Reuters reported that if Kingfisher were to shutdown, it would be the biggest failure in the History of Indian Aviation. It was announced that the direct flights to the smaller airports of Jaipur, Thiruvananthapuram, Nagpur and also to Hyderabad's Rajiv Gandhi International Airport were all shut down and only one/two-stop flights from its main hubs of Delhi and Mumbai would operate. In response to a situation as bad as bankruptcy, Vijay Mallya announced that he had organized funds to pay all the employees' overdue salaries.With bank accounts frozen and huge debts due, it is unknown so as from where he arranged the money. But he apologized to his workers and said that he would pay them immediately. By thi s time, kingfisher had accumulated losses of 444 crore during the third quarter of the fiscal year 2011-12. December 2011 and part of the arrears. BAUDDHIK VOLUME 3, NO. -1, JAN-APRIL-2012 88 EISSN 2277-4955 FROZEN BANK ACCOUNTS: On March 3, 2012, The Central Board of Excise & Customs of India froze many more Kingfisher accounts as it was unable to pay all the dues as per schedule. Kingfisher was meant to pay 1 crore per working day.Aviation minister Ajit Singh warned the airline about the temporary suspension of the license until the crisis was sorted out. He announced that the rest of the airline's fleet would be grounded and all flights cancelled until the crisis came to an end. This would be only one step from permanently closing the airline. IATA SUSPENSION: On March 7, 2012 IATA suspended ticket sales of Kingfisher airlines citing non-payment of dues as the primary reason, and they said that sales services will only be restored once Kingfisher settles ICH (IATA Clearing House) account.IATA also immediately directed all travel agents to stop booking tickets for Kingfisher. This would affect Kingfisher's business by around 30%. Kingfisher claimed that frozen bank accounts was the main cause of being unable to pay the IATA, and the airline started making alternate arrangements for the sale of tickets. Soon it became difficult for the airline to follow the much smaller schedule that it earlier released as even more pilots began to go on strike. UNCERTAINTY AHEAD: After analysing the entire scenario, there are strong possibilities of more difficult situation in the last month of fiscal year 2011-12.The company is in dilemma of finding help, but from where? 2. TEACHING NOTES 1. The purpose of the case is to make the students aware about the situation of financial crisis in any organisation. The issues involved in the case are about the financial turmoil and its effects on the business and market share of the company. 3. 4. 2. 1. Is the Problem of Kingfisher Ai rlines Industry Specific or Company Specific? What is the Impact of High Level of Debt on the operating performance of company? Should Government bailout Kingfisher Airlines? According to you, what are the possible ways for the company to overcome this situation?QUESTION FOR DISCUSSION: Government has refused for bailing and all the lenders and bankers have no more trust. The employees are also not able to tolerate the salary crisis and the slipping market share leads the more difficulties. Promoter Vijay Malya has to decide the way ahead. Whether is it possible to save the company? There are very few alternatives. As per the previous news, Etihad Airways was interested in investing in Kingfisher by providing equity in exchange for a stake in the airline. Also involved in the talks was the International Airlines Group, owner of British flag carrier British Airways and Spanish flag carrier Iberia.But the question is the permission by Government. So at present there is very tough situ ation for Vijay Malya and for the company. Will new fiscal year bring any solution for the company? Let’s wait and watch. BAUDDHIK VOLUME 3, NO. -1, JAN-APRIL-2012 89 EISSN 2277-4955 3. The case would be first given for individual reading for 15 min and then for 15 min the case can be discussed in groups of 4-5 students. 4. The case can be taught along with the concepts like ways to overcome the crisis and surviving strategies required to save the organisation keeping in mind the possible different options available. 5.The students can come prepared with topics of prevailing crisis in Indian aviation industry and REFERENCES: 6. other factors related to the aviation industry in detail. Cross reference can be made taking into account the strategies used by the local, market of the falling organisation. national and international players to capture the slipping http://www. flykingfisher. com/mediacenter/press-releases/kingfisher-airlinesannouncement. aspx http://in. finance. yah oo. com/news/kingfisherairlines-q3-loss-widens-033419822. html http://timesofindia. indiatimes. com/india/Kingfi sher†¦ /12258986. cms http://articles. economictimes. ndiatimes. com/2 011-12-08/news/30490358_1_pilots-industrialaction-kingfisher airlines http://profit. ndtv. com/News/Article/aai-warnskingfisher-airlines-to-settle-dues-297284 http://articles. economictimes. indiatimes. com/2 010-09-26/news/27585421_1_cash-and-carrymode-bpcl-s chairman-kingfisher-airlines http://timesofindia. indiatimes. com/business/indiabusiness/Kingfisher-may-have-to-weather-pilotstorm-next/articleshow/12214372. cms Annexure 1: Market share of Kingfisher Airlines as on January 2012 in the domestic Aviation Airline/Company Jet Airways (Including Jet Lite) Indigo Air India Spice Jet Kingfisher Go Air Share 28. 8% 20. 8% 17. 1% 16. 3% 11. 3% 5. 8% Source: http://in. finance. yahoo. com/news/kingfisher-airlines-q3-loss-widens-033419822. html BAUDDHIK VOLUME 3, NO. -1, JAN-APRIL-2012 90 EISSN 2277-4 955 Annexure 2: Price Movement and Performance Charts of Kingfisher Airlines Annexure 3: Index Comparison and Ownership Pattern of Kingfisher Airlines Source:http://www. bseindia. com/bseplus/StockReach/AdvanceStockReach. aspx? scripcode=532747 Annexure 4: Comparative Balance Sheet of Kingfisher Airlines [Rs. In crores] Sources Of Funds Total Share Capital Equity Share Capital Share Appl.Money Pref. Share Capital Reserves Net worth Mar '11 1,050. 88 497. 78 2. 95 553. 10 -4,005. 02 -2,951. 19 Mar '10 362. 91 265. 91 7. 48 97. 00 -4,268. 84 -3,898. 45 Mar '09 362. 91 265. 91 8. 11 97. 00 -2,496. 36 -2,125. 34 Mar '08 135. 80 135. 80 10. 09 0. 00 52. 99 198. 88 Jun '07 135. 47 135. 47 0. 00 0. 00 249. 23 384. 70 Jun '06 98. 18 98. 18 0. 00 0. 00 125. 95 224. 13 Mar’05 16. 20 16. 20 0. 00 0. 00 -2. 54 13. 66 BAUDDHIK VOLUME 3, NO. -1, JAN-APRIL-2012 85 EISSN 2277-4955 Secured Loans Unsecured Loans Total Debt Total Liabilities Application Of Funds Gross Block Less: Accum.Dep. Net Block Capital WIP Investments Inventories Sundry Debtors Cash & Bank Bal. Total CA Loans & Adv. FDs CA, Loans & Adv. Current Liabilities Provisions Total CL & Prov. Net Current Assets Misc. Expenses Total Assets 2,254. 26 682. 37 1,571. 89 673. 35 0. 05 187. 65 440. 53 88. 18 716. 36 5,380. 19 164. 18 6,260. 73 4,463. 86 62. 11 4,525. 97 1,734. 76 125. 84 4,105. 89 2,048. 14 493. 62 1,554. 52 980. 61 0. 05 164. 88 322. 49 50. 91 538. 28 4,604. 31 155. 56 5,298. 15 3,908. 03 46. 77 3,954. 80 1,343. 35 145. 64 4,024. 17 1,891. 80 316. 29 1,575. 51 1,630. 95 0. 05 147. 5 229. 84 49. 41 426. 50 3,640. 42 122. 45 4,189. 37 3,814. 63 45. 55 3,860. 18 329. 19 4. 51 3,540. 21 322. 33 43. 55 278. 78 346. 25 0. 00 48. 64 27. 16 5. 84 81. 64 832. 49 274. 29 1,188. 42 687. 31 9. 52 696. 83 491. 59 16. 64 1,133. 26 340. 77 33. 74 307. 03 357. 62 0. 41 61. 62 35. 24 422. 05 518. 91 149. 77 395. 00 1,063. 68 449. 15 6. 94 456. 09 607. 59 28. 75 1,301. 40 247. 33 16. 40 230. 93 286. 53 0. 41 57. 2 6 13. 06 181. 17 251. 49 232. 03 75. 31 558. 83 434. 05 5. 93 439. 98 118. 85 39. 08 675. 80 55. 25 4. 52 50. 73 153. 09 0. 45 36. 40 8. 27 47. 08 91. 75 47. 8 35. 85 174. 88 108. 77 1. 07 109. 84 65. 04 28. 83 298. 14 5,184. 53 1,872. 55 7,057. 08 4,105. 89 4,842. 43 3,080. 17 7,922. 60 4,024. 15 2,622. 52 3,043. 04 5,665. 56 3,540. 22 592. 38 342. 00 934. 38 1,133. 26 716. 71 200. 00 916. 71 1,301. 41 448. 16 3. 50 451. 66 657. 79 159. 42 125. 06 284. 48 298. 14 Source:http://www. moneycontrol. com/financials/kingfisherairlines/balancesheet/KA02#KA02 Annexure 5: Comparative P A/c of Kingfisher Airlines [Rs. In crores] Income Net Sales Other Income Total Income Expenditure Raw Materials Power & Fuel Cost Employee Cost Other Manu.Exp. Sell. & Admn Exp. 56. 69 2,274. 03 680. 54 1,192. 80 997. 34 40. 89 1,802. 99 689. 38 1,108. 82 996. 85 51. 19 2,602. 62 825. 42 1,112. 85 1,062. 74 43. 79 889. 30 244. 96 408. 21 180. 39 45. 94 979. 50 247. 72 617. 56 146. 78 36. 73 625. 45 163. 04 42 5. 48 114. 38 5. 77 92. 98 31. 76 104. 78 29. 13 Mar '11 6,233. 38 81. 58 6,314. 96 Mar '10 5,067. 92 -333. 30 4,734. 62 Mar '09 5,269. 17 598. 90 5,868. 07 Mar '08 1,456. 28 113. 62 1,569. 90 Jun '07 1,800. 21 342. 10 2,142. 31 Jun’06 1285. 42 59. 64 1345. 06 Mar’05 305. 55 14. 73 320. 28 BAUDDHIK VOLUME 3, NO. 1, JAN-APRIL-2012 86 EISSN 2277-4955 Misc. Exp. Total Expenses PBDIT Interest PBDT Depreciation Other Written Off Profit Before Tax Extra-ordinary items Tax Reported Net Profit Shares in issue (lakhs) EPS (Rs) Equity Dividend (%) Book Value (Rs) Per share data (annualised) 4,977. 79 -20. 64 0. 00 -70. 46 2,659. 09 -61. 95 0. 00 -150. 54 2,659. 09 -60. 50 0. 00 -83. 88 1,357. 99 -13. 85 0. 00 13. 90 1,354. 70 -30. 97 0. 00 28. 40 981. 82 -34. 69 0. 00 22. 83 31. 06 -54. 05 0. 00 43. 96 87. 94 5,289. 34 1,025. 62 2,340. 32 -1,314. 70 203. 02 38. 01 -1,555. 73 72. 99 -455. 35

Learning Not Litigating Essay

Introduction: With the average age of working employees increasing, the amount of people covered under the Age Discrimination in Employment Act (ADEA) has also grown. With the rise in workers over the age of 40, there has been some indiscretion in regards to the training or lack of training made available to this group. This paper gives an in depth analysis of the findings of Todd J. Maurer and Nancy E. Rafuse in their article Learning, not litigating: Managing employee development and avoiding claims of age discrimination. The article addresses ways to avoid lack of training by creating an environment conducive to continuous learning which promotes employee growth and add value to the employer. The ways older workers have been denied and discouraged from training is explained as well as how the legal ramifications of these actions could hurt an organization. Because of the potential prevalence of age related discrimination, the definitions of terms, conditions and privileges of employment have been defined and may become increasingly actionable. Maurer and Rafuse detail how age discrimination can be avoided in training and development practices. Bringing change and evolution to and organization’s training practices through the use of top-down management training in an attempt to change culture and policies, decisions about who is trained, the supervision of development and bringing awareness to the potential effects of stereotypes. Topic Discussion: Training and Development Opportunities Are Increasingly Important to Today’s Workers Training and developmental activities are of paramount importance when it comes to keeping a company’s workforce competent. For this reason it is important to not only implement training but to also vary the training exercised as there are many forms and people learn in different ways. A few examples listed by Maurer and Rafuse include (but are not limited to) correspondence courses, independent reading, viewing videotapes, technology-based training, job rotation, special committees, and coaching (Maurer & Rafuse, 111). Training becomes important to the older workforce as technological advances occur as well as other innovations alter the way that businesses operate. Because of the ever-changing workplace it is necessary for employees to receive training so that they may adapt and thrive in their working environments. It is not a lack of ability or ignorance to change that is hurting the aging population, it is a lack of employer-provided training that can prevent the growth and progression of an employee. This is why continuous learning has become a prominent factor in the careers of older workers. As business practices change the way an organization operates, the organization needs to increase the amount of training offered to its employees. If there is innovation in business practices then there needs to be innovation in training. In the text Employee Training and Development, Raymond A. Noe discusses Nokia and its definition of continuous learning and how it means that employers support employees’ growth by providing them with the opportunity to develop themselves and to stay technologically current (Noe, 53). This type of environment, especially in a telecommunications company, is important to not only employee growth but also to company growth as the more employees who possess skill and knowledge will likely increase positive performance. The promotion of learning, not the discouragement of learning, will support the aging population and give them the tools necessary to succeed in the workplace bringing about commitment and prosperity to the organization (Noe, 53). Continuous training and learning need to be implemented because the workplace environment has evolved. Maurer and Rafuse allude to this by stating, â€Å"While mid- and late-career stages used to be viewed as periods of maintenance in which workers could avoid learning many new things, most workers now need to continuously learn and adapt† (Maurer & Rafuse, 112). Employees no longer have the ability to simply use what they know until they retire; employees are required to constantly experience gains in knowledge and skill to competitive and productive. The workplace is always changing and brings new challenges which increase the competition for jobs as employers want more knowledgeable and experienced employees. For this reason effectively using the aging workers by combining experience with new skills is in the best interest for organizations (Maurer & Rafuse, 113). Older workers denied access to training Not involving older workers, by failing to nominate, select, or inform them of opportunities to partake in training or development can be seen as a form of discrimination. While there is little documentation on this subject, published articles and literature have suggested that decision makers, whether that be an employee’s manager or a member of human resources, may deny additional training to older workers based on the idea that older workers cannot learn or do not want to learn. Also, if it is believed that an older worker will retire soon, decision makers may be unwilling to provide training to this employee under the assumption that it will reduce the company’s returns on investments. In a study completed by the Department of Labor, 55-64 year old workers are only 1/3 as likely to complete training as their 35-44 year old co-workers (Maurer & Rafuse, 113). In general, organizations that do not place a high value on their older employees do not have active policies or programs in place to advance or develop these employees (Armstrong-Stassen, & Cattaneo). Fewer job growth opportunities are given to older workers as well. Instead of being given job opportunities that are complex, that promote acquiring new skills and learning about different jobs, or that include status or location changes, older workers may be given routine job assignments. While it is difficult to analyze whether this may be a result of discriminatory treatment, the combination of a denial of training and comparatively different treatment of younger works (ex: younger workers receive training while older workers are denied the same training) can be legally supported as age discrimination. Because of the company’s failure to provide training to an older worker, this can result in that employee being denied promotions, being terminated, or being demoted (Maurer & Rafuse, 112-113). It is important to keep in mind that employers are not required to provide training to older workers if systems (computer systems or machinery) have been upgraded – ‘If younger employees adapt without training, then older workers must also’ (Maurer & Rafuse, 113). Older workers discouraged from training A less obvious form of discrimination would be the discouragement or lack of support for older workers to receive training and development opportunities, which can negatively affect terms, conditions, or privileges of employment or the status of an employee. The idea that people change in unfavorable ways with age is a belief held by various individuals, and this belief can affect the perceived ability of older employees’ learning abilities in the regards to the workplace (Maurer & Rafuse, 113). Employees aged 50 and older where described as being ‘inflexible, averse to change, and resistant to learning and understanding new technologies’ in a survey featuring HR executives as the respondents (Maurer & Rafuse, 114). Organization behavior literature has suggested that negative stereotypes may indirectly affect the behavior of older workers by influencing their ideas of what is normal aging behavior; this can lead to older workers conforming to the expectations set by negative stereotypes. In a recent study, regression analysis reaffirmed that older workers who hold greater beliefs that fellow older workers lack the ability and/or desire to further develop their job knowledge or skills are also less likely to have any interest in receiving any training and development activities themselves (Maurer, et all, 15). The more that older workers are exposed to these negative stereotypes and/or perceived discrimination can reduce older workers’ self-confidence, pursuit of learning, self-esteem, personal control, job involvement, and job satisfaction. Within a legal context, the more subtle types of discrimination such as exposure to stereotypes, lack of encouragement and motivation, and lack of access to training and development opportunities are likely to be seen as hostile-environment or constrictive-discharge claims. Since hostile-environment claims require severe and pervasive harassment and constructive discharge claims require that working conditions are so intolerable that a reasonable person would resign, it is difficult to take action against subtle forms of age discrimination in regards to training and development in court (Maurer & Rafuse, 115). What will be Legally Actionable in the Future? Age-related effects on training and development opportunities could become increasingly actionable based on how the courts have defined the terms, conditions, and privileges of employment. In the future, training and development opportunities may become more closely related with job opportunities including promotions, demotions, hiring, transfers, and reductions in the work force. This means that training and development may become the variable that determines an employee’s success or failure (termination) within the workplace. Denying or discouraging older workers access to training or development opportunities would then been seen as more ‘severe’ or ‘intolerable,’ which would lead to more legally actionable hostile-environment and constructive-discharge claims (Maurer & Rafuse, 115). Avoiding Age Discrimination Avoiding age discrimination in the allocation of training and development opportunities is not unlike other forms of discrimination. The best solution is to implement and follow human resource policies that mandate the use of job relevant criteria for decision making. It has also been shown that these same policies can increase the motivation to participate in learning by the workforce (Maurer & Rafuse, 116). There are four major areas in which managers need to evaluate their susceptibility to age discrimination litigation: culture and policies, decisions about training and development, supervision and support, and training managers on ADEA and the effects of stereotypes (Maurer & Rafuse, 116). Within these areas, it is important to focus on differences in access and encouragement. Culture and Policies Opportunities within a company must not be distributed based on anything except job related criteria. By establishing policies that avoid discrimination, a company’s culture will reflect those values. First, human resource policies should specifically state that all decision must be free of discrimination including age biases. These policies must be in plain language and available to all employees. In addition, current policies must be evaluated to ensure there is no intentional or unintentional age discrimination. This examination will help avoid disparate treatment and impact. Culturally, managers must take an active role in disseminating information about opportunities and not rely on informal communication channels. One way to avoid discrimination is to encourage all employees to take part in training, job assignments and job rotations (Maurer & Rafuse, 117). Training & Development Decisions The decision making process for allocating the limited training and development opportunities must be established and described in policy. This will guide managers in making lawful choices. The focus should be on job and task related factors which are best for the company and the most defensible (Maurer & Rafuse, 117). Companies cannot allow managers to give vague reasons for their training decisions because it may be based on stereotypes and ageist assumptions. Often, older employees are thought to fear new technology and cannot learn new skills (Noe, 461-465). A good policy to implement is to ask for self-nominations when it is possible. This will help managers identify motivated employees and provide justification if it is later needed (Maurer & Rafuse, 117). All final decisions to determine which employee should receive training and development resources should be based on who has the ability to benefit from the additional investments. Valid selection and training HR practices not only benefit employee self-efficacy but also the company’s performance from the macro perspective. Research has shown that a company’s performance can significantly change, even within a single year, with job- related selection and training systems (Iddekinge, 2009). There should also be a monitoring and audits of all training decisions to ensure fair distribution. It is illegal to discriminate against women, minorities and people over 40 years old. However, ageist practices tend to do not have the same stigma that workplace racism or sexism carries (Maurer & Rafuse, 117). Supervision and Support Developmental Relationships Beyond having policies that layout proper training and development protocol, managers need to recognize the importance of supporting and encouraging all employees equally. Companies might consider making managers responsible for meeting training and development involvement goals (Maurer & Rafuse, 118). Higher level managers should be receiving feedback from employees on the status of their development needs. This could be used as part of an evaluation that measures a manager’s effectiveness (Maurer & Rafuse, 118). Having open channels of communication between managers and subordinates is necessary to ensure no one feels left behind. Managers can use performance evaluations to encourage more training, get feedback and set goals for career development. Older workers feeling or becoming obsolete because of a lack in development and training can lead to poor performance. Part of the career development plan can be an introduction to new technologies as they become part of the required skills (Noe, 461-465). One factor that managers can use with resource allocation to older workers is plans for retirement if communicated by the employee (Maurer & Rafuse, 117). To further open communication channels and increase opportunities, companies can offer access to careers counselors and programs such as mentoring, apprenticeships and learning networks (Maurer & Rafuse, 118). Train Managers on ADEA The final step in avoiding age discrimination and possible litigation is to train managers and employees on The Age Discrimination in Employment Act (ADEA). It would be a good investment for companies to hold training sessions on age-related stereotypes and discrimination regularly (Maurer & Rafuse, 118). There should be a strong emphasis on how stereotypes can affect managerial judgments. These trainings can be extended to employees and new hire orientations to avoid an ageist jokes and criticism which can create a hostile work environment. These sessions are a good time to reinforce a zero-tolerance discrimination policy and by doing so can portray a good faith effort which can help limit liability during litigation. Overall, managers need to understand that older workers are as differentiated and diverse as any other group. Their abilities and motivation to continuously learn and develop vary by the individual. Managers cannot assume retirement age or fail to see an older worker’s ability to grow and be a good investment for the company. Class Questions: * Can anyone think of new technology that can improve or promote employing training and development? * Can you think of ways to encourage, instead of discourage, older workers to take advantage of learning and development opportunities? * What are possible unintentional ageist assumptions in the workplace? Bibliography: Iddekinge, Chad. â€Å"Effects of Selection and Training on Unit-Level Performance.† Journal of Applied Psychology. 94.4 (2009): 829-843. Print. Marjorie Armstrong-Stassen, & Cattaneo, J. (2010). The effect of downsizing on organizational practices targeting older workers. The Journal of Management Development, 29(4), 344-363. doi: http://dx.doi.org/10.1108/02621711011039150 Maurer, Todd J., and Nancy E. Rafuse. â€Å"Learning, Not Litigating: Managing Employee Development And Avoiding Claims Of Age Discrimination.† Academy Of Management Executive 15.4 (2001): 110-121. Business Source Premier. Web. 9 Oct. 2012. Noe, R. A.. Employee Training & Development. . 4th. New York, NY: Irwin Professional Pub, 2008. 461-465. Print. Todd J. Maurer, Frank G. Barbeite, Elizabeth M. Weiss, Michael Lippstreu, (2008),†New measures of stereotypical beliefs about older workers’ ability and desire for development: Exploration among employees age 40 and over†, Journal of Managerial Psychology, Vol. 23 Iss: 4 pp. 395 – 418 United State Senate: Special Committee on Aging. (2011). Retrieved from website: http://aging.senate.gov/issues/olderworkers/index.cfm

Improve own & team practice in schools Essay

Team work in schools is important as it’s a development not only for you but also for others. It helps to build a positive relationship with those that are within your team, as well as showing that there is support for one another within the structure. Whatever the size the school you work in, you will be part of a group of people who each have a different role to fulfil while working to support individuals or groups of pupils. Whilst each member of the team know and understand their own role, they should also know and understand the roles of other team members, and how they all fit together in a school environment. Where there is team work, responsibilities and tasks are shared between the team, therefor, the tasks will be completed more effectively and also in a good time scale. Each team member has their own skills and expertise, communicating with them not only increases your own knowledge and skills, but also allows you to understand your own role within the team. Communication is a very important tool in team work; you can ask for advice or even give advice about certain subjects or topics, as well as sharing ideas on them too. When it comes to the pupils, communicating between each other is very important as you will share information on the child such as the child’s welfare, medical information or even their progress within the classroom. When adults are working effectively together, working as part of a team, the children will see them as role models and will follow, copy and mimic what they see. They will not only use this in and around the school, but also when they are at home. To a parent this shows that the school is setting a good example to its pupils, which in turn will give the school respectively high standards and a great reputation. 3. 2 As well as working and having shared roles, the team must have clear purpose and objectives. The main purpose of team work are: To provide a safe environment for the pupils. To motivate the pupils to use their full intellectual potential. To support the pupils development. To support and respect one and other. In the setting to which I am part of a team, there are a number of purposes and objectives of my team in which they work, for example working in a team makes things easier for everyone. This could be with activities, paperwork, observations, snack times etc, this makes our school run more easily and effectively. Our schools main objectives is to create a safe educational environment for the pupils to learn in and also help them to develop in all areas. Our setting offers a variety of activities for the children to take part in, such as health and beauty, life skills, fun fit leisure and employability. These will help the pupils to develop in areas that focus on individual development rather than development of the group on the whole. These will help the individual pupil reach the goals set for them and prepare them for when they leave school into a working environment. 3. 3 My own role and responsibilities as teaching assistant is to work under the instruction and guidance of the teaching staff and senior staff. I work in a Post 16+ Special Needs School. We have about 12 student that attend our school, all having individual needs. I work with the class teacher, supporting learning for the pupils and providing general support to the teacher in the management of the pupils and the classroom as well as the outdoor activities. My role as a teaching assistant is to take on tasks such as to supervise the pupils, to ensure they have the correct tools to which is needed for the lesson to which is being taught and to ensure the pupils clear up afterwards, this allows the teacher to concentrate on teaching. To support pupils with particular individual needs, sometimes my role is to work one to one, while others work in small groups or work with one of these groups. The teacher is not able to give every pupil individual attention, assistants provide essential support to the pupils and the lead teacher. My responsibilities also include: †¢ Supervising creative activities (e. g. when the pupils use scissors, glue or even using the computer). †¢ giving support to pupils (individually or groups) who need support in a particular task. †¢ helping pupils to learn through role play or other play activities. †¢ offering support and understanding to those who are upset. It is essential to have effective open communication with others within the team through regular meetings to ensure you have a clear plan of yours and others roles and to be able to establish any action plans and deadlines that are in place. This will give you an understanding of how what you are doing fits into the whole team and school. 3. 4 The reason why it is important in respecting the skills and expertise of others is to develop a good working relationship with other members of your team. Each member of the team is equally as important as the other members of the team; as they will all bring something uniquely different to the team. When shared, via communicating, with each other, you can learn new skills and techniques, which then helps to develop your ongoing learning. It is always respectful to listen to the opinions of others as well as listening to their knowledgeable ideas. This is not only showing that you respect them as a person, but also their contributions to your development, and it also helps to develop a good working relationship with them. For a new member to join the team, they may feel intimidated in offering input at first. They may have new ideas on how to progress or help with something, but may not offer it in order to avoid any conflict with those who have been there for some time before they started. On the other hand, if a new member were to join the team and they said that something should be done differently, without listening to the opinions and advice of others, this may cause unease and problems within the team.

Write a memo describing how to make right business decisions for Essay

Write a memo describing how to make right business decisions for senior managers - Essay Example Timing – this is one of the most important aspects in decision making. No matter how right a decision may seem to be if its timing was wrong, then the decision is also wrong to the extent of its wrong timing (Zaratà ©, 2008). An example is timing when investing in the stock market. The simple rule known by all is ‘buy low, sell high’. This not withstanding, many still miss the point and majority loses a great deal basically due to wrong timing. Prices for stock can be low but that does not necessarily mean it is the right time to buy that particular stock. The same case applies where prices are high where this also does not imply it is the right time to sell. This is more of a norm rather than the rule. This scenario also applies elsewhere. Tailoring – under this criterion the fundamental reality of situations and circumstances is that no single one is identical to the other. This therefore calls for senior managers to make decisions that serve the uniqueness of each situation. Lack of tailoring in making decisions is tantamount to absent mindedness thus bad decisions made. History – decisions and their outcomes give a hint on how successful a decision can be. Looking back to similar decisions made in similar circumstances is therefore important to predict the likely outcome. A senior manager should therefore make decisions basing this on history of similar approaches’ success or failure of others. Hoch (2004) says that in order to ensure that a good decision is made all the above have to work together since each situation needs its good timing, it is unique in its own sense therefore the need to have the decision tailored to fit its uniqueness and its history should be sort to predict success. When I was an employee at one of petroleum companies the branch manager then was faced with a looming shortage from the headquarters out of national oil crisis. He made

PTSD Essay Example | Topics and Well Written Essays - 750 words

PTSD - Essay Example Biological Basis of PTSD Some researchers suggest that there is a biological basis for PTSD but others are not sure whether there is a connection or not. According to Moisse (2011) a new study has shown that there is some type of biological connection. According to the new study, researchers had previously found that there is a connection between a hormone-like molecule called PACAP and the brain's ability to respond to stress. The researchers checked the PACAP levels and found that they were higher in people with PTSD. The challenge for this research was that this connection related only to women. These researchers also looked at how PACAP impacted fear in women. They found that a genetic encoding called PAC1 was more present in women who had PTSD and high levels of PACAP, also had this gene which is a gene that responds to estrogen. The researchers believe that this is a first step I helping find a way to predict who will get PTSD (Moisse, 2011). According to Howard and Crandall (2 007) the systems that are most used in PTSD are the autonomic system and the sympathetic systems. The autonomic system regulates the basic body systems without us thinking about it. The sympathetic system controls the handles our reaction to the "fight or flight" condition while the parasympathetic system works on physical symptoms like slowing the heart down, stimulating digestion and constricting the pupils of the eyes. The hippocampus of the brain remains in a state of "high alert" so that it can bring the body into a familiar state of what happened in similar threats from the past. In so doing, it will also overproduce the hormone, cortisol along with other "neuro-excitatory transmitters" and hippocampal cells will "degenerate and eventually die" (Trappler, 2010, p. 1). The brain and the other symptoms react very quickly as the individual is having a PTSD experience. The Video Reaction to Stress In the video, The Soldier's Heart many soldiers spoke about how they reacted to stre ss. It was clear that not only were their physical reactions to stress but also psychological ones. Many soldiers spoke about the physical symptoms of seeing things or hearing things that were not in their present life. They also spoke about becoming angry, depressed and attempting to ignore what they were feeling. Once soldier talked about crying uncontrollably and spending times just staring into space. The psychological aspects of PTSD were more devastating for the soldiers in the video because they were not allowed to talk about them. They stated that the military expects them to be able to handle what happened to them without assistance from counseling. The challenge is that many soldiers saw people die in front of them or had to kill people they did not know. These soldiers who were in Iraq stated that they found themselves drinking more frequently and drinking more alcohol than was normal for them, not wanting to be around people and talking more about Iraq to anyone who woul d listen. These psychological issues often created more challenges for them as they went through their lives. One soldier committed suicide by hanging himself with a garden hose because of his feelings about killing an innocent Iraqi woman. The challenge for the military is that up until recently, they were not doing anything to treat

A critical review of the reading materials Assignment

A critical review of the reading materials - Assignment Example The review credits the rise of the Western type of film to that of a way to reflect on American history. The author of the article hints toward the fact that sometimes a rise in a certain area of movies has a particular motive in terms of influencing society. I had never really thought of it like that but in times where there are different societal issues, it does seem true that within the realm of film, media is another way to influence or inform a whole audience, several theaters or DVDs at a time. It seems as if there is one movie about one type of subject, then a few others pop up to mimic it or have similar story lines all around the same time (especially if a movie has performed exceptionally well at the box office within its initial running). Unforgiven begins with a fast pace cut from opening credits which the author of the article discusses. There is brutality shown in the context of the film and establishes where the movie is to be set. It is apparent through the use of characters such as a cowboy and a whore, guns and a saloon in the initial setting that this will be a Western film and early on establishes that with the films audience. This sets the initial mood of the film rather fast and the descriptiveness the author used to describe the opening scenes is somewhat intense and summarizes the scene of violence. Not only is the setting of the film to be in a small one-horse town but it is noted early on that this is a reflection to the olden days when trains were a useful means of transport. It also indicates that there is some level of civilization or industry as symbolized by the railroad shown in the film. Though a person has to travel to the nearby railroad, this is also symbolic that this is small town that is a little bit off of the regular beaten path but is connected to the rest of the world regardless. The author continues to describe events in the

Management of Human Resource Assignment Example | Topics and Well Written Essays - 250 words

Management of Human Resource - Assignment Example A company with a good HRM that ensures recruiting the best employees, retaining the best performing workforce and awarding them may have an edge as far as competitive advantage is concerned (Jackson, Schuler & Werner, 2012). Companies such as Apple have been able to retain their best employees and ensuring competitive compensation. This has made the company have a competitive advantage in the mobile phone industry. Planning is essential to gaining a competitive advantage. Human resource management ought to proficiently make strategic plans that will sustain the firm for decades. Planning is essential since it ensures building of the capacity and capability of the employees (Jackson, Schuler & Werner, 2012). This may play an integral role in achieving full potential. Planning may further help in achieving a competitive organization behavior, making significant decisions such as hiring experienced professionals, determining competitive pay and tactics, determining competitive training programs and ensuring employee relations. To members of the organization, human resource management should deal with issues that may improve employee compensation, creating a good working environment and issuance of long term contracts hence boosting employees’ morale and raising their confidence (Jackson, Schuler & Werner, 2012). Further, human resource management should work towards the business continuity, boost financial returns and build an attractive business name that can impress or rather reward the company owners or investors. In addition, customers’ issues should be prioritized by the human resource management by encouraging innovativeness, lowering prices of products and ensuring both reliability and quality (Jackson, Schuler & Werner, 2012). Human resource management should also strive to adapt an organized problem solving ability among employees as well as raising trust among the employees. This may have an overall advantage on the company

Linking Sexual Satisfaction and Exercise Research Paper - 1

Linking Sexual Satisfaction and Exercise - Research Paper Example   The participants consisted of undergraduate students enrolled in health science courses and were 408 in number. It was conducted on a voluntary basis, and anonymity of the participants was ensured. They were to fill a cross-sectional questionnaire of 130-items. The questionnaire was able to collect information concerning demographic variables, perceived fitness, exercise frequency, the perception of sexual desirability, and sexual performance. Data analysis involve the use of SAS programs and chi-square and mainly based on gender. Females were more than the males while ethnically, the Caucasian was the majority. Ninety percent of males who reported their fitness level being above average rated their sexual desirability and sexual performance as above average or more above average. In the case of females, it was indicated that there was no association between exercise frequency, sexual performance, and sexual desirability. Seventy-one percent of females who rated their fitness lev el being much above average had their sexual desirability above average or more above average. Significant gender differences were noted for sexual performance and sexual desirability by exercise frequency and by fitness. From the data that was gathered and analyzed it was found that higher levels of fitness and longer exercise frequency improved the perception of sexual desirability and sexual performance.   The research also demonstrated that constant physical activity provides benefits to one's psychological well-being.  

T-Moblie Essay Example | Topics and Well Written Essays - 500 words

T-Moblie - Essay Example public, Austria, Hungary, Croatia, Montenegro, Macedonia, Poland, the Netherlands, United Kingdom and the Slovakia– including the US Virgin Islands, US, and the Puerto Rico. On the global level, the International subsidiaries of T-Mobile possess total subscribers which are roughly 150 million in number, which makes it the twelfth-largest service provider of mobile phone in the entire world in terms of subscribers. Besides this, T-Mobile bags the rank of the third-largest multinational and stand after Spains Telefà ³nica and UKs Vodafone. T-Mobile, in the year 2010, became the segment of the agreement of joint venture with the UK mobile-network provider of France Telecom, Orange UK. These companies combined and formed the largest mobile-network operator of UK and called itself Everything Everywhere. However, even after forming the joint venture, the Orange brands and T-Mobile go on to co-exist in the markets of United Kingdom. T-Mobile complies with all the laws which are applicable to the state and federal codes of laws and regulations. The management of the company does not indulge in any activity which violates the policies of the company such as non-retaliation, non-discriminatory and non-harassment policies. The unacceptable conduct in the company constitutes of violation of company laws and policies, removal of the property of company without permission, willful or neglectful damage or defacing of the company property, dishonesty, fraud, improper record keeping and all the related activities. Any criminal conviction amongst the employees results in their termination from the company. Besides this, all the secret trade laws and other legal information are kept confidential from others except the concerned parties. The company makes the decisions in the business by giving proper consideration to the social, ethical and legal regulations. The T-Mobile makes returns to the society through the afterschool community outreach program. The company makes efforts to

A world of Ideas Essay Example | Topics and Well Written Essays - 250 words

A world of Ideas - Essay Example Early on, one was oriented to assume an open-minded orientation to embrace other people from various cultural orientations. The support for pursing greater knowledge and awareness on diverse cultures, races, and ethnic backgrounds have made me acceptable of cultural diversity and enhanced one’s ability to be receptive, flexible, adaptable, and easy to adjust to the changing demands of the times. I firmly believe that despite exhibiting consistencies in one’s conformity to retain cultural traditions and beliefs, I am open to accept living in new cultures anywhere in the world. As such, I do not feel alienated or pressured to live in a new culture as an outsider. I can live with people from different cultures anytime. However, this does not mean that I completely lose my cultural underpinnings. I still retain the traditional values and beliefs that have been ingrained since one’s childhood. But, while living in a new culture, I get to adapt and adjust to those that could be accommodated, without compromising personal values and philosophies in

Learn to think critically Essay Example | Topics and Well Written Essays - 250 words

Learn to think critically - Essay Example How do you do that without carrying out this problem-options process again and again I would like to suggest a way to stop this regress by turning an option into a step towards a goal or objective that needs to come about because of my action. What am I trying to accomplish by doing this versus that Once I have that, all the rest falls into place. For example, in this exercise, how can I answer the question of which critical thinking skill can I or should I develop more I can say one option for this problem is to stay up all night to get this paper turned in on time. Another answer is a goal, a condition or state of what it would be like that I want to have. That desired state might be something like this: I will always be prepared for the requirements of school. From this ideal, action steps (options) come, and may include for me to prioritize everyday challenges at school such that I can turn my work in on time and perhaps get better grades. The option of staying up all night for a one-page paper then is not optimal. It does not help me get to my goal or objective very well. Think of what it would mean for me. I have. Staying up late or working all night will deprive me of my beauty rest, another important goal of mine.

Options for implementing a leadership change Essay Example for Free

Options for implementing a leadership change Essay Gene One is a biotech company that has seen steady growth since entering the biotech industry in 1996. It was founded by the late Don Ruiz and four other directors. During the last eight years, Gene One has grown to become a $400 million dollar company. Gene One wants to continue this growth, and has decided to gain additional growth and funds by issuing an Initial Public Offering (IPO). This is in order to remain competitive in the market, since it needs more capital for new development, advertisement, and marketing if it is to remain successful.   In order for the IPO to be successful, Gene One needs a solid foundation to build upon. Gene One can take an in-depth look at key concepts such as effective teamwork through cooperation, trust, and cohesiveness, sources of conflict in organizations, knowledge management, elements of organizational structure, and assess the influence of organizational structure on power and politics (Scenario, 2006). Gene One is a growing company with many opportunities for further growth in the future. With this change, Gene One needs to revaluate all areas of the company and find solutions to problems within the organization. The company has many opportunities for changes, which will enable them to reach the goals needed. The key project is to find the best solution that will enable Gene One to reach their goals, and become better than its competitors. It will need to review the solutions that they have come up with, and the additional alternative solutions that have not even been reviewed (Holmstrom, 1994). Team analysis After the death of Don Ruiz, there is a big leadership gap left in the management of Gene One. The team is therefore incomplete without him, which is undesirable for effective management. Team building is both challenging and rewarding. Effective teams achieve results far beyond what individuals could accomplish on their own. However, team building is much more than putting a group of people together and hoping for the best. Teambuilding is an art that overcomes differences in style, personality, and other potential areas of conflict, but even when a team functions in total harmony, it may not achieve its goals (Brickley, 1987). As Don’s siblings, we have found ourselves having to take part in leadership at Gene One. Each family member was assigned one member of the remaining four members of the executive. In order to assess the remaining team’s likelihood of success, I gathered information about one team member and did an analysis on it. During my analysis, I found my subject to have the following desirable attributes:   He can take charge, is assertive and can take control of a situation. He is   outgoing, people-oriented and extroverted He is concerned with accuracy, details and exactness He is competitive, has   a great   desire to win and is aggressive He is   easy going and casual, and   takes things as they come He likes identifying and analyzing problems He is concerned with timely results and is quick to take action He is good team player who works well with others he is concerned with standards and high quality work Attributes not well represented Despite all the good attributes, I found my subject with a few negative attributes. They include: he has a negative attitude regarding people and outcomes He is highly emotional and easily loses his temper He gets impatient with the subordinate staff Recommendation With a few changes to the leadership structure of Gene One, I recommend my subject for a further role in management of Gene One. His attributes are impressive and can steer the company to great heights. However, he should help take the company through a transition to usher in a structure that separates ownership from management. Leadership style Gene One needs to develop a leadership style that involves the leader including one or more employees in the decision making process.   However, the leader maintains the final decision making authority. Using this style is not a sign of weakness; rather it is a sign of strength that your employees will respect. This is normally used when you have part of the information, and your employees have other parts. Note that a leader is not expected to know everything-this is why you employ knowledgeable and skillful employees. Using this style is of mutual benefit it allows them to become part of the team and allows you to make better decisions (Tannenbaum Schmidt, 1958). Leadership structure The leadership structure at Gene One should change such that the titles of CEO and chairman of the board are separate entities. This will help separate management from leadership.   This is the best leadership structure for large corporations or others hoping to enter that league. Most large corporations are not managed by their owners or shareholders. Instead, they are managed by a leader-CEO or President- and a team of officers. The CEO or president is usually a professional trained in a particular field with the necessary experience. The CEO is accountable to the stockholders through their elected representative, the board of directors. Gene One should not have a dual CEO where the CEO functions simultaneously as the chair of the board. A non-dual CEO would be the best option for Gene One. Research has shown that CEO duality threatens Board independence, and can erode the essential oversight responsibilities of the Board (Daily and Dalton, 1994). Negative leadership should be avoided at all costs. Negative leaders act domineering and superior with people. They believe the only way to get things done is through penalties, such as loss of job, days off without pay, reprimand employees in front of others, etc. They believe their authority is increased by frightening everyone into higher lever of productivity. Yet what always happens when this approach is used wrongly is that morale falls; which of course leads to lower productivity.

Clinical Practice Analysis Nursing Models Health And Social Care Essay

Clinical Practice Analysis Nursing Models Health And Social Care Essay Concepts should not be considered as either being permanent or static but should be considered open to new knowledge, perception, experiences and also data (Alligood and Tomey 2006). The nursing models were established to help clinical nurses in developing new roles and partnerships and also create better models of nursing care in order to facilitate a better clinical practice (www.health.nsw.gov.au/nursing/projects/models_of_care.asp). Nursing models are usually referred to as operational models for redesigning the nursing practice that will provide better nursing care for the patient on an organizational setting, primarily hospitals and long term care facilities. The models however can take a different form on the organizational level. They however only mean that that there has been some form of redesigning. This redesigning is usually mainly at the patient care delivery level or the nursing level. The only way to differentiate such models at the level of organization is by attaini ng those that do not care delivery. These are mainly levels such as innovative pay and also the programs of clinical advancement. Nursing practice models differ from the traditional models in either of the following structural dimensions. It is either through the degree to which the practice by individual nursing is differentiated based on their individual educational level, the degree to which nursing practice is more of self managed rather than managed by traditional supervisors, the degree to which case management is deployed and also the degree by which teams are employed. Teams in this case mean either nursing or multi-displinary. According to Mayer, Madden, and Lawrenz (1990), the models that they evaluated have varying degrees of employing various structural approaches to reorganize the nursing practice. Past studies and also the present studies show reflections on the applicability of the models and also the nursing models. This allows the validation and construction of new action forms in nursing care. It also helps to identify limits and relations between professions and individuals who are in need of care. In order to give a description, explanation, forecasting or even a prescription of nursing care, there is need to have articulated and communicative conceptualizations of reality which can either be invented or discovered. Case study: HIV/AIDS patients Among many cases that affect the human nature other than the cancer kind of diseases, Human Immunodeficiency Virus / Acquired Immunodeficiency Syndrome (HIV/AIDS) has the greatest negative effect on mankind. The case study within the practice which best utilizes the nursing models is on the Human Immunodeficiency Virus / Acquired Immunodeficiency Syndrome (HIV/AIDS). This case study best shows how the nursing model by Dorothea Orem can best service the patients and bring a form of relief to the patients. There have been models and theories that have been put in practice or give an explanation of the self-care related phenomena guide solutions that respond to the involved people ¿Ã‚ ½s needs and interests and equip nurses to help patients take care of themselves, as AIDS is a chronic illness that depends on the patient ¿Ã‚ ½s personal care to gain a better quality of life and prolong survival. Models including that of Dorothea Orem are used in nursing to ensure that there is adequ ate care given to those with HIV/AIDS. The use of this model or theory is because those who suffer HIV/AIDS have low immunodeficiency. This has a great effect on the normal functioning of the body. It however rests upon the patients to ensure that they maintain good health. People suffering from HIV/AIDS require constant care and support from the society. They also require not to be looked down upon by those who offer the care delivery to them. It therefore shows that the model of nursing by Orem can easily boost the morale of the patients if they a re given a chance to have the self care by themselves. It however also requires that there be moderate to high levels of participation by the health care deliverers in order to ensure that the patients are well equipped on how to go round the self care. Nursing models by Orem Models are considered conceptual reference frameworks, constructed representations on some aspect in the environment, using abstractions as fundamental blocks. The self care model of nursing or better known as the Orem model of nursing was established by Dorothea Orem in 1959. In her theory of administering care the patient is looked upon or is encouraged to be an independent person. This helps in the recovery of the patient as they are directed to use the best ways possible to ensure their well being. Self care is considered as an individual ¿Ã‚ ½s performance towards a better health, life and also well being through practice of given activities. The recovery and development of health is achieved when a patient apprehends the orientations. This helps to retain the structural integrity and also the human functioning. For those suffering Human Immunodeficiency Virus / Acquired Immunodeficiency Syndrome (HIV/AIDS), there are diseases which are related that occur. They may include the acquisition of opportunistic infections as the body has a low immune system, difficulty in taking sufficient food intake, lack or deprived sleep, nausea and/ or altered palate due to collateral medical effects, weight loss, fatigue, an decrease in body mass. Other than the physical changes, the patient may also have an onset of psychological alteration such as low self image and self esteem. There are also changes in lifestyles of the patient due to maybe prejudice, side effects of the medication and even constant and frequent visits to the health centre. Areas of changes The self care model by Orem consists of mainly three theories which revolve mainly around the nursing theory, self-care deficit and also the self care theory itself. On the theory of self care there are three levels that are of concern such as universal care, health deviation and also developmental. This means care which aims at maintaining the integrity of human functioning and structure. According to the self care deficit theory, it shows that the patient has to be dependent and in a situation whereby the patient is incapable or has limitations to providing self care. This is what needs to be changed in the Dorothea Orem ¿Ã‚ ½s model of nursing in order to deliver better care. By doing away with such theories it will prove better and well managed to finally offer better care towards the patients. It therefore becomes relevant to view such a case scenario as a way to improve self care through the use of the Orem nursing model where a patient should be considered as an independent person. There have been researches done that have articulate the use of this model of nursing. Outcome of the use of the nursing model by Orem a. The use of the theory by Orem by patients suffering from HIV/AIDS As such was the case scenario of patients in an educative proposal of how to have eye self exam by those who suffer from Human Immunodeficiency Virus / Acquired Immunodeficiency Syndrome (HIV/AIDS). There were several detailed diagnosis that were identified from most of the patients. Based on the profile that was as a result from the analysis of the patients, it proved that patients require help. The demand on self care on universal and developmental level ensures that patients get moderate if not high levels of help. Basing the facts from the deduced results it showed that there was a level of competency in the patients. This shows that the patients can conduct their own eye self exam. The results also justify that for patients suffering HIV/AIDS, it is possible for them to have adequate nursing care. Through the analytical questions that were posed in order to achieve the analysis of the model showed that nursing care systemization for self-care among HIV/AIDS patients, using the n ursing process; to the patient ¿Ã‚ ½s possible accomplishment of the eye self-exam; to the identification of HIV patients ¿Ã‚ ½ self-care attitudes and deficits through the universal, developmental and health deviation requisites. Besides, the nursing model collaborated as a method to help patients. The resulting results show that the Orem ¿Ã‚ ½s theory can give guidance. This guidance however serves as a guide to how care delivery is done on those with HIV/AIDS. It also elaborates more on the need to have assessment on the HIV/AIDS patient on self eye exam. The analysis of the study also showed that the nursing model by Dorothea Orem can also be used in the nursing curriculum. b. The use of Orem ¿Ã‚ ½s model of nursing involving the HIV/AIDS patients The analyzed study offered important information to guide nursing research, as it demonstrated that the use of Orem ¿Ã‚ ½s Theory permitted testing an eye self-exam teaching model in HIV/AIDS patients, which can be included in the nursing curriculum. There were discoveries that were made in the Orem ¿Ã‚ ½s theory. This included the fact that there was little or small input from the limited number of participants. It therefore proved hard to make a possible. However, there was qualitative results that made it possible to have a view on the competency in HIV/AIDS patient to run an eye self test. The tested propositions were based by the fact that a higher proportion of HIV patients at different stages had irreversible eye alterations due to lack of early diagnosis and treatment. It therefore goes to show that patients require help for universal development and health deviation requisites. c. Orem model of nursing for the purpose of nursing management Based on the research done on people with HIV/AIDS, there is a considerable gap that the nurses should bridge. Mainly this gap is mostly in the learning of nursing based on the educative and supportive system of nursing there has been detailed nursing curriculums that help in implementing the Orem ¿Ã‚ ½s model of nursing. The outstanding results from the use of Orem ¿Ã‚ ½s model in nursing showed that there could be use of the model in the management of the nursing in care services. This was a measured achievement towards self care for patients suffering from HIV/AIDS. It proved to be a success and therefore can be used in the nursing management. The practice of nursing is becoming more targeted as the self care proved to be an instant success. Mainly after the nursing interventions, the care quality in nursing can be measured to form an assessment. d. Better instruments for future and further diagnosis of diseases Based on the findings of how effective the Orem ¿Ã‚ ½s model of nursing is on Human Immunodeficiency Virus / Acquired Immunodeficiency Syndrome (HIV/AIDS) it only goes to show that with future studies of other diseases, this Orem ¿Ã‚ ½s model of nursing can be utilized to the advantage of the patients and also to the advantage of the nursing practice as a whole. In the practice of this Orem ¿Ã‚ ½s model of nursing, it proves comforting to the patient which should be the general idea behind nursing (Alligood and Tomey 2006). It offers comfort to the patient as they have the knowledge that someone else has faith in them to take good care of themselves. It also boosts their morale in knowing that they are yet capable of taking care of themselves to attain better health General conclusion For nurses who undertake the use of Orem ¿Ã‚ ½s model of nursing they can easily find out gaps or self care deficits which they can try to fill in. The act of learning more in order to fill in the deficit can also help in the diagnosis which might be corresponding. By the use of the Orem ¿Ã‚ ½s model of nursing, it becomes easy for those in the nursing practice to identify means and ways through which they might better the practice. Basing on facts that the Orem ¿Ã‚ ½s model of nursing was established in the early 1965, it has been used widely in nursing areas such as on pregnant women, HIV/AIDS patients, adolescents and also hypersensitive patients. There has been progress from theory to practice by the use of the use of the model in nursing by Orem. There is proven and theoretical framework as it has helped nurses to offer support to patients of HIV/AIDS. Besides just intervention for those with HIV/AIDS, the model of nursing by Orem ensures that attitude of the patient and a lso the self care deficits are clearly identified. It therefore proves that the model in nursing by Orem can is actually a valid instrument. It can therefore be used to bridge the gap between the researchers and also the research subject. As a means of ensuring that those in the nursing practice utilize the Orem ¿Ã‚ ½s model in nursing, there can be a venture into other areas other than HIV/AIDS to areas such as diabetes. By the use of the Orem ¿Ã‚ ½s model in nursing it has opened up more opportunities through which support education can offer. There is better service offered since the Orem ¿Ã‚ ½s model in nursing was established and more research in this area is proving fruitful. This is because of the research done based on people with Human Immunodeficiency Virus / Acquired Immunodeficiency Syndrome (HIV/AIDS) has been seen as a step closer to ensuring that the patients do not suffer. It also has ensured that there is better treatment both at a physical and psychological l evel. Though it might prove as a remedy or cure to the disease it has definitely given the patients a better understanding of themselves. It has also created ways in which the patients can be self reliant based on the stages of the Human Immunodeficiency Virus / Acquired Immunodeficiency Syndrome (HIV/AIDS). Recommendations It therefore goes without saying that the Orem ¿Ã‚ ½s model in nursing is a true model that should be utilized more for the sake of the patients. It helps in boosting the self esteem of the patient which giving a detailed analysis to those in the profession of nursing. It provides a better view on how strategies should be laid out in order to achieve better health care delivery. Patients no matter the kind of ailment they suffer from but especially those suffering from Human Immunodeficiency Virus / Acquired Immunodeficiency Syndrome (HIV/AIDS) should be taken as independent patients. They should be taught various ways of self care other than the eye self care. Through such ways it proves profitable for both the patients and also those in the nursing practice. The model in nursing by Orem proves a sufficient way to manage the practice of nursing and on the other hand creates a study for other patients who might benefit from the model.

Selection of Procurement Strategy

Selection of Procurement Strategy 1.0 INTRODUCTION A major determinant of project success is the selection of the most appropriate procurement strategy which will be used as a frame work to acquire the services of professionals in the industry (Morledge at al, 2006). This report presents the stages that have to be gone through in other to select the best procurement strategy for Janus Leisure plc. Before a suitable project strategy can be selected, there are many variables that need to be considered. However, Masterman (2002) explains that with regards to procurement, only those sub strategies which will have an impact on the ultimate procurement strategy should be considered. He therefore describes the process as consisting of: understanding the client, assessing client objectives, identifying the project constraints including risks and the method of organising the design and construction. These points will therefore form the framework of this report. 1.1 CLIENT Clients in the construction industry are becoming complex in their requirements which has subsequently led to increased client dissatisfaction levels (Latham, 1994). It is therefore essential to identify the type of clients being dealt with as this will have an influence in the choice of procurement method. Based on the categorization of clients by Masterman (2002), Janus leisure plc can be described as a private organisation who generates its funds from its internally business activities and therefore are concerned with profit maximisation wherever possible. Furthermore, we can also say that, the client is an inexperienced client in terms of construction as their main business focus is horse racing. It does not involve in construction activities often and only owns 6 racecourses. However, it is assumed that, the client is very aware of what infrastructure of its business should look like. Finally, we can also say that Janus leisure is a secondary client who requires the building to enable it them house their business activities. This therefore means that construction represents only a small percentage of their annual turn over. 1.2 PROJECT SCOPE The company intends to improve its flagship racecourse at Melchester which hosts the 5000 guineas stakes every year. The proposals are to be undertaken in two phases: Phase I demolition of the existing grandstand the construction of a new 5-storey grandstand to include an extensive conference and exhibition centre (10,000m2 total) and associated external works (budget  £25M) refurbishment of two existing stands circa 100 years old (budget  £5M) Phase II construction of a new 120-bed hotel facility and casino (budget  £12M) to be operational for the 2013 5000 Guineas Stakes meeting in mid-September 1.3 CLIENT OBJECTIVES Janus leisure plc has to consider a number of factors in other to choose the best procurement strategy for the project. To provide guidance for client on their decision of the most appropriate procurement strategy to adopt, Turner (1997) proposed a list of seven factors to consider. Completion time variation complexity quality price certainty price competition management and accountability These will be discussed in detail in the next sub section. Client requirements The objectives and requirements of the client in this report have been categorised under cost, quality and time expectations of the client. They also represent the criteria used by the client in the assessment of the procurement strategies. The following criteria as adopted from Turner (1997) has been established and discussed. Cost Relevance of cost certainty Janus leisure plc is a company which aims at maximising profit wherever possible. It will therefore not intend to spend more than it has budgeted for each section of the development. This implies that, high on the priority of the client is to have a fair idea of how much the project will cost prior to the start of the actual construction. Since the company desires to constantly invest in all of its venues over the coming years. It will therefore be preferable that any strategy chosen should be able to give an idea of the total commitment to be expected, since the project is phased, it means that, this will be a tougher consideration for the first phase but will be achieved to higher degree of accuracy I the second phase Relevance of price competition Janus leisure has a total budget of  £42M for the entire project. With this commitment in mind and a fair certainty of the cost, the client does not really place so much focus on the competition for phase 1. Though Turner (1997) explains that best market price can only be obtained through competition, the client is of the view that factors such as time requirement are of more concern to him and any bid which was around his budget was alright for the first phase. With regard to the second phase, since there will be more time., it is the intention of the client to use competition in other to attain the best price as such therefore any opportunities for price competition will be preferred more. Organisation and accountability It is assumed that the client is fully aware of the fact that, risks go with premiums. However, Janus leisure plc prefers a single point responsibility for the construction of the hotel and will be prepared to pay a premium for that. Clamp et al (2007) argues that leaving both design and construction within one entity could have compromising effects on the quality; however, Janus leisure will prefer to have to deal with just one company in other to eliminate the hassle of lengthy negotiations with many professionals. The client requires that it retains the control for the management of the first phase because it is of more importance to him as he needs it to be ready by 2012. Time Early completion This is a very high priority for the client because they intend to return the 2012 5000 guineas stakes to Melchester. This clearly states that phase 1 should be competed and ready for commissioning before that time. It is known that the duration of the fist phase is short as such early start in needs to ensure early completion. Similarly, with the second phase, it must be completed be 2013. Though this seem to be a longer, advantage should be taken to obtain more competitive while maintaining acceptable standards of quality. Therefore, time is of a higher priority in phase 1 than in phase two Phased requirements The proposed developments are in two phases and should be carried out as such, the duration of the first phase is 2 years which should be ready by mid-September 2012 while that of the second phase is three years and should be completed and ready to use by mid September 2013. As a private client, completion time is of a high priority. Quality Variations Janus leisure plc has been describes as an in experienced client, as such there is the possibility for the client to want to change his mind as the project progresses. Furthermore, the extent of the refurbishment in the first phase cannot be fully envisaged. This implies that, there is an increased possibility of significant variations. However, variations will be minimal in the second phase because, Janus has built some hotels in the past and therefore know what exactly they will want to have in this hotel. It is important to consider variations because they entail high costs and have effects on the construction period and also each procurement method deals differently with variations. Level of prestige Horse racing is a sport that is patronised by a large cross-section of the public as well as wealthy and rich; however, the proposals by Janus leisure does not call for a prestigious design though the requirements of the conferencing, banqueting as well as the hotel should be good and incorporate state-of-the-art technology. Project complexity In terms of complexity during procurement, functionality of the project is not an essential requirement however; complexity of the construction itself and the environmental services is usually very significant (Turner, 1997). The requirements of the project are fairly straightforward as the major requirements were air conditioning and public address systems therefore; complexity is not a great problem in the first phase. With the second phase, more facilities like escalators, lifts and air conditioning facilities will be provided but that notwithstanding, we can say that both faces require a good quality. Risk It is important that any risks to the project are to be effectively managed by the party that is best able to handle them. And every procurement system distributes the risks between the client and contractor (Masterman 2002). Some procurement methods allocate more of the risks to the client and others more to the contractor. Since the client want to control of the first phase, they accept to have the risk even though they will prefer to share them wherever possible. Because the client is quite inexperienced in construction, will prefer to leave to as much of the speculative risk as possible with a single contracting entity though they are aware this might mean payment of premiums for the second phase because it will need time to organize its business activities. 2.0 PROCUREMENT SYSTEMS With respect to the client requirement, four procurement methods have been selected to be appraised because of the peculiar characteristics they have which may be of interest and suitability to the project. They are Traditional method Design and build Management contracting Construction management 2.1 TRADITIONAL METHOD This method is referred to by some authors and researchers as the separated system and it is the oldest form of procurement (Masterman, 2002). It is characterised by the separation between the design and the construction phases and therefore offers multiple points of responsibility (Oyegoke et al ,2009). The client first appoints consultants who will be responsible for the design, cost control and contract administration. Once the design in complete, the client and his team invites tenders from suitable contractors and eventually appoints one of them who will be responsible for carrying out the works. There is therefore direct contractual relationship between the client and the consultants and also between the client and the contractor. The contractor is responsible for all the workmanship and materials including work by sub-contractors and suppliers (Clamp et al, 2007). In some cases, the client could novate subcontractors or suppliers with whom the main contractor will have legal c ontracts. The figure below shows the contractual relations of this system. Fig 1: Contractual relationship; The Traditional Procurement Method (Morledge et al 2006) Use of Traditional method of procurement According to Murdoch and Hughes (2008), following the criteria developed by the Joint Contracts Tribunal (JCT 1988), the following are a proposed a list of instances which traditional method is most suitable. The employer has caused the design to be prepared and for the purposes of the building contract takes responsibility for it. The employers designer is sufficiently experienced to co-ordinate and lead the design team and to manage the interface between design and production. The design is substantially complete when the contractor is selected. An independent quantity surveyor will be used to plan and control the financial aspects of the project The contractor is selected on the basis of the contractors estimate and carries the risk that the estimate may be wrong. The employer reserves the right to select sub-contractors for certain parts of the work. ‘Prime cost sums including employer-selected sub-contracts, do not form the major proportion of the contract sum. The employers agents feel that it is important to use an acceptable negotiated form to ensure a fair and familiar distribution of risk. The employer makes no explicit choice and the advisors do not raise the issue. Suitability With regard to the requirement of the client, the traditional method will be very suitable with regard to price certainty which is high on the priority of the client for the first phase. This is because designs will be completely finished and bills of quantities produced which will be priced by tendering contractors. As such, Janus will know its financial commitment to a high degree of accuracy before the start of the project. However, the problem will be whether there is enough time for full designs to be produced followed by tendering before actual construction starts. This is a concern because completion time is equally of high priority to the client and so the traditional method might not be so suitable in that regard. The traditional methods is also one of the best ways to secure best market price as there is competition between tendering firms, however, since competition is not high on the priority of Janus leisure plc for the fist phase, the second phase will take advantage of that. Since variation is to be expected in the project during the first phase, the traditional method will allow, Janus leisure, a flexibility of mind until when the tender documents are prepared for bidding. After this, changes in specification might be very costly and time wasting. It will be suitable for the second phase as well because variation is expected to be even lower. Janus leisure will not be favoured in terms of his accountability requirements for the second phase because Oyegoke et al (2009) explains that this system introduces multiple points of responsibility. 2.2 DESIGN AND BUILD This system is characterised by the integration of the design and construction phases. Masterman (2002) explains that, the commonly used integrated system is the design and build method however there are other variants such as novated design and build, develop and construct, package deal and turn key projects. Within this report, only the design and build variant is considered. The approach leaves full responsibility of the design and construction with a single organisation: the contractor. Rashid et al (2006) explains that, the selection of the most suitable contractor is based on the brief and the specification given by the client at the time of bidding. In effect, the contractor has the total responsibility for all the works, co-ordination and integration of the whole process as well as appointment of any consultants, specialists or subcontractors (Murdoch and Hughes, 2008). Figure 2.2 shows the contractual relation with this system. Fig 2 Contractual relationship: The Design and Build system (Morledge et al 2006) Use of the design and build method According to Murdoch and Hughes (2008), there are some characteristics of a project which determine whether the design and build method will be suitable for a particular project, theses are listed below: The clients familiarity with construction(experience) The relative importance of client priorities (time, cost, function, quality, value for money etc.) The technical complexity of the project The need to make variations to requirements as work proceeds The patterns of responsibility and communication The need for an early start on site. Suitability With regard to the requirements of Janus leisure plc, this method will be suitable in regard to project completion time because of the integration of the construction and design phases will make the project faster, furthermore, since there is a lump sum fixed price for the bespoke design and construction (Masterman, 2002) the client will equally have high degree of price certainty prior to the start of the project. This method will be suitable because for the client in the second phase in terms of his risk allocation requirement as most to the risk will tend to be with the contractor however, it may not be suitable for the first because the client wants to retain more control. Also, design and build will be suitable for the client because the client will only have one contractual relation with the contractor which will march his responsibility criteria. However many researchers including Masterman (2002) and Turner (1997) have argued that since both design and construction are left w ith the contracting firm, there could be possible compromises in the quality expectation in terms of both design and more importantly workmanship and materials, I will also argue that since the client will give a comprehensive brief with little variation for the second phase, this should not be a big problem. It is again worthy to note that the system will not particularly be suited to the variation requirement of Janus leisure plc for the first phase. The criteria established the possibilities of variations as the project progresses, especially in the first phase but the design and build system freezes excessive variation at an early stage when the contract is signed and any changes after that will tend to cost the client lots of money and time. Fortunately, Janus is already aware of this. Again, leaving both the design and construction on the contractor means leaving more risks with him and this will involve payment of premiums as such. 2.3 MANAGEMENT CONTRACTING This is a method of procurement in which the management contractor is paid a fee by the client to manage the whole building process and therefore has direct contractual relations with all the works contractors (Morledge at al, 2006). The management contractor advices on the buildability of the designs as well as value management during the design. The construction works are let out in packages therefore there is early start with this method. The management contractor does not take part in the actual construction but provide preliminaries for the project. The figure below shows the contractual relation with the management contracting form of procurement. Fig 3.Contractual relationship: Management contracting (Morledge et al 2006) Use of Management contracting Murdoch and Hughes propose a list developed by the Joint Contract Tribunal (JCT, 1987a) which indicates suitable circumstances in which to use Management contracting. The list is as follows: The employer wishes the design to be carried out by an independent architect and design team There is a need for early completion The project is fairly large The project requirements are complex The project entails, or might entail, changing the employers requirements during the building period The employer requiring early completion wants the maximum possible competition in respect of the price for the building works. Suitability This system of procurement is desirable in respect of the client priorities of completion time because of the overlap between design and construction, furthermore, as the work will be let out in packages, competition, though not of a high priority to the client, can be used to attain best price. Under this procurement method, the client will also be able to have a fair certainty of the price before the start of the project. The system will also be suitable in terms of the variation requirements of the client for the first phase because the full design is co-ordinated and developed by the client and his team, as such there is much room for flexibility until that package has been let out on contract. With this procurement system, much of the speculative risk is with the client while works contractors take just a little (Clamp et al, 2007) as such this will be acceptable for the first phase but not quite meet the expectation of Janus leisure for the second phase as they prefer to leave much of the speculative risks with the contracting firm. 2.4 CONSTRUCTION MANAGEMENT With this procurement system, the client appoints the construction manager on the basis of a fee to manage, prepare and co-ordinate the design and construction as well as advising the design team on the buildability of the design (Morledge et al, 2006) as such the client does not allocate risk and responsibility to a single firm because the works are subsequently let out to packages contractors who are in direct contractual relation with the client. The contractual relation with this procurement type is shown below. Fig 4 Contractual relationship: Construction management (Morledge et al 2006) Use of Construction management According to Murdoch and Hughes (2000) Construction management is suitable when the characteristics of the project fulfils in part or whole of the following: The employer is familiar with construction, and knows some or all of the professional team. The risks associated with the project are dominated by timeliness and cost (e.g. the employer may be a private sector employer requiring a commercial building). The project is technologically complex involving diverse technologies and sub-systems. The employer wants to make minor variations to requirements, as the project proceeds. There is scope for separating responsibility for design from responsibility for management of the project. The employer requires an early start on site. The price needs to be competitive, but ‘value for money is more important than simply securing the least possible cost. Suitability This procurement method similar characteristics with the management contract variant, however, there are some differences. The completion time requirements, variation requirement and quality requirements is the same as in the management contracting. However, this system leaves virtually on all the risk on the contractor: a trait which will not suit the requirement of Janus leisure plc. Furthermore, the is no certainty of price as the system works with target sum but advantage can be taken of price competition as the packages are let out to package contractors. Another point worthy on mentioning is that, this method will not particularly suit the responsibility requirement of Janus leisure, who prefer to have to deal with just one contractor. 2.5 RISK SHARING This determines the apportionment of the risks that occur to the party that is able to handle it more adequately than the other. Some procurement methods allocate more of the risks to the client and others more to the contractor, Janus leisure plc is willing to accept some of the risk provided they will be able to foresee it before it occurs for the first phase but will prefer to leave much risk on the contracting firm fro the second phase. The different procurement methods have limits to which the client can tranfer risk. A speculative risk chart according to the different procurement methods can be seen below table 1 : Speculative risk (Clamp et al., 2007) 3.0 SELECTION PROCESS The aim of the selection process is to accurately identify the best procurement route which meets and satisfies the client requirements best (Masterman, 2002). The tables below shows the results of the assessment criteria for the two phases of the project Table 2 priority checklist for phase 1 Table 3priority checklist for phase 2 3.2 PROCUREMENT SYSTEMS FOR PHASE 1 Based on the rating on table 2 and the clients success criteria, the management contracting procurement system has been recommended to be used in the execution of phase 1 Reasons for recommendation It has been established already that time is crucial to the first phase of the developments, as such, this procurement system is suitable because it allows construction to start early once a work section has been completely designed, for example, immediately the foundation are fully designed, the client and his team can give that part out on contract as the designed is continued. The client still retains full control of responsibility of the design as the construction goes on, so since Janus indicates the possibility of variations this will be very much accommodated while the management contractor contributes to the buildability of the designs. The client and his team will also have the chance to select materials and techniques in other to achieve the standard it requires which still reduces maintenance costs. 3.3 PROCUREMENT SYSTEMS FOR PHASE 2 Based on the critical analysis of the critical factors of success for the project as well as the adoption of the table 3 above, the competitive design and build system of procurement has been chosen for the construction of phase 2. Reasons for recommendation The client rates time as important as such, since the contractor is in charge of both the design and construction, there will be an early start of the project on site which will guarantee completion to schedule. However, since the responsibility of the design will be that of the contractor, the client will have to provide a good brief to the contractor in other to eliminate any confusion. This will be required to a great extent so that variations will be reduced to the barest minimum. The design and build procurement method is also best for the phase because the entire of design and construction has been shifted to the client and this suit Janus as a client thought the implication is the likelihood for an increased cost. The client is satisfied with this option because he will have enough time for his own business activities Also, since Janus does not require direct professional accountability for the design and consultants for the second phase, this system proves to be very suitable because the design and build system leaves the entire accountability between the contractor and his team and Janus only has a single contract with the main contractor Janus requires a high degree of price certainty before the start of the construction and the design and build system offers this. Moreover since the requirements indicated that the project is not so complex in terms of technical advancement, the system will be adequate and certain to deliver a product of good quality and workmanship. Finally, the adoption of the competitive variant of the design and build procurement system will give the client and his team the chance to select the best bid from the contractors as a result of the tenders that will be submitted based on the client brief. 3.3 ORGANIZATIONS TO BE COMMISSIONED The consultants to be commissioned for the first phase are as follows: Management Contractor: Engaged very early in the project to provide expert knowledge to other consultants on the constructability of the designs. Architect: Prepares all the necessary architectural designs in accordance with the clients brief and with the management contractor Quantity Surveyor: Carry out feasibility studies, prepare cost estimates and cost plans in conjunction with the designs. Also carry out interim valuations for payment to works contractors, in conjunction with the management contractor. Engineers: Prepare the structural, mechanical and electrical engineering drawings to be priced by the quantity surveyor and form part of the contract documents for executing the works. For the second phase, the client needs to contract a design and build contractor who will be in charge of both design and construction of the facility 4.0 CONCLUSION The proposals by Janus leisure plc have been thoroughly examined and discussed, going through the range of procurement methods and applying the table by CRT, it has been recommended that for a successful execution of the clients developmental proposals, management contracting should be adopted for the first phase while design and build is adopted for the construction of the hotel in the second phase. However, it must be stated that, the success of the project does not only depend on the procurement method used but also on the efficiency of the consultants and the contractors used. Therefore the client should be methodical in the approach for selecting the professionals for the execution of the work.