Conflict Analysis Case Study: Nestlé

Conflict Analysis Case Study: Nestlà © Business is a never ending race and in the fast running world of business, there is variety of products and shops, showrooms, setups and etc. The main purpose of this report concerns the research managing conflicts in organization. The organization that is chosen for our research report is Nestlà ©. Data and observation analysis, recommendations for managing conflicts is also discussed. The methods used for collecting data for this report are surveys, questionnaires, personal observations, personal interviews, newspapers, internet etc. In the first section, we had given an introduction about the chosen organization Nestlà © and then a brief description about nature of conflict in the organization and its various types and causes of conflict. The second section is consists of literature review, in which we had discussed the theories and research papers of different researchers where they explain about conflicts and its causes in an organization and moreover how an organization can prevent those conflicts with best possible solution. The third section comprises of research methodology, research nature, data collection techniques and sampling method. In section forth we have scrutinized the primary data by different graphical and statistical tools. In final section we have given possible conclusions along with recommendations. CHAPTER # 1 1.1: INTRODUCTION TO NESTLÉ Nestlà © was founded in 1866 by Henri Nestlà © with headquarters in Vevey, Switzerland. It has employed around 250,000 people and has factories or operations in almost every country in the world. It is one of the worlds biggest food and Beverage Companies. The Companys priority is to bring the best and most relevant products to people, wherever they are, whatever their needs, throughout their lives. 1.2: PURPOSE OF RESEARCH The purpose of the research is to find the variable which has leads towards conflicts in Nestlà © Organization. The main purpose of the research is, firstly, to identify the causes of conflicts in Nestlà © and, secondly, to manage conflicts in Nestlà © organization. 1.3: BACKGROUND OF THE STUDY All of us experience some type of conflicts in our daily lives. Tensions, antagonisms, and frustrations always occur when people work together. There are disagreements, perhaps even fights, between employees and the supervisor or between co-workers. Aside from personality clashes, people simply have different viewpoints about the way things should be done. The main purpose of conducting the research is to find out the conflicts, and finding the ways to manage and solve them in an organisation. In this context we have got the opportunity to conduct our research on one of the top organizations (Nestlà ©). 1.4: DEFINITION OF CONFLICT Conflict is defined as the state of discord caused by perceived or actual opposition of needs, interests and values. A conflict can be internal or external. The concept of conflict can help to explain many social aspects of life such as social disagreement, fights between individuals, groups, or organizations and conflict of interests. Conflict as taught for graduate and professional work in conflict resolution which is defined as when two or more parties, with perceived incompatible goals, seek to undermine each others goal seeking capability. However, conflict can also occur in cooperative situations, in which two or more individuals or parties have consistent goals, because the manner in which individuals or party tries to reach their goal can still undermine the other individuals or party. 1.5: NATURE OF CONFLICT Conflict may constructively be viewed as resulting from differing belief systems, varied perspectives on the situation and values resulting from participants accumulated life experience and conditioning, differing interests and objectives. Effectively dealing with conflict requires the expression and management of participants varying interests, belief systems, perspectives and values. Through the integration of participants perspectives, belief systems, interests and values, conflict and conflict resolution play important roles in individual and social evolution and development. Conflict arises when one or more participants view the current system as not working. At least one party is adequately unhappy with the position, that they are willing to own the conflict and speak with the hope of being able to influence the situation to arrive at an improved condition. Conflict may be sight as a process we put ourselves through to attain a new condition and self definition. Through conflict we have opportunities to be artistically self-defining. If nothing else, conflict allows us in future to do things differently. Through the resolution of conflict, we can evolve and redefine ourselves, our community, our relationships our society and our world. 1.6: LEVELS OF CONFLICT 1.6.1: Inter divisional conflict Inter divisional conflicts exists between the perceiver and another individual within the organization. Although the other person does not need to be aware of the conflict, the perceiver of the conflict situation recognizes the present or future impact conflict can have on job performance. 1.6.2: Intra group conflict Intra group conflicts occur between perceiver and his or her immediate group within the organization. The immediate group can consist of work team, department or union. Whether fully or only superficially aware of the conflict issue, the perceiver realizes that the conflict can directly or indirectly affect job performance. 1.6.3: Inter group conflict It arises between the perceivers immediate group and another group within the organization. Again, the perceivers involvement may not be critical, but he or she must be aware of the situation and the potential impact the conflict can have on work performance. 1.6.4: Organizational conflict Organizational conflict is a state of disagreement caused by the actual or perceived opposition of needs, values and interests between people working together. 1.7: TYPES OF CONFLICT A conceptual conflict can rise into a verbal exchange or result in fighting.Conflict can exist at a variety of types. These are Community conflict Diplomatic conflict Emotional conflict Environmental resources conflict Group conflict Ideological conflict Interpersonal conflict Inter-societal conflict Intrapersonal conflict Organizational conflict Religious-based conflict and Workplace conflict. 1.8: CAUSES OF CONFLICTS 1.8.1: Authority relationship Authority Relationship conflicts occur because of the existence of strong pessimistic emotions, misperceptions or stereotypes, poor communication or miscommunication, or repetitive negative behaviors. Authority relationship problems often increase disputes and lead to an unnecessary rising spiral of destructive conflict. Supporting the secure and balanced expression of perspectives and emotions for acknowledgment (not agreement) is one effective approach to managing relational conflict. 1.8.2: Management style For any organization to be effectual and efficient in achieving its goals, the people in the organization need to have a common vision of what they are determined to achieve, as well as clear objectives for each individual, group/ team and department. Management style also needs ways of recognizing and resolving conflict between people, so that conflict does not become so serious that collaboration becomes impossible. The management of any organization needs to have ways of keeping conflict to a minimum and of solving problems caused by conflict, before conflict becomes a major obstruction to work. Management style helps to avoid conflict where probable and organizing to resolve conflict where it does happen, as rapidly and smoothly as possible. 1.8.3: Communication barriers: Conflict will be greater when barriers to communication exist. If parties are separated from each other physically or by time e.g.; the day shift versus the night shift-the opportunity for conflict is increased. To illustrate suppose a company employs only one plant supervisor, who works the day shift and leaves orders at the beginning of each week for the workers on the night shift. By the end of the week, how ever, these orders have been only partially carried out. The supervisor cannot figure out why. Obviously, the supervisor absence from the night shift has posed a communication barrier, which in turn causes decreased output. As Bryans, P, Cronin argued in 1984 that Space or time separations could promote isolated group interests rather than advance a common effort towards joint goals. 1.8.4: Personal factor 1.8.4.1: Behavioral The way emotional experience gets expressed which can be verbal or non-verbal and intentional or un-intentional. 1.8.4.2: Physiological Its defined as the bodily experience of emotion. The way emotions make us feel in comparison to our identity. 1.8.4.3: Cultural values Culture tells people who are a part of it, Which emotions ought to be expressed in particular situations and what emotions are to be felt. 1.8.4.4: Physical This escalation results from anger or frustration. 1.8.4.5: Verbal This escalation results from negative perceptions of the annoyers character. 1.9: WAYS OF ADRESSING CONFLICTS There are basically five ways of addressing conflicts which were identified by Thomas and Kilman in 1976. These are 1.9.1: Accommodation Ones party surrenders its own needs and wishes to accommodate the other party. 1.9.2: Avoidance Avoid conflict by ignoring it, changing the subject, etc. As an expedient means of dealing with very minor, non-recurring conflicts or Avoidance can be useful as a temporary measure to buy time. In many cases, conflict avoidance involves severing a relationship. 1.9.3: Collaboration Working together can find a mutually beneficial solution. Collaboration can also be inappropriate and time-intensive. When there is not enough respect, trust or communication among participants for collaboration to occur. 1.9.4: Compromise Finding a centre point where each party is partially satisfied. 1.9.5: Competition Take the ones point of view at the potential expense of another. It can be more useful when achieving the ones objectives outweighs ones concern for the relationship CHAPTER # 2 2.1: LITERATURE REVIEW Different researchers have published their reviews on conflicts in the organization. We are viewing two best reviews of the researchers articles. Mr. Philips in 1982 threw light on some of key conditions, which may lead to serious organizational conflicts; he gave his views in the book named as Community in Organization. According to M Phillips certain social relationships characterized various kinds of conflict behavior. Each one could occur in your work area. The more aware the managers are of these conflict settings, the better are the chances of correcting them and running a smooth operation. Mr. Philip identified communication as problem in his research. The causes of conflicts are structural factors, authority relationships, common resources, goal differences interdependence, jurisdictional ambiguities, specialization, status-inconsistencies, personal factors, communication, conflict management style, cultural differences, emotions, perception, personalities, skills and abilities, values and ethics. The researcher found a possible solution; it is obvious that a perfect communication system is unlikely. But also perfectio n like rationality will not be achieved; organizations do have mechanism by which they can attempt the communication system as clear as they can. Philips also suggested that there are such devices available which can reduce the distortion and complications in communication process and suggested that communication recipients should be aware of the biases of the message senders and protect their own counter biases as protection devices. James M Leif John M Penrose in 1997 in the book Business Strategies Skills 5th Edition explained the nature of organizational conflicts identify the causes of conflicts i.e. Structural Factors, Common Resources , Goal Differences , Interdependence ,    Jurisdictional Ambiguities, Inconsistencies ,Personal Factors Communication barriers, Conflict management style ,Cultural differences ,Emotions Perception, Personalities, Skills and abilities, Values and Ethics, Behavioral and Physiological Cognitive. The researchers say that it is possible to avoid conflict by having mechanism such as voting to make decision without the disagreement of consensus. They also find that behavioral regulation fail to match the individual need of employee, conflict is bound to occur. In 1995 B R Siwal in his research Resolution Strategies to Conflict describes that conflict is a necessary and integral part of effective problem solving and realistic discussions. It is core sound of decision making because disagreement is the best vehicle for enlargement the perspective, discovering alternatives, and motivating creative interaction among each member. The effects of disagreement, though, depend on how it is administer by team members. Conflict can be integrative and constructive or it can be distributive and disruptive. When mismanagement occur, conflict can demolish team effectiveness, when handled well it can deeply enhance the quality of team work and make members sense proud of their work in the team. Training in the nature of conflict and the ways of managing it is an imperative need of all the people who participates in problem solving groups, such as those that make up work teams. The negative association of conflicts wants to be dispelled and substitute with more practical conceptions that made the justifiable distinction between disruptive and constructive conflict. When team members see that conflict can be a positive strength in conversation, they are better prepared to take up effective proposal attitudes and behaviors in trouble solving situations. Further more the differences between integrative and distributive conflict can help them learn how their own behavior contributes to the atmosphere of the team which they belong. Davor Dujak in 2008 describes in his research that in every organization conflict encounters on a daily basis. The conflict cannot be avoided but it is probable to mange them in a way that we identify them on time. It is essential to constantly track the organizational signals which position to their existence. If Organization does not respond accordingly, this can lead to the condition that conflict itself manages the organization. One of the more important determinants of productivity, performance and efficiency and finally the job satisfaction is also the conflict as an independent variable of organizational behavior. By systematic research of organizational behavior we want to make a positive influence on the dependents variables, but first we have to realize and get a good approaching to the individual elements of organizational behavior. In 2004 Melanie Lewis describes in her research that if conflict managed poorly or avoided, it can be very costly to an organization. If managed well, conflict presents an opportunity to uncover significance and promote a healthy work place. Many organizations are finding that their conflicts management systems have been good by financial investments, generating a healthy return. In additional they are recognizing the value of many less substantial benefits (lower turnover, increased efficiencies, improved morale and improve public relations). A precise four phased process assessment, design, implementation, operation and evaluation helps organizations design effective conflict management systems to gather the maximum benefit of conflict system. Moreover this four phased approach strongly encourages the team actually to seek to understand and incorporate the needs and interests of all affected constituency, and creates an environment in which the benefits of the system can be effecti vely communicated, implemented and administered. In 2010 De Dreu C.K describes in his research that conflict is a multidimensional with both relationship and task forms. Hence it is expected that if they change the managing type of conflicts, it will plays an important role in organizational performance. While if organization did not manage good, the conflict will plays a negative role. However the researcher discussed only two types of conflicts in his research namely affective and task conflict in order to play better role in organizational performance. After studying the reviews of different researchers our group decided that we will follow the research methodology of M Philip because they dictate information about factors which are important for identifying conflicts and understanding the meaning of conflict and how it influences the organizations internal environment in solving problems. CHAPTER # 3 RESEARCH METHODOLOGY 3.1: Research type: The type of research that we are conducting is applied research because it is conducted for a particular organization. Applied research is practical applicability of research tools on a particular organizational situation. 3.2: Data collection We will be collecting our data by using two sources which are as follows. 3.2.1: Primary data Our primary data is collected through conducting interviews and designed questionnaires from managers and employees of Nestlà ©. 3.2.2: Secondary data The secondary data is collected from past records of Nestlà © and books along with business articles to support our recommendations and suggestions. 3.3: Sample size During this survey we have taken responses from a Sample size of 30 which is further divided into two groups. We also conducted survey from 10 managers and 20 employees. The sampling type that we used is non random sampling technique because we want to get information from every third employee and manager of Nestlà © organization. Our survey is in questionnaire and interview form, so our questionnaires consist of open ended and close ended questions. We have conducted unstructured interviews, asked from the respondents to get more information. CHAPTER # 4 ANALYSIS 4.0: INTRODUCTION TO DATA ANALYSIS Data analysis is a practice in which the raw data is ordered and organized in order to extract useful information from it. The process of organizing and thinking about data is the key to understand what the data does and does not contain. There are varieties of ways in which people can approach data analysis, and it is infamously easy to manipulate data during the analysis phase to push certain conclusions. There are different methods for analyzing the data for example surveys, charts, frequency tables, graphs and personal observations etc. We have analyzed our data through frequency tables and bar charts. 4.1: FREQUENCY TABLE Frequency table is one of the important concepts in mathematical statistics and a good analyzing tool. A table divided into cells by category with counts for each category in each cell. It is a kind of display of a given data, in which the frequency of each data item is found. The frequency of a data item is the number of times it occurs in the data set. 4.2: BAR GRAPH A graph consisting of parallel, usually vertical bars or rectangles with lengths proportional to the frequency with which specified quantities occur in a set of data. A bar graph is a pictographic version of statistical data in which the independent variable can attain only certain discrete values. The dependent variable may be discrete or continuous. The most common form of bar graph is the vertical bar graph, also called a column graph. This type of display allows us to: Compare groups of data, and To make generalizations about the data quickly. 4.3: ANALYSIS OF QUESTIONNAIRES 4.3.1: FROM MANAGEMENT 1) More than the desired output of the employees make can be harmful to the organization? a) YES b) NO Variables Codes Frequency Yes 01 9 No 02 1 Table: 4.3.1. Graph: 4.3.1.0 2) There is a free flow of communication among the employees: a) YES b) NO Variables Codes Frequency Yes 01 10 No 02 0 Table: 4.3.1.1 Graph: 4.3.1.1 3) Employees are properly informed about decision taken? a) YES b) NO Variables Codes Frequency Yes 01 7 No 02 3 Table: 4.3.1.2 Graph: 4.3.1.2 4) There is a consistency among the management policies: a) YES b) NO Variables Codes Frequency Yes 01 8 No 02 2 Table: 4.3.1.3 Graph: 4.3.1.3 5) Key post should be through:     Ã‚  Ã‚  a)  Ã‚  Ã‚  Direct Appointment  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  b) Promotion Variables Codes Frequency Direct appointment 01 8 Promotion 02 2 Table: 4.3.1.4 Graph: 4.3.1.4 4.3.2: FROM EMPLOYEES 1) From how long have you been working in this organization?   6 months 1 year 3 years Or more than 3 years Variables Codes Frequency 6 months 01 4 1 year 02 2 3 years 03 10 Or more than 3 years 04 4 Table: 4.3.2.0 Graph: 4.3.2.0 2) What kind of boss do you like to work with?   Friendly Competent Leant Difficult Variables Codes Frequency Friendly 01 17 Competent 02 3 Leant 03 0 Difficult 04 0 Table: 4.3.2.1 Graph: 4.3.2.1 3) Which type of leaderships style do you like the most? Autocratic Democratic Variables Codes Frequency Autocratic 01 18 Democratic 02 2 Table: 4.3.2.2 Graph: 4.3.2.2 4) How does your management is doing the evaluation among the employees? Performance base Merit base Variables Codes Frequency Performance base 01 18 Merit base 02 2 Table: 4.3.2.3 Graph: 4.3.2.3 5) Which management level should be responsible for problems between employees? Choose any of the following Top level Middle level Lower level Variables Codes Frequency Top level 01 2 Middle level 02 17 Lower level 03 1 Table: 4.3.2.4 Graph: 4.3.2.4 Q6: How do you communicate the unforeseen problem with your manager or general manager?   Answer: Most of the respondents suggested that they like to meet the general managers directly for any unforeseen events. Q7: Do you think your organization should involve the employees in decision making? And why?   Answer: Most of employees consider that their managers are capable of taking right decisions and there is no need of involving employees. While few of them suggested that it can be a source of new and creative ideas. Q8: What can you suggest for a better management system?   Answer: Most of the employees have no idea about it. Few of them believe that friendly environment and better salaries can improve management system. 4.6: INTER ORGANISATIONAL CONFLICTS OF  NESTLÉ The nature conflicts in Nestlà © found out through the unstructured interviews and through questionnaire with the directors the managers of Nestlà © Peshawar are as follows: The first thing which found, was the lack of training given to the employees, managers said that in the organization, employees always have to work together in groups, and if some one feels that he/she cannot work within the group, then there is some problem with that employee, but at the same time managers said that it is the organizations responsibility to teach the employees how to work together in groups through proper training. They mentioned that without training the organizations might face serious types of irresolvable conflicts, which are definitely not fruitful to the organization. The second main reason mentioned by the manager of the company was the Selection Biases, manager said that selection biases may also lead to conflicts within the company, and these conflicts are normally personal as well. The manager said that if in cases the top management (directors) interferes in the process of hiring the employees, they might select the wrong person for the right job. On the other hand there may be serious conflicts going on between the managers the directors on the issues of authority and responsibility balance. Further if the manager takes big decisions like job confirmation salary decisions then, there may be conflicts, and these must be taken by the top management (directors). The manager of Nestlà © also raised the point of communications problem. They believe that every information must be communicated from their tables. If in any case any employee bypasses the manger, there may be a conflict between them. Manager also said that there is no need of any employee who bypasses the manager to access to the top management (directors). Usually the organizations do have Coordinators who are directly answerable to the top management. He said that the manager will not be able to properly deal with him and conflicts between them will arise. The manager said that young unmarried employees usually indulge in office politics and make conflicts among the employees. According to him only married and experienced persons should be provided with the jobs. Racial problems also create conflicts among the employees. Bad attitude of the manager and arrogant nature of the boss is also one reason of conflicts. The manager said that effective person but highly cooperative person would be proffered in place of an efficient but uncooperative one. The managers presented the following ideas to prevent conflicts: Contractual Jobs Hire fire system. Authority to the managers Some of them had a bit different views. Director held the middle managements capabilities responsible for the conflicts within the organization. He also said that there is no relationship between the authority and reasonability with the conflicts. He proffered the autocratic style of management in the beginning, but it should be shifted to the democratic style in the later portions. Director said that although the centralized system slows down the process of working, but it will also decrease the conflicts between the employees. They said that, if you (Employee) have to be successful in the company, then you have to become a big YES SIR. One of the director also mentioned that horizontal conflicts are more common. Super seeded persons normally indulge in making conflicts. He said that super seeded persons should be terminated in place of super seeding them. Dress code can experience the anger from the employees due to Ethnic affiliations to some dresses. Directors were strongly in favor of Coordinator, they said that a coordinator channels the communication process between the manager and the top management. He also gave the following ideas to prevent the possible conflicts in the organizations: Promotions Clear line of Authority Not more than one employee from same Regional locations and same institutions/Universities. CHAPTER # 5 5.1: CONCLUSION The Organizational Conflicts is itself not a problem, but it is a serious symptom of some factors that are usually ignored while designing the organizational structures. From the literature review, taking samples (convenience) analysis of the data gathered, some factors are identified that usually are the root cause of the conflicts. Some of these are: Ethnicity Personal Jealousy Arrogant behaviors (low temperament) Communication problems Due to the nature of the issue the responses from the top (Directors), middle (Managers) lower management (Employees) were totally contrary with each other. For this purpose structured questionnaires (covering both open ended and close ended questions) and unstructured interviews were conducted. That made the deductions possible by comparing the verbal and non verbal responses, rephrasing the same questions two-three times to check the consistency of the replies. The ethnic issue is the most important. Due to ethnicity no sampled branch has been successful in implementing the dress code yet. Even though, all the respondents favoured it. It is observed that employees belonging to KHYBER PUKHTUNKHWA are very low tempered. Their frequency of jobs switching is higher than others. It proves that they cannot work in teams and work with an arrogant manager. To conclude, who should be held responsible for conflicts, the manager is the key person who channels the communication whether upward or down ward. 5.2: RECOMMENDATIONS The current thinking should be for the maximum utilization of the companys resources and to push the power and decision making authority down the hierarchy of the organization. This can create more power and flexibility within the company as a whole. Good leaders should not have any problem in delegating power and responsibility. Disagreement with the supervisor should be encouraged as long as it leads to productive results. It is critical for the manager to get diverse work force to work well together and respect their differences. Diversity should be encouraged because it can help the organization in future to adapt to the changing global market. All problems can be prevented from happening and/or rectified, if the middle management (Manager) of the company justifies its position. Middle management plays an anchor role. Manager should be able to deal with all the employees who have different cultural backgrounds, personalities priorities. Hiring experienced and matured managers and providing them training could help the case. On job training of the employees. Open house discussions should be there at least one a month. While assigning the groups to the employees for tasks, it must be assured that all the groups are properly matched. REFERENCES http://www.google.com.pk/ B R Siwal http://www.scribd.com/doc/19166679/Conflict-Resolution Jeremy.Cooper.SF.FIN.http://docs.google.com/viewer?a=vq=cache:TvBuLFIn6cIJ:www.asic.gov.au/asic/pdflib.nsf/LookupByFileName/managing_conflicts_of_interest.pdf/%24file Participation Observation Research Method: Analysis Participation Observation Research Method: Analysis Participation Observation Research Participant observation is a method of collecting qualitative data in social research. This method involves the immersion of the researcher in the subject matter so that it can be observed in its natural setting. It involves variable levels of involvement of the researcher on a continuum ranging from passive (observation) to active (participation). The distinction between participation and observation is based on the closeness of the researcher tothe subject matter with observation involving external evaluation and recording of events without the interference of the researcher whilst participation represents an internal view in which the researcher records views from within the group by acting, overtly or covertly, as a member in order to experience the actuality of the events. For example, in Humphreys study of homosexuals, he played an active role by acting as lookout for the police whilst the homosexual encounter occurred in public toilets (Humphreys, 1970). Although Humphreys was observing events and gathering data, he was inside the situation that occurred thus his presence had some impact on events; things would not have occurred exactly as they did had he not been present. Examples of a passive role include researchers who observe things as they happen but with no influence at all on the events that unfold, other than by their mere presence. For example, Patton describes researchers who were recording the reactions ofthe audience to Billy Grahams evangelical preaching (Patton, 2002). Their role was to record events without taking any part in the proceedings, althoughtwo researchers were so influenced by his preaching that they put aside theirnotes and joined the congregation. One of the advantages ofparticipant observation is its ability to facilitate the collection of rich information that is frequently not available from other sources (Babbie, 1995). As such, it can be used to supplement, inform or contradict theorised research and it can greatly enhance the available knowledge on a subject as a result. It can be used either as a preliminary step in a research study by which the researcher observes events as they occur in order to formulate a hypothesis for further investigation or it can be used at a more advanced stage of the research in order to test a hypothesis formed on the basis of theoretical research (Patton, 2002). It is believed to elicit real and genuine information that has not been filtered or amended by the research participants as can occur in relation to interview or questionnaire data and, as such, provides unique insights into the subjective viewpoint of the participants in the study. With observation, participants may not realise that they are being watched so they do not moderate their behaviour in any way thus the data gathered in unadulterated. It also provides richer information than interviews or questionnaires because it can take into account non-verbal interaction and behaviour (Berg, 2003). As such, it can be a valuable methodof researching the influence of structures or events on individuals andgroups. There is also the possibility that unexpected and unanticipated events will occur during the course of the observation hence its value in accessing unique data (Berg, 2003). Equally, even with more active participation from the researcher, the subjects of the research may not realise that they are being observed as it is not uncommon for the researcher to obscure their identity by posing as a member of the group or as someone who would naturally come into contact with them. For example, in studies of the way in which mentally ill patients are treated by psychiatrists and others in the medical profession, researchers were admitted into mental health facilities by posing as patients so that they could experience the reality of life within such an environment, something that would not have been possible had they announced their presence and their purpose (Winstein, 1982). As this example demonstrates, participant observation can be a way to access information from those who might be reluctant to give interviews or who would present apolicy-driven view of the subject (Bogdan, 1972). Sometimes, the only way to get around such obstacles is to gain surreptitiou s access to the environment in order to experience directly what is happening (Spradley, 1997). There are limitations to this research method. It can be time-consuming, both in terms of the actual observations and in preparing and analysing the large amount of resultant data. This may make it a less cost-effective means of conducting research (Jorgenson, 1993). A second limitation is that it tends to involve the observation of only a few examples of a particular subject, behaviour or event thus there is a limit to the extent to which the findings are amenable to generalisation (Spradley, 1997). A further criticism that can be levelled against participant observation is that it is inherently subjective as it notonly focuses on a single (or limited number) of particular observations butthat the recording of the resultant data is subject to the interpretation of the researcher (Jorgenson, 1993). Accordingly, there is a possibility of conscious or unconscious bias which is inconsistent with its appearance, particularly in relation to observation rather than participation, of an obj ective and scientific research method. This criticism is furthered in relation to participation because the researcher plays some kind of role inevents that unfold thus is not a mere passive recipient of information but issomeone who contributes to the shape and content of the resultant data (Spradley, 1993). The final criticism of participant observation that needs to be addressed is particularly pertinent to participation by the research andthat is issues of deception of the research subjects and the ethical issuesthat therefore arise. This was demonstrated in Humphreys research with homosexuals as he posed as a member of their community thus accessing data thatwould not have been available without this deception. The practice ofdeception on research subjects is one that needs to be considered carefully when weighing the balance of the strengths and limitations of this research method (Spradley, 1993). Word Count: 1000 Words Bibliography Ackroyd, D. and Hughes, J(1992) Data Collection in Context, 2nd ed., Harlow: Longman Babbie, E (1995) ThePractice of Social Research, Belmont: Wardsworth Berg, BL (2003) QualitativeResearch Methods for the Social Sciences, 5th ed., Harlow: Allyn Bacon Black, T (2002) Understanding Social Research, London: Sage Bogden, R (1972) ParticipantObservation in Institutional Settings, Syracuse: Syracuse University Press Bryman, A (1988) Quantityand Quality in Social Research, Oxford: Routledge Giddens, A (2002) Sociology,4th ed., Cambridge: Polity Press Haralombos, M, Heald, R andHolburn, M (2000) Sociology: Themes and Perspectives, 5thed., London: Harper Collins Humphreys, L (1970) Tea-roomTrade, London: Duckworth Jorgenson, D (1993) ParticipantObservation: a Methodology for Human Studies, Thousand Oaks: SagePublications Patton, MQ (2002) QualitativeResearch and Evaluation Methods, 3rd ed., London: Sage Punch, KF (2001) Introductionto Social Research, London: Sage Sarantokos, S (1998) Social Research, 2nd ed., London: Sage Spradley, JP (1997) ParticipantObservation, New York: Holt Rinehart Winston Winstein, RM (1982) The MentalHospital from the Patients Point of View in WR Gove (Ed) Deviance andMental Illness, Thousand Oaks: Sage Publications

The structure of memory Essay -- Technology, Multi-store Model

Introduction Prior research into the structure of memory have suggested that memory is comprised up from three separate stores each performing a specific and relatively inflexible function (in Passer, Smith, Holt, Bremner, Sutherland, & Vliek, 2009). That is the multi-store model, developed by Atkinson & Shiffrin (1968 in Passer et al., 2009) who claim a sensory memory store, short-term memory store (STM) and a long-term memory store (LTM) (in Passer et al., 2009). Although to some, the multi store model provided an adequate explanation of memory processes, it was regarded as being too simplistic since short-term and long- term memories were far more complicated than originally thought (in Craik & Lockhart, 1972). In essence, the multi-store model stresses the importance of rehearsal to long term memory. While rehearsal is crucial as a means of transferring information from the STM to the LTM, this is not necessarily always the case (in Atkinson & Shiffrin, 1968 in Passer et al., 2009). To this , sceptics challenged the idea of information being transferred from the STM to the LTM by active rehearsal since subsequent research has indicated that information had the potential to be stored in the LTM without it being actively rehearsed (in Atkinson & Shiffrin, 1968). In response to the difficulties and weaknesses presented in the multi-store model, an alternative model attempting to explain memory processes in a more precise manner was developed by Craik & Lockhart (1972 in Craik & Lockhart, 1972). Their theory of levels of processing proposes that different methods of encoding information into the memory will subsequently have an effect on recollection of information (in Craik & Lockhart, 1972). According to the levels of process... ...rformance. For example, Craik & Lockhart (1972) found that individuals who processed information at a semantic level produced better recalls followed by acoustic processing and then visual processing being the least effective in terms of remembering. The results fundamentally imply that engaging in semantic processing tends to yield higher levels of memory performance compared to acoustic and visual processing thus reflecting the findings of Craik & Lockhart’s (1972) and that memory was enhanced more by depth of processing rather than how long information was rehearsed for as previously pointed out by the multi-store model. It also showed a greater amount of recall for deeply processed words than for shallowly processed words. In addition, the study also revealed that the effect appeared to be stronger for the ‘True’ responses that for the ‘False’ responses.

Case Study Barings

Summary: One of the most infamous tales of financial demise is that of Barings Bank. Trader Nick Leeson was supposed to be exploiting low-risk arbitrage opportunities that would leverage price low rage differences in similar equity derivatives on the Singapore Money Exchange (Simex) and the Osaka exchange. In fact, he was taking much riskier positions by buying and selling different amounts of the contracts on the two exchanges or buying and selling contracts of different types.Thanks to the lax attitude of senior management, Leeson was given control over both the trading and back office functions. As Leeson's losses mounted, he increased his bets. However, after an earthquake in Japan after caused the Nikkei Index to drop sharply, the losses increased rapidly, with Leeson's positions going more than $1 billion into the red. This was too much for the bank to sustain; in March of 1995, it was purchased by the Dutch b bank ING for just one pound sterling.Overview: Barings Bank had a lo ng history of success and was much respected as the UK's oldest d merchant bank. But in February of 1995, this highly regarded bank, with $900 million in capital, was bankrupted by $1 billion of unauthorised trading losses. In 1993, Nick Leeson was appointed general manager of the bank's Barings Futures subsidiary appointed in Singapore. In this capacity, he was able to conceal his unauthorised trading activities for over a year because he managed both the trading and back office functions.The senior managers at a Barings came primarily from a merchant banking background and knew very little about trading. Even in the face of large profits, which should have tipped management off to the fact that substantial risks were being taken, they continued to believe that Leeson held matched Leeson positions on the Singapore International Monetary Exchange (Simex) and the Osaka exchange, and hence was making a low-risk profit. low In fact, Leeson was trading derivatives contracts on the two e xchanges that were, in some cases, of different types and, in some cases, in mismatched amounts.For example, Leeson rent executed a trading strategy known as a â€Å"straddle,† with the objective of making a profit by selling put and call options on the same underlying financial instrument, in this case, the Nikkei th 225 Index. A straddle will generally produce positive earnings when markets are stable but can result in large losses if markets are volatile. Leeson created an error account numbered 88888 as a holding area for any premiums or losses that he made. Leeson claims that he initially opened the account to conceal a single loss of e. 0,000 pounds sterling that had resulted from an accounting error until he could make up the difference through trading. However, he continued booking various losses into the account and also continued to increase his volume of trading and level of risk taking. Leeson took unauthorized speculative positions primarily in futures linked to the Nikkei 225 and Japanese government bonds (JGB) as well as options on the Nikkei. He hid his trading in an unused BSS error account, number 88888. Exactly why Leeson was speculating is unclear.He claims that he originally used the 88888 account to hide some embarrassing losses resulting from mistakes made by his traders. However, Leeson started actively trading in the 88888 account almost as soon as he arrived in Singapore. The sheer volume of his trading suggests a simple desire to speculate. He lost money from the beginning. Increasing his bets only made him lose more money. By the end of 1992, the 88888 account was under water by about GBP 2 million. A year later, this had mushroomed to GBP 23 million.By the end of 1994, Leeson's 88888 account had lost a total of GBP 208 million. Barings management remained blithely unaware. On February 23, 1995, Nick Leeson hopped on a plane to Kuala Lumpur leaving behind a GBP 827 million hole in the Barings balance sheet. As a trader, Leeso n had extremely bad luck. By mid February 1995, he had accumulated an enormous position—half the open interest in the Nikkei future and 85% of the open interest in the JGB future. The market was aware of this and probably traded against him.Prior to 1995, however, he just made consistently bad bets. The fact that he was so unlucky shouldn't be too much of a surprise. If he hadn't been so misfortunate, we probably wouldn't have ever heard of him. Traders sometimes speculate without authorization. Presumably, a few are able to cover their tracks. Others are caught. When they are caught, they are fired, and their employer eats the loss. Usually, neither the trader nor his employer has any interest in publicizing the incident. Leeson made headlines precisely because he was so unlucky.By the time he was discovered, he had bankrupted his employer. Publicity was unavoidable. What is amazing about Leeson's activities is the fact that he was able to accumulate such staggering losses w ithout Barings' management noticing. As Leeson lost money, he had to pay those losses to SIMEX in the form of margin. Leeson needed cash. By falsifying accounts and making various misrepresentations, he was able to secure funding from various companies within the Barings organization and from client accounts.His misrepresentations were flimsy at best. For example, he claimed that he needed funds to make margin payments on behalf of BSS clients, and he gave a technical argument related to how the SIMEX collected margin as justification. This claim was false. It was actually against SIMEX rules for a broker to post its own money as margin for a client. Even if the claim were true, the funds would have been needed only temporarily—until the client could make payment. Instead, Leeson continued to ask for ever more funding.Leeson increased the size of his open positions even as his losses increased due to volatility in the markets. When an earthquake in Japan caused a steep drop i n the Nikkei 225 equity index , however, Leeson's unauthorised trading positions suffered huge losses and his operation unravelled. On March 3, 1995, the Dutch bank ING purchased Barings for 1 pound sterling, providing the final chapter in the story of the 223-year-old bank that had once helped the United States to finance the Louisiana purchase.The beginning of the end occurred on January 16, 1995, when Leeson placed a short straddle (an options trading strategy) in the Singapore and Tokyo stock exchanges, essentially betting that the Japanese stock market would not move significantly overnight. However, the Kobe earthquake hit early in the morning on January 17, sending Asian markets, and Leeson's investments, into a tailspin. Leeson attempted to recoup his losses by making a series of increasingly risky new investments, this time betting that the Nikkei Stock Average would make a rapid recovery.But the recovery failed to materialize, and he succeeded only in digging a deeper hole . Realizing the gravity of the situation, Leeson left a note reading â€Å"I'm Sorry† and fled. Losses eventually reached ?827 million ($1. 4 billion at then-prevailing exchange rates), then prevailing twice the bank's available trading capital. This led to the bank's collapse. After fleeing to Malaysia, Brunei and finally Germany, Leeson was arrested and extradited back to Singapore on March 2, 1995. While he had authorization for the January 16 short straddle, he was charged with raud for deceiving his superiors about the riskiness of his activities and the scale of his losses, although some observers (and Leeson himself) have place much of the placed blame on the bank's own deficient internal auditing and risk management practices. Sentenced to six and a half years in jail in Singapore, he was released from prison in 1999, having been diagnosed with colon cancer, which he has survived despite grim forecasts at the time. While in despite prison, in 1996, Leeson published an autobiography, Rogue Trader, detailing his acts.There may be a temptation to view this debacle as being caused by just one individual – the â€Å"rogue trader† – but in reality the fiasco should be attributed to the underlying structure of the firm, and particularly to the lack of internal checks and balances. Events: 1993: Nick Leeson becomes general manager of Barings Futures (Singapore), running the bank's Simex (Singapore International Monetary Exchange) activities. January 1994: By this date (at the latest), Leeson started selling put and call options on the Nikkei 225 equity index, placing the premiums earned into an error account number 88888.This strategy, known as a straddle, is essentially a bet on the stability of market prices. 24 February 1994: A memorandum from the Barings' asset and liability committee values the 4 options portfolio at 2. 8 billion yen. July 1994 – August 1994: James Baker, an internal auditor, spends two weeks in Singapor e investigating the immense profits being made there. Baker identifies the weakness of internal controls and recommends that the general manager should no longer be responsible for the back office.In response, a separate financial manager in Hong Kong is given part part-time responsibility for watching over the back office. ng August 1994: In an attempt to better evaluate its overall risk, Barings sets up an integrated Group Treasury and Risk function, reporting to a new asset and liability committee (Alco). December 1994: A later Barings investigation reveals that, for unknown reasons, Leeson has run up an accrued loss amounting to Y7. 7 billion on the account by the end of 1994. 23 January 1995: The Nikkei 225 drops by 1000 points after an earthquake hits Japan's industrial heartland. 6 January 1995: The London futures team gives Barings' Alco Committee a presentation on the Baring Futures (Singapore) operation, which states that Leeson is operating a perfectly perfectl matched bo ok – long in Osaka, but short to the same amount on Simex. 8 February 1995: Coopers & Lybrand decides to hold off signing off on Barings' accounts until it becomes possible to clear up a few points with Leeson. 23 February 1995: At close of trading, the error account contains 55,399 Nikkei contracts trading, expiring in March and 5640 expiring in June.As of February 25, this totalled a loss of 59 billion yen on Simex. 24 February 1995: The Barings Board meets to discuss a hastily prepared analysis of the hastily-prepared transactions in Account 88888. March 1995: The Dutch Bank ING agrees to purchase Barings for 1 pound and assume all of its liabilities (Bull, 1995). Lessons to be Learned: Lack of internal checks and balances Even when segregation of duties was suggested by internal audit, the concentration of power in the Leeson's hands was scarcely diluted. Lack of understanding of the business.If Barings' auditors and top management had understood the trading business, the y would have realised that it was not possible for Leeson to be making the profits that he was reporting without taking on undue risk, and they might have questioned where the money was coming from. Arbitrage is supposed to be a low risk, and hence low profit, business, so Leeson's large m. profits should have inspired alarm rather than praise. Given that arbitrage should be cash cashneutral or cash-rich, additional alarms should have gone off as the Bank wired hundreds of rich, millions of dollars to Singapore.Poor supervision of employees Although Leeson had never held a trading license prior to his arrival in Singapore, there was little oversight of his activities and no individual was directly responsible for monitoring his trading strategies. Lack of a clear reporting line Leeson's fraud may have been facilitated by the confusion caused by two reporting lines: one to London, for proprietary trading, and another to Tokyo for trading on behalf of customers. customer Allikas: http ://www. erisk. com/Learning/CaseStudies/ref_case_barings. asp Kusimused:1. Millist kauplemisstrateegiat Nick Leeson oma ulemustele teadaolevalt kasutas? Kuidas selle strateegiaga teoreetiliselt raha on voimalik teenida? 2. Millist kauplemisstrateegiat Nick Leeson tegelikult kasutas? Kuidas selle strateegiaga teoreetiliselt raha on voimalik teenida? 3. Mis on back-office funktsioonid? 4. Mis sundmus sai Barings pangale saatuslikuks? Mis selle tulemusel juhtus Leesoni positsioonidega? 5. Mis olid pohjused (mida tehti valesti), et kaesolev Baringsi case sai uldse juhtuda (5 pohjust)? 6. Milliseid eetilisi noudeid Nick Leeson oma tegutsemisega rikkus ning kuidas oleks tulnud korrektselt kaituda?

Climate Change, Oil Spills, Coastal Erosion, And...

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