Interest Rate Swap Case Essay Example

Interest Rate Swap Case Paper Goodrich-Rabobank Interest Rate Swap In 1983, both B. F. Goodrich and Rabobank needed to execute external financing in order to raise 50 million dollars for ongoing operations. Goodrich wanted to raise the money through debt financing, but because their bonds were BBB- rated, they would have to pay a steep interest rate for a fixed rate. However, the Solomon brothers had an idea. Goodrich could borrow with a floating rate that was tied to LIBOR and then swap interest payments with a Euromarket bank that had raised funds in the fixed rate Eurobond market. A London bank approached Rabobank and proposed a large fixed rate Eurobond issue with the intention of swapping interest payments with a US corporation. Goodrich offered a 50 million dollar, noncallable 8 year bond, semiannual payments that will pay the LIBOR rate + 50 basis points. On the same day Rabobank issued a 50 million dollar, noncallable 8 year bond with an annual coupon fixed at 11 percent. The two issuers executed a swap with the Morgan Guaranty Bank as an intermediary guarantor. Goodrich agreed to pay Morgan bank $5. million once each year for 8 years to cover the 11% fixed coupon. Morgan bank agreed to pay Goodrich 8 years of semiannual payments. It would be the LIBOR minus a discount. Similarly, Morgan bank agreed to pay Rabobank 5. 5 million once a year for 8 years and Rabobank agreed to pay the Morgan bank the 8 years of semiannual payments at LIBOR – x. Morgan also received from Goodrich a one-time initial fee of $125,000 and an undisclosed annual fee for the each of next 8 years. Goodrich has to pay out the LIBOR + . 5% and gets the LIBOR – x and then subtract the 10. % which is the fixed rate for AAA Eurobonds that Rabobank will have. So you get that Goodrich will receive x + 11. 2%. Morgan has to pay LIBOR – x and get the LIBOR – y + 10. 7% 10. 7%. After doing the math, Morgan receives x-y in total fees and they could be anywhere between 8 and 37. 5 basis points. Rabobank will get y – LIBOR. After looking at figure 3, Goodrich would have had a fixed rate at about 12. 5% for the maturity they were looking for. Therefore, Goodrich will save 1. 3% x, while Rabobank will end up saving y – 1. 8% on their interest rate. We will write a custom essay sample on Interest Rate Swap Case specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Interest Rate Swap Case specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Interest Rate Swap Case specifically for you FOR ONLY $16.38 $13.9/page Hire Writer After breaking it down further by using the figures in the case, it can be assumed that y comes out to be 20 basis points and x is 100 basis points. Plugging those values back into the original equations you can deduce that Goodrich saves about 30 basis points because they will only be paying 12. 2%. Rabobank will save about 20 basis points and Morgan will collect the original $125,000 and then 75 basis points in fees. After adding up all of the savings, it comes out to be 1%. This is an attractive deal to the savings bank. With organizing this swap, they end up earning a good amount of money. They will have a good amount of administrative fees in order to receive all of the money from the swap and then proceed to pay out the right amount each period and keep up with the LIBOR rates to adjust the floating rate note. However, with collecting the original $125,000 and then gaining the 75 basis points in fees, they will be able to cover all of their expenses in the swap and make this a profitable investment. For the Goodrich and Rabobank this is a win-win situation for them. Because of entering the swap and analyzing the numbers from the case, both of them will end up saving money. The rates they would have had if they sold their notes without swapping would have been higher than what they end up having to pay now. Even with having to pay fees to Morgan, saving 20 to 30 basis points is a big deal. The only people that this could be a loss for are the investors that are buying the notes. They could be viewed as not as well off because they are not getting as good of a rate on the notes that they bought. However, both of the investments are still very good and pay close to the standard amount.

New Years Greetings in German, Region by Region

New Year's Greetings in German, Region by Region When you want to say Happy New Year to someone in German, you will most often use the phrase  Frohes neues Jahr.  Yet, when youre in different regions of Germany or other German-speaking countries, you may hear different ways to wish someone well in the new year.   Augsburg University in Bavaria conducted a study to find out which New Years greetings dominated certain regions in Germany. The results are quite interesting, with some areas of Germany sticking with tradition, while others offer variations of the greeting. "Frohes Neues Jahr" The German expression,  Frohes neues Jahr  literally translates to Happy New Year. It is widely used in German-speaking countries, particularly in the northern and western states of Germany. This phrase is most common in northern Hesse (the home of Frankfurt), Lower Saxony (including the cities of Hanover and Bremen),  Mecklenburg-Vorpommern (the coastal state along the Baltic Sea), and  Schleswig-Holstein (the state that borders Denmark). As often happens, some Germans prefer a shorter version and will simply use  Frohes neues. This is especially true in many areas of Hesse and in the wine country of Mittelrhein. "Prosit Neujahr" It is becoming increasingly more common for many German speakers to use  Prosit Neujahr  instead of the traditional Happy New Year. In German,  prosit  means cheers and  neujahr  is a compound word for new year. This phrase is scattered regionally and is often used in the area around the northern city of Hamburg and northwestern Lower Saxony. You will also likely hear it in many parts of western Germany, particularly around the city of Mannheim. There is also a smattering of its usage in the southeastern region of Germany in the state of Bayern. This may be due, in part, to an influence from eastern Austria and Vienna, where  Prosit Neujahr  is also a popular greeting. "Gesundes Neues Jahr" The German phrase  Gesundes  neues  Jahr  translates to Healthy New Year. You will hear this greeting most often when traveling through eastern regions of Germany, including the cities of Dresden and Nuremberg as well as the Franconia region in the south-central part of Germany. It may also be shortened to  Gesundes neues. "Gutes Neues Jahr" Meaning Good New Year, the German phrase  Gutes neues Jahr  is also popular. This version is most often used in the country of Austria. In Switzerland and the German state of  Baden-Wà ¼rttemberg in the southwest corner of the country, you may hear this phrase shortened to Gutes neues. Its also possible that youll hear this saying in the state of Bavaria, which includes Munich and Nuremberg. Yet, its most often concentrated to the south, closer to the Austrian border. Standard New Year's Greeting If you are unsure of which greeting to use or find yourself in an area of Germany not described previously, you can use a few standard New Years greetings that are widely accepted. They are: Alles Gute  zum  neuen  Jahr! Best wishes for the new year!Einen  guten  Rutsch ins  neue  Jahr! A good start in the new year!Ein glà ¼ckliches  neues  Jahr! Happy New Year!Glà ¼ck und Erfolg  im  neuen  Jahr! Good fortune and success in the new year!Zum neuen Jahr Gesundheit, Glà ¼ck und viel Erfolg! Health, happiness, and much success in the new year! Use one of these phrases, and you cant go wrong, regardless of where you find yourself throughout Germany or German-speaking counties.

Bipolar Disorder Research Proposal Example | Topics and Well Written Essays - 1000 words

Bipolar Disorder - Research Proposal Example You vascilitate backwards and forwards between being totally elated and totally gloomy, and between such periods you feel more stable.† (2008). â€Å"Imbalance in the brain biochemicals called neurotransmitters, which convey messages between the nerves, also appears to play a major role. Too many or too few neurotransmitters are believed to cause alterations in mood.† (2006). Mayo Clinic (2008) points out that â€Å"a variety of biochemical, genetic and environmental factors seem to be involved in causing and triggering bipolar episodes.† Mind.Org.UK points out the following possible causes: â€Å"Stress is likely to play a large part, and the role of cortisol on the developing brain is being researched. Prenatal stresses on the developing foetus are seen as important, both environmentally and nutritionally, as well as the impact of the mother’s mental and physical health on the foetus† (1995-2006). But this disease provokes â€Å"unusual shifts in a person’s mood, energy, and ability to function, (†¦) can result in damaged relationships, poor job or school performance, and even suicide† (NIMH, 2008). NIMH remarks the following about the bipolar disorder: â€Å"Manic-depression distorts moods and thoughts, incites dreadful behaviors, destroys the basis of rational thought, and too often erodes the desire and will to live. It is an illness that is biological in its origins, yet one that feels psychological in the experience of it; an illness that is unique in conferring advantage and pleasure, yet one that brings in its wake almost unendurable suffering and, not infrequently, suicide.† (2008) â€Å"Psychotic features (e.g., hallucinations, delusions) may be present in manic, mixed or depressive episodes and tend to relate to the mood. For example, during manic episodes, patients may believe they are invulnerable to physical harm and, during major depressive episodes, patients may believe they are guilty of a great crime or sin.

Why it is important for you to develop the philosophical mindset Essay

Why it is important for you to develop the philosophical mindset - Essay Example This is because those with the philosophical mindset not only evaluate claims, but arguments given to support claims. In this sense, philosophy has practical value for our everyday life. Many perceive philosophy as only having direct application within the university, where students contemplate the thoughts of long-dead intellectuals. But given the necessity of critical thinking and rational skepticism in all areas of life, including business, science, and politics, it seems philosophy is directly applicable to almost any kind of situation. Developing a philosophical mindset, however, is not limited to simply studying and doing well in philosophy courses. Rather, it is a matter of cultivating a general approach to life. Necessary to this general approach to life is having reasons (or empirical evidence) to support one’s knowledge and beliefs. To hold basic assumptions or opinions without evidence or without thought is the easiest way to base a life on

Literature Review of Research related to Performance Appraisal

Literature Review of Research related to Performance Appraisal This chapter served as the foundation for the development of this study. An overview of the extensive historical research related to performance appraisal,as well as the theories of motivation related to performance appraisals is presented. 2.1 Performance Appraisal System 2.1.1 Meaning of performance: There are different views on what performance means. According to Brumbrach (1988, cited in Armstrong, 2000): Performance can be actions as well as their consequences. Behaviours originate from a performer and convert performance from a concept to an act. Not just the instruments for results, behaviours are also outcomes in their own right the product of mental and physical effort applied to tasks and can be judged apart from results. The above definition considers performance to be involving both the actions, in other word behaviours, taken during the process in attempting to achieve goals and outputs obtained as a result from the effort. Following this, Armstrong (2000) emphasizes the need for managers to deal with the potential of employees and accomplishments while managing performance. To determine if performance has been achieved, measures have to be developed to appraise the accomplishments and establish the rate at which it has been accomplished. Above all, performance should be about the decision and action taken with available information at any existing situation. 2.1.2 Performance Management System (PMS) Noe et al (2006) define performance management as the process through which managers ensure that employees activities and outputs are congruent with the organisations goals.The concept of performance management has contributed a lot in the development Human Resource Management in recent years. The concept was first coined by Beer and Ruh in 1976. However, it is barely in the mid 1980s that it had been accepted as a distinctive approach. Performance Management is widely being used in organizations so as to obtain the best results by trying to improve performance of the workforce. Goals and standards are being planned well beforehand in order to get satisfied outcomes. 2.1.3 Performance Appraisal System (PAS) Performance appraisal also known as performance review, formally documents the achievements of an individual with regards to set targets. It is a component of PMS. The system has become an essential management tool in todays organizations. Managing employees performance can be said to be as important as any other work that all managers execute during the year. Grote (2002) describes performance appraisal as a formal management tool that helps evaluate the performance quality of an employee. Schneier and Beatty as cited in Patterson (1987) define it as a process which apart from evaluating also identifies and develops human performance. According to Karol (1996) performance appraisal includes a communication event planned between a manager and an employee specifically for the purpose of assessing that employees past job performance and discussing areas for future improvement. 2.1.4 History of PAS The history of performance appraisal is fairly concise. Appraisal really began with the Second World War. It was used to assess results. Dulewicz (1989) says that there is an indispensable human inclination to judge the work of other people as well as ones own work.It can thus be said that appraisal is both unavoidable and universal. Even without the existence of a planned appraisal system, one can have a tendency and find it natural to evaluate the job performance of another easily and subjectively. Performance appraisal was seen in the industry in early 1800. Randell (1994) identified its use in Robert Owens use of silent monitors in the cotton mills of Scotland. The Silent monitors were in terms of blocks of wood with different colours painted on each visible side and it was hung above each employees work station. At the end of the day, the block was turned so that a particular colour, representing a grade of the employees performance, could be seen by everyone. (Weise and Buckley, 1998) Subjective evidence indicates that this practice had a facilitating influence on subsequent behavior. Spriegel(1962) and Weise and Buckley(1998) affirm that by the early 1950s, 61 per cent of organizations regularly used performance appraisals, compared with only 15 per cent immediately after World War II. DeVries et al. (1981) pointed out the primary tool to be the trait-rating system, which focused on past actions, using a standard, numerical scoring system to appraise people on the basis of a previously established set of dimensions. The main tool, used under here was trait rating system. The concept of Management by Objective (MBO) was first proposed by Peter Drucker in 1954. Mcgreror then used it in the appraisal process in the year 1957. He suggested that, employees should be appraised on the basis of short-term goals, rather than traits, which are jointly set by the employee and the manager. Weise and Buckley (1998) affirm that this method was very advantageous as it lead to a transformation of a managers role from being a judge to a helper. It also showed that employees productivity ultimately leads to performance. However, when employees performance was measured on the basis of units, then MBO was ineffective. This lead to new development in the appraisal process and the employees were evaluated on the basis of behaviour based rating. Smith and Kendall (1963) designed the first tool to focus on behaviors and it was the Behaviorally Anchored Rating Scales (BARS). 2.1.5 Modern Appraisal Todays performance appraisal process has evolved into a more planned and formal process. It is used as a means which helps identify and compare employees performances. The appraisals data are frequently being used to review several Human Resources decision. It can determine any need for career developments and trainings. For issues such as raise in salaries, rewards and promotions, employers are more and more making use of the appraisals results. Appraisals have now developed into a regular and intervallic system in organizations, normally carried out at least once a year. When talking about the modern approach to appraisal, the term feedback cannot be ignored. The one-to-one discussion between supervisors and subordinates gives rise to feedback and is referred to as the feedback process. This process can improve communication all through the organization but also it can reinforce employees relationships with their superiors. This is so as the workers have the feeling that they do matter to the organization and that their needs are being taken into consideration. The performance appraisal system has most likely become a future-oriented approach as it aims to improve future performances by considering present problems. 2.1.6 Purposes of PAS The most known purpose of performance appraisal is to improve performance of individuals. Cummings and Shwab (1973) held that performance appraisal has basically two important purposes, from an organizational point of view and these are: 1. The maintenance of organizational control 2. The measurement of the efficiency with which the organizations human resources are being utilized. Still, there are also a variety of other declared purposes for appraisal as per Bratton and Gold (2003) and Bowles and Coates (1993) and some are; improving motivation and morale of the employees, clarifying the expectations and reducing the uncertainty about performance, determining rewards, identifying training and development needs, improving communication, selecting people for promotion, discipline, planning corrective actions and setting targets. Furthermore, Bowles and Coates (1993) conducted a postal survey of 250 West Midland companies in June 1992, where organizations were asked questions pertaining to the use of Performance management in the organization. These questions included the apparent purpose of PA in the management of work, its strengths and weaknesses. Through their survey they found out that PA was beneficial in the following ways: PA was favorable in developing the communication between employer and employee It was useful in defining performance expectations It helped identified training needs. Performance appraisal can thus be used as an effective tool to improve employees job performance by identifying strengths and weaknesses, meeting of targeted goals and providing training if needed. 2.1.7 Techniques of PAS There are several commonly used techniques of performance appraisal as reviewed by Oberg (1972). They are as follows: Essay Appraisal, Paired Comparison, Graphic Review Scale, Weighted Checklist, Person to Person Rating, Forced Ranking, Critical Incidents. The above techniques were the traditional ones but the methods most widely used today are: Management by Objectives Employees are requested to put up their own performance objectives. They are then judged through these objectives by verifying whether they were satisfied or not. However, in many cases organizations themselves set their standards and goals even after consulting employees. 360 Degree Feedback 360 Degree Feedback is a process in which employees receive private and anonymous feedback from the people who work around them. Kettley (1997) says that when an individual receives feedback from different sources of the organization, including peers, subordinate staff, customers and themselves, the process is called 360 degree feedback or appraisal. The employee is then assessed using those received feedback 2.1.8 Feedback Feedback about the effectiveness of an individuals behavior has long been recognized as essential for learning and for motivation in performance-oriented organizations. Ilgen et al.(1979) stated that feedback is considered as an important tool in performance appraisalprocess. Feedback can be a useful tool for development, especially if it is specific and behaviorally oriented, as well as both problem-oriented and solution-oriented according to Murphy and Cleveland (1995). One of the basic purposes of formal appraisal process is the provision of clear and performance based feedback to employees. Carroll and Scheiner(1982) affirmed that some organisations use feedback as a development tool,while in some organizations it is used for merit evaluation and compensation adjustment. McEvoy and Buller(1987),Wohlers and Gallagher( 1990) contributed that feedback is very essential for the employees because it forms a baseline for the employees which help them to get a review of their past perfo rmance and chance to improve their skills for the future. Ashford (1986) says that when feedback is considered as a valuable resource, then only the individuals feel motivated to seek it, which helps in reducing uncertainty and provides information relevant to self-evaluations. There is also evidence that performance feedback (if given appropriately) can lead to substantial improvements in future performance (Guzzo et al., 1985; Kopelman, 1986; Landy et al., 1982) Fedor et al. (1989); Ilgen et al. (1979) identified that it is commonly accepted that negative feedback is perceived as less accurate and thus less accepted by recipients than positive feedback.Furthermore, Fedoret al. (1989) found that negative performance appraisal feedback was less accepted and perceived as less accurate than positive performance appraisal feedback. 2.1.9Views Organisations Employees have on P.A.S Evans (1986) asserts that many employees believe that their promotion or salary increments depend mostly on their performance. Employees therefore are in a dilemma and consider this situation as survival of the fittest. They know for a fact that, their performance will only be taken into consideration at the end of the day. So, in order to grow in the company they need to be proactive towards their work. The feedback the employee receives from his superior, may simply describe the level of performance achieved. Hence, it becomes important for the managers to conduct the appraisal technique correctly. Employees can only accept criticism if it is useful and important to them. Managers should therefore know how to give information regarding progress made in performance and how to present criticism as well. Meyer et.al (1965) carried out a study in General Electric Company where certain points relating to performance feedback was highlighted. In this study, 92 employees were appraised by their managers on two occasions over two weeks. The study was carried out using questionnaires, interviews and observation. The first appraisal highlighted performance and salary while the second one underlined performance and improvement. It was observed that lots of criticisms were pointed out by the managers, which lead to defensive behaviour of the employees. The conclusion of the study was that criticism leads a negative impact on the motivation and performance of the employees. Also feedback sessions designed to improve performance should not at the same time consider salary and promotion issues. Ilgenet. al (1979) add that employees who believe that the appraisal system is under any kind of bias, are most likely to be dissatisfied by their work and can also leave their jobs. On the other hand Murphy and Cleveland highlighted one possible reason for the widespread dissatisfaction with performance appraisal in organization as the systems used by these help neither them nor their employees in meeting the desired goals. Landy et al. (1978), Klasson et al. (1980), and Tang and Sarsfield-Baldwin (1996) found evidence that the assignment of raters influences perceptions of fairness and accuracy in performance appraisals and hence about the whole process itself. Nevertheless, according to Jacobs, KafryZedeck (1980) employees perceive PA to give them a proper understanding of their duties and responsibilities towards the organization. Likewise, organization sees it as a tool to assess employees on a common ground and one which helps in salary and promotions decisions, training and development programs. In many circumstances appraisal plans are interpreted by managers as a system that helps an organization to change regular priorities and usual ways of working and in so doing to alter its strategic direction. Hence, in circumstances where change cannot be attained by managerial proclamation, appraisal takes on the character of an engine of change. When managers look at appraisal from this angle they hope that it will bring about a change in strategic direction and organizational behaviour. Researchers have suggested that reaction to performance appraisal is critical to the acceptance and use of a performance appraisal system (Bernardin Beatty, 1984; Cardy Dobbins, 1994; Murphy Cleveland, 1995). Reactions may even contribute to the validity of a system (Ostroff, 1993). Cardy and Dobbins (1994) suggest that with dissatisfaction and feelings of unfairness in process and inequity in evaluations, any performance appraisal system will be doomed to failure (p. 54). Murphy and Cleveland (1995) stated that reaction criteria are almost always relevant, and an unfavorable reaction may doom the carefully constructed appraisal system. 2.1.10Benefits of PAS Possibly the most important benefit of appraisal is that, in the rush and pressure of todays working life, it allows the supervisor and subordinate to have time out for a one-on-one discussion of indispensable work problems that might not otherwise be addressed. Likewise, the existence itself of an appraisal system indicates to employees that the organization is genuinely concerned with their individual performances and advancement. This only can have a positive impact on the employees sense of worth, commitment and belonging. Appraisal offers the rare chance to focus on employment activities and objectives, to spot and correct existing problems and to enhance favorable future performance. Thus the performance of the whole organization is improved. Performance appraisal usually provides employees with acknowledgment for their work efforts, if any and as a result it brings them satisfaction. Actually, there are facts supporting that human beings will even prefer negative recognition in rather than no recognition at all. During performance appraisals, feedbacks are obtained. These provide vital information on whether training and development needs should be considered. The presence or lack of working skills, for example, can become very obvious. The supervisor and subordinate can thus agree upon any demand for training. As far as the organization is concerned, the overall appraisal results can provide a regular and efficient training needs audit for the organization as a whole. The information obtained from appraisals can also give indication on an organizations recruitment and selection practices. This can be done by screening the performance of recently hired workers. The general quality of the workforce can also be monitored by assessing any improvement or decline performances. Changes if needed in the recruitment strategies can then be considered. 2.1.11Criticisms related to P.A.S There are several problems in the actual performance appraisal primarily due to rater bias. Some supervisors are too lenient and thus have a tendency to rate all employees positively rather than really measuring their performance. Another problem is the central tendency where supervisors position the majority of the employees in the center of the performance scale, even though they deserve a better or worse grade. The halo effect is another error usually made during appraisals. This arises when a supervisors general feeling about an employee influences the overall judgment. Performance appraisal systems are at times criticized for weaknesses in the system design itself. Sometimes they assess the wrong behaviours or consequences, or focus on employees personality instead of on their work performances. Very often standards for appraising employees are not related to the work itself. As a consequence employees may not likely be interested in such a system where performance standards are unsuccessful in highlighting important aspects of the jobs. Some organizations founds that PAS is a constant cause of tension, since evaluative and developmental concerns come often into disagreement. It is said that the appraisal can serve only one of them at a time. Also they find it dehumanize and demoralize to pass on judgments which then become source of apprehension and stress to employees. Many researchers such as Derven (1990) expressed doubts about the effectiveness and dependability of the appraisal process. Some found the process to be imperfect in nature. Moreover, Gabris Mitchell found a disturbing bias in the appraisal process called the Matthew Effect. It is said to take place in cases where employees keep on receiving the same evaluation each year. This denotes that there is the belief that if an employee has work well, he or she will continue on that pace. The Matthew Effect advocates that even if employees struggle to do well, their past appraisal reports will discriminate their future progress. Accuracy is important in appraisals. However for raters to appraise employees accurately, they should give unbiased results. Unfortunately accurate ratings are quite impossible as researchers affirm that personal liking, look, former impressions, gender and race will certainly manipulate appraisals, that is, there will always be some kind of biasness. 2.1.12Conclusion about PAS There are various schools of beliefs as to the validity and reliability of performance appraisals. While Derven (1990) doubts about its dependability, Lawrie (1990) finds it to be the most important aspect of organizations. A recent survey concluded that more than fifty per cent of the workforce wishes that their supervisors list the performance objectives much more specifically and clearly. The same survey revealed that 42 per cent of the employees were rather disappointed their organisations performance appraisal system. Many supervisors make the wrong use of appraisal. They use it as a punitive tool rather than helping their subordinates to improve their performance and overcome work problems. According to Shelley Riebel, as in the Detroit News (April 11, 1998) often managers are unsuccessful to explain what they really expect from their employees and fail to well describe the criteria used for assessing their performance. The data obtained during the appraisal process should be wisely used and considered. Still, for performance appraisal to be successful, it is important to carry it out on a regular and consistent basis. This will allow supervisors to follow and review employees work. Raters often make the mistake of emphasizing too much on mistakes committed by the employees. Rather, if ever some problem is spotted by the supervisor, the issue should be discussed with the employee concerned and both should try work on a solution. 2.2 Motivation Performance Appraisal System 2.2.1 Introduction to Motivation Motivation can be defined as the driving force that moves us to pursue a certain goal, or trigger a particular action. It can be considered as the desire within a person causing him or her to act. People generally act for a motive and that is to achieve a specific objective. Two main types of motivation have been noted, namely intrinsic and extrinsic. Intrinsic motivation comes from the inner self while extrinsic motivation arises when external factors require one to perform something. According to Passer and Smith (2004) the concept motivation refers to a course of action that influences the determination, direction and dynamism of goal-directed behaviour. Similarly, Kreitner and Kinicki (2007) assert that motivation represents psychological practices that stimulate voluntary actions. In the work context, as confirmed by Coetsee (2003), motivation entails the readiness of individuals and groups to put much effort so as to achieve organizational goals. From the above, it can be construed that there exists no single and general definition for motivation. Yet, Boje and Rosile (2004) regard motivation as an authoritarian ideology, a way to manipulate performance and where visions of self-actualisation need gratification. This view might be too negative to consider, but the rise in capitalism has been driven by high concentration motivation programmes which sometimes turn employees into production machines. 2.2.2 Motivation and P.A.S in Organisation Today Motivation can be the key to a successful organization. It is often claimed that the best businesses have the best motivated workers. Well motivated employees are said to be more productive and perform quality work. It remains however one of the most challenged tasks for managers to motivate their staffs as everyone is unique. A supervisor should strive to tie in the companys goals together with the employees individual goals through performance management. Moreover, the whole performance appraisal process and its result can affect an employees motivation. As highlighted by Cummings and Swabs (1973), employees performance is the outcome of the employees motivation to perform. In an organisational context, the performance is appraised by assessing the employees aptitudes and potentials to achieve the set goals. 2.2.3 Theories of Motivation related to P.A.S 2.2.3.1 Edwin Lockes Goal Setting Theory A main element for efficiently coaching employees is by using goal setting. Edwin Locke (1968) introduced the Goal Setting Theory whereby employees get motivated to work for the organisation when they are given specific and pronounced goals to achieve. This theory emphasizes that hard goals produce a higher level of performance than easy goals. Secondly, particular hard goals produce higher level of output and lastly, behavioural intentions lead to choice behaviour. Many, who study the relationship between performance and motivation in organizations, will agree that goal-setting and explanation creates confidence in the workers. By clearly explaining the meaning of the goals, employees will have a clear view on what the organization wants to achieve. Coetsee (2003) affirms that the most performing workers are goal-directed. Set goals allow employees to accomplish organisational vision, aims and strategic objectives. The assumption made here is that when people recognise and understand what is expected from them and how they are to be met, they will be motivated to achieve them within the time-limit. With regard to coaching, goal-setting theory has been used more than any other as a framework to motivate employees to improve their performance. The early work of Maier (1958) and Meyer et al. (1965) emphasized goal setting in the appraisal process. In a study, Latham et al. (1978) found that consistent with the theorys predictions, employee participation in setting the goals resulted in higher performance than assigning them, not because of greater goal commitment, but rather due to high goals being set. According to Dossett et al. (1979), a similar result was observed with Weyerhaeusers word processing employees. Goals and objectives set by the employers and employees should be discussed regularly. Erez (1977) asserted that for difficult goals to result in high performance, sufficient feedback is very important. 2.2.3.2 Behaviour Maintenance Model (BMM) Cummings and Swabs presented the Behaviour Maintenance Model (BMM) to illustrate how people are motivated to perform efficiently in an organisation. This model emphasises on the significance of outcomes in the motivational process. Fig.1: Behavior Maintenance Model This framework shows that goal aspirations results in goal attainment and motivation. When goal attainment is achieved by the employee, it leads to job satisfaction which in turn leads the employee to become motivated. 2.2.3.3 Victor Vrooms Expectancy theory Expectancy theory is an idea that was introduced by Victor Vroom. The theory as explained by KreitnerKinicki (2007) is based on the assumption that people are motivated to act in ways that will be followed by valued and desired outcomes. The theory says that an employee might be motivated when there is a belief that a better performance will result in a good performance appraisal which will help in the realization of personal goals. The theory focuses on motivation as the combination of valence, instrumentality and expectancy. Valence is the value of the alleged result. Instrumentality is the point of view of an individual whether he or she will really obtain what they want. It shows that successful act will eventually lead to the desired result. Expectancy refers to the different level of expectations as well as confidence regarding ones capability. Employees believe that these create a motivational force and this force can be represented by the formula: Motivation = Valence x Expec tancy The theory focuses on three things: à ¢Ã¢â€š ¬Ã‚ ¢ Efforts and performance relationship à ¢Ã¢â€š ¬Ã‚ ¢ Performance and reward relationship à ¢Ã¢â€š ¬Ã‚ ¢ Rewards and personal goal relationship 2.2.4 Conclusion: Performance Appraisal as Motivator? From the above reviews, it can be seen that no such research has been done to show if performance appraisal really acts as a motivator to employees. Bratton and Gold (2003) and Bowles and Coates (1993) claimed motivation to be one of the purposes of appraisals. It remains unconditional to know whether performance appraisal has a role to play in employees motivation. The research will therefore try to answer the following research questions: Does the Performance Appraisal System affect employees motivation? Does the system affect more a specific category of employees? How do employees perceive the PAS at the MRA? How do employees perceive feedback? Does the level of importance given to the system directly affect the employees motivation? Does the trust put on the appraiser influences the employees motivation?

Being a successful student is not difficult

Being a successful student is not difficult. Many students are trapped in their busy schedules, but few realize that being a successful student is well within everyone’s capability. The most important factor that comes in is ‘time management. ’ With regular management of time, work does not pile up, leaving more time for the student to pay attention to his/her studies rather than worry about meeting deadlines. Time management also creates an organized and well-thought-out work and study environment, encouraging the student to gain more knowledge.Mismanaged time can be devastating. It may sound exaggerated, but for a student, each minute is important. With work piling up, many begin getting worried, and it gets harder for them to work efficiently, and to their level best. With deadlines to meet, many also give in shabby and mediocre work, which eventually costs them their grades. Mediocre work has its own implications. Overall, a student’s self-esteem takes a nose dive. The cycle goes on.On the contrary, a student who does his/her work on time, with attention gets encouraged, and gets more determined to prove him/herself even better next time. Being a successful student also has a lot to do with presence of mind. Many students remain absent-minded during lectures. This results in poor understanding of the subject, and waste of time. Along with paying attention, one also needs to retain the knowledge gained. In order to do this students ought to note down things.Important points jotted down during lectures are often helpful. Students also need to read from other guide books and reference books in order to enhance their understanding of a subject. This results in through in-depth analysis. Students should also make time to study. Studying again, should be done in a most organized manner, with a deep understanding of the topic. Last but definitely not the least is the desire to be successful. Students who are motivated are always successf ul, no matter what hurdles stand in their path.

Moby Dick: Chapter 58 Essay

It is in human nature to hold in contempt and fear things unknown to them, on the other hand many people hold the pursuit of knowledge as the one true path to fulfillment in life. The dangers of the pursuit of knowledge are an underlying topic in Ishmael’s discussion of brit. Ishmael describes the sea as enigmatic and immensely more dangerous than the land; in doing so reveals how attempting to study the unknown in the pursuit of knowledge is far more dangerous than remaining ignorant. In Ishmael’s discussion about brit he quickly drifts off the subject of the actual brit and begins to make comparisons between the land and the sea. He states that even â€Å"though some old naturalists have maintained that all creatures if the land are of kind in the sea†(Melville 272), he has yet to see any creatures of the sea that have the same charm and kindness as domesticated pets. He reveals the inherent lack of kindness or hospitability in oceanic creatures by making this statement. He goes on to say that,†however baby man may brag if his science and skill, and however much in a fluttering future that science and skill may augment; yet forever and ever to the crack of dawn, the sea will continue to insult and murder him†¦ man has lost that sense of the awfulness of the sea which aboriginally belongs to it.†(Melville 273). This passage illustrates the core of what Ishmael is trying to describe in his argument. It reveals the horror and indomitable terror of the sea, which according to Ishmael people seem to have forgotten about and take for granted. He also belittles human’s in the passage calling them â€Å"baby man† showing how powerless he believes people are compared to the sea and how no matter how much people advance they cannot compare to the sea’s power. He goes on to expand on this idea stating the many ways in which the ocean’s horrors hold supremacy over all others such as the sea’s lack of mercy and control as well as its deceiving beauty and how â€Å"its most dreaded creatures glide under water unapparent for the most part and treacherously hidden beneath the loveliest azure†(Melville 274) Underlying this description of the terror of the ocean is a warning; Ishmael attempts to show how trying to study the unknown in pursuit of knowledge is far more dangerous than remaining in a state of ignorance. Ishmael uses detailed description to over emphasize how terrifying the ocean is. This shows the use of storytelling and redefinition in order to get the audience picture the terrors of the ocean and in doing so empathize with Ishmael’s beliefs. This indicates Ishmael’s use of pathos in his argument. Ishmael besides describing the ocean as a perilous place he describes it as â€Å"an everlasting terra incognita† (Melville 273), this declaration of the incapableness of man to unravel the mysteries of the ocean shows the, almost fearful, reverence he holds towards the ocean and its mysteries. A reverence he attempts to impart upon the audience through the aforementioned use of hyperbole and redefinition, showing a use of pathos to make the audience sympathize with these feelings. It seems that Ishmael would rather people not attempt to learn about the unknown rather than expose themselves to its dangers. This is apparent when this extract, â€Å"For as thy appalling ocean surrounds the verdant land, so in the soul of a man there lies one insular Tahiti, full of peace and joy, but encompassed by the horrors of the half known life. God keep thee push not off from that isle, thou canst never return!†(Melville 274). This is the conclusion to Ishmael’s discussion and reveals the reasoning for his statements. The â€Å"horrors of the half known life† encompassing the â€Å"insular Tahiti† are the things people attempt to learn about the world and themselves. Ishmael believes that by venturing out into the sea of one’s soul man exposes himself to all the dangers of the world. This shows how he believes that it is better to remain on a peninsula of ignorance and comfort than venture out into the sea of knowledge. Ishmael urges people to remain in their small insular world threatened by what lies beyond. He believes that one will find less comfort in discoveries than in ignorance and as such people should stay clear of the mysteries of the world.