Environmental problems caused by gold mining and treatment

Gold Mining inevitable damage to the environment, to induce a variety of negative effects of geological environments. Currently, the shortage of resources, population growth, environmental pollution and other issues facing humanity increasingly prominent, visible, in-depth study of mining development and its negative effects induced comprehensive treatment is necessary, its far-reaching.Gold mining-induced negative effects of geological environment, gold mining-induced negative effects of water environment, gold mining-induced negative ecological effects, so eople must be the comprehensive management of the gold mining environment. First, you can adopt Vertical Roller Mill for Slag Grinding tailings produced a comprehensive recycling, making people get the maximum benefits. Help people refine utilization of valuable metals or other components. Because many abandoned gold ores and tailings contain some Cu, Pb, Zn, etc. the use of advanced technologies and integrated approach can recla im this part of the useful elements. One thing is very important that we must understand a lot of the equipment operating rocedures, these appliances and equipment for the treatment and long-term use of the latter part of the environment are very useful. For vertical slag grinding it can refer to the Depth study of occurrence can mine ore, and mechanical properties, and the impact of construction on the mine, predicted negative effects caused by mining to prevent rock moves in the mining process.Already collapsed, sliding rock should be reinforced or filled to prevent it expand. Help restore the ecological balance. When on the selection of mining on the environment more friendly Gold Separation Equipment, in order to mine the aste caused due to mining should be integrated governance, multi-level integrated approach to achieve the waste land reclamation standards, planting plants, recovery ecological balance.Mining is a mineral resource development process necessary means insurmounta ble, how to reduce the negative effects of the mining process, the development of the mine has effects arising from the comprehensive treatment is necessary, its far-reaching. So, should further strengthen the process of gold mining induced geological environment and its negative effect of Integrated Management of work.

Current Issues in Law and HR Course Work Essay

Organizations are considered to be the most incentive, social arrangement of today. It’s considered a marvel to know that thousands of people with individual backgrounds, skills and interests are coordinated into various organizations, so that they can pursue their common institutionalized goals and objectives. The historians of the future see today’s organizations as the greatest achievement of our time and era. For example biogenetic engineering have had some breakthroughs. The Apollo mission to the moon was made possible by the organization called NASA. Even on day to day basis organizations play an important role in our lives. The water we drink to the food we eat or the clothes we wear all comes from different kinds of organizations Human resource is defined by many companies as a combination of the administrative functions with the performance of the company’s employees and their relations along with the company’s planning. Human resource basically develops mostly from industrial and organizational behaviour. The major function that are included in HRM are recruitment, selection, training and development, orientation, placement, separation, career planning, performance appraisal, salaries and wages, incentives and gain-sharing, benefits, services and security and employee relations and assessment. The term human resource basically refers to the people of the company. The manager of the company engages in HR because the HR activities and tasks are considered to be an important part of the company. It basically helps the company to achieve the goals and the objectives that are set for them by the management. As you all know that human resource activities also make a large contribution to the company’s success in many ways but the HR activities mostly support the strategies of the organization. The HR department basically exists to support the managers and the employees of the company and to pursue the company’s goal or objectives (Werther & Davis 1996). The major challenges that would be faced by the organization are as follows: – †¢ Population-growth challenges †¢ Global Competitive Challenges †¢ Unemployment Challenges †¢ Social Responsibility Challenges †¢ Medical, Food, Housing Challenges †¢ Unknown Challenges †¢ Ethical Challenges †¢ Workforce Diversity Challenges The objectives of the HR department are based on societal, organizational, functional and personal goals. It is known that the objectives of the company are not formally stated that is they are not in the written form. The objective of the human resource management not only reflects the intention of the middle and top management but also balances the challenges that are faced by the HR department. Objectives are basically considered as benchmarks against which the actions can be evaluated. The human resource objectives not only reflect the intention of the management but also balance the organizational challenges, the HR function and the people who are affected by it. If the company fails to succeed in its objectives it would harm the company’s profits, performance and even the survival of the firm. As we know that there are four objectives that are common to the HR management. The objectives are as follows: 1. Organizational Objective: which basically recognizes that the HR management exists and it contributes to the organizational effectiveness. The HR department basically exists so that it can help managers of the company to achieve the objectives and goals of the company. HR management only supports the managers with the human resource issues. If we put is simply the HR department only exist solely to help assist the rest of the company. 2. Functional Objective: which basically states that this objective solely exists to maintain the department’s input at a level that is considered relevant to company’s needs. A relation exists between the objectives and the HR activities and they are appraisal of the employee, placement and assessment of the employee. 3. Societal Objective: this objective shows that the company has to be ethically and socially responsive to the needs and challenges of the society while the company minimizes the negative impacts of such demands on the organization 4. Personal Objective: shows that the HR management helps assisting the employees in achieving their goals and objectives. And these goals enhance the individual’s contribution towards the organization. To achieve these goals the HR department help the managers of the company to obtain, maintain, utilize and retain the right amount and types of workers. The objectives of the employees must be met otherwise the employees would not be motivated, retained and maintained by the HR department of the company. And the employees would neglect their jobs, voice their complaints or maybe leave the organization for a better opportunity (Werther & Davis 1996). It is not necessary that all the organization can meet the HR objectives every time. Some sort of trade-offs do occur that stops the company in achieving the stated goals and objectives. When the objectives are net by the department, they make a huge contribution towards the organization’s and employees needs. And with the help of these objectives the managers are able to see the kinds of activities that are needed to be carried out and why. There is a relationship that exists between the objectives and the activities of the HR. For example, for the societal objective the supporting activities would be legal compliance, union and management relations and benefits of the employees. For the organizational objective the supporting activities would be HR planning, employee relations, selection, training and development, appraisal, placement and assessment. For functional objective the supporting activities would be performance appraisal, placement, assessment and development of the employees. And for personal objective the supporting activities would be training and development, performance appraisal, placement, assessment and compensation of the employees. The HR activities are considered as actions that are taken by the department to maintain a workforce balance that is considered as appropriate to the organization’s needs. For example, small companies who do have the HR department have small budgets and small staffs therefore the HR department of such companies only focus on the activities that they consider are important for the company. The functions or activities that are considered important for such companies would be planning, recruitment, and wages and salaries of the employees. The functions that are performed by the HR department of the organization are as follows: – Planning is the first activity that is conducted by the department. Planning can be defined as the systematic forecast that determines the company’s future and the demand and supply of the employees that would be needed by the organization. HR planning is also known as employees planning which helps the HR department and other managers of the company to develop staffing plans so that they would go along with the strategy of the company. it is important that the company is staffed with the right amount of people so that the strategic operational and functional goals of the company can be met. It has been realized by a lot companies that the HR plans are very important if the organization wants to have strategic success. For example, companies like Nokia and Apple it is important to have strategic plans because it would help the companies by developing new products and introducing them as quickly as possible in the market. It is only possible when the company is staffed with the right kind of people. Without the right people strategy based opportunities would be lost to a better staffed organization like Motorola and IBM (Werther & Davis 1996). Recruitment is one of the important activities of the HR department. Recruitment is mostly concerned with attracting and finding individuals who are capable for employment. The recruitment process begins s when the new recruits are sought and this process ends when the applicant submits and application. People who find new recruits are called recruiters. The process of hiring is faced with some limitations like costs, incentives, job requirements, policies of the company, environment conditions, insufficient and scarce resources and EEO legislation etc. Recruitment is done in two ways 1) internal channel which includes job posting program and departing employees 2) External channel which includes advertising, walk-in and write-ins, employee referrals, state employment agencies, open house, international recruiting, temporary help agencies and leased employees etc (Recruitment Process) Selection is one of the activities of the HR department. Selection is defined as a process that is based on specific steps that are used to describe that which individual should be hired. This process starts when the individual applies for the job and it ends when the final decision is made by the management of the company. the selection process is also faced with some limitations like EEO legislation, Workforce diversity and external prohibitions etc. ( The Selection Process). The selection process is based on eight steps and these steps are as follows:- †¢ Preliminary reception of applications †¢ Employment tests †¢ Selection interview †¢ Preference and background checks †¢ Medical tests †¢ Supervisory interview †¢ Realistic job preview †¢ Hiring decision Orientation, Placement and Separation is considered to be an activity of HRM. Orientation can be defined as when the new recruits are given an overview of the company on the first day of work. The orientation program of the company is based on the following goals 1) the pride of belonging to the company 2) creates awareness about the company’s business 3) emphasize on customer focus and service 4) helps to reduce the concerns that are related to the job 5) helps with development of a team member and 6) helps to establish personal growth etc. Placement can be defined as the work activities that are assigned to a new employee. The role of HR department here is that to advice the managers of the company about the rules and the regulations and it also provide counseling to the employees. Placement is based on 3 classes 1) promotion, transfer and demotion. Separation can be defined as a decision where the individual and the company must part. Separation process starts either the employer or the employee. The role of HR department is to find a method which is satisfactory for conducting a separation in such a way that it reduces the harmful factors that might affect the company. Training & Development is concerned with that placing the employees in a job does not give the company the surety that the individual would be successful in his or her job. Training and development programs are considered important for all the employees. The distinction between training and development is that training is for now and development is for the future. For example at Corning Glass there are a lot of learning opportunities that range from skilled orientation training to seminars that deal with development issues, they basically help the managers to face the issues that might arise in the future. The employees of the company are not bothered that the class is intended for training or development. It is only concerned with whether the program has helped the employees and the organization or not (Training and Development). Training and development are based on the following steps: – †¢ Need assessment †¢ Learning principles †¢ Program content †¢ Training and development objectives There are some challenges that are faced by HR department due to training and development. For example cost effectiveness, desired program content, learning principles and appropriateness of the facilities etc. The role of HR department over here is that it helps to prepare the individuals for future job responsibilities. And it also attempts stops the employees from obsolesce, work force diversity, technological changes, affirmation action and employee turnover etc. (Werther & Davis 1996) Career planning is one of the activities of the HRM. When the department is doing career planning it is mostly concerned with whether the company’s training and development programs has helped the employees with promotion chances or not. A couple of decades ago career planning was seen as an individual’s problem but now career planning is seen as the HR department’s problem. The HR managers and specialist see career planning as a way to meet the internal staffing needs. The involvement of the HR department in career planning is increasing everyday due to its benefits like low turnover, satisfies the needs of the employees, personal growth, helps with workforce diversity and decrease hoarding etc. Performance appraisal is one of the major activities of HRM. Performance appraisal can be defined as evaluating an employee’s current or past performances relative to his or her performance standard. In this competitive world companies require a high performance so that they can become dominant leaders in their perspective markets. And at the same time employees also need feedback on their performance so that it can act as a guide for their future behavior and responsibilities. There are some challenges that are faced by the HR department regarding the performance appraisal like legal constraints, rater’s biases regarding the employee based on halo effect or personal prejudice or even cross cultural biases etc. It has been vied been viewed by the experts that when there is poor performance throughout the company it creates huge problems with the human resource management activities(Grote &Grote 1996). Wages and Salaries are concerned with compensation. Compensation can be defined as something the employees receive in their return of their input to the organization. Without proper compensation the employees of the company would leave and it would be difficult for the company to hire new recruits. The result of pay dissatisfaction can harm the productivity of the company and can also harm the quality of work life as well. There are some challenges that affect the compensation plan like wage rates, union, constraints by the government and equal pay etc. ( Salary and Wages) Security, Safety and Health is considered a challenge for the HR experts that how to comply proactively with the minimum costs for the organization and to provide with the minimum of costs for the organization and to provide the greatest of benefits to its employees, whereas in the area of employee security and health companies have taken a proactive action. It is the role of the HR department to face the challenges that arise overtime. The HR is usually faced with 2 kinds of challenges: 1) Internal challenges which are also the organizational challenges. Internal challenges for example would include union, information systems, organizational conflicts between the company and the employees. 2) External challenges are those problems that exist due to the changing environment and the management has no control over it. Change in the company’s environment actually evolves at different kinds of rates. External challenges would include workforce diversity, technology, economics and government. The HR department has to follow 4 steps so that they can overcome the external challenges. They are as follows: – †¢ Monitor the environment †¢ Evaluate the impact of the challenges on the company †¢ Take proactive measures that is implement approaches that would help the company to achieve its goals †¢ Obtain and analyze the feedback. It is the role of the HR department to achieve a balance between the trade-offs of efficiency and effectiveness. For example when jobs are under specialized the job design may be simplified by decreasing the number of tasks and if the job is over specialized the number of job tasks can be enriched and expanded by the human resource department.

Orcein Assignment Example | Topics and Well Written Essays - 250 words

Orcein - Assignment Example The project recommended that, when performing Orcein staining technique, it is important to use Orcein from different suppliers, which can reduce errors in the detection process by comparing the different results obtained by each company’s dye (Krishna, 2013). It is also important to stain at least a sample of five or more slides before deeming the results as negative. Orcein staining technique is thus, a simple and excellent method for detecting HBsAg, resulting in a positive Hepatitis B result and can give reproducible results in a routine environment. In addition, the project explains how Hepatitis B infects the hepatocytes of the liver. The Hepatitis B antigen (HBsAg) occurs as granules, which are fine in texture and can be diffusely spread out on the entire cytoplasm or concentrated in the peripheral regions of the cytoplasm or the sinusoidal space (Ray, 2012). The appearance of these granules is referred to as ground glass. HBsAg appears as round, oval or as irregularly shaped aggregates in a single cell involvement. (Kirkpatrick, 1982). Even though the examination is necessary when diagnosing Hepatitis B, a number of staining techniques exist that assist in detecting Hepatitis B in the liver (Krishna, 2013). Some techniques such as a simple H & E stain or other immunohistochemical markers are used. Orcein stain makes it possible to observe the morphological identification of

The Interview Project Essay Example | Topics and Well Written Essays - 1250 words

The Interview Project - Essay Example When Linda was asked about the main causes of her divorce, she cited the lack of compassion and romance as the key reason why the marriage failed. Linda and her husband loved each other very much, just not in a way that would run them through marriage. However, she argued that she valued her husband very much and more often than not, they had a lot of fun together. However, something seemed to be missing from the picture. From an objective opinion, the main reason for their divorce was the absence of compassionate and romantic love. Lamanna, Riedmann, and Stewart (2015) review such a case when addressing marriage as an institution. According to the text, marriage is not based on love alone and this has been the case for centuries since the establishment of marriage. Marriage in the past was an economic and political institution that should not be entered merely because people are in love or care for each other (Lamanna, Riedmann, and Stewart, 2015). The dynamics of marriage are not similar to that of a normal relationship. Hence, Linda and her ex-husband were completely justified to get married, because they were compatible and responsible for each other. Linda also argues that her husband and she were best friends and they would talk about anything. They agreed on almost everything, but the absence of love, the same love that should not be considered when getting married, was the key cause of the divorce. However, in time, the concept romantic love in marriage came to be expected in marriage. Towards the end of the eighteenth century, individualism became the norm. People craved with personal satisfaction and happiness, began attaching the concept of marriage with romantic love all through Europe (Lamanna, Riedmann, and Stewart, 2015). As such, the reason for the divorce was ultimately justified. When asked about how divorce affected her, Linda was frank to

Monetary and fiscal policy Essay Example | Topics and Well Written Essays - 1000 words

Monetary and fiscal policy - Essay Example Through tax cuts, my firm will save very many jobs that previously would have been lost. When utilized, tax cuts save many jobs and this in return helps in saving the economy from taking major shots. Because a firm like mine is not a popular decision at the time tax cuts were available, when the distribution of tax cuts are fair to deserving companies, history proves that they end up being the best (Shiller, 2008). I am sure on this one and I have to admit. Yes, tax cuts have effects with the major one being saving jobs. But the question that keeps coming on my mind is do such firms like mine get fat checks with only those in high ranks getting rich while the person with a low rank in the food chain continues to struggle. This makes me think that the government should take time and look at the financials of companies it plans to bail out for the purposes of looking and seeing whether it might cut the fat. This does not seem to have an impact and effect but as an owner of my firm, I k now well the effects that imposing tax cuts on all household goods can have. This in short is bailing a company out and the effects start from within where employees can even get an increase in pay (Shiller, 2008). 2 In the past few years, the government has had an important role in "bailing out" certain industries. This is a type of government spending. This government bailout affected my firm directly since the promises that the codes give are to uphold the regulations of businesses, to act with transparent facts, without malice, and with reasonable care that will suffer from any pressure coming from third parties. Business freedom demonstrated to the second party auditors that are independent is what the corporation cherishes (Shiller, 2008). Unless dully authorized, the bailout codes of ethics bring the employees tight together to maintain the corporation’s confidentiality, which is vital. Another promise is ensuring all employees have exceptional quality communication fl ow and regularly to update the government on any financial matter that comes up in the business. It adheres to everything it says and follows it to the letter.In the recent past, economists do not have trust in government bailouts in terms of the nation’s well being. They have been proposing for alternative measures like the profits giving reasons why bailouts are not good enough. Below are their outlined reasons (Shiller, 2008). A bailout leaves out many goods by only counting money transactions. There are many disregarded important parts of the economy. For example, most household tasks like caring for the children and the elderly, cleaning and general home maintenance, preparation of food and voluntary services do not get into account. During the calculations, bailouts zero rates all these activities assuming they do contribute anything to the economy. This alone contributes a lot to distorted policies of the public. In cases where family act gets criticism of bailouts red uction, the denigrations are baseless because it does not reflect the increments in many economies of the household initiated by the act (Shiller, 2008). A bailout takes care of all dealings as positive. Government bailouts

Are the Council of Ministers and the European Commission Essay

Are the Council of Ministers and the European Commission interdependent or competing institutions - Essay Example These institutions are responsible for the formation of public policy after series of arguments and discussions among the members and it is true that they consider the interest of the Union rather than that of member states while making important decisions and therefore assumes a higher degree of independence. The unique institutional structure of the European Union sets it apart from other traditional institutions as the entire member states have agreed to focus more on the national interest. Each of these institutions has a unique role to play in the decision making process by complementing each other. This paper is an attempt to analyse the importance and interdependence of the Council of Ministers and the European Commission. The council of ministers The most prominent among all the institutions of European Union is the Council of Ministers which instigated to draw more attention after the integration of European Community. According to Alex Warleigh, â€Å"the council of minist ers is the collective noun for the member state representatives who meet to take final decision on all EU legislative proposals† (Warleigh, p.26). ... On the other hand there are experts who consider the Council as an obstruction to the political incorporation which always hinder the innovative ideas suggested by the Commission and the Parliament. But the true fact is that the Council protects the people of the EU from profligate European proposals and also controls the powerful politicians from the member states and direct their state oriented discussions towards a shared and expanding policy agenda (Warleigh, p.1). The structure The council of ministers which encompasses one minister from each member states of the EU meets frequently in Brussels or in Luxembourg in order to make legislative decisions. EU nations choose the appropriate minister to represent them in the Council according to the subject under consideration. Each member nation holds the presidency for a period of six months which rotates among them. The Committee of Permanent Representatives which is also known as COREPER and the general secretariat prepare most of t he work to be done by the Council. COREPER consists of officials from different governments of the member states. Decisions of the Council are made on the basis of vote and the population of each state is the factor which determines the weight of its vote (Pearson Education, publishing, 2011). It is comparatively an easy task to identify the institutions of a member state where the legislative and executive powers are easily distinguishable. But in the case of European Union such a distinction is hard to make as the executive powers are shared between the Commission and the Council and the legislative powers between the Council and the Parliament and therefore the Council of Ministers possess both the executive and legislative functions.

Nursing Theory as Framework for Research Coursework

Nursing Theory as Framework for Research - Coursework Example An example of such studies that lack a theoretical framework is that of Bond et al. (2010) that involves a descriptive analysis of articles published a decade ago. Though the study itself seeks to identify the use of theoretical frameworks among articles published in the past five years from 2010, it lacks a theoretical framework to guide its research. A theoretical framework impacts numerous aspects of the study. Simply because a theoretical framework guides a research by offering a reference basis for the observations, definition of ideas, research design, interpretations, a lack of it implies that the study lacks organization. Therefore, this study lacks organization. According to McEwen and Wills (2014), a theoretical framework guides the researcher in interpreting the study results. In this case, Bond et al. (2010) are not guided by any theory in their collection and interpretation of the data results. Additionally, this also implies that the researchers lack a connection with the existing knowledge. This study also lacks an explanation of existing theoretical assumptions as it does not respond to questions on â€Å"how† and â€Å"why† (McEwen & Wills, 2014).

The monetary policies of the united states and other countries Research Paper

The monetary policies of the united states and other countries - Research Paper Example Furthermore, since the US is essentially the largest economy globally, its monetary policies also encompass substantial financial and economic effects locally and international. Monetary policies influence the performance of countries’ economies as indicated through factors such as economic output, employment rates and inflation. In the US, the Federal Reserve controls the country’s monetary policy. The US federal government uses the country’s monetary policy to control the economy. When money supply grows too fast, inflation rate also increases and conversely, when money supply is too low; economic growth also declines rather substantially. The US Federal Reserve uses the country’s monetary policies to establish inflation targets aimed at sustaining steady inflation rates of between 2 and 3 percent. The purpose of the US monetary policy is to dictate the performance of the economy as indicated through employment rates, inflation and other equivalent econo mic factors. Monetary policies work by influencing demand within the economy, particularly with regard to companies and people’s willingness to spend money on products and services (Havrilesky 73). This influence is one of the most positive effects of US monetary policies. Another notable consequence of the US monetary policies is to deterring inflation expectations from spiraling to high magnitudes. This is particularly because inflation expectations are an integral determinant of the prevailing inflation rates. Therefore, monetary policies aim at maintaining long term inflation expectations anchored. Stability in inflation expectations emanates from effective monetary policies. In essence, the populace’s belief that inflation will remain stable over the long term lies in its belief that the Federal Reserve’s monetary policy will effectively deliver stable and low inflation in the long term. In addition, monetary policies affect the national economy, especially with regard to financial markets (McConnell and Brue 303). Whenever the Federal Reserve increases monetary supply and enhances the availability of credit, interest rates, which influence the amount of money borrowers pay for loans, will decrease substantially. The US policy allows the Federal Reserve to regulate interest rates and maintain low rate to encourage businesses to borrow investment capital. Low interest rates also stimulate individuals to borrow money to buy goods such as real estate and automobiles. For instance, in the late 1970s, the US monetary policy provided loan interest rates of 8% and an inflation rate of at least 10%. This led in diminished borrowing as financial institutions reduced their lending. However, monetary policies produce adverse results when money and credit supply grows at a faster rate than production of products and services. This phenomenon pushes prices up and ultimately results in an increased inflation rate. Ineffective monetary policies caus e inflation, which is a serious issue, particularly for most Americans who live on fixed earning. This is because such people’s income remains constant while their capacities to purchase goods and services decreases (Everett 175). When banks anticipate high inflation, they increase interest rate to cushion themselves against losses. When money and credit supply grows rather slowly, interest rates are likely to rise, resulting in decreased spending on investments, as well as conventional, durable

Identify and Discuss the Historical Significance of Five of the Essay

Identify and Discuss the Historical Significance of Five of the following terms - Essay Example The Jacobian Clubs were the most prominent societies responsible for the French Revolution and these groupings sprung up in Paris and other provinces but were associated with the main one that was based in Paris. These clubs were composed of the elite members of the society, who included artisans and tradesmen, who formed debating societies where they aired their political views on current political issues with an aim of carrying out a revolution.2 These members used the clubs to organize forces and plan tactics and were responsible for a number of terror attacks and in carrying out The Revolution members turned the provinces into living nightmares and went to the extent of attacking churches and looting and imprisoning priests. Nelson Mandela was the first South African democratically elected black president after a 20-year anti-apartheid campaign and served as president from 1994 until 1999 and won the Nobel Peace Prize in 1993 jointly with the former president F.W. de Klerk for their efforts in bringing peace to South Africa.3 Mandela had served 27 years in prison for fighting against the former regime and had on several occasions refused to be released conditionally. He had directed a 20 year non-violent crusade against the rà ©gime and its discriminatory rules and in the year 2009, July 18, his birthday, was declared Mandela Day and is celebrated globally to remember him for his legacy and promote global peace. Thomas Peters / Thomas Potters was one of the founders of the Sierre Leone and he along with others recruited African settlers whom they used to colonize Sierra Leone.4 He was born in Nigeria and was to be taken by slave traders who sold him to a Frenchman in North America and later sold to an Englishman, and he fled during the American Revolutionary War. When he was free he decided to petition the British administration where he was able to convince the Royal administration to let him settle in Freetown, Sierra Leone and he

Managing people Essay Example | Topics and Well Written Essays - 3000 words

Managing people - Essay Example Employees of Security24/7, Ltd. are very much aware of their rights and the benefits they stand eligible for, and they know that benefits are crucial to give them some extra support in the tough financial times. However, historical trends of the company show that benefit costs has become a main concern for the employers because the cost of certain benefits even surpasses the wages, like the medical expense coverage. This following section will discuss some very important employee benefits being offered in Security24/7, Ltd. The HRM practice of negotiated benefits offered in the company include those benefits which collective bargaining covers, like healthcare, flexible spending accounts (FSAs), pensions, personal days, paid vacations, holidays, reduced tuition for children under 26 and spouse, and tuition assistance. Security24/7, Ltd. employs group health plans to provide medical care to the employees and their families through insurance or reimbursement. The company also pays for health insurance premiums. Health insurance premiums make health insurance an employee welfare benefit, maintained by the employer or the union. The company implements Employee Retirement Income Security Act (ERISA) that covers most of the private sector health care plans, and provides medical protection to its employees and beneficiaries. The individuals who are assigned to manage these plans are required to meet certain standards or the code of conduct that is specified by the law. ERISA is administered and enforced by The Department of Labors Employee Benefits Security Administration (EBSA), which provides information on health plans for the employees, and also compliance assistance information for the employers. Retirement benefits are negotiated benefits which are actually employee defined contribution plans. Pensions are the greatest employee benefit for the retirees of

The Strategic Management Process Essay Example for Free

The Strategic Management Process Essay Introduction Strategic management process can be defined as â€Å"a managerial process that involves matching organizational capabilities to market opportunities† (Stevens, Sherwood, Dunn, Loudon, 2006, p. 15). The process can be either done on a corporate level involving whole companies or divisions or at an individual level involving a single product or service. First, the company’s strategic division analyzes the opportunities in the market and then matches the company’s resources to these opportunities. The major decisions taken by the strategic managers are whether a company is ready to take advantage of the opportunities in the market place, and set a broad plan to achieve it. To ensure that the strategic planning in a company is successful, the top management and line managers need to be closely involved in the process, and not just the strategic planners who facilitate the process. This paper discusses the strategic planning process in general as it applies to a company. The various elements of the process are analyzed first, in addition to the roles of the various managers in the process in the literature review section. The practical aspect of planning, the issues that can arise in various situations are covered next in the analysis. The problems arising from incorrect or incomplete planning process are also discussed in this section. The explosive rate of globalization has affected the strategic management process in a big way, and so has the computerization of business due to the advent of Internet. The affects of these changes on the strategic management process are discussed in the subsequent section. Finally a summary of the paper is given which highlights the main points of the discussion in the previous sections. Strategic Management Process Strategy defined by Armstrong (cited in McCourt, Eldridge, 2003, p. 25), is â€Å"a statement of what the organization wants to become, where it wants to go and, broadly how it means to get there†. Mc Court and Eldridge have also described strategic management as a simple process, and have given the following figure to mention the various components associated with it. Fig: 1 Strategist Management Process (McCourt, Eldridge, 2003, p. 25) According to the figure given above, the strategic management process begins with a mission, which is essentially the intention of a company’s existence and its purpose in general. Companies usually have a well-defined mission statement towards this purpose. The next element i.e. objectives define a company’s specific targets under the scope of the mission. The objectives are usually a set of statements that define the targets of the company. While mission is generic, objectives are specific and in many cases even quantified. The next element of the strategic management process is strategy, which is the broad plan or approach followed to achieve the objectives. The strategy merely defines the role of various departments or level of managers; it is not specific and acts merely as a guideline. Finally the implementation can be a tactical plan or exact roles and responsibilities along with set target dates for achieving a particular objective. Strategic management process hence adds strategic planning and implementation by adding ongoing attention to budgeting, to performance measurement, management and evaluation, and to feedback relationships among these elements (Hutzschenreuter, Kleindienst, 2006, p. 678). Poster and Streib (cited in Peters, Pierre, 2003, p. 40) present a framework for thinking about strategic management as a process. Their framework incorporates seven elements: values, mission and vision; strategic planning; results-oriented budgeting; performance management; strategic measurement; assessment of the internal and external environment; and feedbacks relationships among these elements. The first element in their framework comprises of values, mission and vision which are seen as a central organizing force for the strategic management process. The next stage i.e. strategic planning can be used to help the organizations get their values, mission and vision and to develop strategic initiatives to realize in practice. Result-oriented budgeting helps to organize the resources needed to fulfill the initiatives. Performance management involves strategies and mechanisms for assigning the responsibility for strategic initiatives to specific units and individuals and holding them accountable for results. Strategic measurement involves identification and tracking of valid measures of the organization’s attempts as it to achieve its strategic objectives. The next element as the name suggests analyzes the various pertinent factors in the internal and external environment of the organization, and their corresponding effects on the environment. Finally the element of feedback from the client helps in assessing the process of effective learning, adaptation and leadership (Peters, Pierre, 2003, p. 40). The strategic management process is a complex one and as suggested by Hutzschenreuter, Kleindienst, (2006, p. 677), it is also shaped by the environmental and organizational context. Business strategy development was due to a purely practical requirement’s perspective Post the world war in 1950s, the world for the first time became aware of the business opportunities that existed by considering rest of the world as markets, rather than production places. This brought about a very complex business structure, which became even more complex to manage financially. Thus formal business strategies were first built in 1970s to focus on planned diversification of companies. Hence, corporate planning, which was the norm of the business units till then, shifted to business strategy (Farjoun, 2001, p. 580). Strategy is essentially a deliberate search for a plan of action which will bring competitive advantage and compound it. Any company begins making its strategy by making an analysis of where it is presently, and what resources it has. The next is an analysis of the competition of the company in present market as well as the market where it wishes to expand. The competition in the new market gives an idea about the present competitive advantages of the company. The new markets are as a result of careful analysis of the places where the company would most increase the scope of its advantage.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The theories of building strategy started to emerge soon. However, even in the present day there is no clear cut path for the formulation of strategy especially concerning long-term business development, new products, technologies or investments, because of the ever changing business environment at an ever increasing pace. Theorists have divided strategy itself into three: corporate business and functional strategies. Corporate strategy gives the macro level decisions which companies need to take such as investment in diversification, vertical integration, acquisitions, and new ventures. The allocation of resources to different business units of the organization and divestments are also covered by this strategy. Business strategy is concerned with how the firm competes within a particular industry or market. That is to say the decision of how a company should compete in the market is answered by this strategy. Functional strategies are the elaboration and implementation of business strategies through individual functions such as production, RD, marketing, human resources, and finance. When the concept of strategy emerged, it was an implicit understanding that the senior managers of an organization are able to objectively appraise the enterprise and its environment and formulate a strategy that maximizes the company’s chances of success in an uncertain future. However, all the theories of strategic management agree on one thing that the formulation and implementation of strategy cannot be separated. A well-formulated strategy must take into account the way it would be implemented and through this implementation the strategy is continuously refined and formulated. Types of planning involved in a Strategic Management Process – The strategic management process is an amalgamation of different elements. Planning in any form is one of the most important process elements. Planning involves an assessment of an organizations mission and goals in relation to its external environment and internal capabilities, projected into the future by several years.   Organizations go in for strategic planning when they perceive that they are sensitive to external environment, which by nature is volatile (Alkhafaji, 2003, p. 5). Planning focuses on understanding changing stakeholder needs, technological developments, competitive position, and competitor initiatives. Any decisions taken after considering the long term strategic plan are more realistic and goal-oriented. There are different types of planning involved in a strategic management process which will be discussed in this section: Strategic Planning Strategic planning is the process of developing and analyzing the organizations mission, overall goals, general strategies, and allocating resources. It usually has long-term goal, vision and mission. These are usually prepared by top level management of the company. These strategies are usually prepared for a period of 5 or more years. This time frame, however, is arbitrary and is dependent on the long-range planning capabilities of the company’s executives, based on its resources. It lays a lot of emphasis on the future implications of a present decision, and hence aids in the organization’s adaptation in an ever-changing environment. The factors which influence the strategic planning are external environment, market dynamics over a period of time, financial, operational and process stability of the company. The SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis of the company is critically important in the formulation of its strategic plan. After this strategic goals are made to show a path of reaching the vision of the company with its present capabilities (ORegan, Ghobadian, . 2007, p. 12). Tactical Planning Tactical planning is the continuous process of translation of broad and many a times ambiguous strategic plans, into specific goals and plans that are aimed at a specific division of the organization. Hence, it can be said that tactical planning deals with the implementation part of the planning process. It has a shorter time frame than a strategic plane, usually 1-2 years, and is also narrower in scope. The factors influencing tactical planning are the annual budget, project reviews, quality evaluation processes, target turnovers, market dynamics, government policies, consumer needs, available expertise and finally an evaluation of possible alternative solutions Operational Planning Operational planning is the planning done at the lower levels of the organization. It is used to detail specific processes and procedures used in a department. It primarily focuses on the daily routine tasks and is usually made for a short period of time. Operational plan is generally derived from a tactical plan to achieve one or more operational goals. The factors influencing an operational plan hence are the intra-departmental structure of an organization and efficiency of the manager. Another factor is the time-period for which an operational plan is made. Since the operational goal is either a single-time or a repeatable goal, some factors which effect the planning are the policies, reward system, and even the goal itself or the lack of a specific goal. To take care of such factors, the goal setting and planning should be collaborative (ORegan, Ghobadian, . 2007, p. 15).. Contingency Planning – According to Macneil (cited in Mayer and Berkowitz, 2008, p. 151) contingency relationships ensure some within relationship flexibility thus facilitating adjustments when conditions change Regardless of how carefully strategies are formulated, implemented and evaluated, unforeseen events always can make a strategy obsolete. To counter this, organizations should develop contingency plans, as a part of their strategic planning process, in the evaluation stage. Only high-priority planning areas require contingency planning, which should be as simple as possible. The prime factor influencing contingency planning is the degree of volatility of the present environment. That is to say, the frequency and magnitude of occurrence of unforeseen events like strikes, boycotts natural disasters, government instability and even at times arrival of foreign competitors etc. In case if company’s strategic plan is to expand, the above factors apply to the newer environment in question. Also, the possible affect of the present market environmental fluctuations should be taken into consideration while making the contingency plan for newer markets (Sadgrove, 2005, p. 258).                            Strategic Planning Organizations involve in the process of strategic planning in order to respond to the challenges and opportunities presented by marketplace. Strategic planning can be defined as â€Å"a process that describes the direction an organization will pursue within its chosen environment and guides the allocation of resources and efforts† (Peter, Donnelly, 2002, pp. 5). Strategic planning includes all the activities that lead to the development of a clear organizational mission, organizational objectives and appropriate strategies to achieve the objectives of the entire organization. In the strategic planning process the organization gathers information about the changing elements of its environment. The output of the strategic planning process is the development of a strategic plan. In the discussion that follows, a case study is used as a means for understanding the elements mentioned above (Short, Ketchen, Palmer, Hult, 2007, p. 150)). This would give a practical demonstration of how a company translates these theoretical principles for use in their case. Strategic Planning Process – Strategic planning process is concerned with long term broad marketing mix decisions and the implications of these decisions. It is designed to ensure a systematic approach to planning. Hence, the strategic marketing planning process must be consistent with circumstances. The strategic marketing planning process occurs at multiple levels of the organizations and hence the plan represents the implementation of the organizational strategy. This follows the guidelines of the overall strategic planning process. The strategic planning process is considered essential when the increasingly hostile and complex environment where companies operate is considered. It is basically a series of logical steps that have to be worked in order to arrive at a marketing plan (Gilligan, Wilson, 2003, pp. 44). An extension of strategic planning process is the Strategic marketing planning process, which is concerned with the development of strategies that are based on the planning team’s assessment of the market and perceptions of managerial expectations and organizational capability. This process is used by the organization to formulate its strategy provided that it is adapted to the organization and its environment. Strategic marketing planning consists of ten steps: Mission, Corporate Objectives, Marketing audit, SWOT analysis, Assumptions, marketing objectives and Strategy, Estimate expected results, Identify alternative plans, Budget and First year detailed implementation program (Baker, 2003, pp. 91).                                           Management’s function in Strategic Planning Strategic planning involves an assessment of an organizations mission and goals in relation to its external environment and internal capabilities, projected into the future by several years.   Organizations go in for strategic planning when they perceive that they are sensitive to external environment, which by nature is volatile (Alkhafaji, 2003, p. 11). Strategic planning focuses on understanding changing stakeholder needs, technological developments, competitive position, and competitor initiatives. Any decisions taken after considering the long term strategic plan are more realistic and goal-oriented. Organizations should consider strategic planning as an essential management function. Any organization wishing to have long-term growth should infuse a culture of competitive focus throughout all the hierarchical levels.   Hence, every employee in the company, especially the managers compete, with their company’s competitors in their work (ORegan, Ghobadian, . 2007, p. 17).. Roles of various managers in the Strategic Management Process – Planning is a basic function of management which determines the objectives and the course of action required to attain them. Planning is done at every level of management, hence is done by all managers from the highest to lowest in the management hierarchy. Managers in an organization have a primary role in strategy-implementation. Managers use strategic planning as a management function to allocate resources to programmed activities, which is calculated to achieve a set of goals in a dynamic and competitive environment.   Management changes are even more extensive when the strategies to be implemented move a firm into a major new direction. Hence, their inputs while the formulation of a strategic plan becomes extremely important (ORegan, Ghobadian, . 2007, p. 18).. Equally important is the involvement of strategists in the strategy-implementation activities. There are four main types of planning – corporate, strategic, management and operations, each of which is carried out at different management levels, covers a different time-span and has varying levels of short and long-term impact on the working of the organization (Boone, Kurtz, P. 271). Needless to say, the planning activities of various managers at different levels are different. Senior management usually does the corporate and strategic planning activities. Strategic planning details the goals and objectives of the company while corporate planning decides how the organization would operate to achieve these objectives and goals. The resource allocation for achieving the goals is also done during the corporate and strategic planning stage. Strategic planning is usually long term covering about three to five years (Dixon, 2003, p. 29, 30). The plan charts out the path of the organization during the period and the various activities which need to be done for achieving the objectives set. An example of strategic planning is of General Motors and Dell’s business strategy related to their spare parts given in the book by Muckstadt (2005, p. 2) . In Dell’s case, there is no need to maintain an exhaustive inventory regarding its old products sales parts, while this is an important element of General Motor’s strategy. Hence, GM as a part of its business strategy maintains a huge storage space where hundreds of thousands of storage parts are stocked. The location of the storage space must also take into consideration its supply chain partners like either individual car dealers as well as its suppliers, when designing such a strategy. Change is the most certain part in any environment, and business and markets are guided by various factors, which might necessitate a change in strategy. It is the job to the senior managers to ensure that a new strategy ensures sufficient plans for the acceptance of the strategy by people working in the various levels of the organizations. An example is given in the book by Murray and Richardson (2002, p.5) about the Canadian industrial supply company Acklands-Grainger which in less than a span of twelve months moved from a 4% growth rate to a 20% growth rate and higher profitability. The authors mention in their book (p. 24), that within 100 days of launch of a new strategic plan for the company several major steps like a new communications initiative to involve more people in the decision making process, were successfully implemented. This ensured that the employees of the company were by and large impressed by the strategy and were enthusiastic to take part in the strategy. Many people working in the frontline were however skeptical about the strategic change within the company, as they could see little change in their own work areas. To ensure the front-line people, the Strategy team committed to five deliverables at the end of 200 days of the launch of the new strategy to assure its front-line employees that things were really changing. These included specific changes to branch operations, improvements in logistics and improvement in training. Although the delivery of the five tasks was not perfect the outcomes ensured that the employees felt that there was a definite change and had specific development points which they could identify with and discuss. The example above, details how a change in strategy was successfully implemented within a company. It highlights an important point that while a strategy change is being developed by a company, the strategy must be flexible and should include detailed plan for implementation to being about the change from the point of view of the line-employees (Parnell, Lester, 2003, p. 295). Management planning is done by middle level management who divide the task into different smaller units and ensure that proper execution of the task would take place by making a effective integration plan. This planning is of a comparatively shorter time span than the strategic planning and usually lasts for a single project or a set of similar projects. They also cover only a partial division of the organization. Operational planning is done by the line managers and is of a shorter time span than the management planning. It usually refers to the day-to-day planning addressing the specific time-tables, task and measurable targets that managers in each different unit of the project make and maintain to ensure that the task get done in-time. Hence, operational planning deals with developing and implementing tactics in specific functional areas. The managers allocate time and teams consisting of a specific number of employees to perform a particular task (Dixon, 2003, p. 31). Strategic goals are achieved by setting and achieving tactical objectives. Hence, it is very important that the plans at different levels complement each other. Managers at different levels must have proper and effective communications, such that goals at every level are understood as well as the objectives behind these goals. Senior and higher-levels of management must ensure that there information flow s efficient and the line-managers are aware and clear about their roles and responsibilities. The job of the middle managers is to ensure that the objectives are understood by the line managers and proper goals are set to achieve these objectives (Nadkarni, Narayanan, 2007, p. 263). It is often seen that many times the organizations fail to achieve their objectives, despite the fact that the senior management is clear about their vision and strategies and line-management is skilled at their work. The problem in this case lies with the middle management who fail to translate the objectives into tactical goals for the various functional groups (Boone, Kurtz, P. 271). Following figure shows a sample organization chart which gives the level of managers and the strategic business decisions they can take. Fig: 2 Strategic Decisions taken by various Managers (Grant, 2002, p. 24)                      Strategic Leadership and Decision Making As an organization prepares itself for future success, by using its strategic planning, no other internal factor is more critical than the strategy formulation and leadership. For a successful strategy formulation and implementation leadership is a necessary factor. The term leadership encompasses visioning, developing, motivating communicating and involving. The book by Scott (2005) defines the terms as explained by Peter Drucker, who gives three essentials of leadership as â€Å"Defining, communicating, and establishing a sense of mission in a way that is understandable to others; Treating leadership as a responsibility rather than a rank and; Earning and maintaining the trust of others† (p. 108, 109). The book further gives that opinion of Drucker on leadership, who says that it should be based on being ethical and consistent in word and deed rather than being clever and deceiving. Strategic leadership is a newly developed type of leadership and is needed to initiate and direct the strategic management process. Strategic leadership covers five aspects of leadership: technical leadership, human leadership, political leadership, cultural leadership and educational leadership. These aspects contribute directly to environmental analysis, planning and structuring, staffing and directing, implementing, monitoring and evaluating the strategic management process. Strategic leadership can be defined as encapsulating entrepreneurial processes (Slater, Olson, Hult, 2006, p. 1225) Strategic leadership is also seen as a concerned with strategy development and change. Essentially strategic leadership refers to the top management team, and strategic theory has evolved from upper echelons theory. Strategic leadership concerns developing the organization’s vision, mission, strategies, and culture and monitoring progress and changes in the business environment to ensure that strategies are focused. Strategic leadership concerns monitoring how well organizational culture, including values is supporting the organization’s vision and mission (Brower, Fioi, Emrich, 2007, p. 70). It also concerns with the monitoring of human capital and organizational structure and systems. Strategic leaders posses the following capabilities which is the actual difference between managers and leaders also. These are given as below: Visionary/ Strategic – An abstract vision of where the firm might want to be in the future is of limited use without its translation into an executable competitive strategy. Hence, strategic leaders must have both the vision and the means to achieve the vision. Systems Thinker – Strategic leaders create organizational and operating practices that carefully coordinate the interactions and dependencies between different operating areas. Hence, a characteristic of strategic leader is that they can see the connections between individual parts of the firm and its competitive strategy, but do not concern themselves with individual practices or procedures. Effective Motivator/Communicator/Teacher – Strategic leaders can see the firm’s strategy and can see the requisites to deliver the strategy, in addition to being equipped to build the hiring, compensation, and coaching systems in accord with the firm’s competitive strategy. Obsessive – Strategic leadership is not a part-time activity and hence strategic leaders need to be obsessed with the execution of the strategy in each act within the firm. Strategic leaders are driven to align all the activities in the firm with the delivery of the value proposition. (Brower, Fioi, Emrich, 2007, p. 69, 70) It is clear from the above discourse that strategic leaders, more than anything else, need to believe in their strategy. For the success of a strategy, strategic leaders should be prepared to endure short-terms costs and dips in performance, to facilitate making investments for future. These tradeoffs are managed with a commitment to the strategy and there is no major change between different high and low periods, since the focus is on the long-term direction. Despite the fact that strategic leadership is generally concerned with the upper echelons of management, the qualities themselves are not limited to the top management group. This fact must be understood by the senior managers of the firm so as to create an environment, to make sure that these qualities are recognized, expressed and nurtured within all the levels of the organization (Hitt, Ireland, Camp, Sexton, 2001, p. 482) Strategic leadership and decision making – Management is usually concerned with the following functions in some or the other way: Planning, organizing, staffing, and decision making (Parnell, Lester, 2003, p. 298). Decision making is the heart of management. Any function performed by managers at any level of management involves decision making. Managers at all times are faced with a various alternate solutions of a problem, and their task is to choose the most optimum solution from amongst these and implement it. Decision making process consist of: identifying the problem, analyzing the problem, developing alternate solutions, comparing alternate solutions, choosing the best solution and implementing and finally verifying the solution. During the decision making process is where a manager continuously tries to achieve a state of stability by implementing a course of action, while all the time dealing with the possible consequences of his actions. A key competency in strategic leadership is decision making about whether and when to act (Elbanna, Child, 2007, p. 435) Consistency of decision making in accord with the firm’s value proposition is important for a strategic leader. It allows the members of the organization to see the connection between their daily responsibility and the delivery of the firm’s strategy. Strategic leadership hence involves building a coherent set of original beliefs and practices that are aligned with the requirements of the seller’s value proposition. All have responsibilities for their own beliefs and for the performance of their coworkers, and hence strategic leadership is needed for all the levels of the firm. Effects of business environmental changes on strategy   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Theorists and business strategists consider the most important recent trends in the macro environment as the forces the new economy. The new economic era started at the advent of the 21st century, but the factors which led to the change had already been felt and observed at least two decades back. The new information and communication technologies restructured the global markets, and whole industry sectors, by challenging the conventional economic thinking and hence redefining how business is done. The New Economy is almost a revolution in the way business works, economic wealth is generated, so cities are organized and individual exist within them (Grant ¸2003, p. 504). The figure below shows the key features of new economic environment that impact on business strategy, as compared to the key features of old economic environment. Old Economy New Economy Key industries Oil, Mining, Steel, Vehicles, Railways, Shipping Computers and Software, biotechnology, personal and financial services, Entertainment Key Resources Energy, Labor Information Knowledge and Talent Technology Power Trains, Machine Tools Information Technology Product Life Cycles Measured in decades Measured in Years or months Trade Patterns International Global Working Day 8 hours 24 Hours Communication Media Letters, Telephone, Fax Mobile devices, E-mail, Internet and Intranet Organization Structures Centralized Hierarchical, Functional Devolved, Flat, Functional Workforce Characteristics Mainly male semi-skilled or skilled No gender bias, high proportion of graduates    Fig -3 Key features of old and new business environments (Sadler, Ryall, Craig, 2003, p. 29) Key elements that have effected the environment to bring these changes are: Globalization: The globalization as we know it has happened in two stages. The first stage was post world war, when other countries came to be seen as new markets rather than colonial acquisitions. This brought about a change in the business organization. The second phase was in the late 1980s, when the internet emerged to be a n option where people could display their wares or even sell them, for instance in case of paid music downloads. Presently globalization is not only an advantage; it has become a must for any company wishing to enter the business domain (Pitt, 2005, p. 316). Small-World with reduced distances – The world as we know it is getting smaller everyday with the emergence of new technologies in wireless communication. People can now communicate visually and effectively with anyone across anywhere in the world at the same time. This has brought about a lot of new requirements which were heretofore quite unknown Knowledge Economy – A bye-product of the shrinking world is the awareness people have about other cultures and economic conditions in various parts of the world. The awareness of the new technologies is also increasing among people at a rapid pace, and is no longer confined within a select few number of people. Impact of new technology – People in the present day world are so used to rapid changes in technology that they almost expect smarter, cheaper and better performance devices almost every day. Hence, the importance of RD among the various industries has increased and is no longer an option but a necessity. (Pitt, McAulay, Sims, 2002, p. 159, 160) In the light of these discontinuous, large-scale changes facing the world, organizations might be required to undergo major, strategic reorientations.   These reorientations may involve changes in products, services, markets, organizational structure and human resources. A change can be viewed either a technical problem, political problem, or a cultural problem. However, strategic change views the problem as a varied amalgamation of all the three problems. Strategic change refers to the non-routine, non-incremental, and discontinuous change that alters the overall orientation of the organization, and/or the components of the organization. (Hà ¥konsson, Obei, Burton, 2008, p. 65)   However, the exact boundary between a strategic and a non-strategic change is blurred. Sometimes it depends on the magnitude of change and at other times the time frame of the impact of the change is in question. Conclusion The paper gave a general discourse on strategic management processes. The process consists of various elements, and each of which is equally important to the process. The planning stage is the most critical out of these processes, which was described in the next section along with different types of planning. The nature of strategic planning was discussed in detail which also covered the strategic planning process. The subsequent section discoursed upon the role of various strategic managers on strategy building. After this the discussion shifted to strategic leadership and the power of decision making. Finally the effects of business environmental changes on strategy making was discussed, which gave the critical factors involved in strategic decision making in the present day world. A comparison of this was done with the economy just a decade or two past, and can be seen that there are few if any common factors between the two economies. Hence, the strategy making process has undergone a massive change in the recent times. Till then the strategy formulation process was an evolutionary one, with one element being added over another. But the present day world calls for revolutionary strategies since the success factors too have undergone changes. The paper hence gives an idea about the direction companies of the present day world need to take in order to be successful. While the topics covered are generic, and do not give a situation-level analysis for the choice of a strategy, there is enough information here to help strategic theorists understand the dynamics of the business environment and act accordingly.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   References Journal Articles Brower HH, Fioi CM, Emrich CC, (2007), â€Å"The language of Leaders†, Journal of Leadership Studies, Pages 67-80, Wiley Periodicals Inc, 20th November 2007, Volume 1, Issue 3, DOI 10.1002/jls.20026 Elbanna S, Child J, (2007), â€Å"Influence of Strategic Decision Effectiveness: Development and Test of an Integrative Model†, Strategic Management Journal, Strat. Mgmt. 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Making Emotions Rational†, Journal of Leadership Studies, Pages 62-73, Wiley Periodicals Inc, 28th February 2008, Volume1 Issue 4, DOI 10.1002/jls.20033 Hitt MA, Ireland RD, Camp SM, Sexton DL, (2001), â€Å"Strategic entrepreneurship: entrepreneurial strategies for wealth creation†, Strategic Management Journal, Volume 22, Issue 6-7, John Wiley Sons, Ltd., Pages, 479-491, 6th June 2001, DOI 10.1002/smj.196 Hutzschenreuter T, Kleindienst I, (2006), â€Å"Strategy-Process Research: What Have We Learned and What is Still to be Explored†, Journal of Management 2006; 32; 673, DOI: 10.1177/0149206306291485, SAGE Publishing Mayer KJ, Berkowitz J, (2008), â€Å"The Influence of Inertia on Contract Design:   Ã‚   Contingency Planning in Information Technology Service Contracts†, Managerial   Ã‚   Decision and Economics, Wiley InterScience, DO: 10/1002/m.d.e. 1390 Nadkarni S, Narayanan V K, (2007), â€Å"Strategic schemas, strategic flexibility, and firm performance: the moderating role of industry clockspeed†, Strategic Management Journal, Volume 28, Issue 2, John Wiley Sons, Ltd., Pages 240-270, 30th January 2007, DOI 10.1002/smj.576 ORegan N, Ghobadian A, (2007), â€Å"Formal strategic planning: annual raindance or wheel of success?†, Strategic Change, Volume 16, Issue 1-2, John Wiley Sons, Ltd., Pages 11-22, 2nd April 2007, DOI 10.1002/jsc.777 Parnell JA, Lester DL, (2003), â€Å"Towards a philosophy of strategy: reassessing five   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   critical dilemmas in strategy formulation and change†, Strategic Change, Volume 12, Issue 4, John Wiley Sons, Ltd., Pages 291-303, 8th October 2003, DOI 10.1002/jsc.639 Pitt M, (2005), â€Å"A dynamic model of strategic change in growth-oriented firms â€Å",   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Strategic Change†, Volume 14, Issue 6, John Wiley Sons, Ltd., Pages 307-326, 31st October 2005, DOI 10.1002/jsc.721 Pitt M, McAulay L, Sims D, (2002), â€Å"Promoting strategic change: playmaker roles in Organizational agenda formation†, John Wiley Sons, Ltd., 7th May 2002, Pages 155-172, Volume 11 Issue 3, DOI 10.1002/jsc.586 Short JC, Ketchen DJ, Palmer TB, Hult GTM, (2007), â€Å"Firm, strategic group, and   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   industry influences on performance†, Strategic Management Journal, Volume 28, Issue 2, John Wiley Sons, Ltd., Pages 147-167, 20th December 2006, DOI: 10.1002/smj.574 Slater SF, Olson EM, Hult GTM, (2006), â€Å"The moderating influence of strategic orientation on the strategy formation capability-performance relationship†, Strategic Management Journal, Volume 27, Issue 12, John Wiley Sons, Ltd., Pages 1221-1231, 30th October 2006, DOI 10.1002/smj.569 Reference Books Alkhafaji AF, (2003), â€Å"Strategic Management: Formulation, Implementation and Control in a Dynamic Environment†, Published: Haworth Press, New York Baker, MJ, (2003), â€Å"The Marketing Book†, Published: Butterworth Heinemann,   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Massachusetts Boone LE, Kurtz DL, (2006), â€Å"Contemporary Business 2006†, Published: Thomson   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Southwestern, Ohio Dixon R, (2003), â€Å"The Management Task†, 3rd Edition, Published, Butterworth- Hienemann, Massachussetts Gilligan C, Wilson RMS, (2003), â€Å"Strategic Marketing Planning†, Published:   Ã‚  Ã‚   Butterworth Heinemann, Massachusetts Grant RM, (2002), â€Å"Contemporary Strategy Analysis: Concepts, Techniques,   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Applications’, Published: Blackwell Publishing, Massachusetts Muckstadt JA, (2005), â€Å"Analysis and Algorithms for Service Parts Supply Chain†, Published: Springer, New York McCourt W, Eldridge D, (2003), â€Å"Global Human Resource Management: Managing   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   People in Developing and Transitional Countries†, Published: Edward Elgar Publishing, Massachusetts Murray EJ, Richardson PR, (2002), â€Å"Fast Forward Organizational Change in 100 Days†, Published: Oxford University Press, New York Peters BG, Pierre J, (2003), Handbook of Public Administration, Published: SAGE Peter JP, Donnelly JH, (2002), â€Å"A Preface to Marketing Management†, 9th Edition,   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Published: McGraw-Hill Professional, New York Sadler P, Ryall MJ, raig JC, (2003), †Strategic Management†, 2nd Edition, Published:   Ã‚  Ã‚   Kogan Page, London Sadgrove K, (2005), â€Å"The Complete Guide to Business Risk Management†, 2nd Edition, Publishing: Gower Publishing Ltd., Burlington Stevens RE, Sherwood PK, Dunn JP, Loudon DL, (2006), â€Å"Market Opportunity Analysis:   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Text and Cases†, Published: Haworth Press, New York

Women’s liberation movement of the 1960’s Essay Example for Free

Women’s liberation movement of the 1960’s Essay Imagine what the life of a woman was before the 1960’s. The life that she had called her own was beyond far from perfect, and this was just behind closed doors. These ladies were denied of what basic rights they had, they were then trapped in a home that they created not just for themselves, but also for their family, and not to even mention the discrimination that they faced in the workplace. Then, here come the 1960’s in full swing, these women could then have a say in their government, and with all these new changes for the women of this time, they could now receive equal employment opportunities as men, meaning the same wages. This then created brand new routines and they would not have to feel guilty about leaving their children at home. The women’s liberation movement of the 1960’s helped all of these changes to come about through its phases of policies and radical ways of thinking. In fact, just to show some of these radical ways of thinking, there were some extremist women who made a â€Å"Freedom Trash Can† and filled it with representations of the woman who was trapped in the home life. They would throw objects such as these; heels, bras, a girdle, hair curlers, and even magazines such as Cosmo, Playboy, and Ladies’ Home Journal in it. The women who put the Trash Can together planned to set it on fire, but decided not to do so because burning of the contents prohibited by a city law (Echols 150)1. Needless to say, given the numerous obstacles that were put in place to stop the women from changing their status in society, the women’s movement of the 1960’s made significant changes for women in regards to their basic rights, in the home, and in the workplace for the better. †¨ Denied their basic rights in most aspects of society, all the way from political rights to reproductive rights, women in the U.S. have fought vigorously for equality. For example, women fought for their rights not to symbolize â€Å"beauty objects† or â€Å"sex objects.† In 1968, 100 women protested the Miss America Beauty Pageant because it promoted †Å"physical attractiveness and charm as the primary measures of a woman’s worth,† especially the swimsuit portion of the contest (Echols 149)2. Since the presence of the  media displayed beauty as the only way for happiness, the idea that women’s only importance was for their bodies became more widespread. Later, once women recognized that they were worth more than just looks, they took the measures to overcome the media’s hype about women’s bodies. The largest protests staged, the Miss America protest and the Freedom Trash Can protest, helped women claim national attention towards their struggles. Because of the 1960’s Civil Rights Movement that was also going on at the time, the climate seemed just right for women to speak out as well, therefore they received attention too (Echols 153)3. Women also fought for the right to abortion or reproductive rights, as most people called it. In response to the 1960’s abortion effort, women established an underground hospital that was just for abortions, called Jane in Chicago. Following this example, other secret clinics launched up everywhere. In big cities, women’s health clinics, rape-crisis centers and women’s bookstores developed. As a result of the New York Radical Women, a group founded in 1967, a â€Å"women’s community† developed throughout cities and neighborhoods around the nation (Echols 160)4. In these communities women got together to talk about their problems, usually dealing with male chauvinism, and they discussed how to overcome their problems. Probably the largest achievement for women regarding abortion rights came in 1960 when the Food and Drug Administration approved birth control pills and approved them for marketing a year later (National Women’s History Project)5. This proved to be a major step for women in regards to their reproductive rights. Now that women had an abortion option, they were not as tied to the home as they had been. They had the ability to work and go out without having to always feel the burden childbearing or childcare until they were ready. If perhaps a woman made a mistake and became pregnant before she was ready, the opportunity of abortion was always available to her. To conclude, women during the 1960’s fought hard to earn rights that society denied them. Many noteworthy domestic changes for women were accomplished during the 1960’s. For example, childcare became a 1960’s issue. Gwen Diab, an activist and supporter of the women’s struggle during the 1960’s declares, â€Å"Women were hesitant to leave the home before the 1960’s because they felt guilty leaving their children all alone. By the 1960’s, women started to get over the feeling of guilt and left their house more frequently heading off to women’s clubs or meetings†.  Society believed that â€Å"a woman could either be a career woman or she could stay at home and have children. There was no way she could do both† (Sanger 517)6. Society also believed that if a woman were to become pregnant , she would stay in the home, caring for her children, because that is where she belonged. Margaret Sanger, a traditionalist, also concluded that if a woman took the risk of getting pregnant and if she was â€Å"a working woman, should not have more than two children† (Sanger 519)7. â€Å"Childcare was the first step towards breaking down society’s view that the sole responsibility rested with the woman† (The Women’s Movement 419)8. Since the number of workingwomen increased in the 1960’s, men felt reluctant to share housework, but however this did improve and the men have been taking more responsibility for childcare as well. However, domestic issues went far beyond childcare in the ‘60s. For instance, an anonymous woman in Iowa wrote many letters to her sister relating her dealings with her feelings on the issue of domesticity. Many times, she wrote about how she felt as though she was the only woman that said anything in the homeowner’s meetings. Because of her openness, the other women became scared of her and her seeming ly radical ways. â€Å"Therefore, she felt as though she didn’t quite fit in with the other women in her community. One man even felt scared of her because he thought that she was too smart to be a woman. She stated, ‘Nobody expects a woman to talk. It bothers them all, especially the men.† (Gornick, 150)9. This shows how America still belonged to a traditional time where women were expected to stay at home and take care of the home and children. These feelings soon changed with the growing participation of women in their communities. It took time for men to start to think of women as equals, and not just â€Å"the second sex.† Unfortunately, these changes took a long time in coming because women were thought to be feminist militants if they wanted any type of change in society and called communists and man haters if they had anything to do with the liberation movements. Because of these accusations, many housewives were scared to get involved in this movement, but the career women tried to gain their support. Because the career women didn’t really have backing or support for the movement, there were few gains in the early years. It was only when women such as Gloria Steinem, Simone de Beauvoir and Angela Davis got involved, that normal housewives felt that they could make a difference and that their rights were worth fighting for.  As one can see, the 1960s made many advances for women in the area of domestic issues. The last and major area, in which the 1960’s made significant changes for women, was in the workplace. Later, as the economy of America began to expand, women started working for a second family income, although they only made 60% of what men were earning (Echols 152)10. Denied credit by banks before the ‘60’s, women could not receive capital to start their own small businesses because a man always received first priority when it came to funds for starting up a business. Fortunately, after a long struggle, the National Credit Union Administration accepted feminism as a field and let them draw credit. Women even began to have their own professional and labor organizations to keep themselves progressing. During the early stages of the 1960’s, many changes were put in place to help women get to the top. For instance, in 1961 President Kennedy created the President’s Commission on the Status of Women, chaired by Eleanor Roosevelt. Eleanor had played a key role in establishing the Universal Declaration of Human Rights in 1948 and shed defended both womens economic opportunity and womens traditional role in the family, so she could be expected to have the respect of those on both sides of the protective legislation issue. Eleanor chaired the commission from its beginning through her death in 1962. The twenty members of the Presidents Commission on the Status of Women included both male and female Congressional representatives and Senators; Senator Maurine B. Neuberger of Oregon and Representative Jessica M. Weis of New York, several cabinet-level officers which included the Attorney General, the Presidents brother Robert F. Kennedy, and other women and men who were respected civic, labor, educational, and religious leaders. There was some ethnic diversity; among the members were Dorothy Height of the National Council of Negro Women and the Young Womens Christian Association, Viola H. Hymes of the National Counci l of Jewish Women. Fifty other parallel state commissions were eventually established. Also, the Equal Pay Act, which was planned in the ‘40’s, was finally acknowledged that men and women who worked the same job should have equal pay. Another major achievement for women in regards to the work place was in 1964, when the â€Å"Title VII of the Civil Rights Act† barred employment discrimination by private employers, employment agencies and  unions based on race, sex and other grounds. To investigate complaints and enforce penalties, it established the Equal Employment Opportunity Commission, which received 50,000 complaints of gender discrimination in its first five years† (National Women’s History Project)11. By 1965, President Johnson’s Executive Order 11246 ordered â€Å"federal agencies and federal contractors to take ‘affirmative action’ in overcoming employment discrimination† (National Women’s History Project)12. A major setback that women faced in the 1960’s was that as men realized what women were trying to do, some did as much as they could to keep fully qualified women out of their workplaces. In 1969, a Supreme Court Ruling changed all this. In the case of Bowe vs. Colgate-Palmolive, the Supreme Court ruled â€Å"women meeting the physical requirements could work in many jobs that had been for men only† (National Women’s History Project)13. As one can see, the 1960’s made many positive changes for women in regards to the workplace. To conclude the women’s liberation movement, the ‘60’s made many significant changes for women in regards to their basic rights, domestic issues, and their abilities to get fair job opportunities in the workplace. Although a woman still makes only about .70 cents for every dollar a man makes, they are still today the main caretakers at home, and they are still struggling for abortion rights. Women have come a lon g way from the traditional attitudes of the old, â€Å"modern† America, the radical 1960’s provided enough background and support for everything that the women had accomplished. Bibliography: Echols, Alice. Nothing Distant About It. New York: Harper Row, 1994. Gornick, Vivian. Essays In Feminism. New York: Harper Row, 1977 â€Å"National Women’s History Project.† [Online] Available http://www.legacy98.com, Oct. 11th, 2014. Sanger, Margret. Women’s activist on birth control, a sex edu., and a nurse

Depreciation And Provision For Depreciation Accounting Essay

Depreciation And Provision For Depreciation Accounting Essay Depreciation is the cost allocated as expense which has the effects of reducing the value of a fixed asset during the period it is used by a business. It is a non-cash expense and need to be charged to the Profit Loss account yearly which lowers the companys profit which increasing free cash flow. Fixed assets are long life. They are bought to assist in the operation of business but not with the main purpose of resale. They are in fact revenue-generating assets as they help to gain profit depending on their useful lives. Depreciable items include machinery, vehicles, buildings and fixtures There are reasons why assets may depreciate: Obsolescence: Assets are replaced because new and more efficient technology has been developed. Depletion or Exhaustion: The values of assets such as mines, quarries and oil wells diminish due to the extraction of raw materials from them. Passage of Time: Assets which have limited period of life in terms of years. The term amortization instead of depreciation is often used to refer this. Physical Deterioration: Assets become worn out after used. It becomes less cost- effective to perform and spend more to maintain and repair. The two most common methods used to calculate depreciation expense are: Straight line or Fixed Installment Method Reducing Balance or Diminishing Balance Method Straight Line Method An equal amount of depreciation over the estimated useful life of an asset is allocated for each year. Example : Original Cost : $30000 Estimated Residual Value : $6000 Estimated Useful Life : 6 Years Annual Depreciation = Original Cost Residual Value Estimated Useful Life = $ 30000 $6000 6 years = $4000 Reducing Balance Method Depreciation is calculated as a fixed percentage based on the book value of an asset at the beginning of the accounting year but not the cost of the asset. Example : Original Cost : $20000 Estimated Useful Life : 4 Years Rate of Depreciation : 20% per annum on the reducing balance Depreciation = Rate of Depreciation x Book Value at the Beginning of the Accounting Year Calculation $ Cost 20000 Year 1 (20% X 20000) (4000) 16000 Year 2 (20% X 15000) (3200) 12800 Year 3 (20% X 12800) (2560) 10240 Year 4 (20% X 10240) (2048) Net book value at end of Year 4 8192 Provision for Depreciation Provision for depreciation records accumulated depreciation. It is an asset contra account, hence a credit balance as shown as a deduction from the related fixed asset in the Balance Sheet. The balance of the provision for depreciation increases with time and the book value of the fixed asset decreases with time. Provision for  depreciation  account is the liability of business. By making provision for depreciation account, companys balance sheet will reflect the current value of fixed assets. When asset is sold, it accumulated provision for depreciation will be transfer from the credit side of provision for depreciation account. Then, we will compare it with the sale value of asset. If sale value of asset is more than the current book value of asset after adjusting from provision for depreciation, it will be profit on sale of asset. Why do business, companies, etc. include depreciation expenses and its provision in their financial statements? Reasons: To match the earning revenue The very first reason is to match the earning revenue. Depreciation is directly related to the matching concept. Matching concept is a concept that matches the expenses with related revenues. Under the matching concept, in a particular accounting period that the expenses are the cost of the assets used to earn the revenue, if there are no expenses there will be no revenues. Revenues cant generate without expenses. Therefore, when the expenses are matched with the revenues generated in the same period, the results will be the net profit or loss for that period. Example, consider ABC Woodworks Company, a woodworking business that purchases its own custom  woodworking machinery.   When ABC Woodworks Company purchases a new custom piece of machinery, this new machine is durable enough to last for several years.   In accounting terms, this means that the equipment is in use over several reporting  periods, not just the one in which the machine was purchased. Technological obsolescence Besides that, the purpose of depreciate the assets is to because of the technological obsolescence. Technological obsolescence generally occurs when a new product has been created to replace the old version. When a machine has ends its useful life, the business will need to buy another new machine to continue in order to produce goods. For an example, if the technology has been obsolete, the value of the revenue in the market will be very low. In that moment, the business will write off ( i.e. fully depreciated) the technology and the needs to buy a new and advance technology arise. Wear and Tear Next, the third reason of depreciation is wear and tear. What is wear and tear? It means that the asset has physically degenerated due to wear and tear in used. The more we used the assets the greater the wear and tear would be. There are many reasons of physical deteriorate of an asset example: erosion, accident, friction etc. The wear and tear is general but it is also cause of depreciation. Bad Debts Bad debts are the debts that are uncollectable from the debtors / customers. This usually happens when the firm sells an item on credit to the customers. A debt that is considered that wont be able to collect back by accountant only known as bad debt. For example, the customer has declared bankrupt, and this is where the accountant write the debt as bad debt. The accounting entry for bad debt is: Debit Bad Debt Expense Credit Account Receivable The credit entry reduces the account receivable balance while the debit entry increases the bad debts account which is expenses. Example: Tom Ltd sells goods to Jerry Ltd for $ 1000 on credit. Tom Ltd then found out that Jerry Ltd has been owed few companies, therefore there is a very low possibility that they will pay for the goods. Tom Ltd should write off the receivable from Jerry Ltd for this situation. The double entry will be recorded as: $ $ Debit Bad Debts Expense 1000 Credit Jerry Ltd (Account Receivable) 1000 The accounting solution is to make an allowance for bad debts, making the bad debts against sales when the bad debts accrued. Bad debts are needed to make appropriate adjustments to accounting data. Allowance for Doubtful Debts Doubtful debt is an expense to the business. It is a debt which is unlikely to be able to collect before turn to be bad debt. At the end of accounting period the budget of the business must be made on those amounts of the debtors. If we do not provide this account of doubtful debts, we may not be able to present a good productivity and profits of the business. In most circumstances it is estimated by applying a percentage to its debtors balance, which is likely go bad, during any one accounting period. The percentage is derived from the past experience of trend. In the first accounting period, the doubtful debt estimated will be recorded in full. In the subsequent accounting period, the variance of current and past period will be recorded. To record the increase in the doubtful debt estimation: Debit Profit and Loss (Expenses) Credit Allowance for doubtful debt To record the decrease in the doubtful debt estimation: Debit Allowance for doubtful debt Credit Profit and Loss (Revenue) Example: A business started on 1 January 2010. Its accounting period ended 31 December 2010. The total amount of debtors at the end of the accounting period was $30,000. It was estimated that 2% of the debtors would eventually go bad due to certain reasons but there was no evidence whether they were bankrupt or dead. Allowance for doubtful debt = % x Total debtors (after deducting bad debt) Solution: Allowance for Doubtful debt = 2% x $30,000 = $600 Debit Profit and Loss (Expenses) $600 Credit Allowance for doubtful debt $600 Reasons for Computing Allowance for Doubtful Debts Have a more accurate end of year account Not all debts will be decent at the end of the year account. This may be due to many different causes which consist of your debtor going bankrupt, dying or refuses to pay. These causes could mean that your business does not get all the money that was anticipated. This is why computing allowance for doubtful debts are so important. When you make an estimation based off a certain percentage you are giving your account a much more accurate lookout to go off. This means at the end of the year you will not be in huge astonishment if one of your debtors has been incapable to pay you. This means all your purchases will be more advantageous to the business overall. Will be capable to budget correctly Being capable to budget correctly is an advantage to any business. It will allow you to control and estimate cash flow well and also make more well-versed purchase decisions. When you make allowances for doubtful debts you are having fewer of a turnover at the end of the year. Yet the benefit is that you will not overspend on any stock, advertising or worker costs. Keeping your costs down is helpful to any businesses attainment. This is due to the fact overspending can put your business in a bad spot and avoid you from doing what is correct for your business. This is done to avoid over-stating the assets of the business as  trade debtors  are reported net of doubtful debt. These points are the main twos that you have to deliberate when making allowances. They are not the only two, but the two that can affect how you think about allowances for doubtful debts. Even if doing credit and debit accounting is not your thing it is also completely possible to outsource the entire process. This may charge you a bit of money but at the same time it will do your business a world of good and it is cheap compared to the possible risks. By keeping tracks of the amount of allowance for doubtful debt accounts, it will also mean that the bad debt expense will be stated closer to the time of sales rather than waiting for the account to be determined as uncollectable. Also, when the debtors of the company are paying well, the expense of allowance for doubtful debt may decrease. When this happens, it will be considered as revenue of the company. Thus, allowance for doubtful debt may not always be an expense to the company.