The Future of Management Essay Example For Students

The Future of Management Essay AbstractManagement development strategies of many organizations seemed to converge in the nineties. We thought the world would stay on a standstill when the millennium loomed. The new word on the street was Y2K. So what are the concerns for the current state of management development, and what we expect for the future to hold? This paper will tackle such issue. The Future of ManagementCompanies are geared into increase in efficiency and productivity, better choice of goods, more competitive prices, faster execution and better resource allocation. What was true then, will still hold true in the future, except it just may double up. Obviously, ideas like these contributed to the call for far better business management. MethodChanges in TechnologyThis has the most impact on any businesses out there and even the ones who has not yet embraced the Internet phenomena due to accelerating the speed of change, increasing competition, and the shifting structure of relationships. According to Dessler (2003), the managerial uses of the Internet can in a sense, get a free ride on the Internet, they can substantially reduce their communications costs by building their management systems around the Internet. Companies who see the Internet for all its glory will not hesitate to spend to be in gear with the latest trend because in the long run, it will save them money. Take into consideration the Automatic Call Distribution (ACD). This particular technology is helping organizations of all sizes enhance customer service, improve employee productivity, increase revenue, lower costs and develop new customers and markets. We will write a custom essay on The Future of Management specifically for you for only $16.38 $13.9/page Order now Organizational DevelopmentManagement and the Four Functions of Management. Management will have to keep the competitive edge through employee performance and retention. Management will gear more towards an open-minded sense of management. Management in the future does not mean a complete overhaul of what we are accustomed to now. As Antony Jay said, management is not a new basic institution at all. On the contrary, it is a very ancient art. The new science of management is in fact only a continuation of the old art of government. In this line of thinking, I doubt that management styles and the four functions of management will completely change. It will simply evolve into something more precise more compact. To state an example, Henri Fayols (1841-1925) function of management was five. Overtime, the functions of management evolved and became four. As times change and lifestyles change, the functions of management will change in order to serve the greater good. As was mentioned earlie r, it will change but not dramatically. It will contain the same basic principles as it did before. Management and Leadership. As managers are relearning the rules of engagement in management, you will see more of them being effective leaders. Being a leader does not necessarily mean you are an effective leader. The same philosophy goes with effective management and leadership. Management encompasses the use of the four functions of management. Dessler (2003) said, that the managers job is changing so fast some are not comfortable with just the word manager. To some it implies subordinates. Then he went on to say that managers with the old style are a thing of the past. If a manager is to be stubborn and manage using the old ways, he or she will not get very far. Managers need to realize that employees have more rights and are more vocal now than ever before. They need to embrace effective leadership. Leadership, simply stated, is the process of influencing and directing people towards the accomplishment of a goal or objective. On the other hand does not necessarily mean they are l eading a group or people or an organization. They could simply be individuals with a vision and the drive to motivate people. But in order for management to move into the future, they need to get in gear with effective leadership. ConclusionCustomers now are sophisticated. The easier the better. If they can find a product on-line and save them the trek to the store, they will choose the Internet. Customers are no longer afraid of the World Wide Web. They are actually what you call Internet savvy. Companies, management and leaders need to realize that if they want to stay competitive in todays hard business, they need to enhance their business knowledge of Information Technology. More and more technological innovations are sprouting. If a company stays within its boundary of relic technology, it will not survive. The same goes for the managements and leaders of any organization. The need to shed the old ways of management is a must. For companies to keep employees, the need to embrac e effective leadership and good management style. The organizational culture needs to be value driven, empowering employees to have the entrepreneurial spirit. Line managers, top managers and executives need to be able to manage change in a continuous learning environment while creating and maintaining the appropriate working culture. .u2a1ed0590583fbcf07cffeab13b8c7b4 , .u2a1ed0590583fbcf07cffeab13b8c7b4 .postImageUrl , .u2a1ed0590583fbcf07cffeab13b8c7b4 .centered-text-area { min-height: 80px; position: relative; } .u2a1ed0590583fbcf07cffeab13b8c7b4 , .u2a1ed0590583fbcf07cffeab13b8c7b4:hover , .u2a1ed0590583fbcf07cffeab13b8c7b4:visited , .u2a1ed0590583fbcf07cffeab13b8c7b4:active { border:0!important; } .u2a1ed0590583fbcf07cffeab13b8c7b4 .clearfix:after { content: ""; display: table; clear: both; } .u2a1ed0590583fbcf07cffeab13b8c7b4 { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .u2a1ed0590583fbcf07cffeab13b8c7b4:active , .u2a1ed0590583fbcf07cffeab13b8c7b4:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .u2a1ed0590583fbcf07cffeab13b8c7b4 .centered-text-area { width: 100%; position: relative ; } .u2a1ed0590583fbcf07cffeab13b8c7b4 .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .u2a1ed0590583fbcf07cffeab13b8c7b4 .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .u2a1ed0590583fbcf07cffeab13b8c7b4 .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .u2a1ed0590583fbcf07cffeab13b8c7b4:hover .ctaButton { background-color: #34495E!important; } .u2a1ed0590583fbcf07cffeab13b8c7b4 .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .u2a1ed0590583fbcf07cffeab13b8c7b4 .u2a1ed0590583fbcf07cffeab13b8c7b4-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .u2a1ed0590583fbcf07cffeab13b8c7b4:after { content: ""; display: block; clear: both; } READ: Pshycology test EssayReferencesZDNet. (2002). Linksys readies fast Wi-Fi alternative. Retrieved February 18, 2003 from the World Wide Web: http://www.80211-news.com/publications/page275-424191.html. Kirby, D. (2003). Optimizing Call Center Agent Schedules Through Automation. CRM Marketplace. Retrieved March 4, 2003 from the World Wide Web: http://www.crmmarketplace.com/content/news/article.asp?docid=db2c0da5-ee20-4b6d-83e6-9c5806c7cad7}VNETCOOKIE=NOUnknown. (2003). ACD Software and Phone Systems. Database Systems Corp website. Retrieved March 4, 2003 from the World Wide Web: http://www.databasesystemscorp.comLutz, E. (date unknown). The Principles of Management. Retrieved March 4, 2003 from the World Wide Web: http://www.arts.ilstu.edu/theatre/class/guither/am1a.html

Stock Market Prices

Stock Market Prices The prices of stocks which are purchased and sold in the secondary market are mostly influenced by demand and supply. Typically, the price of stocks depends on the number of shares that are offered in relation to the demand of the stocks.Advertising We will write a custom essay sample on Stock Market Prices specifically for you for only $16.05 $11/page Learn More The price of the shares are often high when there are few shares in the market and if the demand of these shares is high. On the other hand, the prices of shares are low if the shares offered in the market are many. Similarly, the price of the shares becomes significantly low when demand of the shares in the market goes down. Thus, the price of shares is determined by the demand and supply of shares in the market. Supply and Demand The demand of shares in the stock market is determined by various factors. Sloman (2008) posits that, income, wealth, expectations, divided yield, price and returns of su bstitutes are the factors that influence the demand of the stocks. Sloman (2008) considers the dividend yield as the money received back by investors and is expressed as a given percentage of its price. Many investors are attracted to purchase those stocks whose dividends are high. Equally, the prices and returns of substitutes relate to dividends as well as the market price for other corresponding stocks. Since the demand of such stocks is often high, their supply often goes down. Subsequently, this makes the price of the stocks to increase. According to Sloman (2008), the most prevalent substitutes for investing in shares include investing in properties such as real estates. Investors are always looking for the ways to make extra money. Therefore, many investors opt to invest in properties or any other forms of investments if they consider them to be more profitable than investing in shares. According to Boyce (2011), between 1960 and 2009 the profits for equities was higher than the profits gained from investment in property for the most part of the 20-year investment period. It was also observed that even over shorter time spans, equities have been the top-most performing asset, in 64% of five year periods, between 1960 and 2006. Wealth represents the accrued savings and assets. Wealth that is in form of assets is easily converted into cash and invested in shares. It is important to note that houses do not have a high rate of return as compared to investments in shares. Therefore, high-rise owners often opt to sell their houses and invest that money in shares. When this occurs, it increases the demands of shares.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More People’s expectations is another factor that determines the demand and prices of shares. Investors tend to buy more of those shares that they are optimistic about their future value. However , this kind of buying poses a great risk. This is because these prospects are not always true. Sometimes, other factors which may be beyond the investors’ expectations could crop up and affect the current outstanding performances of such companies. Such issues may lessen the value of the shares (Bacchetta, Tille Wincoop , 2010) Share prices and their effects on businesses The prices of shares in companies are imperative. This is because the prices of these shares are often used to depict the performance of a given company in the market. When the price of a company’s share increases, it primarily indicates that that company is performing well. Conversely, when the price of the share in a company decreases, it indicates poor performances. Textbook Questions If the rate of economic growth is 3% in a particular year, why are share prices likely to rise by more than 3% that year? Strong economies have been noted to be characterized by an increase in the household income wh ich is reflected in increased spending and investments. An economic growth of about 3% in a particular year is likely to translate to increased share prices by more than 3%. This is because a growth in the economy signifies increased per capita income. What happened to the FTSE 100 in 2010, why? Figure 1 The figure above illustrates how the FTSE 100 index initially performed poorly after suffering major setbacks due to the economic recession witnessed in the year 2008-2009. According to Scott (2010), investors were reluctant to invest in shares since they could not project what would follow the financial crisis.Advertising We will write a custom essay sample on Stock Market Prices specifically for you for only $16.05 $11/page Learn More The financial crises of the year 2008-09 lead to the failing of many banks which impacted negatively on the value of the FTSE 100 stock market. Fletcher (2010) noted that, even by mid 2010, the performance of the FTSE 100 s tock had not appreciated considerably since most investors were still under uncertainty of investing in shares. This is clearly noted by the great decrease in share prices that occurred in July. Similarly, the value of the shares depreciated significantly in September and November. These drops were linked to large amounts of money that were given to other European countries as bail-outs (Kollewe McDonald, 2010). At the end of the year 2010, the value of the shares had appreciated greatly since more investors had became more optimistic about the future of shares as indicated by the raising of the overall value of the index (Scott, 2010). Find another application of the same idea and explain why the concept is useful in the context you have chosen Supply and demand also determines the prices of commodities globally. For example, currently the prices of Cocoa have greatly increased due to the shortage of Cocoa which is associated with the recent civil unrest in Ivory Coast (AFN, 2011) . Figure 2 ‘CÃ ´te d’Ivoire is among the leading producers of Cocoa in the world. Being a major supplier of the commodity, the country plays a central role in influencing the world cocoa prices. Similar concerns about the disruption of cocoa production and export during the civil war also caused New York prices to soar to a high of $2,335/tonne in October 2002.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More It is observed that when cocoa is in short supply and also in high demand, its prices are often artificially inflated in a similar way to the share prices. This principle is very similar to what happens on stock markets, although the causes are usually much different. Conclusion The supply and demand of shares are known to be the natural determiners of the prices of shares. Nevertheless, there is a danger in that; the process is often manipulated where the prices of shares ends up being artificially inflated. This inflation is dangerous because it leads to considerable loss of investors’ money when the bubble occurs. List of References AAP., 2010. Wattyl accepts takeover bid from Valspar. Web. AFN., 2011. Cote D’Ivoire and cocoa: The facts. Web. Baccheta, P., Tille, C., Wincoop, E., 2010. Risk panics: When markets crash for no apparent reason. Web. Boyce, L., 2011. Investors love for property starts to dim. Web. Fletcher, N., 2010. FTSE 100 dips ahead of bank stress t est results. Web. Kollewe, A., McDonald., P. 2010. Anglo Irish Bank bailout could total â‚ ¬34bn. Web. Scott, P., 2010. Where will the FTSE 100 end 2010? Web. Sloman, J., 2008. Economics and the Business Environment, 2nd edition. New York: McGraw Hill.

Non-Executive Directors in Corporate Governance Essay

Non-Executive Directors in Corporate Governance - Essay Example The need for altering the corporate governance and the accountability of non-executive directors has come forth due to the collapse of a number of high profile corporations ( Carver and Oliver 2002; Cadbury 2002; Vinten 2002; Taylor 2003). Oman (2001) tried to define corporate governance as the public and private establishments which includes polices, rules and consented business patterns, which based on the economy of the market economy, administer the relationship linking internal stake holders on one hand, and share holders on the other. According to Cochran and Warwick (1988) corporate governance is: "an umbrella term that includes specific issues arising from interactions among senior management, shareholders, boards of directors, and other corporate stakeholders." 'Corporate governance' is seen as a fresh term which has entered our business terminology particularly in the last decade. Nevertheless connecting accountability with corporate governance (Cadbury 1992) is not a recent issue; it has grown with the development of the capitalistic system and growth of world economies (Vinten 2003). The different issues to be considered in this paper are: accountability and the role of non-executive directors with regard to corporate governance and accountability. According to Sir Arthur Cadbury in his paper (Cadbury 1992, p.15) "Corporate governance is the system by which companies are directed and controlled". This is concerned with the institution of structures and procedures by which management is responsible to shareowners with the aim of raising shareholder worth. The OECD (2004, p.11) defines as "Corporate governance involves a set of relationships between a company's management, its board, its shareholders and other stakeholders. Corporate governance provides the structure through which the objectives of the company are set, and the means of attaining those objectives and monitoring performance are determined. Good corporate governance should provide proper incentives for the board and management to pursue objectives that are in the interest of the company and its shareholders and should facilitate effective monitoring." A single structure or form is not suitable for all kind of businesses. This is actually acknowledged by the OECD rationales (2004 p.13). The reason is not only the intricacy and variety of actions that businesses are concerned with but also the lawful effects reckoning on the country's legal power and other social and cultural matters. Corporate performance and analysis Majority of research work have been carried out trying to connect company operation with different factors like board independence (Bhagat and Black 2002). Most of these studies undertaken actually surveyed the 'for-profit organizations' and made use of the common operation indicants like profit margins, share value and ROI. Research on the effect of corporate governance in organizations is mainly concentrated with the use of quantitative data analysis, whereas corporate

ScapeGoat MJ Assignment Example | Topics and Well Written Essays - 1000 words

ScapeGoat MJ - Assignment Example Let me begin with the points in the book which are universal and to some extent we could agree such as collective persecution. So as not to be misquoted, I will lift directly from the book about collective persecution which â€Å"acts of violence committed directly by a mob of murderers such as the persecution of the Jews during the Black Death. By collective resonances of persecutions I mean acts of violence, such as witch-hunts, that are legal in form but stimulated by the extremes of public opinion†. There is no question that persecution is an act of violence committed by a mob murderers and even if the examples of the Jews are used during the Black Death, I still totally agree with it. Indeed the Jews were persecuted during the Black Death and even during Second World War in Hitler’s concentration. While I agree to this example in persecution, this examples reveals the bias of the book in the narrative of a certain people – the Jews. It is important to note h owever that in citing the prejudice of the example, I am not belittling the suffering of the Jews during the Black Death and I even added during the Second World War. It is just that my experience as a male Arab Muslim, the example of Jews who were oppressed run counter to my experience. In my eyes and in the eyes of Muslims, the Jews had morphed into tormentors from being the victims. In the eyes of the Muslim world, they have transformed into a modern Hitler that persecuted another group of people which are the Palestinians. It was not so long ago that we saw Gaza turned into a modern day Auschwitz where civilians, including children were killed during the bombing of Israel under the pretext of self-defense. This pretext of self-defense is consistent with the books assertion about persecution which are acts of violence which are â€Å"legal in form but stimulated by

Geopolitics in the Middle East Essay Example | Topics and Well Written Essays - 750 words

Geopolitics in the Middle East - Essay Example Despite the struggles of the advocates of change, with the neo-conservatives envisioning an end for the, sort of chaotic Middle East society, the fight leads to a different scenario than what was expected. Peace is still so elusive, terrorist threats still exist, and instability is still greatly felt. We examined the reasons behind the pitfalls of this political blitzkrieg based on the articles written by Jeffrey Goldberg entitled "After Iraq" and the article "Parties of God: The Bush doctrine and the rise of Islamic Democracy" written by Ken Silverstein. Goldberg generally expressed the fact that the political agenda of the US and its allies are contrary to what Iraq's minority groups and even the rest of the countries in the region are looking for. Silverstein in the other hand expressed the fact that the Bush doctrine and the western democratic system do not fit the Islamic cultures and ways. While the US and the rest of its allies are eyeing to push their own vested interests in the Middle East campaign, the Middle Eastern nations affected by the current transitions in the other hand are looking at it in a different perspective. The war on Iraq was generally aimed at ousting Saddam Hussein, a dictatorial leader, for the major reason of removing a danger to social equality in the region, which Hussein had proven to be a threat, and instate a unified democratic government. . The plans may have been understood plainly by both the allies and Arab compatriots, like the Kurds, Turkey, Egypt, Jordan, and the rest, and laid open for them to work through, but beneath the shadows of their support, the Middle eastern countries, and minority regions within Iraq, are hoping to push through with their own agenda, for their own people, for their leader's interest. Take for example the case of the Kurds. In a personal interview by Jeffrey Goldberg with Abdul Rahman Mustafa, the Kurdish-Iraqi governor of Kirkuk in northern Iraq, considered as domains of the Kurds, it appeared that the Kurds really wanted independence from Iraq (Goldberg 79). The article of Goldberg speak further of other regions in the middle east that wanted to be governed based on their own cultural minority principles such as the "Shiites did not want to be ruled from Baghdad by a Sunni minority"(78), and other minority groups from Egypt, Israel, and other areas want their own sovereignty. In other words, the zeroing in was just superficial. The question is why The answer perhaps lies on the cultural differences between the east and the west, and the way these two civilizations are molded through time. We agree on Goldberg's idea that western democratic strategies don't seem to fit with the Middle Eastern cultures, which are highly diverse. Islam, which is the main religion in the Middle Eastern countries, is a diverse religion with differing principles across different minorities. While the west is generally Christian, although differing in minor teachings, have common core values that has high regard to peace and order. There is no Christian jihad, to cite a particular difference, while the Muslim jihad is primarily exploited by Muslim extremists and used to push their ideals and principles. In the western world, as a common knowledge, governance in civic

Effect of privatization on performance of public corporations

Effect of privatization on performance of public corporations Stock exchanges anywhere in the world provide a platform for investors and capital raisers to come together and get what they want. They assist in trading of stocks and bonds. Apart from that, it can be viewed as a liquidity providing platform. For this purpose, the stock exchange has to have a set of rules that will govern the execution and clearing of trade. Some of the responsibilities of a stock exchange are also enforcing standard rules to reduce transaction costs and monitoring of the trading to prevent manipulations like insider trading. A share or stock company model does issue shares of stock that are available through one or more stock market exchange. Shareholders purchase the shares of stock and become part owners in the company. This is a highly desirable status for many companies, as it can help generate significant amounts of revenue that make it possible for the company to grow in ways that would not be possible if the corporation remained privately held. Etukudo (2002) notes that capital markets transfer funds from savers to investors in productive assets such as plant and machinery as well as to providers of services. Capital markets also provide a mutually beneficial bridge between those who have short-time horizons and companies and projects with longer prospects. In addition, enterprises are provided with equity capital through the stock market, short, medium and long-term debt is made available through the bond market, and short or medium-term debt is provided through the banking sector. The financial intermediaries in all these transactions constitute the financial service sector and while the constituents of the sector and their relative importance vary from country to country, they generally include banks, stock exchanges, brokers and insurance companies. 1.1.1.2 Privatization of public corporations Boubakri and Cosset (1994) note that privatization has turned into a major phenomenon for the developed world as well as the developing world, particularly so over the last decade, with state-owned enterprises (SOEs) being privatized at an increasing rate. Ramamurti, (1991) note that the objectives of privatization are numerous. Country studies show that these objectives include improving government cash flows by redusing subsidies and capital infusions to SOEs, promoting popular capitalism through a wider ownership of shares, restraining the power of trade unions in the public sector, redistributing incomes and rents within society, satisfying foreign donors by reducing the governments role in the economy and especially enhancing the efficiency and the performance of the SOE sector based on the rationale that the private sector outperforms the public sector. Privatization in the 1990s led to the sale of 207 enterprises. Kenya Airways (KQ) was rated the most successful privatization venture in Africa. The Government has earmarked 33 companies for full or partial sale, these include; the National Bank of Kenya (NBK),the Kenya Commercial Bank(KCB), the Kenya Power and Lighting Company (KPLC), KenGen, Kenya Petroleum Refineries, the Kenya Ports Authority (KPA), Telkom Kenya and Kenya Railways Corporation. The methods of sale will range from concessioning, sale at the Nairobi Stock Exchange, and securing strategic partnerships with major players in the relevant sectors. 1.2 Statement of the Problem A study by Boubakri and Cosset (1994) examined the financial and operating performance of newly privatized firms in developing countries and noted that findings in for developing markets could be different from those of developed countries because the capital market may not play its monitoring role. To take account of the possibility that some of the differences between preprivatization and postprivatization performance could be due to economywide factors, the authors used performance measures adjusted for market effects in addition to unadjusted performance measures. The results were generally less significant when they adjusted the performance ratios for market effects. The authors thus concluded that this evidence brings to light the importance of considering a benchmark against which the performance of sample firms can be compared. Limi (2003) studied the influence of the level of economic development on the post-privatization growth rates in public infrastructure within the telecommunications industry and found that although privatization generally spurred network expansion in terms of telephone main lines by 4.4% in medians (5.4% on average), the performance improvement was dependent on the level of economic development. It is only the low-income and lower middle-income countries which can expect a significant positive privatization effect. Thus, it is important to account for economic development in assessing the privatization effects of public infrastructure stocks. From the foregoing it is thus useful to undertake a study to evaluate privatization and performance of public corporations listed in the Nairobi Stock Exchange. 1.3 Purpose of the Study or General Objective The purpose of this study is to evaluate privatization and performance of public corporations listed in the Nairobi Stock Exchange 1.4 Research Questions or Specific Objectives or Hypotheses This study is guided by the following research objectives formulated to aid in gathering the information regarding the research topic. Review literature on privatization of public corporations in Kenya To determine privatization factors in the Nairobi Stock Exchange To analyze privatization implications on public corporation performance in Nairobi Stock Exchange 1.5 Importance or Justification or Rationale of the Study The information generated by this study will be important for stock markets in the East Africa in understanding the implications of privatizing public corporations. This will benefit stock markets in Uganda, Tanzania and wider Eastern Africa which has the stock markets at their infancy stages. It will also assist policy makers who want to make use of performance measures of the stock market in advising public corporations on privatization prospects that may arise when listing in the stock market. In addition, it will guide policy makers of new baselines to use when determining privatization options for public corporations. Educators too in the education industry will find the information obtained from this study beneficial to their curriculum in imparting knowledge to students and researchers who are researching on the sector and how it can greatly benefit the country. 1.6 Scope of the Study The study will be limited to the Nairobi Stock Exchange for the duration 2008-2010. Nairobi Stock Exchange has about fifteen active stock broking firms with fifty two listed companies. I will focus on five of the stockbrokerage firms and fifteen of the listed companies. The use of the listed firms was due primarily to data availability and reliability because they are required by law to provide end of year financial statements. However, firms that were not listed for the entire period under study were left out of the sample. The study used annual reports that are available at the Nairobi Stock Exchange. 1.7 Definition of Terms 1.7.1 Privatization Privatization means the sale of public utilities to private concerns. 1.8 Chapter Summary This chapter covered the background of the research, the problem statement, the purpose of the study or general objectives of this research, the research objectives, the significance and scope of the research i.e. importance of the study and the definitions of Terminologies used in this research. Further, this chapter has specifically pointed the relevance of the study in regards to public corporations, and how they, in a bid to improve performance, employ a privatization strategy in light of global trends. 2.0 Chapter 2: Literature Review 2.1 Introduction This chapter will review relevant literature in line with the study objectives. 2.2 Privatization of Public Corporations in Kenya ROK(1965) noted that the establishment of the parastatals was driven by a national desire to (i) accelerate economic social development; (ii) redress regional economic imbalances; (iii) increase Kenyan Citizens participation in the economy; (iv) promote indigenous entrepreneurship; and (v) promote foreign investments (through joint ventures). This desire was expressed in the Sessional Paper No. 10 of 1965 on African Socialism and its application to planning in Kenya. A comprehensive review of the public enterprises performance was noted by (ROK, 1979) (the Report on the Review of Statutory Boards) that pointed that there was clear evidence of prolonged inefficiency, financial mismanagement, waste and malpractices in many parastatals; and (ROK, 1982) (the Report of the Working Party on Government Expenditures) which concluded that productivity of the state corporations was quite low while at the same time they continued to absorb an excessive portion of the budget, becoming a principal cause of long-term fiscal problem. The enactment of the State Corporations Act was a major attempt to streamline the management of the state corporations. The performance of most of the corporations continued to deteriorate due to the continued reliance on limited public sector financing. Sessional Paper No.4 of 1991 on Development and Employment in Kenya underlined the need to implement privatization and divestiture of State corporations urgently in view of the managerial problems afflicting the parastatals leading to poor return on government investments, the existence of a larger pool of qualified manpower, availability of more indigenous entrepreneurship to permit private sector led economy and the need for non-tax revenue for the Government. The Programme began in July 1992 with the issuance of the Policy Paper on Public Enterprises Reform and Privatization which pointed out that there were 240 commercial public enterprises with public sector equity participation and classified the PEs in to two categories: (i) 207 Non strategic commercial public enterprises which were to be privatised and 33 Strategic Commercial public enterprises which were to be restructured and retained under public sector ownership and control. By the time the first phase of the programme ca me to an end in 2000, most of the non-strategic commercial enterprises had either been fully or partially privatized, liquidated, sold under receivership while the strategic commercial enterprises to be retained under government operation had been reduced to 15 and later to 14 enterprises. The following is a list of privatized public enterprises by PUBLIC FLOATATIONS- Bamburi Portland Cement Co. Ltd, E.A., CMC Holdings Oxygen Ltd, National Bank of Kenya, Kenya Airways, Mumias Sugar Company; by PARTIAL DIVESTITUTRES Kenya Commercial Bank Ltd, Uchumi Supermarkets Ltd, General Motors (K) Ltd, and Housing Finance Company of Kenya. 2.3 Privatization Factors in the Nairobi Stock Exchange 2.3.1 Methods of privatization The term privatization has been applied to three different methods of increasing the activity of the private sector in providing public services: 1) private sector choice, financing, and production of a service;2) public-sector choice and financing with private sector production of the service selected; 3) and deregulation of private firms providing services. In the first case, the entire responsibility for a service is transferred from the public sector to the private sector, and individual consumers select and purchase the amount of services they desire from private providers. For example, solid-waste collection is provided by private firms in some communities. The third form of privatization means that government reduces or eliminates the regulatory restrictions imposed on private firms providing specific services. The second version of privatization refers to joint activity of the public and private sectors in providing services. In this case, consumers select and pay for the quantity and type of service desired through government, which then contracts with private firms to produce the desired amount and category of service. Although the government provides for the service, a private firm carries out the actual execution of it. The government determines the service level and pays the amount specified in the contract, but leaves decisions about production decisions to the private firm. 2.3.2 Advantages and Disadvantages of Privatization Etukudo (2002) sates that in sub-Saharan African countries with a high level of illiteracy, public offer for sale of state-owned enterprises has its limitations due to cumbersome formalities in the prospectus as well as complicated application forms, etc. As banking facilities are concentrated in urban centres, the use of public offer in privatization works to the disadvantage of those in rural areas with few banking facilities. On the whole, Etukudo (2002 contends that privatization programmes have led to marked increases in stock market capitalization as well as increases in the quantity and range of issues traded on the market. The stock exchange has attracted a considerable number of players to the market leading to increased competition within the capital market. The structure and function of capital markets affect the availability of capital, influence investment processes and also influence the ways in which business managers who approach investors project the current performance and future potential of their enterprises. 2.4 Privatization implications on public corporation performance in Nairobi Stock Exchange Yarrow (1986) notes that as firms move from public to private ownership, their profitability should increase. First, given that shareholders wish the firm to maximize profit, newly privatized firms managers should place greater emphasis on profit goals Second, privatization typically transfers both control rights and cash flow rights to the managers who then show a greater interest for profits and efficiency relative to pleasing the government with higher output or employment (Boycko, Shleifer and Vishny, 1993). In addition, Boycko, Shleifer and Vishny (1993) state that following privatization; firms should employ their human, financial and technological resources more efficiently because of a greater stress on profit goals and a reduction of government subsidies. Megginson, Nash and van Randenborgh (1994) note that governments expect that greater emphasis on efficiency will lead the newly privatized firm to increase its capital investment spending. Once privatized, the firm should also increase its capital expenditures because it has greater access to private debt and equity markets and it will have more incentives to invest in growth opportunities. Megginson et al (1994) believe the switch from public to private ownership should lead to a decrease in the proportion of debt in the capital structure because with the end of government debt guarantees the firms cost of borrowing will increase and because the firm has a new access to public equity markets. The authors further note that with privatization, dividend payments should increase because unlike governments private investors generally demand dividends and dividend payments are a classic response to the atomized ownership structure which most privatization programs led to. In terms of output Megginson, Nash and van Randenborgh (1994) contend that privatization should increase output because of greater competition, better incentives and more flexible financing opportunities. On the other hand Boycko, Shleifer and Vishny (1993) predicts a fall in output since the government no longer subsidizes the newly privatized firm to maintain inefficiently high output levels. Kikeri, Nellis and Shirley (1992) assert that governments expect the level of employment to decline once the SOE which is usually overstaffed turns out private and no longer receives government subsidies. However, in growing sectors, the newly privatized firm could absorb surplus labor through new capital investment and more productive use of existing assets. 2.5 Empirical experience Jones, Jammal Gokgur (1999) undertook an impact study applied to 81 privatizations (covering not just infrastructure firms but a range of firms already operating in competitive markets (in agriculture, agro-industries, tradable and non-tradable sectors) in Cote dIvoire and concluded that firms performed better after privatization and that they performed better than they would have had they remained under public ownership. The study also found that the set of transactions as a whole contributed positively to economic welfare, with annual net welfare benefits equivalent to about 25% of pre-divestiture sales. These results stemmed from a number of effects, including increases in output, investment, labor productivity, and intermediate-input productivity. 2.5 Chapter summary The chapter highlighted the different studies that sought to address the research gap. Chapter three will point out the methodology to be used in the study. Chapter 3: Research Methodology 3.1 Introduction This chapter will discuss the research methodology that will be used as the basis of this study. The chapter will also discuss the population of study, sample frame and sampling techniques, data collection methods as well as data analysis and data presentation methods to be employed in the study. 3.2 Research Design The research design employed in this study will be empirical in nature and will be aimed at delivering answers to the research questions outlined in the problem statement. 3.3 Population and Sampling Design 3.3.1 Population The population involved in the study are four privatized public corporation that have listed on the NSE. Population refers to the entire group of people, events, or things of interest that the researcher wishes to investigate. Population forms a basis from which the sample or subjects for the study is drawn. 3.3.2 Sampling Design and Sample Size Methods that we will use in our paper to analyze the operating and market performance are descriptive statistics for evaluating the post listing share price performance and the financial ratio analysis using the accounting data to evaluate public corporation performance as well as their risk and return relationships profile. Documents will collected from the organizations resource center, individual file record, libraries of various universities, company reports, company newsletter and other printed materials (e.g. newspaper cuttings, journals, text books, conference reports, articles, training packages) that were made available for the purpose of the research. 3.4 Data Collection Methods In order to achieve the set objectives, I will collect data from the Nairobi stock exchange database and from the financial statements of the individual companies under study. The collected data will be captured in form of tables. This will be used to capture performance of privatized public corporations listed on the Nairobi Stock Exchange. 3.5 Research Procedures 3.6 Data Analysis Methods This study will use the quantitative method of data analysis. The quantitative analysis is applied using descriptive statistics. According to Denscombe (1998) descriptive statistics involves a process of transforming a mass of raw data into tables, charts, with frequency distribution and percentages which are a vital part of making sense of the data. Data will be analyzed using Statistical Package for Social Sciences (SPSS) program and presented using tables and pie charts to give a clear picture of the research findings at a glance. 3.7 Chapter Summary The chapter describes the methodology that is to be used in carrying out the study. The chapter has also indicated that, data will be analyzed using SPSS and presented in inform of chart and tables. The next chapter will present the findings of the research.

Comparison of Hurstons Their Eyes Were Watching God and Walkers Color

A Comparison of Their Eyes Were Watching God and The Color Purple    Of Zora Neale Hurston's novel Their Eyes Were Watching God, Alice Walker says "it speaks to me as no novel, past or present, has ever done."   Though 45 years separate Their Eyes Were Watching God and The Color Purple, the two novels embody many similar concerns and methods. Hurston and Walker write of the experience of uneducated rural southern black women. They find a wisdom that can transform our communal relations and our spiritual lives. As Celie in The Color Purple says, referring to God: "If he ever listened to poor colored women the world would be a different place, I can tell you." Hurston's Their Eyes Were Watching God depicts the process of a woman's coming to consciousness, finding her voice and developing the power to tell her story. This fresh and much-needed perspective was met with incomprehension by the male literary establishment. In his review in New Masses, Richard Wright said the novel lacked "a basic idea or theme that lends itself to significant interpretation." Hurston's dialogue, he said, "manages to catch the psychological movements of the Negro folk mind in their pure simplicity, but that's as far as it goes. . . . . The sensory sweep of her novel carries no theme, no message, no thought." Many male reviewers and critics have reacted with similar hostility and incomprehension to The Color Purple. But to be blind to the definitions these and other women writers give to women's experience is to deny the validity of that experience. For Hurston's heroine, Janie, self-discovery and self-definition consist of learning to recognize and trust her inner voice, while rejecting the formulations others try to impose upon her. Increasin... ...: 181-202. Tate, Linda. "No Place Like Home": Learning to Read Two Writers' Maps // A Southern Weave of Women. Fiction of the Contemporary South. The University of Georgia Press, Athens, Georgia & London, 1994 Wade-Gayler, Gloria. Black, Southern, Womanist: The Genius of Alice Walker // Southern Women Writers. The New Generation. Ed. By Tonette Bond Inge. The University of Alabama Press, Touscaloosa & London, 1990 Critical Essays on Alice Walker. Ed. By Ikenna Dieke. Greenwood Press, Westpoint, Connecticut, London, 1999 Modern Critical Views. Alice Walker. Ed. by Harold Bloom. Chelsea House Publishers. New York & Philadelphia, 1989 Walker, Alice. The Color Purple. Harcourt Bruce Jovanovich, Publishers. New York, San Diego, London, 1992 --. "Finding Celie's Voice," Ms., December 1985, 72 --. Meridian. New York: Simon and Schuster, 1976.