Theories Of Ethical And Pshchological Egoism Essay Example for Free

Theories Of Ethical And Pshchological Egoism Essay Many feel that human nature drives people to deny all forms of altruism and the desire to help others; while an equal amount feels that it is the duty of every human to help others at all costs.   Because there is no way to really decide such a subjective argument, it seems personal preference is the best way to dictate such action.   The alternatives to such altruistic action are egoism, as described through ethical and psychological egoism. These options counter the utilitarian approach, which many find the preferable way for humans to act, and the greatest good for the greatest number of people should be in mind for every action a person makes.    However, the utilitarian approach often leaves open-ended questions on just how much help the fortunate should give to those who are not.   That is why the best approach is through ethical egoism, as if everyone looked out for his or her best interests, ideally, everyone would be able to support themselves and those for whom they care.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   While utilitarianism seems to be an ideal way to exist, it leaves too many questions about morality and the limits of altruism.   Egoism is much more natural, as it fosters the will to survive with a distinct rationalism.   The distinction between psychological egoism and ethical egoism reflects the contrast of is verses ought, fact verses value, or descriptive verses prescriptive (Philosophy Lander, 2006). In layman’s terms, this means that ethical egoism is based on the idea that individuals should do only what is in his or her self-interest to achieve morality, while psychological egoism accepts the fact that all people act in their self-interests anyway, despite any appearance to the contrary.   This expresses the difference between the descriptive nature of psychological egoism and the prescriptive nature of ethical egoism, with the former stating humans do things in their own best interests, while the latter states that humans merely should do things in their best interest (Lycan, 2001). To a psychological egoist, human nature is being wholly self-centered and self-motivated, which basically renders all morality useless (Moseley, 2006).   To an ethical egoist, morality is still pertinent and there are strong and weak types of the theory, with the strong version holding it is always moral to promote one’s own good, and it is never moral not to promote it, while the weak version states although it is always moral to promote one’s own good, it is not necessarily never moral to not (Moseley, 2006).   The weak version allows that there may be situations where pursuit of self-interest is not the most important thing and may actually be contrary to the best interests of an individual when concerning morality.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The difference between psychological and ethical egoism cannot be fully understood without knowing the fallacy that exists with psychological egoism.   The fallacy is that people are always motivated by self-interest, when there may be a great variety of motivating factors affecting their decisions, especially emotions.   The concept of motivation has a great deal to do with each theory, as psychological egoism is motivated by individual selfishness, while ethical egoism is motivated by the idea that one must do what is right, even if against self-interests. Because of this, one can commit an altruistic act with ethical egoism, however, with psychological egoism altruism is impossible unless simultaneously serving the interest of the individual as well.   Selfishness and self-interest, while containing some similar attributes, are very different, in that selfishness focuses solely on the needs of the individual, while self-interest merely seeks advantageous circumstances to ensure success. Ethical egoism is a philosophical practice that encourages individuals to pursue their own self-interests.   While it is idealistic to think of helping unknown masses with one’s own hard earned money, it is also naà ¯ve to think that people should feel obligated to do so.   A person who works hard to make money to buy fine things is entitled to those things.   Just because a person is successful and can afford luxury items does not mean that they are obligated to help strangers because it serves some sort of utilitarian purpose. If anything, much of this altruism merely perpetuates a cycle in which those who are poor become accustomed to the aid of those who are not.   If they pursued their own self-interests, they would be better able to rise above their own struggles and create a successful world for themselves. Ethical egoism is not entirely without the concept of helping others, however it focuses not on people that an individual will never meet, but the people in his or her life and those that the person loves and touches personally.   Psychological egoism lacks the fundamental questions of morality to begin with, and helping others is only necessary if it benefits the helper.   While it is difficult to claim that either type of egoism is correct, or even preferable to a utilitarian approach, it allows individuals to remain independent and free of all illusions. REFERENCES Lycan, W. (2001). Morality. University of North Carolina. Retrieved April 26, 2008, from http://www.unc.edu/~ujanel/Morality.htm Moseley, A. (2006). Egoism. The Internet Encyclopedia of Philosophy. Retrieved April 22, 2008, from http://www.utm.edu/research/iep/e/egoism.htm#SH2b Philosophy Lander. (2006). Psychological Egoism. Retrieved April 22, 2008, from http://philosophy.lander.edu/ethics/egoism.html

The Technology Aided Learning Education Essay

The Technology Aided Learning Education Essay Hey man! Whats wrong? Why are you crying? I didnt attend the last lecture how can I do the assignment now? Oh dont worry! I have the lecture recorded in my pen. Pen Yes it records video. Here take this Education is a complex subject which appears to elude definition. With the passage of time it has gathered new dimensions and stirred the human mind in unpredictable ways. Education is a continuous process and it aims at total development of the individual. Learning is not a single activity; it includes at least three different stages: accretion, restructuring, and tuning That is the, progress from the unsure and anxious state of the learner to the serene and experienced skill of the expert. It is not enough to understand and learn a subject. When a subject has been learned, it should be used. It should be practiced. It should be tuned until it is used effortlessly. An old proverb says, I heard it and I forgot it, I saw it and I remembered it, I did it and I learned it. Learning is therefore more effective when it occurs in an interactive setting that is mostly promoted through the use of educational technology. Now a days one can not live without technology. There is hardly an area of our life which is free from its presence whether it is health or education, industry or transport, communication or entertainment, fashion or domestic comforts technology is there all around us to serve us in every possible manner. TAL is an abbreviation of Technology Aided Learning and is one of the most commonly used acronyms within education. TAL has been increasingly used to describe the use of technology for learning purposes. The need for technology in the classroom is rapidly increasing with the changing times. What one must remember is that TAL is used to assist the user in learning or understanding a particular subject or thought in different or with interesting presentation. The key word here is Assist which means that it is not alone in this aim and that there are other methods involved too. In other words it is a small part of a much larger picture. It is relatively a new learning technique and is used for individual learning, in schools and in workplaces no matter what age groups the learner might belong to. TAL can be equally beneficial for people with disabilities. It will give them the opportunity to work side by side with peers. Technology today is flexible enough to stretch and meet their spec ial requirements. It will help them self-advocate In workplace environment it helps everyone by keeping a breast with latest techniques and solving day to day problems. Technology today provides virtual environments in which to check the viability of projects in real life situations. According to the British Journal of Educational Technology published by the National centre for Educational Technology, U.K. No. 2, Vol. 2, May 1971. Educational technology basically means all the intellectual and operational efforts made during recent years to regroup, arrange and systematize the application of scientific methods to the organization of new sets of equipment and material so as to optimize learning process. Majority of the people prefer TAL over traditional methods. TAL can cater a large number of people at the same time whereas traditional teacher centered methods can accommodate a certain number only. Technological learning commonly known as E-learning is defined as the use of new multimedia technologies and the Internet to improve the quality of learning by facilitating access to resources and services, as well as remote exchange and collaboration (EC, 2001). An integral part of the e-learning is video-conferencing technology, which allows students to talk to experts and other schools and students around the world in real time via a video link-up. Virtual schools are a relatively new phenomenon that is gripping the nation which makes it possible for everyone to learn at the same time even if they are at different ends of the globe. In this way a lot of time is saved from repeating or preparing the same lecture for separate classes. It is also benefactor for all those who due to one reason or another cannot go to educational institutions by having online lectures in their homes. If such virtual schools can be developed it might prove to be a sigh of relief for all those countries who import oil and other fuels as less to and from movement from educational institutions will bring a decrease in demand for fuel import thus giving a much required relief to their withering economy and might even boost it. Such a strategy can be particularly use ful in rural areas where online learning can help teachers and students in remote areas overcome distance. So in this way it can lend a helping hand in solving the current staff to student ratio crisis. Technology is the potential savior of the education system, because it can be used to personalize learning. The learner can learn at the pace he is most comfortable with and can design his learning according to his knowledge and needs, record the progress he makes. While some of the people want technology to replace traditional learning altogether others might disagree. A more moderate approach to the issue in question would be that both techniques should be employed in balance because some students from backward areas do not have the pace and are not at all comfortable with technology and also because it decreases student to student and student to teacher communication up to some extent. This strategy of blending online learning with school-based instruction is often utilized to accommodate students diverse learning styles and to enable them to work before or after school in ways that are not possible with conventional classroom instructions. Learners respond to information differently. As a result, it is often to the teachers advantage to use many different formats and modes to teach the lesson. Factors which influence the use of TAL include availability of resources and time and also on the difficulty of the topic and the strength and level of the class being taught. Use of TAL also broadens the mindset by giving every kind of information in one place. Most of the instructors just teach whatever is in the book and do not go outside its scope. Some do not employ TAL techniques due to power fluctuations and also non credibility of information up to some extent. The kind of technologies employed include internet, video conferences, audio and video cassettes regarding book content, online tests, online reference books, articles/journals and a wide range of gadgets including Projector, Camera, Electronic Board, Computer and different multimedia aids. While open educational resources are freely available over the net to every student without any discrimination, effort should be made that they meet standards of quality, accuracy and credibility as with any other educational resource. TAL is an effective learning technique.TAL provides an active learning atmosphere because different audio and visual materials appeal to the senses and completely grabs their attention. The listener of today does not want a dull lecture he prefers education through entertainment. Because of its comfortableness sometimes listener feels at ease and then might miss out a few things but TAL has the ability to reignite listeners interest. Because of the healthy interaction between technology and students interest in even dull topics can be developed. Audience motivation increases due to the use of TAL because everyday theres something new. Hence, if proper motivation and learning environment is provided TAL can surely enhance learning capabilities. Outside school, students constantly interact with technologies such as iPods, mobile phones, the internet and social networking sites, so it is little wonder theres an expectation that these technologies will also support their learning in the classroom. In recent world a program has been trialled that allowed students and teachers to download free information and resources through iTunes U an area of the iTunes store offering free education content from top institutions around the world. The departments assistant executive director curriculum support says that, by providing online content in alternative formats, the department hopes to make the information more accessible and appealing to people in the education community. This program will also test the practicality of using alternative electronic formats to distribute the departments information. The iTunes project also means that students can better communicate with their peers and access different perspectives on their subjects by sharing audio files to discuss their school work. Advantages of TAL in classroom include but are not limited to those mentioned here. The ideal classroom is an interactive, collaborative, and innovative place of discovery; technology is a key piece in achieving that goal. The use of TAL is increasing due to its fast and effective delivery of concepts and convenience. One of the advantages of using multimedia is to convey information quickly and effectively to all learners-and keep them interested in learning. (Savage and Vogel, 1996). Each and every one of the student pays 100% attention. TAL increases the interest in learning by creating an environment which is both innovative and creative and engages the student more fully. TAL makes one forget the chalk dust, the textbooks and make them a thing of the past. TAL is bliss for all those who want permanent and up to date knowledge. The use of TAL has introduced the concept of self education. When students find a term they are interested in they would simply research it and discus whatever they have found with their classmates. TAL also has an upper hand due to its diverse material. It sure is a fun way to get your students to review important material. It is certainly an advantage for all those who want to gain extra. It also saves the student and teacher from the hassle of carrying books and notes to and from the classroom. TAL expands whatever the course offers. When the same material is taught for awhile the student and even the teacher himself might find it les s than exciting. A quick internet search might help you identify ways to supplement your lessons with interesting new material such as photographs, sound clips, video clips, which can more than bring your lessons to life. Hence the use of technology allows teachers to diversify their lectures, display more information, and enhance learners learning. All student related info such as grades, attendance, progress reports etc can be uploaded which will make it possible to access it from any computer and hence make it easier for students and parents to track the students progress. Technology helps us in training our students in such a way that they master the 4Cs which are creativity, collaboration, communication and critical-thinking. TAL creates a sense of independent learning and help students in experiencing real life situations in the comfortable surroundings. With the aid of technology, many teachers take students beyond traditional classroom limits, creating virtual environments to experiment and explore (Hamza and Alhalabi, 1999). TAL reduces the cost of instructional materials. Technology is infused in almost every aspect of our daily lives so students from institutions which employ TAL techniques frequently have an upper hand than the rest as they are already trained in the much required skills. Students with little or no interest are simply not stimulated unless given technology as the backbone to their learning. Although some technologies sound space-aged and technical, most of the technologies that students are using are the same as those in most homes; the main difference is that, in schools, their educational potential is being explored. Like everything TAL also has some disadvantages. Lets imagine a situation where a teacher is having trouble with technological devices and it might sometimes be embarrassing when a student tells him or her how to troubleshoot the problem in question. However, that doesnt mean a teacher can turn away from using technology altogether. Instead, workshops should be arranged to bring such teachers into this new era of education by giving them the choice of what technology to use with their students. Given budget restraints, one hears more arguments in favor of traditional learning rather than use of technology in classrooms. The best solution to the financial problem is to allow students to bring in their own devices which mean that some students will have i-pads, pods, phones and laptops while others will have nothing. Technology, in this case, will likely serve to increase the gap between the rich and the poor and create a sense of deprivation. Sometimes students take it easy and become passive in the classroom or even dont come in the class because they know that whatever will be taught will be uploaded and they can find the same or better resources then that shown in the class. In this way they stop learning content and go to learn technology instead. Technology loses its novelty over time as its extensive use might make the lecture dull for then it will become a routine. Extra efficient people can surely find something more to do but in this way a little less motivated students will be left far behind and thus a gap will be created. TAL can be of major disadvantage for backward area people in terms of communication gap. The extensive use of technology may cause to lose activeness and brain storming etc. Some were of the view that they even serve as distraction. Some teachers might rely on technology exclusively to make their job quicker and easier, but what one must remember is that a teachers job is never easy. As far as technology is concerned there is a very faint line between education and environment. Teachers should be properly trained to emphasize knowledge and skills related to instructional technology use. Educational institutions in the country should be provided with modern instructional resources to facilitate teaching. The future of TAL in terms of teaching/learning and transfer of information to any individual all of them saw a bright future some even went so far as to suggest that TAL might completely replace the traditional techniques. A revolution might be coming ahead which aims to prepare students for further education and training, jobs of the future and to live and work in a digital world. Some school students ages 9-12 are even now being switched on to some of the most up-to-date technology available, from laptop computers to interactive whiteboards, video-conferencing equipment and even virtual classrooms. TAL should be employed side by side with traditional techniques rather then relying alone on technology. TAL should be employed on a larger scale and everything should be done for its promotion throughout the country. A clear cut line should be introduced so that these technologies and resources are not misused. The daily interaction with technology will help in producing students or le arners being leaders of 21st century.

Resolving and defining the barriers to communication

Resolving and defining the barriers to communication For any kind of communication to be successful, it is essential that the receiver attributes the same meaning to the message as intended by the sender of the message. But all acts of communication are not perfect or successful. At times, some meaning is lost as the message encounters various barriers along its passage between the sender and the receiver. Such barriers may arise at any of the stages through which a message passes during the process of communication. This is also called miscommunication. Some of the common problems that lead to the failure of communication are: noise, cultural differences, complexity of subject matter, personal biases, semantic problems, socio-psychological barriers, filtering, information overload, poor retention, poor listening, goal conflicts, slanting, inferring, etc. Barriers to communication can be classified as follows on the basis of the stage of the communication process during which the problem/s arise: a. Sender-oriented barriers: lack of planning, lack of clarity about the purpose of communication, improper choice of words resulting in a badly encoded message, difference in perception, wrong choice of the channel, unjustified presumptions, etc. b. Receiver-oriented barriers: poor listening, lack of interest, difference in perception, biased attitude, etc. c. Channel-oriented barriers: noise, wrong selection of medium, technical defects in the address system or the medium of communication chosen by the sender, time and distance, etc. We may define communication as a psycho-semantic process. Therefore, the barriers that affect the effectiveness of communication are mostly of social-psychological-linguistic nature. These factors may act upon any or all of the elements of the process of communication, that is, the sender or the receiver or the channel. And a common barrier for both the sender and the receiver can be the absence of a common frame of reference which often leads to the breakdown of communication in a specific situation. Common frame of reference is the context in which communication takes place. A well-defined context helps the sender and the receiver to comprehend the content of the message in a similar way, with regard to its implications and meaning. Many of the barriers listed above are easy to understand. But a few of them may require a detailed explanation. 4.2 TYPES OF BARRIERS Barriers to communication can be classified into the following broad categories: 1) Physical or environmental barriers, 2) Physiological or biological barriers, 3) Semantic or language barriers, 4) Personal barriers, 5) Emotional or perceptional barriers, 6) Socio-psychological barriers, 7) Cultural barriers, and 8) Organizational barriers. 4.2.1 PHYSICAL OR ENVIRONMENTAL BARRIERS Physical barriers are those barriers which are caused due to some technical defects in the media used for communication and/or due to certain disturbances in the surrounding environment. Often, the term noise is used as a blanket term to refer to the physical barriers in general. But noise, in its literal sense, is also one of the factors that give rise to the physical barriers during the process of communication. Besides noise, wrong selection of medium, lack of acoustics, poor lighting, frequent movements of hands, fiddling with a pen, or even serving of tea during an important conversation- all of these are also responsible for creating physical barriers in the communication process. a. Noise Noise is the first major barrier to communication. Communication is distorted by noise that crops up at the transmission level. The meaning attributed to the word noise in the field of Communication is derived from the realm of Physics. In Physics, noise refers to a disturbance, especially a random and persistent disturbance, which obscures or reduces the clarity of a signal. The modern-day connotation of the word noise is irrelevant or meaningless data as is apparent from its usage in the field of Computer Science. For example, the noise of the traffic around a school obstructs the smooth flow of information between the teacher and the students. It makes oral communication difficult. Similarly, poor signal or static while talking over the cell phone or while using the public address system or while watching TV also distorts the sound signals and disrupts communication. Bad weather conditions may also sometimes interfere with the transmission of signals and may lead to breakdown of the communication channels. As discussed above, noise is not only the disruption of sound signals, but it also includes all the barriers that may arise at any of the various stages of communication. In a broad sense, it denotes semantic barriers, perceptional barriers as well as psychological barriers. b. Time and Distance Time and distance may also obstruct the smooth flow of information. Today, because of technological advancements, we have faster means of communication available to us and this in turn has made the world a smaller place. But at times, these means of communication may not be easily accessible because of unavailability or due to technical/technological problems. This may lead not only to a physical but also a communication gap between the transmitter and the receiver. Time differences between people living in two different countries may affect communication between them. Even people working in different shifts in the same organization may also face problems in communicating effectively. Improper seating arrangement in a classroom or in a conference hall may also act as a barrier to effective communication as it is difficult to maintain eye contact with ones audience. Thus, communication can be successful only when the communicators manage to overcome the barriers by minimizing the obstacles that crop up due to spatial and temporal factors. c. Wrong Choice of Medium This can also create a barrier to effective communication. For example, if an expert uses charts or graphs or PowerPoint presentations to orient the illiterate workers or volunteers to a new method of working, they are bound to be ill-equipped to infer any information or instructions from such sophisticated presentations. d. Surroundings Adverse weather conditions affect not only the means of communication, but also have an impact on the sender and the receiver of the message. When two people have to communicate with each other under extreme weather conditions, whether too hot or too cold, their surroundings does have a direct repercussion on the effectiveness of the exchange that takes place between them. Thus, environmental factors determine peoples mood and also influence their mental agility and thereby their capacity to communicate effectively. Extreme heat and humidity make people either hyper or listless and thus cause immense stress which in turn affects clear thinking and the attitude of the communicator; whereas, extreme cold weather induces laziness and also impedes the ability to think clearly and respond sharply, thereby causing communication failure. 4.2.2 PHYSIOLOGICAL OR BIOLOGICAL BARRIERS Physiological barriers are related to a persons health and fitness. These may arise due to disabilities that may affect the physical capability of the sender or the receiver. For example, poor eyesight, deafness, uncontrolled body movements, etc. Physical defects in ones body may also disrupt communication. While communicating, a person uses- his vocal (speech) organs to produce sound/speech his hand and fingers to write his ears to take in the spoken words his eyes to absorb the written words Flawless functioning of these body organs is inevitable for effective communication to take place. In case of any defect in any of these organs, the successful completion of communication will be difficult to accomplish. Speaking can be adversely affected by stammering, fumbling, utterance of improper sounds due to defective vocal organ/s, etc. Listening can be rendered ineffective as a result of defective hearing. Deafness- total or partial- obstructs the absorption of sound signals. This leads to information loss. Writing can fail to convey the message successfully because of illegible handwriting due to hand injury, excessive trembling of the palm or fingers, numbness, etc. Reading can be affected due to poor eyesight. Defective vision impedes the reading ability of the receiver. Words may appear hazy, broken, overlapping, etc. to the receivers eye. To overcome such barriers, one must avail oneself of the necessary medical treatment (for defects in the body organs), therapy (to improve speech) or corrective aids (like hearing aid, spectacles, etc.). 4.2.3 SEMANTIC OR LANGUAGE BARRIERS Semantics is the systematic study of the meaning of words. Thus, the semantic barriers are barriers related to language. Such barriers are problems that arise during the process of encoding and/or decoding the message into words and ideas respectively. Both the oral and the written communication are based on words/symbols which are ambiguous in nature. Words/symbols may be used in several ways and may have several meanings. Unless the receiver knows the context, he may interpret the words/symbols according to his own level of understanding and may thus misinterpret the message. The most common semantic barriers are listed as under: a. Misinterpretation of Words Semantic problems often arise because of the gap between the meaning as intended by the sender and that as understood by the receiver. This happens when the receiver does not assign the same meaning to the word/symbol as the transmitter had intended. Words are capable of expressing a variety of meanings depending upon their usage, i.e. in the context in which they are used. The association between the word/symbol and the meaning assigned to it is of arbitrary nature. For example, the word yellow when used as an adjective can have multiple connotations depending upon its usage. Words have two levels of meaning- literal (descriptive) and metaphorical (qualitative). Yellow, besides being a primary colour, also stands for freshness, beauty, sickness, decay, etc. Hence, the receiver is free to interpret it in any of these ways based on his own imagination and experience. But for communication to be perfect, it is essential that the receiver must assign to it the same meaning which the sender had in his mind while encoding the message. Therefore, there is always a possibility of misinterpretation of the messages. Mostly, such problems arise when the sender does not use simple and clear words that can convey the exact meaning to the receiver. b. Use of Technical Language Technical or specialized language which is used by people or professionals who work in the same field is known as jargon. Such technical language can be a barrier to communication if the receiver of the message is not familiar with it. For example, in the computer jargon, to burn a CD means to copy the data on a CD. To a layman, the word burn may have a very different connotation. c. Ambiguity Ambiguity arises when the sender and the receiver of the message attribute different meanings to the same words or use different words to convey the same meaning. Sometimes, wrong and speculative assumptions also lead to ambiguity. A sender often assumes that his audience would perceive the situation as he does or have the same opinion about an issue or understand the message as he understands it, and so on. All such assumptions may turn out to be wrong and cause communication failure. 4.2.4 PERSONAL BARRIERS Communication is interpersonal in nature. Thus, there are certain barriers that are directly linked to the persons involved in the communication process, i.e. the sender and the receiver, which influence the accurate transfer of the message. These are called personal barriers. Personal barriers have to do with the age, education, interests and needs or intentions that differ from person to person. When one communicates, s/he addresses an audience that may belong to different age-groups. With age, ones choices, preferences and interests undergo enormous changes. So one has to consider this factor while communicating in order to check the possibility of communication failure. Difference in education is another important factor. It determines the senders ability to think, to form an intelligible message and to convey it successfully. On the other hand, it also influences the receivers capability to read/listen, to understand and to respond to the message that he receives. Thus, difference in education can hamper the successful encoding and/or decoding of the message, if proper care is not taken by the sender and/or the receiver. In any business organization, the attitude of the superiors and the subordinates play a vital role in determining the success of communication. If the superiors have a hostile attitude, then there are chances that they may filter the information or manipulate the message, sometimes intentionally, in order to achieve certain selfish motives. Many superiors are not open to suggestions and feedback as they presume that their subordinates are not capable of advising them. Also, they often tend to keep too busy with work and do not pay much attention to communication. Due to this, the downward flow of information within the organization is badly affected and this in turn leads to poor performance. Besides, the superiors often exercise their authority by insisting that the subordinates should approach them only through proper formal channels of communication. If, under any circumstances, the subordinates try to communicate to the superiors directly, then they may take offense as they perceive such an attempt as a challenge to their position of power. Such an attitude thus becomes a barrier to effective communication. On the other hand, there are certain factors that influence the participation of the subordinates in upward communication. Lack of confidence and fear are the primary reasons why the subordinates fail to communicate openly and comfortably with the superiors. If they feel that some information may, in some way, harm their prospect/interest in the organization, then they prefer to conceal such information. In case, if that is not possible, then they filter the information so that they cannot be held responsible for the same. Moreover, when the superiors do not support the active involvement of the subordinates in the functioning of the organization by encouraging them to exchange their ideas and to give suggestions that would contribute to the success of the organization, the subordinates become indifferent to such reciprocity and this creates a barrier to upward communication. If the subordinates feel that their ideas and suggestions are of no value to the superiors, then they do not feel motivated to convey the same. Therefore, on the basis of the above discussion, we may conclude that personal barriers have their origin in the attitude of the sender as well as the receiver. Personal barriers often lead to distortion, filtering, and omission of information and thus have an adverse effect on the fidelity of communication. 4.2.5 EMOTIONAL OR PERCEPTIONAL BARRIERS Emotional or perceptional barriers are closely associated with personal barriers. Personal barriers arise from motives and attitudes (as seen above), whereas emotional or perceptional barriers have an added dimension that includes sentiments and emotions as well. If the receiver does not evaluate the information with an open mind, i.e. objectively, his judgment/evaluation would be colored with his biases and/or his emotions, thus inducing him to read too much into a message. This would interfere with the exact transfer of information and cause misinterpretation. Such a barrier may also emerge at the time of encoding the message. Over enthusiasm on the part of the sender may lead him to invest his message with meaning/s which he may actually not have intended to. Besides, too much aggression or passivity on the part of either the sender or the receiver, while communicating, also has an adverse effect on the success of communication. Also, too much of emotion thwarts reason and sometimes, the communicator, blinded by his own sentiments, makes impulsive judgments or illogical decisions. This also results in the breakdown of communication. Indolence, apathy, or the tendency to procrastinate, either on the part of the sender or the receiver, also lead to withholding of important information thus creating a barrier. Extreme emotions like euphoria, excitement, anger, stress, depression, etc. also get in the way of effective communication. All these factors may create biases in the mind of the sender or the receiver. Therefore, the sender and the receiver may encode and decode the message respectively as per their own perceptions, background, needs, experience, etc. And this leads to a distinct kind of exchange of ideas and feedback as well. They tend to obfuscate the reality and see what they want to see. This is also one kind of filtering that takes place during the communication process. 4.2.6 SOCIO-PSYCHOLOGICAL BARRIERS Socio-psychological barriers can also be considered as one of the offshoots of the personal barriers, akin to the perceptional barriers. We need to study it as a subcategory of personal barriers because a persons attitude is shaped not only by his instincts and emotions, but also by his approach towards and his interaction with the people around him, and hence the need for this fine distinction between the personal, the perceptional and the socio-psychological barriers. a. Status Consciousness To begin with, the consciousness of ones position in an organization has an effect on the two-way flow of communication. A vertical channel of communication is present in every organization, but its efficacy is heavily influenced by the relationship between the superiors and the subordinates. Though many organizations are now becoming accustomed to the open door policy, the psychological distance between the superiors and the subordinates still prevails. Status consciousness is thus one of the major barriers to successful communication. b. Difference in Perception Moreover, in a communication situation, the communicators have to deal with two aspects of the reality- the one as they see it and the other as they perceive it. The mind filters the message i.e. the words/symbols/ signs and attributes meaning to them, according to individual perception. Each individual has his own distinctive filter, formed by his/her experiences, emotional makeup, knowledge, and mindset which s/he has attained over a period of time. Because of this difference in perceptions, different individuals respond to the same word/symbol/sign based on their own understanding of the situation and ascribe meaning to it on the basis of their unique filter. At times, this difference in perception causes communication gap, i.e. distortion, in the message. In face-to-face communication, this gap can be easily eliminated as there is immediate feedback. But in written communication, the semantic gap between the intended meaning and the interpreted meaning remains unidentified, as the feedback is delayed or sometimes there is no feedback at all. c. Prejudices Besides, a person with deeply ingrained prejudices is very difficult to communicate with. He is not responsive to discussion or to new ideas, information, viewpoints and opinions. He has a closed mind and tends to react antagonistically, thus ruling out all possibilities of communication. An unreceptive mind can, hence, be a great barrier in communication. To overcome this barrier, people should be receptive of new ideas and must learn to listen considerately with an open mind. d. Halo/Horn Effect Also, sometimes the listener may be too much in awe of or may completely distrust a speaker. In both these situations, the chances of success of the communication are very less. e. Information Overload Furthermore, information overload leads to poor retention and causes information loss. So, whenever there is some important information to be conveyed, the communicators must use the written channel of communication. On the basis of the above discussion, we may thus conclude that the socio-psychological factors do have a profound impact on the effectiveness of communication. 4.2.7 CULTURAL BARRIERS Culture is the totality of socially transmitted behavior patterns, arts, beliefs, institutions, and all other products of human work and thought. Culture is learned and shared within social groups and is transmitted by non-genetic means. (American Heritage Dictionary, 2005) From this definition, we can infer that culture is the sum total of ideas, customs, arts, rituals, skills, etc. of a group of people. It is handed down from generation to generation in the form of conventions, traditions, rules, codes of conduct, etc. To put it simply, culture is the shared ways in which groups of people understand and interpret the world. (F. Trompenaars, Riding the Waves of Culture: Understanding Diversity in Global Business; 1994) Each group, categorized on the basis of nationality, ethnicity, race, religion, etc. has its own distinctive culture. Thus, there are varied subcultures that co-exist within a major culture. Such immense cultural diversity plays a very crucial role in communication as it has an extensive influence on both verbal and non-verbal communication and may therefore create barriers to effective communication. Cultural differences give rise to a great deal of complexity in the encoding and the decoding of messages not only because of the difference in languages, but also because of plenty of culture-specific assumptions at work in the mind of the sender as well as the receiver. People belonging to different cultures may attach different meanings to words, symbols, gestures, and behaviour or they may perceive each others social values, body language, attitude to space distancing and time, social behaviour and manners, etc., i.e. the entire culture in general, very differently depending upon their own standards, attitudes, customs, prejudices, opinions, behavioral norms, etc., i.e. their own distinct culture. Thus, cultural barriers arise when people belonging to different cultures insist on preserving their cultural identities and at times, judge the other cultures as inferior to their own. (For a detailed discussion on the various elements that can create cultural barriers, refer Chapter 6 International Communication) 4.2.8 ORGANIZATIONAL BARRIERS Organizational structure greatly influences the flow of information within an organization. Some major organizational barriers are as follows: a. Goal Conflicts There may be goal conflicts within the organization between the superiors and the subordinates, among people working in the different departments, among the colleagues, etc. This may create a hostile atmosphere within the organization and can lead to serious communication breakdown. b. Organizational Policies These are also to a great extent responsible for determining the kind of rapport that people working in the same organization share with each other. If the organizational policy is such that it restricts the free flow of information in all directions (refer Chapter 7 Formal and Informal Networks of Communication), then communication would not be successful. In some organizations, there may be rules to restrict the flow of certain messages and this may deter employees from conveying those messages, however important they may be. If an organization favours the open door policy, the subordinates would not feel shy or reluctant to approach their superiors directly. But in the organizations where the formal channels of communication have to be strictly adhered to, the superiors and the subordinates share an awkward relationship. They experience a lot of discomfiture while interacting with each other. Because of this, the objective of communication may never be accomplished. c. Organizational Hierarchy The hierarchical structure of the organization may also impede the flow of information and this can cause delay in taking decisions. When the message passes along the chain of command in an organization, there are chances of filtering and distortion of the message at almost every level before it reaches the intended receiver. Thus, the hierarchical structure of the organization is also one of the important factors that may create a barrier to effective communication. Barriers to effective communication can be summarized as under: Physical Barriers: sound, sight, size, light, location, distance, time, surroundings, environment, infrastructural facilities, etc. Physiological Barriers: Speaking- stammering, fumbling, utterance of improper sounds due to defect in speech, etc. Listening- hearing impairment, deafness, etc. Writing- illegible handwriting due to uncontrolled hand movements like trembling, numbness, etc. Reading- difficulty in reading due to poor eyesight, perceiving the written words as hazy, unclear and overlapping, etc. Differential Barriers: difference in age, education, needs, interests, intention or purpose creating a communication gap between the speaker/writer and the listener/reader. Intellectual Barriers: use of foreign language, pronunciation, style, tone, vocabulary, etc. Socio-Cultural Barriers: race, religion, culture, habits, behaviour, social values and manners, etc. Psychological Barriers: attitude, mood, temperament, ego, prejudice, jealousy, rivalry, nervousness, excitement, etc. Organizational Barriers: status, hierarchy, policies, filtering, manipulation, etc. On the basis of the above discussion, we may thus sum up that barriers to communication are the aspects of or conditions in a workplace- such as status differences, gender differences, cultural differences, prejudices, and the organizational environment- that interfere with effective exchange of ideas or thoughts. (Business Dictionary) However, there are certain specific strategies that can help us to surmount these obstacles and achieve the purpose of communication. These are discussed in detail in the following section. 4.3 OVERCOMING THE BARRIERS TO COMMUNICATION On the basis of the various kinds of communication barriers listed in the previous section, let us now discuss certain strategies that would help us to overcome these barriers and thus improve communication. As effective communication is essential for the success of a business organization, the communicators must take care to remove the barriers in the way of communication, to the best extent possible. In communication, it is not enough only to know the message. For communication to be complete, the message must be understood by the audience. The communicator shares his message through the medium of words- spoken or written, through gestures, through symbols, etc. Thus, from this we can infer that communication, whether verbal or nonverbal, is symbolic in nature. These two aspects of communication determine the fundamental difference between effective and ineffective communication. If an idea/information is known to but not fully understood by the receiver, then the communication will be ineffective. The sender can know whether the message has been understood by the receiver through his response, i.e. feedback. The following are some general guidelines for the sender and the receiver of the message: For the Sender of the Message At the very outset, that the sender should reveal the purpose of his message and the important topics that he would deal with. By doing so, he prepares the receiver for what is to follow. This helps the receiver to identify the main points of the message, to recognize the link among the important ideas that the message contains and to organize them in a meaningful pattern in his mind. The message should be compact and the sender should concentrate exclusively on the main ideas or information that he intends to convey. Likewise, the sender should situate his ideas in an appropriate context so that the audience will evaluate and interpret them within that common frame of reference which the sender has indicated or suggested. While communicating, the sender should, at all times, emphasize the important points of the message with the help of bulleted lists, chart, graphs, illustrations, body language, tone, pitch, etc. He should also provide a summary at the end of his presentation or write-up. This will help the receiver to grasp the overall meaning of the message, thus making it easy to understand the various parts, i.e. ideas, in relation to the overall framework. The sender should arrange the ideas/information in such a way that it is appealing to the audiences visual and/or auditory senses. In written communication, the writer may make use of an attractive layout and good quality paper to attract the readers attention. While communicating orally, the sender must take care to minimize noise. He should make sure that his surroundings are well-equipped with the necessary acoustics. He should pay special attention to his facial expressions, gesture, and eye contact with the audience at the time of delivering the message. The sender should be clear about why he wants to communicate and his message should be precise and well-structured. He should take care to select an appropriate channel or medium so that the impact of message is not lost in transmission. He should send his message through an effective channel i.e. keeping in mind his audience and the purpose of the message and should select a channel where there are less chances of distortion. The sender should avoid using grandiloquent words in order to avoid the possibility of misinterpretation of the overall meaning of the message. The sender should neither burden the receiver with information overload nor should he provide him too little information. He should identify his audience before encoding the message so that he knows what his audience may already know and in what context he should place his message. The sender should formulate and deliver his message in such a way that it retains the audiences interest in what he intends to convey. He should do away with all his prejudices and preconceived notions and must communicate clearly and with an open mind. All these would enable him to have an audience-centric approach while encoding his message. For the Receiver of the Message In the initial stage of the communication process, the onus is entirely on the sender of the message. But in the later stage, the receiver plays an active role once he starts absorbing and processing the information in his mind. Thus, the receiver of the message also plays an equally important role in the successful completion of communication. Not all barriers are sender-oriented. The barriers arising from the side of the receiver are known as receiver-oriented barriers. The foremo

Corporate Culture Essay -- Essays Papers

Corporate Culture Introduction How one chooses to dress, the physical distance one keeps from others, speech patterns, where one looks while talking, and similar factors are taken into consideration when identifying what composes a certain culture. In order to distinguish right from wrong, culture provides the individual with boundaries of acceptable behavior. According to one definition, "culture is the set of learned behaviors, beliefs, attitudes, values, and ideals that are characteristic of a particular society or population" (Ember & Ember, 402). These accepted behaviors are learned in all cultures (Ember & Ember 20). Specific cultures dictate behaviors for certain environments ranging from massive countries to small organizations. Each culture provides the individual with the comfort of knowing what is expected from him or her, which in turn allows the society or group to function. Certain theories developed through anthropological research about culture may be applied to developing a culture within an organization. Comprehending what differentiates groups of human beings is useful because such clarity helps to avoid misunderstandings between people. Exposure to anthropological theory [co-cultures, constraints (established through norms), action chains and culture shock/adaptation] can help alleviate some of the misunderstandings that arise from unconscious between people of different cultural groups (Ember & Ember, 11). By recognizing the role that culture has upon the individual as well as the group, the members of a group could apply these principles to create a stable community. In cultural anthropology, there are theories and terms that explain why people act the way that they do and what actions elicit ... ...tive difference?" Business and Society Review v104.i4 (1999): p104. Williams, Kelly. "How do you keep good employees? With perks." OfficeSolutions v17.9 (2000): p26. Yetzer, Elaine. "Piecing it together: Recruiting, retaining employees doesn't end when a job opening is filled." Hotel & Motel Management v216.1 (2001): p44. Young, Cheri A., and Craig C. Lundberg. "Creating a good first day on the job: allaying newcomers' anxiety with positive messages." Cornell Hotel & Restaurant Administration Quarterly v37.6 (1996): p26. Zemke, Ron. "Employee orientation: a process, not a problem." Training: the Magazine of Human Resources Development. Aug. 1989: 33. Zion, Lee. "Small business big on retention." San Diego Business Journal 14 Aug. 2000: 33. Zyska, Patricia. "Loyalty, not perks, helps to retain employees." Computing Canada v26.18 (2000): p28.

The First Job :: essays research papers

The First Day   Ã‚  Ã‚  Ã‚  Ã‚  On June 1, 2003 my thinking on life, changed a little bit. It happened to be a Sunday that I didn’t think I would be going to bed at 2:30 P.M. in order to go to work. I got under the cover of my bed and I was out like a light. Once I got into a very deep sleep it was hard to get out of it. I heard my alarm go off, and I didn’t want to get up, but I got up and started to get dressed. I went out in the kitchen and got something to eat and then packed my lunch for the night.   Ã‚  Ã‚  Ã‚  Ã‚  On the way to Van Wert, I was getting very intense. I started to get nervous about what I would be doing and who I would be working with. The closer I got to the factory the more nervous I got. Once I pulled into the parking lot and was shutting my car off, I realized that this isn’t a place I would like to work at all of my life.   Ã‚  Ã‚  Ã‚  Ã‚  Then I was walking into the factory and got clocked in and realized what I was in for. The presses were pounding away on the big coils of steel; the air had a humid musty smell that was going to get to me over time. I went into the break room and put my lunch box in the refrigerator. I walked nervously to meet my foreman and he gave me something to do. I was running a 400 degree rubber injection press the first part of the night.   Ã‚  Ã‚  Ã‚  Ã‚  At about 2:00 A.M. the bell rang for the first break. I was happy to here that because I needed a break to get something to drink. I sat down in the break room and sweat was still running down my face. As I was starring up at the TV I thought to myself, â€Å"this is going to be a long summer.† After the ten minute break was over, I walked back out to the press I was running and put on my soaked sleeves and gloves. When I was getting ready to start my press up my foreman came over to me and told me to come with him. All the while I was thinking in my head where is he taking me? What am I going to be doing now?

Recent Changes in Monetary Policy in Pakistan

{text:bookmark} {text:toc-mark-start} PAKISTAN ECONOMIC POLICY {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} DATED: *15TH* DECEMBER 2009 {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} Submitted To: {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} Sir Ashraf Janjua {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} Submitted By: {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} Nimra Anjum {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} Rakana Payam {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} text:bookmark} {text:toc-mark-start} *Sheema H*asanat {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} ACKNOWLEDGEMENT {text:toc-mark-end} We would like to give our special thanks to our Pakistan Economic Policy teacher, Mr. Ashraf Janjua for giving us this opportunity to work and have an insight of the our country’s economy, also to let us interpret our learning in a real situation. We thank him for the assist ance through out this project. Table of Contents MONETARY POLICY Monetary policy is the regulation of volume of money supply, by the central bank in order to achieve relative price stability. If the economy is heating up then the Central bank can increase the bank rate or the reserve requirement. Whereas when there is recession, then the bank rate is reduced. Instruments for the Regulation of Money Supply Open market operations. Cash Reserve requirement Statutory Liquidity Ratio Credit Ceiling Open market operations: It is the buying and selling of government securities. If the M. S is high then the securities are sold so that people buy it and money goes to the SBP and if the M. S is low then you buy securities in this way Money supply increases. Cash Reserve Requirement: It is a requirement in which all the commercial bank have to keep a percentage of cash with the SBP. Currently, it is around 7%. Statutory Liquidity Ratio: It is a requirement in which each bank has to maintain a certain reserve requirement to strengthen their liquidity position. Credit Ceiling: It is the fixation of the upper limit; quotas are assigned to different banks. Components of Money text:bookmark} {text:toc-mark-start} Mo is the resource money and comprises of: {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} Currency in circulation {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} Bank’s Reserve with the SBP {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} Other deposits with the SBP {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} Cash in the tills of the Bank {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} M1= Currency in circulation + Demand deposits with scheduled banks + other deposits with SBP. text:toc-mark-end} {text:bookmark} {text:toc-mark-start} M2=M1 + time deposits with the scheduled banks. Technically, M2 is called Monetary Assets & M1 is called Money Supply. {text:toc-mark-end} How is Money Created? {text:bookmark} {text:toc-mark-start} There are three sources of creating money: {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} Net Credit creation by the central Bank (SBP): Credit extended during a period minus recoveries. {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} 1 and 2 are called net Bank credit. Credit is always on the Asset side of Banks. When this credit is used by issuing cheques end up with bank (either the same bank/or any other bank). These cheques are deposits, and are on the liability side of the banks. These deposits/liabilities become money/monetary Assets, and are equal to the credit created by the Banking System. {text:toc-mark-end} How Much Money can be Created? {text:bookmark} {text:toc-mark-start} The share of currency in circulation in Mo and, {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} Level of cash in tills and commercial banks reserves with SBP as a % of Mo. text:toc-mark-end} {text:bookmark} {text:toc-mark-start} The higher the value of either of these amounts with respect to M2, the lower the Money Multiplier. {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} 1/c + r (1-c) {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} C= the ratio b/w CIC + other deposits with SBP and M2 {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} R= Cash assets of Scheduled banks: Ca sh in tills of commercial banks + reserves with SBP. {text:toc-mark-end} DOES MONETARY POLICY PLAY EFFECTIVE ROLE IN CONTROLLING INFLATION IN PAKISTAN? Introduction text:bookmark} {text:toc-mark-start} Inflation is politically costly for the government (Haque and {text:toc-mark-end} Salient Features of the Monetary Policy {draw:frame} {draw:frame} {draw:frame} Instruments of Monetary Policy {text:bookmark} {text:toc-mark-start} Cash Reserve Requirement {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} {draw:frame} {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} Discount Rate {text:toc-mark-end} {draw:frame} INFLATION TREND IN PAKISTAN (2004-2009) According to the State Bank of Pakistan, the core inflation in the year (2005) was 8. per cent which has almost doubled since the last year (2004) in which the inflation rate was 3. 8 per cent. During this year the non-governmental borrowing increased by 30 per cent. The two main reasons for high inflation during this peri od were because of excessive government borrowings and the price of wheat. According to the State Bank of Pakistan, government estimated that the inflation rate in the next year would range between 7. 7 and 8. 3 per cent. During the year (2006) there was a decrease in the total inflation of the country (general and food) from 9. 3 to 7. 9 per cent and 12. 5 per cent to 6. per cent respectively. The government took several major steps to bring the inflation down during this year as well by tightening the monetary policy and augmenting the supply of essential commodities through liberalization of import regime. As a result the general inflation declined from 9. 3 per cent (2004-05) to 7. 9 per cent (2005-06) & the non-governmental borrowing in the year 2006 became 23 per cent. During 2007 the core inflation reduced from 7. 5 per cent to 5. 9 per cent, due to tight monetary policy. According to the SBP the food inflation increased from 6. 9 per cent (2006) to 10. per cent (2007) becaus e of supply side constraints in which the prices of some key food staples (including wheat, rice, vegetable, ghee etc,) were increased. Where as comparatively the non-food prices grew at a slower pace since last year and the general Inflation (CPI) declined from 7. 9 per cent to 7. 8 per cent. The inflationary trend in the food prices during the year (2008) increased to 17. 6 per cent as compared to the last year in which the food inflation was 10. 3 per cent, affecting people living standards of low and fixed income groups. The non-food inflation had the same increasing trend as in the year (2007), which was 6. per cent and during the year (2008) was 7. 9 per cent. Although the core inflation was reduced to 5. 9 per cent but during this year it went back to 8. 4 per cent because of the global increase in some commodity, higher utility tariff and by local supply and demand driven prices. Inflation during (2008) indicates that the prices of a few commodities (18) essential food items registered sharp increase particularly during the second half of the fiscal year (2008). Other significant contributors to (2008) upward inflationary trend included house rent, which is the index that measures the cost of construction in Pakistan, racing to 11. per cent by April (2008). The current fiscal year commenced with ease in headlines compared to the same month of previous fiscal year. The consumer price inflation annually was 11. 2 per cent during July (2009) as against 24. 3 per cent in July (2008) and 13. 1 per cent in the previous month. A major increase in the core inflation was witnessed in July (2009) of 17. 6 per cent as compared to July (2008) 8. 4 per cent. The food inflation increased by 6. 1 per cent during this fiscal year. The main reason for this high inflation was due to low export growth relative to import, high oil prices and inadequate foreign apital inflow. Conclusively, one can say that inflation adversely affects the overall economic growth, the financ ial sector development and exploit the vulnerable poor segments of the population. Inflation also decreases the real income and induces uncertainty. Considering such undesirable impacts of inflation on the economy, there's a consensus among the world leading central banks that the price stability is going to be the prime objective of monetary policy and the central banks are committed to lower the inflation in the economy. Hence the State bank of Pakistan should adopt inflation as their main focus of monetary policy, by targeting inflation explicitly or implicitly as and when required. EFFECTIVENESS OF MONETARY POLICY STATEMENT IN PAKISTAN Economic policies aim to increase the welfare of the general public and monetary policy supports this broad objective by focusing its efforts to promote price stability. Embedded in this objective is the belief that persistent inflation would compromise the long term economic prospects of the country. The objective of monetary policy in Pakistan, as laid down in the SBP Act of 1956, is to achieve the targets of inflation and growth set annually by the government. In pursuit of this mandate, SBP formulates the country's monetary policy that is consistent with these announced targets. In my remarks today, I plan to provide perspective on: First, why central banks focus on price stability? Second, how the monetary policy transmission mechanisms work? Third, what are the principal features of Pakistan's monetary policy framework? Fourth, selected thoughts on effectiveness of Pakistan's monetary policy framework Finally, what measures are needed to improve the effectiveness of the monetary policy framework in Pakistan? These questions have been a subject of much debate lately, as monetary tightening – an inevitable policy response for regaining macroeconomic stability – has aroused anxiety but better public understanding of this question will help them to appreciate central bank's monetary policy stance. Why Focus on Price Stability? Monetary Policy Transmission Mechanism The monetary transmission mechanism refers to a process through which monetary policy decisions affect the level of economic activity in the economy and the inflation rate. Understanding the transmission mechanism of monetary policy is crucial for appropriate design and efficient conduct of monetary policy. As monetary policy actions affect policy variables with a considerable lag and with high degree of variability and uncertainty, it is important to predict the possible impact and extent of monetary policy actions on the real variables. Thus, by its very nature, monetary policy tends to be forward-looking. It is also important to know which transmission channels are more effective in terms of transmitting changes in monetary policy actions to ultimate policy goals. Since various financial sector developments particularly regarding introduction of new financial products, technological changes, institutional strengthening, and expectations about future policy, etc can potentially change economic effects of the monetary policy measures, there is a need to regularly update, empirically test and reinterpret monetary policy transmission channels. The impact of monetary policy is perceived to transmit in to the real economic activity through five channels. †¢ The first channel and most widely studied and understood channel of monetary policy transmission relies on the link between changes in the short-term nominal interest rate (induced by changes in the policy rate) and the long-term real interest rate that ultimately affect components of aggregate demand such as consumption and investment in an economy. As such, it is the changes in the long-term real interest rates that have its impact on aggregate consumption, business investment and other components of aggregate demand. †¢ The second channel, known as the credit channel, involves changes in monetary policy that not only affects the ability of firms to borrow money (by affecting their net worth) but also affects the ability of banks to lend money. The strength of this channel depends on the degree to which the central bank has allowed banks to extend loans and the dependence of borrowers on bank loans. These factors are clearly influenced by the structure of the financial system and its regulation. †¢ The third channel of monetary policy transmission focuses on asset prices (other than the interest rate) such as the market value of securities (bonds and equities) and prices of real estate. A policy-induced change in the nominal interest rate affects the price of bonds and stocks that may change the market value of firms relative to the replacement cost of capital, affecting investment. Moreover, a change in the prices of securities entails a change in wealth which can affect the consumption of households. Fourth, a policy-induced change in the domestic interest rate also affects the exchange rate that in turn affects the foreign financial flows, net exports and thus aggregate demand. The strength of the exchange rate channel depends on the responsiveness of the exchange rate to monetary shocks, the degree of openness of the economy, sensitivity of foreign private inflows and n et exports to exchange rate variations, and the net worth of firms and thus their borrowing capacity if they have taken exposure to foreign currency. Moreover, exchange rate changes lead to changes in the domestic price of imported consumption goods and imported production inputs affecting inflation directly. †¢ Since expectations influence the inflation dynamics, there is a fifth channel that is based on the economic agents' expectations of the future prospects of the economy and likely stance of the monetary policy. According to this ‘expectations channel', most economic variables are determined in a forward-looking manner and are affected by the expected onetary policy actions. Thus, a consistent, credible, and transparent monetary policy can potentially affect the likely path of the economy by simply affecting expectations. Monetary Policy Framework in Pakistan Considering the economic and financial market structure in Pakistan, SBP has for sometime pursued a monetary targeting regime with broad money supply (M2) as a nominal anchor to achieve the objective of controlling inflation without any prejudice to growth. The process of monetary policy formulation usually begins at the start of the fiscal year when SBP sets a target of M2 growth in line with government's targets of inflation and growth (usually in the month of May) and an estimation of money demand in the economy. The basic idea is to keep the money supply close to its estimated demand level, as both a significant excess and a shortfall may lead to considerable deviations in actual outcomes of inflation and real GDP growth from their respective targets. Underlying this framework are two strong assumptions: first, there is a strong and reliable relationship between the goal variable (inflation or real GDP) and M2; and second, the SBP can control growth in M2. While containing the M2 growth close to its target level is the key consideration in the current monetary framework, the composition of the money supply does matter and at times requires policy actions even if these actions lead to a deviation in monetary growth from its target level. To understand this point, it is necessary to know the major components of money supply and their relative importance. Net foreign Assets (NFA) and Net Domestic Assets (NDA) of the banking system are the two major components of money supply. The NFA is the excess of foreign exchange inflows over outflows to the banking system, or in other terms it is a reflection of underlying trends in the country's external Balance of Payment (BoP) position. It is estimated by the projected values of all major external transactions such trade, workers' remittances; debt servicing, foreign investment, and debt flows etc. The NDA of the banking system, which primarily consists of credit to the government and the private sector, reflects changes in the fiscal and the real sectors of the economy, If is estimated as a residual of M2 and the NFA. Further break-up of NDA is estimated on the basis of projected credit needs of the government and the private sector. NOW coming to the importance of these components of the money supply, depletion in NFA is generally considered as an unhealthy development. Sharp NFA depletion reflects worsening BOP position and a pressure on exchange rate. In such a case, a higher NDA growth, though helps in expanding M2 to reach ifs target level, may further deteriorate external accounts, sharper depreciation of local currency, and higher depletion of country's foreign exchange reserves. Although since FY07, only the indicative M2 growth target is being announced, SBP also takes into consideration the causative factors for monetary expansion while pursing this target. Considering the changes in monetary aggregates and other economic variables, the changes in monetary policy are signaled through adjustments in the policy discount rate (3-day repo rate). Further, the changes in the policy rate are complemented by appropriate liquidity management mainly through Open Market Operations (OMOs) and if required changes in the Cash Reserve Requirement (CRR) and Statutory Liquid Reserve requirement (SLR) are also made. † Significance of various channels that transmit the monetary policy shocks in Pakistan to the real economy has been analyzed by few economists. Ahmad et al. (2005) found that credit channel is the most ‘important conduit for transmitting monetary policy actions to the real economic activity. Evidence confirms transmission through the active asset price channel and exchange rate channel. According to this study, monetary policy shocks impact real output after a lag of 7 to 11 months. Tasneem and Waheed (2006), on the other hand, investigated whether different sectors of the economy respond differently to monetary shocks. The presence of sector wise differences in the monetary transmission mechanism has profound implications for macroeconomic management as the central bank then has to weigh the varying consequences of its actions on different sectors. Investigating the transmission of changes in interest rate to seven sub sectors of the economy, the authors found evidence supporting sector-specific variation in the real effects of monetary policy. They found that the interest rate shock on manufacturing, wholesale and retail trade, and finance and insurance sectors transmit after a lag of 6 to 12 months. On the other hand, monetary policy shocks have negligible impact on agriculture, mining and quarrying, construction and ownership of dwelling sectors. Generally, historical evidence does reflect that Pakistan has been a high inflation and high interest economy given its inherent structural weaknesses. The role and effectiveness of monetary policy appears more visible in the 2000s when financial sector reforms started bearing fruits in terms of a more market based money and foreign exchange markets. Entering the 21sf century, the loose monetary policy stance in the face of low inflation, low growth and low twin deficits, along with structural measures to open up the economy and alleviate some first round constraints, triggered the economy on a long-term growth trajectory of above 7 percent. Monetary policy stance was however altered as the inflationary pressures started to build up in 2005. At the end of the fiscal year, the economy, which had been showing sustained steady growth since FY01, registered a historically high level of growth (9 percent), average inflation rose sharply (9. percent) and the external current account balance turned into deficit (-1. 4 percent of GDP) Coinciding with these developments, the fiscal module started to show signs of stress as the fiscal balance was converted into a deficit and the stock of external debt and liabilities, which had been declining since FY00 after the Paris Club rescheduling, began increasing. These indicators largely capture t he high and growing aggregate demand in the economy on account of sustained increase in peoples' income. With the emerging domestic and global price pressures, SBP tightened its monetary policy after a prolonged gap of a few years. The efforts to rein-in inflation, however, proved less effective due to a rebound in international commodity prices and a rise in domestic food prices later on. The rise in the international commodity prices, particularly oil, exacerbated the fight against inflation. The international oil prices (Arabian Light) rose from US$27. 1 at end 2004 to US$50. 9 at end 2006, whereas international food prices rose by 24, 24 and 21 percent during 2004, 2005 and 2006 respectively. Realizing the complications of monetary management and adverse global and domestic economic developments, the implementation of SBP monetary policy during FY06 varied significantly from the preceding fiscal years. In addition to the rise in the policy rate, the central bank focused on the short-end of the yield curve, draining excess liquidity from the interbank money market and pushing up short-tenor rates. Consequently, not only did the overnight rates remain close to the discount rate through most of the year, the volatility in these rates also declined. These tight monetary conditions along with the Government's administrative measures to control food inflation helped in scaling down average inflation from 9. 3 percent in FY05 to 7. 9 percent in FY06, within the 8. 0 percent annual target. This was certainly an encouraging development, particularly as if was achieved without affecting economic growth as the real GDP growth remained strong at 6. 6 percent in FY06. Further Strengthening of Tight Monetary Policy For FY07, the government set an inflation target of 6. 5 percent. To achieve this, a further moderation in aggregate demand during FY07 was required as the core inflation witnessed a relatively smaller decline in FY06, indicating that demand-side inflationary pressures were strong. In this perspective, SBP further tightened its monetary policy in July 2006 raising the CRR and SLR for the scheduled banks; and its policy rate by 50 basis points (bps) to 9. 5 percent. Moreover, proactive liquidity management helped in transmitting the monetary tightening signals to key interest rates in the economy. For instance, the Karachi Inter Bank Offer Rate (KIBOR) of 6 months tenor increased from 9. 6 percent in June 2006 to 10. 02 percent at end-June 2007 and the banks' weighted average lending and deposits rates (on outstanding amount) increased by 0. 93 percentage points and 1. 1 percentage points, respectively, during FY07. In retrospect, it appears evident that monetary tightening in FY07 did not put any adverse impact on economic growth, as not only was the real GDP growth target of 7. 0 percent for FY07 was met, the growth was quite broad based. At the same time, the impact of the monetary tightening was most evident in the continued deceleration in core inflation during FY07. One measure of core inflation, the non-food non-energy CPI, continued its downtrend from YoY high of 7. 8 percent in October 2005, to 6. 3 percent at end-FY06, and to 5. 1 percent by the end of FY07. However, much of the gains from the tight monetary policy on overall CPI inflation were offset by the unexpected rise in food inflation. On the downside, however, broad money supply (M2) grew by 19. 3 percent during FY07, exceeding the annual target by 5. percentage points. Slippages in money supply growth largely stemmed from an expansion in NFA due to the higher than expected foreign exchange inflows. Equally stressful was the impact of Government borrowings from the central bank during the course of the year. The pressure from the fiscal account was due to mismatch in its external budgetary inflows and expenditures. With the privatization inflows and th e receipts from a sovereign debt offering at end-FY07, the Government managed to end the year with retirement of central bank borrowings, on the margin. By end-FYO7, SBP holdings of government papers were still around Rs 452 billion, despite a net retirement of Rs 56. 0 billion during the year. Another major aberration in FY07 emanated from the high level of SBP refinancing extended, for both working capital and long-term investment, to exporters. Aside from monetary management complexities, these schemes have been distorting the incentive structure in the economy. FY08 and Beginning of FY09: More Challenging FY08 was an exceptionally difficult year. The domestic macroeconomic and political vulnerabilities coupled with a very challenging global environment caused slippages in macroeconomic targets by a wide margin. After a relatively long period of macroeconomic stability and prosperity, the global economy faced multifarious challenges: (i) hit by the sub prime mortgage crisis in U. S in 2007, the international financial markets had been in turmoil, the impact of which was felt across markets and continents; (ii) rising global commodity prices, with crude oil and food staples prices skyrocketing; and (iii) a gradual slide in the U. S dollar against major currencies. Combination of these events induced a degree of recessionary tendencies and inflationary pressures across developed and developing countries. Policy-makers were gripped with the dual challenge of slowdown in growth and unprecedented rising inflationary pressures. Central bankers faced a demanding task of weighing the trade-off between growth and price stability. With the exception of few developed countries, most central banks showed a strong bias towards addressing the risk of inflation and responded with tightening of monetary policies. On the domestic front, the external current account deficit and fiscal deficit widened considerably to unsustainable level (8. 4 and 7. 4 percent of GDP). The subsidy payments worth Rs 407 billion by Government, which account for almost half of the fiscal deficit, shielded domestic consumers from high international POL and commodity prices and distorted the natural demand adjustment mechanism. While the government passed on price increase to consumers, the rising international oil and other importable prices continued to take a toll on the economy. Rising demand has cost the country dearly in terms of foreign exchange spent on importing large volumes of these commodities. Rising fiscal deficit and lower than required financing flows resulted in exceptional recourse of the Government to the highly inflationary central bank borrowing for financing deficit. At the same time the surge in imports persisted. As a result, inflation accelerated and its expectations strengthened due to pass through of international oil prices to the domestic market, increases in the electricity tariff and the general sales tax, and rising exchange rate depreciation. These developments resulted in a further rise in headline as well as core inflation (20 percent weighted trimmed measure) to 25 percent and 21. 7 percent respectively in October 2008. Considering the size of macroeconomic imbalances and the emerging inflationary pressures, SBP remained committed to achieve price stability over the medium term and thus had to launch steeper monetary tightening to tame the demand pressures and restore macroeconomic stability in FY09. SBP thus increased the policy rate from 13. 5 to 15%. What Needs to be Done to Improve the Effectiveness of Monetary Policy? Apart from taking policy measures to address the emerging challenges, SBP also introduced structural changes in the process of monetary policy formulation and conduct to make the monetary policy formulation and implementation more transparent, efficient, and effective. Specifically, during the last couple of years, SBP focused on †¢ Institutionalizing the process of policy formulation and conduct †¢ Stepping up movement towards a more market based credit allocation mechanism Developing its analytical and operational capacity †¢ Improving its capabilities to assess future developments to act proactively and †¢ Improving upon the communication of policy stance to the general public. However, the following areas need attention and are keys or effective monetary management. 1. Effectiveness of monetary and fiscal co-ordination would be helpful. Section 9A and 9B of the SBP Act (amended in 1994) art iculates the institutional mechanism for economic policy making and co-ordination and defines the ground rules for both the process and the policy making. However, the track record of the Monetary and Fiscal Policies Co-ordination Board (MFPCB), established in February 1994 that requires quarterly meetings of the SBP and the government, has been less than satisfactory. Furthermore, the sequencing of economy-wide projections is done in isolation of the budget and monetary policy making process, and the budget making process has not respected the monetary compulsions. With rising spending and stagnating revenues, the budget assumes at the start of the year certain recourse to the central bank rather than treat it as mere ways and means advances. . For effective analysis of developments and policy making, timely and quality information is extremely important. However, due to weaknesses in the data collection and reporting mechanism of the various agencies of the country, information is not available with desired frequency and timeliness. Also there are concerns over the quality of data. Unlike many developed and developing countries, data on quarterly GDP, employment and wages, etc is not available in case of Pakistan. Moreover, the data on key macroeconomic variables (such as government expenditure and revenue, output of large-scale manufacturing, crop estimates, etc) is usually available with substantial lags. This constrains an in-depth analysis of the current economic situation and evolving trends, and hinders the ability of the SBP to develop a forward-looking policy stance. 3. Unlike many countries, both developed and developing, there is no prescribed limit on government borrowing from SBP defined in the SBP Act or the Fiscal Responsibility and Debt Limitation (FRDL) Act 2005. Besides being highly inflationary, government borrowing from SBP also complicates liquidity management. Borrowing from the central bank injects liquidity in the system through increased currency in circulation and deposits of the government with the banks. In both cases, the impact of tight monetary stance is diluted as this automatic creation of money increases money supply without any prior notice. Moreover, access to potentially unlimited borrowings from the SBP provides little incentives to the government to put the fiscal accounts in order. Therefore, the foremost task to improve the effectiveness of monetary policy is to prohibit the practice of government borrowings from the SBP. In this regard, appropriate provisions are required to cease or limit government recourse to central bank financing through amendments in the SBP Act and the FRDL Act 2005. 4. Another issue is to make a clear distinction between exchange rate management and monetary management. Currently, there is a general perception that the State Bank is bound to keep the exchange rate at some predefined level and any movement away from this level is then considered as an inefficiency of the SBP. There is a need to understand that for an open economy, it is impossible to pursue an independent monetary and exchange rate policy as well as allowing capital to move freely across the border. Since the SBP endeavors to achieve price stability through achieving monetary targets by changes in the policy rate, it is not possible to maintain exchange rates at some level with free capital mobility. This can only be achieved by putting complete restrictions on capital movements, which is not possible. SBP's responsibility is to ensure an environment where foreign exchange flows are driven by economic fundamental and are not misguided by rent seeking speculation. 5. Finally, based on experience particularly gained during the last two months is to differentiate between liquidity management and monetary policy stance. Recently, when the banking system experienced extraordinary stress due to shallow liquidity in the system, rumor mongering heightened the general public anxiety over few banks' sustainability. Consequently, the SBP had to intervene in the market by injecting ample liquidity through various measures. In some quarters, these changes were deemed as a change in the bank's tight monetary policy stance. However, this was not the case and the bank had to clearly and repeatedly communicate that the existing stance is being continued. Later on, the bank further tightened its monetary policy. It must be understood that quite often, liquidity management can drive the market interest rates away from the direction desired under the monetary policy stance. However, this has to be temporary and ‘the interest rates are bound to move in the policy stance direction. To resolve this issue, the SBP is studying various options, including the introduction of a â€Å"Standing Deposit Facility† to keep the interbank rate within a corridor. In conclusion, it is imperative that above steps be taken urgently. Over the period, however, this needs to be complemented with much deeper structural reforms to synchronize and reform the medium term planning for the budget and monetary policy formulation process Several studies and technical assistance have provided extensive guidance in this area, but the lack of capacities and short term compulsions have often withheld such reforms. What is important is to recognize that a medium term development strategy, independently worked out, would help minimize one agency interest which has often been a source of co-ordination difficulties. It would also help the budget making process more rule based than the incrementally driven process to satisfy conflicting demands. THE RECENT DEVELOPMENTS IN MONETARY POLICY (2007-2009) The SBP has kept its tight monetary policy stance in the period July 01, 2008-April 20, 2009. The policy rate was adjusted upward in November 2008 to shave-off some aggregate demand from the economy and kept constant in January 2009. However, noticing visible signs of demand compression enabled the SBP to reduce 100 basis points on April 20, 2009. During July 01, 2008-April 18, 2009, money supply (M2) expanded by 1. 6 percent against the target of expansion of 8. 0 percent for the year and last year expansion of 8. 1 percent in the comparable period of last year. The reserve money witnessed contraction of 2. 2 percent in this period as against expansion of 10. 3 percent in the comparable period of last year. Net domestic assets (NDA) have increased by Rs. 307 billion as compared to increase of Rs. 627. 5billion in last year. However, it is showing an increase of 7. 6 percent in stock during this period, whereas, last year the growth in stock was 20. 4 percent in the comparable period. Net foreign assets (NFA) have recorded a contraction of Rs. 263. 9 billion against the contraction of Rs. 356. 4 billion in the comparable of last year [See Table-6]. {draw:frame} Government borrowing for budgetary support has recorded an increase of Rs. 240. 5 billion as compared to Rs. 336. 0 billion in the comparable period of the last year. The government has over performed against freezing the net borrowing from SBP at Rs. 57 billion in 2008-09 and the SBP financing has shown a net increase of Rs. 103. 3 billion and financing from scheduled banks witnessed a net increase of Rs. 137. 2 billion during July 01, 2008-April 18, 2009. Credit to private sector witnessed a net increase of Rs. 55. 4 billion during July 01, 2008-April 18, 2009 as compared to Rs. 359. 7 billion in the comparable period of last year. The stocks st ill went up by 9. 1 percent. SBP undertook aggressive monetary tightening during the period, further increasing the policy rate by 300 bps in two rounds. On a cumulative basis, this means a 550 bps increase during the last 18 months up to March 2009. However, the policy rate was decreased by 100 bps on April 20, 2009. These policy measures were in response to carryover of macroeconomic stresses of the preceding year and increase in real aggregate demand. Monetary tightening has worked in the right direction. Weighted average lending rate have witnessed slight decline from 15. 5 percent in October 2008 to 14. 8 percent in February 2009. Weighted average deposit rate on the other hand has increased from 6. 2 percent in October 2008 to 7. percent in February 2009 which implies narrowing of the spread amidst intensive deposit mobilization efforts on the part of the banks. The weighted average yields on 6 months T-bill has declined by almost 250 basis points to 11. 5 percent in March 2009 as against 14 percent in November and December 2008 [See Fig-2]. {draw:frame} Recent Discount Rate in Pakistan (2007-2009) During 2007-08, the SBP contin ued with tight monetary policy stance, thrice raising the discount rate and increased the Cash Reserve requirement (CRR) and Statutory Liquidity Requirement (SLR). In the light of continued inflationary buildup and increasing pressures in the foreign exchange market, the SBP announced a package of monetary measures on May 21, 2008 that included;(i) an increase of 150 bps in discount rate to 12 percent; (ii) an increase of 100 bps in CRR and SLR to 9 percent and 19 percent, respectively for banking institutions (iii) introduction of a margin requirement for the opening of letter of credit for imports (excluding food and oil) of 35percent, and (iv) establishment of a floor of 5percent on the rate of return on profit and loss sharing and saving accounts. The year 2008-09 is characterized by a reduction in CRR by 2 percent in two equal phases to help the liquidity issues of the banking system. Later on, the SBP announced a 200 bps hike in discount rate to 15 per cent on November 12, 2008 in response to persistent hike in core inflation and current account deficit in a last ditch effort to demand compression. Following a slight reversal in the mounting inflationary and demand pressures, the SBP announced a downward adjustment of policy rate by 100 bps on April 20, 2009. SBP’s tight monetary policy and rationalization of fiscal subsidies and expenditure controls are the key factors that contributed a reasonable progress towards macroeconomic stability. The private consumption grew by 5. 2 percent in real term during 2008-09 which implies that notwithstanding substantial reduction in the fiscal and current account deficits, demand pressures are still confronting monetary management. {draw:frame}

Amin Maalouf’s Idea Essay

My understanding of Amin Maalouf’s concept on identity is that human identity is based on an individual’s environment. He defines identity into two categories. One that is inherited through our elders and cultural beliefs â€Å"vertical†, and another that exist according to our generational influence, â€Å"horizontal†. The two categories create our identity as a human and is the source of our behavior. My experience with the vertical heritage is my belief in Christianity. My ancestors and the community I was raised in have traditionally taught me to celebrate religious holidays like Christmas and Easter. I also grew up in a small neighborhood with Christian peers. They have influenced the way I behave and interact by helping to shape my morals. My experience with the â€Å"horizontal† is the communities I have been introduced to, such as, the public and private school environments. They have broadened my personality with their social aspects. One example of what Maalouf is saying is my switch from public to private school. My personality was much different in public school than it was in private. In my public school the social standard for academic progress was average. The fact that there was no assigned dress code distracted me because I would attempt to impress others with my appearance. This influenced my train of thought, behavior and ultimately my identity, until I was placed into a different setting. When I made the switch to private school the distraction of looking different was taken away, and expectations were higher. My surrounding influenced me again and I became more focused on things that mattered and more questionable of my beliefs. What I gained from both these settings was my horizontal inheritance. For example, the music that I listen to and the hobbies I enjoy. Maalouf’s point is that no matter your vertical, your horizontal has a bigger affect on your identity, and since the horizontal is based on contemporaries, you are based on the subjects around you. He points out that there is a gap between what we think we are and what we actually are in reality. We may know we are different but what we don’t realize is in reality we are only becoming identical through arguing are differences. I believe this is a magnificent insight on identity. Mankind changes the world around us and if we all do the same, we end up in each other’s world. We are becoming more and more identical to each other through compromise from arguing our differences because we learn to live with each other. When we accept differences they soon become norms, and once they are norms, they become a standard. I agree with Amin Maaloufs concept on identity.