Behavior Modification and Needs

In many companies, managers struggle to improve or motivate employee actions or behaviors to get desired results. Many managers turn to organizational behavior modification. Behavior modification is used in organizations to shape individual behavior though the use of positive and negative consequences. Organizational behavior modification relies on several factors including, the law of effect, alternative consequences, schedules of reinforcement, and understanding human needs, to successfully operate.The law of effect states that a person tends to repeat behavior that is accompanied by a favorable consequence. For example, if an employee is recognized and encouraged for going above and beyond for a customer, the employee is more likely to repeat this action. For the law of effect to remain effective, a manager needs to recognize what the employee see’s as major consequences, and must be able to respond in a way that the employee will see the connection between their actions an d the consequence.An employee doesn’t always have to learn from personal experience. The theory of social learning suggests that employees are likely to learn by observing the actions of others and understanding the consequences that others are experiencing. Through the law of effect, the employee is able to connect the relation of; good actions equal good consequences, therefore motivating the employee to act in a positive way. Once a manager has indentified the employee’s behavior, the manager needs to decide on the alternative consequences he/she wants to apply.Alternative consequences include: positive reinforcement, negative reinforcement, punishment, and extinction. The key to alternative consequences is to make the consequence contingent on the employee’s correct behavior. Through the use of these consequences, employees and managers will be able to accurately assess the result or planned result of an action. Once a manager monitors an employee’s b ehavior and learns how often or how well the employee is performing, the manager can determine the type of consequence to be applied.Once a frequency has been established the manager can create a standard, or a baseline, against which employee improvements can be made. A manager will then decide of continuous reinforcement or partial reinforcement is called for. Continuous reinforcement is when reinforcement accompanies each correct behavior by an employee. Partial reinforcement occurs when only some of the correct behaviors are reinforced. Scheduling reinforcement allows a manager to stay consistent in expectations and consequences.Though the behavior modification model is popular amongst organizations, many have criticized it’s functionality from a human needs perspective. Human needs are a driving force in individual decision making. The behavior modification model focuses on the nature of the items that may motivate a person. However, a manager cannot observe or monitor a person’s needs. Because of this, it is important that a manager understand employee needs when using the behavior modification approach

Race in America since the 1960s Essay

America has come a long way since the dark days when slavery marred the continent. The journey to equality was not always a smooth one, and only in the last half-century have African-Americans been granted their complete rights and freedoms. Now that they have these equal rights, they are taking their place to take advantage of their equal opportunities, but there still seems to be a glass ceiling preventing their further progress. White Americans still cite racial progress in many areas, while the reality remains that much of this progress is illusion. With the election of Barack Obama as the President of the United States, it seems safe to say that racial relations in the country have certainly improved in the past fifty years. In the 1950s, many African-Americans could not even vote in many parts of the country, with racist leaders and citizens doing everything in their power to deny this most basic of rights. Once desegregation took effect and was enforced by the federal government, it seemed that African-Americans had finally achieved equality. However, this was largely a myth based on the horrible conditions they once faced, and the current conditions still often view them as a marginalized race. Couple this with the massive influx of Latin Americans into the U. S. , and race relations are just as explosive as they were in the 1960s. One program designed to aid racial equality is affirmative action, which has been both a blessing and a curse for minorities. Originally conceived as a means to redress discrimination, affirmative action has created racial preferences that have instead promoted discrimination. And rather than fostering harmony and integration, these preferences have divided many businesses and college campuses across the country. In no other area of public life is there a greater disparity between the rhetoric of preferences and the reality than with affirmative action. Many have cited lesser qualified applicants hired or accepted to colleges based on race, not qualifications or need. If preferences were truly meant to remedy disadvantage, they would be given on the basis of disadvantage, not on the basis of race, so that a poor, qualified white student would stand a better chance of being admitted than the under-qualified son of a black doctor. This illustrates a problem with the idealism of affirmative action and how remedying some racial issues have merely created unfairness in other areas. Instead of a remedy for disadvantage, many supporters now claim that preferences promote â€Å"diversity. † This same push for â€Å"diversity† also has led colleges like Stanford University to create racially segregated dormitories, racially segregated freshman orientation programs, racially segregated graduation ceremonies and curricular requirements in race theory and gender studies (Sacks & Thiel, 1996). But if â€Å"diversity† was really the goal, then preferences would be given on the basis of unusual characteristics, not on the basis of race. The underlying assumption—that only minorities can add certain ideas or perspectives—is offensive not merely because it is untrue but also because it implies that all minorities think a certain way. While affirmative action is a noble effort, it is perhaps antiquated. Today, while African-Americans enjoy greater freedom and equality, Latinos have come to represent the current racial crisis. Many conservative Americans demand that they learn English, adopt American culture, and assimilate or leave. Additionally, Middle Eastern Americans are finding life equally difficult and face often violent retributions for crimes that they did not commit. This xenophobic behavior may be largely from the scares encouraged by global terrorism, but may also be representative of the fact that not much has really changed except the language used to discuss race. The only way to truly understand the state of race in America and make a balanced assessment is to measure the equality of each race. The sad state is that many of the minorities in America are still marginalized, make less money, and have far less influence politically than the dominant white culture. Progressive and liberal legislation may continue to chip away at long held racial prejudices, but Americans cannot achieve complete equality unless it is an endeavor equally valued by all. Unfortunately, as history has shown, those in power will be reticent to relinquish that power, and those in power in America are still largely male, largely white, and largely though subtly fearful of difference. With a president with parent that are black and white, much of the racial future of America rests with a man that represents better than anyone the progress made in the past fifty years, as well as the distance left to travel until true racial harmony is achieved.

Motivation in the Classroom: Dealing with Disruptive Behaviour

Motivation in the Classroom: Dealing with Disruptive Behaviour INTRODUCTION Research studies have shown the importance of motivation in supporting learning in education (Lai, 2011) and in raising educational attainment among pupils. A collective theme within the review is that a pupil’s behaviour is closely linked to the theory of motivation (Ikeogu, 2011). The transition into secondary school life has been shown to affect student’s self-competency, reduces their motivation and engagement in the learning process (Klem Connell, 2004; Jacobs et al., 2002; Wigfield Eccles, 2000). Ultimately understanding what motivates pupils is essential in order to influence and encourage constructive learning behaviour. It has been proposed that motivating pupils to learn will result in positive behaviour and higher academic achievement and reduce disruptive behaviour (Kane et al., 2004). This literature will investigate how motivational theories elucidate pupil’s behaviour in a classroom environment which will help teachers develop strategies to deal with such behaviour and create a constructive learning environment. The following study will firstly explore the theory of motivation in a pedagogical context, the factors that motivate learners and the relationship between motivation and disruptive behaviour. Several techniques are reviewed to understand and control disruptive behaviour as well as different theoretical motivational theories such as Maslow, Deci and Ryan which have been shown to determine behavioural hierarchy of confident behaviour. 1.1 Theory of Motivation Korb (2012, p.6) describes motivation as the cognitive state, intramural need, or ‘external goal’ that drives individuals. Romando (2007) agrees, describing motivation as one’s determination and drive that triggers behaviour towards the desired goal. Ball (1977) describes motivation as a series of performances brought upon by stimulating, guiding and sustaining student’s behaviour. McLean (2003, p.7) defines motivation as the need to learn, and the ability to manage any challenges or hurdles in order to realise their goal (Martin, 2008). The resulting behaviour depends upon the pupil’s level of motivation (Guay et al., 2010). Motivation plays an influential role in affecting student’s level of enjoyment in learning at school and can trigger either disruptive or constructive behaviour among pupils (Guay et al., 2010, p. 712). 1.2 Factors that motivate learners To understand pupil’s behaviour, the study needs to consider several factors that effects motivation. These are: ‘ the education they receive by teachers (Teven McCroskey, 1997), ‘ student-teacher relationships (Kelly Hansen, 1987; Johnson, 2008), ‘ pressures and expectations from parents (Dandy Nettelbeck, 2000) and ‘peers’ (Wigfield Tonks, 2002, p.2383), ‘ classroom environment (Qin et al., 1995), and ‘ school culture and system (Anderman Maehr, 1994). Wright’s (2012) study argues that pupils who have low levels of motivation misbehave out of frustration due to failure of the school system to meet the needs of the individual i.e. activities are too challenging, and lesson instructions are too vague or monotonous (Skinner et al., 2005; Linnenbrink Pintrich, 2002). Power et al. (1967) states that family and social background are the key influencers on pupil’s motivational level or lack of and ultimately their behaviour outcome in class. Galloway (1995) disagrees, stating that teachers are the main influencer and that home background employ little influence on pupil’s behaviour. He claims that absence of a positive interaction between teacher and pupils negatively impacts on student’s behaviour. 2. Links between Motivation and Classroom Disruptive Behaviour According to Brophy (1999), the theory of motivation has shifted from a quantifiable measurement to a behaviourist perspective in which the use of a stimulus can be used to reinforce the desired behaviour. Schools use this mechanism to encourage and reward positive behaviour and sanction negative disruptive behaviour with an aversive stimulus i.e. punishment exercise (Ikeogu, 2011, p.12). According to Seifert (2004, p.147) pupil’s motivational level is understood by their display of behaviour. Hudley et al. (2007, p.4) agrees with this assertion that that there is a link between behaviour and motivation and that schools need to diminish the desire to disrupt and increase the incentive to succeed. Disruptive behaviour can be classified as challenging, unacceptable and interruptive behaviour according to Galloway et al. (1982). Nour (2004) perceives distractedness as the most frequent disruptive behaviour in schools in China (Ding et al., 2008; Shen et al., 2009). Accordin g to other studies, disruptive behaviour in England (Arbuckle Little, 2004) and Australian schools (Ross et al., 2008) is perceived as consistent talking throughout the lesson. Browne (2012) defines disruptive behaviour as being disobedient and aggressive. Aly and Gracey (2013) state that using technology during class, reading unrelated material etc. is disruptive. Disruptive behaviour can interrupt positive social interaction, engagement, contribution and overall impede a proactive classroom environment (Doyle, 1986). Pupils’ motivational level are forecasters of performance in the classroom (Pintrich DeGroot, 1990) which helps explain pupils’ cognitive engagement and classroom behaviour (Miller et al., 1996). According to Skinner et al. (2008) using a motivational framework of ‘engagement vs. disaffection’ helps explain pupils’ behavioural and emotional input in classroom activities (Pierson Connell, 1992; Ryan, 2000; Wentzel, 1993) (see F ig.1). Educators can use this framework to measure student’s engagement level at school in order to prevent truancy by recognising early signs of disconnection (Appleton et al., 2008). Figure 1: A motivational theory of engagement and disaffection in the classroom According to Seifert (2004) student’s behaviour or motivation is determined by their emotional response to a task (Boekarts, 1993; Seifert O’Keefe, 2001). In order for students to develop positive classroom behaviour, students must set goals, become more competent and involved, and gain social belonging (National Research Council and Institute of Medicine, 2004). Ikeogu (2011) states that pupil’s lack of motivation and disruptive behaviour in the classroom is attributable to the teacher’s pedagogy and teaching style (Galloway et al., 1998). In order to achieve an effective learning environment, a supportive and nurtured teacher-student relationship needs to develop (Steer, 2005). Adopting effective motivational techniques can help teachers improve pupil’s engagement in class and ultimately raise classroom attainment. MOTIVATIONAL THEORIES To motivate students to climb the hierarchy, teachers need to understand disruptive classroom behaviour in order to achieve appropriate behaviour (Korb, 2012). Abraham Maslow designed a pyramid (Maslow’s Hierarchy of Needs, see Figure 2) to identify individual’s basic human needs. When pupils satisfy the most basic deficiency needs (physical and safety), they then climb the hierarchy towards the developed levels. Children with a stable, supportive home (high level of safety and security) tend to climb the hierarchy to achieve self-actualisation, as they do not have the same needs to seek attention. Those who are stagnant at the basic needs level are more susceptible to disruptive behaviour in the classroom as they are more prone to act-up. According to Korb (2012, p.6), pupils may seek attention in the classroom, either positive or negative if they don’t receive this at home. They may display signs of low self-esteem by being destructive and lack powers of concentration. Figure 2: Basic Human Needs. Source: Adapted from Maslow (1943). McClelland’s theory (Acquired Needs Theory) states that individuals are motivated according to three basic needs; achievement; power; and relationship (Miner, 2006). Maslow distinguished the discrete stages of needs and the transition amid these needs, while McClelland states that individuals are at different stages of elevated needs than others and their experiences eventually change pupil’s needs (Kirstein, 2010). Motivational theories proposed by Maslow (1970), McClelland (1985), and Deci (1980) associate the growth of self to psychological needs and emotional processes which classifies pupil’s behaviour according to their needs. According to Maslow, to satisfy pupil’s deficiency needs, teachers need to create an emotionally and physically protected and secure classroom, and take interest in pupil’s lives to appeal to their sense of belonging etc. (Biehler and Snowman, 1997). To understand and address disruptive classroom behaviour, Kaplan and Maehr (1999) used the Achievement Goal Theory which established a linkage between disruptive behaviour and performance-approach goals, performance avoidance goals, and positive behaviour was associated with mastery goals. Self-Determination Theory was also critically analysed in relation to disruptive behaviour. 3. Achievement Goal Theory Achievement Goal Theory refers to individual’s motives to engage in attainment-based behaviours (Pintrich, 2000, p. 93). This theory can influence how students tackle goals in an achievement scenario (Agbuga et al., 2010, p.279). Undertaking goals results in cognitive and behavioural outcomes, which helps understand pupil’s behaviour (Elliot Dweck, 1988, p.11). Jagacinski and Nicholls (1987) states that failure in a task can cause negative behavioural outcomes. Nicholls (1984) proposed the dichotomous model consisting of two major goals; mastery (learning goals), and performance (ego goals). Mastery goal focuses on development of pupil’s academic capability and competence while individuals pursuing performance goals are more engrossed with the quality of their performance in relation to others and people’s perception of their performance (Seifert, 2004). Roeser et al. (1996) agrees that pursuing mastery goal is centred on gaining knowledge, while pe rformance is focused on demonstrating knowledge. Pupil’s behaviour is determined by which goal they pursue. Example, according to Veiga et al. (2014), pupils who are mastery orientated achieve their goals (Linnenbrink Pintrich, 2002), are intrinsically motivated (personal enjoyment of the lesson) (Elliot and Harackiewicz, 1996, p.462) and therefore display positive behaviour (Ryan Patrick, 2001), and higher level of engagement in class (Ryan Pintrich, 1997). Encouraging pupils to take control of their learning and boosting self-confidence discourages disruptive behaviour and promotes a more positive behaviour (Pintrich, 2000). While in a performance goal orientated classroom, those pursuing to surpass their peers have a tendency to exhibit disruptive behaviour (Agbuga et al., 2010) and reduced level of engagement (Hughes et al., 2010). Pupils pursue performance goals as a defence mechanism to protect themselves from negative opinions of their competence, or receive po sitive acknowledgement of their competence (Dweck Legget, 1988; Seifert O’Keefe, 2001), and to come across superior to others (Nicholls et al., 1990). According to Roeser et al. (1996) performance goals are uncomplimentary to learning, as they lower pupil’s confidence in their competence to successfully complete tasks in class (Dickinson, 1995) by comparing and evaluating pupils against their peers and reducing ‘self-efficacy’, which negatively effects motivation and confidence levels (Schunk Mullen, 2012). Dweck (1986) states that pupils with low confidence can exhibit maladaptive behaviour. Kaplan and Maehr (1999) found that pupils seeking performance goals displayed signs of disruptive behaviour i.e. talking out of turn, teasing etc., which can lead to cheating and school absenteeism (Anderman Midgley, 2002; Roeser Eccles, 1998). Whereas mastery goals are learning orientated which results in more focus on successfully completing tasks and great er task-focused performance (Kaplan et al., 2002). 3.1 Mastery Goal orientated classroom A mastery orientated classroom should be fostered to motivate students effectively and promote positive behaviour and engagement in class. To drive students, teachers should promote self-sufficient learning, recognise and reward achievement, evaluate student’s effort and progress, encourage teamwork, designate a realistic time to complete tasks (Veiga, et al., 2014), communicate clear and concise lesson tasks, use alternative teaching and learning strategies, manage classroom behaviour and encourage pupil to give their opinion (Zyngier, 2007). Multiple perspectives were proposed in studies to analyse pupil’s behaviour. Dweck (1999) differentiated between performances and learning goals, and Nicholls (1989) proposed performance and mastery goals. Elliot and Harackiewicz (1996) further extended and challenged these two goals and included the performance-avoidance goal, forming a ‘trichotomous’ goal framework (mastery, performance, and performance avoidance goals) as an extension of the dichotomous model (Elliot and Church, 1997; McGregor Elliot, 2002; Ames, 1992). 3.2 Performance-Avoidance Theory According to Middleton and Midgley (1997) anxiety is a common emotion related with performance avoidance goals (Bong, 2009; Duchesne Ratelle, 2010). Avoidance or difficulties completing tasks can cause anxiety which may trigger pupils to play up to alleviate any negative emotions. Pupils may engage in disruptive behaviour as a defence mechanism to avert carrying out the activity to avoid humiliation and safeguard their sense of value (Seifert, 2004, p.144). Covington (1984) concurs that students would rather feel guilty about not doing the work rather than feel shamed due to low ability. 4. Self-Determination Theory Deci and Ryan (1985, 2000) cultivated the Self-Determination Theory (SDT) to understand and develop pupil’s motivation and the anticipated behavioural outcome which follows. SDT explicates how pupil’s interaction with their classroom conditions can either encourage or impede pupil’s positive contribution, drive, and engagement (Reeve, 2012). SDT presumes that students no matter their background, age etc. are self-motivated and integrally motivated to participate academically in class (Deci Ryan, 1985, 2000; Vansteenkiste et al., 2010). SDT addresses the features of intrinsic and extrinsic motivation. Intrinsic stimulus is the preferred motivational method to facilitate effective learning (Ryan Deci, 2009), as it involves one’s own decision to participate in the lesson out of enjoyment and interest. Intrinsically motivated pupils engage in a more profound learning, better quality of work, and exhibit positive behaviour compared to extrinsic motivatio n. According to SDT, to become intrinsically motivated schools need to facilitate ‘three basic psychological needs’; autonomy, competence, and relatedness (Kusurkar et al., 2011). Structuring lessons based on the needs of the pupils, helps to facilitate self-determined motivation. Promoting autonomous motivation contributes to better task-related behaviour which reflects real interest in the subject (Kusurkar et al., 2011). According to Kusurkar et al. (2011) appealing to their intramural needs to effectively stimulate proactive behaviour is more effective that using incentives to reinforce desired behaviour. MOTIVATIONAL TECHNIQUES TO CONTROL DISRUPTIVE BEHAVIOUR Effective motivational techniques help promote positive behaviour and reduce disruptive behaviour. Positive Behavioural Support (PBS) strategies has proven favourable in studies to transform disruptive and challenging behaviour and promote positive behaviour which aid effective learning in class (Ausdemore et al., 2005; Feinstein, 2003; McCurdy et al., 2007). This proactive approach explores the source of the behaviour, identifying undisruptive responses to manage challenging behaviour, reward desired behaviour and reduce rewarding disruptive actions, and decreasing the course components that initiate difficult behaviour. PBS strategies involves creating a positive, organised and consistent classroom, increasing autonomy, amending and differentiating the curriculum to meet individuals needs and abilities, acknowledging and rewarding positive behaviour, and teaching coping skills and behaviours to express pupil’s emotions and needs (Ruef et al., 1998). Carr et al. (1994) ag rees that PBS does not involve eradicating negative behaviour but rather to understand why pupils behave in that manner and to substitute disruptive behaviour with positive proactive behaviour’. 5.1 Motivating students with Positive Reinforcement (rewards and praise) Rewards and praise are used as a tool to reinforce and develop the desired classroom behaviour, to attain skills or sanction maladaptive behaviour. They are a tool used to inspire pupils to attain skills (Ruef et al., 1998) and should appeal to the pupil’s needs in order to motivate them. According to Ruef et al. (1998) and Walker et al. (1995) sanctioning bad behaviour is counterproductive and such action results in hostility, destruction, tardiness, absenteeism, and quitting school. Positive reinforcement (PR) is more effective (Frisoli, 2008). Wheatley et al. (2009) agrees that positively reinforcing desired behaviour decreases undesired behaviour. PR encourages pupils to engage in activities and behaviour out of personal pleasure e.g. reading (Lepper et al., 2005), inevitably enhancing pupil’s intrinsic motivation in and outside of school settings (Willingham, 2005). According to Willie (2002), introducing ‘mystery motivators’ positively reinforce s good behaviour which involves providing an unknown reward. Similar studies by Moore and Waguespack (1994) and Kehle et al. (1998) agrees that the ‘mystery motivator’ approach shows favourable results in improving disruptive classroom behaviour (DeMartini-Scully et al., 2000; Kehle et al., 2000). 5.2 Curriculum Adaptions Ferro et al. (1996) showed an association between the curricular content and the pupil’s resulting classroom behaviour. The content of the curriculum needs to be modified to adapt to the pupil’s additional needs and abilities in order to enhance their contribution and engagement in class and reduce the chances of disruptive behaviour. Curricular content that is not age and ability appropriate, lacks creativity, does not emulate the interest of pupils and cannot be applied to other contexts can foster challenging behaviour (Ferro et al., 1996). 5.3 Positive Competition Using competitive techniques will help motivate pupils to perform academically in class, raising situational interest (Jones et al., 2009). This method has shown favourable results amongst teachers (Ediger, 2001) and enjoyment amid pupils (Bergin Cook, 2000). However Kohn (1992) has criticised the use of competition to motivate pupils. Kohn (1993, p.1) argues that setting pupils against each other is destructive and counterproductive, negatively comparing ‘competition is to self-esteem as sugar is to teeth’. He states that disruptive behaviour is triggered by competition, as it fosters hostility and mistrust towards others. Meece et al. (2006) study concurs that competition is demotivating as students are outshone by their peers and the focus is on surpassing your peers rather than the learning process. Gottfried et al. (2001) study agrees, stating that competition has shown a decrease in level of engagement in class and an increase in disruptive behaviour. Howev er, Good and Brophy’s (2008) study disagrees, stating that competitive methods can be used to assist in behaviour management, to promote positive behaviour and reduce disruption within the class. Their study found that competitive methods creates a more stimulating and attractive lesson for pupils. Tingstrom et al. (2006, p.245) study shows positive results for effective use of positive rivalry e.g. the ‘Good Behaviour Game’ which motivates pupils and reduces disruptive behaviour. He suggests that competitive activities are usually accompanied with rewards for the desired learning intention and the fewest behavioural transgressions (Good Brophy, 2008). This leads to adopting competitive strategies to manage behaviour and results in improved academic performance i.e. meeting deadlines. 5.4 Student Autonomy Encouraging autonomy increases motivation among students in the classroom (Guthrie et al., 2000; Reeve, 2009; Stefanou et al., 2004). Hidi and Harackiewicz (2000) and Turner (1995) claims that increased self-sufficiency among pupils in their learning process can enhance academic interest in their work improving behaviour in class and educational performance. Stefanou et al. (2004) references 3 types of support that teachers can offer to students: 1. Organisational autonomy (allowing students some decision in the classroom organisation) 2. Procedural autonomy (choice of alternative media to portray ideas) and 3. Cognitive autonomy (providing pupils the opportunity to self-evaluate their own work). According to Bieg et al. (2011) teachers need to support autonomous behaviour which involves listening to pupil’s contribution and creating more individual based tasks for pupils to work on by themselves, promoting improved learning behaviour. 5.5 Student-Teacher Relationship Ikeogu (2011, p.74) study found that positive relations with pupils resulted in reduced levels of disruptive behaviour, and those who experienced disruptive behaviour felt this was due to unstable relationships among peers. Creating a connection with pupils allows teachers to understand their frustrations which helps to resolve any undesired behaviour (Kuhlenschmidt and Layne, 1999). Gest et al. (2005) proposes that a close, supportive relationship between pupils and teachers will result in a more positive atmosphere, quality academic performance and good behaviour in class. SUMMARY This present study aimed to review an assortment of literature on the connection between motivation in the classroom and disruptive behaviour. Many factors are relevant in influencing disruptive behaviour but paramount is the motivational level which are dependent on the school ethos. The interaction between pupils and social quality of the classroom, educators, and pupils can add to this. Following analysis of a selection of motivational theories, (using multiple academic approaches to understand student’s behaviour and how to motivate them) no single model addresses all the factors influencing motivation and how to control destructive behaviour in the classroom. A lack of evidence on external conditions influencing student’s behaviour requires further research in order to effectively motivate pupils and reduce possible undesired behaviour in the classroom. The findings of this study is that encouraging a mastery orientated classroom displays more positive behavio ur than achieving performance goals. Future research needs to focus on adapting the curriculum to address both classroom behaviour and academic motivation. 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Information that has been measured and reported in a similar manner for different enterprise is considered comparable. Comparability enables users to identify the real similarities and differences in economic phenomenon. Comparability is achieved when companies use similar accounting procedures (e.g. use of same inventory method, depreciation) to account for similar economic circumstance (Porwal, 2008). Double entry accounting This is the method of recording accounting transaction where every debit entry must be accompanied by a credit entry and vice versa. If this method of accounting is not enforced then the basic accounting equation i.e. ASSETS = LIABILITIES + EQUITY will not balance. Therefore double entry accounting is used to ensure that financial record are complete and thus ensures that final statements give a true and fair view of financial performance at a given date otherwise if an accounting transaction is recorded on one side i.e. a debit or credit the balance sheet will not balance which indicate an error in preparation of financial statement (Fridson Alvarez, 2002). Historical cost Historical cost is the original cost incurred in acquisition of assets. All assets and liability are recorded in financial statement under historical cost principle.   Under this principle the exchange price established or cost incurred at the time a transaction occurs is the basis for initially recording assets and liability. Cost is usually the best estimates of an asset or liability i.e. cost and fair value of an asset are equal at acquisition date. Historical cost principle ensures that there is consistency in recording asset and liability where assets are recorded at historical cost and subsequent loose of value is shown as depreciation and adjusted from historical cost to show the book value of an asset at a given date. Accrual basis vs. cash basis accounting Measurement of revenue can either be through accrual method or cash accounting basis. The two accounting method consists of rules that determines how and when expenses and revenue are reported. With accrual basis of accounting, revenue is recorded in the period in which it is earned and not necessarily when cash is received while expenses are recorded when they have been incurred. This method of accounting is used by all publicly traded company and large businesses. With cash basis of accounting revenue is recognized when cash is received while expenses are recorded when cash is paid (Fridson Alvarez, 2002). The major difference between the two methods is that 1). In using the cash basis of accounting there are no any payables or receivable recorded in the balance sheet while in using the accrual basis both receivables and payables are recognized in the balance sheet. While reporting revenue using accrual basis both collected and uncollected revenue are recorded while for cash basis only the cash amount collected from sales and other activities are recorded. For instance if a customers pay $ 100,000 for goods which he has not yet received by the end of accounting period, using the cash basis this will be shown as revenue in the income statement but while using the accrual basis $100,000 is described as deferred revenue and   will appear in balance sheet as current liability. On the other hand when the firm deliver goods or offers a service but such amount remain outstanding at the end of the period using cash basis such a transaction will not be recorded but while using the accrual basis such amount will be described as accrued  revenue and will be recognized as revenue in the income statement and recorded in balance sheet as current asset (Siegel, 2007). 2) In a cash basis report, only the cash paid to vendors are shown as expenses while in accrual reports both paid and unpaid amount are included as expenses. For instance if a company pay rent amounting to $120,000 for 12 month but by the end of accounting period only rent for six month have been utilized using the accrual method $60,000 will be recorded as rent expense in the income statement while the remaining $ 60,000 are described as prepaid expense and are recorded as current asset in the balance sheet. For cash basis the whole amount of $120,000 will be recorded as rent expense during the current period. In preparation of financial statement the accrual basis of accounting is used where revenue is recorded in the accounting period it is earned irrespective of whether cash is received and associated cost used in generation of this revenue are also recorded in the same period. This is used in order to show the correct profit generated by an enterprise during a certain period. Current assets and liability vs. non-current items Assets include anything of value that is owned or due to the business. Current asset are those that mature in less than one year e.g. inventory, debtors, prepayment and note receivables. Liabilities represent a company’s obligation to creditors. Obligations that have to be paid within one year are called current liabilities. In preparation of financial statement asset are recorded as either current or non-current while liabilities are dividend  into current and non-current liability and companies have to adhere to this rule of financial reporting. Part 2 Bp group BP group present it final statement in term of income statement, balance sheet and cash flow statement. All the statement are presented in vertical format and each item is shown together with the corresponding item in the previous year. The income statement shows the income generated and division of this profit to various stakeholders i.e. among the total profit generated in year 2008 which amounted to $ 35,239 million the providers of finance received $1,547 million, government received $12,617 million and the shareholders received $ 21,666. The group balance sheet is dividend into five categories namely current assets, non-current assets, current liabilities, non-current liabilities and equity. The cash flow statement is dividend into three category i.e. the operating activities the investing activities and the financing activities. It financial statement are prepare in accordance with applicable UK law and international financial reporting standard. Quicksilver Inc The company also presents it final account in term of income statement, balance sheet and cash flow statement. The income statement show the profit generated and distribution to various stakeholders i.e. shareholders, government and minority interest. For each item in year 2008 the corresponding item in year 2007 and 2006 is also shown. The balance sheet is also presented in a vertical format where items are categorized into non-current assets, current assets, current liability, non-current liability and equity.  The cash flow statement is dividend in to operating, investing and financing activities. It financial statement has been prepared in accordance with the general acceptable accounting principles. RTL group It general presentation of financial statement is like in above two companies with the balance sheet dividend in to current asset and liabilities vs. non-current item and equity. The balance sheet and income statement are prepared in vertical format and show corresponding figures of previous year. Cash from operating activities is the best measure of company performance since it indicates whether or not the company will be able to meet it financing and investing need. Even if the company may have generated sufficient profit it may be in financial difficulty and may even be declared bankrupt for failure to meet obligation of creditor. Higher profit may be as a result of a change in accounting policy and not improvement in performance. More detail relating to each companies associate and subsidiaries can be collected from the filing they make in the respective country in which they are incorporated and their final report. Predicting company’s future trend Quick silver The company net income increased by 19% in 2007 compared to 2006. In 2008 the net income increased by 11% and in the year 2009 income is expected to grow by between  5%-8%. The company management also expect a hard time ahead due to current financial crisis which has led to a decline in household income and lower demand. RTL group In year 2008 revenue grew by 0.01% compared to and in year 2009 revenue are expected to decline by 2-5%. The company management and directors expect a drop in revenue in key market due to global economic crisis which has heightened the intensity of competition. Bp group The net revenue in year 2007 grew by 7% compared to 2006. In 2008 income grew by 27%. In 2009 revenue is expected to grow between 30-35%. Despite the harsh economic condition the management expects to increase it revenue earnings through higher fuel price.

Hrm in a globalized economy executive summary

Hrm in a globalized economy executive summary The report aims to discuss aspects of Human Resource Management in light of the ever changing business world given the globalization of businesses today. Globalization has seen changes in the way businesses work and are expected to deliver investor value. Companies started competing not just with local competitors but with organizations across continents which forced companies to relook at continuously innovating and providing a unique value to its customers to retain them. Talent Sourcing and Talent Development within an organization have become a science that identify and accept that diverse employee base form the backbone of a business and are responsible for contributing towards achievement of organizations global goals and directly impacting competitiveness and delivering that Investor value. Early in the 1800s during the times of Industrialization, the approach to managing workforce was primitive task drive approach. Historically, Henry Fords assembly lines and Studies of Frederick Taylor such as the time and motion studies thought of improving productivity by putting employees in line with mechanics. They tried to boost productivity by designing the way work is carried out. They focussed purely on productivity since productivity was what gave profits and therefore competitive edge. Workforce was put them in the same league as machines inviting organization conflict and distraction from the goal. As globalized environment changed the rules of the game, Organizations realized that employees and their talents is the single most important supply of sustainable competitive advantage. Employees are the ones that deploy scarce resources optimally. To survive and to succeed, organization need to leverage its human resource capitals talents to develop new products and services and creating value for customers. This marked change in attitude of managements saw the emergence of concept of Global Human Resource Management which characterizes implementation of personnel policies to maximize objectives of organizational integrity, employee commitment, flexibility and quality at a global level. Global Human Resource Management hence becomes very important since globalization and international operations bring with them challenges beyond a simple Human Resource Management program at a local level. Global Human Resource Management not only covers International recruitment Appropriate training and development Deployment of these resources But also goes beyond simple HRM in maintaining affable international industrial relations. With international operations, managing the employee base worldwide has its own challenges. P Morgan: There are 2 sets of variables when it comes to HRM in for an International Organization First -employee types Second Political, labour laws, culture, legal environment, economic, and practices prevailing in different countries A successful HRM model for an international organization is the successful interplay between these 2 sets. Clearly there is a need to go beyond basic HRM practices to include: More functions and activities In depth wisdom of employment law of the host country Close involvement with employees personal variables Provide for external influences Exposure to newer hurdles and risks Managing differential pay packages Managing ethnic, gender differences More liasoning activities More travel and coordination Higher management of unknown risk variables beyond the country where the headquarters are based It is imperative that Human Resources Management models are deployed in a global context to ensure success. Main Body The Concept of Globalization: While Global trade itself is not a new concept, Globalization is. Globalization can be defined as a process of trade and investment transcending political boundaries undertaken by an interaction of people, processes, entities and spurred on by advances in political systems, technology, business ethics and affecting culture, environment societies leading to cross border prosperity. International trades have been undertaken historically. Traders have traded goods and services over large distances travelling by land and sea. Eg, The silk route that connected the Western World with Central Asia China during the Middle Ages. As time progressed further, we see that cross-border trade, investment immigration boomed. Eg. Since the middle of the 20th Century to today world trade has exponentially grown by 20 times. Only in the last 5 years of the 20th Century, foreign investment currency flow went to US$ 827 billion from a meagre US$ 468 billion. This has had an impact on fiscal policies of governments that have opened up its economies in a controlled manner, both domestically as well as beyond their borders. Eg. The 1991 Financial Budget given by then Finance Minister of India, Dr. Manmohan Singh was figuratively the door to globalization for India. India hasnt looked back since in terms of its growth and prosperity. India adopted a free-market economic system. This greatly increased its own production potential and created a bouquet of opportunities for its own companies and organizations across the world for international trade and investment. Companies started growing by virtue of the geography of their businesses and operations: HRM in the face of such Globalized businesses: In such a dynamic environment today Human Resource Management in a global paradigm involves the manpower planning of staffing requirements the world over, selection of the right candidates, training development of employees for global operations. Since it is established that human resources form the backbone of any strategy, implementation of any strategy to succeed globally with Human Resource Management at its core can provide a strategic competitive edge. Human Resource function in this environment has to provide a support function to line manager by providing guidelines, searching, training, and evaluating employees. With an effective HRM function deployed, the organization would be able to leverage the knowledge, experiences and the skills of its distinctive employee bases the world over. The Increasing Diversity of the Workforce: As Globalization gains steam and becomes the norm, the employee base of multinationals has become varied and rich with nationals from all over the globe. Human Resources across companies have become homogenized, enriching the organizations with depth of knowledge about variables affective markets both within the countries as well as between them. The most successful organizations are ones which utilize this resource to the maximum. Having an experienced employee from a remote market on the team is a natural consequence towards better understanding new market dynamics and new consumer behaviour. Culture in different countries or the mode of doing business in different countries is also different Deal Focus Relationship Focus Country wise distribution: Formal Culture Informal Culture Country wise distribution: Therefore HRM today for an international organization, has to consider Differences in HR practices in the local organizations Perception of HR as a function. Attitude and actions of headquarters towards HR Resistance to change in a myriad of different situations Cultural differences in teaching and assimilating styles The Changing Nature of the Workplace: A diverse organisation will out-think and out-perform a homogeneous organisation every single time. A. Lafley, CEO Procter Gamble Global competition presents a case for Global co-operation. Today, more than ever before, employees find themselves rubbing shoulders with someone from a different culture, race and society on an everyday basis. HR departments in these multinationals have to recruit, develop and retain people who have vastly different backgrounds. This has resulted in new skills to succeed such as sensitivity and other relational aspects. This is termed as cultural intelligence. Cultural intelligence is defined as the capability to adapt effectively across different national, organizational and professional cultures (Earley, Ang and Tan, 2005). Today employees across industries are given job roles globally, taking them around the world. In this new environment employees from home country as well as the expatriate have to learn how to work with each other given that they not only think and communicate differently but also execute differently. The Human Resource Departments need to develop their cultural intelligence to manage this diversity in their companies. The departments have to allow for newer challenges in the face of international employee deployment such as Managing international assignments Employee and family adjustment Selecting the right person for a foreign assignment Culture, communication and gauge Language and communication Staffing Function in an International Organization: Staffing in an international organization goes beyond simply forecasting requirements and selection of the right candidates to fit a job description. It is also a tool to develop and promote the organizations own value system and culture. In an international scenario the following models could be deployed: An Ethnocentric staffing policy A Polycentric staffing policy or a Geocentric staffing policy ETHNOCENTRIC STAFFING POLICY: In this policy, top management positions filled by parent-country nationals. It is actually the best suited to international organizations. Advantages: If the host nation does not have qualified managers, the vacancies can easily be filled The culture of the HQ is easy to spread. Easy transfer of key skills and operating procedures Disadvantages: May result in bitterness in host country Deterrent to cultural diversity POLYCENTRIC STAFFING POLICY When this policy is deployed Host-country nationals manage subsidiaries and parent company nationals hold key headquarter positions. Multi-domestic organizations can benefit from this Advantages: Help rich cultural diversity Implementation is cost effective Easy transfer of key skills and operating procedures Disadvantages: Limits chances of host country employees getting exposure outside their own nation Possibility of gap in mission, values and work culture between HQ and host country operations GEOCENTRIC STAFFING POLICY This policy seeks best people, regardless of nationality. Transnational organizations and Global entities can benefit from this Advantages: Optimum deployment of optimum resources Employees get exposure to different cultures Creates a centralized value system Disadvantages: Local immigration policies may inhibit 100% deployment Higher costs associated with training and relocation May require complex Compensation structures to succeed. The Expatriate Dichotomy: Further when a citizen of one country works in another country, HRM needs to take care of a myriad of issues without which there is a strong chance of failure and a premature return of the employee to his home country The costs associated with failure are not low and are generally estimated at three times the expats annual salary in addition to the costs associated with relocation The issues that can crop up when expats are deployed: Immediate family may not adjust to a new environment The employee may not adjust Other personal issues Culture shock May not be able to cope up with bigger responsibilities Based on how complex the business is and strength of the HR function, it is important to deploy the ideal staffing policy. Recruitment and Selection: International Labour Market Sources Parent Country Nations (PCNs) PCNs are managers who are citizens of the Country where the MNC is headquartered. The reasons for using PCNs include The desire to provide the companys more promising managers with international experience The need to maintain and facilitate organisational coordination and control The unavailability of managerial talent in the host country The companys view of the foreign operation as short lived The host countrys multi-racial population The belief that a parent country manager is the best person for the job. Host Country Nationals (HCNs) HCNs are local managers hired by MNCS The reasons for using HCNs Familiar with the culture, language Less expensive, know the way things done, rules of local market Hiring them is good public relation Third Country Nationals (TCNs) TCNs are managers who are citizens of countries other than the one in which the MNC is headquartered or the one in which it is assigned to work by the MNC. The reason for using TCNs These people have the necessary expertise They were judged to be the best ones for the job. Selection procedure of Expatriates Use of selection test Technical Ability Cross cultural requirements Following traits are identified s predictors of expatriate success Cultural empathy Adaptability Diplomacy Language ability Positive attitude Emotional stability and maturity Family requirements Multinational requirements Management philosophy or approach The mode of operation involved The duration of assignment The amount of knowledge transfer inherent in the expatriates job in foreign operation Language skills Expatriate Success factors Willing and motivated to go overseas Technically able to do the job Adaptable Good interpersonal skills and be able to form relationship Good communication ability Supportive families Adaptability to cultural change Work experience with cultures other than ones own Previous overseas travel Knowledge of foreign language Ability to integrate with different people, cultures, and type of business organisation The ability to sense developments in the host country and accurately evaluate them The ability to solve problems within different frameworks an from different perspectives Sensitivity to subtle differences of culture, politics, religion and ethics in addition to individual differences Flexibility in managing operations on a continuous basis, despite of lack of assistance and gaps in information Globalized HRM role Two major types of adjustments that an expatriate must make when going on an overseas assignment. Anticipatory adjustment Carried on before he leaves for the assignment It is influenced by following factors predeparture training pervious experience In-country adjustment Takes place on site It is influenced by following factors Ability to maintain a positive outlook in high pressure Jobs as reflected by the role he plays in managing, authority he has to make decisions, newness of work-related challenges and the amount of role conflicts Organisation culture Non work factors toughness with he faces new cultural experience, family adjustment with new country Socialisation factor to know what is what and who is who Expatriate Training and Development Need for Training to Expatriate Cost of expatriate failure is very high To build a team of internationally oriented, committed and competent personnel Minimize personal problems such as politeness, punctuality, tactfulness, orderliness, sensitivity, reliability, tolerance and empathy Improve overall management style Pre-departure Training- Emphasises on cultural awareness and business customs of the country of posting to cope with unexpected events in a new country. Post-departure Training helps in minimising culture shock and depression that usually sets in a new country and culture. Cultural Integrator An individual who is responsible for ensuring that the operations and systems are in accordance with the local culture. He advises guides and recommends action needed to ensure this synchronisation. Even though expatriate are trained before being sent abroad, they are still not totally prepared to deal with the day-to-day cultural challenges because they lack field experience. He is responsible for handling problems between the subsidiary and host cultures. He may be from parent country or host country who has intimate knowledge of the companys culture and can view operations from both sides. He can only advice ore recommend a course of action. Management philosophy and training Ethnocentric companies will provide all training at the HQ. Polycentric companies will rely on local managers to assume responsibilities for seeing that the training function is carried our wherever appropriate. Geocentric companies organise training courses in different parts of the world, where a particular function is best carried out. Regiocentric companies organise training courses in different countries of the region. Cultural Awareness Training There are five types of pre-departure training Area studies that include environmental briefing and cultural orientation Cultural assimilators Language training Sensitivity training and Field experience To decide the rigour and level of training, following factors are important degree of interaction required in the host culture similarities between home and host cultures If interaction is low and similarities are high, then training should be on task and job related issues rather than culture related issues. If interaction is high and similarities are low, then training should be on cross cultural skill development as well as task. Preliminary visits average duration will be about one week A well planned overseas trip for candidate and spouse provides a preview to access their suitability for job, introduction to host country management, accommodation required, and schooling facilities available. Language training Types of cross cultural training Environment briefing about geography, climate, housing and schools Cultural orientation to familiarise with cultural institutions and value system of host country Cultural assimilators to provide intercultural encounters Language training Sensitivity training to develop attitudinal flexibility Field experience to make expatriate familiarise with the challenges of assignment Cultural Assimilators It is a programmed learning technique that is designed to expose members of one culture to some of the basic concepts, attitudes, role perceptions, customs and values of another culture. These assimilators are developed for one culture where the candidate is currently working and the other culture is where he is proposed to be posted. Type of assimilators The trainee read a short episode of cultural encounter and choose an interpretation of has happened and why. Critical incidents: to be identified as a critical incident, a situation must meet at least of the following conditions: An expatriate and a host interact in the situation The situation is puzzling or likely to be misinterpreted by the expatriate The situation can be accurately interpreted if sufficient knowledge about the culture is available The situation is relevant to the expatriates task or mission requirements Compensation Management Factors Influencing Compensation Programmes Compensation decisions are strategic decisions and play a key role It should be consistent with overall strategy, structure and business needs of MNC It must attract and retain the best staff It must facilitate the transfer of international employees in a cost effective manner. It should give due consideration to equity and ease at administration. It requires the knowledge of employment and taxation laws, customs, cost of living index, environment and employment practices, the knowledge of labour markets and industry norms, foreign currency fluctuations. Paying Expatriates: unique problems Discrepancies in pay between PCN, HCN and TCN The need to vary expatriate compensation depending on the life cycle of the expatriates family Compensation issues related to re-entry into the parent country organisation Approaches to Expatriates Compensation Going Rate Approach Base salary remains linked to the salary structure of the host country. Required information is obtained through compensation surveys and published information. This approach is favoured by polycentric organisation Advantage Equality with local nationals and expatriates of different nationals Simple approach Attract the nationals of PCN and TCN if location is a high-pay country Disadvantage Transfer from a developed country to a developing country Fighting for getting favourable posting and resisting low pay country postings Problems when the expatriates repatriated to the home country An export or import or franchising arrangement Company appoints an export manager who reports to chief of marketing and all operations concerning export and imports are controlled by the home office Balance Sheet Approach It links the salary of expatriates and TCNs to home country salary structure. Assumption Foreign assignees should not suffer financially due to transfer Salary package is divided into goods and services, housing, income taxes and reserve. Cultural Impact and Compensation Policy National cultural difference High power-distance the compensation system should reflect hierarchical divisions in the firm. Low power-distance the salary system should be more egalitarian and performance based. Individual cultures rewards should be given on an individual basis. Collectivist cultures they should be team based. Culture with high masculinity compensation policy focus on social benefits, quality of work life and equity. Culture with high uncertainty avoidance structured and consistent pay plans are preferred with no variable plans and discretionary allocation. Culture with low uncertainty avoidance pay should be linked to performance. Performance Management in International Organisations Performance Management and its link with other HR Processes Reward Management Human Resource Planning Training and Development Process Relationship with strategy Multinational Performance Management Whole vs part Non-comparable data Volatility of the international environment Separation by time and distance HQ-subsidiary interdependence Ethical and legal issues Market Maturity Performance Management of expatriates decisions and play a key role Setting clear goals for each unit, each department and each employee Goals must be mutually supportive and balanced for long and short term needs. Setting standard and measurement criteria for evaluating each type of goal Formal monitoring and review of progress towards these objectives Using the outcomes of the review process to reinforce desired employee behaviour through differential rewards and identifying training and development needs. Variables that Influence Performance of Expatriate Compensation Package Nature of Assignment Role Clarity Psychological Contract HQs support Environment of the Host Country Cultural Adjustment Critical Success Factors Recommendations: The Impact of Diversity and the Changing Nature of the Workplace on Human Resource Functions in Work Organizations: Given the era of Globalization, managing diversity at the workplace has become a business issue for the HR Department and no longer simply a moral, social, or legal concern. The challenge is no more creating a diverse employee demographic, but empowering one that already exists due the natural global nature of the business. Despite all the hype around Diversity and the pros of having a multicultural workplace, organizations still tend to reflect: Soft implementation of highly expensive Diversity Management Programs A poor gender ratio when it comes to higher managerial positions Poor integration of disabled people into the employee base. Senior management teams not reflecting ethnic diversity. Some critical success factors to ensuring that diversity is leveraged well by organizations include: A) Clear organization wide understanding of the business case for Diversity. The HR department along with the senior management and the line managers need to be clear about the need to be diverse and embrace new cultures and ethnic backgrounds into their folds. Going beyond corporate trainings and having blurred notions of how multi-cultural employee base would help the organization to gain competitive edge over local competition in remote markets, all levels of the organization need to clearly articulate how a diverse human resource base would help reach the organization goal and hence their own individual goals. Further they understand that a multi-cultural workforce can improve their organizations adaptiveness and change readiness. This would clearly improve the culture within the organization to recruit, develop and retain the best staff. B) Assessment of Current Situation. HR departments that are particularly successful at managing diversity routinely spend time, money and effort in gauging the ever changing composition of the workforce given geographical expansions, attrition and new recruits. They routinely assess not just numbers associated with the above dynamics but also behaviours, and culture associated with these changes. Eg. Eastman Kodak created a specialist external diversity panel to conduct an outsider review of the current situation. The Management of Eastman Kodak assessed recruitment policies to address cultural imbalances and even cultural blocks to retaining and developing a multi-demographic employee base. Without the above HR Departments would only end up paying lip service to managing diversity or spending huge amounts on expensive specialist corporate trainings on managing diversity without actually creating a basic inclusive work culture. Ergo, wasting time and effort on initiatives that are unsustainable in an environment where self assessment itself is not done. C) Managing Diversity is a top-down approach. Successful diversity management initiatives are ones that have high visibility of the senior management team. Eg. Back in mid 90ies, Lou Gerstner identified diversity as a key strategic initiative for IBM globally. He was a strong proponent of leveraging differences to address new markets. He established eight task forces representing various ethnic groups, allocating executive sponsors from his direct reporting team and insisting on specific measurable results within specified timelines personally reviewing progress on the results. Many HR departments have gone beyond simply including diversity management in their employee handbook and actually championed setting up panels and councils that include senior executives. Diversity management may require fundamental changes to the very culture of the organization and hence require stewardship by the senior executives. D) HR initiatives need to promote cultural harmony rather than address cultural imbalances. Initiatives from HR need to promote creating a multi-cultural environment. Simply having reservation seats and quotas and fancy cultural training and diversity training is not enough. HR Departments need to ensure that minorities have the same opportunities and such initiatives are an integral part of their day to day working rather than simply an extra curricular task! Ensuring objective appraisal systems, rewards and recognition and universal training and development opportunities is key to promoting an all encompassing holistic HR approach. E) Objective assessment of the Diversity management initiative and scientific assessment of programs are key. Many HR Departments have succeeded in developing measurable diversity management programs. E.g. the Hyatt Hotel Group the world over ties approximately 15% of the bonus potential to diversity goals. HR Departments that have been successful in managing diversity have translated it into a core competency used to assess the performance of management. F) Diversity Management principles are all encompassing and wholesome enough for everyone to participate. If the Diversity Management programs are only a bastion of the senior management, the entire exercise would be superficial and unsustainable. In order to result in successful recruitment, retention and development of employees in a globalized world, it is important that it is an inclusive program cascading throughout the organization. E.g. IBM created specific task forces but more importantly invited participation in the form of inputs to help these task forces in creating an inclusive culture. Managing diversity and the every changing workplace in the face of globalization is not the prerogative of the senior management alone but is to be implemented at the grass root level where managing diversity to retain and recruit top talent is a challenge in itself. These critical to success factors for managing diversity are not complicated models however they are tough to actually execute and require a motivated effort on the part of the Human Resources team and buy-in from the entire organization. Conclusion: Clearly Globalization has brought about a paradigm shift to International Trade providing it with a great boost. I feel, employees form perhaps the most critical resource base since they are