Emotional Regulation Conflict Management Style in Students

Emotional Regulation Conflict Management Style in Students Abstract EMOTIONAL REGULATION AND CONFLICT MANAGEMENT STYLE AMONG UNIVERSITY STUDENTS M. VIJAY * S. KADHIRAVAN ** Research scholar Research supervisor This study examines about university students’ emotional regulation and conflict management style on the basis of demographic variables such as, stream of study, year of study and type of family. The researcher has employed the descriptive survey method for this study and the sample was carried from university students in Salem. The sample size is N=93, and‘t’ test, Pearson’s r and ANOVA were used and the data was analyzed through SPSS.V.22. This study reveals that students from arts and science background haven’t differed in their emotional regulation, first and final year students have partially differed in their emotional regulation than their conflict management style and finally students from nuclear family background have partially differed in their emotional regulation than the counterpart. The study concludes that, emotional regulation partially correlated with conflict management style at 0.05 levels. Key words: Emotional regulation, Conflict management style. INTRODUCTION Students are come across from many events in their life. Perhaps, events are generates some emotional reactions; those reactions invite either positive or negative consequences. Emotions are complex reaction that would not raise isolate, it is involved with internal subjective feelings and as well as influence of socio-cultural factors. When separating the problem students have different opinions, creative thoughts, skills, and values to directing the goals. In these context, when the person wants engaging an activity that is incongruent with his/her interest or needs lead to disagreement. An even disagreement produces some emotional reaction. In these contexts emotional regulation help to cope students’ emotional reaction, which means, it deal with any coping strategy used by the individual when deal with an unnecessary thoughts, feelings and emotions. In order to use managing conflict style also helps to coping their incongruent conflict issues in good manner. EMOTIONAL REGULATION In the stage of adolescence to adulthood is a major obstacle to move up for everyone because, in these stage people are inviting many commitments for showing their values in the social system.Through inviting more commitments people are experiencing emotional events. In these context, emotional regulation help to cope their emotion in wider perspective. Emotional regulation refers to extrinsic and intrinsic processes responsible for observing, assessing and modifying emotional reactions, in particular their exhaustive and temporal features toachieve one’s own goals Thompson (1994). Emotional regulation is a coping mechanism, it is concerned with emotions context whatever people areraised. There are two specific strategies often involving to regulate people emotions effectively, such as, cognitive reappraisal and expressive suppression. Cognitive reappraisal strategies deal with cognitive changes such as thinking, feeling, creating new ideas to interpreting emotional stimulus w hich means it involves recognition of the individual’s negative emotional response and reinterpretation of the situation by exchanging the negative thoughts to increasing positive thoughts. Expressive suppression also involves emotional regulation, it means, person’s knowledge about the causes of emotion that inhibiting ongoing emotional expressive behavior. CONFLICT MANAGEMENT STYLE When students are require to perform some activity that is incongruent with their interest leads disagreement. According to Rahim (1992) Conflict is an interactive process that manifested in incompatibility, disagreement or dissonance within or social entities. Conflict management refers to minimizing the negative outcomes of conflict and promotes the positive outcomes of conflict with the goal of improving learning in an organization. (Rahim, 2002).Conflict management helps to recognize, cope and to direct the conflict from negative aspect to positive manner. Rahim (1979) who psychologist, conceptualized five different conflict management styles to cope students’ conflict situation in an effective mode, there are, (I) integrating style, which involves high concern for self and others., (II) obliging style, it involves person who concerning low level for their own self and concerning high level for others, (III) dominating style, it involving high level of concern for their ow n self and as well low level of concern for others, (IV) avoiding style involves low level of concern for their own and also others and (V) compromising style involves equal concern for own and others. REVIEW OF RELATED LITERATURE The review of literature in the research study helps researcher to gain some knowledge and insight in to the purpose and the result of the study. Studies on emotional regulation and conflict management style are given below. Ahmet yigit and ahmwtozpolat (2014) conducted research on emotional regulation strategies as a predictor of life satisfaction of university students based on parent profession, income level and educational background. They found cognitive reappraisal strategy directly predict life satisfaction of parent profession, income level and educational background. Gulcimenyurtsever (2014) investigated negotiator profit predicated by cognitive reappraisal, suppression of emotions, and misrepresentation of information and tolerance of ambiguity among undergraduate students. The result reveled that negative coefficients were obtained from scored between emotional reaction and cognitive reappraisal and tolerance of ambiguity. PiiaNaykki and SannaJarvela (2014) examined socio-emotional conflict in collaborative learning of higher education context. Collaborative work of higher education students was followed during a three month course. The result indicate that has students are more experienced in socio-emotional challenges and adopt avoidance-focused emotion regulation behavior and to lower their on task engagement. Jianzhongxu (2013) conducted research on individual and group level factors for students’ emotion management in online collaborative group work in united state. The researcher found that, emotion management in group work was positively related to feed back, learning oriented reasons, arranging the environment. In addition compared with part-time students, fulltime students were more initiative in managing their emotions with doing online group work. Nicole M. Monteiro and Shyngle K (2014) examined the emotion regulation of coping strategies among university students in Botswana. The result indicate that students’ emotional suppression was positively correlated with problem solving, cognitive restructuring, expressing emotion, social support, problem avoidance and wishful thinking coping strategies. Ishfaq Ahmed and Muhammad (2010) studied about personality does affect conflict handling style among college students. The researchers’ found that personality affects avoiding and competing style of conflict management style. Hidetomorita (2003) investigated conflict management style of American and Japanese with close friendships among college students. He found that dominating and obliging style of conflict management often by American students than Japanese. Hossein Khanaki (2010) examined conflict management style among engineering students and experience engineers from Iran. The result reveled that experience engineers often prefer to avoid conflict management style and similarly both of them generally showed a lack of inters in competing style. Joanne C.Y. Chan (2014) examined conflict management styles, emotional intelligence and implicit theory of personality of nursing students. The researcher found that students often used obliging and integrating style than dominating style conflict management style for clinical supervisions. Eunjookim and ayano Yamaguchi (2014) investigated the effects of taking conflict personality on conflict management style across culture among undergraduate students. The researchers’ found that taking conflict personality indicated positive relation with participant’s conflict management style. Sehrish Hassan and Muhammad (2015) examined the relationship between conflict management, social support among university students in Pakistan. The result found that social support was not significantly correlated with conflict management styles and female students’ social support shown higher than males’. Tong Yu and guo-mingchen (2008) investigated intercultural sensitivity and conflict management styles in cross-cultural organizational situations among university students. The result revealed that moderate relationship between the two concepts and among respective dimensions. On above related literature provides detail knowledge about present status of emotional regulation and conflict management style. The researcher examines the relationship between emotional regulation and conflict management style among university students with the help of previous related literature knowledge. NEED FOR THE STUDY Emotions are develops throughout the life span. It does not arise in isolation; it is a combination of cognitive, behavioral and socio-cultural influences. Every student were experienced by emotional and conflict events, but they know how, where and which type of decision would aid to solve the problem. In these situations, emotional regulation and conflict management style would help to handle students’ problems in good manner. This study would help to examine the relationship between emotional regulation and conflict management style of university students’. HYPOTHESES Emotional regulation will be correlate with conflict management style of university students. Students from arts and science will be significantly differs in their emotional regulation. Students from first and final year will be significantly differs in their emotional regulation and as well as conflict management style. Students from nuclear and joint family will be significantly differs in their emotional regulation. RESEARCH METHOD The researcher has used descriptive survey method for this study. This study analyzes the relationship between emotional regulation and conflict management style of university students. The researcher has exploit incidental sampling method for select the participant in university. Students from first and final year were selected as a sample for this study. The data were collected from 160 students and finally only N=93 were selected for this study and also remaining data was eliminated on the consideration of spurious data. Emotional regulation questionnaire (ERQ) by Gross and john (2003) and conflict management style by Johnson (1990) were used for this study. The selected data were scored as per the scoring norms and also analyzed with the help of SPSS V-22. The data was in additionally promote to classified on the basis of stream of study [arts= 40; science = 53], year of study [first=59; final = 34] and the type of family [nuclear = 66; joint 27]. RESULT AND DISCUSSION Table-1 shows the difference between arts and science students in their emotional regulation. Table-1 From the table-1 it is found that the ‘t’ values are not significant for any one of the facet of emotional regulation. Hence the hypothesis is not accepted. It is concluded that students from arts and science stream did not differ in their emotional regulation. Table-2 shows the difference between first and final year students in their emotional regulation. Table-2 From the table-2 it is observed that the t-values are significant for cognitive reappraisal facet of emotional regulation than expressive suppression facet. It is indicate that first year students are often using their cognitive reappraisal strategies in their emotional regulation than final year students. First and final year students are significantly differ in their emotional regulation. Hence the hypothesis is accepted. Table-2.1 shows the difference between first and final year students in their conflict management style. Tabe-2.1 From the table-2.1 it is found that the t-values are not significant in none of the dimension of conflict management style.Hence the hypothesis is not accepted for conflict management style, but this hypothesis is accepted for emotional regulation. In general, it is concluded that the first and final year university students are differ in their emotional regulation than their conflict management style. Table-3 shows the difference between nuclear and joint family students in their emotional regulation Table-3 From the table-3 it is observed that the t-values are significant for cognitive reappraisal facet of emotional regulation than expressive suppression facet on the basis of students’ type of family. The table indicates that students from nuclear families are often used their cognitive reappraisal strategies in their emotional regulation rather than expressive suppression strategies. In general students from nuclear and joint families are partially differing in their emotional regulation. Hence the hypothesis is accepted. Table-4: Shows the correlation between emotional regulation and conflict management styles of university students. Table-1 **. Correlation is significant at the 0.01 level (2-tailed). *. Correlation is significant at the 0.05 level (2-tailed). From Table-4 it is found that the students’ emotional regulation is partially correlated with conflict management style. There are two strategies specifically involving in emotional regulation such as expressive suppression and cognitive reappraisal, this table shows that cognitive reappraisal facet is significantly correlated with collaborating style of conflict management style at the level of 0.05 (2-tailed). Cognitive reappraisal facet deals with person’s cognitive changes, such as, thinking, feeling, creating new ideas to interpreting emotional stimulus which means it involves recognition of the individual’s negative emotional response and reinterpretation of the situation by exchanging the negative thoughts to increasing positive thoughts. In addition collaborating style indicates that person’s high level of assertiveness and cooperation, it also attempts to provide the best solutions in conflict situation. In other hand, expressive suppression facet did not correlate with any dimension of conflict management style of university students. It indicates that university students are often using cognitive reappraisal facet of emotional regulation than expressive suppressive suppression. In general students’ emotional regulation and conflict management styles are significantly correlates at the level of 0.05. Hence, the hypothesis is accepted. CONCLUSSION Table-1 shows university students’ emotional regulations do not significantly differ in their basis of stream of study. Table-2 shows university students’ emotional regulation differences on the basis of year of study. First and final year students are significantly differ in their cognitive reappraisal facet than expressive suppression facet, and table-2.1 shows the difference about students’ conflict management style on the basis of year of study. It shows students from first and final year do not differs in their conflict management style. In addition table-3 shows the students’ differences on the basis of type of family in their emotional regulation.Table-4 shows university students’ emotional regulation strategies partially correlated with collaborating style of conflict management style. From the discussion we conclude that, students from nuclear and joint families are partially differing in their emotional regulation. In general, over all fin dings shows university students’ emotional regulation are partially correlated with conflict management style, and the study conclude that university students’ emotional regulation positively correlated with conflict management style. REFERENCES Chan, J. C., Sit, E. N., and Lau, W. M. (2014). Conflict management styles, emotional intelligence and implicit theories of personality of nursing students: a cross-sectional study.Nurse education today,34(6), 934-939. joo Kim, E., Yamaguchi, A., Kim, M. S., and Miyahara, A. (2015). Effects of taking conflict personally on conflict management styles across cultures. Personality and Individual Differences,72, 143-149. Hassan, S., Aqeel, M., and Hussain, W. (2015). The relationship between conflict management and social support among university students. Yu, T., Chen, G. M. (2008). Intercultural sensitivity and conflict management styles in cross-cultural organizational situations. Ulcimen Yurtsever (2008). Negotiators profit predicate by cognitive reappraisal, suppression of emotions, misrepresentation of information, and tolerance of ambiguity. Perceptual and Motor Skills: Vol 106, Issue, pp. 590-608. Scott, J. P., DiLillo, D., and Watkins, L. (2015). Negative urgency and emotion regulation strategy use: associations with displaced aggression.Aggressive behavior. March2015. Yigit, A., Ozpolat, A. R., and Kandemir, M. (2014). Emotion regulation strategies as a predictor of life satisfaction in university students.Journal of Psychology,2014. Vol.5. (2014). Monteiro, N. M., Balogun, S. K., and Oratile, K. N. (2014). Managing stress: the influence of gender, age and emotion regulation on coping among university students in Botswana.International journal of adolescence and youth, Vol19(2), 2014. NÃ ¤ykki, P., Jarvela, S., Kirschner, P. A., and Jarvenoja, H. (2014). Socio-emotional conflicts in collaborative learning a process-oriented case study in a higher education context.International Journal of Educational Research,68, 1-14. Vol 68, Pages 1–14, 2014. Xu, J., Du, J., and Fan, X. (2013). Individual and group-level factors for students emotion management in online collaborative group work.The internet and higher education, vol19, pages 1-9.

Dells Successful Use of the Internet as a Selling Channel Essay

Dell's Successful Use of the Internet as a Selling Channel Dell are currently the worlds number one PC supplier, a position in the market they took from Compaq in April 2001. In short, the company’s success story is mainly down to their innovative direct business model, which pays particular attention to the selling process where Dell completely bypasses all intermediaries and/or middlemen. This is because Michael Dell believed they add little if no value to the end product, instead just gaining a considerable mark-up for selling the product. Hence, they became the first PC manufacturer to completely cut out retailers and instead sold customised computers directly to customers based on their exact specifications. This selling process began over the telephone and via catalogues but in 1996 Dell embarked on Internet based selling on their official website, Dell.com, providing customers the opportunity to buy desktops, notebooks and servers directly from them. In order to power online commerce successfully for any business, the basic technology required is the installation of servers and data-storage systems. The website Dell.com runs on industry standard Dell PowerEdge servers. These powerful servers are backed up by Dell/EMC Fibre Channel storage. Dell is therefore equipped with backup strategies in case any problems with the servers or software occur and are experienced. This is crucial, as users may begin to view this distribution channel as unreliable if breakdowns are recurrent and could detract them from not only buying from Dell.com but from anything from the company. According to company internal metrics, Dell.com is one of the most responsive web sites on the Internet, with an average download time of 1 second for a page. That briefly explains the technology used to power the website however customers can access it simply via an Internet browser, the most popular being Microsoft Internet Explorer and Netscape Explorer. Dell’s direct business model (can be seen on the page three) may be simple in theory however it is very complicated executing it in reality. Building PC’s to order means that they must have the parts and components on hand to build a wide range of possible specifications over a short period of time (to ensure minimum time between order and manufacture). To complete these orders quickly, Dell must have first-rate manufacturing and ... ...ffective they are. As mentioned, customer service has also improved from an already high standard even further. Dell has created many services online that enables the customer to see the whole purchasing process clearly once they have made an order. It gives the customer the ability to track the progress of their order as it is produced and delivered, providing them with constant feedback of delivery dates and product information. This 24-hour customer service and fast response time helps Dell build a strong relationship with customers. References ---------- The key references handed in earlier referred to the two links below: - http://www1.euro.dell.com/content/topics/global.aspx/corp/home?c= uk&l=en&s=corp - http://www1.us.dell.com/content/topics/global.aspx/corp/pressoffice/ en/2003/2003_10_20_rr_002?c=us&l=en&s=corp Further websites were found with useful detail on Dell’s direct selling model: - http://www.internetretailer.com/article.asp?id=6717 - http://www.microsoft.com/resources/casestudies/casestudy.asp?CaseStudy ID=14674 - http://www1.us.dell.com/content/topics/global.aspx/policy/en/policy? c=us&l=en&s=gen&~ck=lf&~section=006

A Study on the Demographic Factors Influencing the Adoption of E-Banking in India Essay

E – Banking has become a rising concern for academics. It is the innovation of e- banking that has resulted in cost and time reduction for the employees and consumers for the completion of their banking transactions. Banks have now devised more internet based solutions. The research has a wide scope as it focuses on the factors that influence the acceptance of the software offered by banks. Overview In the recent years information technology has fundamentally changed the banking industry worldwide. The innovation of internet banking has changed the way banking is being done and has offered the banks with a lot of challenges and opportunities. Banking industry faces a critical challenge in the adoption of online banking as the knowledge is very limited in India and there is an essential need to study that. The slow adoption of e- banking in India can also be because of poor education, economies, infrastructure and trust also plays an important role. This research will help in understanding the factors that affect the adoption of internet banking such as social, demographic and customer attitudes and perception which will enable banks to find out solutions to attract the customers through the e- banking services and hence gain a high market share in the banking industry. The motivation for this research arose because there has been a rapid development of e- banking in India but the concern is that whether customers demand for these services based on their income, education, internet usage and levels of customer ownership and acceptance. There has been an increase in the number of internet users but a very small fraction of those do their banking transactions online because of lack of trust and several other factors. This study will explore e- banking facilities through the consumer’s eyes and seek to understand the attitude and behavior of consumers towards e-banking which will help the banks to formulate campaigns to encourage the adoption of e-banking. Research Question This research will examine the factors playing an important role in the adoption of e- banking by the people in India. This report will give a recommendation on the improvement of the banks future course of action for the increasing use of e- banking. The final report will benefit the bank in improving the accessibility of the service to improve the adoption of e- banking which will form the basis of the research. The research includes the following questions: 1. What are the drivers for the adoption of e- banking in India? 2. What is the influence and role of age on the adoption of e- banking? 3. What is the influence of education and its role on adoption of e- banking? 4. What is the influence of income and its role on adoption of e- banking? 5. What is influence of trust or social influence or social status in accepting internet banking? 6. What are the steps recommended that should be undertaken by banks to improve the adoption among customers? Aim The main aim of the research is to point out on the barriers and benefits of adopting e-banking services in India and enriching the understanding and knowledge of factors influencing the adoption of e- banking services. Objectives 1. To examine the role of income, age, education, social status and their impacts on adoption of e- banking in India. 2. To understand other factors responsible for the acceptance of e – banking. 3. To understand the importance of e- banking in the improvement of banking facilities provided to the customers. 4. To understand the risks faced from e – banking  5. To describe the demographic difference between the users of e-banking and the nonusers, this will help understand the behavioral strategies of the customers. 6. Develop recommendations for banks on improving the accessibility and security for the customers. 7. To analyze the factors that discourages the customers from using e- banking services. Literature Review The research is based on theory testing. A number of factors have been identified that are responsible for the hampering or proliferation of adoption of technology among general public (Kumbhar, 2011). Recently, internet has been found as the prime channel for devising banking solutions for general public (Kumbhar, 2011, Tan et al., 2009). This popularity of internet has made the global and local competition very fierce (Gan.C, Mike.C, Limsombunchai.V.et.al 2006). The behavior or intentions of people have been considered as the main determinant in successful adoption of internet and technology (Fishbein and Ajzen, 1975). Researcher in the past have paid attention to the factors such as convenience, trialability, compatibility and relative advantage for the adoption of new technology, with almost less attention towards the demographic factors and their influence (Or et al., 2011, Rogers,1995). There are very few who have identified factors of age, income and education level and gender on the acceptance of the banking technologies (Al-Gahtani and King, 1999, Al-Somali et al., 2008). Moreover, age, accessibility of internet, education and the awareness of electronic banking and resistance of users were of paramount importance (Sohail and Shanmugham, 2004). Others have identified age, marital status, ethical background, qualification, income and residence area as the drivers (Gan et al., 2006). The disparities among the adoption of male and female users were deemed to be varying according to studies (Sharman and Kirsty, 2006). Many of the researchers have based their findings on the empirical evidence that acceptance of electronic banking is more in cases with higher level of education and higher level financial status in consumers or general public (Kolodinsky et al., 2000). Individual attitudes that consumers have and their beliefs are of more importance that factors of demographics for the adoption of new technology (Kolodinsky et al., 2000). Other factors such as privacy, security and convenience were found to be more prevalent among female users than males (Shergill and Li, 2005). Context The banking industry has revolutionized with the advances in information technology and the emergence of electronic banking. Increase in the competition and globalization has resulted in the change of the banking and the financial services. There is a rapid change in the demand of these financial services and the consumer’s behavior towards these services. It has become necessary to adopt new strategies with the change of traditional banking to electronic banking. Studies show that the awareness of new technologies and software in India is less which is the biggest obstacle. Though the e- banking system has reached globally there is huge gap in the adoption of these services between the developed countries and the developing countries. (licker and Motts, 2004). The problem in India is that the customers have not transferred their attitude towards using bank operations over the internet they believe in the old traditional way of banking. Some customers do not know how to use a computer others do not like the technology. There is lack of proper infrastructure and the internet connections are broken and slow in some places. Customers are not very confident using ATM machines. They are afraid of making purchases over the internet as they think that any small error will result in loosing money. Many people find the internet connections costs expensive. Despite of having such easy and better internet banking services the customers do not use it therefore the customer’s acceptance of e- banking need to be understood and the factors affecting the intention of their use of e – banking. The issue is critical as the answer to it will help in promoting a new form of e – banking system in future.

Epidendrosaurus - Facts and Figures

Epidendrosaurus - Facts and Figures Name: Epidendrosaurus (Greek for lizard in the tree); pronounced EP-ih-DEN-dro-SORE-us Habitat: Woodlands of Asia Historical Period: Late Jurassic (150 million years ago) Size and Weight: About 6 inches long and a few ounces Diet: Probably omnivorous Distinguishing Characteristics: Tiny size; long arms with clawed hands About Epidendrosaurus Archaeopteryx gets all the headlines, but theres a convincing case to be made that Epidendrosaurus was the first reptile to be closer to a bird than to a dinosaur. This pint-sized theropod was less than half the size of its more famous cousin, and its a sure bet that it was covered with feathers. Most notably, Epidendrosaurus appears to have been adapted to an arboreal (tree-dwelling) lifestyleits small size would have made it a simple matter to hop from branch to branch, and its long, curved claws were likely used to pry insects from tree bark. So was the late Jurassic Epidendrosaurus really a bird rather than a dinosaur? As with all of the feathered dino-birds, as these reptiles are called, its impossible to say. Its better to think of the categories of bird and dinosaur as lying along a continuum, with some genera closer to either extreme and some smack in the middle. (By the way, some paleontologists believe that Epidendrosaurus should actually be subsumed under another dino-bird genus, Scansoriopteryx.)

Northern Rock Bank

Northern Rock Bank Introduction Northern Rock is a bank operating under the umbrella of Virgin Money in the United Kingdom. It was established in 1965 and 30 years down the line, it had acquired approximately 53 building societies in England.Advertising We will write a custom case study sample on Northern Rock Bank specifically for you for only $16.05 $11/page Learn More Over the years this bank was being considered as one of the top lenders in the UK, especially in relation to mortgages. Prior to 2007, Northern rock had an investment plan which was to result in securitization. This according to Milne Wood involved â€Å"borrowing heavily in the UK and international money markets, extending mortgages to customers based on this funding and then re-selling these mortgages on international capital markets† (518). This, however, failed in 2007, when, owing to the global financial crisis, the demand for credit facilities from investors went down and Northern Rock was unable to pay back the credit it had obtained from the money markets. Lender of last resort This is a facility that allows banks to survive a financial crisis. It is mostly offered by the central bank. When Northern Rock was faced with the liquidity crisis in 2007, it looked up to the Bank of England for emergency support but this was not possible since it could not provide the facility. Many scholars, including Vesala (2006), Herring (2007), and Shin (2009) blame the situation in Northern Rock to the inability of the Bank of England to act promptly indicating that had it performed its role as a lender of last resort, the bank run would have been avoided. In fact, Shin indicates that â€Å"in its role as a lender of last resort, the Bank of England had been able to exert significant moral suasion over the banking sector, and the discount office was able to obtain information from banks on a purely informal basis† (2009,p.103).Advertising Looking for case study on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Other scholars believe that the Bank of England failed to act because Northern Bank had not provided it with sufficient information concerning its discount facilities. They also argue that the management of Northern Rock failed to heed to liquidity warnings and this acted as a hindrance when they needed assistance. These claims are, however, refuted by Freixas et al (2009). He asserts that a central bank is expected to perform its role irrespective of the actions of the other party (151). He states that â€Å"even when the central bank does not have the formal statutory responsibility for banking supervision, it can still obtain the information it needs to act as lender of last resort† (2009,p.152). Kane (2008) believes that the Northern rock issues exposed the faults in the government with regard to dealing with financial crisis. These faults include â€Å"the workings of e mergency liquidity assistance, some others the workings of deposit insurance and some others the insolvency and pre-insolvency arrangements† (2008, p.50). All these boil down to the functions of the Central bank as a lender of last resort. Financial crises in banks are one of the greatest challenges in most economies, since failure of banks spells out a failure in the entire economy. Liquidity lending is therefore considered to be an important factor since it is usually the solution to most banks going through a crisis. Some of the instruments available to governments dealing with financial crises include â€Å"the central bank’s role as a lender of last resort, deposit insurance schemes, government’s policies to shield depositors’ insolvency laws, among other preventive measures† (FSA internal Audit division, 2008, p. 39). Despite all the other actions, the lender of last resort factor is the most effective since it provides the banks with the cred it facilities to continue with their operations promptly. Prior to the crisis, Northern Rock was a successful institution though not influential to the point of thinking its failure would affect the economy in any way. This issue however attracted the attention of many financial analysts since it brought out the weaknesses of the Bank of England in dealing with crises faced by the banks.Advertising We will write a custom case study sample on Northern Rock Bank specifically for you for only $16.05 $11/page Learn More Due to this exposure, the government made a commitment to offer the required liquidity, and this worked since the bank run in Northern Rock stopped instantly. House of Commons (2008) therefore made a conclusion from this issue that the run would have been avoided all together, if all parties had been playing their roles effectively. This can, however, not be blamed on the Bank of England since it had not dealt with such an issue in the recent pa st. The activities in relation to acting as a lender of last resort were rarely carried out, hence the policies were outdated. This explains why the situation caught all relevant bodies including Northern Rock itself by surprise (House of Commons, 2008, p. 23). Northern rock and the FSA In the view of financial analysts, the crisis that hit Northern Rock in 2007 was predictable and some even argue that the crisis was not related to the activities of Northern bank per se. It is believed that the Financial Services Authority (FSA) played a major role in this. An article by Bank of England (2007) made an observation that FSA had given Northern Rock warnings concerning â€Å"the evolving trends in the market which included; sharp asset growth, systemic underpricing of risk, and the risk shifting characteristics of new financial instruments which would not be as water tight as they appeared to be† (2007,p. 2). FSA also indicated that the strategies being used by Northern Rock were unstable since they were depending on large scale market funding; hence, placing the institution in a risky liquidity position. Besides this, FSA had also made an observation in the government’s regulatory system which it claims had a number of loopholes that exposed the financial institutions to issues similar to those of Northern Rock. These, according to FSA (2008) included â€Å"a fundamental flaw in the depository protection scheme, lack of established special bankruptcy regime for banks, lack of predictable resolution regime for handling troubled banks and the existence of an institutional structure of financial supervision that separated responsibility for systemic stability and lender of last resort from prudential supervision of individual banks† (FSA, 2008, p. 33).Advertising Looking for case study on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Owing to the financial stability that had been witnessed in the region over the years, these observations seemed not to be having any ground, until the real risk was witnessed in Northern Rock, and this acted as a wakeup call to FSA. At the beginning of 2007, FSA considered Northern Rock as one of the best performing financial institutions in the UK. What it failed to realize at that time were the mortgage risks that it was exposed to owing to the fact that the institution dealt mostly with international investors. This risk was brought about by the financial crisis that was being witnessed all over the world during that period. Observations made later on indicated that â€Å"by mid-September, it had become apparent to Northern Rock that longer term funding markets were closed to it. Rollovers were largely continuing but at shorter and shorter maturities and Northern Rock lacked the option to draw on sufficient prearranged contingency liquidity lines of credit and did not benefit f rom a third party injection of capital† (FSA, 2008,p. 34). Due to this, FSA made an endorsement indicating that the Bank of England was deemed to provide liquidity facilities to all the banks that needed this kind of support in the UK, including Northern Rock. This crisis mainly focused on three institutions, the Bank of England, the treasury and FSA, owing to their joint responsibility of ensuring stability in the financial sector. FSA is blamed for permitting Northern Rock to raise its dividends irrespective of the already messed up financial position. An article by FSA Internal Audit Division (2008) supports these allegations by indicating that, â€Å"in in their own internal audits of the experience and compilation of the lessons learned from the Northern Rock failure contained a broad list of problems within FSA which included lack of rigor in the analyses conducted and failure to devote insufficient resources to monitoring what are regarded as high impact situationsâ₠¬  (Audit Division, 2008, p. 42). This report indicates that the major issues that led to this failure included organizational shortfalls, lack of sufficient skills in the supervisors, and poor methods of supervision, especially in large institutions operating at international levels. From the discussion, it is clear that FSA was in a position to save Northern Rock from the downfall, had it acted on the early signs. In fact, financial researchers such as Milne Wood (2008), Shin (2009) and Herring (2007) indicated that FSA devoted little time to the process of checking the level of stress tolerance in Northern Rock, hence ignoring many factors that eventually worked against the institution. Shin (2009) specifically points out that â€Å"insufficient attention was given to the banks challenging governance programs and risk mitigation processes† (2009, p.110). Herring (2007) concurrently indicates that â€Å"FSA not only ignored numerous early warning signs of troubles with N orthern Rock, but also ignored a breach of required minimum capital standards early in 2007† (p.10). Besides these, it was also noted that the bank failed to inform its stakeholders of this failure, and FSA was aware of this, but failed to take action. From this, a conclusion can be drawn that despite the fact that Northern Rock was responsible for its own peril, FSA also played a major role of not intervening where it would have been and also assuming the warning signs that were so loud and clear. Failure of prudential supervision In any financial setup, there are four aspects that need to be considered to come up with a stable financial system. The Bank of England (2007) indicates that â€Å"the first aspect is prudential regulation of financial firms, second is systemic stability, third is the lender of last resort role and finally the conduct of business regulation and supervision† (Bank of England,2007,p. 6). The issue in question especially in relation to the Nort hern Rock problem is the institution responsible for prudential supervision, whether it is the bank of Europe, the treasury or FSA. Irrespective of the institution responsible, this type of supervision is mandatory in financial institutions, failure to which results in cases such as what was experienced in Northern Rock (Freixas et al, 2007, p. 12). This conflict on the question of supervision mandate led the government to redefine the roles of the institutions in the financial sector. As a result of this, it was realized that supervision lies with FSA. The crisis in 2007 created the need to develop an official set of organizations and practices for assisting in the recovery of failing banks. This led to the officiating of a memorandum of understanding between the three bodies, that is, treasury, FSA and the Bank of Europe. A report by FSA internal audit division (2008) indicated that there were five basic standards that came with this agreement and these were â€Å"the existence o f a clear division of responsibilities, appropriate accountability arrangements, the avoidance of duplication of responsibilities, exchange of relevant information and mechanisms for crisis management† (2008,p.50). The causes behind the problem of Northern rock are interrelated to the extent that it is difficult to tell exactly what the main cause of this issue was. However, it was realized that prudential supervision of the banking institution was being conducted in a poor way and this is therefore deemed to be the greatest contributor to the whole problem. According to the Bank of England (2007) â€Å"this institution had been a pioneer in risk based supervision; focusing attention where it is most important† (2007, p. 8). This credit was however withdrawn after the Northern Rock crisis which revealed the poor laid supervision strategies. Many financial analysts believe that FSA was in a position to foresee this situation, long before it occurred. From this, it is evi dent that the Northern Rock crisis depicted a high level of failure in the prudential supervision of banking institutions. These failures according to FSA (2008) include â€Å"reliance upon seriously deficient accounting and capital adequacy standards; failure to monitor institutions in a timely, effective, and on-going fashion; failure to intervene appropriately when problems were identified; and promoting the welfare of the regulated institutions and the regulatory agency rather than the insurance fund or the taxpayer† (FSA, 2008, p.43). In fact, hearings in the House of Commons – a committee responsible for establishing the cause of the problems surrounding Northern Rock, indicated that FSA failed to perform effectively. House of Commons alleged that this was by way of â€Å"failing to monitor the institution and allowing Northern Rock to increase its dividends despite its troubled financial position† (2008, p.23). The supervisory evaluations of Northern Rock conducted by FSA did not put much emphasis on liquidity issues. Conclusion From the above discussion of the issues surrounding the Northern Rock problems, it is evident that these problems could have been avoided if all the parties concerned, that is, Northern Rock bank itself, the Bank of Europe and FSA were responsible for the actions that were taken before 2007. Northern Bank was responsible for the crisis in the sense that it did not perform a long term analysis of its actions. In its operations, it failed to consider the possibility of liquidity risks in the financial market. Bank of Europe was responsible in the sense that it did not act promptly as a lender of last resort in providing the credit requested by Northern Bank when it started experiencing the liquidity challenges. References Bank of England 2007, Financial Stability Report. Web. Freixas, X, Giannini, C, Hoggarth, G Soussa, F 2009, ‘Lender of last  Resort: a review of the literature’, Financial Sta bility Review, Vol. 7, pp. 151–167. FSA (2008) ‘The supervision of Northern Rock: a lessons learned review’, Internal Audit, pp. 32 43 FSA Internal Audit Division 2008, ‘The Supervision of Northern Rock’ A Lessons Learned Review, pp. 37 56 Herring, R 2007, ‘Resolution Strategies: Challenges Posed by Systemically Important Banks’, lecture at Regional Seminar on Financial Crisis Management, pp. 5 16 House of Commons 2008, ‘The run on the Rock’, Treasury Committee, Vol. 1, pp. 23 Kane, E 2008, ‘Regulation and supervision: an ethical perspective’, Principles v Rules in Financial Regulation, Vol. 2 no. 5, pp. 48 56 Milne, A Wood, G 2008, ‘Banking Crisis Solutions: Old and New’, Review (Federal Reserve Bank of St Louis), Vol. 1 no. 2, pp. 517–530. Shin, H 2009 ‘Reflections on Northern Rock: The Bank Run that Heralded the Global Financial Crisis’, Journal of Economic Perspectives, Vol. 23, No. 1, pp. 101–119 Vesala, J 2006, ‘Which Model for Prudential Supervision in the EU’ Monetary Policy and Financial Market Stability, Vol. 10, No. 1, pp.99-105.

Shifting the Social Balance Essay Example | Topics and Well Written Essays - 1000 words - 1

Shifting the Social Balance - Essay Example This shift represents a major step in the development of civilization because it focuses on hard evidence, observable fact, and verifiable conclusions. Science opened up the possibility of questioning long-held beliefs and examining them for truth while the Enlightenment made it possible to hold these debates in public, even refuting concepts that proved inaccurate. Revolutionary tools and ideas illustrate how the Scientific Revolution influenced society while the Enlightenment firmly established science and reason as the only logical standard on which to base worldly human thought. Copernicus, somewhat by accident, touched off the Scientific Revolution in the early 16th century when he wrote to Pope Paul III for support in his recent astrological findings. Using solid math, appropriate research and direct observation, Copernicus concluded that the Earth revolved around the sun rather than, as the Church would have people believe, the Sun revolving around the Earth (Copernicus 1543 c ited in Levick, 2004: 524). His evidence was meticulously outlined and his conclusions were sound, but his ideas were introduced to a mostly unreceptive public who still preferred to believe they were central to God's creation. Galileo, introducing some of these same ideas, would gain greater exposure for the idea thanks to the recent invention of the telescope. This made it possible for other people to go and observe with their own eyes the rotations both Galileo and Copernicus had outlined - helped a bit with Galileo's high-class 'star-gazing' parties (Kaku, 2008). Through a simple telescope such as those used by Galileo and his friends, it is possible to see the craters of the moon and the orbits of some of the moons of Jupiter. These observations, combined with sound mathematic principles, made it possible for Galileo, and Copernicus, to prove reality. â€Å"All reasonings about mechanics have their foundations in geometry, in which I do not see that largeness and smallness mak e large circles †¦ subject to properties different from those of small ones† (Levick, 2004: 322).

The Impact of Automakers Demands on the Steel Industry Assignment

The Impact of Automakers Demands on the Steel Industry - Assignment Example Ford’s River Rouge factory’s partnership with steel mill has gone for a long time with the partnership leading to the construction of highly popular vehicles in America, ranging from the Model A to F-150 pickup truck. However, in 2014, Ford announced its switch to the use of Aluminum in the construction of its F-150 trucks. This is not just a concern to Steel mill but all steelmakers within the US as most of the car makers have turned their attention towards the use of aluminum in the construction of cars. Being the second vital source of revenue for steelmakers, only after the construction industry, the automakers constitute about 20 percent steel sales for the steel makers within the US on an annual basis. As such, a shift towards aluminum as a replacement of steel would have a great impact on the revenue of the steel industry. The automakers are pushed towards adopting the lighter steel as a major component of their cars as a result of the push by both the administra tion and the consumers to develop fuel-efficient vehicles. The steel industry has effectively and rapidly responded to this shift in consumer demands by developing lighter, high-strength steel that would meet the needs of the consumers. For Steel Mill, this has led to the adoption of the lighter steel by Ford in building the frame of its F-150 trucks. This type of steel is sold at a lower price than the initial steel, which has reduced the cost for the consumers while at the same time increasing the sales for the steel-makers. Other companies within the steel industry have also been forced to merge with other companies that have proficiency in the development of lighter steel, as a strategic move aimed at holding onto their consumers.