Plato’s Republic Three Parts of the Soul Essay

In his book The Republic, Plato searches for justice within the individual and what makes a person just. By comparing his sense of what is just at a political level and what is just at a psychological level he proposes three virtues of the individual which will make that particular person just. The virtues are of wisdom, courage and moderation. A just man won’t differ at all from a just city in respect to the form of justice; rather he’ll be like the city (Republic 435b). Once Plato has found justice within the city he seeks to transfer it back into the human soul. Plato talks about the ability of a person to be indecisive about actions such as drinking when something in their soul forbids them to do so even if they desire it. This indecisiveness can be transformed into internal conflict between more than one part of the soul. One part of the soul is the rational part and the part that lusts, hungers, thirsts and gets excited is the appetitive part (439d). Plato then identifies a third part of the soul, the spirited part, which is used to create emotions. Appetite is a really big part of our souls. It contains both necessary desires, which should be indulged (such as the desire to eat enough to stay alive) and unnecessary desires, which should be limited (such as the desire to eat your entire birthday cake). Though the appetite lusts after many things, Plato says it’s money-loving, since money is required for satisfying most of these desires. It is therefore obvious to Plato that the rational part of the soul should rule, as the rulers in the city do, because they both display the virtue of wisdom and can therefore exercise foresight on behalf of the entire soul. 441e) Similarly, just as the guardians assist the rulers in maintaining justice within the city, the spirited part of the soul will use emotions in order to maintain order and harmony within the soul which is justice. These two parts of the soul will be able to control its appetitive part, which may, through its insatiable desire for money, attempt to overthrow its particular role and rule over the body and even tually the classes that it is not naturally suited to rule over (442a). Consequently, justice in the individual and justice in the city would be overturned leading to chaos and war. The rulers and guardians exist in order to control and direct the producers who are the majority of the population, as the rational and spirited parts of the soul rule the desires of the individual. Therefore a just person would be one with a spirited part of the soul that would persevere through pleasures and pains in order to carry out the rational part’s intentions on what should be feared and what should not (442b). This ability is identifiable as the virtue of courage, which is evident in the guardians. Moreover, this pattern of parallel virtues between the city and the soul continues as a person’s reason is most able to make decisions about what is advantageous for each part and for the whole soul when he/she has the knowledge associated with wisdom. As a result the desires should be kept in a state of moderation by the rational part of the soul so that the ruler and the ruled both agree that the rational part should rule and not engage in civil war (442c). In conclusion, justice in the individual is similar to justice within the city where a person puts himself in order, is his own friend, and harmonizes the three parts of himself like three limiting notes in a musical scale (443d). In the city, justice is obtained by the three parts of society each fulfilling their role as best they can, and displaying the same three virtues of wisdom, courage and moderation. This leads to a harmony between the parts, the best possible combination, which is described as justice by Plato both within the city and within the soul. This should be obvious as; after all, a city is made up of many individuals. The harmonious or rightly ordered soul, then, is one which practices the virtues of each part. The virtue of the appetites is moderation; the virtue of the spirit is courage; the virtue of the intellect is wisdom. Through these virtues the human soul attains a certain concord or integrity, which Plato understood as the only real happiness worthy of the name. The overall purpose of the Republic is for Plato to understand what makes people happy. He discovers this through the process of dividing the soul up and seeing how they work together. Ultimately, if you live a just life you live a life of wisdom and your rational side comes first. If you live an unjust life you live your life by honor, victory, or money. Most men and women living unjust lives have a one-track mind. They forget their other priorities and doing what’s right just so they get what they want. Just people always beat and unjust person and live a happier and fuller life. His separation of the soul is very simplistic altogether. However, his individual ideas were very complex. Plato wanted us to to think for ourselves to discover how we decide to arrange our parts of the soul.

Plath Sample answer

â€Å"Plath’s provocative imagery serves to highlight the intense emotions expressed in her poetry.†I agree completely that Plath uses a lot of provocative imagery to highlight the intense emotions expressed in her poetry.The poem I will discuss in light of this statement is ‘Morning Song’.In this poem I found a lot of provocative imagery that made me feel various emotions. One provocative image that stood out for me was, ‘new statue’. I found this image provocative because it’s abnormal to describe your new born baby as a statue. It provoked/caused anger and confusion in me. It made me angry because I think that Plath is suggesting that her child is a possession. I believe it is wrong to have a child just to add to your life like a new car or home. It also confused me because the title suggests something positive but to me this image is negative.Another provocative image that stood out for me was, ‘In a drafty museum, your nakedne ss shadows our safety’. This is a provocative image because I find that Plath is being harshly honest when it comes to her relationship with her husband. To describe your home as being a drafty museum is unusual. It made me feel respect towards Plath but also anger. I respect her for being able to tell the truth about her relationship. To express the loneliness and depression she feels is courageous. However I feel anger at the idea that somehow having a child would fix the problems in their relationship, ‘your nakedness shadows our safety’.A third provocative image that stood out for me was, ‘I’m no more your mother’. This to me is extremely provocative. Her child is only born and already Plath is feeling that she is not or should not be a part of her daughter’s life. This provoked/caused me to feel sadness and pity for Plath. I feel that she’s afraid that her child will soon be an individual and will not need her mother’ s advice or encouragement. This makes me feel sad for Plath as a mother, to already be thinking of when her daughter leaves the home instead of enjoying the moments of her being a child. I also feel pity  for Plath because I feel she hopes that her child won’t need her. I think she feels this way because she’s afraid her child will be like her and take on her depression.The final provocative image that stood out for me was, ‘In my Victorian nightgown’. This is a provocative image because again I think Plath is being blatantly honest when it comes to her relationship with her husband. I think she uses the nightgown as a symbol for a lack of passion in her relationship with her husband. This image made me feel respect for Plath. I respect her for being able to tell the truth about her relationship. To express the loneliness and depression she feels is courageous especially when it’s something intimate like their sexual relationship.Overall I found t hat Plath uses a lot of provocative imagery to make a statement, to shock and cause the reader to take notice of what she is trying to say. I also feel she uses these images in a great way to provoke or create intense emotions for the reader and suggest these are the same emotions she herself is going through.

Sex Trafficking; Modern Day Slavery

eSasha Gibson Kristy Weiberg English Comp II December 10, 2010 Sex-Trafficking: Modern Day Slavery Human trafficking in the United States is a reality. What have in do the things child labor, forced sex, forced marriage, and forced labor have in common? The first words that come to mind are Human Trafficking, a modern day form of slavery. Terrible activities of human trafficking are happening in several countries around the world. However, this kind of activity also happens in industrialized countries.According to the department of state of the United States of America government, human trafficking also happens inside the walls of United States. As claimed by the Polaris Project, â€Å"an estimated 17,500 foreign nationals are trafficked annually in the United States alone. The number of US citizens trafficked within the country is even higher. An estimated 200,000 american children are at high risk of trafficking into the sex industry each year. † And the biggest human traffi cking in the US (domestic and transnational trafficking brought into the US) is sex trafficking.But, why is this modern slavery happening, even in the most industrialized countries, like the United States? The prinicpal reasons most people will think is poverty and inquity. However, according to the Polaris Project even if these reason are good driving forces, they aren’t the prinicipal reasons why human trafficking does happen. There’s a market for modern slavery, and this market is lucrative. Also, there’s no real danger of prosecution for the traffickers.Even if human trafficking is present inside the United States, the US government has created a series of laws, to comply to the minumim of requirements for the elimination of trafficking. Aggressive laws against human trafficking continue to be voted by the Congress, like the new law against sexual explotation of children by sex traffickers. This law will give a supplement of 45 million dollars to law enforce ment and victim-assistance effort. In prevention, the United States does try to cut n commerical sex and cheap labor, to cut the grass under the feet of human traffickers, as well as they do law enforcement in critical industry areas, and finally to educate the public. However, even if these measures are really important and efficient the problem continues to strike. As long as there is a demand, and the demand is global, human trafficking will continue. According to the U. S Department of Health and Human Services, there are many emotional, physical and psychological repercussions due to the sex slave trade.Children as young as six years old are being trafficked on a daily basis. Young girls are being made to do 10-20 â€Å"tricks† a day. Many will never be able to have children because of the extensive damage to their vaginal areas. Disease is also a common factor. Sexually transmitted diseases run rampant in the sex slave trade. Girls as young as six years old have herpes, syphilis, HIV, among other diseases. Many are used until it is discovered they have HIV and become to sick with the disease to work any longer.Then are released and thrown into the streets. According to CBS News, poverty stricken families in third world countries will sometimes drastic measures to prevent starvation, even sell their young children for sex. Thousands of children every year are sold into the sex slave trade by parents or other family members. Family members have stated that they had no choice, some of them had no other means of getting food for their children. The United States is the lowest ranked human trafficking country in the world, for now.The sex slave trade is growing all over the world and the U. S is no different. Thousands of sex slaves are trafficked into the U. S every year and that number is growing according to the U. S Department of Education. Although the problem with the sex trade seems too big for anyone to make a real difference, there are many or ganizations out there who are offering hope to these victims, such as Abolish Slavery and Not For Sale. These organizations are dedicated to ending the sex slave trade all over the orld. Their belief is that if we band together and stand up for what is right, the sex slave trade will be abolished.Works Cited Gore, Martha R. â€Å"Sex Trafficking in the United States: Enslavement into Prostitution A Billion Dollar Growing Industry. † Suite101. com: Online Magazine and Writers' Network. Martha R Gore, 28 Dec. 2008. Web. 10 Dec. 2010. http://www. suite101. com/content/human-trafficking-in-the-united-states-a86817. Gagnon, Donald. The Reality of Human Trafficking in the United States. † Suite101. com: Online Magazine and Writers' Network. Donald Gagnon, 29 June 2010. Web. 10 Dec. 2010. http://www. suite101. com/content/the-reality-of-human-trafficking-in-the-united-states-a253902. â€Å"Human Trafficking of Children in the United States-A Fact Sheet for Schools. † U. S. Department of Education. U. S. Department of Education, 10 Sept. 2009. Web. 10 Dec. 2010. http://www2. ed. gov/about/offices/list/osdfs/factsheet. html.

Dave and Busters Tour Coursework Example | Topics and Well Written Essays - 500 words

Dave and Busters Tour - Coursework Example The gaming zone is a major attraction at all the branches. Games on offer include pool and bowling. Whereas in the arcade gaming zone Star Wars, Kung Fu Panda, Transformers, Batman, Fishbowl Frenzy and various others are available to play. In addition to all this the restaurant also provides sponsorships for major events such as WWE and UFC. Keeping in mind these offerings it is important to understand that the franchise needs some refurbishments. Hence if I were running the place I would make the following changes. Food is an attraction for people and delicious food is a reason for them to come again. If I were to set the menu of the restaurant I would do it with keeping in mind what type of crowd the place generates. Prices of the food items need to be monitored as the prices to certain dishes are high. My target audiences are the kids because they require a place to hangout, where they could eat and get entertained. I would include various deals for youngsters by which they could enjoy a worthy meal and could also try their hands on a few games. I would also provide them with bottomless sodas. I would also set the menu for other age groups. If certain people just come to drink or play games I would offer them with food tastings that would tempt them to get the whole meal. Another major addition to the food section is the commencement of breakfast. Breakfasts are the first meals of the day, hence if we provide healthy and delicious breakfast to our customers they would come back later for the other attractions. I would reassess the gaming and arcade zone again as it attracts people from all age groups. I would sponsor championships for billiards and bowling. The sponsored championships would have good prize money and a chance to become a lifelong member at Dave and Buster’s restaurants. Whereas for the video gaming section a similar scheme can be applied, where I would organize regular events for the gamers. Playing video games

Morning warm-up, QA and QC procedures for Varian Linear Accelerator Research Paper

Morning warm-up, QA and QC procedures for Varian Linear Accelerator System - Research Paper Example In this paper Morning warm-up, QA and QC procedures to be broadly considered within any organization/hospital in relation to the Linear Accelerator System are discussed. It is stated â€Å"Daily, monthly, and annual quality control (QC) of linear accelerators are part of the major tasks of the medical physicist to verify that patients are receiving proper radiation treatment."1  The control tests consist of the measurement of beam output, verification of the beam energy, and determination of the beam flatness and symmetry in a linear accelerator parlance. However, QA and QC procedures cover wide areas aiming all- round quality in the system Introduction In a computer assisted Varian radiation therapy machine, â€Å"a computer controls the operations of the machine to automatically set the position of the gantry relative to the couch for treatment of a patient. The automated motions of the gantry and the couch are simultaneous for decreasing the setup time. In addition, the comput er includes a collision avoidance program which averts collision between the couch or patient, and the gantry†. 2 A linear accelerator (LINAC) device is used for external beam radiation treatments for cancer and other radiation therapies such as Intensity-Modulated Radiation Therapy (IMRT) and Image Guided Radiation Therapy (IGRT).... It is stated â€Å"To overcome the problem of differential heating, it is important to slowly increase the heating of a cold tube insert. The warm-up process must be carried out first thing each morning and repeated during the day if the workload is insufficient to keep the tube warm. The manufacturer’s guidance should be followed, but in general the warm-up period will be between 10 and 20 min. "3(p146)   However, in a Varian machine, automatic warm-up program is in-built and gets activated when the temperature falls below the operating temperature. However, standard QA and QC procedures with regard to morning warm up in general is essential for quality in operations and service. Warm-up tests are carried out by the morning warm-up therapist by following standard procedures as laid down with reference to several factors and the tolerance levels. Quality Control and Quality Assurance Quality Control or Quality Assurance is a comprehensive and ongoing exercise. According to ISO definition, â€Å"Quality control  is a set of activities intended to ensure that  quality requirements are actually being met.† and â€Å"Quality assurance  is a set of activities intended to establish confidence that quality requirements will be met† .4 Both Quality Control and Quality Assurance are the parts of Quality Management which includes direction, control and coordination in relation to quality. The efficacy of the system could be ensured through proper maintenance of records, review of the activities with reference to the objectives, periodical preventive maintenance programs and continuous monitoring of the safety measures. QC/QA Procedures for Varian linear accelerator system Varian states5 that

Should We Do More To Deal With The Problem Of Domestic Violence, Or Is Research Paper

Should We Do More To Deal With The Problem Of Domestic Violence, Or Is The Problem Exsggerated - Research Paper Example Before going into the discussion regarding whether problem of domestic violence exists or not, let us get a better understanding of what domestic violence actually is. Domestic violence is a type of violence that occurs in a family. Some close family relationships such as husband, wife, children, or people having blood relationships with each other are generally involved in the domestic violence. One of the biggest dilemmas regarding domestic violence is that women generally are not aware of their basic rights which are given to them by the governments and that is the reason why they do not speak a word in front of anyone as the result of which they are constantly tortured and violated by their husbands. Although a lot of research on the issue of domestic violence has been done in the past, but we hardly find any research typically based on the issue of domestic violence as a real or exaggerated problem. However, there is some helpful research, which is done on different topics related to domestic violence. I will also make use of previous research in order to get a suitable answer to my question. Berrios and Grady assert, â€Å"Domestic violence is a pervasive and frequently unrecognized cause of injury among women†. Domestic violence can also be defined as those violent behaviors that are shown by one person to the other person in order to gain or maintain a psychological or physical edge over the other person. Stets, in his research, found that repeated violent acts usually occur due to the desire of men to take control of the behavior of women living around them. Richarson and Feder found that a large number of women having relationships with their boyfriends and husbands undergo physical injuries, mental cruelty, and forced sexual relationships. In the past, the issue of domestic violence was not considered an important issue. That is the reason why it has come out as one of the major problems for the today’s world. People also did not use to think much

Abstract Artworks Analysis Term Paper Example | Topics and Well Written Essays - 750 words

Abstract Artworks Analysis - Term Paper Example The essay "Abstract Artworks Analysis" aims to compare two abstract paintings. In the following sections, the researcher shall analyze two works of modern art - in particular abstract art. The first piece of art work that we will discuss is an abstract art work in acrylic. The work is a visual representation of a shabby neighborhood with houses and electric poles lining the street. The street is shown to be half lit by sunlight and the other half overcast by the noon shadows of a bigger property and some small dwellings. The colors used are muted pink, magenta, greys, olive green, white, beige and brown. The overall look is melancholy and that of emptiness. The second piece of art is another abstraction done in acrylic too of much vibrant colors. The general colors that stand out are bright canary yellow, orange, rust, royal blue, sky blue, saffron yellow, red, purple, and white overtones etc. The work is represented by geometrical shapes such as circle, square, triangle, ellipse, rh ombus and semi-circles etc. At first glance, the shapes look like abstract placement but upon close observation one sees that the artist has cleverly integrated the shape of a female head with earring. There are other figures too - a man or child perhaps tending to a sick person in bed. The atmosphere seems to be that of illness and sadness. The two abstract pieces of work demonstrate that modern art can both be abstract and in-depth if one look closely at them regardless of their approach or medium.

Discuss the knowledge, skills and experiance you will need to manage Essay

Discuss the knowledge, skills and experiance you will need to manage contemporary health and social care services in the UK - Essay Example Defining the contemporary approaches which are used as well as how these develop into alternative needs within health care then create a stronger understanding of how management theories and styles create a direct relationship to other needs. The management theories and styles is the first concept which relates to the health care and policies that are intertwined with the various concepts of the system. There are a variety of styles which are portrayed and used for the development of a specific system. The first is the scientific methodology, introduced by Frederick Taylor. The approach which is taken with this is to develop a scientific and practical approach to the management styles to maintain and control the health care systems that are used. The scientific term is developed specifically with the ideology of favoring factual information over psychological information and knowledge that is used within society. The approaches as well as the policy development that is created is then based on creating factual information related to what is needed within the health care systems and not creating alternative responses or styles which may interfere with the expectations from a scientific viewpoint. The nature of this policy development is able to mainstream policies without interference with the complications which sometimes occur with health, specifically in terms of psychological and personal relationships that may be developed (Simpson, Connor, 2011: 25). The second way in which management is developed within health care is developed by Weber and is based on bureaucratic development with the policies. The initiation which is taken with bureaucratic policies is based on finding the legal and governmental approaches to the management styles. Decision making, policies and daily needs within health care are available specifically through the ideology of the political system. This is created with terms of

Enterprise Rent-a-Car Case Study Example | Topics and Well Written Essays - 1000 words

Enterprise Rent-a-Car - Case Study Example lue, or market share, good management systems to clearly identify true performance and profitability (Gardiner, 2005). These success drivers are obvious but it is amazing how many businesses ignore their importance. This is particularly true in difficult markets or economic recession where short term financial constraints lead to cost cutting. Early casualties are staff levels, training, research, product innovation, non-essential' customer care etc. These are targeted because they produce relatively easy short term cost reduction. Ironically they often also reduce the ability of the business (Rent-A-Car Home Page 2008). Enterprise Rent-a-Car follows a focus strategy (differentiation). ... 2. In order to execute strategy, Enterprise Rent-a-Car, introduces strong corporate values and philosophy which shapes the culture and relations. The management approach is relevant to the commercial requirements of the marketplace and the situation of the business. The main advantage of Enterprise Rent-a-Car is "service-focused business practices, including picking customers up and focusing marketing efforts on repair shops, insurance companies, and policyholders whose cars have been damaged or stolen" (329). The pace of change has significantly increased in recent years and the competitive arena has enlarged, driven by corporates with an appetite for new markets, reduced barriers to international trade, and technology. Undoubtedly, customer needs are discovered and fulfilled. After all, that has been the entire refrain of our tune of value. But firms that try to deliver value in different countries with little or no attempt to build on value capabilities previously accumulated else where are, in effect, like conglomerates whose different products have no conscious value relationship to one another. Unique mission and values of the company support its growth and stable market position (Rent-A-Car Home Page 2008). Family ownership helps the company to escape restructuring and keep its unique values and brand image. Enterprise Rent-a-Car has responded to competitive crises by establishing employee-focused programs to improve productivity and quality. Managers in Enterprise Rent-a-Car have adopted the view that customer focused programs can unlock the creative potential and commitment of their customers (Dobson and Starkey 2004). 3. The main determinants of success are the optimal use of human,

The Promise and The Blessings Assignment Example | Topics and Well Written Essays - 250 words

The Promise and The Blessings - Assignment Example I have known many incidents where God provided for him. When God instructed Moses, along with his brother Aaron, to deliver the Israelites out of slavery in Egypt under Pharaoh, God assured Moses that he does not have to worry as God will perform all those plagues, and will eventually soften Pharaoh’s heart in the end. When I read the first chapter of Exodus, it says, Then the LORD said to Moses, ‘Now you will see what I will do to Pharaoh: Because of my mighty hand he will let them go; because of my mighty hand he will drive them out of his country.† Indeed, the Lord fulfilled this promise. He, through Moses, set the Israelites free from slavery. I also read in Exodus 33:14 that, The LORD replied, â€Å"My Presence will go with you, and I will give you rest.† I read a verse, which fulfilled this promise. In Exodus 13:21-22, it explained how the Israelites were guided by the Lord in the form of pillars of clouds. Surely, God was with Moses and the rest of the Israelites as they traveled into the Promised Land, which God has given. He guided them and provided for their

Human resouces management is nothing more than personal management Essay

Human resouces management is nothing more than personal management with a new label, Critically evaluate this statement - Essay Example Consequently, the concept of labor power that was sold by human beings had to be effectively organized. Hence, owner of firms and organizations began adapting to the world of management through the use of personnel management that had the sole responsibility of hiring and firing employees. Actually, employees welfare demand grew by the day, the world of management grew simultaneously to the extent that the personnel management could not accommodate the increasing demand for employees’ welfare and as such, most organizations and firms began replacing personnel management (PM) with human resource management (HRM). Apparently, the term human resource management has been used across the world for approximately a century. According to Soni (2013) the emergence of Human resource management (HRM) is believed to have started in England in the early 18th century when the west was experiencing the apprenticeship and craftsmen era. Moreover, the emergence of HRM was also significantly associated with the arrival of the industrial revolution. As the 19th century begun, a philosopher by the name Taylor argued that it was necessary to combine scientific management and industrial workers psychology, and further introduce the two concepts in the business world. In light of this, the philosopher further articulated that it was imperative for workers to be managed not only for the purpose of making work to be efficient, but also ensuring that the workers were psychologically fit to hold the title of being employees. Similarly, the drastic changes that were being witnessed especially in technology, growth of various organizations and the rise of different unions greatly facilitated the development of personnel departments that were run by welfare secretaries soon after the beginning of the 19th Century. Importantly, the effective management of human resource in any organization is to ensure that competitive advantage is gained in the marketplace.

Medical Marijuana Essay Example for Free

Medical Marijuana Essay â€Å"Marijuana is the finest anti-nausea medication known to science, and our leaders have lied about this consistently. [Arresting people for] medical marijuana is the most hideous example of government interference in the private lives of individuals. It’s an outrage within an outrage within an outrage†. Peter McWilliams Author and Advocate for Medical Marijuana Medical Marijuana has found its place once again as the medical plant that is recognized for its healing potential and properties. How the Government has suppressed its positive potential and healing powers for over 25 years. With the help from many patients, loved ones, research departments and advocate groups to get the Government’s attention to see and understand that the terminally ill and the sick should not be treated as common criminals. They are only trying to find some peace and serenity in their last days. The struggle and fight that has been going on for the last 25 years against the Government. The people were finally heard, with the legalization of Medical Marijuana. The Government wants to regulate everything for their own best interest, the positive effect of decriminalizing marijuana for the terminally ill and the positive economic benefits for our community. Cannabis Sativa, Marijuana, Weed, Herb, Mary Jane these are just a few names that this little 5 leaf plant goes by. How could this life saving and healing plant get such a bad reputation? When clearly it has nothing but positive powers, people all over the world have been using marijuana for thousands of years. Cannabis has been around since the Garden of Eden, it is even mentioned in the Bible. Yes in the Bible, in Exodus (30:22-23) â€Å"Holy anointing oil, as described in the original Hebrew version of the  recipe in Exodus (30:22-23), contained over six pounds of kaneh-bosem, a substance identified by respected etymologists, linguists, anthropologists, botanists and other researchers as cannabis, extracted into about six quarts of olive oil, along with a variety of other fragrant herbs. The ancient anointed ones were literally drenched in this potent mixture† (Bennett, 2010). â€Å"Marijuana proponents suggest that the recipe for the anointing oil passed from God to Mos es included Cannabis, or kaneh-bosem in Hebrew. They point to versions calling for fragrant cane, which they say was mistakenly changed to the plant calamus in the King James Version of the Bible† (Kari, 2011). Cannabis was good enough for God and Moses, then how come it is not good enough for us now? The United States Government wants to be in control and regulate everything we do as a United State Citizens. Marijuana was once considered a pharmaceutical medication used for a wide verity of reasons. In fact cannabis has a deep rooted history in what is now known as the United States of America. â€Å"Christopher Columbus brought Cannabis Sativa to America in 1492† (420 Milestone History Marijuana, (n.d.), 2010). â€Å"From 1000 to 1500, the use of marijuana spread further. In 1619, a law passed in Jamestown Virginia Colony, which required farmers to grow hemp. The French and British grew hemp in Colonies of Port Royal, Virginia, and Plymouth. Marijuana also became a major trade item between Central and South Asia during this time† (420 Milestone History Marijuana, (n.d.), 2010). The United States also had Presidents’ who grew cannabis. Yes Presidents’, â€Å"in Mount Vernon, George Washington grew hemp as his primary crop in 1797. Also Thomas Jefferson grew hemp as a secondary crop at Monticello. In 1840, medicines with a cannabis base were available in U.S. pharmacies. Hashish was available in Persian pharmacies† (420 Milestone History Marijuana, (n.d.), 2010). Therefore when did it become a crime to cultivate, possess, consume, and dispense marijuana? â€Å"In 1906, the Pure Food and Drug Act was passed in the U.S. and the Food and Drug Administration was formed. This was the first time drugs had any government oversight† (420 Milestone History Marijuana, (n.d.), 2010). â€Å"In 1930, The Federal Government gave control of illegal drugs to the Treasury Department, they created the Federal Bureau of Narcotics. Harry Anslinger a prohibitionist became the first commissioner  in 1930, he held that position until 1962. Anslinger declared war on drugs and effectively shaped America’s view’s and thought’s about marijuana† (420 Milestone History Marijuana, (n.d.), 2010). â€Å"October 2, 1937, Anslinger got Congress to enact the â€Å"Marihuana Tax Act†, which is to imposed registration and reporting requirements and a tax on the growers, sellers, and buyers of marijuana† (Eddy, 2010 p.2). In Eddy’s report he also writes that â€Å"Dr. William C. Woodward, legislative counsel of the American Medical Association (AMA), opposed the measure. In oral testimony before the House Ways and Means Committee, he stated that â€Å"there are evidently potentialities in the drug that should not be shut off by adverse legislation. The medical profession and pharmacologists should be left to develop the use of this drug as they see fit. Two Months later, in a letter to the Senate Finance Committee, he again argued against the act: â€Å"That there is no evidence, however, that the medicinal use of these drugs [cannabis and its preparations and derivatives] has caused or is causing cannabis addiction. As remedial agents they are used to an inconsiderable extent, and the obvious purpose and effect of this bill isto impose so many restrictions on their medicinal use as to prevent such use altogether. Since the medicinal use of cannabis has not caused and is not causing addiction, the prevention of the use of the drug for medicinal purposes can accomplish no good end whatsoever. How far it may serve to deprive the public of the benefits of a drug that on further research may prove to be of substantial value, it is important to foresee†. â€Å"Despite the AMA’s opposition, the â€Å"Marihuana Tax Act† was approved, causing all medicinal products containing marijuana to be withdrawn from the market and leading to marijuana’s removal† (Eddy, 2010 p.2). October 2, 1937, â€Å"On the very day the â€Å"Marihuana Tax Stamp Act† was passed; the FBI and Denver police raided the Lexington Hotel and arrested two people: Samuel R. Caldwell and Moses Baca. Three days later, Caldwell, a 58 year old unemployed laborer, became the first person in the U.S. to be convicted of selling of marijuana without a tax stamp. He was sentence to four years oof hard labor in Leavenworth Penitentiary. Presiding Judge J  Foster Symes, had previously stated that he considered Marijuana to be the worst of all narcotics and vowed to impose harsh sentences for violations of the â€Å"Marihuana Tax Act†. Caldwell was also fined $1,000 for the two marijuana cigarettes that were found in his possession. Baca, who was his customer, was found guilty of possession of Marijuana and was sentenced to 18 months in prison. Both men served their full sentences. Caldwell died a year after his release† (420 Milestone History Marijuana, (n.d.), 2010). This is why that â€Å"we the people† stood up, banded together, and formed  Organizations. People became spokespersons, advocates, â€Å"a voice for the cause†. Take for example, Peter McWilliams. He is the man I quoted in the beginning. â€Å"Peter was a self-help author, who advocated for the legalization of marijuana. He wrote over 40 books including â€Å"How to survive the loss of love†, â€Å"Ain’t nobody’s business if I do†. Along with poetry and how to use microcomputers. In 1996, he was diagnosed with AIDS and non- Hodgkin’s lymphoma. Like so many patients suffering from cancer or AIDS, he had extreme difficulty on keeping down the drugs that controlled his illnesses. He began to smoke marijuana to control the drug-induced nausea. It saved his life† (US: The Life and Death of Peter McWilliams, 2002). â€Å"NORML, the National Organization for the Reform of Marijuana Laws, was founded in 1970, as a nonprofit public-interest advocacy group whose mission is to end marijuana Prohibition† (Historical Timeline Medical Marijuana, (n.d.), 2011). â€Å"In 1971, President Nixon declared war on drugs. In 1972,The bipartisan Shafer Commission [National Commission on Marijuana and Drug Abuse], appointed by President Nixon at the direction of Congress [and chaired by former Pennsylvania Governor Raymond Shafer], considered laws regarding marijuana and determined that personal use of marijuana should be decriminalized. Nixon rejected the recommendation, but over the  course of the 1970s, eleven states decriminalized marijuana and most others reduced their penalties (Busted: Americas War on Marijuana., 2010). Possession of marihuana for personal use would no longer be an offense, but marihuana possessed in public would remain contraband subject to summary seizure and forfeiture. Casual distribution of small amounts of marihuana for no remuneration, or insignificant remuneration not involving profit would no longer be an offense (Busted: Americas War on Marijuana., 2010). 1973,â€Å"The Bureau of Narcotics and Dangerous Drugs (BNND) and the Office of Drug Abuse Law Enforcement (ODALE) are merged to form the US Drug Enforcement Agency (DEA)† (420 Milestone History Marijuana, (n.d.), 2010). In November, 1976, a Washington, DC man [Robert Randall] afflicted by glaucoma employed the little-used Common Law Doctrine of Necessity to defend himself against criminal charges of marijuana cultivation† (US v. Randall). â€Å"On November 24, 1976, federal Judge James Washington ruled Randalls use of Marijuana constituted a medical necessity, Judge Washington dismissed criminal charges against Randall. Concurrent with this judicial determination, federal agencies responding to a May, 1976 petition filed by Randall, began providing this patient with licit, FDA-approved access to government supplies of medical marijuana. Randall was the first American to receive marijuana for the treatment of a medical disorder† (National Institute on Drug Abuse [NIDA] 1998).  1978, â€Å"New Mexico passed the first state law recognizing the medical value of marijuana  [Controlled Substances Therapeutic Research Act]. Over the next few years, more than 30 states  passed similar legislation. (Scott, 1994). Voters in California [pass] a state medical  marijuana initiative in 1996. Known as Proposition 215(45 KB), it permits  patients and their primary caregivers, with a physicians recommendation, to pos sess and cultivate marijuana for the treatment of AIDS, cancer, muscular spasticity, migraines, and several other disorders; it also protects them from punishment if they recommend marijuana to their patients (Joy, PhD. Mack, 2011) The New England Journal of Medicine publishes an editorial written by Jerome P. Kassirer, MD, titled Federal Foolishness and Marijuana. The article states: Federal authorities should rescind their prohibition of the medicinal use of marijuana for seriously ill patients and allow physicians to decide which patients to treat. The government should change marijuanas status from that of a Schedule I drug (considered to be potentially addictive and with no current medical use) to that of a Schedule II drug (potentially addictive but with some accepted medical use) and regulate it accordingly† (Kassier, 1997). In January 2004, California passed SB 420, which states the guidelines for growing marijuana. Yes this bill also went through the court system. In May 2008, second district court of appeals ruling in Kelley case that the possession limits set by SB 420 violate the California Constitution because the voters approved Prop 215 can only be amended by the voters. With Prop 215 you can legally be in possession of marijuana and with SB 420 you can legally grow. This has drastically reduce crime in our cities and form a more productive society through its positive uses. In 2013, medical marijuana is a thriving and growing business for all those involved from the growers, to the â€Å"caregivers clubs† with their green cross symbols above their doors (yes like the Red Cross, but green) making it possible for the medical community, and the consumer to know they have found the right place. As of this date there is a total of 18 states and DC now known as Medical Marijuana States. With 11 more states pending legalization to legalize medical marijuana. Now legal for others to seek and receive this healing and lifesaving plant. Since the Government has allowed each state to listen to its people, and as it stands today marijuana is legal and available for all those who have a recommendation card. Now it is not a crime for the terminally ill and sick to gain access to the medication that they so greatly need to function on day-to-day bases. You might wonder, â€Å"How do I know so much or even care  about marijuana being legal†? I am also a member, because I have a recommendation card. I have had mine for about a year now. My doctor prescribed it for me when I told him I was depressed (over the death of my baby boy Marshall) and I did not want to take any manufactured manmade pill and have to worry about the side effects. Medical marijuana has done the trick for me, I take as need by my doctors’ direction. I have to say, that it has saved me. Also The Government, State and City get to collect the taxes and the dispensaries make their money and the clients get their much need lifesaving medication. Crime is down and people are employed, and the Government gets to have their say, but in the end â€Å"We the People† were finally heard, and this little plant is finally back where it belongs. To quote one of my favorite comedians: ~It’s not a war on drugs, it’s a war on personal freedom it’s what it is ok, Keep that in mind at all times. Thank you†~ ~ Bill Hicks~ References Bennett, C. (2010). Historical Timeline Medical Marijuana. Retrieved from http://medicalmarijuana.procon.org/view.resource.php?resourceid=000143 Eddy, M. (2010). Medical Marijuana: Review and Analysis of Federal and State Policies.. Retrieved from Federation of American Scientist/Congressional Research and State Service Reports: http://www.fas.org/sgp/crs/misc/RL33211.pdf Hicks, B. (1996). Lateralus (Album). Retrieved from Tool (Group) Joy, PhD., J., Mack, A. (2011). Marijuana as Medicine Beyond Controversy, 200. Retrieved from http://www.brainz.org/420-milestone-history-marijuana Kari, S. (2011). Historical Timeline Medical Marijuana. Retrieved from http://medicalmarijuana.procon.org/view.resource.php?resourceid=000143 Kassier, J. P. (1997). Federal Foolishness and Marijuana. Retrieved from http://www.brainz.org/420-milestone-history-marijuana McWilliams, P. (1996). Quotes by Peter McWilliams: Finest Quotes. Retrieved from http://www.finestquotes.com/author_quotes_authors-Peter+McWilliams-page-0.html Scott, E. (1994). Marional: The Little Synthetic That Couldn’t. Retrieved from http://www.druglibrary.org/significate-legal-cases.htlm 420 Milestone History Marijuana, (n.d.). (2010). Retrieved from http://www.braniz.org/420-milestone-history-marijuana Busted: â€Å"America’s War on Marijuana. (2010). Retrieved from http://www.pbs.org Historical Timeline Medical Marijuana, (n.d.). (2011). Retrieved from http://www.medicalmarijuana.procon.org/view.resource.php?resourceid=000143 National Institute on Drug Abuse [NIDA]. (1998). Retrieved from Provision of Marijuana and Other Compound for Scientific Research Recommendations of the National Institute on Drug Abuse National Advisory Council, NIDA website US: The Life and Death of Peter McWilliams. (2002). Retrieved from http://www.mapinc.org/drugnews/v00/n948/a03.html

Intrinsic Power And Political Organisations

Intrinsic Power And Political Organisations This papers first aim is to analyse as well as evaluate the different thoughts and views exist in the literature about Power and politics are intrinsic to organisations. The second goal is to represent the motivational approaches related to power and politics in organization. The final goal is to show and illustrate the concept of power and politics through the film Devil Wears Prada. The review of the literature on organizational power and politics reveals a growing interest on this subject throughout the last few decades. Power and politics are the two indisputable part of organization. Decision making and problem solving are the two vital factors which are interconnected with Power and politics. Actual conflicts in organisations are resolved by power and political skills of managers and leaders. Power and Politics, though closely related, share similarities and differences but ultimately work together for the success of an organization. Unity in diversity should be the positive ou tcome of power and politics in organization. Power and politics are the crucial medium through which conflicts and divergent interest are managed and resolved. Power and politics are called the heart of organization. In the first part I want to discuss different aspects of power in organizations. Power is defined as the ability to get someone to do something you want done or the ability to make things happen in the way you want them. (Schermerhorn, Hunt, and Osborn). Throughout history, human beings have been fascinated by power. In the earlier periods power is prescribed by the structure of the organization. Without reference to the works of Marx (1967) and Weber (1978) it is hard to make sense of organizational power. Power is conceptualized broadly within a system-rational model of organizational structure. Decision making and concomitant exercising of power (logical, optimal and adaptive response) bring changes in the organization and we can say that The Devil Wears Prada is an example of a movie which is unapologetically or maybe semi-apologetically fascinated with power of Miranda. Power is important within the organizations and moreover for the management to influence individuals to make t hings happen. Power is to organization as oxygen as to breathing (Bernard Crick 1982). All organizations require power but all power dont require organization. We cannot make serious enquiry in to the organization without an enquiry of power. Main conception of power is concentrated on Webers (1947) classic definition that power is the probability that a person can carry out his or her own will despite resistance. The concept of power is often expressed in the literature by the words the ability to à ¢Ã¢â€š ¬Ã‚ ¦ as by Salancik and Pfeffer (1977) and the ability to bring about outcomes you desire (Power politics and organizations: Andrew Kakabadse and Christopher Parker,P 22). There are four dimensions of power such as behavioural view (Dahl), political view (Bacharach and Baratz), radical structural view (Lukes) and relational approach (Foucault). (Management Organization, Linstead and Fulop ,2nd Edition P 282). Great men are almost always not good men as they exercise influence and authority. As example in the film Devil Wears Prada we have seen how Miranda has treated her assistant Andy. In organizations, power is considered to derive from numerous sources. French and Raven (1959) identified five sources of power such as coercive power, reward power, exert power, legitimate or position power and referent power. Etizoni has classified power as coercive power, utilitarian power and normative power. Robbins (1984) has discussed the comparisons between the sources of power and the means to exert influence that refers to bases of power. Blau(1964): Power is the ability of persons as groups to impose their will on others despite resistance through deterrence either in the form of withholding regularly supplied rewards or in the form of punishment inasmuch as the former, as well as the latter, constitutes in effect negative sanction. The definition by Parsons (1956) is an interactive formulation but within a structural framework: Power we may define as the realistic capacity of system-unit to actualize its interests within the context of system-interaction and in this sense exert influence on processes in the system. Organizations should have formal and informal rules for coordinating actions of different people. People of diverse background, particular interests and different understandings abide by these rules. A famous thought by Lord Acton: Power tends to corrupt and absolute power corrupts absolutely. Great men are almost always bad men, even when they exercise influence and not authority: still more when you super add the tendency or the certainty of corruption by authority (Lord Acton, 5 April 1987 to Bishop Mandell Creighton). The pluralists (Dahl1957, Wolfinger1971) claimed that power was equitably distributed around the society and no particular group had undue influence over decision making processes. The elitists (Bachrach and Baratz, 1962, Hunter1953, Mills1956) argued that power was concentrated in the hands of privileged few who controlled political agendas. The term power takes on different meanings when the unit or power holder is a formal group in an open system with multiple go als and the system is assumed to reflect a political-domination model of organization rather than only a co-operative model(Perrow 1970,P 84). In the film The Devil Wears Prada Miranda occasionally takes time from Andys daily routine and spreading fear and anxiety in her mind wherever she goes. In a scene Miranda tells Andy that I am your Master, you are dying to be like me, that is what Master (Miranda) never should say. This is all about her organizational power. In this part I want to represent the organizational politics with critical and mainstream approach. Organizational politics can be expressed as a social influence process in which behaviour is strategically designed to maximize short term or long term self-interest. Power and politics are the top two elements used in a company that either can cause the downfall or success of that organization. Politics is defined as the tactics used to obtain a desired goal, position or status in an organization. The power relationships in day-to-day relations could be understood by the political metaphor. If we consider the positive side then politics can be defined as A style of interaction which allows us to read and understand the situations, interpret them and exhibit the right kind of behaviour for inducing others to do what we want and do it willingly (Ferris,G.R,Davidson,S.l, and PerreweP.L (2005), political skill at work, P 9.Mountain view) And if we look at the negative side then it can be defined as The actions of individuals which are directed toward the goal of furthering our own self-interest without regard for the well-being of others or organization.(Kacmer,K.M. Carlson,D.S(1997),POPS A multiple sample investigation.Journal of Management,23, P 627). Political skill can influence organizational performance in different ways. The politically skilful managers and professionals often have higher job performance which is the building block for organizational performance. In the film Devil Wears Prada we have seen the politics of Emily (assistance of Miranda) as well as Miranda with Andy. For example, for facilitating the manufacture of a major new piece of equipment that is in demand from several customers, a project manager might use political skill. Political skill is positively associated with job performance in terms of quantity of work output, quality of workout and accuracy of work in organization. Thirty years ago J. Pffefer observed that organizations are more political than rational. Aristotle told that politics stems from a diversity of interests. Almost all employees bring their own interests, wants, desire, and needs in the organization. Robbins (2001) suggested that there are two forms of organizational politics, one is legitimate and other is illegitimate politics. Organizational leaders seek to satisfy not only organizational interests, but also their own wants and requirements, driven by self-interest. According to Farrell and Peterson the successful practice of organizational politics is perceived to lead to a higher level of power, and once a higher level of power is attained, there is more opportunity to engage in political behaviour. Politics are generated by structural cleavages in the organization among various component elements and identities, different values, affective, cognitive and discursive styles. Other causes of generation are the complexity and the degree of uncertainty, the external pressure coming from stakeholders or other actors and the history of past politics in the organization. If we accept the existence of power relations in organizations then politics and politicking are essential part of organization. Kissing up, passing the buck, apple polishing, covering your rear, creating conflict, forming coalitions, cunning, arrogant, scheming etc. are the negative terminology which are often used in organization as the political activity. Developing working relationships, encouraging change and innovation improving efficiency, facilitating teamwork, planning ahead, astute are the terminologies of positive aspect of organizational politics. The lack of concern with politics is the main void of organizational theory. Political alignment such as interest group of politics and coalition politics has an important effect on relations within organizations. In the film The Devil Wears Prada Miranda gives short orders and never likes to repeat herself. Andy is just supposed to know what she is talking about. Miranda wants her coffee as hot as brimstone, and sometimes even demands the unbelievable as at one point she demands a copy of a yet to be published Harry Potter book for her daughters. All these activities show the influence and organizational power of Miranda. The understanding of organizational politics requires a collective influence which is used by departments or subunits of organization to counter control and establish resistance pattern is described in Michel Croziers famous study The Bureaucratic phenomenon (1964). Most of the management and organization studies are based on Webers work as a simple affirmation of bureaucratic rationality. As example his work on Verstehen as an interpretive method for analysing human behaviour is almost completely ignored. The community power debate which was conducted during 1950s, 1960s, 1970s described the status of power as an empirical phenomenon. At the time of answering the question what is the structure and distribution of power in contemporary society? people were divided into two camps, one is pluralists (Dahl 1957, 1958, 1961, Wolfinger 1971) and other is elitists (Bachrach and Baratz ,1962,1963,Hunter 1953, Mills, 1956). The pluralists claimed that power was equitably distributed throughout society and there is no particular had undue influence over decision making processes. On the other side the elitists argued that power was concentrated in the hands of a privileged few who controlled political agendas. Then Dahl (1957) expressed that A has power over B to the extent that he or she can get B to do something that B would not otherwise do (Dahl 1957, PP. 202-203). On the other hand Bachrach and Baratz (1962) criticize Dahls explanation on concrete decision making situation , claiming that power is also exercised in non-decision making situations. All forms of political organization have a bias in favour of the exploitation of some kinds of conflict and the suppression of other because organization is the mobilization of bias. Some issues are organized into politics while others are organized out. (Schattschneider 1960, P 71, emphasis in original). Debate was increased when Lukess(1974) radical three dimensional view of power criticizes both Dahls one dimensional model and Bachrach and Baratzs two dimensional model. Decision making is a political interest which is resulting from the conflicts of interest characteristic of sub-goal differentiation within organization (Ganz and Murray, 1980, Mayes and Allen 1977, Rogers 1971, Vredenburgh and Maurer 1984). The dynamics of political behaviour is essential to understand for a full understanding of organizational functioning. The political character of organization life is rooted in non-bureaucratic decision mechanisms (Salancik and Pfeffer 1974, P 454) which is used to resolve the conflicts between organization and subunits. Gandz Murray (1980) expressed the difference between political and non-political uses of power. Miles (1980) asserts that it is important to recognize that politics need not be bad, though common parlance uses the term in a pejorative sense. The survival of an organization may depend on the success of a unit or coalition in overturning a traditional but out-dated formal organization objective or policy. Political activity can also be beneficial to organizations. If through the politicking of the marketing manager, changes in product are brought about which in turn provide commercial gains for the organization, then it could be claimed that such political behaviour is beneficial for organizations. A recent study developed a profile of individuals active in office politics based on a survey completed by a number of managers. The result indicated that managerial level, job function and sex were unrelated to political activity. However certain personality traits corresponded highly with the individual managers propensity to engage in office politics. The managerial person should avoid making their power open and explicit. Self-serving behaviour has a bad effect on organizations and its employees. Kanter (1979) told that People know who is holding power. Kanter has claimed that explicit claims to power are only made by the powerless. Office politics does exist in the organization regardi ng issues like departmental budget, space allocation, project responsibilities and salary adjustment (Robbins 2001). In the film Devil Wears Prada Miranda has done politics by choosing Andy to go to Paris with her over Emily and asked Andy to inform this to Emily, Again Miranda bypasses Nigel for a promotion so as to keep her own job secure as she was to be replaced and the information for which came from Andy. Thus organizational politics is blatantly portrayed here and is thus an excellent example. So far we have discussed the key aspects of power and politics. In this part I want to focus on motivation and discuss the relation between motivation and organization. Motivation is an essential part in organizations, both for the individual and for the organization as a whole. Motivational state or condition of a person has an impact or influence upon both behaviour and performance. Motivation to work is of great importance to us since we spend a lot of our time working in organizations (Michael W.Drafke and Stan Kossen., The Human Side of Organizations, Massachusetts: Addison/Wesley,1998,p.2-12). Pffefer (1981) has suggested that major characteristic often accompanying political behaviour is the attempt to conceal its true motivation. True motive was concealed because the actor believed that it was unacceptable. Motivation is equal important for manager and employee. In 1970 David McClelland and David Burnham published an article in Harvard Business Review called Power is the great Motivator. This article directly focused on managers motivatio n. A good manager is one who, among other things, helps subordinates feel strong and responsible, rewards them properly for good performance and sees that things are organised so that subordinates feel they know what they should be doing(McClelland,2003,P-109). In the film Devil Wears Prada Andy has motivated herself in different ways to be familiar with the new job environment in spite of rude behaviour of her boss Miranda. Recently the boundaries have widened and work and private life is much more connected to each other than past. In the past when one left his workplace, the person had less obligations or responsibility against the company (Karl Weick., Making sense of the Organization,Malden: Blackwell Publishing, 2006,P 207-210). Then Karl Marx stated that Freedom begins at the gates of the factory (Robert Tucker,The Marx-Engels reader,NewYork Norton,1978, P-440). Today people often bring their work home as well as colleagues socialize outside work (Weick). If employees are not motivated, no one would make an effort to work and companys performance would be less efficient. Vroom (1964) has developed expectancy theory from the original work of Tolman and Honzik(1930) and produced a systematic explanatory theory of workplace motivation. It claimed that the motivation to behave in a particular way is determined by an individuals expectation that behaviour will lead to a particular outcome, multiplied by the preference or valence that person has for that out-come. Vroom has argued that human behaviour is controlled by subjective probability. The equation is Motivation (M) = Expectation (E) * Valence (V). Abraham Maslows (1943, 1954) theory of motivation was the first theory to be applied to the world of work. He proposed that human beings have five needs (Self-Actualisation, Esteem, Social, Safety, and Physiological) and when these are not satisfied they provide the drive to act and set up the motivating mechanism. The most significance and potential value to managers attempting to understand the motivation in the workplace is the work of McClellands (1961) achievement theory. Herzbergs (1968) two-factor theory on intrinsic and extrinsic motivational factors affect what individuals perceive as the value or valance of particular outcomes which will influence both their performance and job satisfaction. Communication between employees and managers within the organization is an essential and vital ingredient of motivation. Employees are motivated by recognition and constructive feedback from their manager. Motivation is a complex, dynamic and culture based concept so there is no one universal theory which is applicable to motivation. Karl Marx said that Men make history but not under conditions of their own choosing. In spite of covert nature of power and politics it is real and important aspect of all organizations. We have discussed the unitary, pluralist, radical and relational view of power and politics in this essay. Managers can prevent the misuses of power by confirming that clear organizational goals, plans, and individual roles, and responsibilities are understood and followed. Power should be used to manipulate the understanding and interpretation of organizational events. According to pluralist, radical and relational perspectives on power and politics it is generic to organization. The unitary as well as pluralist views provide a comfort zone to deal with power and politics. Managers should be highly skilled in reflective practice and critical thinking if they want to understand the relational view of power and politics. Smart and clever manager can boost themselves or their career through power and p olitics. Politics involves cultivating influential allies, controlling the flow of information and influencing decisions through ones power base. Organizational politics have detrimental effect on employees moral, loyalty and trust. Some people think that practice of politics can be cunning and deceitful while other people believe that it can be motivator with positive result. To understand the organizational political behaviour Farrell and Peterson (1982) proposed a three dimensional typology. One dimension is where the political activity takes place (inside or outside the organization), second one is the direction of the attempted influence (vertically or laterally) and last one is legitimacy of the political action (Functional vs. Dysfunctional conflict) .The processes by which the organization is operated should be ethically based. There are many internal and external aspects of organization which are the cause of success and failure of organization. Organizations must insure th at decisions are not based on personal agendas or outside influences. Organizations should abide by their code of conduct to avoid conflict of interest. The effect of Power and Politics depends on how they are practiced in organization. All the approaches of power and politics have their own advantages and disadvantages. It is very important to understand the limits of power and authority, resistance and obedience in organizations. Fundamentally, power is shaped by what we know and how we know what to do in organization. Throughout this essay I have represented the critical approaches of power and politics and the relation with mainstream approaches. I am unable to point out any organization which has no implications of power and politics. I agree with the topic that power and politics are intrinsic to organization. I think that there should be more research on this topic to clarify in a more broad vision. REFRENCES Amos Drory, Tsilia Romm Politics in Organization and its Perception within the Organization. Andrew J. Dubrin Political Behaviours in Organizations Bronston T. Mayes, Robert W. Allen Toward A Definition of Organizational Politics Cavanagh G F., Moberg D J.,Velasquez M. The Ethics of Organizational Politics, The Academy of Management Review, Jul 01, 1981; Vol. 6, N. 3, p. 363-374. Clegg, Courpasson and Phillips Power and Organizations. Clegg CHAPTER 5 Managing Power And Politics in Organizations, Resistance, Empowerment, Ethics (P 151-190). David Buchanan, Andrzej Huczynski Organizational behaviour( Third Edition, P 667-702) Dennis K. Mumby, Purdue University Power and Politics ,(Chap 15) Ferris,G.R,Davidson,S.l, and PerreweP.L (2005), political skill at work, Mountain view. Gerald F. Cavanagh, Dennis J. Moberg, Manuel Velasquez The Ethics of Organizational Politics Gibson, Ivancevich, Donnelly, Konopaske Organizations behaviour, structure, Processes (Chap 10, P 275-295). Gilbert W. Fairholm, Organizational Power Politics, Tactics in Organizational Leadership Harvey, E., and R. Mills. Patterns of Organizational Adaptation: A Political Perspective, in Mayer Zald (Ed.), Power in Organizations (Nashville, Tenn.: Vanderbilt University Press, 1970), pp. 181-213. Ian Brooks Organizational Behaviour (P 233-258). Jackson, N Carter, P (2007). Rethinking Organizational Behaviour: A Poststructuralist Framework, Pearson Education. John Martin organizational behaviour Second Edition, P (807-884) John Bratton, Peter Sawchuk, Carolyn Forshaw, Militza Callinam and Martin Corbett Work and Organizational behaviour( Second Edition) Joseph W.Weiss Organizational Behaviour and Chang, managing diversity, cross-cultural dynamics and ethics.(Second Edition). Julieta Dà ¡vila, Samuel Hernà ¡ndez, Vicente Peralta Organizational Conflict, Power and Politics (June 2004). Kacmer,K.M. Carlson,D.S(1997), A multiple sample investigation Journal of Management. Kakabadse ,A Parkar,C(eds) Power and Politics and Organizations: A Behavioural Science view, London John Wiley Knights, D. and H. Willmott (eds.) (2007) Introducing Organizational Behaviour Management. London: Thomson. Laurie J. MullinsManagement and Organizational behaviour (Ninth Edition). Linstead, S., L. Fulop and S. Lilley, (eds) (2004) Management and Organization: A Critical Text. Basingstoke: (Second edition). Samuel B. Bacharach and Edward J. Lawer Power And Politics in Organization Zaleznik, A. Power and Politics in Organizational Life, Harvard Business Review, Vol. 48, No. 3 (1970), 47-60. . .

Pakistan Microfinance Sector Analysis

Pakistan Microfinance Sector Analysis The aim of this study refers to highlighting the key challenges and prospects for the microfinance sector of Pakistan. Being practiced since last few years, microfinance is considered to be an imperative financing practiced by financial institutions for the development of countrys economy. This study has been carried out using the following four steps: present scenario of microfinance in Pakistan, identification of internal and external challenges, prospects in microfinance, and policy recommendations to boost microfinance sector in Pakistan. In this research, microfinance framework has been used to better understand the process of building a sustainable microfinance institution. The findings have been obtained through Primary data which has been collected by sending 80 questionnaire surveys to microfinance sector. The companies that have participated are banks and other financial institutions. This research contributes in three ways. First, microfinance institutions will be facilita ted in highlighting the challenges and prospects that are being neglected in the process of analyzing the problems and opportunities faced by this sector. Second, other financial institutions and banks, realizing the significance of this business, will get encouragement to enter this sector with more innovative products and better standard practices. Thirdly, it will help the country in coming up with new strategies for micro financing. Moreover, microfinance sector may start conducting more training sessions to enhance the skills of the clients which will impact positively on this sector. INTRODUCTION Statement of the Problem Poverty cannot be illustrated, it can be experienced. One knows more about it when he is starving and can not manage to pay for food. He and his children want new cloths on festivals but can not buy these, due to low income. He is sick, but he is not able to buy medicine. He wants to send his children to school, but can not bear the expenses. He wants to be appreciated in society, but is treated poorly by the institutions of the state and society. He is voice less and incapable (Gobind M et al,2008). Poor people save all the time, although mostly in informal ways. They invest in assets such as gold, jewelry, domestic animals, building materials, and things that can be easily exchanged for cash. They may set aside corn from their harvest to sell at a later date. They bury cash in the garden or stash it under the mattress. They participate in informal savings groups where everyone contributes a small amount of cash each day, week, or month, and is successively awarded the pot on a rota ting basis. Some of these groups allow members to borrow from the pot as well. The poor also give their money to neighbors to hold or pay local cash collectors to keep it safe. However widely used, informal savings mechanisms have serious limitations. It is not possible, for example, to cut a leg off a goat when the family suddenly needs a small amount of cash. In-kind savings are subject to fluctuations in commodity prices, destruction by insects, fire, thieves, or illness (in the case of livestock). Informal rotating savings groups tend to be small and rotate limited amounts of money. Moreover, these groups often require rigid amounts of money at set intervals and do not react to changes in their members ability to save. Perhaps most importantly, the poor are more likely to lose their money through fraud or mismanagement in informal savings arrangements than are depositors in formal financial institutions. The concept of microfinance was launched to help the poor population of the world. The significance of microfinance cannot be neglected for the development of any economy. Microfinance encourages poor households to consume their funds in productive activities by providing them small amount of loans. Poor household refers to low-income people who traditionally lack access to banking and other related financial services. The concept tend to empower would-be entrepreneurs to take up a trade for living, allow them to start earning, and thus to provide their families with income stability. The income that generates from such businesses not only helps in expanding those activities but also contributes to the income of the household bringing benefits for the whole family. In Pakistan, about one-third of the population is Å“un-banked?, or lacking access to finance, which if appropriately tapped can offer tremendous opportunities to both banking institutions and businesses. As a step towards mainstreaming the un-banked, SBP has envisaged increasing the size of micro and small enterprise (MSE) financing from one million borrowers to four million borrowers, and from Rs.1 billion to four billion by the year 2010. In this context, increasing institutional outreach and sinking micro financing in to the sector are considered pivotal strategies. Other areas of interest include regulatory regimes, product and process innovations, relationship management and monitoring, and market intelligence data (Sohailuddin Alavi, 2007). According to ILO (2005) cited by Dahri (2007) it is concluded that the reality for most of the worlds poor is that they have to work often for long hours, in poor working conditions and without basic rights and presentation- at work that is not productive enough to enable them to themselves and their families out of poverty, it is Å“decent and productive? employment that matters, not employment alone. In developing countries, so many strategies have been put into practice and research has been done but it is felt that it is not enough and research should remain continue in light of latest reports and research to highlight the challenges and opportunities of microfinance. These studies are helping in bringing new strategies into practice. As Pakistan is also a developing country, further suggestions would help to overcome the challenges faced by microfinance and avail the opportunities that exist for this kind of financing. To keep these things in mind attempt has been made to iden tify the internal, external challenges and opportunities as special objective in this study. LITERATURE REVIEW The great challenge before us is to address the constraints that exclude people from full participation in the financial sector. Together, we can and must build inclusive financial sectors that help people improve their lives.(Kofi Annan, 2007). However, poverty is a widespread problem found in the rural areas of Pakistan, as almost 28 per cent of the total rural households is categorized as poor. In this regard, the provision of credit, especially micro-credit, has now become an effective tool and a successful strategy for poverty eradication. In Pakistan over the past few years, the number of active borrowers has increased by 85 per cent while total outstanding loans grew by 115 per cent (Economic Survey of Pakistan, 2005-2006). The broader definition of microfinance includes not only microcredit but also other financial services, which can be offered to the poor. Interested economists found soon that not only small credits but also other services connected with lending could improve economic lives of the poorest (Bauer, Chytilova Morduch, 2008). Most MFIs connect their credit services also with educational or saving programs or business trainings, retraining scheme or technical trainings. Logically, the investments can turn out to be more profitable when the people have access to training, which can enhance their skills. Historically, the goal of microfinance was the alleviation of poverty. For many years, microfinance had this primary social objective and so traditional MFIs consisted only of non-governmental organizations (NGO), specialized microfinance banks and public sector banks. Although the Microfinance sector has reached a maturity stage over the last three decades, but the capacity of operational level staffs has not enhanced to that extent (Hassan Islam, 2008) A variety of studies have found a few key strengths and positive impacts produced by the implementation of microfinance programs in poor and impoverished areas of the world. First, microfinance programs can be an effective way to provide low?cost financial services to poor individuals and families (Stephens Tazi 2006). Second, such programs have been shown to help in the development and growth of the local economy as individuals and families are able to move past subsistence living and increase disposable income levels (Khandker, 2005). MFIs should take initiatives to upscale their Microenterprise clients to SME level and provide necessary support to link these clients with mainstream financial institutions. The MFIs should take responsibilities of their clients managerial skill development training (Hassan Islam, 2008). In addition, many studies (primarily microfinance institution impact studies and academic researcher qualitative or case studies) have shown that microfinance programs were able to reduce poverty through increasing individual and household income levels, as well as improving healthcare, nutrition, education, and helping to empower women. For example, standard of living increases, which help to eradicate extreme poverty and hunger, have occurred at both the individual and household levels as a result of microfinance programs (Khandker, 2005). Furthermore, it has been demonstrated by some research that microfinance programs increase access to healthcare, making preventative healthcare measures more affordable to the poor (Morduch, 1998). Finally, it has been shown that such programs can help borrowers to develop dignity and self-confidence in conjunction with loan repayment, and self?sufficiency as a means for sustainable income becomes available.The Microfinance Summit Campaign Report (2006) estimates that there are now more than 3,000 microfinance institutions, serving more than 100 million poor people in developing countries. The total cash turnover of these institutions world-wide is estimated at $2.5 billion and the potential for new growth is outstanding.One individual who gained worldwide recognition for his work in microfinance is professor Muhammad Yunus who, with Grameen Bank, won the 2006 Nobel Peace Prize. Yunas and Grameen Bank demonstrated that the poor have the ability to pull themselves out of poverty. Yunus also demonstrated that loans made to the working poor, if properly structured, had very high repayment rates. His work caught the attention of both social engineers and profit-seeking investors (Grameen Bank, 2008). Some key strengths and positive impacts of microfinance programs in poor and impoverished areas of the world that; Microfinance programs can be an effective way to provide low-cost financial services to poor individuals and familie s (Stephens Tazi 2006). Such programs help in the development and growth of the local economy allowing individuals and families to move past subsistence living, and therefore increases their disposable income levels (Khandker 2005). Negative impacts of microfinance and microcredit programs are that; microfinance programs benefit the moderately poor more than the destitute, and thus impact can vary by income group (better-off benefit more from microcredit) (Jonathan Barbara 2002; Morduch, 1998; Dugger, 2004). Both formal and semi-formal financial institutions cover a very small share of MFIs markets as compared to informal market (Aleem, 1990). Hassan and Islam (2008) in a study conclude that, uplifting of client, managerial skill development programs for both client and staff of MFI and governmental policies can uplift the MFI growth which in turn has positive impact on overall macroeconomic growth of country. Moreover, the studies conducted on micro-credit were mainly based on the impact assessment of the programme. Realizing the situation, there is a need for an empirical study to analyze the factors that determine challenges faced by MFIs and future prospects in microfinance programme. Objectives of the Study The objectives of the study are: To explore the present scenario of MF in Pakistan To identify the challenges faced by MFIs in Pakistan To identify the internal and external constraints of MFIs in Pakistan. To provide policy recommendations to boost MFIs sector in Pakistan RESEARCH METHODOLOGY Conceptual Frame Work Utilizing the above mentioned details, a framework is suggested for MFI. Generic Framework for Building Sustainable Micro Finance Bank (MFB) Source: SOHAILUDDIN ALAVI (2007) Å“Microfinance in Pakistan: Challenges and Prospects?, journal of the Institute of Bankers Pakistan Volume 74, Issue No. 3 page 52-61 Data Collection In this research study, primary data has been obtained from questionnaire survey. The primary data here has been collected through a comprehensive questionnaire in this research. Primary data There are several choices for primary data collection i.e. survey (questionnaire), interview, observations and experiments. These choices are shown in below figure. The primary data here has been collected through a comprehensive questionnaire in this research. Primary Data Sources Source: Ghauri, P. Gronhaug, K. (2005). Å“Research Methods in business Studies?, 3ed. Prentice Hall. Size of the Sample The questionnaire was distributed to 80 executives in four different MFIs. These executives have the responsibility of key customers identification, analysis and operational activities involved in the management process. Out of the 80 respondents 54 (67.50%) have responded. The author has done the convenience sampling due to the limitations. Questionnaire We have divided this Questionnaire into three segments; External Challenges Internal Challenges Prospects First and second section measure challenges, both internal and external faced by MFI and third section addresses the future prospects for MFI. Each section is based on separate research objectives. Only closed-ended questions are included in the questionnaire. In closed-ended questions Likert-scale method (Proctor, T. 2005) is used for response. Seven different scaling options are included in Likert-scale method to minimize the response biasness. The scales: strongly agree, agree, slightly agree, neither agree nor disagree, slightly disagree, disagree and strongly disagree are assigned ranks from 1- 7 respectively. DATA AND METHODOLOGY Data and Sampling As we have limited MFIs in the country so author has distibuted 80 questionnaires and 54 responses are received (67.50%) from Karachi, Islamabad and Lahore cities. In the above section, the six factors highlighted addressees the external challenges of MFIs in the market of Pakistan. Govt.s due importance to the sector Staff trainings by the MFIs Utilizations of the loans Importance of clients skills development by the MFIs Islamic point of view Local norms Its clear from the table 1(b) that Å“Government is giving due importance to MFI?, out of 54 respondents 78% response positively and 22% in negative. It means Government considers MFI as a very important sector in the country development process. Second question is about Microfinance Institutions staffs training level; there is 50% response in positive and 50% in negative. This indicates that MFI staff working in market needs adequate training. Ultimately, their training may draw some positive impact on MFI sector in specific, and at large it may benefit the countrys economy. Third and the most important factor about the utilization of loan money by client, surprisingly 70% of respondents say that loans are used for investment purpose by client and not for personal consumption. However, 30% of respondents believe that loan taken by client is used for their private consumption. The fourth question is about MFI attitude towards clients skills development shows; only 26% of responses are positive and 74% responded negatively. This result indicates a gap for policy makers of MFIs concluding that they are not putting due efforts in their business because their client is usually not only poor but also lacking management and other skills. Further research can be done on the level of skill of client and the growth of their business and relationship with MFI. The second last question in the first section addresses the perception of the client about financial institute in religious perspective; 80% of respondents are positive that financial intuitions are largely perceived as non-Islamic. This issue can be resolved by focusing on the establishment of Islamic MFIs or marketing the concept of microfinance more aggressively. Final question is about the norms restrictions on the financial sector, again 53% of responses are positive about the existence of such norms and 43% are negative. We may say that in future these norms may go to decline. Internal Challenges The section 2 of the challenges is about the key internal challenges faced by MFI. We have discussed six different internal challenges; the first and probably the most important challenge is about the availability of other cheaper financial resources. 74% of the respondents agree that the availability of other cheaper source of finance is a great challenge for them and 36% responded in opposite. This indicates the fact that the cost of borrowing is high for small borrowers. Effort should be done to make small loans available at some competitive cost in comparison to other financial products. About the limited physical presence of MFI, 87% response is positive and only 13% is negative, which again reveals the gap for policy makers that the limited presence may be the major cause of low performance and growth of MFI sector. The third question is about the general inability of MFIs about risks and standard practices; 52% responded positively about the situation but 48% do not agree. We may say that there is a great need for MFIs to mitigate the risk factors and adopt the standard practices. The fourth question is about the incompatibility of conventional banking with the need of microfinance product; 52% of respondents are positive about the inaptness of conventional banking with microfinance product need while 48% do not agree that there is incompatibility of microfinance need and traditional banking. So we may say that a second majority of MFI believes that conventional banking system can also cater to the need of microfinance product. The second last question of this section is about the availability of quality human resource in comparison to other financial institutions; 48% of the respondents are positive about the availability of quality human resource due to scare funds while 52% do not agree. This shows that availability of quality human resource is not much of an issue in MFIs. Final question is about the lacking in value chain and delivery process of mic rofinance product; a majority of 59% is positive that there are lacking in value chain and delivery process, but 37% are of opposite view and 4% are uncertain about the answer to this question. Prospects/Opportunities The third and the last section is about the opportunities for MFIs, first question is about the promotion of different kinds of business through MFIs; 56% of respondents are positive that MFIs are promoting all kinds of business and 44% do not agree. The second majority of respondents believe that MFIs are not addressing all kinds of business. Hence, there is a need to look at the different kinds of businesses served by MFIs. In the question about the role of MFI,s in reduction of poverty, 83% are positive about the role of MFI in poverty reduction, while a minority of 17% do not agree. The fourth question about the role of MFI in economic growth of country; 100% respondents advocate that MFIs are working for the economic development. 100% respondents are positive that MFIs are not only working against poverty but also playing some other roles too in economy. Finally a 70% of respondents are positive about the alliance of commercial banks and MFIs , 13% do not agree about the allianc e and 17% are uncertain. CONCLUSION AND RECOMMENDATION In this study, conclusions will be drawn on the basis of literature review and analysis made through market research. The reasearch is divided into two parts: conclusions and recommendations. Conclusions From this study we conclude that; Government is providing due importance to MF sector. MFIs staff needs training which can impact positively on MF Sector. A majority of 70% believe that loan is utilized in investments activities rather than personal consumption. MFIs have very low attention toward its clients skill development. A majority of population perceive MFIs and other financial services against their religious beliefs. Lastly norms and culture poses threats to MFIs and Banks. Cost of microfinance is relatively high in compassion to other financial products. Standards of practices and processes need improvement in MFIs. Alliance of commercial banking and microfinance is viewed as positive. Recommendations MFIs staff working in market needs adequate training. Ultimately, their training will draw some positive impacts on MFI sector in specific and may also benefit the economy of the country at large. MFIs are not putting due efforts in their business because their client is usually not only poor but also lacking management and other skills. Further research can be done on the level of skills of the client and growth of his/her business to elaborate the different skill levels. There may be a need of Islamic MFIs or marketing the concept of microfinance more aggressively to avoid the potential biasness in financial organizations. Effort should be done to make small loans available at some competitive cost in comparison to other financial products. There is a great need for MFIs to mitigate the risk factor and adopt the standard practices. Limitation of Research This study had the following limitations The author was not able to distribute the questionnaire to company executives all over the country. Time period to conduct the study was very limited. Some of the respondents did not answer the questions seriously Sample size was limited to 3 cities only which cannot be easily applicable to all population of Pakistan. The questionnaire was sent to respondents through e-mail. It was not feasible for the author to conduct the interviews personally. All respondents cant maintain same level of accuracy in answering the questions due to lack of time and interest. It may create little discrepancy to some extent in formulating the conclusions. Refrences www.sbp.org.pk/publications/prudential/micro_prs.pdf www.sbp.org.pk/l_frame/MF_Bank_Ord_2000.pdf Kofi, Annan. UN secretary,.2007. Avalibale atÂÂ  : http://www.diplomatie.be/en/travel/visa/default.asp Herani, Gobind M, Rajar , Allah Wasayo, Wasim, Mohammad Pervez and Shaikh, Riaz Ahmed., 2008. The Nature of Poverty and Its Prospects: Pakistan Evidence. Journal of Global Economy ,4(3), pp. 183-194. Global Monetary and Financial System: Principal Issues. Journal of the Institute of Bankers Pakistan , 74 (2) pp 1-6 Available at:www.ibp.org.pk/journal/Journal-Apr-Jun-2007.pdf Pakistan Statistical Profile Available at: agingandwork.bc.edu/documents/CP03_Workforce_Pakistan.pdf M. Bauer, J. ChytilovÃÆ'Â ¡, J. Morduch., 2008.Behavioral Foundations of Microcredit: Experimental and Survey Evidence from Rural India. American Economic Review,59 (1) pp71-86 Rashed Al Hasan., K.M. Zahidul Islam., 2008. Bridging the Gap between Microfinance and SME Financing in Bangladesh: Unlocking the Potentials. Daffodil International University Journal of Business and Economics, 3.(1), pp 41-57 Shahidur R. Khandker., 2005.Microfinance and Poverty: Evidence Using Panel Data from Bangladesh .The World Bank Economic Review, 19(2), pp263-286 Jonathan Morduch., 1998. Does Microfinance Really Help the Poor? New Evidence from Flagship Programs in Bangladesh, Department of Economics and HIID Harvard University. Available at: www.princeton.edu/rpds/papers/pdfs/morduch_microfinance_poor.pdf Grameen Bank. Available at: http://www.grameen-info.org/ Dugger, Celia W. 2004. Å“Debate Stirs over Tiny Loans for Worlds Poorest.? New York Times. Morduch, J., and Haley, B. (2002), ËÅ"Analysis of the Effects of Microfinance on Poverty Reduction, NYU Wagner Working Paper No. 1014 Available at: http://www.nyu.edu/wagner/workingpapers.html Briefing Note Summary of the Poverty and Social Impact Assessment: Pakistan Microfinance Policy May 2006 Available at: www. pipl.com/directory/name/Tazi/Hind Pakistan Microfinance Sector Analysis Pakistan Microfinance Sector Analysis The aim of this study refers to highlighting the key challenges and prospects for the microfinance sector of Pakistan. Being practiced since last few years, microfinance is considered to be an imperative financing practiced by financial institutions for the development of countrys economy. This study has been carried out using the following four steps: present scenario of microfinance in Pakistan, identification of internal and external challenges, prospects in microfinance, and policy recommendations to boost microfinance sector in Pakistan. In this research, microfinance framework has been used to better understand the process of building a sustainable microfinance institution. The findings have been obtained through Primary data which has been collected by sending 80 questionnaire surveys to microfinance sector. The companies that have participated are banks and other financial institutions. This research contributes in three ways. First, microfinance institutions will be facilita ted in highlighting the challenges and prospects that are being neglected in the process of analyzing the problems and opportunities faced by this sector. Second, other financial institutions and banks, realizing the significance of this business, will get encouragement to enter this sector with more innovative products and better standard practices. Thirdly, it will help the country in coming up with new strategies for micro financing. Moreover, microfinance sector may start conducting more training sessions to enhance the skills of the clients which will impact positively on this sector. INTRODUCTION Statement of the Problem Poverty cannot be illustrated, it can be experienced. One knows more about it when he is starving and can not manage to pay for food. He and his children want new cloths on festivals but can not buy these, due to low income. He is sick, but he is not able to buy medicine. He wants to send his children to school, but can not bear the expenses. He wants to be appreciated in society, but is treated poorly by the institutions of the state and society. He is voice less and incapable (Gobind M et al,2008). Poor people save all the time, although mostly in informal ways. They invest in assets such as gold, jewelry, domestic animals, building materials, and things that can be easily exchanged for cash. They may set aside corn from their harvest to sell at a later date. They bury cash in the garden or stash it under the mattress. They participate in informal savings groups where everyone contributes a small amount of cash each day, week, or month, and is successively awarded the pot on a rota ting basis. Some of these groups allow members to borrow from the pot as well. The poor also give their money to neighbors to hold or pay local cash collectors to keep it safe. However widely used, informal savings mechanisms have serious limitations. It is not possible, for example, to cut a leg off a goat when the family suddenly needs a small amount of cash. In-kind savings are subject to fluctuations in commodity prices, destruction by insects, fire, thieves, or illness (in the case of livestock). Informal rotating savings groups tend to be small and rotate limited amounts of money. Moreover, these groups often require rigid amounts of money at set intervals and do not react to changes in their members ability to save. Perhaps most importantly, the poor are more likely to lose their money through fraud or mismanagement in informal savings arrangements than are depositors in formal financial institutions. The concept of microfinance was launched to help the poor population of the world. The significance of microfinance cannot be neglected for the development of any economy. Microfinance encourages poor households to consume their funds in productive activities by providing them small amount of loans. Poor household refers to low-income people who traditionally lack access to banking and other related financial services. The concept tend to empower would-be entrepreneurs to take up a trade for living, allow them to start earning, and thus to provide their families with income stability. The income that generates from such businesses not only helps in expanding those activities but also contributes to the income of the household bringing benefits for the whole family. In Pakistan, about one-third of the population is Å“un-banked?, or lacking access to finance, which if appropriately tapped can offer tremendous opportunities to both banking institutions and businesses. As a step towards mainstreaming the un-banked, SBP has envisaged increasing the size of micro and small enterprise (MSE) financing from one million borrowers to four million borrowers, and from Rs.1 billion to four billion by the year 2010. In this context, increasing institutional outreach and sinking micro financing in to the sector are considered pivotal strategies. Other areas of interest include regulatory regimes, product and process innovations, relationship management and monitoring, and market intelligence data (Sohailuddin Alavi, 2007). According to ILO (2005) cited by Dahri (2007) it is concluded that the reality for most of the worlds poor is that they have to work often for long hours, in poor working conditions and without basic rights and presentation- at work that is not productive enough to enable them to themselves and their families out of poverty, it is Å“decent and productive? employment that matters, not employment alone. In developing countries, so many strategies have been put into practice and research has been done but it is felt that it is not enough and research should remain continue in light of latest reports and research to highlight the challenges and opportunities of microfinance. These studies are helping in bringing new strategies into practice. As Pakistan is also a developing country, further suggestions would help to overcome the challenges faced by microfinance and avail the opportunities that exist for this kind of financing. To keep these things in mind attempt has been made to iden tify the internal, external challenges and opportunities as special objective in this study. LITERATURE REVIEW The great challenge before us is to address the constraints that exclude people from full participation in the financial sector. Together, we can and must build inclusive financial sectors that help people improve their lives.(Kofi Annan, 2007). However, poverty is a widespread problem found in the rural areas of Pakistan, as almost 28 per cent of the total rural households is categorized as poor. In this regard, the provision of credit, especially micro-credit, has now become an effective tool and a successful strategy for poverty eradication. In Pakistan over the past few years, the number of active borrowers has increased by 85 per cent while total outstanding loans grew by 115 per cent (Economic Survey of Pakistan, 2005-2006). The broader definition of microfinance includes not only microcredit but also other financial services, which can be offered to the poor. Interested economists found soon that not only small credits but also other services connected with lending could improve economic lives of the poorest (Bauer, Chytilova Morduch, 2008). Most MFIs connect their credit services also with educational or saving programs or business trainings, retraining scheme or technical trainings. Logically, the investments can turn out to be more profitable when the people have access to training, which can enhance their skills. Historically, the goal of microfinance was the alleviation of poverty. For many years, microfinance had this primary social objective and so traditional MFIs consisted only of non-governmental organizations (NGO), specialized microfinance banks and public sector banks. Although the Microfinance sector has reached a maturity stage over the last three decades, but the capacity of operational level staffs has not enhanced to that extent (Hassan Islam, 2008) A variety of studies have found a few key strengths and positive impacts produced by the implementation of microfinance programs in poor and impoverished areas of the world. First, microfinance programs can be an effective way to provide low?cost financial services to poor individuals and families (Stephens Tazi 2006). Second, such programs have been shown to help in the development and growth of the local economy as individuals and families are able to move past subsistence living and increase disposable income levels (Khandker, 2005). MFIs should take initiatives to upscale their Microenterprise clients to SME level and provide necessary support to link these clients with mainstream financial institutions. The MFIs should take responsibilities of their clients managerial skill development training (Hassan Islam, 2008). In addition, many studies (primarily microfinance institution impact studies and academic researcher qualitative or case studies) have shown that microfinance programs were able to reduce poverty through increasing individual and household income levels, as well as improving healthcare, nutrition, education, and helping to empower women. For example, standard of living increases, which help to eradicate extreme poverty and hunger, have occurred at both the individual and household levels as a result of microfinance programs (Khandker, 2005). Furthermore, it has been demonstrated by some research that microfinance programs increase access to healthcare, making preventative healthcare measures more affordable to the poor (Morduch, 1998). Finally, it has been shown that such programs can help borrowers to develop dignity and self-confidence in conjunction with loan repayment, and self?sufficiency as a means for sustainable income becomes available.The Microfinance Summit Campaign Report (2006) estimates that there are now more than 3,000 microfinance institutions, serving more than 100 million poor people in developing countries. The total cash turnover of these institutions world-wide is estimated at $2.5 billion and the potential for new growth is outstanding.One individual who gained worldwide recognition for his work in microfinance is professor Muhammad Yunus who, with Grameen Bank, won the 2006 Nobel Peace Prize. Yunas and Grameen Bank demonstrated that the poor have the ability to pull themselves out of poverty. Yunus also demonstrated that loans made to the working poor, if properly structured, had very high repayment rates. His work caught the attention of both social engineers and profit-seeking investors (Grameen Bank, 2008). Some key strengths and positive impacts of microfinance programs in poor and impoverished areas of the world that; Microfinance programs can be an effective way to provide low-cost financial services to poor individuals and familie s (Stephens Tazi 2006). Such programs help in the development and growth of the local economy allowing individuals and families to move past subsistence living, and therefore increases their disposable income levels (Khandker 2005). Negative impacts of microfinance and microcredit programs are that; microfinance programs benefit the moderately poor more than the destitute, and thus impact can vary by income group (better-off benefit more from microcredit) (Jonathan Barbara 2002; Morduch, 1998; Dugger, 2004). Both formal and semi-formal financial institutions cover a very small share of MFIs markets as compared to informal market (Aleem, 1990). Hassan and Islam (2008) in a study conclude that, uplifting of client, managerial skill development programs for both client and staff of MFI and governmental policies can uplift the MFI growth which in turn has positive impact on overall macroeconomic growth of country. Moreover, the studies conducted on micro-credit were mainly based on the impact assessment of the programme. Realizing the situation, there is a need for an empirical study to analyze the factors that determine challenges faced by MFIs and future prospects in microfinance programme. Objectives of the Study The objectives of the study are: To explore the present scenario of MF in Pakistan To identify the challenges faced by MFIs in Pakistan To identify the internal and external constraints of MFIs in Pakistan. To provide policy recommendations to boost MFIs sector in Pakistan RESEARCH METHODOLOGY Conceptual Frame Work Utilizing the above mentioned details, a framework is suggested for MFI. Generic Framework for Building Sustainable Micro Finance Bank (MFB) Source: SOHAILUDDIN ALAVI (2007) Å“Microfinance in Pakistan: Challenges and Prospects?, journal of the Institute of Bankers Pakistan Volume 74, Issue No. 3 page 52-61 Data Collection In this research study, primary data has been obtained from questionnaire survey. The primary data here has been collected through a comprehensive questionnaire in this research. Primary data There are several choices for primary data collection i.e. survey (questionnaire), interview, observations and experiments. These choices are shown in below figure. The primary data here has been collected through a comprehensive questionnaire in this research. Primary Data Sources Source: Ghauri, P. Gronhaug, K. (2005). Å“Research Methods in business Studies?, 3ed. Prentice Hall. Size of the Sample The questionnaire was distributed to 80 executives in four different MFIs. These executives have the responsibility of key customers identification, analysis and operational activities involved in the management process. Out of the 80 respondents 54 (67.50%) have responded. The author has done the convenience sampling due to the limitations. Questionnaire We have divided this Questionnaire into three segments; External Challenges Internal Challenges Prospects First and second section measure challenges, both internal and external faced by MFI and third section addresses the future prospects for MFI. Each section is based on separate research objectives. Only closed-ended questions are included in the questionnaire. In closed-ended questions Likert-scale method (Proctor, T. 2005) is used for response. Seven different scaling options are included in Likert-scale method to minimize the response biasness. The scales: strongly agree, agree, slightly agree, neither agree nor disagree, slightly disagree, disagree and strongly disagree are assigned ranks from 1- 7 respectively. DATA AND METHODOLOGY Data and Sampling As we have limited MFIs in the country so author has distibuted 80 questionnaires and 54 responses are received (67.50%) from Karachi, Islamabad and Lahore cities. In the above section, the six factors highlighted addressees the external challenges of MFIs in the market of Pakistan. Govt.s due importance to the sector Staff trainings by the MFIs Utilizations of the loans Importance of clients skills development by the MFIs Islamic point of view Local norms Its clear from the table 1(b) that Å“Government is giving due importance to MFI?, out of 54 respondents 78% response positively and 22% in negative. It means Government considers MFI as a very important sector in the country development process. Second question is about Microfinance Institutions staffs training level; there is 50% response in positive and 50% in negative. This indicates that MFI staff working in market needs adequate training. Ultimately, their training may draw some positive impact on MFI sector in specific, and at large it may benefit the countrys economy. Third and the most important factor about the utilization of loan money by client, surprisingly 70% of respondents say that loans are used for investment purpose by client and not for personal consumption. However, 30% of respondents believe that loan taken by client is used for their private consumption. The fourth question is about MFI attitude towards clients skills development shows; only 26% of responses are positive and 74% responded negatively. This result indicates a gap for policy makers of MFIs concluding that they are not putting due efforts in their business because their client is usually not only poor but also lacking management and other skills. Further research can be done on the level of skill of client and the growth of their business and relationship with MFI. The second last question in the first section addresses the perception of the client about financial institute in religious perspective; 80% of respondents are positive that financial intuitions are largely perceived as non-Islamic. This issue can be resolved by focusing on the establishment of Islamic MFIs or marketing the concept of microfinance more aggressively. Final question is about the norms restrictions on the financial sector, again 53% of responses are positive about the existence of such norms and 43% are negative. We may say that in future these norms may go to decline. Internal Challenges The section 2 of the challenges is about the key internal challenges faced by MFI. We have discussed six different internal challenges; the first and probably the most important challenge is about the availability of other cheaper financial resources. 74% of the respondents agree that the availability of other cheaper source of finance is a great challenge for them and 36% responded in opposite. This indicates the fact that the cost of borrowing is high for small borrowers. Effort should be done to make small loans available at some competitive cost in comparison to other financial products. About the limited physical presence of MFI, 87% response is positive and only 13% is negative, which again reveals the gap for policy makers that the limited presence may be the major cause of low performance and growth of MFI sector. The third question is about the general inability of MFIs about risks and standard practices; 52% responded positively about the situation but 48% do not agree. We may say that there is a great need for MFIs to mitigate the risk factors and adopt the standard practices. The fourth question is about the incompatibility of conventional banking with the need of microfinance product; 52% of respondents are positive about the inaptness of conventional banking with microfinance product need while 48% do not agree that there is incompatibility of microfinance need and traditional banking. So we may say that a second majority of MFI believes that conventional banking system can also cater to the need of microfinance product. The second last question of this section is about the availability of quality human resource in comparison to other financial institutions; 48% of the respondents are positive about the availability of quality human resource due to scare funds while 52% do not agree. This shows that availability of quality human resource is not much of an issue in MFIs. Final question is about the lacking in value chain and delivery process of mic rofinance product; a majority of 59% is positive that there are lacking in value chain and delivery process, but 37% are of opposite view and 4% are uncertain about the answer to this question. Prospects/Opportunities The third and the last section is about the opportunities for MFIs, first question is about the promotion of different kinds of business through MFIs; 56% of respondents are positive that MFIs are promoting all kinds of business and 44% do not agree. The second majority of respondents believe that MFIs are not addressing all kinds of business. Hence, there is a need to look at the different kinds of businesses served by MFIs. In the question about the role of MFI,s in reduction of poverty, 83% are positive about the role of MFI in poverty reduction, while a minority of 17% do not agree. The fourth question about the role of MFI in economic growth of country; 100% respondents advocate that MFIs are working for the economic development. 100% respondents are positive that MFIs are not only working against poverty but also playing some other roles too in economy. Finally a 70% of respondents are positive about the alliance of commercial banks and MFIs , 13% do not agree about the allianc e and 17% are uncertain. CONCLUSION AND RECOMMENDATION In this study, conclusions will be drawn on the basis of literature review and analysis made through market research. The reasearch is divided into two parts: conclusions and recommendations. Conclusions From this study we conclude that; Government is providing due importance to MF sector. MFIs staff needs training which can impact positively on MF Sector. A majority of 70% believe that loan is utilized in investments activities rather than personal consumption. MFIs have very low attention toward its clients skill development. A majority of population perceive MFIs and other financial services against their religious beliefs. Lastly norms and culture poses threats to MFIs and Banks. Cost of microfinance is relatively high in compassion to other financial products. Standards of practices and processes need improvement in MFIs. Alliance of commercial banking and microfinance is viewed as positive. Recommendations MFIs staff working in market needs adequate training. Ultimately, their training will draw some positive impacts on MFI sector in specific and may also benefit the economy of the country at large. MFIs are not putting due efforts in their business because their client is usually not only poor but also lacking management and other skills. Further research can be done on the level of skills of the client and growth of his/her business to elaborate the different skill levels. There may be a need of Islamic MFIs or marketing the concept of microfinance more aggressively to avoid the potential biasness in financial organizations. Effort should be done to make small loans available at some competitive cost in comparison to other financial products. There is a great need for MFIs to mitigate the risk factor and adopt the standard practices. Limitation of Research This study had the following limitations The author was not able to distribute the questionnaire to company executives all over the country. Time period to conduct the study was very limited. Some of the respondents did not answer the questions seriously Sample size was limited to 3 cities only which cannot be easily applicable to all population of Pakistan. The questionnaire was sent to respondents through e-mail. It was not feasible for the author to conduct the interviews personally. All respondents cant maintain same level of accuracy in answering the questions due to lack of time and interest. 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