The Need to Introduce Flexible Benefit Plans for Employees

The employees of today†s workforce are divers. With such a workforce at hand, an employer must have a flexible benefit plan to match the composition of its employees. Flexible benefit plans are a written plan under which employees of a company are allowed to choose two or more benefits consisting of cash and qualified benefits (Everett & Miller, 1994). Some benefits offered under a flexible benefit plan are health care, dental, reimbursement accounts, life insurance, accidental death and dismemberment coverage, long-term disability, vacation, retirement savings, spouse accidental death and dismemberment coverage, and dependent care (Kleiner & Sparks, 1994). A young couple can be assured that their jobs not only meet the daily needs of their growing family, but that their children are covered for very little cost in their own employer-provided hospitalization and health care insurance. A worker employed by the same organization, approaching retirement, can choose benefits that will maximize his/her retirement income as much as possible. With his/her own children grown-up, he/she needs to attend only to his/her own needs. Also known as â€Å"cafeteria plans,† the organization offering a choice of applicable benefits to their employees ensures that the benefits for which they pay are the most useful for each of their employees. Costs are rising in almost every area of benefit provision and administration. The organization is able to secure more favorable rates for those benefits used, if the organization is not required to provide the same service to each employee (Webster, 1996). Employee benefit plans have had a long history, and can be traced back to 1794, when the first profit-sharing plan was created by Albert Gallatin in his glassworks in Pennsylvania (Kleiner & Sparks, 1994). Another notable benefit plan includes those made by the American Express Company in 1875 with the first private pension plan, and the first group annuity contract issued in 1921 by the Metropolitan Life Insurance Company (Kleiner & Sparks, 1994). These early benefit plans were only the beginning of the benefit packages. As it turns out, the Social Security Act of 1935 gave employees across the country a legal framework that supported the development of many forms of employee benefits. Very few employers provide full family health care coverage at no cost to the employee in today†s world, but everyone can save when they provide that coverage only to those who need it. Even though the employee almost always shares the cost now, the employer still provides the major portion of the cost of health care insurance. In today†s increasingly competitive business climate, everyone is forced to operate as efficiently as possible. The advantage to the organization and employees of having a flexible benefit plan is clear. Businesses are not required to pay for services its employees will never seek. For instance, pediatric care was provided across the board in one organization, a significant numbers of the company†s leadership were well past the point of needing that type of coverage for their family (Webster, 1996). Flexible benefit plans can be a very important tool for recruiting new employees and retaining current employees. Also, the costs of administering such plans may be offset to a large extent by the payroll tax savings generated when employees convert previously taxable compensation and income into a nontaxable fringe benefit tax (Everett & Miller, 1994). Flexible benefit plans also provide the employee with the advantage of being able to ensure that benefits chosen are those that best meets their needs. The primary advantage of flexible benefit plans is that the employer and employee receive certain tax advantages. This depends on the types of programs the employee chooses. In some cases, the employee may choose cash rather than any benefits at all, but that option is dependent on company policy. For instance, many companies offer pay in lieu of off the job vacation time, but other companies insist that employees take their accrued vacation time. Another advantage of flexible benefit plans is the ability of the organization to shift some of the cost of benefits to the employees who use them, while simultaneously offering tax advantages in other areas such as 401K plans. Any benefit that is not paid in cash, but is treated as such, is taxable to the employee, but the employee tax liability decreases the employer†s. Any benefit that does not satisfy the nondiscrimination clause of the Internal Revenue code is taxable (Webster, 1996). Other benefits are nontaxable either to the employee or to the employer. To be nontaxable, the benefit must be a qualified benefit under Section 125. Such qualified benefits include accident or health plans, disability benefits, accidental death and dismemberment benefits, the first $50,000 of group term life insurance, a group dependent care assistance plan, and a group legal services plan (Webster, 1996). A disadvantage of flexible benefit plans is that employees are often overwhelmed by the numerous choices a plan may have to offer. In many cases, companies are contracting accountants, financial planners, investment counselors and other consultants to help employees wade through the vast array of options (Jurek, 1995). Such consultant use increases the employers† costs of providing the flexible benefits plans, but employers believe the guidance is needed. As for the IRS, it only requires organizations make flexible benefit plans available to all employees, not explain the intricacies of all options. Employers† that provide flexible benefit plans show the desire to in increase employees† loyalty to the company. In an increasingly tight labor market and faced with the necessity of operating as efficiently as possible, in order to remain competitive, employers view the flexible benefit plan as a tool to enhance employee morale. Flexible benefit plans are also used to improve employer-employee relationships, reduce overall costs of providing benefits, and reduce the incidence of employee turnover (Leonard, 1994). Replacing an employee can cost more than the annual salary of that employee, so it is to the employer†s advantage to retain as stable a workforce as possible (Leonard, 1994). From both the employer and the employee point of view, flexible benefit plans make sound financial sense (Kleiner & Sparks, 1994). These plans provide a way for employers to control and budget benefit cost. At the same time, it is also a way for employees to enhance their benefits while paying expenses with pre-taxed dollars.

Investment Management

24/02/2013 1 25721 INVESTMENT MANAGEMENT Lecturers: Sean Anthonisz Nadima El-Hassan Jianxin Wang Brandon Zhu Subject Coordinator: Jianxin Wang Objectives 2 ? ? ? ? Why do you take this subject? What do you expect to learn? How much did you pay for this subject? Is this a good investment? Investment Decisions 3 ? ? How much should I invest in risky assets? How much should I invest in different risky assets? ? ? How many risky assets should I hold? When not to diversify? ? How to determine mispricing? Fair value today? Expected return next year? ? How well do asset pricing models work? ? ? 1 24/02/2013Investment Decisions 4 ? Passive versus active investing ? ? Is market efficient? Why not? What does it take to beat the market? How to hedge and how much to hedge? Derivative pricing Trading cost, liquidity, private information ? How should I manage risk? ? ? ? How should I trade? ? ? Sources of my performance? What Do We Learn in This Subject? 5 ? ? ? ? A theoretical framework for portf olio construction. A theoretical framework for the pricing of equities and bonds. Some practical applications of asset pricing models and portfolio analysis. Issues relating to market efficiency and investor behaviour.Course Structure 6 Funds Management Information Portfolio Theory Risk and Return Markets and Investing CAPM Factor Models & APT Options Fixed Income Equities Futures 2 24/02/2013 Investment Electives 7 ? ? ? ? ? ? 25705 Financial Modelling and Forecasting 25728 Bond Portfolio Management 25729 Applied Portfolio Management 24731 International Finance 25762 Synthetic Financial Products A whole range of subjects for Quant Fin majors: technical analysis, numerical analysis, fin econometrics, stat methods, derivative pricing, interest rate modelling. Prerequisite 8 ? ? 25742 Financial Management Basic math and statisticsBasic calculus and optimization Probability and distributions ? Mean, variance, standard deviation, covariance ? Linear regression by ordinary least square ( OLS) ? ? ? Read the online Quantitative Review ? A very brief review next week What Is Expected – in class 9 ? Lectures are primarily aimed at Identifying and explaining key concepts and issues Highlighting the links to practice ? Completing selected problems from text ? ? ? Questions are encouraged and rewarded. ? Discussion is better than lecture Mutual respect and encouragement; Potential problems: repeated late arrivals, chatting during lecture, academic honesty Code of behavior ? ? 3 24/02/2013 What Is Expected – outside class 10 ? Address some details within the course reading materials. ? Group study is more effective ? ? Workload is about 7-8 hours per week on average (albeit uneven), including course readings, practices, and assignments. Multiple learning channels: ? ? Multiple levels of learning: ? Web-based learning support Lecture material, textbook, and Excel sheets Approach to Learning 11 ? ? ? Read relevant chapters prior to lectures Attempt to identify and understand the key messages: Concepts? Issues? Connections?Ask questions during lecture. ? You paid $$$ for the opportunity ? ? Think & reflect; don’t just summarize & memorize. Practice using back-of-chapter questions. Approach to Learning — I listen and I forget; I see and I remember; I do and I understand. —Xun Zi Just Do It! —Nike 12 4 24/02/2013 Textbook and Readings 13 ? Bodie, Kane, Marcus, Investments, 9th Ed, McGraw-Hill/Irwin, 2011. ? You take full responsibility if using an earlier edition. ? ? ? ? Harvard Business School case study 9202-024 â€Å"Strategic Capital Management†. R.A. Haugen, Modern Investment Theory, 5th Ed, Pearson Higher Education, 2001. J. H. Cochrane, 2006, Investments Notes. Other fun books on financial markets. Assessments 14 ? Weekly online quizzes: 10 marks ? ? ? ? ? 15 MC questions in 1 hour Unlimited tries with the best mark kept Monday morning to next Wednesday midnight Once closed, quizzes cannot be re opened Best 10 marks for the semester Group-based case report Online group registration Report due 5pm Friday March 29 Late submissions carry point deduction ? Case study in lecture 6: 10 marks ? ? ? ? Assessments 15 ?Mid-session exam: 40 marks ? ? ? ? Cover lectures 1 – 6, including the case study Multiple-choice (20 marks) Short-answer questions (20 marks) No formula sheet Cover lectures 7 – 13, excluding lecture 8 Multiple-choice (20 marks) Short-answer questions (20 marks) A short list of formulas will be identified and provided during the final exam. ? Final exam: 40 marks ? ? ? ? 5 24/02/2013 Online Group Registration 16 ? ? ? ? ? ? Log in the online course website Click on â€Å"Groups† in the left panel Group names contain â€Å"1m†, â€Å"2m†, â€Å"3m†, â€Å"4m†, indicating max members = 1, 2, 3, 4, respectively.The first member is the group leader. Registration closes after 5pm on March 10. Changing group only in the most extreme circumstances. What’s Required? 17 ? ? ? Materials covered in the chapters listed in the lecture program, except certain subsections are explicitly excluded. The midsession and the final exams will focus on materials covered during lectures, with at most 3-4 multiple-choice questions in each exam on materials not covered in lectures. Materials not covered in lectures will be heavily featured in the online quizzes. Administrative Issues 8 ? Name sign: â€Å"Open† for the business of learning ? Take it out at the start of every lecture It’s good to make the lecturer know your name ? Come to consultation hours ? ? ? Other times by appointment Email for straightforward questions Complex questions are best answered through interactive discussion ? Emails will be answered before or during the next consultation hours ? 6 24/02/2013 Learning Support – Postgraduate ? ? ? ? ? Need help with your postgraduate studies at UTS Business School? Are you new to un iversity / postgraduate education?Not sure to how develop your academic skills in writing, reading, critical thinking etc.? Not sure how to complete assignments or achieve your best? Ask for help from the Learning Support Coordinator ? ? ? ? ? ? Make appointments for confidential individual help Lots of ‘online study resources’ to recommend / hardcopy study resources to share Attend the Study Skills Workshops all semester / or download them / Help by email / phone support / Email: [email  protected] edu. au www:http://www. business. uts. edu. au/teaching/student/resources/studen t-learning. tml Join us on facebook UTSBlearningsupport ? Asset Classes 20 ? ? ? ? ? ? The money market The bond market The equity market The real estate market Currency markets Derivative markets ? Financial and commodities ? Others? Trading Platforms 21 ? Organized exchanges Dealership markets Auction markets ? Electronic trading ? ? ? ? OTC – NASDAQ Alternative trading systems (ATS) ? ECNs, dark pools, internal crossings. ? Algorithm/high frequency trading 7 24/02/2013 High Frequency Trading 22 ? Menkveld (2011): a HFTer on Chi-X Dutch stocks from Jan 2007 to June 2008 Trades 1400 times per stock per day ?Gross profit per trade â‚ ¬0. 88 ? ? ? ? ? â‚ ¬1. 55 profit on the spread net of fees â‚ ¬0. 45 profit on positions < 5 seconds â‚ ¬1. 13 loss on positions >= 5 seconds Max capital committed ? â‚ ¬2 million per stock ? Implied annualized Sharpe ratio = 9. 35! ? ? Sharpe ratio for S&P500 over the period = -0. 16 ? Chi-X is in Australia. Costs of Trading 23 ? Commission: fee paid to broker for making the transaction ? Exchange members/subscribers? ? Spread: Bid and ask prices Spread: ask – bid ? P89, #14 ? Market versus limit orders ? ? ? Price impact of large tradesStock Margin Trading 24 ? ? ? ? Borrow (from brokers) to purchase shares Initial margin Maintenance margin – minimum level the equity margin can be Margin call ? Call for more equity funds ? Margin arrangements differ for stocks and derivatives 8 24/02/2013 Margin Trading – Initial Conditions 25 ? ? ? ? ? X Corp: P = $70 Initial Margin = 50% Maintenance Margin = 40% 1000 Shares Purchased Initial Position: Stock $70,000 Borrowed Equity $35,000 $35,000 Maintenance Margin 26 ? ? Stock price falls to $60 per share New Position ? $60,000=$35,000(Borrowed) + 25,000(Equity) ? Margin = $25,000/$60,000 = 41. 67% How far can the price fall before a margin call? ? ? (1000P – $35,000) / 1000P = 40% P = $58. 33 ? P88, #9 Short Sale 27 ? ? Purpose: Profit from a price fall Mechanics Borrow stock through a dealer/broker Sell it and deposit proceeds and margin in an account ? Any dividend is passed back to the lender ? Closing out the position ? ? ? ? Buy back the stock and return it to the lender Profits can be deposited into your own account ? Naked versus covered short sale 9 24/02/2013 Short Sale – Initial Conditions 28Z Corp Initial Margin Maintenance Margin Initial Price Sale Proceeds Margin Account Balance 100 Shares 50% 30% $100 $10,000 $ 5,000 $15,000 Short Sale – Maintenance Margin 29 ? Stock Price Rises to $110 Stock owed Net equity ? Margin % (4000/11000) ? ? $11,000 $ 4,000 36% ? ? How much can the stock price rise before a margin call? ($15,000 – 100P) / (100P) = 30% P = $115. 38 P89, #12 Summary 30 ? Course introduction and requirements ? Think, reflect, and participate ? ? Financial markets and assets Trading of financial assets Trading platforms Transaction costs ? Margin trading and short selling ? ? 10 Investment Management UNIVERSITY OF TEXAS AT DALLAS SCHOOL OF MANAGEMENT FIN6310: INVESTMENT MANAGEMENT SOLUTIONS TO PROBLEM SET #1 PROF. ARZU OZOGUZ SPRING 2013 1. Calculate the value of the following two bonds. Assume that coupon payments are made semi-annually and that par value is $1,000 for both bonds. Coupon rate Time to maturity Yield-to-maturity Bond A 5% 5 yrs 7. 2% Bond B 5% 25 yrs 7. 2% Recalculate the bonds’ values if the yield to maturity changes to 9. 4%. Which bond is more sensitive to the changes in the yield? Will this always be the case? When the yield-to-maturity is 7. %, the bond prices are, respectively, 1 1 1. 036 0. 036 1 1. 036 0. 036 1 1. 047 0. 047 1 1. 047 0. 047 25 1000 1. 036 1000 1. 036 908. 98 1 25 746. 58 When the yield-to-maturity is 9. 4%, the bond prices are, respectively, 1 25 1000 1. 036 1000 1. 047 827. 62 1 25 579. 01 Price of bond A decreases by 8. 95%, while price of bond B drops by 22. 45%. The longer term bond is more sensitive to a given change in the dis count rate. This will always be the case. Mathematically, there are more terms in the equation for the longer-term bond that are influenced by the discount rate.Practically speaking, your money is tied up longer with a longer term bond and so you will experience greater capital losses and gains when interest rates change. 2. A bond with a coupon rate of 4. 7% is priced to yield 6. 30%. Coupon is paid is semi-annually; the par value is $1,000. The bond has 5 years remaining until maturity. Assuming that market rates stay the same over the next five years, calculate the value of the bond at the beginning of each year and the amount of change in the bond’s value from year to year. Describe the behavior of the bond’s value over time.At t = 0, at issue the price will be 1 1 1. 0315 0. 0315 1 1. 0315 0. 0315 1 1. 0315 0. 0315 1 1. 0315 0. 0315 1 1. 0315 0. 0315 23. 5 1000 1. 0315 932. 28 At the end of year 1, the price becomes 1 23. 5 1000 1. 0315 1000 1. 0315 1000 1. 0315 1 000 1. 0315 944. 20 1 23. 5 956. 88 1 23. 5 970. 37 1 23. 5 1000 984. 73 The price change from year to year is ? ? ? ? ? 11. 92 12. 68 13. 49 14. 36 15. 27 The bond is selling at a discount today; its price will rise to move toward par value at maturity. The change in price increases as it gets closer to maturity. 3.Suppose that you purchased a 20-year bond that pays an annual coupon of $40 and is selling at par. Calculate the one –year holding period return for each of these three cases. a. The yield-to-maturity is 5. 5% one year from now. If the yield-to-maturity is 5. 5% one year from now, the bond will be selling for 1 1 1000 1. 055 40 825. 89 1. 055 0. 055 Hence, the holding-period-return (HPR) is: 825. 89 40 1000 13. 41% 1000 b. The yield-to-maturity is the same one year from today as it is today. In this case, the bond price will remain at par and therefore the holding period return equals to coupon rate 4% c.The yield-to-maturity is 2. 5% one year from now. 1 1000 1. 025 40 1224. 68 1. 025 0. 025 Hence, the holding-period-return (HPR) is: 1224. 68 40 1000 26. 47% 1000 1 4. Plot the yield curve implied by the data in the following table. Time to maturity 3 months 6 months 1 year 2 years 5 years 10 years 15 years 20 years Yield-tomaturity 2. 40% 2. 60% 3. 00% 4. 30% 4. 80% 5. 70% 6. 40% 5. 20% Based on the Expectations Hypothesis, what does the yield curve tell us about short-term rates 5 years from now? What does it tell us about short rates 15 years from now and 20 years from now?Since the yield curve is upward sloping through the fifth year, investors expect that short term rates will be higher during that period than they are today. That is, they expect the 3-month rate to be higher than 2. 4% when five years have passed. They also expect short term rates to be higher than current rates in 15 years. This is reflected in the slope of the yield curve which is positive through year 15. However, the expectation is that after 15 years, short term r ates will begin to fall again. The downward slope in the yield curve is a sign of that expectation.That is, the 3-month rate that prevails 20 years from now is expected to be lower than the 3-month rate that prevails 15 years from now. 5. The current yield curve for default free zero-coupon bonds is as follows: Maturity (years) 1 2 3 Yield-tomaturity 10% 11% 12% a. What are the implied one year forward rates? The one-year forward rate for time 2 solves the following equation: 1. 11 1. 10 1 12. 009%. Similarly, the one-year forward rate for time 3 solves That is, the equation: 1. 12 That is, 14. 0271% 1. 11 1 b. Assume that the expectations hypothesis of the term structure is correct.If market expectations are accurate, what will the yields to maturity on one year and two year zero coupon bonds be next year? We have already computed the forecast for the one year rate next year. We must now compute the expectation for the 2-years to maturity. This must equate the strategy that consist s of investing for 3 years at the current 3-year spot rate with the strategy of investing at the one-year spot rate and then rolling over the profits into a two-year bond one year from now: 1. 10 1 1. 12 13. 0136%. Hence, the forecast for the one-year yield is This implies that 12. 09%, and forecast for the two-year yield is 13. 0136%. c. If you purchase a two year zero coupon bond now, what is the expected total rate of return over the next year? What if you purchase a three year zero coupon bond? You can assume that the par value is $100. We need to compute the forecasted price of the two-year zero-coupon bond at the end of the first year. Notice that by that time this has become a one-year bond. Hence its price is 1000 1. 12009 892. 79 Today the price of this bond is simply 892. 79 811. 62 does not pay any coupons, its return is given by: 1 1 10% . 11. 62. Since this bond Similarly, if you purchase a three-year zero coupon bond today, the forecasted price a year later is 1000 1. 130136 Today, this bond’s price is simply expected holding period return is 78. 295 71. 178 1 78. 295 . 71. 178. Therefore, the 10% 6. Consider the following three bonds. You are investigating how the bonds would react to changes in interest rates. Bond A Face value Years to maturity Coupon rate Yield-to-maturity $1,000 3 5. 5% 4. 80% Zero-coupon bond $1,000 2. 85 0 4. 80% Bond B $1,000 3 8. 75% 4. 80% Assume that coupons are paid once a year. . Find the duration of each bond. Bond A Time 1 2 3 Price ZCB Time 2. 85 Price Bond B Time 1 2 3 Price Cash Flow 87. 5 87. 5 1087. 5 Present value 83. 49 79. 67 944. 81 1107. 97 Weight 0. 075 0. 072 0. 853 Cash Flow 1000 Present value 874. 92 874. 92 Weight 1. 000 Cash Flow 55 55 1055 Present value 52. 48 50. 08 916. 58 1019. 13 Weight 0. 051 0. 049 0. 899 Hence, the durations are: 0. 051 0. 075 1 1 0. 049 0. 072 2 2 0. 899 0. 853 3 3 2. 85 2. 78 2. 85 b. Calculate the modified duration of each bond. The modified durations are ? ? 2. 85 2. 72 1. 048 2. 78 2. 5 1. 048 c. Calculate the estimated percentage change in price of each bond due to a 0. 50% change in yield to maturity. The percentage change in the price of each bond due to a change in the yield? ? ? to-maturity is ? ? ? 2. 72 2. 65 0. 5% 1. 36% 1. 33% 0. 5% d. What can you conclude about the reactions of the bonds? Specifically, compare the percentage price changes of the bonds with similar durations and the bonds with similar maturities. Bonds with equal durations are more alike than bonds with equal maturities in their reactions to changes in yields. 7.Suppose that your insurance company has issued a Guaranteed Investment Contract (GIC) that matures in three years and promises to pay an interest rate of 23. 36%. The amount invested in GIC today is $150,000. You have decided to immunize your position by purchasing a bond that has a par value of $150,000, a coupon rate of 23. 36%, and four years to maturity. The bond is selling currently at par value. a. W hat is the future value of your company’s obligation? The future value of the obligation is $150,000 1. 2336 $281,588. 13 b. Assume that the interest rate stays at 23. 36%.At the date at which each payment is received, compute the accumulated value of reinvested coupons and the proceeds from the bond sale. How close will you come to your meeting your obligation? The bond pays a coupon of $150,000 23. 36% $35,040. If the market rates remain unchanged, at the end of year three it will be possible to sell the bond still at par. With this information, we can construct the following table: Year 1 2 3 3 Total future value Cash flow 35,040 35,040 35,040 150,000 Accumulated value 53,322. 78 43,225. 34 35,040 150,000 281,588. 13 That is, you will be able to repay your obligation in full.

Business, society and government Essay

Business, society and government are placed in different situations depending on what the conflict may be. According to the case â€Å"Dickinson’s needle sticks†, all three different sectors were placed in a different position where society was seen to have no voice or empowerment. The society in this case were the nurses, patients and any health care workers using Dickinson’s needles. These sectors solved their conflicts through interacting with each other and finalise a resolution through many negative and positive outcomes which could be ethical and unethical. But then again, each sector strive for the position of power. The major issue in the case â€Å"Becton Dickinson and needle sticks’ is the brand of syringes hospitals are using. These syringes had caused large amounts of patients, nurses and civilians infected with traumatic diseases such as Hepatitis B, C and HIV aids. Hospitals during the year 1990 was highlighted as one of the highest percentage of people be infected with diseases from syringes. In this case, Dickinson’s needle sticks were the reason to this health crisis. Dickinson’s needle sticks where known to be the top selling needle sticks in the market aiming at a reasonable price where hospitals were not reluctant to purchase. Through this major issue from the safety of Dickinson’s needle sticks had arise this issue through the relationship between business, society and government. Each sector has its own purpose, interests, values and ideologies within this case. From the society’s point of view, it could be seen that their minor role and power within the needle stick case dims the empowerment to execute the uses of Dickinson’s needles. Each sector stated and contributed their opinions to this conflicting interest where each sector fight for power through ethical and unethical ways to solve this problem. The notion of ideologies and policies come from the perspectives of business, society and government. The relationship between these sectors affect each other in ways to ‘impose power over each other’, where each position introduce the concept of ethical dilemmas when a conflict arises. In this case, according to the case â€Å"Becton Dickinson and needle sticks† shows the  perspective of society where the relationship with business and government underlies the position society has in this case. Although society is seen to be the minority, but the domination of certain ideologies in society promotes the acceptance of beliefs that benefit those in power (University of Western Sydney 2014, p.4) These societies were known to be the secondary stakeholders which include social activist groups and business social groups. The secondary stakeholders interact with businesses in relation to their interests and concerns. Within the case study, â€Å"Dickinson’s nee dle sticks† agencies such as the Occupational Safety and Health Administration (OSHA) trained and guided nurses through the step and process of using the Dickinson syringes. The society has decided to take part and help avoid increasing the number of accidental infection through the process of using syringes. Therefore having nurses being under pressure within the health department, could cause stress in association with the functionality of the Dickinson’s needle process. The ethical issues and the aftermath of the needle sticks will then be associated with the government. With these diseases, people, patients and health care workers could possibly suffer harshly and lead to possible death; this is known to be an ethical dilemma. Families whom by stand loved ones with diseases, could also suffer through grief. The society would question and reflect how this situation could have been avoided. For the government to take some responsibility and the Dickinson’s business admit to their ‘unsafe’ syringes causing diseases would be morally and ethically right. The moral imagination of these family members would solve a part of their mourning and put aside to the conflicting issue. In relation to ideology theories, classical liberalism would suit society in the case ‘Dickinson’s needle sticks’. According to Adam Smith, classical liberalism emphasised the value given to individual freedom and promoted individual initiative and self-interest, providing the greatest utility to society (University of Western Sydney 2014, p.11). Linking to the case with the classical liberalism theory, in 1992, a nurse, Maryann Rockwood was infected with AIDS due to the process of drawing blood using Dickinson’s needle. Maryann Rockwood had then sued Becton Dickinson for the ignorance of  providing and manufacturing the safety syringe in different sizes, which had contributed to her injury. Therefore with the classical liberalism ideology, this had allow individuals to have a voice in issues that are connected to business and government. By having Maryann Rockwood propose to this conflict, Occupational Safety and Health Administration (OSHA) had required hospitals and clinics free hepatitis B vaccines and provide safety needle disposal boxes, protective clothing, gloves and mask. The government had intervened and ethically solve this on behalf of the society. Therefore based on a societies point of view, their sociological imagination in relation to spreading preventable diseases allows the society to consider the complication is at ease and is avoided. Businesses volunteer and associate themselves with charity and fundraising; this is known to be an ethical responsibility. Government is suppose to protect the society in which health would be classified as the top priority. In the case â€Å"Dickinson’s needle sticks† contradict the action of the government not demanding hospitals and health workers to use the most safest syringe in the market where it would prevent any diseases. Inclusive to the business, Dickinson attempted to market a ‘safer’ syringe, but unfortunately this did not meet the government and society’s expectation. Dickinson had released a newly engineered syringe where there was only one size, which was the 3-cc. Hospitals and health workers use more than one size of syringe, in this case the most used syringe was the 5-cc and 10-cc model. Having Dickinson’s business venture this, it could again lead to another uprising conflict. The sociological imagination of society would continue to uphold petitions in erasing risk that would affect health. In this way, parts of the three sectors have compromised a slight resolution referring back to the case study, â€Å"Dickinson’s needle sticks†. From a business’ perspective, manufacturing a new and safer model of syringes to decrease the amount of conflict from the society and government. Changing and manufacturing a new and innovative product could cost the business a large sum of expenses. It can be said that business attempted to solve an issue yet it has not fully satisfied society in this matter. Government contributed through agencies such as the Health and Human Services, the Food  and Drug Administration (FDA), the Centre for Disease Control (CDC) and Economic Cycle Research Institute (ECRI). It can be evident that government endeavoured to adapt to the Dickinson’s needle sticks to prevent such diseases by providing proper guidelines. Through the actions of the business and government sector, it can be said that it was an ethical act to adapt to any current problems. The concept of capitalism refers to the importance in considering the rise of social struggles between those who can find work, who find work as long as their labour can increase capital and the owners of the means of production (University of Western Sydney 2014, p.5). On the contrary, having an increasing number of people infected with diseases, a high demand for employment within the health sector is needed. With the introduction of capitalism, this allowed individuals a chance of employment and benefits government to assist those in needing medical help. Colonialism has influenced the governments role in the case â€Å"Dickinson’s needle sticks†, where providing free vaccines and giving health care workers protection clothing will benefit the society in the long run where the risk of getting infected with a disease is minimal chance. Considering the diversity of global business situations, the interaction between business, society and government become more available in solving a conflicting issue of interest. With the freedom of voice, due to the introduction of capitalism from colonialism, society is allowed some sort of power when it comes to delivering satisfaction and benefits such as social welfare system. Therefore, the interrelationship between these sectors allow the conflict of interest to be resolved through continuous petitions, debates and many law cases. Based on societies perspective relating to the issue raised throughout the case, â€Å"Dickinson’s needle sticks†, it can be said that society was seen to be the minority against business and government. It could be seen that society was the underdog against business and government, but society was the main lead in this clashing case.The society in this case, were the nurses, patients and health care workers where they were affected most through this conflicting issue. It could be said that government had the most power by avoiding the increasing percentage of people being affected with inimical diseases. In association to this, business did have an unethical perspective based from the society, where they could have quickly avoid and adapt to the issues being afflicted upon society. Hence, it would have been a social responsible act if the government immediately extracted this type of syringe and replace a safer needle stick. __________________________________________________________________________ REFERENCES Crossman, A 1991, The Sociological Imagination, Introduction to Sociology, viewed 20 April 2014, . Fan, Q 2014, The Role of the State: Ideologies & Policies, lectures note distributed in Business, Society and Policy 200158 at the University of Western Sydney, Parramatta on 21 April 2014. Fan, Q 2014, B-S-G Context: Development of Capitalism from Colonialism to Global Capitalism, lecture note distributed in Business, Society and Policy 200158 at University of Western Sydney, Parramatta on 20 April 2014. Fan, Q 2014, Sociological Imagination & Ethical Reasoning, lecture not distributed in Business, Society and Policy 200158 at University of Western Sydney, Parramatta on 25 April 2014. Lau, S A 2014, Moral Imagination, College of Engineering, viewed 23 April 2014, . University of Western Sydney. 2009, Business, society and policy 200158, 2nd edn, Pearson Custom Publishing and the University of Western Sydney, French Forest, NSW.

The Foreign Intelligence Surveillance Act Court Research Paper

The Foreign Intelligence Surveillance Act Court - Research Paper Example This realization led to the Congress coming up with the Foreign Intelligence Surveillance Act, an Act, which would give the government an oversight of surveillance against foreigners (Chiarella & Newton, 1997). The Congress established the FISA Court in 1978 as a special court authorizing the Chief Justice to assign seven judges who would be responsible for reviewing any applications concerning investigations on foreign power agents or foreign powers who seemed to pose a threat towards national security. The judges would be drawn from various judicial circuits and a judge was allowed to serve for a seven-year non-renewable term. After the enacting of the Foreign Intelligence Surveillance Act (92 Stat. 1783), the government had realized the need to have mechanisms of obtaining judicial warrants before it started to gather any intelligence information involving foreign power’s agents or foreign powers based in the United States (Chiarella & Newton, 1997). Senator Teddy Kennedy introduced the bill to the house on 18 May 1977 and nine other senators supported him. These were James O. Eastland, Storm Thurmond, Gaylord Nelson, John L. McClellan, Charles Mathias, Daniel Inouye, Walter Huddleston, Jake Garn, and Birch Bayh. These resulted from questions about the legality of intelligence activities, which were being carried out in the country. Frank Church and Sam Ervin led two separate committees that wanted to establish the need of legalizing all activities of gathering foreign intelligence information. It had been reported that President Richard Nixon was using federal security agents to spy on activists and political groups and this violated the US constitutions’ Fourth Amendment. FISA was signed into law by the then president Jimmy Carter (Chiarella & Newton, 1997). The Act was created for the purpose of supervising the way the government used its surveillance facilities to spy on foreigners but at  the same time, protect the secrecy of the intelligence agents.  

Human Resource Management, Assignment3, Monitoring and Rewarding Essay

Human Resource Management, Assignment3, Monitoring and Rewarding - Essay Example In case of MORAS Ltd. the personal assistant is working in the head quarter and has a good relationship with other employees. The person has been promoted from the position of administrative assistant to personal assistant, requires minimum supervision and has subordinates who are administrative personnel. They are to handle confidential information, attend phone calls, organise meetings and other secretarial activities like checking mails, writing replies. They are given all the facilities to perform the work efficiently along with an air-conditioned office. They are to have a four year experience as an assistant or secretary. Their work activities include handling calls and filing and recording, it is required that they have knowledge of the General Manager’s responsibilities. They are required to make decisions solely, be a fine organiser and complete work on time as required. If any mistake is made in handling calls it would not have a drastic impact. In case of filing and recording, they should know typing, filing, organising and classifying records. It is essential to perform work on time and avoid any mistake because poor filing will lead to serious problems in the company. [2] 2. The employees who are working in the company are given a questionnaire and if they feel that they should be promoted then their questionnaire is reviewed by their supervisor. If the supervisors also feel the same then the employee undergoes a few process of observation and then might be promoted. [5] The information maintained in the records about the employees, tells about their skills, knowledge, responsibilities. If these are more than required for the job then will help the supervisor decide whether to the position held by the employee is appropriate or his skills might serve a higher position. Records contain information about how efficiently employees perform their job, how

Questions Assignment Example | Topics and Well Written Essays - 250 words - 38

Questions - Assignment Example However, the decision is in contrary to the philosophy of evolutionary marketing. This is because, the reason for short in the enrollment as earlier forecasted was not analyzed, thus decision to increase sales agents does not fulfill the concept of evolutionary marketing. The mission of the organization is just similar to almost all business organizations, which is quality service. In this case, it is quality invasive surgical service that the management aims to offer to the community. The service cannot market itself, as the management thinks. The quality should be marketed to the clients for them to understand the value attached to it. First, certain ailments that are preventable will be identified, and employees who prevent themselves from those diseases will be granted bonuses or reward. Secondly, the contribution for the employees from the employer will be invested for profit creation. Employees will be allowed to apply for a loan and repay at a lower interest rate. To compete aggressively with the other plans, the two approaches will create a market share for the

How can US Small business survive in a Global Economy Research Proposal

How can US Small business survive in a Global Economy - Research Proposal Example However, there are substantial uncertainties regarding the level of management within this sector, with US policy-makers indicating that there are specific flaws in innovation (Katz & Green, 2011), lack of economic insight, entrepreneurial talent, practical understanding, and human resource management. According to Johnson and Turner (2010), the early phases are of significant value for the small business as these a very high failure rate. Keeping in view this high failure rate in the small business sector, it seems essential to examine the aspects, characteristics, or management skills that are necessary to facilitate the small business to survive and progress in global economy. ... ituational Analysis It is understandable that as the global economy goes on towards more and more integration due to progress of communications approaches, growth in developing nations, and decline in barriers for cross-country business, a few of the best prospects for small businesses will draw by operating within the global market. Within the developed as well as developing nations around the globe, US policy makers at all levels have accepted the fact that small businesses are turning out to be more and more essential with respect to employment, creation of wealth and the improvement in innovation. Alternatively, there are significant reservations regarding the excellence of management within this sector, with policy makers telling that there are specific weak spots in improvement, dire need of economic insight, advertising, entrepreneurial talent, understanding of market, and human resource management (Gupta, 2008). Therefore, a number of small businesses do not get to their comp lete potential and fail to survive, causing lost employments and capital for their area in which they are situated. Earlier research proved that there are four decisive phases within the life of a small business where the phases are decided by the time-span the business has been functioning. The estimated duration of every phase is as follows: first phase is the commencing point and is approximately three years in length. Subsequently, second phase is the development period and is four to six years in length; third phase is the established part and it is somewhere between six to eight years in length; and fourth phase is the constancy period having more than nine years of duration. Linked with all of these phases is a special set of business traits, tests, decision-making aptitude, and