Health Promotion Essay Example | Topics and Well Written Essays - 1500 words

Health Promotion - Essay Example Obesity contributes to 2.6 million fatalities globally every year. During 1999 to 2002, 65.1 percent of adults, at least 20 years of age, were considered overweight and 30.4 percent were considered obese. Among children between 6-19 years old, 31.0 percent were regarded as overweight and 16.0 percent were deemed obese (Hedley, Ogden, Johnson, Carroll, Curtin & Flegal, 2004). Obesity significantly decreases life expectancy thus increasing the risk for morbidity and mortality. Also, it considerably increased health care costs in the last two decades (Wang & Dietz, 2002). As stated by Ward-Smith (2010), the U.S economy’s expenditure reached an estimated $117 billion and $61 billion were directed at medical costs. This increased occurrence of obesity is said to be due to urbanization which caused societal changes like frequent consumption of fast-food meals, feasting on oversized portions at home and in restaurants, ingestion of high-calorie foods, like high-fat, low-fiber foods, and increase intake of sweetened beverages (Raj & Kumar, 2010) . Also, developing countries have exponentially grown a habit of television viewing and other sedentary activities (Robinson, 1999). Automobile-oriented and automated environment also promoted a low level of physical activity (Epstein & Saelens, 2000). Aims and Objectives The immediate aim is to lower the rate of weight gain which will be done by maintaining a specified weight appropriate for the age and height of the individual, therefore improving the person’s BMI. The objective is to develop a better quality of life for the people involved. Another objective is to reduce the morbidity and mortality rate involving associated with obesity. Global scope of this project is another objective; if possible, legislative change should be done to fully achieve this goal. Outline of Project and Ethical Considerations The target group of this report is the obese people in the university. The booklet (Appendix A) and leafle ts (Appendix B) used are from the U.S. Department of Health and Human Services and Obesity Action Coalition. The author believes that for change to fully be achieved in a global setting, change has to start first in the immediate surrounding. However, if possible, this may be applied to any obese person to completely achieve the globalization of this initiative. The initial action should be to educate the people about obesity, its causes, the risk of being obese and most importantly how to handle it. What is obesity? Obesity is a disease that it described by having excess body fat. An indicator for this is the Body Mass Index (BMI). This is measured by dividing the person’s weight in kilograms with the height in meters squared. This can also be seen in the BMI Chart (Appendix C). A person with a BMI of 25 to 29.9 is classified as overweight. A BMI of 30 above is considered obese. What causes this? 1. Behavior 2. Environment 3. Genetics What is the health risks related to obes ity? 1. Diabetes 2. Gallbladder disease 3. Cardiovascular diseases like Stroke, Coronary Heart Disease, Hypertension, etc. 4. Cancers like colon, breast and endometrial cancer 5. Osteoarthritis 6. Respiratory problems like sleep apnea, breathlessness, etc. How to handle obesity? 1. Behavior modification 2. Physical activity 3. Pharmacologic 4. Surgery for the morbidly

Consumer Behaviour Assignment Essay Example | Topics and Well Written Essays - 3000 words

Consumer Behaviour Assignment - Essay Example Clammer (1992) argues that this is true even of the most mundane consumption choices, which can reflect an individual's identity, tastes and social position (see also Elliott and Wattanasuwan, 1998; Slater, 1997) (cited by Sowden and Grimmer, 2009, p 1). Motherhood requires different changes that a woman goes through when becoming a mother. One of the aspects of this is the change in roles. Together with this comes the brand new identity and often of priorities also. A woman who might have devoted much of her time on herself especially on physical aesthetic sense might suddenly feel that her needs to promote her physical looks is relegated to the more important role of taking care of a child. Because of this new role and identity where the new mom has to fit in, she is exposed to a mould of what the identity must be or must look like. The society sometimes paints the required image that a mom must take in order to fit in the mould or the individual projects her own identity which she feels is best accepted in the society. As she tries to orient herself with the new role, she is subjected to consumption choices and decisions that had been expected from the identity that she has just assumed or wants to assume. These consumption decisions particularly refer to ... Similarly, other transitions or rites of passage points in the life cycle of the consumer could be viewed as identity projects. With the transition or with a new role to play, the consumer take on a new image which is necessarily consistent with the new identity he/she assumes. This then necessarily affect his/her consumption decision. Wattanasuwan (2005, p 179) stated that we do not really consume products just for necessity but also more importantly for the projection of the self that we want others to see. This self or this identity project is the one we hope that others within our group or subculture would accept and welcome with open arms. One case in point is the pre-adult or teenage years. This is a rather delicate and volatile stage as the individual tries to find out how he/she fits into the society he/she belongs to. Most of the issues that concern teenagers move towards their desire to belong and be accepted. Many young people would try to create and project an identity of maturity in their hopes to easily blend into the world of adults. "Symbolic consumption is taking on a greater role in distinguishing the pre-adult from the adult" (Ozanne, 1992 as cited by Batat, n.d.). Others would use this identity project to impress their peers or to be accepted in certain circles or groups. "The use of goods as symbols for communicating with other consumers is related to the use of goods in the development of self-identity. Individual can then use the symbolic content of chosen consumption objects to reflect their affiliation or connection to a particular social group" (Batat, n.d. cited from Elliott and Wattanasuwan, 1998 ). Because of this, the consumption choices we face would depend on the identity we

Conceptual Framework in Accounting Board

Conceptual Framework in Accounting Board Introduction A conceptual framework has its basis in a set of concepts. These concepts are linked to a system of methods, behaviors, functions, relationships and objects. The conceptual framework for financial reporting â€Å"†¦..seeks to identify the nature, subject, purpose and broad content of general-purpose financial reporting and the qualitative characteristics that financial information should possess†. (Deegan, 2005, p.1184). It is of fundamental importance to the future development of International Financial Reporting Standards (IFRS). Conceptual framework of an Accounting Board: Defines the objective of financial statements Identifies the qualitative characteristics that make information in financial statements useful Defines the basic elements of financial statements Specify how the elements are recognised and measured in financial statements. The focus of this essay is on conceptual frameworks propounded by Accounting Standards Board (ASB), the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) and also the improvements proposed in the IASB and FASB Joint Discussion Paper. ASB is a subsidiary company of the Financial Reporting Council (FRC) responsible for formulating Financial Reporting Standards. FASB is an Accounting Board that establishes rules governing accounting practices throughout the US. The mission of the FASB is to establish and improve standards of financial accounting and reporting for the guidance and education of the public, including issuers, auditors, and users of financial information. IASB is the youngest Accounting Board of the three. It was founded on April 1, 2001 as the successor of International Accounting Standards Committee (IASC) based in London, UK. IASB is responsible for setting International Accounting Standards. IASB has adopted many of the regulations of its predecessor. It uses IASCs 1989 ‘Framework for the Preparation and Presentation of Financial Statements’. Thus, IASB’s conceptual framework of accounting standards are outdated as the accounting standards prescribed by IASB reflect the accounting thought in1989. In contrast, ASB pronouncements are more contemporary. IASB and FASB Joint Discussion Paper In October 2004, US FASB and the IASB accepted that their existing frameworks move in different directions and were not complete and up to date. They decided to develop a single common conceptual framework that converges and improves the existing individual conceptual frameworks of the boards. They published a consultative document in 2006 setting out their preliminary views on an enhanced conceptual framework. Differences between Conceptual Frameworks The conceptual frameworks put forward by the three Boards can be compared on the basis of: Purpose of the framework Objectives of financial statements Qualitative characteristics Elements of financial statements Recognition and measurement criteria These are examined in detail below: Purpose of the Framework The three conceptual frameworks have similar purpose. The purpose of each framework is described below: ASB: The framework seeks to describe the fundamental approach propounded by ASB to strengthen the financial statements of profit-oriented entities. It provides a reference point to help ASB in developing new accounting standards and reviewing existing ones. IASB: Like ASB, IASB’s framework also serves as a guide to the Board in developing accounting standards. It also acts as a guide to resolving accounting issues that are not addressed directly in an IAS or IFRS or Interpretation. With a revision to IAS 8 in 2003, the importance of conceptual framework has increased further. The IASB framework applies to all business entities both in the private or public sector. FASB: The purpose of the FASB framework is also to assist standard setters in developing and revising accounting standards. The framework does not override accounting standards, and therefore in this respect it has a lower status than specific accounting standards. The FASB framework applies to both business and not-for-profit entities in the private sector. Despite the similar purpose of all frameworks, the emphasis of the framework differs from board to board. For instance, the IASB framework has a broader purpose than the FASB framework. The IASB framework not only assists IASB in developing or revising accounting standards but also assists preparers, auditors, and users of financial statements. There is also a difference in the status of the frameworks. For instance, the IASB framework is considered at a higher level in its GAAP hierarchy than the FASB framework in the U.S. GAAP hierarchy. The management of entities preparing financial statements under IFRS is expressly required to follow the IASB framework. IASB and FASB Joint Discussion Paper: The Discussion Paper states the purpose of conceptual framework to establish a common framework of the concepts that underlie financial reporting. The common framework is expected to suit the requirements of both FASB and IASB. However, this may lead to a problem. If the arguments contained in the discussion paper are adopted as the common framework, this will distance preparers and auditors as the framework will become theoretical and long and act only as a reference manual for standard setters. Objectives of Financial Statements Conceptual frameworks put forward by Accounting Boards put forward similar objectives of financial statement. ASB: According to ASB â€Å"†¦the objective of financial statements is to provide information about the financial position, performance and the financial adaptability of an enterprise that is useful to a wide range of users† (1999:1) FASB: The FASB framework specify objectives for business entities and non-business entities. According to FASB in SFAC 1 â€Å"†¦financial reporting is not an end in itself but is intended to provide information that is useful in making business and economic decisions†. (1978:9) IASB: According to the IASB’s Framework for the Preparation and Presentation of Financial Statements â€Å"†¦the objective of financial statements is to provide information about the financial position, performance and changes in financial position of an enterprise that is useful to a wide range of users in making economic decisions.† (2001:12)Unlike FASB framework, the IASB framework has a more limited scope. It discusses objectives in the context of business entities only. IASB and FASB Joint Discussion Paper: The discussion paper states that the objectives of financial reporting are to provide information: Useful to present and potential investors and creditors and others in making investment, credit, and similar resource allocation decisions. Useful in assessing cash flow prospects About an entity’s resources, claims to those resources, and changes in resources and claims Despite the similarity of objectives propounded by the various frameworks, the differences may arise due to the focus on users. The focus depends on the body producing the statements and establishing parameters. Qualitative characteristics The conceptual frameworks identify primarily four principal qualitative characteristics in common: Understandability Relevance, Reliability and Comparability. However there are differences in terms of what constitute ‘relevant’ and ‘reliable’ information and which characteristic is more important than others. ASB: The ASB narrow down the scope of their conceptual framework by establishing parameters which clearly defines the inclusions and exclusions. It defines the qualitative characteristics of the information which merits inclusion, for example, relevance, reliability, and comparability. UK ASB treats information to be reliable if it is free from material errors. Though freedom from material error is included as a sub-quality of reliability, the framework excludes verifiability as an essential element for reliability of information. The conceptual framework of ASB favours relevance over reliability if there is a conflict between relevance and reliability concept. IASB: According to IASB, information is relevant when it influences the economic decisions of users and is reliable if it is free from material error and bias and can be depended upon by users to represent events and transactions faithfully. IASB framework treats all four qualitative characteristics as primary qualitative characteristics. It treats materiality of information and its timeliness as a component of relevance. IASB does not give importance to one characteristic over the other. There is sometimes a tradeoff between relevance and reliability and judgement is required to provide the appropriate balance. IASB expects management to exercise prudence or conservatism to provide this balance. FASB: Unlike IASB, FASB framework set out the qualitative characteristics in a hierarchy, treating understandability as a user-specific quality separate from the others, relevance and reliability as the primary qualities, and comparability as a secondary quality. IASB and FASB Joint Discussion Paper: The discussion paper proposes replacing the qualitative characteristic of ‘reliability’ in the current frameworks with ‘faithful representation’. The paper also highlights areas where the qualitative characteristics of both IASB and FASB conceptual framework can be improved. For example, both frameworks emphasise neutrality, prudence or conservatism and expect that the exercise of prudence or conservatism does not allow the deliberate understatement of net assets and profits. However, the hard fact is that a concept of prudence or conservatism is inconsistent with the concept of neutrality. Elements of Financial Statements There are differences, though not major, between frameworks in relation to elements of financial statements ASB: ASB classifies transactions and other events into 5 elements: assets, liabilities, ownership interests, gains and losses. Assets, liabilities and ownership interest are included in the Balance Sheet and gains and losses in the Profit Loss Account. IASB: Like ASB, IASB framework also has 5 elements of financial statements: Assets, Liabilities, Equity, Liabilities, Income and Expenses. The first three elements form a part of the Balance Sheet and the last two a part of the Income Statement or Profit Loss Account. The assets, defined as a resource controlled by the enterprise as a result of past events and from which future economic benefits are expected to flow to the enterprise, has a central role. All other element definitions are based on the definition of assets. FASB: FASB framework has seven elements in all. Elements, such as assets, liabilities, and equity are for describing the financial position. Unlike two elements for IASB, the FASB framework includes five elements relating to financial performance: revenue, gains, expenses, losses, and comprehensive income. Though assets definition is still primary, there are differences in terms of how assets are defined by IASB and FASB. The FASB framework includes â€Å"probable† as part of the definition of assets and liabilities, whereas the IASB framework includes the term in its recognition criteria, and the meaning of the word is not the same. In addition to this, as per IASB, the asset is the resource from which future economic benefits are expected to flow, whereas as per FASB, the asset is the future economic benefits themselves. IASB and FASB Joint Discussion Paper: The discussion paper finds gaps in the existing frameworks in respect of the following aspects of elements of financial statements and requires the converged conceptual framework to focus on these: The distinction between liabilities and equity Definition of a liability The effect of conditions, contingencies, or uncertainties Accounting for contractual rights and obligations Recognition criteria for financial reporting The objective of financial statements is achieved by depicting in the primary financial statements the effects that transactions and other events have on the elements. This process is known as recognition. Frameworks differ with regard to recognition of effects of transactions. ASB: According to ASB framework, if a transaction leads to creation of a new asset or liability or to adds to an existing asset or liability, the effect will be recognised in the balance sheet. This recognition will happen only if there is sufficient evidence that the asset or liability exists and can be measured reliably enough in monetary terms. Except when there has been no change in the total net assets or the whole of the change is the result of capital contributions or distributions, a gain or loss will be recognised at the same time. ASB does not take into account probable effects. IASB: Unlike ASB, IASB framework includes ‘probable’ test for recognizing effects of transactions. For example, the IASB framework requires that an asset is recognised in the balance sheet when it is probable that the future economic benefits will flow to the enterprise and the asset has a cost or value that can be measured reliably. Similarly, a liability is recognised in the balance sheet when it is probable that an outflow of resources embodying economic benefits will result from the settlement of a present obligation and the amount at which the settlement will take place can be measured reliably. FASB: FASB framework also specifies a criteria to be satisfied before items are recognized in the financial statements. The framework also requires that only items that are relevant should be recognised. Like ASB, FASB framework also does not include probability as a recognition criterion. Measurement of the Elements of Financial Statements Measurement of elements of financial statements means assigning a monetary value to it. Frameworks differ on this account. ASB: ASB uses ‘value to the business’ (VTB), or ‘deprival value’ of the asset for measurement of asset. Similarly, liabilities are measured on the basis of the ‘relief value’. Moreover, ASB adopts mixed measurement system as against outdated frameworks that adopt a single consistent system. Mixed measurement system is flexible and allows the historical cost and current value to be changed as accounting thought develops and markets evolve. This implies that the use of current value will become more prevalent as markets develop and evolve. This approach is used by the majority of large UK listed companies and involves measuring some balance sheet categories at historical cost and some at current value. IASB: The IASB Framework acknowledges different measurement bases including: historical cost, current cost, net realisable value, present value. However, it does not recommend a preferred technique for measurement of assets and liabilities. The most common basis of measurement adopted by the framework is historical cost. Thus, there is no formal recognition of a ‘mixed measurement’ system in the framework. This is its biggest drawback and makes it an outdated framework as it belongs to a different period. This approach was abandoned by the ASB in favour of a ‘mixed measurement’ system. Even though many existing IFRSs are based on the concept of ‘fair value’, it is not referred to in the Framework. Again, such an omission suggests that the international framework measurement provisions are limited and out-of-date. FASB: Like IASB, measurement is one of the most underdeveloped areas of FASB framework. FASB frameworks also provides a list of measurement attributes similar to ones prescribed by IASB that are used in practice. However, like IASB, FASB framework does not recommend measurement criteria for any element. In other words, it too lacks fully developed measurement concepts. IASB and FASB Joint Discussion Paper: The discussion paper clearly highlights a need to consider whether the conceptual framework should include not just measurement concepts, but also guidance on the techniques of measurement. Conclusion The conceptual framework(s) contained in the ASB, the FASB, and the IASB have formed the basis of accounting standards for some time. The current IASB and FASB frameworks are increasingly out-of-date, as they ignore many of the developments that have been undertaken by national standards. There are certain limitations that need to addressed in a way that issues that cross-cut across standards are taken care of. For instance, a new framework is required which is not based on a single value-based model but a ‘mixed measurement system’. References Accounting Standards Board. (1999), An Introduction to the Statement of Principles for Financial Reporting, ASB Publications, London. Financial Accounting Standards Board, (2001- 2004) ‘Business Combinations: Purchase Method Procedures and (including Combinations between Mutual Enterprises) Certain Issues Related to the Accounting for and Reporting of Noncontrolling (Minority) Interests Solomons, D. (1988), Guidelines for financial reporting London, UK: ICAEW. Hines, R. (1991). The FASBs conceptual framework, financial accounting and the maintenance of the social world. Accounting, Organisations and Society, 16, 313-331. Research Memorandum (April 2004), Standard-setting and the myth of neutrality : Boundaries, discourse and the exercise of power, accessed from http://www.hull.ac.uk/hubs/05/research/memoranda/Memorandum%2047.pdf, accessed on 18 January 2007.

Malevolance Of God :: essays research papers

For as long as I can remember, God is said to be a benevolent deity who oversees all the happenings of the world and mercifully forgives all of mankind for their sins. Most Christians, if asked, will say that â€Å"God is good† and more so, he is forgiving. The Puritan notions of hellfire and brimstone, and that God is vengeful have been replaced by sincere benevolence. This new age Christian idealism has its helpfulness in today’s â€Å"misguided† society, but ultimately, as presented thus far in the Bible, is wrong. God’s image in the first five books of the Bible paints a picture of domination and malevolence.   Ã‚  Ã‚  Ã‚  Ã‚  As early on as the book of Genesis, God, in almost ever single story, kills and utterly destroys any person or civilization that does not believe in him. The story of Noah’s Flood is a prime example. In Noah‘s Flood story, God’s feeling towards his people are first examined:   Ã‚  Ã‚  Ã‚  Ã‚  And the LORD was sorry that he had made humankind on the earth...So the LORD said, ‘I will   Ã‚  Ã‚  Ã‚  Ã‚  bolt out form the Earth the human beings I have created...for I am sorry that I have made them...   Ã‚  Ã‚  Ã‚  Ã‚  I have determined to make an end of all flesh...I am going to destroy them along with the earth.  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  (Gen. 6.6-12) The Antediluvians were to God wicked and innately evil, his divine creations were flawed. Although, to God, humanity has been flawed since Eve doomed all humanity by eating from the Tree of Knowledge of Good and Evil.   Ã‚  Ã‚  Ã‚  Ã‚  In Exodus there are still several examples of how malevolent God is portrayed. God acts through Moses to bring about the plagues against Egypt.   Ã‚  Ã‚  Ã‚  Ã‚  Go to Pharaoh; for I have hardened his heart...in order that I may show these sign of mine among   Ã‚  Ã‚  Ã‚  Ã‚  them...I have made fools of the Egyptians...so that you may know that I am the LORD.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  (Ex. 10.1-2) To God, in order for the Israelites to truly believe in him, he must show off his powers to nations different to his own. After every plague though, the Pharaoh might have just given up and let the Israelites leave Egypt, but God hardened his heart each and every time to make an example out of him. As a result of God hardening the Pharaoh’s heart, thousands upon thousands of innocent Egyptians had to die due to the plagues brought against Egypt.   Ã‚  Ã‚  Ã‚  Ã‚  Further more in Exodus, God says: â€Å"but you shall destroy their altars, break their images, and cut down their groves, for you shall not worship any other God, for the LORD whose name is jealous, is a jealous God† (Ex 34.

Downsizing: the Financial and Human Implications Essay

This essay examines the effects of downsizing with regard to the human and financial implications. Since the mid to late 1980s, downsizing has â€Å"transformed the corporate landscape and changed the lives of hundreds of millions of individuals around the world† (Gandolfi, 2008, p. 3). For the purposes of this essay, downsizing is defined as the planned elimination of jobs, involving redundancies, and is designed to improve financial performance (Macky, 2004). It will be argued that while downsizing can be an effective strategy, it frequently does not improve financial health, and the human implications can be severe and costly. This essay will discuss: first, downsizing definitions; second, motivation for downsizing; third, a brief history of downsizing; fourth, approaches the implementation of downsizing; fifth, the human implications; sixth, the financial consequences; and, seventh, the reasons for the continued use of downsizing. There are differing perspectives regarding the downsizing phenomenon. At the most simple level, the strategy involves a planned contraction of the number of employees in an organisation (Cascio, 1993). For example, Macky (2004) describes downsizing as â€Å"an intentional reduction by management of a firm’s internal labour force using redundancies† (p. 2). However, other definitions encompass a wider range of implementation methods. Cameron (1994) defines downsizing as â€Å"a set of activities, undertaken on the part of the management of an organisation and designed to improve organisational efficiency, productivity, and/or competitiveness† (p. 192). These activities include hiring freezes, salary reductions, voluntary sabbaticals, exit incentives and reducing hours worked by employees. This essay will focus solely on the downsizing activity of redundancies. Various synonyms exist for downsizing, including resizing, rightsizing, smartsizing, restructuring, redundancies and reduction-in-force (Gandolfi, 2010; Macky, 2004). The main motivation for downsizing, at least for private companies, is to improve an organisation’s financial performance, which is also known as profit maximisation (Kammeyer, Liao & Avery, 2001). The factors contributing to downsizing decisions are complex and depend on company-specific, industry-specific and macroeconomic factors (Macky, 2004). In hard times, downsizing is a strategy that may be employed as a quick-fix, reactive response to compensate for reduced profit by reducing human related operational costs (Kowske, Lundby & Rasch, 2009; Ryan & Macky, 1998). In healthy times, the workforce may be reduced as part of a proactive human resource strategy to create a ‘lean and mean’ organisation (Chadwick, Hunter & Watson, 2004; Kowske et al. , 2009). An overwhelming body of academic research suggests that downsizing has surprisingly little success in increasing profitability and shareholder value, even though financial performance is its main intention (Cascio, 2002; De Meuse, Bergmann, Vanderheiden & Roraff, 2004; Lewin & Johnston, 2000). Despite the limited financial success of downsizing, it has remained a popular strategic tool with its use spanning the last three decades. Prior to the 1980s, downsizing was engaged primarily as a last resort, reactive response to changing manufacturing demands. It affected mostly blue-collar, semi-skilled employees (Littler, 1997). In contrast, since the 1980s, workforce reduction has become a leading strategy of choice, affecting employees at all levels, all around the globe (Mirabal & DeYoung, 2005, as cited in Gandolfi, 2008), within a wide variety of organisations encompassing all industries (Littler, 1998; Macky, 2004). Karake-Shalhoub (1999) suggests that downsizing has been the most significant business change of the 1980s. Downsizing increased in popularity during the 1990s, which has subsequently been described as the ‘downsizing decade’ (Dolan, Belout & Balkin, 2000). It has evolved from a reactive strategy in the 1980s, to become used as a proactive strategy. During the 1990s, large scale redundancy programs were viewed as the solution to the issues facing organisations such as AT&T, IBM, General Motors and British Telecom (Kinnie, Hutchinson & Purcell, 1998). The statistics are sobering, Cameron (1994) reported that 85% of Fortune 500 companies were downsized between 1989 and 1994, and 100% were planning to do so within the next five years. Furthermore, figures from the most recent global financial crisis demonstrate that downsizing remains a tool of choice. Rampell (2009) reported in the New York Times that 4. 4 million jobs, in the U. S. alone, were retrenched between September 2007 and March 2009. Two main approaches to the implementation of downsizing are currently employed. The first approach is popularly termed stealth layoffs and the second is referred to as non-selective layoffs (Gandolfi, 2009). Organisations have commonly employed both stealth layoffs and non-selective layoffs during the recent global financial crisis. Stealth layoffs involve an attempt to keep redundancies out of media attention, by making a series of small cuts rather than one large cut. Companies endeavour to save their public reputation from being tainted by their downsizing activities. Managers are not allowed to openly discuss redundancies and a blanket of secrecy is placed over all proceedings, employees are not informed of timing or extent of redundancies (Crosman, 2006). Mc Gregor (2008) reported a wave of people slowly trickling out of organisations. Citigroup provides one example of stealth downsizing. Story & Dash (2008) reported that in April 2007 the company announced elimination of 17,000 jobs. Then in January 2008 Citigroup announced a further 4,200 job cuts, followed by an additional 8,700 in April 2008 (Story & Dash, 2008). Non-selective downsizing involves mass redundancies, across all levels of an organisation. This is problematic because firms are at risk of losing their top performers who are difficult to replace. These are the people that will be required to drive future growth of the firm following the downsizing event. There is plenty of evidence of non-selective downsizing over the current global recession, for instance the finance industry has been deeply affected with U. S. anks making cuts of 65,000 employees between June 2007 and June 2008 (Story & Dash, 2008). Regarding the human implications of downsizing, the literature identifies three groups of people directly affected: the victims, the survivors, and the executioners. Academic studies refer to the victims of downsizing as the individuals who have been involuntarily removed from their positions (Casio, 1993; Dolan et al. , 2000; Gandolfi, 2008; Macky, 2004). The negative effects on victims of downsizing events can be devastating (Havlovick, Bouthillette & van der Wal, 1998). Previously, being well trained was sufficient to ensure a life-long job. However, the increasing competitiveness of the business environment has meant that recent layoffs have included higher paid white-collar workers, many of whom are at the peak of their careers. Victims are affected initially during the planning phase of the downsizing, then immediately following the redundancy announcement, and then in their subsequent employment. During the planning phase of downsizing, the threat of redundancies can subject employees to a number of emotional stresses. The stresses do not only embrace the immediate threat of redundancies, but also the prospect of demotion, and redundancies in the ong term. Evidence suggests that, as expected, such stresses have negative psychological impacts. For example, Catalano, Rook and Dooley (1986) in their interviews of 3,850 principle-wage earners in Los Angeles, found that that a decrease in job security increased the number of medical consultations for psychological distress. Likewise, Roskies and Louis-Guerin (1990) found in their survey of 1,291 Canadian managers, that managers who were insecure about their jobs showed poorer health than those who were secure, and the manager’s level of distress rose proportionally with their degree of insecurity. Following the redundancy announcement, there is strong evidence that victims suffer from adverse effects as a result of their job losses. These adverse effects include psychological stress, ill health, family problems, marital problems, helplessness, reduced self esteem, anxiety, depression, psychiatric morbidity, and feelings of social isolation (Greenglass & Burke, 2001). In particular, the affected individuals suffer from the loss of established social relationships and threats to their social identity (Macky, 2004). Greenglass and Burke (2001) also explain that the effects can vary greatly from person to person. The extent of personal damage is attributed to the individual’s resources of coping strategies, self-efficacy and social support. Evidence shows that the retrenched employees are able to respond in a more constructive manner depending on the extent to which they view the downsizing process as procedurally fair. Brokner, Konovsky, Cooper-Schneider, Folger, Martin and Bies (1994) found that employees remaining in their positions for up to three months after the announcement of their redundancy continued to exhibit positive work behaviours if the downsizing process was viewed as fair and transparent. There is evidence that subsequent employment opportunities are also affected by the victim’s previous redundancy experiences, including a change in their attitude towards the workplace. Macky (2004) provided evidence that the effects of redundancies flow onto the individual’s next position, resulting in decreased levels of commitment and loyalty. Dolan et al. (2000) also showed that there is some evidence that job loss created through redundancies may create lasting damage to the victim’s career. Similarly, Konovsky and Brockner (1993) found that individuals report a loss of earning power in their subsequent employment. On the other hand, Devine, Reay, Stainton and Collins–Nakai (2003), argue that victims who gain new employment have a greater sense of control and appear to be in a better position than those who were not retrenched. Noer (2009) suggests that negative impacts on victims are lessened by the various support packages for displaced employees that are paid for by the organisation, such as redundancy payments, career counselling and out-placement service. The second group of employees affected by downsizing are the survivors. The survivors are the employees who have remained with the firm after the redundancies have taken place (Littler, 1998). The survivors are important to the firm because they play a pivotal role in the effectiveness of the downsizing operation and the ongoing success of the organisation. The expertise and motivation of survivors is required to keep the firm moving forward following redundancies. However, surviving employees are left with increased pressures. These pressures include: larger workloads (Dolan at al. 2000), because survivors must take on the work of retrenched employees; as well as new and increased job responsibilities (Lewin & Johnston, 2000), as a result of key skills leaving the organisation. In addition to the increased work pressures, survivors must deal with profound and negative psychological responses. Gandolfi (2008) identifies three sets of the emotions, behaviours and attitudes exhibited b y surviving employees, which are commonly termed ‘sicknesses’ in literature (Applebaum, Delage, Labibb & Gault, 1997; Kowske at al. , 2009). The emergence of these sicknesses following a downsizing event is referred to as the ‘aftermath’ (Clark & Koonce, 1995) or the ‘downside’ (Cascio, 1993) of downsizing. The sicknesses identified are: survivor syndrome, survivor guilt and survivor envy. Kinnie et al. (1998) characterises survivor syndrome as encompassing a variety of psychological states in survivors, including heightened levels of stress, absenteeism and distrust, and as well as decreased levels of productivity, morale and work quality. Cascio (2002) portrays survivor syndrome in a similar way to Kinnie et al. 1998), showing decreased: levels of employee involvement, morale, work productivity and trust towards management. These mental states have a strong influence on the survivor’s work behaviour and attitudes, such as motivation, commitment, satisfaction and job performance (Applebaum et al. , 1997; Littler, Dunford, Bramble & Hede, 1997). The second sickness, survivor guilt, is a fe eling of responsibility or remorse as employees contemplate why their colleagues were retrenched instead of themselves. It is frequently expressed as fear, anger and depression (Noer, 2009). Survivor guilt can be particularly prevalent when survivors perceive that their work performance was no better than that of the downsized victims (Littler et al. , 1997). In this case, employees can reason that there is no benefit in performing if performance is not a criterion for job survival (Appelbaum, et al. , 1997). Appelbaum and colleagues argue that survivor guilt is heavily influenced by the manner in which the downsizing is perceived to be performed and the fairness of the decision making processes. Survivors of downsizing can also be plagued by a third sickness, survivor envy. This reflects the survivors’ envy of the victims in terms of presumed retirement packages, financially lucrative incentives, and new jobs with more attractive compensation (Kinnie et al. , 1998). For example, employees may feel that their retrenched ex-colleagues received redundancy pay outs; and have found new jobs they like, while the surviving employee must work twice as hard, and moreover, for the same pay. Kammeyer-Meuller, Liao and Avery (2001) hypothesise that survivors envy is dependent on the closeness of the relationship with the survivor. Brokner (1987) found that when survivors have little proximity to the victims, increases in redundancy payouts result in decreased self-reported performance. On the other hand, the study shows when survivors identify with the victims, increases in redundancy payouts increased self reported performance. Despite the stresses facing survivors, research shows that the needs of the survivors are frequently neglected by downsized firms (Applebaum et al. , 1997; Devine et al. , 2003; Gandolfi, 2006). According to Applebaum et al. 1997), the negative effects on the survivors are under-estimated and organisations fail to take into account the difficulties of motivating a surviving workforce that is emotionally damaged because it has watched others lose their jobs. It is important for organisations to pay more attention to the survivors in order to support their financial health. Carswell (2002), in a New Zealand empirical study, established that the companies that based redundancy on fair pra ctices, and provided better out-placement for the victims, performed better financially than those that did not use such procedures. Kowske et al. (2009) reviewed survivor engagement during the 2007-2009 global financial crisis and provided further valuable insights. Using the Keneya’s Employment Engagement Index and a sample size of 9,998 U. S. employees, it was determined that employee engagement was significantly lower if redundancies had occurred within the previous 12 months. Kowske et al. (2009) found that although organisations were able to cut human resource costs, they are more likely to have a portion of their workforce disengaged – fertile ground for the symptoms that accompany survivor sickness. An example of a lack of insight regarding survivor sickness was demonstrated in the downsizing of the Deloitte (New Zealand) Enterprise Risk Management Team, in May 2008 (personal information). The first problem was that just two weeks prior to the redundancy announcement, a statement was made by one of the partners to the team, stating that no-one should be concerned about their jobs. Another problem was that the downsizing process was not transparent and no employee below partner level was involved in the consultation. Not only wew the staff made redundant effected, but also the surviving employees who exhibited traditional symptoms of survivor sicknesses: feelings of distrust, anger and low moral due to their perceived unfairness of the decision process. The result of this survivor sickness was that, by the end of the following year, the entire senior management team had voluntarily left the firm, taking with them valuable skills and experience. Such attrition is consistent with Trevor and Nyberg’s (2008) findings that voluntary turnover rates increased within 24 months following the downsizing event. It is clear that management must pay more attention to survivors in order to minimise survivor syndromes. The literature highlights four key improvements to current downsizing methods, in order to minimize survivor syndromes. Firstly, a detailed strategy must be devised, this is because planning has been identified as a pivotal issue in the success of downsizing (Applebaum et al. , 1997; Gandolfi, 2008). The strategic plan should establish how the survivors will be taken care of during the downsizing process (Gandolfi, 2009). This includes giving survivors access to honest, timely and unbiased information (Dolan et al. , 2000) as well as access to counselling, support and help (Allen, 1997). Second, training must be improved as it is identified as key tool to combat survivor sickness (Dolan et al. , 2000; Farrell & Mavondo, 2004; Makawatsakul & Kleiner, 2003). The retrenched individuals often leave with key skills that must be taught to the surviving employees. Third, managers are recommended to communicate the long term business strategy to the surviving employees, n order to create a shared vision for the future of the firm (Cobb, Wooten & Folger, 1995). Last, fairness in the way the redundancies are selected and implemented including open communication lines are valuable to support trust within the organisation (Hopkins & Weathington, 2006). For example, retirement programs are viewed as more fair downsizing methods by survivors and lead to increased commitment (De Witt, Trevio & Mollica, 1998). Execut ioners are the group of survivors that form the third category of people affected by downsizing. Executioners are the individuals entrusted to plan, carry out and evaluate the downsizing (Gandolfi, 2009). Other synonyms for executioners include ‘downsizing agents’ (Clair & Dufresne, 2004) and ‘downsizers’ (Burke, 1998). The effects on such personnel are important because downsizers are commonly employees and managers, who can have a large impact on the success of the change. This is because the executioners have power to influence employees and power to employ tools and techniques to minimise harm. Although they are a category of survivors, the executioners experience differs to that of the survivors because of their heavy responsibilities, in executing the downsizing, managing relationships with the retrenched individuals as well as supporting the survivors. Gandolfi (2007) is one of the few academics to offer some insight around the experiences of the executioners using empirical research. Gandolfi interviewed 20 executioners from a major Australian trading bank and identified four key themes from their responses. The first was the very negative emotional responses and reactions from the executioners, including the difficulty and complexity the executioners had in selecting the downsizing victims. Second, Gandolfi also identified coping strategies, including the executioners distancing themselves from the task physically, cognitively and emotionally in order to preserve their own emotional well-being. In further research, it would be interesting to explore the relationship between the implementation of coping strategies and the effectiveness of the downsizing operation. Third, Gandolfi found that executioners with more experience reported a lesser degree of emotional distress. This is in line with Clair and Dufresne (2004) who suggest coping behaviours are learned with experience. Fourth, Gandolfi identified that the closeness of the relationship with the victims is also important in that the layoffs were more taxing when the executioner had developed personal ties with the victims. Another aspect of the executioner’s experience is their handling of the currently employed downsizing methods of stealth layoffs and across the board cuts. Executioners have reported that they are uncomfortable with the degree of secrecy involved with stealth downsizing (Gandolfi, 2009). For example, executioners have reported instances causing internal conflict when they have had to lie to employees (Gandolfi, 2009). In the case of across the board cuts, executioners often find it difficult of rationalize the unfairness of the choices and question their rights to be playing god with the individuals involved. The significant negative impacts on the executioners highlight the need for firms to provide adequate training and emotional support for the executioners (Gandolfi, 2009). Although more research is required in this area, it is apparent training should at least raise awareness of the range of emotions that executioners may experience, and include tools and techniques to cope with the emotions involved with carrying out the task. Clair and Dufrense (2004) suggest that throughout the process of downsizing, firms should make available to managers social forums, employee assistance programs and social support groups. The profound human consequences on the survivors and the executioners are interlinked with the financial consequences. Literature has identified that the human consequences of downsizing play a large role in the financial success of the downsizing operation (Carswell, 2002; Devine et al. , 2003; Gadolfi, 2008). The financial success of the strategy is particularly important to shareholders and to external bodies such as suppliers, distributers and allied organisations (Kammeyer-Mueller, 2001). A large and growing body of literature has investigated and measured the financial success of carrying out downsizing, and found that most organisations do not improve their financial performance after downsizing (Applebaum, et al. 1997; Cascio, Young & Morris, 1997; De Meuse et al. , 2004). The research around financial performance following a downsizing event focuses on tangible measurements of financial performance, such as examining changes in profit, share price and return on investment, before and after the downsizing event. However, it is noted that some companies do improve their financial performance by using downsizing as a strategy. Griggs and Hyland (2003) surveyed 1,005 U. S. organisations and found that of the respondents, 46% of companies able to decrease costs, 33% were able to ncrease profitability and 21% were able to report satisfactory improvements on return on investment. Only 46% of firms reduced costs due to poor planning, and this was because, in four times out of five, managers ended up replacing the very positions they made redundant (Griggs & Hyland, 2003). Wayhan and Werner’s (2000) findings contradict most downsizing research, in their examination of the largest 250 U. S. companies which had reduced their workforce by at least three percent during the period 1991-1992. These researches measured changes in stock prices and they showed that, in the short term, downsized companies significantly financially outperformed companies that did not downsize. However, it should be noted that Wayhan and Werner’s (2000) study uses a different technique, in that they treat time as a moderator of the affects. The rationale behind this is that other influences on the firm’s stock price will become more important than the influence of the downsizing event, as the time from the downsizing event increases. When Wayhan and Werner’s study was repeated using typical techniques (not using time as a moderator), the results were more in line with other research, showing small decreases in relevant financial measures. Sahdev (2003), Zyglidopoulos (2003) and Macky (2004) are among numerous researches showing that while a small number of organisations have reported improved financial performance, the majority were unable to account improved levels of effectiveness, productivity, efficiency and profitability in the short term. A typical example is Cascio, Young and Morris’s (1997) study of 537 companies listed on the S&P 500 between 1980 and 1994. After comparing average companies in the same industry, and controlling for firm effects, they discovered no evidence that downsized firms could subsequently increase profits or share price over a period of two years subsequent to the downsizing event. This is in line with evidence from New Zealand (Carswell, 2002). Furthermore, Cascio et al. (1997) found that downsized firms were outperformed in the short term by those companies that increased their workforce and also companies with stable employment. This study was limited by focusing only on extreme reductions of 10% or more. The long-term implications of downsizing on financial performance were investigated by De Meuse et al. (2004) in a more recent U. S. study. Using U. S. Fortune 500 companies, De Meuse and colleagues look at a period of nine years following the redundancy announcement, from 1989 to 1998. De Meuse et al. found that in the first two years following the announcement the financial performance of the firm’s decreased, in line with Cascio et at. (1997). However, at the beginning of three years after the downsizing announcement, De Meuse et al. found no significant underperformance of the downsized firms. Unfortunately, most studies provide little empirical evidence regarding why in some cases downsizing produces positive financial results, and in other cases it does not. This is because downsizing tends to be treated as a binary variable in research, that is, firms either downsize or they do not (Kammeyer-Muller, Liao & Arvey, 2001). However, it is apparent that not all downsizing efforts are the same. The following factors are likely to have an effect on the financial performance of the firm subsequent post-downsizing announcement: the type of reduction strategy employed (for example, across the board cuts, stealth layoffs, or more gradual procedures); the persistence of survivor syndromes; the logistics of downsizing (for example the size and frequency); and, the reasons behind the decision to downsizing. The lack of research in this area provides opportunities for researchers to further explore the downsizing phenomenon. The prevalence of evidence surrounding impaired financial performance following downsizing events introduces a paradox: why is the practice continuing to be engaged despite its lack of success? Cynics suggest that downsizing can be carried out in order to boost the egos of top managers at the expense of the organisation (e. g. Anderson & Cavanagh, 1994; Budros, 1999). Other explanations include the tendency of management to inaccurately anticipate costs involved. Downsizing generates direct and indirect costs, and it is the hidden (indirect) costs that are frequently underestimated by management (Gandolfi, 2008). Direct costs are less complicated to estimate and include severance pay, accrued holiday pay and administrative processing costs. Hidden costs include recruitment and employment costs of new hires, costs of replacing staff with expensive consultants, lost sales due to insufficient staffing, training and retraining, and costs of reduced productivity as a result of survivor syndromes (Cascio, 1993). For example Gandolfi (2001) reported that a European company (unnamed for privacy reasons) incurred an increase of 40% in recruitment, and a 30% increase in training and development costs for new employees, following its controversial downsizing. In order for downsizing to be engaged as an effective strategic tool, it is clear that the benefits of reducing staff must outweigh all the costs. It has become clear that management must consider very carefully whether downsizing is appropriate for their firm, and they need to pay careful attention to the hidden costs. According to Allen (1997) the key to successful downsizing is to focus on the people who make up the organisation. Literature has provided management with guidelines to minimise costs and harm. For the survivors, this includes minimising survivor symptoms through planning of the downsizing operation, training of the surviving staff, and using open communication and fairness in carrying out the redundancies. For the executioners this includes providing them with training. This essay has identified and discussed the effects of downsizing with regard to both the human and financial implications. It has been demonstrated that the human implications of downsizing can be sever and downsizing frequently fails at meeting its objectives of improving financial performance. First, the profound negative consequences of downsizing on the victims, the survivors and the executioners have been outlined. Next, the empirical evidence concerning the financial consequences has been summarised. Gaps have been identified in downsizing literature. Two areas of downsizing that could well be further explored include the experience of the executioners and the characteristics of downsizing operations that result in successful financial outcomes. The recent prevalence of downsizing activities over the latest financial crisis suggests that downsizing is a phenomenon worth exploring into the future.

Employee Productivity Essay

Human resources are considered an entity’s most valuable assets and should be well appreciated for them to be extremely productive. Such appreciation increases employees’ productivity to ensure that a company remains a market leader in the industry that it operates in. High productivity also improves an organization’s market value. The use of incentives will be necessary to entice the workforce up to the point that they give their best to their employer. Increasing the workforce’s productivity is mainly centered in motivating them at the lowest production and operating cost possible. Piecework compensation programs are of encouragement to the employees. Employees will work hard having in mind that their pay is directly proportional to units of output and will produce more. Payments should be based on parts assembled, sales made or even hours billed. Most people are motivated by a high pay and piecework compensations tend to increase the overall workforces’ output. The human resources should therefore get a return that is directly proportional to their output. Promoting from within entice employees to be more productive because they are assured of moving up the career ladder. Those who tend to be more efficient and effective should be given a higher rank for them to perform even better. An example is the case where an Accountant may be promoted to be the chief Accountant for his quality work. The manager should also ensure adequate equipments for the workforce. Machines should be good and computers up to date if the employees are to deliver at their best. The manger should also provide a fair opportunity for the workforce to be productive enough. He should not be biased based on nepotism or racism for the workforce to feel appreciated. Office supplies should also be adequate so that the labor force does not fall short of materials. Profit sharing schemes makes the employees to be owners of the organization and will produce more for profitability to be at its best. Employees will be shareholders of the business entity and will produce more for dividends and earnings per share to be high. The manager should also offer achievement awards like plaques, special parking areas, employees should also be allowed to wear casually at least once a week and on certain days, lunch breaks should be long. The employees will therefore work at ease to the advantage of the employer. The manager should also provide adequate breaks during work to allow employees time to relax during their delivery to the employer. This refreshes the mind because they will have something to look forward to and recharge their batteries. By being shareholders, employees will participate in the company’s Annual General Meetings and will be in a position to vote in the entity’s directors. They end up considering themselves as part of entity’s owners and become more productive. Incentive programs should be adjusted frequently for the workforce to feel rejuvenated. Salary increments should be annual for the workforce to realize that they are being appreciated. Incentives should also depend on the value created after performance appraisals have been carried out. Non monetary rewards like gifts, acknowledgements and praises should be frequent for productivity to be at its best. Money motivates employees at initial stages but as time progresses it becomes less active as a motivator. Motivating employees psychologically may be more useful because it normally acts as some inner energy and they deliver more. Employee appraisals are aimed at examining employees’ performance during a certain time period. They help in determining whether employees are helping in realizing the entity’s short-term goals in line with the company’s mission statement and vision. Every responsible employee should target the company’s expectations in terms of sub optimization for the company to remain focused Employee appraisals also help to examine the variance between observed and expected performance. Corrections can therefore be made where necessary so that actual performance does not deviate much from the expected standards. Mentors will therefore be kept on toes for their juniors to understand why they should stick to the entity’s standards of operation and performance. Organizational controls can be exercised after the employees’ performance has been evaluated. They therefore assist the entity in achieving and maintaining its leadership position. Appraisals also help in determining the training development requirements for the future. Employees requiring special training needs will be identified and the management will focus on filling in the gap that may relate to knowledge or education. Employees may therefore consider paying for their employee’s school fees for their education to remain relevant. Information is provided on human resources in terms of promotions or transfers. Those who have been performing excellently will be appreciated through promotions or taken to other departments for them to maintain similar good performance. They also provide a clear picture in terms expectations or responsibilities of duties to be carried out by employees. Â  After the employees’ performance has been accessed, it will be possible to determine what the management can expect of their workforce given their knowledge, education, experience and expertise. Appraisals also help in judging the efficiency of various human resource duties like recruiting, selecting, developing and training. Employee grievances will also be reduced through appraisals. By evaluating someone’s performance, it will be possible to determine whether the recruiting was carried out fairly and the training needs required. Performance appraisals also help in strengthening the bond or communication between juniors-seniors and workforce to the management bond. Appraisals determine how well the subordinates are cooperating with their seniors for mutual success of their employer. Payroll and reimbursement decisions are made easy because employers base their remuneration packages on their employees’ contribution to the entity’s success. Decisions of future objectives and actions to be taken in relation to human resources management are made easy. Performance appraisals assist in job analysis or provision of supervisor support, guidance and counseling. Those who need direct supervision are identified and adequate support is offered for the workforce to be extremely productive. According to the Vroom’s Expectancy theory, effort is separated from performance or outcome. Efforts must be linked to performance and psyching for motivation to be realized. Three variables are proposed to cater for this relationship. The three variables are instrumentality, valence and expectancy. EXPECTANCY: this is the belief that more effort increases performance, therefore working hard makes things better. It is determined by the availability of the right resources, that is raw materials or time, right skills for doing the job, necessary support for getting work done like seniors’ support and the right job information. INSTRUMENTALITY: this relates to believing that performing well leads to a valuable output being received; therefore doing the job right yields something. An employee will therefore put more effort in his work because he expects to be remunerated at the end of the month. It is determined by a clean understanding of the link for performance with outcomes that is the reward game rules, trusting the persons making the decisions on how outcome is distributed and a transparent process of deciding how outcome is distributed. An organization is supposed to have well laid down standards of reimbursing employees so that bias is avoided. The employee should provide adequate rewards and incentives that match contribution by the workforce for them to keep on performing well. Rewards should however be well designed so that none of the entity’s groups of workforce is left out. VALENCE: this is the vitality that employees place on expected outcome. For instance a person who is mainly motivated by cash does not value additional time off offers. Persons change their effort level depending on the importance placed on outcomes they get from processes and on their idea of awareness of effort and outcome links. Hence perceiving that improved effort increases performance, increased performance improves rewards and one values rewards being offered , then Vroom’s Expectancy theorem indicates an individual will be motivated. Therefore efforts, performance and rewards are prerequisites for adequate and sufficient motivation. Employees will be well psyched up to perform if they are assured of a good return to match their continued effort. They should be made to feel as part of the entity for them to be efficient and effective enough. Rewards should however be designed in such a way that the entity maximizes its profits at the lowest cost possible. If a professional employee is currently being well rewarded, he will not see the point of looking for a greener pasture and he will remain a true human capital to the employer.