Concepts and Theories of Organizational Politics

Concepts and Theories of Organizational Politics Abstract Organizational politics is often defined as Intentional enhancement of self-interest. What it actually means research provides that It is use of power to affect decision making in an organization or self-serving and organizationally unsanctioned behaviors. This definition adds to knowledge of organizational behavior that the people in the organization reflect political behaviors and ability to reflect such behaviors were termed as political skills. These behaviors can be both legal and illegal with respect to their intensity. However, in reality politics take place due to scarcity of organizational resources as everyone will attempt to perform better and want to be rewarded to fulfill personal interest, but as resources are limited it does not happen. Moving forward, it is also said that political behavior can be perceived as politics and at the same time as effective management so, it depends on the perception of a person. Now talking about reasons of political behavior adopted by p eople in the organization there are some individual factors as individuals in organizations may be high self-monitors, high mach personality, possess locus of control or may have job alternatives such individuals found to be indulge in politics. As for as organizational factors are concerned there may be role ambiguity, limited resources, high performance pressure or self-serving serving senior managers which stimulate the process of politicking within the organization. However, there is a reaction to an action so, people used to behave defensively in order to avoid action, blame or change. So, organizations should limit the effects of political behavior otherwise they should have to manage the politics effectively by being clear, straight forward, by being honest in their proceeds in order to match the communicated thoughts with their employees, and using defensive behaviors against dirty political players. Moreover, people in organizations want to be attractive and want to make po sitive image of themselves in the mind of others. This attempt of people of introduced the term impression management in the organization by means of which people manage their impression in minds of others. It helps people to take benefits in different aspects and satisfy their interests, which is likely to be referred as politics. Introduction Pfeffer (1992) defined politics as the processes, the actions, the behaviors through which potential power is utilized and realized. Another author (Dubrin, 2001) defined organizational politics as informal approaches to gaining power through means of other than merit or luck. It could be argued that politics are used primarily to achieve power, either directly or indirectly, e.g., by being promoted, receiving a larger budget or other resources,  ­or gaining desirable assignments. Many people regard organizational politics as something negative (e.g., pursuing self-interests at the ex ­pense of others) and something to be minimized. Consequently, although most people know that organizational politics are common, they avoid saying so when it concerns ones own behavior. It is more common to talk about politics when complaining about a loss to a friend than it is in the context of ones own political interference. When we win on an issue, we call it leadership, when we lose, we call it politics. In many organizations, politics is a taboo subject, which makes it difficult for individuals to deal with this crucially important aspect of organizational reality. Organizational politics are neither good nor bad, although it is important for us to distinguish between ethical and unethical political behavior. Organizational politics When people get together in groups, power will be exerted. People want to carve out niche from which to exert influence, earn rewards, and advance their careers. When employees in organizations convert their power in to action it is describe as to them as being engaged in politics. Those with good political skills have the ability to use their bases of power efectively.1 Defining Organizational politics Organizational politics refers to Intentional enhancement of self-interest by kinicki in 1990, it means that a person with his intention try to influence the others in the organization in order to enhance his personal interests. Furthermore, with reference to the study subjected to Political Alignments in Organizations and Power and Influence in Organizations done by S.B. Bacharach and E.J. Lawler, R.M. Kramer and M.A. Neale respectively in 1998 defines organizational politics as It is focused on use of power to affect decision making in an organizations or self-serving and organizationally unsanctioned behaviors. In explanation a person use his power or authority to influence the decisions made by organization or use his power to serve himself with organizational resources and also to its extreme perform or reflect such a behavior that is prohibited in the organization. Political skills It can be defined as The ability to influence others in such a way as to enhance ones objective2, according to this definition a person if have such an impact on others that they act in accordance with him to achieve his goal or objective. So, if a person used to create required behavior coming from others which at the end help to accomplish that particular persons objectives, the person is said to be have political skills. Political behavior It refers to the Activities that are not required as part of a persons formal role in the organization but that influence, or attempt to influence, the distribution of advantages and disadvantages within the organization.3 In simple words such a behavior within the organization that is not required by job or organization but rather exercised in attempt to take advantages in certain conditions. Moreover, this definition is broad enough to include varied political behaviors such as withholding key information from decision makers, joining a coalition, whistle blowing, spreading rumors, leaking confidential information to the media, exchanging favors with others in the organization for mutual benefits, and lobbying on behalf of or against a specific individual or decision alternative. Types of political behavior There are two types of organizational politics that are as follows Legitimate political behavior Illegitimate political behavior Legitimate political behavior Interviews with experienced managers revealed that the political behavior is a major part of organizational life.4 Many manager reports that the use political behavior is both ethical and necessary, as long as it does not directly harms anyone else. So, this type of political behavior is subjected to normal routine politics that take place every single day within the organization. Illegitimate political behavior As described above political behavior is part of organizational life, some managers repot it to be good but to which extent? The intensity of politics done refers to another type of political behavior. So we can say that extreme politics that violates the implied rules of the game in organization reflect to be illegitimate or illegal type of political behavior, such a behavior would likely to be sentenced to punishment. The reality of Politics Organizations are made up of individuals or groups with different values, goals and interests.5 This set up the potential of conflict over the allocation of limited resources, such as departmental budgets, space, project responsibilities and salary adjustments.6 If resources were abundant constituencies within the organization could satisfy their goals. As the resources are limited everyones interests cannot be satisfied. Furthermore, gains by one individual or group are often perceived as coming at the expense of others within the organization whether they are not. These forces create real competition among members for the organizations limited resources. Politics in the eye of beholder A behavior one person labels as organization politics is very likely to seem like effective management to another. The fact is that the effective management is necessarily political, although in some cases it might be. Rather, a persons point determines what he or she classifies as organizational politics. For example, one experimental study showed that power-oriented behavior performed by a permanent employee is seen as more legitimate and less harsh than the same behavior performed by a temporary employee.7 take a look at the following labels used to describe the same phenomenon. These suggest that politics, like beauty, is in the eye of the beholder.8 In simple words these labels describe that at the same time one may state a political label to be an effective management label. For example, blaming others for a deed is politics on the other hand it may be referred as fixing a person to its responsibility that is an effective management. Let take another example creating conflict in the work setting might be politics but looking from other side it might be am initiative to change or innovation in the organization, and same applies to others. Causes of political behavior      Ã‚   There are following factors contributing to political behavior in the organization.9, 10, 11, 12 Individual factors High self-monitors Internal locus of control High Mach personality Organizational investment Perceived job alternatives Organizational factors Declining of resources Promotion opportunities Role ambiguity Unclear performance evaluation system Zero-sum reward practices Democratic decision making High performance pressures Self-serving senior managers Individual factors High self-monitors These individuals are more sensitive to social cues, they exhibit higher levels of social conformity, and they are more likely to be skilled in political behavior. Internal locus of control The organizations consist of such individuals who are more prone to take a proactive stance and attempt to manipulate situations in their favor, which in sense is politics as an individual try to influence the environment. High mach personality The individual who wills to manipulate, and have desire for power is comfortable at using politics as a mean to fulfill his or her self-interest. Organizational investment Some individuals used to have persona investment in the organization in terms of expectations of increased future benefits, the more that person has to lose if forced out and the less likely he or she is to use illegitimate means. Perceived job alternatives An individual who have more alternative job opportunities due to a favorable job market or the possession of scarce skills or knowledge, a prominent reputation, or influential contacts outside the organization the more likely there is risk that he can take illegitimate political actions. Organizational factors Unclear performance evaluation system Organizations should opt proper performance evaluation system and there should be no subjective performance criteria, no single outcome measure, and there should be no delay in awarding appraisal for a job done. Zero-Sum Reward practices It is also called Win/Lose Approach treats the reward pie as fixed so that any gain one person or group achieves has to come at the expense of another person or group. This particular approach opted by organization enhances the politics in the organization. Democratic decision making In this regard organizations direct managers to behave more democratically, they are told that they should allow employees to advise them on decisions and that they should rely to a greater extent on group input into the decision process, which cause undue influence on organizational practices. High performance pressure In an organization the more pressure that employees feel to perform well, the more likely they are to engage in politicking. Self-serving senior managers When inside the organization the employees see the people on top engaging in political behavior, especially when they do so successfully and are rewarded for it, a climate is created that supports politicking. Declining resources In an organization people may engage in political actions to safeguard what they have. So, they may stimulate conflicting actions and increase politicking. Promotion opportunities As appraisal is part of organizational practices so, it encourages people to compete for a limited resource and try to positively influence the decision outcome. Role ambiguity If the organizational practices fail to clearly define the role of particular job within the working environment, it initiates the politicking as the formal role and behaviors required by the organization are ambiguous. Consequences of organizational politics There are different kinds of employees within an organization so; in respond to organizational politics employees reflect different effects, like some employees show decreased job satisfaction13 and reduction in job performacne14. Similarly, some employees feel an increase in anxiety and stress15 while performing their job in political environment. Furthermore, some employees add to turnover ratio16 of organization as they might resign from their job due to political practices in organization. It is also seen that when employees see politics as a threat, they often respond with Defensive behaviors. Defensive behaviors It can be defined as Reactive and protective behaviors to avoid action, blame or change.17 there are some examples of such behaviors in Avoiding action Over conforming Strictly interpreting your responsibility by saying things like This is the way we have always done it. Buck passing Transferring the responsibility for the execution of a task or decision to someone else. Playing dumb Avoiding an unwanted task by falsely pleading ignorance and inability. Stretching Delaying a task so that one person seems to b stucked in a particular task. Stalling Appearing to be more or less supportive publically while doing little or nothing privately. There are some examples of such behaviors in Avoiding blame Buffing A person tries to cover his back by projecting an image of competence and thoroughness. Playing safe It refers to taking responsibility of such projects which have high chances of success, have risky decisions approved by superiors, and in which one can take neutral position in conflicts. Justifying Developing explanation or apologizing for a task which has negative outcomes. Scapegoating One attempts to place blame on external factors for a negative outcome. Misrepresenting It involves manipulation of information by distortion, deception or selective presentation. There are some examples of such behaviors in Avoiding change Prevention A person tries to prevent a threatening change from occurring. Self-protection A person acts in such ways that he can protect his self-interest during change by guarding information or other resources. Limiting effects of political behavior The worldwide organizations confront the political behavior from the side of employees which sometimes act in good faith of organization but to the same extent it can damage the organizational goals and objectives, in case if the personal interests of a person or group of persons become a hurdle in the way of organizational performance. In response to such violation organizations should take possible measure such as There should be open flow of communication. The employees should be provided sufficient resources to fulfill their interests. The rules and regulations should be defined clearly. The information dissemination should be done such a manner that there should be no addition while passing from one level to another. The political norms should be removed. Hire those employees who reflect lower levels of political skills. Managing organizational politics effectively As politics are major part of an organization, as the organization consists of individuals and group of people. However, politics can be managed effectively if one follows these steps: One should learn the culture and the rules of the game for success in the organization. One should establish credibility and an overall positive impression in the eyes of others present in the organization. One should build a base of support by forming alliances, groups with key players. One should create and implement formal clear policies, procedures so there is no ambiguity. One should be open and vivid while dealing with employees regarding the decisions which influence them. One should be consistent with what he says and what he acts. One should use defensive behaviors to protect themselves against the dirty political players in the organization. Impression management (IM) As people have ongoing interest in how others perceived and evaluate them. For example, people in North America spend billions of dollars on diet, health, club membership, cosmetics and plastic surgery, all this is done to make them attractive to others.18 Being perceived positively by others should have benefits for people in organization. I may result into favorable evaluation, superior salary increase, and more rapid promotion. In political context, it might help to take distribution advantages in their favor. So, Impression management can be defined as The process by which individuals attempt to control the impression others form of them.19 Impression management techniques There are various techniques of impression management which can be opted by people to control their impression others have about them.20 These techniques are as under: Conformity It involves agreeing with someone elses opinion to gain his or her approval is a form of ingratiation. For example, a manager tells his boss, You are absolutely right on your plan to reorganize the office. Excuse Excuse refers to an explanation regarding an unpleasant event caused by a person in order to minimize the intensity of anger. It is a defensive IM technique. For example, a sales manager says to his boss, We were not able to put ad in the paper on time, but no one responds to those ads anyway. Apologies In apology one admits responsibility for an undesirable event and seeks to get pardon for the action, it is a defensive IM technique. For example, an employee says to his boss, I am sorry I made a mistake in report. Please forgive me. Self promotion It is a self-focused technique in which one person highlights his own work, best qualities, downplay others deficit and call attention to his own achievement. For example, an employee tells his boss, I accomplish a task in one week which someone else could not do in months. I am the best performer here. Flattery Flattery is referred as buttering, because while reflecting flattery a person give compliments about others proceeds in an effort to appear perceptive and likeable to him. For example, a new comer says to experienced, you handled that clients complaint so tactfully, I could never do that just you did. Favors It includes doing something nice for someone to gain his or her approval is a form of ingratiation. For example, a sales person says to client, I have got two tickets to theater tonight, take them. Consider it a thank you for taking your time. Association In association one person do more than required to show how dedicated and hard working he is in organization. For example, a person had performed overtime duty he conveyed that message to his supervisor so; he could know he was working hard. Enhancement A self-focused technique in which a person claims that his work done is more valuable than any of other members of organization. For example, a journalist tells his editor, My news on celebrity divorce story was a major boost in sales. Even though the story only made it to page 3 in the entertainment section. References Mintzberg, Power In and Around Organizations, p. 26. See also K. M. Kacmar and R. A. Baron, Organizational Politics: The State of the Field, Links to Related Processes, and an Agenda for Future Research, in G. R. Ferris (ed.), Research in Personnel and Human Resources Management, vol. 17 (Greenwich, CT: JAI Press, 1999), pp. 1-39. G. R. Ferris, D. C. Treadway, P. L. Perrewà ©, R. L. Brouer, C. Douglas, and S. Lux, Political Skill in Organizations,Journal of Management (June 2007),pp. 290-320; K. J.Harris, K. M. Kacmar, S. Zivnuska, and J. D. Shaw, The Impact of Political Skill on Impression Management Effectiveness, Journal of Applied Psychology 92, no. 1 (2007). A. Drory and T. Romm, The Definition of Organizational Politics: A Review, Human Relations (November 1990), pp. 1133-1154; and R. S. Cropanzano, K. M. Kacmar, and D. P. Bozeman, Organizational Politics, Justice, and Support: Their Differences and Similarities, in R. S. Cropanzano and K. M. Kacmar (eds.), Organizational Politics, Justice and Support: Managing Social Climate at Work (Westport, CT: Quorum Books, 1995), pp. 1-18; and G. R. Ferris and W. A. Hochwarter, Organizational Politics, in S. Zedeck (ed.), APA Handbook of Industrial and Organizational Psychology, vol. 3 (Washington, DC: American Psychological Association, 2011), pp. 435-459. D. A. Buchanan, You Stab My Back, Ill Stab Yours: Management Experience and Perceptions of Organization Political Behavior, British Journal of Management 19, no. 1 (2008), pp. 49-64. J. Pfeffer, Power: Why Some People Have It-And Others Dont (New York: Harper Collins, 2010). Drory and Romm, The Definition of Politics. C. R. Willness, P. Steel, and K. Lee, A Meta-Analysis of the Antecedents and Consequences of Workplace Sexual Harassment, Personnel Psychology 60 (2007), pp. 127-162. Source: Based on T. C. Krell, M. E. Mendenhall, and J. Sendry, Doing Research in the Conceptual Morass of Organizational Politics, paper presented at the Western Academy of Management Conference, Hollywood, CA, April 1987. G. R. Ferris, G. S. Russ, and P. M. Fandt, Politics in Organizations, in R. A. Giacalone and P. Rosenfeld (eds.), Impression Management in the Organization (Hillsdale, NJ: Lawrence Erlbaum, 1989), pp. 155-156; and W. E. OConnor and T. G. Morrison, A Comparison of Situational and Dispositional Predictors of Perceptions of Organizational Politics, Journal of Psychology (May 2001), pp. 301-312. Farrell and Petersen, Patterns of Political Behavior in Organizations, Academy of Management Review 7, no. 3 (1982), pp. 403-412. G. R. Ferris and K. M. Kacmar, Perceptions of Organizational Politics, Journal of Management (March 1992), pp. 93-116. Ferris, Russ, and Fandt, Politics in Organizations, p. 147; and J. M. L. Poon, Situational Antecedents and Outcomes of Organizational Politics Perceptions, Journal of Managerial Psychology 18, no. 2 (2003), pp. 138-155. W. A. Hochwarter, C. Kiewitz, S. L. Castro, P. L. Perrewe, and G. R. Ferris, Positive Affectivity and Collective Efficacy as Moderators of the Relationship Between Perceived Politics and Job Satisfaction, Journal of Applied Social Psychology (May 2003). G. R. Ferris, D. D. Frink, M. C. Galang, J. Zhou, K. M. Kacmar, and J. L. Howard, Perceptions of Organizational Politics: Prediction, Stress-Related Implications, and Outcomes, Human Relations (February 1996), pp. 233-266; and E. Vigoda, Stress-Related Aftermaths to Workplace Politics: The Relationships Among Politics, Job Distress, and Aggressive Behavior in Organizations, Journal of Organizational Behavior (August 2002), pp. 571-591. S. Aryee, Z. Chen, and P. S. Budhwar, Exchange Fairness and Employee Performance: An Examination of the Relationship Between Organizational Politics and Procedural Justice, Organizational Behavior Human Decision Processes (May 2004), pp. 1-14. C. Kiewitz, W. A. Hochwarter, G. R. Ferris, and S. L. Castro,The Role of Psychological Climate in Neutralizing the Effects of Organizational Politics on Work Outcomes, Journal of Applied Social Psychology (June 2002), pp. 1189-1207. B. E. Ashforth and R. T. Lee, Defensive Behavior in Organizations: A Preliminary Model, Human Relations (July 1990), pp. 621-648. M. R. Leary and R. M. Kowalski, Impression Management: A Literature Review and Two-Component Model, Psychological Bulletin (January 1990), pp. 34-47. W. L. Gardner and M. J. Martinko, Impression Management in Organizations, Journal of Management (June 1988), pp. 321-338; M. C. Bolino and W. H. Turnley, More Than One Way to Make an Impression: Exploring Profiles of Impression Management, Journal of Management 29, no. 2 (2003), pp. 141-160; S. Zivnuska, K. M. Kacmar, L. A. Witt, D. S. Carlson, and V. K. Bratton, Interactive Effects of Impression Management and Organizational Politics on Job Performance, Journal of Organizational Behavior (August 2004), pp. 627-640; and M. C. Bolino, K. M. Kacmar, W. H. Turnley, and J. B. Gilstrap, A Multi-Level Review of Impression Management Motives and Behaviors, Journal of Management 34, no. 6 (2008), pp. 1080-1109. B. R. Schlenker, Impression Management s(Monterey, CA: Brooks/Cole, 1980); M. C. Bolino, K. M. Kacmar, W. H. Turnley, and J. B. Gilstrap, A Multi-Level Review of Impression Management Motives and Behaviors, Journal of Management 34, no. 6 (2008), pp. 1080-1109; and R. B. Cialdini, Indirect Tactics of Image Management Beyond Basking, in R. A. Giacalone and P. Rosenfeld (eds.), Impression Management in the Organization (Hillsdale, NJ: Lawrence Erlbaum, 1989), pp. 45-71.

Agatha Christie’s “The idol house of Astarte” Essay

The story the â€Å"Idol House of Astarte† is just one of the stories that appeared in Dame Agatha Christie’s â€Å"The Thirteen Problems† (1932, 2000)(also published as â€Å"The Tuesday Club Murders. â€Å") Ms. Jane Marple, one of Christie’s most beloved characters is the village old maid who has a knack for observing parallels between situations (Bargainnier 42). She along with her playwright nephew Raymond West, the artist Joyce Lempriere, Scotland Yard’s Sir Henry Clithering, the elderly clergyman Dr. Pender and the solicitor Mr. Petherick are featured telling accounts of puzzling situations and crimes they have experienced (Christie 1). To each story, the storyteller withholds the solution to the how the crime was solved and how it was committed. The challenge to the listeners is to guess the answers to the question of how the murders or crimes were committed and by whom. (2) â€Å"The Idol House of Astarte† (15-30) is the story shared by Dr. Pender. In it, he recalls the experience he had and the murder he witnessed at a party at the house of a Sir Richard Haydon on Dartmoor. The house itself, while unremarkable in appearance, was said to be built on a location full of history including that of the Neolithic hut dwellers, the Druids, Romans and early Phoenicians. On the grounds is a peculiar piece of land with a dense crop of trees, which Haydon thought to be the sacred grove of a Phoenician goddess of the moon, Astarte. The sight and eerie atmosphere of the grove inspired one of the guests, an actress called Diana Ashley to suggest a Fancy dress or costume party for that evening. In the course of the evening, the house party dressed in their costumes once again venture to the grove and encounter a surprise in the form of a fully costumed Diana Ashley who was acting the part of a priestess at the goddess temple. In excitement, Sir Richard Haydon attempts to approach Diana, stumbles and then falls forward. When he doesn’t get up, his cousin Elliot investigates what happened and announces that Richard was dead apparently from a stab wound. Despite searching for a weapon or possible reason for Haydon’s death, none could be found. The next day, Elliot Haydon was also found stabbed but alive in the same position as Richard was. The difference was that a dagger was left in the wound. According to him, something supernatural happened in the grove and that his wound was inflicted by something he could not explain. The story goes on to detail the many solutions Ms. Marple’s party offers up for the deaths. Most of which considered the supernatural and superhuman. Of them all, only the lawyer Mr. Petherick and Ms. Marple offered solutions that completely discounted the supernatural. In the end, it was Ms. Marple who came upon the correct answer to Dr. Pender’s mystery. There were many factors that made the story mystical. The story itself carries many suggestions of supernatural things such as magic and ghosts. Much mention has also been given to the â€Å"atmosphere† of the grove, which was often described as spooky or creepy. There was also of course the setting, which was in a clearing in a dense crop of trees and the time at which the murder happened which was a night with a rising moon (20). There was also the eerie dark punctuated with whispers and sighs, and the small summerhouse or â€Å"temple† at the clearing itself where a stone statue of the goddess Astarte was enshrined. The atmosphere of evil and foreboding enveloped the characters in the house party. Ms.Marple’s group was also invariably influenced by the eerie nature of the story and Dr. Pender’s description of how he felt on seeing the grove as well as the events as they unfolded. I think this very â€Å"atmosphere† itself plus the mere fact that a clergyman such as Dr. Pender could be affected by such â€Å"evil† atmosphere, hindered the characters in the house party including some members of Ms. Marple’s group in their objective and sober assessment of the facts. In fact, I believe Ms. Marple stated it best when she said: I don’t see how anyone else could have done it†¦I mean if, as Mr. Petherick so wisely says, one looks at the facts and disregards all that atmosphere of heathen goddesses which I don’t think is very nice. (Christie 29) I also found it interesting that the more â€Å"artistic† in Ms. Marple’s group such as Raymond West and Joyce Lempriere, were more susceptible to thinking up solutions of a supernatural nature such as seances and superhuman strength used in throwing a javelin. Sir Henry Clithering, while not completely taken in by the supernatural, did consider the possibility of murder done by a professional and exceptionally talented dagger of knife thrower. (27) Owing to his profession as a solicitor, Mr. Petherick was more trained to evaluate facts without the influence of atmosphere. Ms. Marple, besides being a â€Å"matter-of-fact† sort of person, has the wealth of her experience and observations of living in a village that she can build her judgment on. Profession and experience seem to be used as indicators and measures of each character’s objectivity and imagination. Both Ms. Christie and the character Dr. Pender are wonderful storytellers. The description of the grove and the feelings it created in those who visited it shows just how important atmosphere can be not only in a story (Bargainnier 28) but also in influencing how people think, feel, and view things. Works Cited Bargainnier, Earl F. The Gentle Art of Murder: The Detective Fiction of Agatha Christie. Bowling Green, OH: Bowling Green State University Popular Press, 1980. Questia. 4 Nov. 2007 . Christie, Agatha. â€Å"The Idol House of Astarte. † The Thirteen Problems. New York: Signet, 2000. 15-30.

Colonial History of Mali

Colonial History of: Mali Mali started out as part of The Ghana Empire which was dominated by the Soninke people up until 1203 when it was taken over by an anti-Muslim Sosso Kingdom. The Mali Kingdom took over from 1230 – 1600 this empire had a lot of influence over West Africa; it began to weaken in the 14th century and was challenged by the Songhai Empire. The two empires ruled over Mali until they were defeated by the Moroccan Saadi Dynasty who controlled parts of Mali until they were challenged by other Kingdoms and this led to Mali falling under many different Kingdoms until it was colonized by the French in 1892.France had taken over most of West Africa at the time and it named the territory taken over in Mali as the French Sudan and appointed civilian governors even though they did appoint a civilian as governor there was still a lot of opposition to French rule. By 1958 French Sudan was renamed to the Sudanese Republic and obtained complete internal autonomy and joined the French Community which meant it supplied labor to French colonies and was given full assistance by France.In 1959 Sudanese Republic was renamed again to the Federation of Mali, one year later the France to let the Federation of Mali to be fully independent, and on 20th of June 1960 the Federation of Mali became fully independent and Modibo Keita was named its first President. After Keita was made President he wanted to move to a more socialist policy which led him to withdraw from the French Community and he decided to have close ties to the Eastern Bloc.In 1967 Mali was forced to rejoin the French Community due to its deteriorating economy. A bloodless coup in 1978 saw a group of young officers set up a 14-member Military Committee for National Liberation (CLMN). This committee tried to improve the economic situation in the country but faced internal political struggles; these struggles have continued over the years and are one of the main issues which Mali faces as a country and has led to a number of insurgencies taking place.

Key Issues For Foreign Bank In Native Country Finance Essay - Free Essay Example

Sample details Pages: 3 Words: 907 Downloads: 3 Date added: 2017/06/26 Category Finance Essay Type Narrative essay Did you like this example? To understand the efficiency obtaining is a key issue for a foreign bank to break through a native country eventually. This section discusses the efficiency between home bank and exterior bank as well as the differentiation between developed and developing countries. European banking plays an important role in the world economy today. Thus, we will use some academic finance journals as information source to summarise some empirical results as well as use European banking as an example to make comparison with the other countries. George Clarks and others (2003) indicate the four main reasons that we should focus on the foreign bank entry. (i) Generally speaking, foreign are attracted to other nations with fewer restriction on entry and bank activity. (ii) The larger banks are more likely to expand abroad and have clients that need banking services overseas. (iii) Foreign banks seem to put forth competitive pressure on local bank, forcing them to low their cost o nce they arrive the expand nation. 4. Regulative restrictions and earn possibilities may affect the style of foreign bank entry and organization. According to Philip M., Yener A. and Edward Gardener (1996), the European financial service industry has developed rapidly and competition level has increased in recent years. The chief components of impact on the effects of single financial market closely connect to competition, cost efficiency and changes in market structure. European Market: Based on the Basel Accord development (from ÃÆ' ¢Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒâ€šÃ‚  to ÃÆ' ¢Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒâ€šÃ‚ ¢): Basel ÃÆ' ¢Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒâ€šÃ‚  mainly focus on credit risk; Basel ÃÆ' ¢Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒâ€šÃ‚ ¡ concludes three pillars: First pillar deals with maintenance of regulatory capital calculated by three main components, credit risk, operational risk and market risk; Second pillar provides much improvement of Basel ÃÆ' ¢Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒâ€šÃ‚  , it provides a framework t o deal with other risks, such as systemic risk, pension risk and strategic risk, which combines under the residual risk; Basel ÃÆ' ¢Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒâ€šÃ‚ ¢ includes five main changes: (i) The quality, consistency, and transparency of the capital base will be raised. (ii) The risk coverage of the capital framework will be strengthened. (iii) The Committee will introduce a leverage ratio as a supplementary measure to the BaselÃÆ' ¢Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒâ€šÃ‚ ¡ risk-based framework. (iv) The Committee is introducing a series of measures to promote the build up of capital buffers in good times that can be drawn upon in periods of stress. (v) The Committee also is reviewing the need for additional capital, liquidity or other supervisory measures to reduce the externalities created by systemically important institutions. The great changes are believed to build up a standard approach for the capital requirements. Jacob A. (2004) has pointed out the establishment of Economic and Moneta ry Union (EMU) and the creation of euro capital market enhanced the progress of the competition in European banking industry. The differences between nations are important, such as size difference between banks, difference between banking categories and movement of efficiency over time. X-efficiency, is the ability to minimize cost, is considered as the most important type of efficiency. It is generally measured as its cost level compared with the best-practice bank which has the similar size. From 1990 to 1997, most European countries have substantially reduced their inefficiencies and cost levels in recent years than the earlier 1990s. Foreign bank versus Domestic bank: George R. and others (2006) conduct a survey from 35 developing economies with data on the degree of external bank has been involved among the countries. The empirical results are: Business managers rate high interest rate and access to a long term loan as lesser barriers to their operations and growth in nations having higher external participation. The coefficient on external bank participation is statistically considerable at a 5 percent level or even better. However, overseas bank participation is not important correlated with business perceptions relating access to non-bank equity. The correlation between external participation and proportion of business managers connect to the banking industry is real. The statistical significance of the coefficients on most variables is not sensitive to the variable for overseas bank participation. There is not clear information when make comparisons with small and medium corporations with massive corporations. The coefficients for small and medium companies are not important relating to interest rates and access to long term credit. The coefficient estimates show that large corporations seem to benefit more than small one from overseas participation in the banking sector. The differences are not statistically important. Developed bank versus Developing bank: Patricia H. (2004) conducts an empirical analysis by using 47 developed and developing nations as a panel set. The empirical results are: The higher knowledge stock of the nation has the higher innovation rate. The high technology imports form developed countries have a positive effect on local innovation. Human capital stock and RD expenditure have a positive and statistically considerable effect on local innovation. The infrastructure measure on electricity production is positive and momentous in all regressions. Local innovation seems to give response to the lever of IPR protection. The variable display positive coefficients in all regressions. FDI inflows are not important in the OLS regressions. To sum up, foreign entry will be wide enough to put forth competing pressure on native banks. Large foreign economies might force native banks to find another market nook that might benefit for small borrowers in the me dium term. Innovation can be explained in developing economies by market size and infrastructure; while RD expenditures, human capital and high-technology import seem to have a greater influence on developed economies. Overseas bank seem to be more interested in chasing native lending opportunities in developing countries than in developed countries. Don’t waste time! Our writers will create an original "Key Issues For Foreign Bank In Native Country Finance Essay" essay for you Create order