Change In The Organization Weatherford International Ltd Management Essay

Change In The Organization Weatherford International Ltd Management Essay This study is focused on the topic management of change in organization. The basic learning outcome of this assignment is related to understand the change management process in organization. For this assignment the company chosen is Weatherford International Ltd. First of all the background of change that exists in todays economies and organisations is discussed. Then the key strengths and weaknesses of autocratic organisation are given in bullet points. After that the last part of first task, organisational development and its alternative forms are discussed in detail. Then the key stakeholders are identified from the Weatherford International and some of the tools and techniques to involve them in the change management process are suggested. Under the change management model topic, comparison of three major change management models is given, and then Kotters change management was suggested and discussed in detail for the implementation of on-going change in Weatherford Internationa l. The last section of this assignment is for the conclusion and some of the recommendations for chosen company. Background of change From the last decade, the world is changing dramatically than ever before. A chain of interrelated national trades in which businesses compete with each other on a really global basis. Maximum organizations are experiencing considerable changes in the manner they are managed do trading. These changes are influenced by many factors such as the degree of globalisation, changing technology, political, social economic changes at numerous different stages. These changes are happening speedily, unwillingly companies would never be the similar in structure or practice as a consequence. The continuous advancement in technology such as internet, communications technologies has made the world as a global village. Because of the several communication and collaboration tools, concept of virtual organization has emerged and physical presence is getting less important. The other influencing factor is the changing role of international bodies like world trade organization and international monet ary fund (IMF). The IMF has forced many countries to go through economic reforms. Because of the increasing globalization, many multinational companies are choosing the strategic business options of mergers and acquisitions, strategic alliances which have changed the way of doing businesses. The chosen organization for this study Weatherford International has also been gone through many mergers and acquisitions activities over last two decades. Few other change factors are like change in the consumers lifestyles and taste, competitive pressure to cut costs through economies of scale, use of outsourcing strategies for operational activities to low cost countries etc. Bureaucratic Organisation Max Weber first used the word bureaucracy. According to him, bureaucratic organisation is an official business with standardized set of rules and procedures which everyone within the organisation should follow. Though Weber had advocated this form of organisation structure, there are some disadvantages as well. Some of the strengths and weaknesses of bureaucratic organisation are discussed below. Strengths Bureaucratic organisation has got more control and monitoring through centralization system of decision making. Decision making is easy process by top management As processes are standardized, everyone has to follow the procedures and rules. Defined hierarchy of organization structure and clear rules and norms Weaknesses Due to its rigid structure, lot of chance of inefficiencies. Lack of innovation and flexibility Lesser employee participation and involvement Poor channel of communication and it is time consuming Delaying change or adaption Organization Development Organization Development (OD) theoretically defined as the planned efforts to bring change in organization to control and manage processes and people more effectively. It is also defined by another theorist as the fundamental change to fix the problems or improving the process or procedure. This OD program is specific for organization such as one change which is more relevant for one company and it is totally irrelevant for the other. Thus, this OD program is specifically applicable for particular organization. These are few objectivise of OD programs which shows that these program vary according to specific situation, but the objective of OD program remain same consistent. The alternative forms of organisational development are discussed below Quality development The first form of organisational development is through continuous quality improvements. The quality development can be achieved through various quality management systems like Total Quality Management, Six Sigma, Kizen, Quality Circles. This form focuses on four areas including customer, employee involvement, result based decision making, and integrated quality improvements. Now a day many of the organisations are adopting this form of organisational development. Technological development The increasing use of Internet, electronic mail Web conferencing tools have formed the capability of working together through time space within among the organizations. The technological development has renovated the organizational atmosphere and also the arena of Organization Development. At present there are 3 generally known technology application in organisational development: 1. Measurable, database valuation tools, like surveys feedback from members of staff. 2. Communications, collaborations and teamwork, which also include information sharing, document management. 3. Development of employees management through online training. OD specialists using technology more and more in their everyday work. Structural development This form of organizational development include variations in how the whole work of an organisation is distributed into different parts, reporting structure, means of control, the structure and arrangement of tools individuals, work flow measures etc. The structural development also includes removing or adding layer of hierarchy in the organization, restructuring through downsizing or redundancy, centralization or decentralization. This form redesigns the structures of organization and creates new relationships which results into improved performances. In order to cope with the changes in external environments, organization has to respond with making appropriate structural changes. The various organisational development interventions are as follows- Survey feedback: Through this activity, managers can get the important information and data about the various aspects related to employees. The data and information received through this form on employees attitude, their salary/wages level, working hours and conditions and also the relations with the employees is provided to the upper management. The top executives analyse the data and catch out the problems, assess the outcomes develop the alternatives to solve the problem. Process Consultation: Under this organizational development activity the process consultant meets various work teams and department members, interacts with them and detects the problem solving ways. The process consultant then provides the team with the data, information gathered via interactions, coaching, individual counselling and observations for shaping the behaviour of team members. Setting Goals Planning: Goals and plans are set by every department within an organization for productivity profitability. They send these goals and plans to the upper level. The top management then send them back to each division for further modification and after some amendments the goals for the whole organization are thus set. Managerial grid: The managerial grid classifies a variety of management conduct depending upon the various means that how operations oriented workforce oriented statuses interrelate with each other. These OD intervention emphases on the observations of behaviour in trainings explicitly associated with work. The training participants are motivated assisted to evaluate their own decision-making style. Team building- This organization development intervention consists of an application of several methods of Sensitivity training given on the job to the real working teams in different divisions within the organisation. This training is formulated to develop the skill of workers to work together as team. The organisational development activities discussed above helps in making the change happen smoothly through one of the three organisational development forms (Quality, Technological and structural). My Chosen Company- Weatherford International Ltd Weatherford International Ltd is the public listed company having products and services related to natural gas wells and crude oil processing. It is a multinational company having presence in above 100 countries and more than 43000 workers throughout the Globe. From last twenty years the company has been acquiring many companies. It also had couple of mergers such as Enterra in 1995 and Energy Ventures in 1998. External Drivers of change in Weatherford International Merger and acquisition of so many organizations in past few years forces the company to pursue a change in operations. To follow the financial regulations of SOX, this automation process will provide sufficient security to its information system. To have better customer management and supplier management system the change is needed. Internal drivers of change in Weatherford International Staff utilization is leading Weatherford to change its internal policies. The company was lacking a system for control and status updates. They required an automated solution implementation of an agreement procedure development initiative to back up business process re-engineering develop the working atmosphere. (The Corptax, 2008). Stakeholders The word stakeholder means anyone that has interest in the outcome of a programme/project. A legal, moral or economic stake/interest in an activity. Some stakeholders have more interest than others, but that is also changing. Major stakeholders in Weatherford International Top management- This includes the board of directors Employees: One of the key stakeholders of Weatherford International is employees. This includes the senior managers at corporate offices and the operating staff. Customers: The customers are the key stakeholder group in Weatherford who will affect with the change process. Suppliers: Suppliers are also one of the key stakeholders as they play major role in effective utilisation of resources. Governments- Local authorities and national, international governments Investors- Small and large shareholders General public Environmentalists Among these classified stakeholders the most powerful and influential stakeholder is employees. Among employees there are categories in which, Senior Management at corporate office are most powerful but less impacted by the change. On the other hand the employees of regional division are less powerful and highly impacted by the change. To build the good productive working relationships with the stakeholders, the company first needs to understand the degree of interests and powers of each stakeholder. This can be done by using a stakeholders mapping tool. Secondly to establish a simple and effective communication system by keeping the message and information as simple and short as possible to avoid overload. Show trust and faith in all stakeholder groups. Listen to all the stakeholders carefully. Consulting with the stakeholders is another method by which management can gather information from others by discussing with others about what action to take in particular circumstances. It means finding out their views and opinions before deciding what to do. Effective management of stakeholder relations during a change process calls for early, clear, and consistent communications. All the stakeholders must be properly informed of potential impacts and benefits of the developments and get their engagement in various projects. To the degree possible, try to provide information on the purpose, timing, and nature of the changes proposed; the anticipated environmental and socioeconomic consequences of relevance to specific stakeholder groups; and the ways in which different stakeholder groups can participate in planning, implementation, and monitoring. The actual decision-making process needs to be made more participatory to ensure that all decisions regarding the development are widely supported and understood. Consultation can help the management to identify the priorities which stakeholders have. This can benefit management as it can highlight the factors which are likely to be most important to the stakeholders and to which management should pay most attention. Change management models There are many change models researched and documented by different scholars. For this assignment three change models are discussed including Kanters model, Kotters 8 step transformation model and Lucckes change model. The following comparison of all three models is taken form the Todnem research study. Source: Todnem research study Kanter defines the first step as the analysis of organization and needs for change, Kotters defined as the developing the urgency for change and lastly Luccke defined the identification of business problems. While, these steps are common in among all these three theoretical models shown in above diagram such as creating vision for change, leadership and create policy. Also, According to the research of Todnem organizational change management process is basically divided into following major phase of plan, action, implementation and measure change performance. John Kotters 8 step change model According to Kotters model, the following steps describe the change implementation procedure. Kotters 8 step Change model, Source: www.Leadershiphub.com Business Process re-engineering- This change model was first invented by the duo Michael Hammer and James Champy in 1990. According to them business process re-engineering is not for the smaller changes, rather it is for the radical change. It helps to dramatically improve the different business processes within the organisation such as customer service, reduce operational costs. The role of information technology is vital in implementation of BPR change model. The other change models include- ADKAR model for change- This model depends upon awareness, desire, knowledge, ability and reinforcement. Kubler Ross change model On-going changes in Weatherford International Changes in the business process operations Automation and integration of different processes and workflows Changes in organisations structure due to on-going merger and acquisition activities Implementation of Change Model for on-going change in Weatherford International Ltd Weatherford International Ltd can use either business process re-engineering change model or the Kotters 8 step model to implement on-going changes in the organisation. My suggestion is to implement the Kotters change model which is discussed in detail as below. Step #1: Create the sense of Urgency The step of Kotters model suggests creating sense of urgency among the stakeholders. Unless there is a genuine concern, and the purpose well perceived, the implementation process may not have great implications and the outcome would not match the desired expectations. Primarily, the stakeholders who have greater influence on the business operations, for example, some key employee of Weatherford International Ltd , and in general the rest of them should be motivated, encouraged to participate. Step # 2: Form a Powerful Coalition by identifying key power points. Every organisation has a common culture and values which is shared by almost all the stakeholders including the outsiders such as suppliers and even customers in certain extent. Within this board organisational cultural frame work, there exists sub culture of group of same standing or position. For example: a team of 15 members with its line managers. The line manager can identify a key employee within the team who are influential and have a certain commanding. The line manager can include these members of team and form a strong coalition to influence the others team members. Naturally such a formation would compel others in the team to oblige. Step # 3: Creation of Vision for the Change implementation As much its a fact that plans well drawn help in proper and systematic execution of a project, so is the psychological factor involved in the execution. Every person requires a sense of purpose and share a vision for self- motivation. Change management would not be effective unless a clear vision is shared among the participants. The vision should be associated with better results, improvement in the present system and the benefits that can occur to the participants, and in general. The leaders should consistently engage in sharing the vision, reinstating it through various means. Training can be provided regularly, update ad sharing of vital information on new developments , all these have to be undertaken quite effectively to see desired results. Step # 4: Communicating the Vision through effective channels to the stakeholders Once the vision is identified, it should be clear communicated to the stakeholders of Weatherford International Ltd. The vision should be easily comprehendible even by ordinary person of understanding. It should be able to be broken down or give the clear direction for future action plan, the expectations of the outcome. Training can be provided regularly, update ad sharing of vital information on new developments , all these have to be undertaken quite effectively to see desired results. Ineffective communication channel or vague message would back fire the entire effort, and lead to huge wastage of resources. Step # 5: Remove Obstacles Obstacles are evident to emerge very often, no matter how well the change implementation process in designed to its core. Obstacles should always serve an opportunity to learn more about the challenges of the change process. It would that the organisation remain focused on the design, make appropriate changes to the action plans without losing the focus on the pre determined goals. A proper framework for addressing problems should be setup, each one participating in the system should clearly understand the hierarchy of authority , roles and responsibilities , so that , in the event of unexpected occurrence they should easily be able to resolve or approach the designated forum. Obstacles can be due to changes in the internal factors or external factors influencing the Weatherford International Ltds business operations and organisation. Step # 6: Create Short-term Wins In the change process management, there are objectives which are short term and long term. Weatherford International Ltd should indentify short term tasks, which can be achieved in a shorter duration. When undertaking a radical change process, it always advisable to create short term wins. The wins situation should be communicated with all the stakeholders the small victories would reinstate the faith of the stakeholders in the change system and motivate them in participating actively. This said the system should have a proper framework for to compensate and reward the participants who have actively got involved and have achieved the desired results to promote the change management in the direction. The change management along with proper implementation procedure would also require that employees are recognized within the organisation and accordingly rewarded. As a result, a good performance and sincere indulgence would be associated with personal benefits. Step # 6: Building on the Change Change is not a onetime process, but a continuous effort starting from the day the organisation mandates it until the environment surrounding the organisation is in a state of rest, which is impossible given the dynamics of the factors that influence Weatherford International Ltds business operations. Change process is a continuous effort, evaluate the short terms wins and leverage on it for the next level. Success got at the initial stage should not be considered as the final victory. Step # 6: Anchor the Changes in Corporate Culture In a long term, change management should be imbibed into the main stream organisational culture. In a long and continuous effort of change management, the process should eventually be observed into the main stream culture of the organisation. For changes to be a part and parcel of the organisational culture, the leaders should regularly alert and create awareness about the existence of the change management that is deeply rooted in every organisational activity. The perception of change management should become an inseparable part of the organisational culture in a long run; this in turn would create a platform and facilitate any major undertaking in the future. Expected Improvement after successful implementation of change If the Kotters change model is implemented successfully in the Weatherford International Ltd for the on-going change, there would be some long term benefits. The very first improvement would be in the overall business operations of Weatherford including operational efficiencies, service quality, supply chain management, reduction in wastages and cost of production and thus increase in profits. The other major improvement would be in changing companys strategic vision. The company would have clear long term vision and direction. This would boost the confidence of all stakeholders. The last but most important improvement after the change programme would be the cultural change within the organisation. Basic values and ethics in business operations shaped alongside throughout the change process would be absorbed into the organisational culture. It would serve as motivation and sense of purpose for the employees and other stakeholders to achieve and contribute to the organisational goals. Conclusion Because of the mergers, acquisitions, globalisation, revolutions in information technologies, the world is changing so rapidly. Hence in order to stay competitive, every organisation has to adapt some sort of on-going change programme. It can be concluded from this study that, because of the vibrant nature of todays businesses and world economies, it is imperative for every organisation to implement one of the change models discussed for on-going changes. If the Weatherford International, successfully implements the change programme through Kotters change model, company would receive far more long term benefits and competitive advantages over its competitors. There are some barriers to change such as resistance to change by the stakeholders, not having clear vision for change. So in order to make it happen, company needs to engage its stakeholders through stakeholder mapping process. Stakeholder engagement is a challenge and a complex and time consuming process. Working with and lear ning from other partners and stakeholders can only serve to maximise impact, reduce fatigue and reduce cost. The company would also use the various organisational development forms to make the change process even easier. Recommendations Leadership; Leadership style shows the way the organisation will be managed. The multinational corporation like Weatherford International Ltd, the company leadership should develop a strong vision and positive attitude and culture within the organisation. Empowerment and Delegation- This involves the giving of power to your team members. At Weatherford International teams needed to be empowered by letting them use their own initiatives at tackling tasks that have been awarded to them. This form an effective global structure as it causes all team members to feel very well a part of the decision making process. Effective communication As the company operations are spread over 100 countries, they should develop a strong communication system across whole organisation. Electronic communication and collaboration technology can affect both task and social dynamics positively and negatively. The company need to opt for the latest gadget on the market to enable its team and network perform to standard or above.

Hobson’s Choice Summary Essay

The class divisions of the 1880s are clear to see in the little scene when Alice, Vickey and Hobson find out Maggie intends to marry Willie. Alice says, ‘what you do touches us’ and this is true, as Maggie’s marriage to a man from a lower social class would be seen by many as a disgrace. Hobson says that Willie’s father was a ‘work-house brat’ and that he would be the laughing stock of Salford if he allowed Maggie to marry one of his workmen. At this stage, Maggie does not seem to be thinking about starting up in business on her own, merely working in the shop as before but being paid for it. Willie seems to be a down-trodden, easily intimidated man. He has no doubt been bullied by Hobson for years. Hobson however misunderstands Willie when he takes his belt to him as this physical insult changes Willie immediately who is outrage and, in his temper, kisses Maggie. Hobson is amazed and doesn’t know how to respond. ACT TWO Scene One Act Two opens a month after Maggie and Willie have left Hobson’s. The business is obviously in trouble and Alice and Vickey are finding it hard to manage things without Maggie. We learn that they have lost a lot of their high-class trade. Alice doesn’t know how to organise the work in the workshop and tells Tubby to carry on making clogs. Hobson is spending more of his time in the Moonraker’s. Alice is finding it difficult to balance the books. This brief scene serves to prepare us for the decline of Henry Hobson and the rise of Willie Mossop. Vickey and Alice wish they were married and their plans will soon be furthered as a result of their father’s excessive drinking. Scene Two Maggie announces that she has heard of the relationship between Vickey and Freddy. She sends Freddy to fetch Albert Prosser. Freddy explains that Hobson has fallen down their cellar trap and is unhurt but sound asleep on some bags. Notice how quickly Maggie thinks. She has just met Freddy outside Hobson’s shop and from what he has told her, immediately works out a plan to get money out of Hobson for the weddings of her sisters. Scene Three We learn in this scene that Willie now has his own shop. Maggie is obviously proud of the progress they have made in such a short time. She is determined that Willie will be treated with respect as part of the family and makes her sisters kiss him as a token of their acceptance of the situation. Maggie is also quick to cut Alice down to size when Alice says, scornfully, ‘Willie Mossop was our boot hand’. She is quick to point out that Willie is master of his own business and her sisters are just shop assistants. Maggie announces that she and Willie will be married at one o’clock at St. Philip’s church. She buys a brass ring to use as a wedding ring. This shows that Maggie has her feet firmly on the ground as she is not prepared to waste money on sentiment when they need all the money they can to get their business off the ground. Willie and Maggie use a hand-cart to take away some of Hobson’s old and unused furniture. Alice and Vickey are appalled that Maggie is willing to live in two cellars using secondhand furniture. Alice and Vickey clearly want to start married life with everything new and this shows the difference between them and Maggie. Vickey’s selfish streak is apparent when she sees the two broken chairs Will is carrying out and immediately resents Maggie having them. Maggie has always been confident and in this scene is even more sure of herself. Her language is the language of command. When Alice tries to tell her that she doesn’t know what she is aiming at, Maggie replies swiftly, ‘The difference between us is that I do. I always did’. There are also signs in this scene that Willie is growing in confidence from the timid, frightened, dirty workman who first appeared.

Comparative Analysis of Islamic and Conventional Bank Risk Essay

The decline of the religion has been attributed into modern times with a materialistic culture by the popular wisdom of today, the understanding of religion has embedded this view, as nature having only spiritual limits, and the worldly well being of an individual is very detached in this relation. However, this understanding of Islam religion has been misguided by many of among us in the past, as well as in the present. A critical role has been played by every religion regarding the guidance to survive in a society communally, and in the characterization of different markets of that time. In the religious regards, equal distribution of wealth and debt annulment was preached and emphasized by every religion in the past. The enforcement of the debt bond has been strongly rejected by all the beliefs and the concept of canceling the debt have been upheld by them. In the past, in order to satisfy and fulfill the financial needs of devout and pious Muslims, a concept of money depository was introduced in the Islamic civilization, which has now become a growing phenomenon of the world, that is, around 1. 6 billion Muslims in the world. The macro-economic properties of banking institution have been studies by many economists with relation to an ideal and isolated Islamic economy framework. In modern days, the working of this pioneering financial system is going on very effectively in various parts of the world. In many developed and under-developed countries, the other conventional banking systems are having this unique financing system besides them in every sector of the economy. In this regard, the comparative analysis has been done in this study, which will try to differentiate the Islamic banking system with the Conventional ones. In this study, we will try to understand and clarify the demarcation between the Islamic and Conventional Banking and the risks that are borne by these methods of banking. A financial intermediary having the aims and objectives related to the principles of Islamic law or ‘Shariah’ may be defined as an Islamic Banking System. Consequently, the zero-interest activities and operations are the key features of this distinctive banking system. However, eliminating the transactions based on interest is not the only objective of Islamic banking. The abolishment of all kinds of exploitation is also another aspect of Islamic banking system. In result, a balanced and unbiased social order is established by the system in this regard. Only the role of financier is not played by an Islamic bank. It also works as a partner in the business of an individual. Due to this, the risk between the capital owner and the entrepreneurs is involved by this system. However, the positive result of the collective efforts is also shared by the Islamic banking. Thus, the other conventional banking and interest-based system differs from the Islamic banking, as only the entrepreneur or the owner of the capital bears the risk in the conventional banking, and vice versa. However, the individual and bank shares the abovementioned with each other, which provides the entrepreneur to develop as a whole. In other way, participatory banking name can be given to the Islamic banking in this regard. In the Islamic economics, zero return on capital is not meant by the eliminating process of the interest in this unique banking system, as the pre-determination of a fixed return is forbidden for a certain amount of production in the Islamic laws. The equity based investment principle is followed by the Islamic banks. The contraction of the resources based on deals relating to the sharing of risks, and the ventures of capital is also proposed by the Islamic banking. It has been noted by the economists that economic growth and development of an individual becomes applicable and easy with the vital role that is played by the Islamic banks around the world. We can say that a relationship between finance, commerce, and industry is tried and developed by this exclusive banking system, which differs from the other conventional banking due to these characteristics of its system. The Islamic banking plays its role as an equity-based system, where the pre-determined interest rate is excluded, and the nominal value of deposits is not guaranteed. In result, changing values of the share deposits absorbs the shock to asset position immediately. Therefore, in such system, the assets and liabilities of bank will carry the same real value at all the points. However, in the more traditional and conventional banking system, a diversion can be caused between the real assets and liabilities by such shocks in the process of fixed nominal value of deposits. Therefore, the abovementioned features of this Islamic banking differs it from the traditional and conventional banking system, and so, various levels of risks are borne by these systems. Nowadays, many countries are trying to examine the possibilities of the introduction of an interest-free banking system based on the Islamic laws and principles. It has also been argued and discussed that if the Islamic financial system will be established in the various countries, it will be feasible, but also profitable for the individuals, as well as, the companies as a whole. These days, the truth of interest as an unbearable burden is being realized by the Western countries, as well as, the developing countries around the world. In this regard, all the interests have been waived by the Canada. A similar move has been made by the Australia. The suggestion of waiving off the 30 to 35% of the present interests of the debt has been officially given by the President of France. Therefore, it may be generalized that Islamic Banking and Financing System is a unique and distinctive system, which differs from the conventional banking systems around the world. In order to make a more detailed comparative view of the working and risks borne by the Islamic and Conventional Banking Systems, we will try to analyze with the help of data that represents the comparison between these two financial systems that are applied and practiced around the world. There are some different and diverse characteristics of the abovementioned two banking systems, which should be discussed in order to clarify the comparison between them. In the Islamic Financing system, the number of customers is less than the Marketing-based financing system. The ownership of the Islamic Banking is usually taken by the local or foreign individuals. However, only the local shareholders enjoy the ownership in the conventional banking system. In the Islamic banking, the integration of different activities is very high as compared to the traditional banking system. Lastly, the Islamic financing system has the high intensity of managing and bearing the risk internally, as well as externally. However, the risk is managed and borne by the Marketing-based financing system less internally and externally. Risk sharing is closely related to the risk management; no matter it may be external or internal in its nature. Development of close ties between the customers, and other interest groups may bring the risk externalization by an organization. It has also been indicated by various economists that one contributing factor that is related to the risk management is the long-term relations, which are made on the mutual dependence in an organization. From the different studies related to the Islamic Financing System, the responsibilities are shared by the junior and the senior staff jointly in organizations. In this case, the higher and lower level of management shares the risk. However, in the Marketing-based and Conventional Banking system, the internal risk is shared on a lower basis due to the centralization of power and authority, as compared to the Islamic Banking System. Conclusively, a high degree of the sharing of internal risk is characterized during managing the risk management in the Islamic Banking system as compared to the other conventional financing systems. Therefore, there are many differentiation between the Islamic and Traditional Banking systems around the world. Regarding the risk externalization, in the Islamic Banking system, the close lender-borrower relationships are characterized during the lending activities of organizations. The borrowers are also guided by the Islamic bankers apart from lending funds to them. In result, efficient network relationships create the increment of the externalization of risks relating to the partners who exchange in this regard. Therefore, in the Islamic Financing System, the degree of external risk is observed to be high. However, the formal lenders-borrowers relationships are characterized within the Conventional and Marketing-based financing system. In the result, it is a low degree of externalization of risks in this traditional banking system. In this regard, the extent of success of a banking organization is determined by the lender-borrower relationships, where the customers are given credit in this regard. Direct contacts with the various customers are maintained within the Islamic, as well as, the Conventional Financing Systems. The differentiation is observed in the Islamic Banking System while dealing with the financial activities, as the borrowed funds are monitored closely by these bankers, which results in the higher intensity of the lender-borrower relationships. In this regard, the risks are borne on a higher extent by the Islamic Banking system as compared to the conventional ones. However, the bank gets the higher profit as we have tried to discuss it in the abovementioned matter. Conclusively, the issues of fairness and justice are concerned in the Islamic principles that are related to the interest, rather than defining the efficiency narrowly. The focus is placed on the necessity of sharing the risk in a stable condition with the help of these principles, as well as, at the time of exploitation of the markets. We have also clarified that the Islamic Financing System works on the equity-based projects. However, the conventional ones prefer the debit-based schemes for the lenders and individuals. In an Islamic financing situation, the ownership is shared by the both bank and the client, and in the Conventional banking, all the equity is owned by the client, and the property value plays as a security to the bank loan. We hope that this study will help the scholars and the economists in understanding the role and differentiation of the Islamic & Conventional Banking around the world. Works Cited Ahmad, S. (1992). Towards Interest-Free Banking. New Delhi: International Islamic Publishers. Chapra, M. (2000). The Future of Economics: An Islamic Perspective. Leicester, UK: The Islamic Foundation. Dar, A. H. , and Presley, J. R. (1999). Islamic Finance: A Western Perspective. International Journal of Islamic Financial Services. Dar, A. (2002). Islamic House Financing in the United Kingdom: Problems, Challenges, and Prospects. Ahmad, K. (1994). Elimination of Riba: Concepts and Problems, Response to the Supreme Court Questionnaire. Institute of Policy Studies, Islamabad, Pakistan.

Happiness Is A Person s Wellbeing - 938 Words

Definition of Happiness In society happiness is depicted as a person’s wellbeing in terms of wealth and status. The definition can vary due to an individual perception of life. By that being said happiness is not something that can be shown through materialistic things, but more so a person’s state of being internally. In addition to that, happiness can be misinterpreted due to society making happiness be something that only a person who lives lavish or have the attributes of a normal or perfect life. Because happiness is based off of an individualistic view, one cannot judge another person’s happiness in terms of what is or is not happiness in a person’s life. Scholars and society can often view happiness wrong due to the judgement of another person’s life. According to Frey and Stutzer, â€Å"they are argue that several biases combine to cause people to overvalue extrinsic benefits and undervalue intrinsic benefits† (1). Although they point out that people put more effort into wealth and less into family time that does not infer that they are overvaluing extrinsic benefit then intrinsic because one may feel that having wealth is a number one priority because in result to that their family will live comfortable. 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(Lyubomirsky, 2007) states that happiness is determined 10% by circumstances, 40% intentional activity and 50% genetically inherited. However, there is believed to be many influences on the happiness of an individual. (Pursuit of Happiness, 2017) believe that there are 7 habits of happy people. People who have one of more close friends and people who volunteer or care for others on a consistent basis are believed to be happier. Taking part in an activity that requiresRead MoreUtilitarianism Is Inconsistent With The Demands Of Friendship872 Words   |  4 PagesFriendship requires partiality and altruism. If one aims to build a friendship, s/he must show partiality by making sacrifices that benefit this friend in lieu of maximizing pleasure for all. Utilitarianism requires persons to act only in ways that benefit hedonic utility – maximizing pleasure while minimizing pain. Utilitarianism forgoes partiality and requires that an individual only commit actions that benefit the greater good. Thus, friendship – an act that requires partiality – and UtilitarianismRead MoreDoes Martial Status Affect Happiness1039 Words   |  5 PagesRunning head: DOES MARTIAL STATUS AFFECT HAPPINESS 1 Are Married Couples Happier than Unmarried Individuals? Linda A. Jones Norfolk State University DOES MARTIAL STATUS AFFECT HAPPINESS 2 AbstractRead MoreUtilitarianism : A Look At J.s1731 Words   |  7 PagesMill was a British philosopher in the 19th century whose views continue to change the world today. He was a proponent of utilitarianism. Utilitarianism is based on consequentialism and happiness. So in order to understand utilitarianism we must first understand what consequentialism is, and then understand how happiness is related. Consequentialism is a philosophical view in which morality means to produce the right kind of consequences. This could lead one to ask what the right kinds of consequencesRead MoreThe New Role Of Parenting Or Caring Informal And Formal Support Services1468 Words   |  6 Pagesprovide tips and advice for parents and carers. Another online service is Tresillian, which is Australia s largest early parenting organisation. Tresillian s services offer mums and dads practical, hands-on advice for their baby, toddler or pre-schoo ler, this advice can be furthered into supporting the parent in fulfilling their role as a parent/carer. A Paediatricians role is to promote a child s well-being and to help parents raise healthy, well-adjusted children, therefore, providing advice whenRead MoreHeading : Work And Capitalism 1227 Words   |  5 PagesHEADING: â€Å"Work and Capitalism†. /Travis Ellis The reason capitalism is inimical to happiness is because the bourgeois control the means of production, which has a detrimental effect on the proletariat financially. The balances of power between the bourgeois and the proletariat are always uneven and place the proletariat at a disadvantage. This imbalance of power alienates the employees; by placing the proletariat in menial role and this creates no room for development in any new skills. The