Impact of interest rate changes on bank profitability

Impact of interest rate changes on bank profitability Over the years, banking system in Pakistan shown enormous growth and potential. The performance and stability indicators showed significant improvement in the profitability of banking system. But now a days banking sector going under pressure. Such as liquidity crunch and solvency problem have significant impact on the performance of banking sector and economy. The financial institution could have managed the situation without any trouble if they have sufficient amount of liquidity available to fulfill their obligation. Since they are operating in very tight market conditions. So, they are forces to pay attractive rates to depositors to attract liquidity. Although the State Bank of Pakistan reduced the Cash Reserve Requirement (CRR) and Statutory Liquidity Requirement (SLR) on demand and Time Liabilities to ease the liquidity in the market. The governments instead of developing their own recourses empower banks to generate money and then borrow from banks. The huge amount of borrowin g from banks by the government its disturbing the economy. The government not only curtails its borrowing from banks but also put some sort of check on power of money. All these factors have combined to set a stage where lending rates are high and having great amount of burden on banks financials. The amount of non performing loans increased at rapid speed despite of heavy amount of provision created by the bank in recent years. The increasing asset quality concerns would force the banks to book heavy provisions for non performing loans (NPLs). The stability of the banking system is conditional upon the stability of overall economy. A stable macroeconomic environment contributes to effective and efficient growth of saving and investment decision. Appropriate macroeconomic measures should support the functioning of the banking system more specifically in the areas of financial stabilization, transparent fiscal policy and monetary policy. The major contributor role of effective and efficient growth in the economy is played by the State Bank of Pakistan and provides guideline to the financial institution to play their role in the development by mobilizing the resources of the economy and facilitating the investors. The success of a bank also depends on the ability to forecast and avoid risk, to cover the losses brought about by the arisen risk. Profit is the important requirement of a competitive banking institution and the cheapest source of funds. It is essential to see it not simply as a result, but also a necessity for successful banking in a growing competition on financial market. These important facts together are the reason for this to focus on the current topical issue of banks profitability. We will highlight problems which are influencing on banks effectiveness and efficiency to manage their portfolio such as assets and liabilities in aiming at to achieve profitability and identify the areas where it might have possible room for raising the bank profitability. Banks assets are grouped into two categories earning assets and non earning assets. Earning assets means those on which banks earns interest income and non earning assets means those which used for the purpose reserve requirem ent, fixed assets to run day to day operational activities. In this study we have focus on earning assets. This included Placement and lending to financial institution, investment in securities and loan advances. These assets are the major source of income for bank. Therefore, it is apparent that average income generation ability of these assets has a decisive influence on the banks profitability. As financial intermediary, banks play a vital role in the operation of most economic development. The efficiency of financial intermediation can also affect the economic growth. Banks are different from other firms in that they provide financial services, the reward to which is an interest rate, and the most of the funding are financed by the deposits or borrowing, the expense of which is also an interest rate. Interest margin, the difference between what a bank has earns on its earning assets and what is paid to depositor. It has been on upward trend during the last decade. An increase in the spread would affect the depositor or the borrower or both stand loose at same time. The lack of alternate avenues of financial intermediation aggravates the adverse impact of spread. For example, if the State Bank of Pakistan based on the monetary policy change the interest rate. Then the change in the interest rate influences the cost of capital that in turn affects the level of consumption an d investment decision. If the increase in the spread is due to decrease the rate to depositors then this discourage the saving, and alternatively if due to increase the rate it would have adverse impact on investment. Therefore, these changes in the interest rate have important implication on the economy. Banks are more sensitive to interest rate changes than most of the other institutions. The effect of interest rate changes on banks profitability has been an important issue for banking system. It has been argued that bank exposure to interest rate risk perhaps the most important issue in participating the saving and investment crises. 1.2: Problem Statement The impacts of interest rate changes have a significant impact on the bank profitability. When interest rate changes it would result in increase or decrease in the interest income of the bank and also have adverse affect on depositors saving and borrower investment decision. 1.3: Objective This research aims to study the impact of interest rate changes on banks profitability based on the following variables directly affecting the banks profitability Interest rate Balances with other banks Deposits accounts Lending to Financial Institution Investments Loan Advances 1.4: Research Scope and Limitation The scope of this research is to find out the impact of interest rate changes on banks profitability. There are few limitation involved in the study. The sample selection consists of five major banks. Which covers the 57% market share of the Pakistan banking industry. The basis for calculation of income is KIBOR rate. The banking system starts using as benchmark as KIBOR rate from 2002 onward. Therefore, our study period is 2003 2008. 1.6 Chapter Summary The banking sector shown enormous potential in previous years. Banking sector achieved high profitability and economy was stable. But from 2008 onward banking sector going through a financial crises such as liquidity and solvency problem. To control the uncertain condition of the country. The central bank reduces the Cash Reserve Requirement and Statutory Liquidity Requirement. So, banks have more liquidity to fulfill their obligations. On the other hand Central Bank increases the discount rate to control the money supply in the market. Which result in higher interest rates. Due to the increase in interest rate and financial crises borrowers default ratio increase and financial institution suffer large amount of losses during the period. This increasing amount of asset quality concerns would force the bank to book heavy provision for non performing loans (NPLs). The stability of the banking system is dependant on the economy. A stable macroeconomic condition will contribute to effect ive and efficient growth of saving and investment. Banks play as role of financial intermediary in the development of economy. If the central bank made any change in the monetary policy it will affect the performance of financial institution. Then the changes in the interest rate will affect the saving and investment. If the spread increases due to decrease in the rate to depositor then it will discourage the depositor and alternatively if due to increase in the rate to borrower then it will affect the investment decision. Therefore, banks are more sensitive to interest rate changes then the other institution. The effect of interest rate has been todays most important issue for banking sector. Chapter 2: Literature Review The study of Flannery, (1981) showed that large banking organizations (1978 assets greater than $2 billion) are well hedged against interest rate fluctuations. The large banks made necessary adjustment to avoid interest rate fluctuation by revising the repayment schedule rate as per the agreement with customer to minimize their interest rate risk. The some of the borrower pay quarterly, half yearly and annual payments. So, as per the agreement schedule bank revise the rates which minimize the risk of bank. When market rate change, the large banking organization made necessary adjustments to avoid interest rate volatility in revenue and cost. The mostly organization have mis matched balance sheet such as they borrow from customer and financial institution at shorter period or maturity and give lending to customer and financial institution at longer period. It would create mis match between balance sheet. Therefore, banks are exposing to interest rate risk and liquidity risk. To avoid the liquidity risk the banks develop relationship with financial institution to overcome their liquidity problem on immediate basis and for interest rate they minimize the risk by revising the interest rate of the contract as per the agreement. The finding of this article suggests that most bank posses a sufficient range of assets and liabilities choices to avoid the risk. This study employs annual data from the federal Reports of Income and Condition on individual insured banks in continuous existence from 1960 through 1978. Twelve banks were chosen at random from the national population in each of five asset size categories (based on year-end 1978 assets): less than $25 million, $25- 25-49.9 million, $50-99.9 million, $100-299.9 million, and greater than $300 million. Holding company subsidiary banks were excluded from the first four size million, $100-299.9 million, and greater than $300 million. Holding company subsidiary banks were excluded from the first four size groups; 3 banks above $300 million were included regardless of their subsidiary status, since large independent banks may not be representative of the population Flannery, (1983). In this study data collected from the federal report of income and condition f rom 1960 to 1978. Population of Twelve banks randomly chosen for analysis and break into 5 different assets size categories on the basis of 1978 assets: less than $25 million, greater than $25 and less than $49.9 million, greater than $50 and less than $99.9 million, greater than $100 and less than $299.9 million and greater than $300 millions. In this study holding companys subsidiary excluded from first four groups and greater than $300 million includes the subsidiary banks of holding company and regression techniques had been used in the analysis. The result of the study showed that commercial banks groups are substantial exposed to interest rate risk and individual bank choose alternatives to avoid such risk. Bank possess sufficient amount of funds available in the form of assets and liabilities to minimize those risk and try to get productive results. The study of Barajas et.al (1999) showed that a key variable in the financial system is the spread between lending and deposit interest rates. When it is too large, it is generally regarded as a considerable impediment to the expansion and development of financial intermediation, as it discourages potential savers with low returns on deposits and limits financing for potential borrowers, thus reducing feasible investment opportunities and therefore the growth potential of the economy. The key point of financial institution is the spread between Loan and deposits rate differences. When the lending rate is high and deposits rate is low then which results in higher the profitability for the financial institution but on the other hand it will discourage the depositor. Because the depositors getting low return on their savings and also discouraging for the borrowers because the financial institution charging high interest rate. If the financial institution doing the same then it would red ucing the saving confidence on depositor and borrower will try to avoid to borrow from financial institution. Which resulting in reducing the investments opportunities because the saving money not contributing to the economy. Financial system of developing countries showing larger spread difference as compare to the developed countries. Based on the balance sheet and profit loss information the author derived two data base. One data base developed on basis of quarterly data from 1974-1988 and other on the basis of monthly data from 1991-1996. In the period 1974-1980 the spread between loan and deposits increasing steadily and then start decreasing during the period 1981-1988 reached to 19 percent and again decreased during the period of 1991-1996. The evidence provided by the author clearly suggest that the during 1974-1980 spread increased and then during the 1981-1990 significantly decreased. This showed that the loan quality during the period remained stable and reserve ratio re quirement decreased and consistent spreads and cost lower the productivity of the state bank. A study of Maisal, Robert (1978) showed that financial markets is the degree and rapidity with which financial institution react to new information and shift funds among asset and liability classes so as to equalize marginal cost and returns. Many analysts assume that markets are efficient, that transaction and information costs are negligible or unimportant, and that borrowing and lending hedging and arbitrage are simple and available at or close to risk free rates. As a result, they believe that they can successfully predict the results of all types of markets actions and reactions without concern for institutional forces. The financial markets are so efficient that they get rapidly information and on the basis of information they are making quick decision regarding the fund management such as assets, liability, cost and income. When all the information readily available then it reduces the cost and increase efficiency of transaction such as hedging and arbitrage without taking any risk on the basis of available information analyst predict their results of any market without considering the forces. The study conducted by author on the basis of cost and revenue of cross section banks during the period 1962-1975 estimation made on the basis of net rate of income and cost of book value of assets. The net rate is the difference between the gross revenue from assets minus cost of asset and rates are net of servicing, processing and overhead cost. The result showed that major shift occurred during the period of 1970-1975. Net returns of assets considerably differ when computed on the basis of average. The study of Demirgà ¼Ãƒ §-Kunt, Harry (1999) showed the differences in interest margins and bank profitability reflect a variety of determinants: bank characteristics, macroeconomic conditions, explicit and implicit bank taxation, deposit insurance regulation, overall financial structure, and underlying legal and institutional indicators. A larger ratio of bank assets to gross domestic product and a lower market concentration ratio lead to lower margins and profits, controlling for differences in bank activity, leverage, and the macroeconomic environment. Foreign banks have higher margins and profits than domestic banks in developing countries, while the opposite holds in industrial countries. Also, there is evidence that the corporate tax burden is fully passed onto bank customers, while higher reserve requirements are not, especially in developing countries. The study showed that variation between spreads and profitability comprised of various determinants. Such as economic condi tions, regulations and financial structure. As the banks have a high ratio of asset with respect to gross domestic product and have small profit margin and banks profits. Because of debts and economic conditions. Foreign banks usually have greater margin of profits as compare to the local or domestic bank in the developing countries and different outcome for industrial countries. This study also evidence that corporate tax had a direct burden on the bank customer because bank transfer the tax burden to their customer while reserve requirement of central bank doesnt not have a significant effect on banks. The data collected at the level of banks for 80 institutes and period comprised of 1988-1995 on the size and decomposition of banks spreads and profits. Regression technique had been used to find out the determinate of interest rate spreads and banks profitability. Taxation and regulation have big impact on bank customer and overall bank position. The banking system varies from coun try to country around the world in size and composition and structure. All banks have different influence of macroeconomic conditions, regulation and market conditions. Several countries data had been used for analysis to find out the bank characteristics and conditions which affect the banks performance such as interest margins and profitability. Some variable have positive relationship with each other and some of them have a negative relationship with each other i.e. reserve ratio to profitability. The study of Samuelson Paul A, (1945) showed that the banking system as a whole is not really hurt by an increase in the whole complex of interest rates. It is left tremendously better off by such a change. If a bank were a university, nobody would doubt that it would be made better off by an increase in the interest rate. At worst, it could continue to hold all existing gilt-edge securities to maturity and be no worse off. As these matured, the proceeds could be invested at higher rates with a resulting increase in income. It would be better off in the sense that ceteris paribus it could hire more teachers per year, spend more money on buildings and stadia, and engage in more research. The only exception would be in the limiting and unrealistic case where all its money was invested in perpetuities. But even here it would be no worse off. In every other case it would be better off. The increase in the interest rates usually not affects the performance of bank, its actual effect on th e borrower. When the interest rate increases then borrower will bear the effect of increase interest rate. But it would not affect the bank performance .The reason is that the bank pay low return to depositors and charge more to borrower as interest rate increases. So, both depositor and borrower will bear the cost. In this article author taken the example of university. If this loan given to the university it certainly impact on the university performance because of increase in the interest rates. As the interest rates increases it would become more costly for the university and difficult to pay to the bank on time. The increase in the interest rates would not hurt university as its decreases capital value. This change would have a better impact on university. The study of Coleman George W, (1945) showed that the banking system would recover these losses over a period of time, the length depending upon the maturity distribution. During that period, it would be frozen in to a given maturity pattern. The earnings of the banking system upon the existing portfolio would increase. He states that immediately after interest rates have risen and capital values have scaled down, all parts of the portfolio, old as well as new, began to earn the higher rates. The rise in the interest rates bank can come up with some loss on the portfolio such as investing in the securities of longer period. The bank can recover this cost over the period of time and get desired returns and also increase in the capital of the bank. When the investment is carried at cost then it would amortize cost. It means banks amortize the investments over the period of agreement until it becomes zero. When the interest rate rise it would have immediate effect and bank re-prices the portfolio on the current interest rate and gets benefit of the opportunity. The objective of the study to find that increase in interest rate would not a sufficient impact on banks. Its directly influence on the saver or borrower. Which ultimately result in decrease in saving and investment. The management of bank continuously monitoring and updating their portfolio policies to minimize such risk. The study of Khawaja, Musleh, (2007) showed that Interest spread of the Pakistans banking industry has been on the rise for the last two years. The increase in interest spread discourages savings and investments on the one hand, and raises concerns on the effectiveness of bank lending channel of monetary policy on the other. The interest rate spreads in banking sector on the upward move. When the interest rate increases its discourages the depositor and borrower. Such as saving and investments. Banks giving low returns to depositors which results in discouragement and getting high return from borrower by charging high interest rates inclusive of spreads. Spreads are much high in Pakistan. When spreads taken into account ultimately the interest increase and banks gets high returns on lending and investments. The depositor not has any other option to save his money and also the strict requirement of SBP capital requirement. The industry has rapidly merger and acquisition. This results in decrease in the option for saving. In this study author used data of 29 banks. Variant model had been used to check variables relationship. The results showed that inelasticity in deposits supply have positive impact on interest rate spreads. To lower the spread margin central bank play a vital role to reduce the spread and other alternative would be the financial intermediary which lower the spreads. The study of Chirwa, Montfort, (2004) highlighted the importance of financial liberalization in facilitating economic development and growth. While there is no complete agreement on the removal of financial repression, usually characterized by control of interest rates, imposition of credit ceilings, and credit rationing, leads to significant amelioration of growth prospects, the dominant view is that financial liberalization and growth usually go together. Financial liberalization had a great influence on improving the economy and increasing growth. There is no certain agreement made on the financial repression. The management made certain tool and polices to control the interest rate impact on credits. Such as by applying tool of checking limits and there purpose of credit extension. The good control over the interest rate would have a significant on the performance of economy and growth of the country. Financial liberalization and growth of the economy work to gather and run head to head and boost the development of economy. The determinants of interest spread and bank profitability have been often used in the model. In portfolio choice bank trying to maximize their good portfolio. This maximizes the profitability of the banks. Bank usually made feasible choice of assets and liabilities with respective tenor interest rate. This study used monthly panel data from banking system between 1989-1999.the findings of that study showed that the after liberalization the interest rate significantly increased. The main cause of that increase was the increase in nonfinancial cost, provision for doubtful debts, taxation and variation in the inflation rates. The study of Marisel Peter, (2002) showed that in the world of endogenous money, the central banks role in monetary policy is reduced to the setting of a very short term official rate of interest, which indicates the price at which it will make liquidity available to the banking system. However; it is changes in market rates that affect behavior; and so the ability of the central bank to influence anything at all depends, first, on the interaction between official and market rates. In this paper, we use a vector autogressive error correction model to explore the response to changes in the central bank rate of three short-term market rates that have been featured previously in this journal in debates about the demand for endogenous money. The main responsibility of the state bank is to control or reduce the rates which affect the price and liquidity of the banking system and affect the availability of liquidity of the banking organizations. The fluctuation in the market interest rates will affect the function of the banking system and as well as the behavior of the consumer and economy. In this study autoregressive correction model had been used by the author to find out the responses of interest rates changes and its effect. When spread between Corporate Government bond increases then the market assume that the risk on the bond increases. When they see then they try to predict the coming slowdown and recession in the economy. After testing they have found that it would have a positive effect on the economy. They have used the Autoregressive model to test the fluctuation in prices and interest rates. The result of the paper showed that the short term interest rates have a significant impact on the banking system as compare to the long term interest rates. Short term interest rates were the major instrument of the monetary policy of the central bank. In monetary policy central bank advice the interest rates which would affect the banking system as well as the ov erall economic activities of the country. 2.1: Chapter Summary The impacts of interest rate changes have a significant impact on the bank profitability. When interest rate changes it would result in increase or decrease in the interest income. The Pakistan banking industry use Karachi Interbank Offered Rate (KIBOR) for earning assets to find out the interest income. The major portfolio reprice on 6 M KIBOR. Bank is exposing to interest rate risk. But usually bank hedge against interest rate risk to minimize its impact on bank performance. The major impact of interest rate changes would affect the depositors and borrowers. Because when interest rate changes it would discourage the saving and investment decision.

Bureaucracy in Public Service

As Weber noticed nearly a century ago, with the rationalization of society, bureaucracy becomes inevitable (Weber, 1968/1921) and in the contemporary society, bureaucracy – whether private or public – is ubiquitous. Without it, few of the routine features of our modern society would be possible; the collection of taxes and the production and distribution of goods and services, for example, would be difficult, if not impossible. (Dandeker, 1990) Bureaucracies control people by replacing human judgement with nonhuman technology, thus creating a formalistic impersonality of the system.Even bureaucracy itself can be seen as a huge nonhuman technology that functions more or less automatically. Rules, regulations, and institutional structures replace the adaptability of human decisions, that is, employees of bureaucratic organizations generally follow the rules and regulations in a predetermined sequence instead of evaluating each case separately. They must get their jobs don e in a certain way by a certain time without mistakes, and the role of informal systems of human action is diminished by the highly formalized structures.Bureaucracy controls not only employees of an organization but her clients as well. An organization provides services and one must apply for the services on a specific form by a specific date. One will receive those services only in a certain way and under strict conditions. (Ritzer, 1998) Client categories used by organizations decide what information a client is supposed to provide, and this information will generate a denial or a grant of a specific requested service. Snellen, 1998) Although bureaucracy is present in both public and private organizations, there are large differences between the two types of organizations and the services they deliver. The first difference is the monopolistic character of public organizations, i. e. , often a citizen does not have a choice between different public organizations (as is the case wi th private organizations) because there is only one public organization that provides a particular service. A second difference is that a citizen is not always a voluntary ‘client’ of public organizations because the nation state is responsible for the collective goods.Public services will thus not only increase personal benefits and rights, but will also consist of activities that address the duties of citizens (e. g. , tax collection). Third, citizens have a voice in the determination of public service delivery through voting, referenda, and public hearings. (Lips, 1998) The citizen (as citoyen, carrier of democratic rights) enters into debates with political-administrative organizations. When consensus has been established, politicians instruct the public organizations who execute these instructions.The citizen (now as client) uses the services provided by public organizations. (Zuurmond, 1996a; Zuurmond, 1996b) Fourth, public services are subject to specific norms a nd values, like legitimacy, legal certainty and equality of rights, as a consequence of the government’s responsibility for the collective good. This results in the fifth difference between public and private services: continuity in the deliverance of services to citizens and accessibility of public services to all citizens ought to be more important goals for public services than gaining profits.The services provided to the citizen (as client of public organizations) thus have a different character than the services provided to the customer (as client of private organizations). The view of the citizen as client is not an old view. A few decades ago, the political process of determining the ‘business of government’ (i. e. , determination of public products, services, and information provided to citizens) was perceived as the most important part of the public service delivery.The dominant focus was on the supplier- side of public service delivery; the government k new what was best for their citizens and the government decided what way and form of service provision was most appropriate to address these citizens. This focus shifted gradually to the production and delivery of public goods, services, and information. Standards like efficiency and effectiveness were introduced in public organizations and the functioning of the public organization became most important.During this period, the view of the citizen as a client of public organizations came into being. (Lips, 1998) Recently, the focus shifted to the feedback of citizens on both wanted and received public products, services, and information. This is at least the case in the Netherlands (Lips, 1998), but it is likely to apply to other national governments as well. Where the government’s attitude initially was ‘we know what is good for you’, it has changed to ‘let us know what is good for you’.This view is a result of increased attention to the spending of administrative organizations, and standards like efficiency and effectiveness have played a role as well. Also, concepts and methods with proven success in the private sector, like management, budgeting, marketing, but also service delivery itself, have been introduced in the public sector. This requires changes in the organization of public service provision. Governments perceive information and communication technologies (ICTs) as an important means to realize these changes.ICT applications in public service delivery potentially bring about not only increased effectiveness, increased efficiency, an improved client-orientation, and a reduction of cost, but also an improved comprehensiveness of information processes of public service delivery between government and the citizen. (Lips, 1998) The efforts of public organizations to administer to each of many citizens their precise ‘due’ in terms of the organizational treatments they ‘deserve’, results in a bu lk of demands for personal information. Rule, McAdam, Stearns, & Uglow, 1980) The large quantity of personal information does not take place solely for the benefit of the clients, but for the benefit of the organizations as well, for organizations are trying to manage risks by gathering personal information in order to establish the kind of person they are dealing with (Lyon, 2001). Today, one of the most obvious indicators of the pervasiveness of bureaucracy is the massive expansion of the personal information which is held by a range of public – and private – organizations. As Dandeker (1990) stated strikingly, â€Å"the age of bureaucracy is also the era of the information society†

Language of poetry Essay

When looking at the language used by a poet when creating a poem it is important we do this with a number of things in mind. What kind of image is the poet attempting to create in our thoughts? When was this poem created? How is it structured and punctuated? What context has it been written? and also how does the poet want us to feel when reading the work? No matter how long or short a poem may be the language used when creating it will be vital as to deciding how we respond to the poem. It is not just what the poet is trying to say but how they are attempting to say it that will define how this poem resonates within us. There are many reasons why an author might choose to use some words instead of others. A poet might choose words for the way they sound, compliment other words, shock value, for the tense they are in or even for the perspective they want to use. For the purpose of this essay we will be looking at three American poets with the intent of studying the language used in their works in order to better understand the meanings of these poems and to also figure out why they were written in a certain way. Look more:  first poem for you analysis essay When looking at the language used in each of these poems we will be looking out for many of the things mentioned above to aid the investigation into the language within them. The first poet that we will look at is William Carlos Williams and in particular his poem â€Å"This is Just to Say†. Just like all the poems he has written it is a short piece which is created using simple words and sentences that can be easily understood by the reader. The poem is full of enjambment and this means that we put particular emphasis on the words â€Å"breakfast, â€Å"delicious†, â€Å"so sweet† and â€Å"so cold†. If we didn’t observe the enjambment in this poem it would more than likely be mistaken for a short note for someone’s sister, mother, wife or father. The way that enjambment is used in this poem has a profound effect, it is a poem written in the past tense, and one that relies heavily on the creation of an image in the mind of the reader. This poem successfully creates that image nearly to the point where we can almost see the drops of moisture on the plums as they glisten in the sunlight prior to being devoured by the writer. How the poet uses enjambment enables this strong creation of an image. He uses the words delicious, sweet and cold to great effect and their placing within the poem adds hugely to how they aid this. They are all grouped together in the last section of the poem and this means we are quickly bombarded with a triple whammy of descriptive words in what is a very short poem. It is also important to note how Williams says the plums are â€Å"so† sweet and â€Å"so† cold rather than just sweet and cold. This little word has a huge effect and it compounds in our minds just how sweet and cold they really were and as such, one might even feel a desire to have the plums themselves if reading the poem on an empty stomach. The poem is structured in one long flowing sentence that is broken up into three sections of three lines, this structure makes it easy to digest and understand. The poem â€Å"Woman Poem† by Nikki Giovanni is about a black woman and what her life is like. The woman wants things in life; the men will not let her have what she wants. The author, Nikki Giovanni uses several poetic aspects in the poem. Throughout the poem she uses synecdoche’s to make her point, for example: â€Å"me getting fat as a hog† being used to describe gaining weight. The imagery created by this poem helps to describe the way that men hold her back. It is a completely different poem to the one investigated above but again it relies heavily on imagery along with words with a real sense of shock value to get a message across to the reader. The language of this poem is language of oppression, frustration, anger, devastation and hopelessness and the images it creates are such too. It describes the life of a black woman in the 1960s and when doing so she describes a yearning to be â€Å"free†. Free from the constraints of what she describes as a male dominated society, one where she almost feels as if she has been castrated. She does not mean this literally but the use of the word â€Å"castrated† is symbolic to the genuine feeling of being powerless she feels almost as a dog being castrated would. She is using words as a means of venting and conveying her feelings and it is obvious to see the emotion attached to what she writes. The third stanza reads: â€Å"it’s a sex object if you’re pretty and no love or love and no sex if you’re fat get back fat black woman be a mother grandmother strong thing but not woman gameswoman romantic woman love needer man seeker dick eater sweat getter fuck needing love seeking woman† This stanza is the one within the poem which is the most image provoking. The language used is vulgar and not everyday conversation etiquette. She most likely uses language of this sort on purpose in order to grab the attention of the reader and highlight her plight as a woman who can be regarded by men as merely an object for sex. She repeats this process throughout the poem to great effect using words like â€Å"whore† and â€Å"black dog†. As a whole this poem is difficult to read and find meaning from but when carefully studied it created in the mind an image of hopelessness for women. One of an existence devoid of happiness, an image compounded by the final lines which read: â€Å"face me whose whole life is tied up to unhappiness cause it’s the only for real thing i know† The third poem to be investigated is â€Å"Poppies in July† by Sylvia Plaith. This poem was written in July 1962. At this stage of her life, Plath’s marriage to Ted Hughes was in turmoil, and she was suffering from a severe bout of depression. < http://sylviaplathnotes. wordpress. com/poppies-in-july/>. With this poem she enables us to have an insight into the turmoil and pain she felt inside. The colour red is prominent and this symbolises anger and rage. The images created in the mind are very dark, vivid and disturbing, imitating what her thoughts were when she created the poem. At the start of this poem we are informed that bright red colour of poppies reminds the poet of the burning fires of hell. The poppies swaying in the breeze remind the poet of flames flickering. She begins to show a desire to self harm, thrusting her hand among the â€Å"flames† to see if it burns but there is something about these flowers that she cannot touch. This is the reader’s first real insight into the pain Plath must have been feeling. Throughout the poem we are reminded of her desire to cause harm to herself. Later in the poem she describes outward appearance of the flowers again, this time with a simile. Now she likens them to the wrinkled, red skin of a bloodied mouth rather than the flames of hell. This violent imagery is another hint towards her desire to self-harm. Continuing the idea that there is something about these flowers she cannot touch, she now states that she is unable to touch their fumes and enquires about their opiates. This represents a longing for heroin or opium which is a drug created from poppies. Complex imagery is used, referring to her mouth as a means of taking the drug. Exclamation marks indicate just how desperate the poet is getting. She needs these drugs and she needs them now! Throughout this poem there is a recurring theme of desperation from the poet, desperation for obliteration through drugs or self harm, it relies on graphic imagery to get the point across and gives us an idea of the darkness encased within the mind of the poet. She closes the poem with the words â€Å"colourless, colourless† which might represent how she feels her life and marriage have become. Through investigation of the above poems we are able to come to numerous conclusions regarding the language used within them. The first poem is nothing more than a short piece but it still manages to create not only a powerful image in the mind but also a longing for the peaches described within! The last two poems investigated however are far more deep and sombre affairs. They offer us a real window into the souls of their creators. The language used in each of these is powerful and it is impossible to read them without being left with a real sense of the turmoil felt by both these women. They both utilise the shock value element of language to make their poems that bit more hard hitting and employ similar punctuation techniques also. Through doing this investigation into language of poetry we can now understand how the language used by the poet is vital when it comes to determining the feelings we are left with having read a poem.

Career Development And Performance Of Succession Planning...

Career Development and Performance Succession planning selects and develops future company leaders, but it is also an important opportunity an organization can use to develop employees for non-management roles. Succession planning concentrates on high-potential employees that the organization considers promising for higher-level manager positions (Noe, 2016). Succession planning should be combined with talent reviews to help employees understand their current skills and abilities and the skills and abilities needed for their future career. Succession planning educates employees about the competencies required for different jobs in the organization. This is vital because employees can use this knowledge to create short-term and long-term goals. Management should be conducting talent reviews and succession planning with employees so they can develop goals and strategies to meet these goals (Argosy University Online, 2016). The pros of succession planning are the strengthening of int ernal talent and increased employee retention and loyalty (Argosy University Online, 2016). Other benefits are the improvement of career mobility and engagement from using the existing workforce, and a company can save money from promoting from within (Hills, 2009). Some cons of succession planning are that a lot of companies are not good at it, and many senior-level managers are dissatisfied with it. It fails as a development tool if the candidates being developed do not have leadershipShow MoreRelatedCase Study : On The Retention And Development Of Their Employees1516 Words   |  7 PagesChern’s: Assessing Internal Candidates Chern’s talent philosophy is focused on the retention and development of their employees. They are the primary source for their associate department managers and department managers is their sales associate position, with 75 percent of their promotion coming from this source. In a review of the turnover data, the leadership team learned that they are losing a large number of good sales associates. The executives learned that a disproportionate number of goodRead MoreEvaluating The Retention And Development Of Their Employees1201 Words   |  5 PagesAssessing Internal Candidates Chern’s talent philosophy involves the retention and development of their employees. In a recent analysis of the turnover data, the executives learned that a disproportionate number of good sales associates had left the organization. These sales associates could have been potentially strong candidates for the department manager and assistant department manager positions. Chern’s uses supervisor recommendations and structured interviews to promote about 75 percent ofRead MoreThe Company Fosters A Learning Environment, And Encourages Training And Employee Development801 Words   |  4 Pagesencourages training and employee development. They have a strategic goal identified for continuous learning and development. A benefit developed by the company is an internal university that offers a variety of training in different disciplines, skills, and career paths. Leadership Pipeline. The structure of the company fits into the Leadership Pipeline as identified by Drotter and Charan (Building Leaders at Every Level: A Leadership Pipeline, 2001). There is a career path framework that has been developedRead MoreEffective Organizational Support For Professional Advancement1279 Words   |  6 PagesDeveloping a transparent organizational commitment to succession planning creates an opportunistic culture encouraging professional development and increasing opportunities for high-potential employees (Bolton Roy, 2004; Rothwell, 2010; Swan Moye, 2009). Transparent organizational support for professional advancement has the potential to boost morale and improve nursing retention (Coonan, 2005). Succession planning efforts at the nurse manager level provide staff nurses an opportunity to exploreRead MoreEssay about In Pursuit of Talent Management1582 Words   |  7 Pages(Mathis Jackson, 2011). Every individual person has different characteristics a nd traits that can be brought to the organization. It does not matter if they have been with the company for 20 years or just graduating from college and beginning their careers. The key is to find the strengths and weaknesses of each person and capitalize on them. This is where managing human resources fits nicely into organizational goals and objectives. Nevertheless, how do companies acquire and retain their best and brightestRead MoreA Study On Succession Planning755 Words   |  4 PagesBelow is a list of the steps which are necessary to complete a succession plan. In my list I have compiled information from the text book and also from the journal article â€Å"Succession Planning 101† by Doug Gary and I also include information from the 3M SHRM video. A. Identify what positions are included in the plan Noe (2013) states that a company should identify what positions are included in the succession plan, such as all management positions or only certain levels of management.Read MoreAdvantages Disadvantages of Succession1018 Words   |  5 Pages3OVERVIEW OF HUMAN RESOURCE /MANPOWER PLANNING Manpower planning is the first step towards manpower management. It refers to the process of using available assets for the implementation of the business plans. It also involves the process of coordinating and controlling various activities in the organization. An effective manpower planning requires a careful assessment of the future needs of the organization. It involves the development of strategies to match the requirement of employees and availabilityRead MoreEssay on Workforce Planning632 Words   |  3 Pagesa. Identify 10 characteristics of best practice succession planning systems and management that ensure desirable workers are developed and retained. 10 characteristics of best practice succession planning systems and management that ensure desirable workers are developed and retained include: 1. Easy to use succession systems to ensure consistency and maintain objectivity across organisational levels, business units and geographical areas 2. Developmentally orientated to enable managers to reflectRead MoreAssignment 4: Southern Company Case Study Essay1647 Words   |  7 Pagestime to review and revamp their succession planning and leadership development efforts to guarantee that they had a sustainable source of effective leaders to meet future business needs. Evaluate the effectiveness of the roles that the strategic leaders played in the formation of the performance management strategy. Southern Company’s leadership teams played a significant role in the formation of their performance management strategy. Once performance standards were identified, leadersRead MoreHybrid Assignment 4 - Talent Management Program1358 Words   |  6 Pagesmanagement programs consists of many critical components that when organized properly foster a setting of continuous growth and success. These components of an effective program include: 1. Onboarding 2. Training and development 3. Performance management 4. Employee engagement 5. Succession planning 6. Mentorship 7.Work Life/Balance 8. Offboarding. Organizations must ensure that they have the human resources capabilities readily available to meet the current and future requirements of an ever changing demand