Sunday, September 30, 2012

The New Business

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The latter part of the nineteenth century was a time of unprecedented economic growth in the United States. The advances made during, and the effects of, the industrial revolution of the late eighteenth century put the US on a course for increased productivity and economic growth in the late nineteenth century.

The nation now stretched across the North American continent from the Atlantic to the pacific coasts. Connected by railroad lines, transportation between the cities and far off areas of the nation now took days rather than weeks and months. The industrialized northeast was able to quickly and efficiently receive the resources it needed to manufacture goods and transport them for sale elsewhere. The west was also able to take advantage of the new transcontinental railroad as the abundant resources of the nation now could be transported from coast to coast and all places in-between quickly and cheaply, increasing productivity and reducing prices. From different areas came cattle, fruits, vegetables, lumber, steel, coal, cotton, oil and much more. Abundance indeed.

As productivity grew due to increased industry, American cities began to grow larger. Railroads once again provided a quick and inexpensive means of transportation for the ever-increasing number of people from all over the nation to take advantage of the ever-growing job market in the cities. American farm families flocked to the cities to work as well as millions of European immigrants.

Between the 1870’s and 1880’s, eight million European immigrants came to the United States. The unlimited immigration policy at this time served to increase the size of the population and labor force. Immigrants provided cheap labor usually in factories and mines. The huge increase in the population raised production, and as the number of workers increased so did the number of consumers to purchase goods and services.

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Technological progress was crucial to economic growth. The Bessemer process transformed the steel industry and enabled it to produce faster and in much larger quantities than had ever been produced. The United States became the worlds leading steel producer. New farming methods and equipment, enabled farmers to grow crops larger and more successfully than before. New plows, seed drills, cultivators, mowers, threshers, reapers, harvesters and binding machines came into use, as did combines. These advances in farming made extremely large farms possible, consolidating the industry in some ways and displacing some smaller farmers who flocked to the cities for work. Enormous advances in science-based industries such as chemicals, electrical power, and electrical machinery changed the means of production. These changes prompted further innovations, which led to further economic growth. New inventions such as the sewing machine, typewriter, calculating machine, and cash register transformed industries. Some, like the telephone, electric light and power, and the phonograph created new industries and changed the quality of life.

New business practices were also an important element in economic growth during this period. Companies better organized work for efficiency and higher production. Large firms coordinated production and marketing across many business units. Leading industrialists such as Carnegie and Rockefeller operated huge conglomerates that held relative monopolies in steel and oil production. These corporations revolutionized the way big business operated, employing many thousands and controlling their respective industries.

Abundant resources, quick inexpensive transportation, cheap labor, technological advances and new business practices fueled the economic growth of the late nineteenth century that made the American economy the largest and most productive on the globe.



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Thursday, September 27, 2012

FOUR SEASONS GOES TO PARIS

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FOUR SEASONS GOES TO PARIS

This is the first effort of Four Seasons Hotels to open a hotel in Paris. The management’s biggest problem seems to be the adaptation of the Four Seasons system to the French way of life. In France the employees can not be replaced easily and when taking over such an establishment, Four Seasons management had to keep most of the existing staff and make them adjust to the way of Four Seasons. In a country like France where people are really proud of everything linked to France made it hard to adjust to the customs and standards of the Four Seasons management. Keeping the existing staff helped George 5 to remain local and F.S. management made the necessary adjustments not to offend the employees or the customers. However since the research doesn’t have enough information on why the former George 5 was doing bad we can not really comment on by just changing the management the new George 5 will be successful.

The competitors of the new Paris Four Seasons George 5 are the other 5 palace hotels with about the same credentials. George 5 and Plaza Athenee are built in a different style which can give these a slight advantage over the others. Four Seasons George 5 has the highest capacity and the highest prices among the six.

The high capacity and 5 workweek hours caused Four Seasons keep more staff and the number of employees per room is higher then the average for Four Seasons Hotels. The numbers are close to the ones of New York Pierre and Milan.

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Four Seasons Canadian roots can help this hotel to be successful in Paris. As a brand Four Seasons doesn’t have the American title attached to it and in Europe, especially in France where the American culture is seen as Mickey Mouse’s this represents an advantage.

One of the most important aspects of the Four Seasons Hotels is that they blend in with the local environment and as stated in research the buildings chosen for the hotels represent their locations.

The potential customers who would stay at the hotel are not the local people, they would like to breath in the air of the country they are in and the above aspect matches with this goal. However locals will still use the hotel for the restaurants, for balls…etc so these services must be as good as their hospitality.



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DISTRIBUTION CHANNEL OF PEA FOR NEW ELECTRICITY SERVICE

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Kasetsart International MBA



DISTRIBUTION CHANNEL OF

PEA FOR NEW ELECTRICITY SERVICE

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Prepared by

Mr.Korn Suphanaroj

October 00



TABLE OF CONTENTS

1. EXECUTIVE SUMMARY 1

. INTRODUCTION

. MARKET STRUCTURE OF PEA

.1 BACKGROUND ELECTRICITY SUPPLY INDUSTRY OF THAILAND

. STATEMENT OF PROBLEM 4

4. SOLUTION FOR PROBLEM 4

4.1 CLASSIFY CUSTOMER TARGET 4

4. SET DISTRIBUTION CHANNEL 5

5. CONCLUSIONS AND RECOMMENDATION 7



Kasetsart International MBA - KIMBA

Individual Marketing Report

DISTRIBUTION CHANNEL OF

PEA FOR NEW ELECTRICITY SERVICE

1. EXECUTIVE SUMMARY



PEA is a government enterprise and is responsible for the provision and distribution of electricity to all classifications of customers in the service area covering 7 out of 76 provinces all over the country, except Bangkok, Samutprakarn and Nontaburi. Although, the demand of electricity in Thailand grows up and the energy sales of PEA increases every year, it has been expected that in the next 5 years the sale volume of PEA will decrease resulting from the competition from Small Power Producers (SPP) trying to flight for PEA customers in industrial estate areas which regards as major customers.

As a result, PEA has planned to establish a new business in providing electricity services in parallel with electricity sales. For this new business, PEA has categorized its customers into groups; factory, business building and household. Each category of customers require different services and distribution channel. The distribution channels will be separated into 6 channels

• Marketing section of electric office

• TV advertising and radio spot

• Household customer

• Seminar and educational institute

• Magazine

• PEA product

This is the first step of PEA to enter to this service business that quite new for PEA. The result obtained from the establishment of the distribution channel will be analyzed to improve PEA marketing strategy in the future.

. INTRODUCTION

The Provincial Electricity Authority (PEA) is a government enterprise under the Ministry of Interior. PEA was established in 160. Act by the Royal Decree executed on 0th September 160. The service Area of the PEA is approximately 510,000 km, according for percent of the whole country (except for Bangkok, Samutprakarn and Nontaburi province). Now, there are 41 PEA’s sub-offices spread cover 7 provinces, rendering service to theirs customers. PEA has separated its service area into 4 regions; North Region, Northeast Region, Central Region and South Region.

PEA has three major objectives are

• To improve the process on provision and distribution services of electricity energy for customers.

• To develop activities in all areas in order to achieve sufficient revenues to further development.

• To develop its organizational structure, man power and management of resource in order to achieve maximum efficiency and effectiveness



. MARKET STRUCTURE OF PEA

.1 BACKGROUND OF ELECTRICITY SUPPLY INDUSTRY OF THAILAND

In generally, the electricity supply industry of Thailand consists of major organizations that support the whole public facilities in Thailand. The responsibility of these organizations is separated into parts as electricity generator and electricity distributor. The scope of responsibilities of these authorities can be described as follows.

• Electricity Generating Authority of Thailand (EGAT) � the power generator and supplier which selling the high-voltage electricity (115kV) and medium-voltage electricity (-kV) to Provincial Electricity Authority (PEA) and Metropolitan Electricity Authority (MEA).

• Metropolitan Electricity Authority (MEA) � The electricity distributor which provides and distributes electricity supply to customers in provinces of Thailand; Bangkok, Samutprakarn and Nontaburi.

• Provincial Electricity Authority (PEA) � The electricity distributor which provides and distributes electricity supply to customers in 7 provinces (except MEA responsible areas).

As mentioned above, it is foreseen that each organization has its own service areas and customers, especially MEA and PEA having the same responsibility as distributor. The customers in MEA and PEA areas can buy the electricity energy only from the distributor in their areas. Those means customers in MEA service areas can not buy electricity energy from PEA. In the same way, customers in PEA service areas have to buy electricity energy only from PEA.

. STATEMENT OF PROBLEM

As people know, Provincial Electricity Authority business is to sell electricity to households, industry estates and private sectors. The trend of PEA’ customers and demand of electricity grow up more than 5% each year. It seems quite well that PEA has a lot of profit each year, but in fact PEA still face decrease of sale volume in major customer such as industrial estate.

According to the government policy, PEA will be privatized within this year. PEA will be a public company that everyone can buy stock for get earning from PEA operation. Selling electricity is core business of PEA for a long time, but now status is being changed. PEA has idea to expand business into electricity service sector service as energy conservation, wiring electricity line and checking level of electricity safety since PEA has skill and experienced manpower in this field. But PEA has problem in distribution channel how PEA can make customer know and satisfy about this service since it new business for PEA.

4. SOLUTION FOR PROBLEM

4.1 CLASSIFY CUSTOMER TARGET

PEA must classify target present customer that will be customer of PEA service. The different customer will require different service from PEA such as industrial estate will need

PEA to improve energy consumption in their own factory in order to reduce production cost. But household customer may require only check electricity circuit for safety. Target customers of PEA service can separate as follow.

ʒ Factory

This customer is concerned to major customer of PEA since they buy a lot of electricity from PEA. Profit is normal achievement that they need. PEA can provide electricity service in part of energy conservation or energy efficiency to them. This service will make effective electricity consumption in their factory such as lighting, cooling and production. The technology, equipment and practice will be applied for make energy efficiency. The payback period of investment should be reasonable for sure that amount of electricity that they can reduce is money that they will earn. PEA also can apply priority strategy such as factory that use PEA service will get priority higher than other factory. PEA will send service team to check and monitor as consultant every month.

ʒ Private Sector

This want service like factory but they want their investment can get quickly pay back period not more than years. In practice, they don’t need to spend money so much about energy efficiency in their own building since they don’t know benefits that they will get. For this kind of customer, PEA will provide simple practice about energy efficiency firstly such as turn off lighting during lunch time, substitute fluorescent by compact fluorescent. When customer satisfies that the services or practices can safe cost, they will invest more money later for effective technology and equipment. Furthermore, PEA will send service team to provide knowledge what they will get from PEA service.

ʒ Household

Household is largest type of customer; more than 500,000 customers locate in this type. They use electricity only for their routine life and consume electric energy not much. They don’t want energy efficiency service like factory or private sector. PEA can provide service in part of checking their electricity circuit in their house for sure that it will safe for family. Furthermore, when they need to expand structure in their house, they can use PEA service to wire electricity line for new construction. This customer is very important for PEA to expand business since they can tell about their satisfaction to public.

4. SET DISTRIBUTION CHANNEL

After PEA know who are target customers of PEA, PEA can set appropriate distribution channel for them. As mention before different type of customer will need different service, distribution channel is the same. PEA should analyze which effective channel that suitable for various type of customer. We can classify distribution channel for PEA as follow.

ʒ Marketing section of electric office

PEA has many electric offices spread cover whole country in order to support customer need. Marketing section of each electric office is one of important component to create distribution channel. In normal, major task of this section is to maintain customer relationship with customer in their area. They will visit factory, private sector and household every month. PEA can use the section to carry information about new service of PEA as sale representative since marketing section had got family with customer and list of target customer. This distribution channel will work well with industrial estate and private section that need to deal with representative if interesting. When factorys or companies want to go in deep detail, the section can contact to head office to provide information and staff.

ʒ TV advertising and Radio Spot

PEA will use TV and radio to advertise new service to target customer, especially household section. The advertising spot will lunch during evening or holiday time when most people go back home and take rest. In advertising will have some message such as “Safe your house with PEA” or “Build your home with PEA” to reach target group who concern about safety or want to reconstruct their house.

ʒ Household customer

This is not direct channel for PEA. If people who apply PEA service feel appreciate or satisfy, good information will carry to their work place. When their company or factory which they are working need service about electricity, PEA will be first name that they choose.

ʒ Seminar and Campus

When institute or company set up seminar or technical conference about electricity service, PEA will send staff to present PEA project that had implement and get success. The objective of this channel is to show PEA knowledge and activity to public. Furthermore, PEA will join with university or institute in part of senior project or research in engineer faculty as partner. When student who take electricity course go back home, their parent will ask about topic that discuss in class. PEA service information will be transfer from student to them.

ʒ Magazine

Now a day, many magazines about electricity technology and environment are available on shelf of book store. Inside magazine, many topics such as technology, government action in this field and selling equipment is presented. PEA will transfer data form real project to paper in order to make brand awareness and information about PEA service to people. In part of environment PEA can put message “Save environment by reduce energy with PEA”. This will make good view of PEA from people.

ʒ PEA Product

As people know PEA is organization that provides electricity to whole country and be one of specialist about electricity distribution in Thailand. Many electricity standards that PEA use in working is accept to standard for other company or organization. In future, PEA should create electricity equipment brand name by PEA standard such as cable, ballast to make brand awareness for people. When people think about electricity, PEA will be in their mind.

5. CONCLUSIONS AND RECOMMENDATION

PEA would like to expand business to electricity service in order to increase revenue. Many customers locate there but the way to contact with them should be careful. The target customer separate in to groups; factory, private sector and household that make different distribution channel for them. Marketing section of electric office is first channel that PEA will take action since no cost and relationship with all group of target customer. The other channels will set later since they need time for preparation and investment. The success of electricity service not depend only effective distribution channel but also task that perform by PEA to customer. The success tasks will make distribution channel provide best result so PEA has to prepare well in staff, technology and equipment. Furthermore, PEA may employ consultant who has experience in this field to be partner for transfering know-how in marketing field.



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All about bonds

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Bonds

The other main asset class is Bonds, either Government Bonds (Gilts) or Corporate Bonds issued by our leading companies.

Gilts

Conventional Gilts carry a fixed coupon and a known price at redemption (usually par, i.e. £100). The advantage of Gilts is that they can offer a more attractive rate of return than a Building Society deposit account but again the risks must be considered.

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1) Security of capital - because Gilts are issued by the government they are the safest of all investments in that respect, as the default risk is negligible.top

) Price fluctuation - the risk with Gilts lies in the price fluctuation. Although a bond may be issued at par (100) and redeemed at par (100) for a fixed period (say 10 years) the price can fluctuate in the meantime. Complete security of capital invested can only be guaranteed if the bond is held to maturity.

) Tax treatment - the income received is taxed at source (5%) and higher rate taxpayers are required to make up the difference at the end of the tax year. Capital gains are not subject to tax (up to a large limit) for private investors, but this is a two edged sword. As with all investments that promise freedom from capital gains tax losses are non-allowable.top

Corporate Bonds

These are similar to Gilts, but with a higher default risk. Companies can go bust unlike the government. To compensate for this higher risk a higher return is available in the form of a higher yield. Bonds are graded as to their safety. G7 Government Bonds are all AAA, as are some Supra Nationals such as the World Bank and European Investment Bank. Next in line are AA Bonds, usually issued by large companies, and so on. The Bonds are graded by Rating Agencies such as Moodys or Standard and Poors, and the ratings can change up and own during the life of the Bond. Many Institutions are prevented from owing bonds below the AA rating. A further problem with Corporate Bonds is marketability. Whilst a healthy two-way market exists in the mainstream Government Bonds, this is not always the case for Corporate Bonds, which can be difficult to buy or sell during the life of the bond. Tax treatment is also less favorable than for Gilts, although this is equalized via the higher yield. Corporate Bonds therefore carry greater risk but offer greater return than Government Bonds.top

Index linked Bonds (Gilts)

These are Bonds issued mainly by the Government that do not pay a fixed coupon. Instead the Start up coupon is increased in line with inflation over the life of the bond. Also the proceeds on redemption are calculated to deliver full index linking over the life of the Bond. The main difference between conventional and index linked bonds are as follows;

1) The income stream on index linked Gilts is not predetermined, as we do not know the future rate of inflation, whereas with conventional Gilts the exact amount is known in advance.

) The Redemption value is also not known for the same reason, whereas conventional Gilts redeem at par (100)

The advantage is that the holder is protected against inflation in a way that holders of traditional bonds are not. However this index linking only fully works if the bond is held to maturity. All bonds fluctuate between issue and maturity and index linked bonds are no exception.top

The holders of index linked Gilts receive coupons, which are linked to the Retail Prices Index. If inflation rises then so does the nominal value of the coupon in order to compensate the investor for the erosion of the value of money caused by rising retail prices. The redemption value of the bond is also linked to the RPI.

The longer dated index bonds require a very large move in the price to deliver a significant change in the real yield. For example, to change the yield on Treasury .5% 04 by 1% requires a move in the market price by approximately 4 points. Although this particular bond has a theoretical duration of 1, implying a very volatile bond, this is extremely misleading, as the real yield is much more stable than nominal yields on conventional Gilts.

Coupons are subject to income tax for tax-paying investors. Any capital Gain (inflation uplift) used to be tax-free to all investors but this has now been amended to an indexation tax whereby the gain due to inflation is tax-free. Any gains over and above the rate of inflation are now taxed.top



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Sunday, September 9, 2012

China

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Please note that this sample paper on China is for your review only. In order to eliminate any of the plagiarism issues, it is highly recommended that you do not use it for you own writing purposes. In case you experience difficulties with writing a well structured and accurately composed paper on China, we are here to assist you. Your cheap custom college paper on China will be written from scratch, so you do not have to worry about its originality.

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Thursday, September 6, 2012

Energy in Toronto

If you order your custom term paper from our custom writing service you will receive a perfectly written assignment on Energy in Toronto. What we need from you is to provide us with your detailed paper instructions for our experienced writers to follow all of your specific writing requirements. Specify your order details, state the exact number of pages required and our custom writing professionals will deliver the best quality Energy in Toronto paper right on time.

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Energy stocks were the big winners on the Toronto stock exchange Thursday, as commodity prices � especially natural gas prices � rose on supply concerns.

Canadian dollar tumbles / of a cent as traders worry Fridays jobs report will disappoint

The S&P/TSX Composite Index was up .46 points to 7.4. The .1 per cent gain in the TSX energy index made it Torontos best-performing sector. Golds were down 1.4 per cent as bullion prices faded.

Petro-Canada gained $.88 to $58.84; Talisman Energy rose $1.77 to $70.0; EnCana gained $1.6 to $50.40. Oil futures gained as OPEC ministers signalled that production quotas may be cut at their next meeting in February.

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Natural gas prices surged 58 cents US to $6.4 US after the U.S. Energy Department reported a larger-than-expected draw-down in gas inventories. A cold snap and a forecast storm in the U.S. northeast were also getting some of the blame.

Canadian Natural Resources was up $1.5 to $60.5; Compton Petroleum, another producer with a big gas exposure, was up 1 cents to $6.04.

Gold futures fell $1.0 US an ounce to $40.50 US. Placer Dome shares were down 1 cents to $.55.

National Bank shares were down 1 cents to $41.50, despite reporting record 00 earnings and boosting its dividend 18 per cent.

Gildan Activewear reported weaker Q4 sales. Its shares fell 5 cents to $6.1.

Stressgen Bio shares soared almost 5 per cent (up 40 cents to $.1) after its lead anti-cancer drug got fast-track status from the U.S. Food and Drug Administration.

Biovail gained 56 cents to $.46 as its shares bounced off year-lows set Wednesday.

Abitibi-Consolidated shares gained cents to $.51.

Hemosol shares surged 74 cents to $1.64 after it inked an $18-million deal with a subsidiary of ProMetic Life Sciences to expand into blood plasma products.

The Dow Jones Industrial Average was up 57.40 points to 0.8.

The Nasdaq Composite Index gained 8.50 points to close at 168.80.

The Canadian dollar fell 0.74 cents US to 76.1 cents US. Traders said markets are worried that Fridays unemployment reports will show that Canadas job market weakened in November.

Energy stocks lead TSX to higher close

Bush removes steel tariffs

Geac Computer profit slips

Gildan forecasts sunny future

National Bank profits rise; boosts dividend

OPEC maintains quotas; sets Feb. 10 meeting

Cara Operations shares rise on new catering agreement with Air Canada

EnCana to revamp plans for Deep Panuke offshore gas project

Bombardier Q profit up on military aviation division sale

Laurentian Bank earnings up on sale of 57 branches



Please note that this sample paper on Energy in Toronto is for your review only. In order to eliminate any of the plagiarism issues, it is highly recommended that you do not use it for you own writing purposes. In case you experience difficulties with writing a well structured and accurately composed paper on Energy in Toronto, we are here to assist you. Your cheap custom college paper on Energy in Toronto will be written from scratch, so you do not have to worry about its originality.

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Sunday, September 2, 2012

Business Teamwork

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Teamwork combines the skills and the creativity of a diverse number of people in order to produce an effective outcome. Knowing the true meaning of teamwork is the first step in making a successful team. That was a major part that I was missing from previous teams , I didn’t know the true meaning of teamwork. Before this class I wasn’t a team player, I was the one member of the team out to satisfy my own needs.

Throughout this semester I have learned a lot of key points about effective teamwork. Teamwork is a major key to the success of the team. The first part of managing an effective team is understanding team processes, roles, and behaviors. The team has so many functions and its so many things you can do to make your team ineffective.

Throught the semester Dr. ramsey has taght the class some vital information about teamwork that we can use we other teams. One point that I will stress with other teams or groups is communication with in the team. The communication from all the team members would make everyone comfortable

Working on teams can normally prove very challenging, with all of the variations in

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personalities, strengths, and weaknesses, most of these issues are raised face to face with

individuals, and can be resolved by finding a room to sit and talk them out.

Since my only experience of working in a team is the first week of this semester I had a lot of arisen questions in this subject. The most basic one Is working in a team or working by myself more suitable for me? First I said “Working by myself, of course. I do not want to depend on anybody and I will not let anyone to tell me what to do” Then a sentence came to my mind Nobody is Perfect-But a Team Can Be” It made me think the whole problem over again. Working in a team should be efficie ...



Please note that this sample paper on Business Teamwork is for your review only. In order to eliminate any of the plagiarism issues, it is highly recommended that you do not use it for you own writing purposes. In case you experience difficulties with writing a well structured and accurately composed paper on Business Teamwork, we are here to assist you. Your cheap custom college paper on Business Teamwork will be written from scratch, so you do not have to worry about its originality.

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arrow electronics

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Arrow Electronics must tackle several issues in regards to its performance appraisal system for its non-sales employees. The performance appraisal problems that Arrow faces are similar to many companies in today’s business environment. Steve Kaufman, CEO, understands and stresses the importance of human resource management at Arrow; usually the first hurdle an organization must clear before delving into the specific problems associated with performance management. Kaufman has concluded that the performance appraisal system needs further adjustment in order to meet his needs. To do so, Kaufman must first identify the problems associated with the current performance appraisal system to develop solutions.

The objective of any performance appraisal (PA) system is to identify core competencies, set goals and standards to measure, maintain and improve job performance for short-term and long-term results for both the employee and the organization. Arrow will utilize the information obtained from the PA process for administrative reasons such as identifying those who deserve promotions and/or salary increases, those who should be trained as future stars of the organization, and those who should be let go. The information will be used for developmental reasons to identify career goals, problem areas, and the actions to improve skills. The PA information is also used for strategic reasons to communicate organizational goals, to align employee behaviors to those goals. Finally, this information will be used for research/evaluation purposes to analyze other human capital management practices in the organization such as recruitment practices and training.

Most of the time, the individual/employee goals differ greatly from those of the organization/manager when participating in an evaluation process. The conflicts that arise between managers and their employees contribute to the ambivalence that managers and employees have when involved in the performance appraisal system. Kaufman believes that those efforts have been unsuccessful due to his managers’ inabilities to accurately differentiate between employees when determining high versus low performers. This is demonstrated by the managers’ failure to utilize more of the rating range when evaluating subordinates. The managers tend to evaluate all employees as average performers and are reluctant to provide constructive criticism to employees. When a majority of the employees are evaluated as average, senior management is unable to determine how employees are ranked within the organization. The problem can be associated not only with the inherent conflicts between managers and subordinates, but also the fact that many of Kaufman’s managers are promoted without proper managerial training. Therefore, the less seasoned managers may not have learned the skills necessary to manage others, to objectively evaluate the employees they supervise, or to coach/mentor their subordinates.

Kaufman has also come across several biases in the PA system that stem from manager favoritism and lack of uniformity in the evaluation process. Annually disparate individual performance ratings are also witnessed. For example some employee ratings change from year to year dependent upon a number of factors including if a new manager evaluating the employee, or that employee being courted by a competitor that year. Kaufman noticed that there was disparity among the overall branches as well. Some managers evaluated on a more stringent basis than others, often leading to more successful branches having lower performance ratings than less successful branches. Favoritism is another example found at Arrow. Some managers gave employees that worked closely with them higher ratings than those that did not.

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There are also many concerns regarding the actual performance appraisal form itself. Issues of particular concern include the appraisal function is only performed once a year; performance competencies are not clearly aligned with the companies goals; the form appears to be trait based and subjective; employees receive their rating from their immediate boss (who may not be involved with the employee on day to day basis); the form uses the same criteria to address all jobs (very generic and shallow); the form at times does not take into account all aspects of an employees job functions; employees have not been allowed to give feed back on criterion; and there is not an evaluation system in place to identify whether the form and performance appraisal system as a whole are effective. Managers were also concerned that Kaufman was setting a percentage amount on how many employees should be in each rating category and was demanding that each person receive a rating of at least a two on at least one of the seven criteria for evaluation.

Arrow has grown significantly, changed its organizational focus, and acquired several companies since its inception. Senior management at Arrow must rely on the validity of the performance appraisals in determining who to keep on board when integrating new companies into the fold. To meet these goals, Arrow must reanalyze its existing PA system in order to build a more effective PA system. Arrow must begin by determining the purpose of the performance appraisal. The purposes of the PA at Arrow are to provide an accurate uniform system for performance, identify areas for improvement, identify those who should be promoted or those who have the greatest future potential, and to develop existing teams into better, more dynamic groups of people.

After determining the purpose of the PA system, the next step is to conduct a needs assessment for the organization, including position appraisals (i.e. job analysis), and individual/person analysis (these analyses can be captured by employee surveys, interviews, and focus groups). This will provide the feedback and information necessary to developing the measurements and content of the performance appraisal form. When determining the measurements and content, Arrow should determine the dimensions to be appraised, while using objective criteria based on standards set for performance utilizing the job analysis and/or judgmental criteria based on knowledge, skills, abilities and other criteria(KSAO’s � provided in job analysis), behaviors and performance. The recommended solution is a mix of both to fully assess all aspects of an individual or team performance.

In addition to the content, one must consider the rating format, or method that needs to be adopted for the appraisal form. There are several types of rating formats, however, the most preferred format for Arrow is the Behavior Observation Scale (BOS), which incorporates very specific job activities and goals. The BOS is also easy to put together, provides specific feedback to rate the employee, and provides a positive forum for evaluation process. Raters need to be aware there is a tendency to make trait-based judgments with this format. The BOS format is simple to use and understand, is strongly associated with tasks performed, and includes parallel stimulus/response, (S-R) tracking measures. The expected result is that the scores on the stimulus scale will be the same as on the response scale, and will produce the behavior desired by the Arrow executive team.

There are several factors Arrow should keep in mind when developing the content of the performance appraisal form that could impose different biases upon the rating process. Some biases already exist in the current PA environment at Arrow such as leniency tendency; giving high ratings regardless of actual performance; central tendency; giving middle of road ratings; and affect tendency; rating others according to the rater’s feelings towards that employee. There are several other biases to be aware of severity tendency; halo/horns; stereotyping; primacy/recency effects; and fundamental attribution error.

Properly developing a rater and ratee training program is essential to the PA system as well. The training will provide the raters with the understanding of how to avoid or respond to bias situations, while provide the ratees with information and expectations of what they will experience throughout the process. The raters and ratees should also be trained to understand the observations made and how to keep a diary of daily activities. The program should also incorporate frame of reference training to avoid making inferences or assumptive statements about the behavior of the ratee. When inferences versus behaviors are indicated in the PA, the ratee can become defensive, negating the desired effects of the PA system.

Defining the raters and the ratees and determining if the ratees’ performance assessments will be based on individual or team performance should be determined as part of the development of the rater program. An important determination in defining the raters is deciding who is in the best position to observe the ratee and provide feedback about the ratee’s performance. Arrow should incorporate multiple sources of feedback, such as 60degree feedback, with observation appraisals from a variety of people (at least ) who interact with the employee on a regular basis. The raters should only rate the performance criteria that are actually observed in their interactions with the ratee. This feedback can come from the ratee’s supervisors, peers, subordinates, clients and self-assessment. For 60degree feedback to be successful the organization must be prepared, therefore management buy-in is key as resources and time are critical to the process.

A useful tool for the rater to use in the interview process is an appraisal checklist (see appendix A). The appraisal checklist is essential in making sure that the rater follows guidelines and covers all items to be addressed in the interview.

The performance appraisal should be implemented so that it occurs at least every six months, and if possible, on a quarterly basis with a strong emphasis on two-way communication. In actuality, PA management is a continual exercise. When there are no surprises to either party, supervisors can cultivate desired behaviors on a daily basis. A consistent evaluation process is key in recognizing the success and validity of the system, as well as providing a method to incorporate suggestions received in a feedback retrieval process. Arrow should assess the value of the PA system by polling the raters and ratees to determine its accuracy, usefulness.

Finally, the PA plan should be incorporated within all human resource functions and management areas, such as employee training and selection processes. Training is an important function of a successful human resource management practice. As mentioned previously, there is a need for a management training program (external to the PA system training functions) that would facilitate a smoother transition for the young employees promoted to management positions. This will alleviate some of the issues raised by employees such as managers not knowing how to manage the employees they supervise.

Job analysis is an integral function in both the selection process and a solid PA system. It is important to strongly define the KSAO’s, core competencies, and job functions in order to hire and then cultivate the caliber of employees that are needed at Arrow. Incorporating the selection process, training, and performance appraisal functions into a database that can be accessed through the human resource information system is essential to providing a uniform system of checks and balances between these functions, thereby allowing Arrow to meet its goal toward developing a better workforce.





Please note that this sample paper on arrow electronics is for your review only. In order to eliminate any of the plagiarism issues, it is highly recommended that you do not use it for you own writing purposes. In case you experience difficulties with writing a well structured and accurately composed paper on arrow electronics, we are here to assist you. Your cheap custom college paper on arrow electronics will be written from scratch, so you do not have to worry about its originality.

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