Network Essay Example | Topics and Well Written Essays - 1000 words - 1

Network - Essay Example So, we use repeaters and hubs (as shown in Figure 1). Repeaters buffer the input signal and send the amplified version of the same signal to only the output port. Hubs are basically broadcasters (multiport repeaters). The signal is repeated to all ports other than the input port. Ethernet is a shared medium, so, all nodes use the same medium for transmission of data. When two nodes send data at the same instant, the data collides and its validity and integrity is compromised. Data has to be sent again. Although Ethernet uses CSMA/CD (Tanenbaum 2003) for collision yet there are still delays. So, networks are designed to avoid collisions while ensuring efficient utilization of bandwidth, providing good network throughput. In Figure 1, in case two nodes broadcast at the same time, collision occurs. Hubs/repeaters also limit the number of nodes that can be supported (see Table 1 (Technick n.d.)). So networks cannot expand beyond a limit. As at a time, the entire bandwidth can be utilized by only one node, so the overall throughput is limited. For avoiding collisions, the network traffic needs to be isolated. So the big networks are divided into smaller segments. These segments are connected together through bridges and switches. Bridges and switches (bridges with enhancements) are transparent intelligent devices that facilitate growth of LANs with the same underlying functionality. They can connect a node or a full Ethernet segment (with its own set of switches, hubs and repeaters) of even different LAN technologies on each of their ports (see Figure 2). They map the MAC addresses of nodes to each port. For each incoming frame the bridge/switch checks the destination MAC address. If the destination MAC lies on another port, only then it forwards, else it filters the frame thus keeping it within the segment it came from. The collision domain is separated. If there is a collision in one segment, the effect

The Things They Carried Essay Example for Free

The Things They Carried Essay During the Vietnam War Jimmy Cross was tasked as the lieutenant in the Vietnam War in Tim Obrien’s The Things They Carried. He took responsibility full of challenges past warfare. The war was a very psychological war for the positioned soldiers in the army. The strange environment that included shady places, waiting corners, diseases and death other than the problems they carried from home. Every soldier there held on to something that kept them bound to their previous life. Jimmy Cross carried his love for Martha. Jimmy’s love for Martha was in hesitantly controlling over his entire life. Jimmy imagined himself loving her and her loving him the same way back: More than anything, he wanted Martha to love him as he loved her, but the letters were mostly chatty(495), blinded by the truth held in the letters that Martha didnt feel the same way he continued to feel passion. Jimmy Cross feelings for Martha is said to be the cause of Ted lavender death. Surviving the war wasn’t as an accomplishment as everyone thought. Jimmy Cross figured it out the hard way. Norman Bowker was a man who represents the damage that a war leaves in a soldier after the war . Norman Bowker’s sorrow and confusion are so powerful that they prompt him to drive without direction around his hometown in â€Å"Speaking of Courage†.Bowker also wrote a seventeen-page letter to Tim O’Brien explaining how he never felt right after the war in and to hang himself at the end of the chapter. â€Å"War is often†¦ a mass release of accumulated internal rage where the inner fears of mankind of fulfill in mass destruction† was the best summary that was given about war by psychoanalyst Joost Meerloo. War is a mental land mine. The psychological damage of war is so severe that it leaves the threat of hurting someone or yourself. This is known as PTSD (Posttr aumatic Stress Disorder). Soldiers’ re-experience their time at war through nightmares or/and flashbacks. People with PTSD have difficulty sleeping and are hyper vigilance. Every war brings its certain amount deaths and sorrow. Surprisingly most death is caused by the victim themselves. It is said that more American soldier take their own life compared to the soldiers killed in fighting. Suicide rates increase on and off the combat zone. Veterans like Matthis Chiroux regret his choice to go to war. He dedicated to showing young students the side of being a soldier of the army that they don’t talk about. He runs â€Å"We are not your soldiers† lectures which send the message â€Å"Don’t become one of us†. Matthis hopes to stop more people from repeating his mistakes and becoming part of the â€Å"grim statistic†. They say that going to war is scary because of the things you can loose, one limb or maybe two. But second to death, PTSD is the worst scar to bear. To always be haunted of the memories of the thing you had to do or were done in order for you to survive. The horrifying and animalistic behavior you witness. From town massacres to killing innocent children, it will haunt them. Tim O’Brien book â€Å"The Things They Carried† basically explains the horrifying experience he went through and how he found the ability to cope with it and stay sane. But not everyone is that lucky to find a balance in their head to keep them from insanity or suicidal actions. The way I see it Tim O’Brien himself was giving us a lesson.

Climate Change Policy in the US

Climate Change Policy in the US Climate change to many is a â€Å"hoax† or a daydream, but to others it’s reality. Global warming is the rise of earth’s temperatures through carbon dioxide, air pollutants and greenhouse gases that are collected and trapped in the atmosphere. The pollutants would normally travel to space, but they trap the heat and cause the earth’s temperature to rise. Due to global warming, California has been in a long-going drought, icebergs in Antarctica are melting at a more rapid pace, and has caused disruption in marine-life. EPA, the United States Environmental Protection Agency, and the National Center for Policy Analysis has discussed the problems and solutions that the government and citizens of the world can help the earth in its stop to global warming. Ten of the policies being discussed are to reduce greenhouse gas emissions, increase energy efficiency, reduce air pollutants, and much more. The ten policies are: Eliminate all subsidies for fuel use, reduce regulatory barrier to new nuclear power plants, reduce wildfires through Alternative Forest Management, liberalize approval of biotechnology, repeal the National Flood Insurance Program, increase use of toll roads with congestion pricing, remove older cars from the road, reform air traffic control systems, remove regulatory barriers to innovation, and encourage breakthroughs in new technology. The many organizations who wants to inform the world of global warming has fought hard to give the attention that it needs and ways that humans can prevent it. Organizations such as the EPA and the NCPA have given factual debate of global warming and the serious outcomes it could bring and is bringing to the earth. The major debate of global warming policies is the costly measures it will take to protect the earth. There is also debate on if humans contribute to the issue of global warming or not. Many argue that humans can’t have any contribution to global warming, and others disagree. Either way if people believe that global warming is a hoax or not, we as humans should take the initiative to keep the earth clean and green. In 2016, President Obama visited Honolulu, Hawaii as his final family vacation as the president. During his visit, he noticed multiple things that were out of the ordinary for such a place as Hawaii. â€Å"What makes climate change difficult is that it is not an instantaneous catastrophic event. It’s a slow-moving issue that, on a day-to-day basis, people dont experience and don’t see,† says Barack. He also mentions how it is the greatest long-term threat facing the world, as well as a danger already manifesting itself as droughts, storms, heat waves and flooding. (Landler, 2016) President Obama wanted the debate of global warming to be heard before the end of his term. Obama presented ideas to cut planet-heating emissions in the United States. Since his call of awareness, he has been ridiculed by republicans and supported by democrats. Republican, democrat politicians and even economists believe that global warming is a hoax and that Obama is abusing his power a nd this decision could cause harm to the economy Obama said, â€Å"When you see severe environmental strains of one sort or another on cultures, on civilizations, on nations, the byproducts of that are unpredictable and can be very dangerous. If the current projections, the current trend lines on a warming planet continue, it is certainly going to be enormously disruptive worldwide.† Obama’s stance on the state of global warming has yet to change, and would be likely to never change. In 2008, the presidential race between McCain and Obama global warming was brought into debate. They both held the same stance on global warming; believing that it’s caused by humans and Congress should enact legislation to cap greenhouse gas emissions and force polluters to buy and trade permits that would slowly lower overall emissions of climate-warming gases.  (Davenport, 2016) Obama’s cap and trade bill failed through was blocked by senators from the democratic and republican parties in 2010. In the same year, the Tea Party clutched the cap and trade bill as a defense to politics/ the presidency. A year before that, the attempt to construct a United Nation climate change treaty in Copenhagen failed as well. Data proved that U.S. citizens and politician’s opinion on global warming was not the same as President Obama’s, and the discussion of global warming/ climate change fell into shambles. â€Å"There is the notion that there’s something I m ight have done that would prevent Republicans to deny climate change,† Obama said. Republicans, such as Senator Lamar Alexander of Tennessee, were willing to compromise to a more limited climate bill that would restrict emissions only from power plants (Landler, 2016) but Democrats could not agree to such a bill as that. Republican Alexander mentioned, â€Å"The White House wanted 60 votes on climate, and they weren’t interested in Republican votes. Now it’s back to power plant only. The lesson here is that if people who want a result would be a little bit more flexible, they might actually get one.† In Obama’s second term, he took the initiative to cut through Congress with the discussion of global warming/ climate change. Obama and his team establishes the Clean Air Act of 1970 that gives the Environmental Protection Agency (EPA) the authority to issue regulations on dangerous pollutants. (Davenport, 2016) Obama revealed the Clean Power Plan: a se t of Clean Air Act rules that would end several coal-fired power plants. Many critics imposed that Obama’s plan would damage businesses who flourish on coal-fired power plants. He responded with, â€Å"What we owe the remaining people who are making a living mining coal is to be honest with them, and to say that, look, the economy is shifting. How we use energy is shifting. That’s going to be true here, but it’s also going to be true internationally.† Fast forward to 2017, President Trump has dismantled Obama’s engagement to the stop of global warming/climate change. He has ordered the federal government to retreat from the battle against climate change proposed by Obama destroying the policies that made America a global leader in curbing emissions. â€Å"My administration is putting an end to the war on coal. I am taking historic steps to lift the restrictions on American energy to reserve government intrusions and to cancel job killing regulations,† Trump explained. Following Trump’s order, the government will no longer apply the â€Å"social cost of carbon† (Halper, Trump Orders Government to Dismantle Obamas Climate Change Policies , 2017) allowing for factories, power plants, and  (Halper, Trump Orders Government to Dismantle Obamas Climate Change Policies , 2017) etc to continue to plant harmful gases into the atmosphere. Trump has called for the attention of global warming and climate change to be cut down â€Å"because global warming is a hoax created by China†. Officials have stated that the order instructed from Trump would delete all of Obama’s, EPA, and other environmental agencies work. It has been said that the policies created by Obama and others would cause economic catastrophe. Environmentalists have damned the changes being brought forth by Trump mentioning that the cutback of climate change policies will put humans and the earth at risk, regardless of how long it will take for everyone to â€Å"see† climate change. â€Å"Obama created a labyrinth of rules and orders and regulations to cement his agenda across practically every agency,† Tom Pyle, president of the American Energy Alliance mentioned. Many of the members in environmental agencies agrees that Obama’s plan was for the benefit of human life on this earth and Trump is doing everything in his power to eliminate Obama’s policies. Work Cited Climate Change: Basic Information. EPA. Ed. EPA. Environmental Protection Agency, 17 Jan. 2017. Web. 29 Apr. 2017.Forster, Katie. Donald Trump to Scale Back Importance of Climate Change in Government Decisions, Says White House Official. The Independent. Independent Digital News and Media, 15 Mar. 2017. Web. 29 Apr. 2017.Hirschfeld Davis, Mark Landler and Coral Davenport, Julie. Obama on Climate Change: The Trends Are Terrifying. The New York Times. The New York Times, 08 Sept. 2016. Web. 29 Apr. 2017.MacMillan, Amanda. Global Warming 101. NRDC. Amanda MacMillan, 04 Apr. 2017. Web. 29 Apr. 2017.NCPA. Ncpa.org. Fox News, 5 Nov. 2015. Web. 5 Nov. 2015Trump Orders Government to Dismantle Obamas Climate Change Policies. Los Angeles Times. Ed. Evan Halper. Los Angeles Times, 28 Mar. 2017. Web. 29 Apr. 2017.

Extrinsic Motivation Essay -- essays papers

Extrinsic Motivation Extrinsic motivation is an encouragement from a force from outside one’s self. These forces from outside are easily described as rewards. A reward is used to bribe a student into performing or completing an activity which they would not do without this reward. Certain types of rewards that are common are stars, red-light green-light, and stickers. These rewards seem to be the most common among teachers. They seem simple and harmless, but the child must not learn to only perform for a reward at all times, but for him or herself. The theory that extrinsic rewards create lasting change is false. There have been studies to prove that for example, money as a reward has been proven unsuccessful (Rehmke-Ribary). To praise students is not always a bad idea. Students expect to hear feedback about an activity or a response they give. Especially when the students are correct they feel better about themselves when the teacher recognizes their correctness. There are ways to praise without taking it too far. First, be sure to use appreciations that are honest. For example, â€Å"Thanks, that was very nice of you.† The appreciation isn’t based on work or an activity, but for showing politeness, or positive behaviors in the classroom. Students are motivated or unmotivated from every factor in a classroom. Second, students are often wrong when answering questions and it is the teacher’s job to make sure if the student gets the wrong answer that they are not discouraged from trying again. An idea to solve this problem from occurring is to show the student that the mistake they have made is ‘not that big of a deal.’ A third idea of showing praise is to make the students feel as if their input or ef... ...m This site describes what a teacher should say or not say in a classroom setting to students. It gives in detail examples of what should be said to motivate students. Rehmke-Ribary, E. What us intrinsic motivation? Retrieved October 12, 2004, from http://web.archive.org/web/20040222031553/seamonkey.ed.asu.edu /~jimbo/RIBARY_Folder/whatis.htm Rehmke-Ribary gives a great definition of what intrinsic motivation is, in a easy understanding way. Also, this site describes the problems with intrinsic motivation. Student Learning. (2004). Retrieved October 21, 2004, from http://caret.iste.org This article describes the use of technology in the classroom dealing with the aspect of motivation. Wagner, D. (March 2002). Student motivation and parental involvement. Retrieved November 21, 2004, from http://csmstu01.csm.edu/st03/dwagner/new_page_2.htm

A Good Leader Influence a Group of Individuals Essay

Assignment of â€Å"a good leader influence a group of individuals to achieve a common goal and perform well, without having to watch over them† Introduction Leadership is always considering as an important managerial topic because a good leader does not only able to guide behaviors from followers, but also leads individuals within an organization to achieve their common objectives (Morrill, 2010). The commonly accepted definition of leadership is contributed by David and Vince (2008, p2), who defined leadership as a person has â€Å"abilities of leading a group of people, and also has abilities of supporting group of people to achieve common objectives†. More specifically, Bass (1990) defines leadership as the ability to adapt the setting so everyone feels empowered to contribute creatively to solving the problems. The primary aim of this assignment is to critically discuss the topic of â€Å"a good leader influences a group of individuals to achieve a common goal and perform well, without having to watch over them. In order to answer this question well, the author selects Steve Jobs as the leader, and then with reference to Apple Inc to discuss why a good leader as Jobs influences group of individuals without watching them. As an essay based assignment, the author organizes this paper in three main parts, including introduction, main body and conclusion. In introducti on section, the definition and importance of leadership are briefly discussed along with primary aim of this assignment. In the second part, the author discusses principles of a good leader; stages of leadership research, employee motivation and organizational culture in detail to discuss why Jobs influenced group of individuals in Apple Inc without watch them. Finally, in conclusion section, the author summarizes findings of this paper and explains how the primary aim of this assignment has been fulfilled. Main Body After reviewing wide range of leadership literatures, the author found that the debate on principles of a good leader is never stopping. In many researches, such as Alexander and Buckingham (2011); and Weidemeyer (2004) commonly argue that a good leader does not only need strong leadership skills and competences, but also needs to behavior morally and ethically. However, this argument has intensively been argued by many contemporary leadership researchers. For example, Ciulla (2004) argues that great leader is morality magnified. In addition, Jennings (2006) also argues that great men are always and almost bad men. In order to provide evidences to support these arguments, Jennings (2006) points out the seven signals of ethical collapse to describe misbehaviors from leaders. In recent dark side leadership researches, a mutual argument can be summarized as â€Å"it is not necessary for a good leader to be a good person†. For example, Conger (1990) argues that different leaders have different dark personalities in their leadership style. Even many very great leaders cannot avoid these dark personalities because they are unconscious. Furthermore, Liu et al (2012) argue in contemporary environment, in order to achieve organizational objectives and motivate individuals, leaders need to behavior unethically and unmorally to ensure the benefits of their organizations. In order to support this argument, Liu et al (2012) use Sir Alex Ferguson and Hafner of Playboy as examples to explain in some extent why misbehaviors from leaders are acceptable. In summary, there is no doubt that leaders should behave morally and ethically to provide positive guidance for society and followers. But ethics and morality are not basic principles to measure a good leader. Instead, the strategies used by leaders to motivate individuals and to achieve organizational objectives are principles of a good leader (Shear et al, 2012). On the other hand, there are five stages of leadership approaches have commonly been discussed in leadership literatures, including trait approach, behavioral approach, situational/contingency approach, creative approach, and post-charismatic& post-transformational approach of leadership (Parry and Bryman, 2006). Information of each stage is summarized in below table one. Table one: stages of leadership theory and research (Parry and Bryman, 2006)| Trait Approach:Dominant until late 1940s assumes leaders born, not made| Style (Behavioral) ApproachHeld sway until late 1960s- effects of leadership on those led| Contingency/Situational ApproachPopular to 1980s-situational factors are focus for understanding leadership| Creative Leadership ApproachSince 1980s, leader defines organizational reality through articulation of a vision| Post-Charismatic or Post Transformational Emerged late 1990s, distributed leadership, cooperative community, ship and spirituality| As table one illustrated, the research of leadership can be summarized in five leadership stages. In this paper, the author briefly introduces first three stages of leadership approaches, and then discusses creative leadership approach in detail because creative leadership is used as basis of this paper and will be applied with reference to Jobs and Apple Inc in later sections. Trait approach of leadership is considered as the first stage of leadership research and dominates in 1940s (Northouse, 2003). In this leadership approach, people believe characters of leaders are born from nature. So that they use physical traits, personal attributes, intelligence, values and self-confidence these factors to distinguish leaders and non-leaders (Bass, 1990). Style (behavioral) leadership approach is recognized as the second stage of leadership research, and it is emphasized on what a leader does rather than identifying who would be an effective leader (Bass, 1990). As table one demonstrated, the behavioral leadership approach was appeared in later 1960s. The most important progress from trait approach to behavioral approach is that behavioral approach attempts to answer the question of what leadership style is most effective. In order to answer this question, researchers such as Kurt Lewin assumes behaviors from leaders can be observed more objectively than traits and behaviors can be measured and taught (Lussier and Achua, 2010). Thirdly, situational and contingency leadership approach argues that leaders are not born from nature (Lussier and Achua, 2010). Situational and contingency approach points out that main reasons for people to be leaders are because they suitable with the working situations (Oostrom et al, 2012). As a result, a person probably be a leader in one situation, but not be a leader in another. In situational and behavioral approach, Oostrom et al (2012) point out that personality, style and behavior of effective leader are dependent on the requirements of the situation. Thus, there is no one best way to lead. Traits and behaviors from leaders can all be effective in different situations. Similarly, the best leading style or behavior are determined by situational or contextual factors (Bass, 1990). There are many real life examples can be seen as evidences to prove the accuracy of situational and contingency leadership approach. For example, Alex Ferguson and Jose Mourinho are all great football coaches, but they are not leaders in their player career. In addition, Lionel Messi performed as a god in the team of Barcelona, but also provides rubbish performances in Argentine National Football Team. Thus, these real life examples can fully indicate that successes of leaders are dependent on situation and contingency. Creative leadership approach is emerged in 1980s, and has wide applications even in today’s business environment. According to Bass (1990), there are three different approaches are contained by creative leadership approach, including transformational approach (Bass, 1985), Charismatic approach (Conger, 1989) and visionary leadership (Mintzberg, 1989). In addition, the biggest different between creative leadership and previous leadership researches is that in creative leadership approach, leaders focus on intellectually motivate employees, and then to earn performances from them beyond expectation (Chuang et al, 2011). However, previous leadership researches focus on an exchange between leaders and followers. Leaders provide rewards (e. g. extrinsic and intrinsic) to employees, and in return they contributed their compliancy and labors to leaders (Liu et al, 2012). In this paper, the author focuses on discussing transformational approach and charismatic approach, and with references to Jobs and Apple Inc to see why a good leader influences group of people without watch them. According to Bass (1985), transformational leadership approach focuses on inspiring and motivating followers. It can be defined as leaders have abilities to inspire and motivate followers to achieve goals greater than originally expected. In case of transformational approach, internal rewards are important to followers rather than external rewards (Bass, 1985). General speaking, it means that followers or individuals within an organization treated intrinsic rewards more important than extrinsic rewards. In motivational theories, many scholars contributed different ways to distinguish needs and expectations from individuals of an organization. For example, Maslow (1987) points out the famous hierarchy of needs to describe different expectations from individuals at the workplace. The hierarchy of needs include physical needs (e. g. sex, food), security needs (e. g. working condition), love and belonging needs (e. g. family), esteem needs (e. g. respect), and needs of self-actualization. In addition, Maslow (1987) argues that needs from individuals are always changing. Once needs from lower layers of the hierarchy are satisfied, needs from individuals would be turned from higher level of the hierarchy. In addition, McGregor (1960) also contributes the theory x and theory y as basic theories to recognize nature of human being. In McGregor’s the human side of enterprise, the scholar (1960) argues that the nature of human being can be classified in two different categories, including theory x and y. In theory x, McGregor (1960) argues that people are naturally lazy and dislike work. Money is the only factor to motivate them at work, so that they need to closely be directed and supervised. In the opposite theory y, McGregor (1960) argues that work is a natural experience of human life. Most of them are self-motivated and self-controlled, and focused on intrinsic rewards rather than extrinsic rewards. There are four factors commonly described as transformational factors of transformational approach, including idealized influence, intellectual stimulation, inspirational motivation, and individualized consideration (Morrill, 2010). Idealized influence describes that leaders use admiration, respect, and trusts and put needs of others before personal interests to motivate employees. In addition, inspirational motivate means that leaders motivate and inspire others by providing meaning and challenge to them (Bass, 1990). Thirdly, intellectual stimulation refers to leaders encourage innovation and creativity at workplace, and motivate individuals and followers by approaching old things in new ways. Lastly, individualized consideration means leaders attend to individuals needs for growth and achievement, and create new learning opportunities, accept individual difference and avoid close monitoring (Bass, 1990). In case of Apple Inc, Jobs is a leader who uses transformational factors to motivate individuals within the organization. According to Mayo and Benson (2006), as a leader of Apple Inc, Jobs firstly trusts and respects individuals of the organization, especially to the group members. In addition, Mayo and Benson (2006) also express in Apple Inc, Jobs never closely direct and supervise individuals. In order to encourage their creativity and provides excellent working condition, Jobs even not set any HR department in Apple Inc. Thus, it does not only satisfy with the principles of idealized influence in transformational approach, but also satisfies with the principles of previous stated motivational theories. Steve Jobs uses respects and trusts to others as basis to motivate and influence group of people in Apple, and without watch them. In addition, Jobs also focuses on providing meaning and challenges to group of people in Apple to motivate and influence them. According to Jobs â€Å"if you do something and it turns out pretty good, then you should go to do something else wonderful, not dwell on it for too long. Just figure out what’s next†. It is a famous Quotation from Steve Jobs. In this Quotation, it is easy to carry out that Jobs is a person who likes perfect. Steve Jobs does not dwell on the current successes. Instead, he focuses on providing meanings and challenges to himself and group of individuals in Apple, and motivates them to complete tasks beyond expectations. It is useful to achieve the common goal of Apple Inc which is described as â€Å"to provide best technological products to customers around the word† (Apple. com, 2013). Many individuals in Apple Inc are become as passionate to deal with highly challenging tasks that they have been done before. It does not only mean Steve Jobs has transformational factors to influence a group of people, but also understands how to use goal setting theory in motivating employees to achieve challengeable, but possible goals. Thus, there is once again indicates that a good leader influences a group of individuals without watch them. On the other hand, Steve Jobs is also a charismatic leader in Apple Inc. According to Michaelis et al (2009), charismatic leadership is defined as a leadership based on leader’s abilities to communicate and behave in ways that reach followers on a basic, emotional way to inspire and motivate. General speaking, charismatic leadership refers to a process of establishing self-images and charms by leaders rather than using authority and external power to motivate and influence people (Tuytens and Devos, 2012). In case of Apple Inc, there is no doubt that Steve Jobs is a charismatic leader. Firstly, even though Steve Jobs was passed away in 2011, Apple Inc still uses Jobs’ quotations, pictures, and other stories to motivate individuals of the organization (Apple. com, 2013). Innovation, focused on detail and perfection and creativity are recognized as both important characters of charm from Jobs. Until today, these characters of charm are seen as important cultural characters in Apple Inc. According to Morrill (2010), organizational culture is defined as the values and behaviors that contribute to the unique social and psychological environment of an organization. It bases on an organization’s experiences, philosophy, values and expectations. It expresses the self-image of an organization, the ways of individuals work in the organization, and how the organization interacts with external word and its expectations (Morrill, 2010). It is unique to any organization, and can be influenced by many factors. For example, the characters of leaders, working methods are all important factors to influence the cultural characters of an organization (Northouse, 2003). In case of Apple Inc, Steve Jobs is a charismatic leader and deeply injected his charms of focusing on innovation, adventure and creativity in culture of Apple Inc. According to Apple. com (2013), the culture of Apple Inc is described that innovation and adventure, focused on group work and details. Thus, there is no doubt that as a charismatic leader, Steve Jobs puts charms in establishing the cultures of Apple Inc, and uses charismatic factors to influence group of individuals in Apple even he was passed away. Individuals in Apple Inc are working with a common goal, which is to achieve the commitment of delivering great technological products to customers around the world (Apple. com, 2013). As a result, there is also no doubt that a good leader as Steve Jobs influences a group of individuals to achieve a common goal and without watch them. Even he passed away; the charms and personal characters of Steve Jobs are still driving individuals to work with the common goal of Apple Inc. Conclusion The primary purpose of this paper is to answer the question of â€Å"a good leader influences group of people to achieve a common goal and perform well, without having to watch over them†, the author selects Jobs as the leader and Apple Inc as the case company. In order to achieve the primary purpose, this paper firstly discusses the principles of good leaders as background. The findings of this section indicate that it is not necessary for a good leader to be a good person because there are conscious biases as well as unconscious favors of people. Therefore, it is impossible to avoid personalities from many leaders to against the ethical and moral issues. In the second part, the author introduces five stages of leadership researches as basis, and then discusses why Jobs is a transformational and charismatic leader in case of Apple Inc. In order to answer the essay question in comprehensive way, the author also introduces employee motivation and organizational culture synthesizes with leadership theories in the second part. Findings of this section indicate that a good leader understands how to use leadership skills as well as motivational skills to influence group of individuals to work with a common goal, and perform well. In addition, it is also not necessary for leaders to watch them because in this context, leader always used intrinsic motivation or injected charismatic characters in an organization’s cultures to influence individuals of the organization. With reference to Jobs and Apple Inc, there is no doubt that Jobs influenced individuals of the company to develop and create new products in achieving the common goal of delivering best technological products to customers. In addition, Jobs also establishes a culture of focusing on details and perfection of their products from his personal characters. It is also influenced group of people from Apple Inc to deliver the best products to customers and is one of the principal reasons to Apple Inc’s success of today.

HRM Models

This report is about human resource management. Betcherman et al. (1994) defined human resource into three aspects: organizational and job design, organizational culture, and personnel policies and techniques as to ensure that the workers full prospective or potential can be achieved. According to Storey (2001:5) Human Resource management is defined as ‘a distinctive approach to employment management which seeks to achieve competitive advantage through the strategic deployment of a highly committed and capable workforce, using an integrated array of cultural, structural and personnel techniques. Marchington and Wilkinson, (2002) identified through research that people really do make the difference in human resource management. The truth behind this is that it’s supported on ‘high-commitment’ model which ensures that investing in people/human resource makes good business. This lay a foundation for the human resource professionals to make point that people rea lly are their most important resources to the organization which now leads to work out how principals can be then turned into practice. This report will show how human resource works in sports industry and there will be critical examine on hard and soft model followed in the Bolton Wanderers case study and which model is more prevalent and successful in day to day operations and management activities. Human resource management is the most important department in any organisation to improve their knowledge and increase a good strategy towards employees. Mainbody According to Storey (1992) there are two ideal and essential models of Human resource management one is ‘hard’ also known as Michigan model and other one is ‘soft’, i. . , Harvard model. The hard model of human resource management highlights the term ‘resource’ which adopts a logical approach in the management of employees in which people are taken as financial factor where cost must be controlled. Whereas, the soft model accentuate ‘human’ and hence training and development is given more emphasis in this model on a closer look to ensure the employee development and that the employees are adopting the strategies and policies so that a high level of staff can be achieved who can deliver their skills and give a better turnover in the competitive environment. Bratton and Gold, 1999) Michigan Model Legge (1995) states that in hard model there is a trend to see employees as to be supervised and mastered following quantitative, intellectual and calculative approach to get ensured that the work force is expeditiously positioned to get the maximum advantage. It is concerned with the no of employees and whether every single person is meeting the goals of the organisation. (Fombrun et al. , 1984). While planning the policies one part of hard model; administration need to know what is the turnover rate and is based more on statistics rather than behavioural science of human being (employees) and is more appropriate in sports sector where pressure of work is much more. Furthermore Michigan model is the human resource cycle, which starts from development, move forward to selection, performance, and appraisal and than back to development or to Reward. Related to Bolton Wanderers football club case study The development of the football club is the important part, but at Bolton Wanderers, it was not a good situation, because those were posted financially and have a high debt burden. The reason was a newly formed football stadium, when in 1999 Sam Allardyce was appointed as manager with the premises to promote the club from First Division to Premier League and to establish there with given opportunity. Moreover Bolton Wanderers ensure that every member was feeling to be a part of Bolton ‘family’. Furthermore the heavy debt burden effected on selection highly, because they could not attract the best players with huge salary. Thereby they decided to expand their scouting network and academic facilities to afford their own youth to be selected for the first team and prepared to play in a high level. So that many players, who was playing in first team came from their own team. So the club was trying to gain the commitment and goals of the players. The purpose of managing the system of rewards within the organisation is to attract and retain the human resources the organisation needs to achieve its objectives. To retain the services of players and maintain a high level of performance it is necessary to increase their motivation, commitment and flexibility by a variety of means, including appropriate management style, competitive compensation package and supportive culture (Armstrong and Murlis, 1994). This way clubs align their player and organisational objectives while the reward management is highlighted. Rewards not only comprise of just wages or salaries, bonus, commission, profit sharing but also non-financial rewards like for e. g. opportunities for career development. McKenna and Beech, 2002) Bolton Wanderers offered pay and a reward package to players and coaching staff, which was one of the some lowest costs within the Premier League. In addition the high investment in sport science was made that the player should be fit and can play and also the performance should be good. This technique was attracting some outstanding players because through the operation of these technique was for them possible to expand their playing careers. In addition players could advertise themselves for best club due to good performance. According to Cowling and mailer (1998) appraisals are essential to get a brief idea about the course of information which constantly elucidates the purpose and aims in pursuit of mutually agreed target between managers and subordinates. There are contradiction like people who support limiting its use, argues that linking it to pay can demoralize attempts to provide genuine criticism and an emotion-free review of strengths and weakness while the others who do think that the pay should be linked to appraisals debate that it helps in motivation and the employee involvement. In the sports context, employees in those cases receive appraisal from the news-channel, radio, newspaper and public. The satisfaction of the public is very important so they try to receive a good appraisal, which sometimes are not possible. A 360-degree performance based feedback can be done to obtain a collective review of the individual’s performance. A 360 degree, also known as multi-ratter feedback, is an appraisal technique in which ratings from numerous people like peers, boss, customers, team members, staff and self is taken and then from that feedback appraisals are done for the individual. Stone, 1998) Harvard Model In soft model alternative approaches through which problems can be solved are followed. (Beer et al. , 1984). The organisation attempts to balance the needs of the employees with the organisational requirements. The feelings of the employees are kept in mind rather than just thinking them as a mode of earning profit. The employees consent is seen notably. Staff dedication towards work is increased when they are involved in decision making and job design process. Furthermore Harvard model is the human resource system, where employees influence on human resource flow, reward and work system. Related to Bolton Wanderers Football Club case study As we can find out in the Bolton Wanderers case study training and development has been focused; to understand and learn about the organisation, their policies and implement them in the right way. Training comes under the soft model of human resource management. Training basically means learning the skills that are required in the organisation which is generally structured by the policy makers in such a way that it will develop the individual for the required work. There are two types of learning- learning as acquisition in which qualifications and skills attained are from formal structured courses; and learning as participation in which learning takes place while participating within the set of fellow workers. (Bach, 2005) Moreover the players and coaching staff influence the work system, through the decision if the player or the coach will work with each other. In Bolton Wanderers was the operation that the player from the youth has not any chance to choose the coach, because the still need a chance to play in first team and think afterwards to move to another club if there is any offer. Furthermore the reward is influenced by players to deliver a good performance, e. g. Bolton Wanderers was playing in season 2004-5 since 4 Years in Premier League and they also was attend in UEFA cup. Human resource flow conduced to motivated players from other players or coach. It is a high impact of employee staff such as coaching staff and players. Due to it increase the team work and every one is for each other there. Talking about hard model and soft model in the report, when we apply hard model which just focuses on placing skilled people required for the organisations objectives. Application of this model to the Bolton Wanderers which aims at reducing the costs ultimately leading to control and decrease the debt by following feedback method tells us that even when its important, applying Hard model does help in this case, as skills are required, rather than production. Finding right applicant for the right job is necessary rather than getting them in the job. Right recognition of an applicant is also very important as it saves the time for another recruitment it turns fail and thus, adds up to another cost in the accounts of an organization. Millmore et al. 2007) Conclusion To conclude the report it is better understood and observed that the applications of different models, practices and strategies have different implications depending on which industry we analyse the working and performance of the employees. Industries like banking or financial sectors have different set of rules to handle their employees inclining more on hard models of human resource mana gement. Where the sport industry also being success oriented centring the employees through their performance is inclined towards hard models.

the evaluation on smoking tobacco Essays

the evaluation on smoking tobacco Essays the evaluation on smoking tobacco Essay the evaluation on smoking tobacco Essay The evaluation of smoking As of 2008, there were 46 million adult smokers in the United States, according to the Centers for Disease Control (CDC). That means 20. 6 percent of people over 18 expose themselves to the disadvantages of smoking cigarettes (Livestrong. com). Smoking usually begins at a young age and progresses through the years. Research says adolescents begin to smoke because it makes them look cool. Peer pressure is a major factor in the question, why do adolescents begin to smoke. Smoking also ppeals to young adults because most parents wont allow smoking, therefore, it becomes an adventure, or experiment. Before an adolescent realizes how dangerous smoking really is, they become addicted and become another CDC statistic. Smoking harms nearly every organ of the body, causes many diseases, and reduces the health of smokers in general. As I am sure most are aware, smoking is a huge health risk. If youre not a smoker being around a smoker is almost unbearable. Smokers have a distinct overpowering smell. Weather you smoke or are around a smoker you cannot escape the smell. The smell locks to your clothing and is hard to get rid of, and nearly impossible to mask. Not only is the smell disgusting, it is also embarrassing. Having parents that smoke I know the embarrassment from experience, youre suddenly the stinky kid in class and no one wants to be the stinky kid. Not only does the smell bother a nonsmoker, but second hand smoke is Just as dangerous as lighting a cigarette up yourself. WebMD states, When you breathe in smoke that comes from he end of a lit cigarette, cigar, or pipe (side stream smoke) or that is exhaled by a smoker (mainstream smoke), youre inhaling almost the same amount of chemicals as the smoker breathes in (WeMD. om). Not only are smokers putting themselves at risk, but they put everyone around them at the same risks they are exposing themselves to. IVe always had the conception that smokers dont care about anyone but themselves. Not only do smokers not care that they are exposing themselves to many health risks, but they are putting the people around them at the exact same risks. There is an endless amount of health risk s to smokers, most of which can be deadly. The national cancer institute claims there are 50 known cancer-causing agents in tobacco smoke. Ehow health states, Smoking is the leading cause of cancer and cancer-related deaths, and it has been linked to stomach, throat, mouth, kidney, bladder, blood and lung cancer (Ehow. com). Along with cancers, the tar and nicotine in tobacco causes yellowing of the teeth, cavities, tooth loss, and leaves you with an unpleasant smile. Smoking harms nearly every organ of the body, causes many iseases, and reduces the health of smokers in general. Smoking is close to my heart because I have grown up with it my entire life. I hate smoking; to me there are no advantages to it. Some experts say that smoking decreases the risk of obesity, causes to tobacco use, the disadvantages outweigh the advantages. To me cancer, cardiovascular disease, odor, and dental problems hugely outweigh the very few advantages. Im not a smoker, and never will be so I will never truly understand why tobacco smokers put not only their health at risk, but others around them.

A Biography of Notorious Auschwitz Doctor Josef Mengele

A Biography of Notorious Auschwitz Doctor Josef Mengele Josef Mengele (March 16, 1911 - February 7, 1979) was a Nazi SS doctor who experimented on twins, dwarves, and others at the Auschwitz Concentration Camp during the Holocaust. Although Mengele looked kind and handsome, his heinous, pseudoscientific medical experiments, often performed on young children, has placed Mengele as one of the most villainous and notorious Nazis. At the end of World War II, Mengele escaped capture and is believed to have died in Brazil 34 years later. Early Life Born March 16, 1911, in Gà ¼nzburg, GermanyParents were Karl (1881-1959) and Walburga (d. 1946), MengeleTwo younger brothers: Karl (1912-1949) and Alois (1914-1974)Nickname was Beppo1926 diagnosed with osteomyelitis Education and Beginning of WWII 1930 graduated from the GymnasiumMarch 1931 joined the Steel Helmuts (Stahlhelm)January 1934 SA absorbed StahlhelmOctober 1934 left SA because of kidney trouble1935 awarded Ph.D. from the University of MunichJanuary 1, 1937, appointed a research assistant at the Third Reich Institute for Heredity, Biology, and Racial Purity at the University of Frankfurt; worked with Professor Otmar Freiherr von VershuerMay 1937 joined the NSDAP (member #5574974)May 1938 admitted to the SSJuly 1938 awarded medical degree by University of FrankfurtOctober 1938 began basic training with the Wehrmacht (lasted three months)July 1939 married Irene SchoenbeinJune 1940 joined the medical corps (Sanittsinspektion) of the Waffen SSAugust 1940 appointed an Untersturmfà ¼hrerAttached to Genealogical Section of the Race and Resettlement Office in occupied PolandJune 1941, sent to Ukraine as part of the Waffen SS; received the Iron Cross, Second ClassJanuary 1942 joined the Waffen SSs Viking Division medical cor ps; earned the Iron Cross, First Class by pulling two soldiers out of a burning tank while under enemy fire; also awarded the Black Badge for the Wounded and the Medal for the Care of the German People; wounded End of 1942 reposted to the Race and Resettlement Office, this time in its headquarters in Berlinappointed to Haupsturmfà ¼hrer (captain) Auschwitz May 30, 1943, arrived at AuschwitzConducted medical experiments on  twins, dwarfs, giants, and many othersSeemingly constant presence and participation in the selections at the rampResponsible for selections in the womens campcalled Angele of DeathMarch 11, 1944, his son, Rolf, was bornSometime middle of January 1945, he fled Auschwitz On the Run Arrived at Gross-Rosen camp; then left before Russians liberated it on February 11, 1945Spotted at MauthausenCaptured as a prisoner of war and held in a POW camp near MunichReceived papers from fellow prisoner, Dr. Fritz Ulmann; for vanity reasons had not gotten blood type tattooed beneath arm, American Army did not realize he was a member of the SS and released himAliases include: Fritz Ullmann, Fritz Hollmann, Helmut Gregor, G. Helmuth, Jose Mengele, Ludwig Gregor, Wolfgang GerhardRemained on George Fischers farm for three years1949 escaped to Argentina1954 his father came to visit him1954 divorced from Irene1956 had his name officially changed to Josef Mengele1958 married his brother, Karls, widow - Martha MengeleJune 7, 1959, West Germany issued its first arrest warrant for Mengele1959 moved to Paraguay1964 the Universities of Frankfurt and Munich withdrew his academic degreesAssumed that his remains were buried in Embu, Brazil in a grave marked Wolfgang GerhardBelieved to have d ied on February 7, 1979, on the beach at Bertioga in Embu, Brazil while suffering a stroke while swimming in the ocean. February 1985 a public trial, in absentia, was held at Yad VashemIn June 1985, the body in the grave was exhumed for forensic identification.

Political Communication and Media Reportage Essay

Political Communication and Media Reportage - Essay Example Therefore, a certain candidate should be differentiated from another one. It is no longer enough for politicians to have solid political platforms and to have experience in public service. Politicians these days need to have mass appeal and be celebrities in their own right. Sometimes, the competent political candidates lose out to less competitive ones because of the inability to recognize this. "To become a celebrity requires recognition as a star player in the field of sports, entertainment, fashion, or politics (Kellner 2003)." Our celebrities today are not only concerned about their professionalism and their performance in their fields of specialty, but of the image they project and the way they present themselves. Politicians have turned into media celebrities and their lifestyles have become as important as their policies. Style and presentation, as well as emotions, not only substance, are important. This is what Lilleker (2006) calls the "aestheticisation" of political communication. We're used to movie stars and talents being concerned about projecting a certain kind of image to the public. But now, even the politicians need to be concerned about their image and the way they appear in public to stay ahead of the game. This shows that the public perception of those who appear in the media are not accidental, but are somehow planned or executed. With the seemingly large scope of the media and the limitless possibilities, the political actors and the media are still able to offer what seems to be a personal encounter to their audience. According to Nass & Reeves' Media Equation Theory (1996), people respond unconsciously and automatically to communication media as if it were human. It is possible, therefore, for the individual to engage in interpersonal communication with the media, however impersonal it may seem. For instance, people know that there is no way that computers or television sets would respond to them, and yet they talk to them as if they were real people. A number of people think that they already know a certain actress or celebrity as well as they know their closest friends, simply by tuning in to the latter's interviews and watching anything with the celebrity on it. This very nature of interpersonal communication between the individual and the media could have resulted to extreme adoration or hate toward the celebrity. But still, more often than not, it is easier to make it work for the celebrity. Based on these observations, politicians now opt to guest on popular talk shows. They want to seem like plain folks, one of the people, as well as to appear nice and attractive. As what we've seen in the former president Ronald Reagan's case, suffering from a debilitating disease or the idea of being vulnerable and human, appeal to the public. Reagan, the first president, who was an actor by profession, had a good plotline for his presidency. He advocated the triumph of market capitalism and the defeat of communism in the Cold War. Yet, during his time, the wealth distribution became uneven, with the wealth going upward, increasing the divide between the rich and the poor. His efforts to strengthen the military cost the United States a lot of money as well as the savings and loan scandal. But despite of this, his ratings were high. Perhaps, his economic failure was overlooked by the

Is New Labour In The United Kingdom A New Socialist Party Essay

Is New Labour In The United Kingdom A New Socialist Party - Essay Example United Kingdom's labour come in the nineteenth century when there was felt to be an urgent need for a third party to signify the interests of the major working class population, however after subsequent general elections of 1929, 1960's and 1970's it was named as "New Labour" in 1994. In 1997, under the guidance of Tony Blair the British Labour Party has led to a general election victory, escorting from 'old labour' to 'new labour'. We can acknowledge the re-emergence of New Labour as a party of liberal policies, which is characterized as a belief in legal rights and duties towards a citizen, however the party's popularity has affected badly since 2001 for the criticism the new name with an unprecedented comments of 'spin doctoring' and 'New Labour, New Danger' has brought to it.(Wikipedia, Labour Party UK)When we focus on the public sector response given to the New Labour's political vision, it can be seen that New Labour's public philosophy is a development of the socialist traditi on in response to specific dilemmas conceived largely in terms associated with the New Right. This factor should also be considered that Old Labour, New Labour, and the New Rights are all those abstractions that simplify some specific complex sets of political ideas, practices, and loyalties.Public philosophy also leads it to be communitative including many developing ideas that incorporate the experiences of community action and the labor movement. Community work in this approach is about assisting communities, particularly those affected by poverty and insecurity, to develop a strong voice in arguing for different economic and social outcomes than those they presently experience. (Anne Quinney, 2002) Community Action During the mid 1960s to mid 1970s, community work enjoyed a high profile in the UK. The desire of the British government to address and ameliorate social problems, particularly those in inner city areas, led to a range of schemes and programs, most of which used intervention in communities and neighborhoods as a core component. The role of community work at that time was to stabilize and incorporate sections of the population perceived to be "difficult" and provide support to integrate them into mainstream activity. So, the main problem remained within the community and produced a radical critique by economic, political, and social structures, creating an unequal distribution of resources and power throughout society. The continued existence of deprived areas was essential for the continuance of capitalism. In other words, structural inequalities were the root cause of poverty, where the community work was identified as controversial and problematic, as well as a useful practice for tackling social problems. This tension is constantly played out in the British community work field and cannot be ignored when examining aspects of practice. The experience of community development in Britain has been characterized by work at the neighborhood level and, has a primary focus upon a process whereby community groups are encouraged to articulate their problems and needs that will lead to collective action in the determination and meeting of their needs. Community Development has now extended its social exclusion towards health improvement targets and a unique and central feature of health and social care policies. The British New Labour government launched the Social Exclusion Unit, consisting of a group of civil servants and independent advisors, to analyze and report on problems in the 1,300 poorest neighborhoods. The first report attacked the way in which the previous government had failed these neighborhoods, as not enough emphasis had been placed on the communities themselves

Role Models Essay Example | Topics and Well Written Essays - 750 words

Role Models - Essay Example â€Å"Role models demonstrate their commitment to a desired goal and are willing to invest the necessary time and effort to achieve success† (Silver). â€Å"In order for role models to be influential, they must show respect for others† (Silver). â€Å"Role models inspire other with an upbeat, optimistic outlook on life† (Silver). Summary of the article-The article is by Rebecca Morrison who claims that individuals are still susceptible to the influence of others, and especially their friends regardless of their age, strength, independence, or centeredness. The influence of others comes in various forms and can be specific, general, or indirect. Occasional and small negative habits viewed in one’s friend can erode and become sustained in the individual’s life too. It is hard for an individual to recognize that his or her friend is the one negatively impacting their life as they care about them. For one to understand the impact of negative friendship in their life, they need to step back and have a look at their actions and analyze how their life has been impacted negatively. It is possible to make positive change after identifying the negative impact. The changes that need to be made may either be dramatic or simple adjustment. Main ideas- friends with negative habits are capable of influencing one’s life. For one to understand the negative influence a relationship has on them, they need to step back and analyze. If negative behavior is key to the sustainability of a friendship, there is need for the friendship to end for one to lead a healthy life. Additional notes: the author suggests that there is need to evaluate the impact that friendships have own one’s individual behavior. If the influence is negative, there is need to undertake some changes for the benefit of the individual’s life. Summary of the article- the article is written by Susan Krauss Whitbourne. The article

History Essay Example | Topics and Well Written Essays - 500 words - 98

History - Essay Example The fifteenth century financial crisis also meant a stop to financing to the influential and controlling marabouts and Sharifian families (Tignor, Adelman, Aron, Kotkin, and Marchand). The Islamic dynasties of the fifteenth century responded through the disruption of trade networks in the quest to rebuild devastated polities. The new polities enjoyed support because of the establishment of hereditary ruling families. Clear rules of succession promoted stability in the regions and enabled dynasties to form alliances and strengthen their armies. The Islamic dynasties of the sixteenth century focused on state-building efforts through religion and taxes. In consequence, they enjoyed substantial prolonged existence and impact on the masses. New administrative practices were common in their responses. The leaders enhanced local religious and cultural traditions, and religious harmony enhanced the much-needed economic progress. The Mali, Baghdad, and Cairo Muslim societies served as commercial trading centers. In Mali, the indigenous African dynasty adopted Islam through nonviolent means, while India was marred with brutal attacks against Hindu and Buddhist temples. In India, the Islamic society took some time before it stabilized and enjoyed peace because it relied on fear to keep subjects subservient. India was split into Muslim and Hindu territories while Africans in Mali largely accepted Islam. The Muslim societies that emerged in Mali prospered because of the vastness of the region. The traditional Muslim societies in Baghdad and Cairo faced political divisions because of religious differences. In Cairo, different social groups applied Islam differently because it was seen as a complex and diverse religion. Even so, they all agreed on the basic tenets of the religion. The early forms of Muslim cultures were guided by Arab influences, and most of the tenets were adopted from the behaviors

Women and The Law Essay Example | Topics and Well Written Essays - 1500 words

Women and The Law - Essay Example Women and The Law One actually had mixed opinions in the article given that through the experiences of three women who opted out (Chimerine Irvin, Kuae Kelch Mattox, and Sheilah O’Donnel), some of these women turned out more advantageous for being accorded with the opportunities of finding more rewarding employment when they opted to return on the work force; despite obviously lower compensation. However, others who are not so fortunate could face greater anxieties for having to look for more productive endeavor at an age where they could in fact be discriminated on for entering the labor force at a much older age where younger, healthier and equally qualified contenders could be more than willing to accept positions at considerably lower pay. However, through the experiences that were relayed, it was commendable that those who were able to establish a network of professional colleagues while at their prime of the career, could still tap these network and resources to find rewarding opportuniti es to enter the labor force. The difference of having taken the class is that one is more cognizant of theories and their applications to contemporary settings. As such, much appreciation is taken in crucial concerns, especially those affecting women in the workforce and their abilities to sustain supporting their respective families despite the challenges of balancing work and family life.... d even facing serious consequences, especially when divorce had left women without support, without money, and without resources to support the growing needs of the children. Description of Personal Reaction to/Opinion of the Article One actually had mixed opinions in the article given that through the experiences of three women who opted out (Chimerine Irvin, Kuae Kelch Mattox, and Sheilah O’Donnel), some of these women turned out more advantageous for being accorded with the opportunities of finding more rewarding employment when they opted to return on the work force; despite obviously lower compensation. However, others who are not so fortunate could face greater anxieties for having to look for more productive endeavor at an age where they could in fact be discriminated on for entering the labor force at a much older age where younger, healthier and equally qualified contenders could be more than willing to accept positions at considerably lower pay. However, through the experiences that were relayed, it was commendable that those who were able to establish a network of professional colleagues while at their prime of the career, could still tap these network and resources to find rewarding opportunities to enter the labor force. Statement of What Difference, if any, Taking the Class Had on Reaction to the Article The difference of having taken the class is that one is more cognizant of theories and their applications to contemporary settings. As such, much appreciation is taken in crucial concerns, especially those affecting women in the workforce and their abilities to sustain supporting their respective families despite the challenges of balancing work and family life. The lessons provided ample opportunities to be apprised of how theories are applied and how,

Innovation in health issues Essay Example | Topics and Well Written Essays - 750 words

Innovation in health issues - Essay Example This research uses internal locus embedded with Precede Proceed Model to make children believe that obesity can be controlled through internal efforts rather blaming external factors like cultural and social issues. As discussed in the literature review, childhood obesity in the 5th grade of Latino community from 1-12 years of age in the Long Beach area is on a rise mainly because of the socio-economic and cultural factors. Precede Proceed Model will be used to deal with the obesity problem. The Precede Proceed Model consists of eight phases where four are planning phases, one is implementation phase, and the remaining 3 are evaluation phases. The first phase of the model will talk about the social diagnosis by assessing the quality of life of children through personal interaction and assessment of weight and diet. The second phase will assess the health problem by assessing other health issues through medical tests. The third phase, behavioural and environmental diagnosis will inves tigate the food choices of children and their daily activities along with identifying the impact of the environment by investigating the access to healthy food, family influence, and proximity of food joints. The fourth phase, educational and organsiational diagnosis will deal with predisposing factors like perceived risk by communicating the same to children’s parents along with using reinforcing factors like arranging for healthcare providers and using their advice and suggestions to deal with the obesity issue.

History Essay Example | Topics and Well Written Essays - 500 words - 98

History - Essay Example The fifteenth century financial crisis also meant a stop to financing to the influential and controlling marabouts and Sharifian families (Tignor, Adelman, Aron, Kotkin, and Marchand). The Islamic dynasties of the fifteenth century responded through the disruption of trade networks in the quest to rebuild devastated polities. The new polities enjoyed support because of the establishment of hereditary ruling families. Clear rules of succession promoted stability in the regions and enabled dynasties to form alliances and strengthen their armies. The Islamic dynasties of the sixteenth century focused on state-building efforts through religion and taxes. In consequence, they enjoyed substantial prolonged existence and impact on the masses. New administrative practices were common in their responses. The leaders enhanced local religious and cultural traditions, and religious harmony enhanced the much-needed economic progress. The Mali, Baghdad, and Cairo Muslim societies served as commercial trading centers. In Mali, the indigenous African dynasty adopted Islam through nonviolent means, while India was marred with brutal attacks against Hindu and Buddhist temples. In India, the Islamic society took some time before it stabilized and enjoyed peace because it relied on fear to keep subjects subservient. India was split into Muslim and Hindu territories while Africans in Mali largely accepted Islam. The Muslim societies that emerged in Mali prospered because of the vastness of the region. The traditional Muslim societies in Baghdad and Cairo faced political divisions because of religious differences. In Cairo, different social groups applied Islam differently because it was seen as a complex and diverse religion. Even so, they all agreed on the basic tenets of the religion. The early forms of Muslim cultures were guided by Arab influences, and most of the tenets were adopted from the behaviors

Innovation in health issues Essay Example | Topics and Well Written Essays - 750 words

Innovation in health issues - Essay Example This research uses internal locus embedded with Precede Proceed Model to make children believe that obesity can be controlled through internal efforts rather blaming external factors like cultural and social issues. As discussed in the literature review, childhood obesity in the 5th grade of Latino community from 1-12 years of age in the Long Beach area is on a rise mainly because of the socio-economic and cultural factors. Precede Proceed Model will be used to deal with the obesity problem. The Precede Proceed Model consists of eight phases where four are planning phases, one is implementation phase, and the remaining 3 are evaluation phases. The first phase of the model will talk about the social diagnosis by assessing the quality of life of children through personal interaction and assessment of weight and diet. The second phase will assess the health problem by assessing other health issues through medical tests. The third phase, behavioural and environmental diagnosis will inves tigate the food choices of children and their daily activities along with identifying the impact of the environment by investigating the access to healthy food, family influence, and proximity of food joints. The fourth phase, educational and organsiational diagnosis will deal with predisposing factors like perceived risk by communicating the same to children’s parents along with using reinforcing factors like arranging for healthcare providers and using their advice and suggestions to deal with the obesity issue.

I Have a Dream by Martin Luther King Essay Example for Free

I Have a Dream by Martin Luther King Essay â€Å"I have a dream† was a speech delivered on August 28, 1963 by Martin Luther King in Lincoln Memorial Washington D. C. Martin Luther King’s role or position in his speech is that of an illustrator, or a mediator of peace and equality. He becomes one of those people who have seen the light and wanted to share this light to those other individuals who are still in the dark. He wanted or dreamed of a community wherein racial discrimination is no longer an issue. His ideal community is where everybody is free, no biases for either black or white people nor black or white community. He is in a position as to persuade the people to become more vigilant in watching their freedom and in receiving or wanting equality and justice. He also wanted each and every people to understand that one’s freedom or destiny is bound to the other. Because of this, he wanted everybody to properly exercise civil rights and must not prevent people from using this privilege. Generally, the intended audience of the speech is the black people, and also those who are not such as the white people, but are living with black people or in black communities. However, everybody can read or listen to his speech or statement because of the underlying principles included in his speech and his dreams or ideals can be utilized or preferred as a model for civil rights. â€Å"I have a dream† greatly inspires and effectively infuses its point of view to its audience, transforming dreams into reality and despair into hope; we dream of being free, and we become free because of this dream. Martin Luther King was prompted to write or make the statement or speech because of the continuing slavery that entangles each and every people, especially for the black people or communities. In addition to this, the belief and treatment or actions of the black people against the white people had alarmed the author to write or make this speech to the public. According to Martin Luther King, the slavery of the black people may have been released or abolished because of the signing of the Emancipation Proclamation. However, nowadays or 100 years later, this freedom from slavery is still ambiguous and it does not exist. In addition to this, Martin Luther King believes that there are still a lot of people who are experiencing police brutality and social discrimination. In addition to this, he thinks that the rights and privileges which were given to the people, especially the black people, is not properly implemented or received by the black communities. Martin Luther King takes on the affirmative side or in favor for equality amongst the black people and also the white people. He clearly shows or supports his stand through several examples and emphasis on his words or statements. Martin Luther King claims that every individual should learn to respect and give what is right to their neighbors. He is aware that there are people who are still suffering beyond the hands of law. He reasons this out by giving examples of those who were misunderstood, brutally beaten indiscriminately and provides logic as to why dreaming is an important part in one’s body. Martin Luther King is qualified to be a speaker or author of such paper because of his records and performance not only as a politician but also an individual who greatly cares for justice and freedom. I believe that the assumptions, ideas or claims of Martin Luther King are correct and good, with some deviances especially through the use of audio, video or format or instructions at more school. He was able to provide examples of real life situations where the civil rights of an individual becomes hindered. In addition to this, the audio and video formats are very much entertaining and at the same time, inform the audience of the predicaments of equality or justice in nations or communities. However, there are some claims or dreams which are somehow impossible to attain such as complete equality and freedom from prejudice from all countries or states. Being able to read Martin Luther King’s work, my perspective before to ignore claims and evidences and become settled in what the community gives me, had greatly changed. As such, the degree of my trust towards Martin Luther King did increase due to his great speech which is definitely eye-opening. The author has refutations that include the fulfillment of his dream or conditions in order to achieve a country, state or community. He also refutes the fact that freedom is already complete. The refutations made by Martin Luther King are really effective. In addition to this, he uses great emphasis on his words and greatly touches the sympathy of those who are listening to his speech. He was able to clearly state his dreams, one after the other and manage to state options or categories which would fulfill his dreams. His last statement â€Å"Free at last! Free at last! † gives hopes and restore the faith which people have for change and better living. As an individual who had already received the light from Martin Luther King, my desire for helping other people and providing equality or non-biased reactions had increased. My hopes for a better communication and media for spreading the word of the real scenario on freedom and equality also increased because of the persuasive message or speech delivered by Martin Luther King, Somehow, a part of me already wants to do something in order to help and at least be able to create balance within communities. In addition to this, his metaphor of a ring, representing one goal, and fingers representing the people, is really amazing and in reality lightens my belief. I thought that we are already saved, but the paper of Martin Luther King had taught me well. Works Cited Jr. , Dr. Martin Luther King. American Rhetric: Martin Luther King Jr. : I Have a Dream. Atlanta, 2008. February 11, 2008. Intellectual Properties Management. http://www. americanrhetoric. com/speeches/mlkihaveadream. htm.

Application to Modern Investment Theory to EMH

Application to Modern Investment Theory to EMH The modern investment theory and its application on the efficient markets hypothesis 1. Introduction The Modern investment theory and its application is predicated on the Efficient Markets Hypothesis (EMH), assumption that markets fully and instantaneously integrate all available information into market prices. Underlying this comprehensive idea is the assumption that market participants are perfectly rational, and always act in self-interest, making optimal decisions. These assumptions have been challenged. It is difficult to tip over the neo classical convention that has yielded such insights as portfolio optimization, Capital Asset Pricing Model, Arbitrage Pricing Theory and Cox Ingersoll-Ross theory of the term structure of interest rates, all of which are predicated on the EMH[2] rather than downside risks[3]. The theory of behavioral finance is opposite to the traditional theory of Finance and deals with human emotions, sentiments, conditions, biases on collective as well as individual basis. Behavior finance theory is helpful in explaining past practices of investors and dete rmining the false performance of the investors. Behavioral finance is a concept of finance which deals with finances incorporating findings from psychology and sociology. It is reviewed that behavioral finance is generally based on individual behavior and financial market outcomes. There are many models explaining behavioral finance that explains investors behavior or market irregularities where rational models fail to provide adequate information. Investors do not expect such research to provide a method to make lots of money from inefficient financial markets quickly. According to Shiller (2001) Behavioral finance has basically emerged from the theories of psychology, sociology and anthropology where implications of these theories appear to be significant for efficient market hypothesis, that is based on the positive notion that people behave rationally, maximize their utility. It is found that in efficient market the principle of rational behavior is not always correct. Thus, the idea of analyzing other model of human behavior has come up. Gervais (2001) further explains the concept where he says that people like to relate to the stock market as a person having different moods, this person can be bad-tempered or high-spirited and can overreact one day or make amends the next. This person indicates human behavior which is unpredictable and behaves differently in different situations. Lately many researchers have suggested the idea that psychological analysis of investors may be very helpful in understanding financial markets better. To do so it is important to understand behavioral finance presenting the concept of traditional theory overestimating rationality of investors, their biases in decisions casting a cumulative impact on asset prices. To many researchers the study of behavior in finance appeared to be a revolution. As it transforms peoples mentality and perception about markets and factors that influence the markets. The paradigm is shifting. People are continuing to walk across the border from the traditional to the behavioral camp. Gervais (2001, pp.2). On the contrary some people believe that may be its too early to call it a revolution. Gervais (2001) states that Fama in (1970) argued that behavioral finance has not really shown an impact on world prices, and that model contradict each other on different point of times. Giving very less account to behaviorist explanations of trends and the irregularities anomaly ( is any occurrence or object that is strange, unusual, or unique) also argued that in order to locate patterns the data mining techniques are much helpful. Other researchers have also criticized the idea that behavioral finance models tend to replace the traditional models of market functions. Some weaknesses in this area, explained by Gervais (2001)are that generally overreaction and under reaction are major causes of market behavior. In these cases People take the behavior that seems to be easy for a particular study regardless of the fact that whether these biases are either primary factor of economic forces or not. Secondly, lack of trained and expert people. The field does not have enough trained professionals both in psychology or finance fields and therefore as a result the models presented by researchers are improvised. Gervais (2001) also focused on individual behavior impacting asset prices and explained that this field of behavioral finance is currently in its developmental stage, in its way of development it is facing a lot of disagreement which itself is a productive one. He points out that if we apply the conceptual models of behavioral finance to the corporate finance, it can majorly pay off. If money managers are incorrectly rational, means they are probably not evaluating their investment strategies correctly. They might take wrong decisions in their capital structure decisions. It has been found that quite a few people foresee behavioral finance displacing the age old Efficient Markets theory. On the contrary underlying assumption that investors and managers are completely rational makes insightful sense to many people. 2. Traditional Finance and Empirical Evidence Fung, (2006) claimed that Post Keynesian theory has criticized mainstream economic theory for using statistical methods to model the world in which histori ­cal market data cannot provide, In recent years, two different lines of research experimental economics and behavioral finance have pro ­duced results that are at odds with the predictions of mainstream finan ­cial theory. This paper argues that it is beneficial to the development of good financial theory for Post Keynesian economists to engage in an exchange of ideas with the practitioners of these two lines of research. The difference of opinion originated when experimental economics and behavioral finance understood the difference between agents rationality in theory and in real world. Both had a same point of view regarding Post Keynesian economists where both of them refused to assume Post Keynesian economists assumption of economic actors being always rational by maximizing expected utility. Instead of assuming ration al economic ac ­tors who always act consistently, they often tap into insights provided by psychology to try to explain economic behavior. The use of psychol ­ogy can be traced back to Keynes, and, in fact, some of the papers in experimental economics and behavioral finance take a remark of Keynes on the psychology of economic actors as an inspiration for designing empirical tests of economic behavior. Indeed, some of these papers rec ­ognize that we live in an uncertain world, and they examine the heuris ­tics, or rules of thumb, that economic actors develop to guide their behavior in face of uncertainty. When Keynes made his remark in 1936 (the original publication date of the General Theory), there was not yet an efficient market hypothesis. But in 1970 Fama published his pioneering paper on efficient markets. In it, he defined an efficient market as a market in which prices always fully reflect available information. Traditional theory assumes that agents are rational an d the law of one price holds that is a perfect scenario. Where the law of One price[5]. And agents rationality explains the behavior of investor Professional and Individual which is generally inconsistent with rationality or future predictions. If a market achieves a perfect scenario where agents are rational and law of one price holds then the market is efficient. With the availability of large amount of information, form of market changes. It is unlikely that market prices contain all private information. The presence of noise traders (traders, trading randomly and not based on information). Researches show that stock returns are typically unpredictable based on past returns where as future returns are predictable to some extent. According to Glaser et al. (2003) Few examples from the past literature explains the problem of irrationality which occurs because of naive diversification, behavior influenced by framing, the tendency of investors of committing systematic errors while ev aluating public information. Lately it has been found that investors` attitude towards the riskiness of a stock in future and the individual interpretation may explain the higher level trading volume, which itself is a vast topic for insight. A problem of perception exist in the investors actions that stocks have a higher risk adjusted returns than bonds. Another issue with the investors is that these investors either care about a stock portfolio or just about the value of each single security in their portfolio and thus ignore correlations. The concept of ownership society[6] has been promoted in the recent years where people can take better care of their own lives and be better citizen too if they are both owner of financial assets and homeowners. As Shiller (2006) suggested that in order to improve lives of less advantaged people in our society is to teach them how to be capitalist, In order to put ownership society in its right perspective, behavioral finance is needed to be und erstood. The concept of ownership society seems very attractive when people appear to make profits from their investments. Behavioral finance is also very helpful in understanding and justifying government involvement in investing decisions of individuals. The failure of millions of people to save properly for their future is also a core focus of behavioral finance. According to Glaser et al. (2003) there are two approaches towards behavioral finance, where both tend to have same goals. The goals tend to explain observed prices, market trading volume and Last but not the least is the individual behavior better than traditional finance models. Belief Based Model: Psychology (Individual Behavior) Incorporates into Model Market prices and Transaction Volume. It includes findings such as Overconfidence, Biased Self- Attrition, and Conservatism and Representativeness. Preference Based Model: Rational Friction or from psychology Find explanations, Market detects irregularities and individual behavior. It incorporates Prospect Theory[7], House money effect and other forms of mental accounting. Behavioral Finance and Rational debate: the article by Heaton and Rosenberg (2004) highlights the debate between the rational and behavioral model over testability and predictive success. And it was found that neither of them actually offers either of these measures of success. The rational approach uses a particular type of rationalization methodology; which goes on to form the basis of behavior finance predictions. A closer look into the rational finance model goes on to show that it employs ex post rationalizations of observed price behaviors. This allows them greater flexibility when offering explanations for economic anomalies. On the other hand the behavior paradigm criticizes rationalizations as having no concrete role in predicting prices accurately, t hat utility functions, information sets and transaction costs cannot be `rationalized. Ironically they also reject the rational finances explanatory power which plays an essential role in the limits of arbitrage, which actually makes behavioral finance possible. Heaton Rosenberg (2004) presented Milton Friedmans theory that laid the basis of positive economics. His methodology focused on how to make a particular prediction; it is irrelevant whether a particular assumption is rational or irrational. According to this methodology, the rational finance model relies on a limited assumption space since all assumptions that are supposedly not rational have been eliminated. This is one of the major reasons behind the little success in rational finance predictions. Despite the minimal results, adherents of this model have criticized the behavioral model as lacking quantifiable predictions that are based on mathematical models. Rational finance has targeted a more important aspect in the structure of economy, i.e. Investor uncertainty, which further cause financial anomalies. In explaining these assertions, the behavioral approach emphasizes importance of taking limits in arbitrage. Further his methodological approach falls into the category `instru mentalism[8], which basically states that theories are tools for predictions and used to draw inferences. Whether an assumption is realistic or rational is of no value to an instrumentalist. By narrowing what may or may not be possible, one will inevitably eliminate certain strategies or behaviors which might in fact go on to maximize utility or profits based on their uniqueness. An assumption could be irrational even in the long run, but it is continuously revised and refined to make it into something useful. In opposition to this, many individuals have said that behaviouralists are not bound by any constraints thus making their explanations systematically irrational. Heaton Rosenberg (2004) further explains the concept of Rubinstein that how when everyone fails to explain a particular anomaly, suddenly a behavioral aspect to it will come up, because that can be based on completely abstract irrational assumptions. To support rationality, he came up with two arguments. Firstly he w ent on to say that an irrational strategy that is profitable, will only attract copy cat firms or traders into the market. This is supported when a closer look is given towards limits to arbitrage. Secondly through the process of evolution, irrational decisions will eventually be eliminated in the long run. The major achievements characterized of the rational finance paradigm consist of the following: the principle of no arbitrage; market efficiency, the net present value decision rule, and derivatives valuation techniques; Markowitzs (1952) mean-variance framework; event studies; multifactor models such as the APT, ICAPM, and the Consumption CAPM. Despite the number of top achievements that supporters of the rational model claim, the paradigm fails to answer some of the most basic financial economic questions such as `What is the cost of capital for this firm? or `What is its optimal capital structure?; simply because of their self imposed constraints. So far this makes it seem lik e rational finance and behavioral finance are mutually exclusive. Contrary to this, they are actually interdependent, and overlap in several areas. Take for instance the concept of mispricing when there is no arbitrage. Behavior finance on the other hand suggests that this may not be the case; irrational assumptions in the market will still lead to mispricing. Further even though certain arbitrageurs may be able to identify irrationality induced mispricing, because of the imperfect market information, they are unable to convince investors of its existence. Over here, the rational model is accepting the existence of anomalies which are affected both through the factors of risk and chance; therefore coinciding with the perspective of behavioral finance. Two instances are clear examples of how rationalization is an important limit of arbitrage: i) the build-up and blow-up of the internet bubble; and ii) the superiority of value equity strategies. If we focus on the latter, we are able to see behavioral finance literature that highlights the superiority of such strategies in the ability of analysts to extrapolate results for investors. This is possible when rationalization is taken as a limit to arbitrage. Similarly these strategies may also limit arbitrage against mispricing, through the great risk associated with stocks. In explaining most anomalies it is essential that analysts first conclude whether pricing is rational or not. To prove their hypothesis that irrationality induced mispricing exists; behaviouralists may find it easier if they accepted the role of rationalization in limits of arbitrage. Slow information diffusion and short-sales constraints are other factors which explain mispricing. However these factors alone cannot form the basis of a strong and concrete explanation that will clarify pricing across firms and also across time. Those supporting the rational paradigm attack behavioral finance adherents in that their predictions for the financial markets have been made on irrational assumptions; that are not supported by concrete mathematical or scientific models. In their view the lack of concrete discipline in the methodology adopted in behavior finance leads to the lack of testing in their forecasts. On the other hand the rational model is criticized for its lack of success in financial predictions. The behaviouralists claim that this limitation exists because the supporters of rational finance dismiss aspects of the economic market simply because it may not fall into explainable rational behavior. Both perspectives claim to align themselves with respect to the goals of `testability and `predictions, while at the same time continue to offer evidence against the other model. In reality however, rather than being exclusively mutual both paradigms assist one another in making their predictions. Ray (2006) examines a new genre of behavioral markets prediction markets and their remarkable a bility to aggregate inside and expert information from around the world in order to accurately predict all types of economic and financial variables. To date it is said that the prediction markets are the most accurately efficient markets as they prove to show all three forms of market efficiency (weak, semi-strong, and strong), in contrast to regulated markets. Prediction markets are also said to be decision markets. It initially evolved in 1988 with the first online betting market the Iowa Electronic Market. These online markets have proven their predictions accurately since the time they came into being. To be precise these prediction markets are behavioral markets with powerful statistical components that are able to predict the most likely values of future financial variables, variances around such values, and their correlations with other future financial variables. Ray (2006) says that being unregulated, prediction markets are highly effective at flushing out and thereafter a ggregating relevant information including inside and expert information regarding a particular event, globally extracting such information from savvy bettors who are eager to profit from their inside and expert information. These sorts of prediction markets have become so popular that now a days major companies use such behavioral markets to accurately forecast sales, earnings, product success, and many other financial and economic variables. The foremost tool for these markets is the wisdom of crowd. In order to accurately predict financial and economical variables he presented few conditions as a prerequisite, which included mainly having a variety of opinions, with no herd behavior, should be able to use their knowledge according to the information available with them and last but not the least is the fact that prediction markets expectations are not self fulfilling prophecies. Prediction markets are a new genre of behavioral markets that continually reveal the thinking of confid ent insiders by suggesting them to profit from their inside and expert information. The subjective evidence with a few statistical evidences corroborates the impressive ability of these markets to predict financial events of all types. The phenomenon exists from ages and effectively proves its performance especially in worlds financial markets. The demonstrated accuracy of predictions in these markets can be of significant utility to traders, financial analysts, behavioral analysts, and many others intending to forecast and analyze financial data. A persons tendency to make errors is known as cognitive bias. These errors are based on the cognitive factors that include statistical judgments, social attribution and memory being common to all the humans in the world. Cognitive bias is the tendency of intelligent, well-informed people to consistently do the wrong thing. Crowell (1994, pp. 1). The reason behind this cognitive bias is that the Human brain is made for interpersonal relationships and not for processing statistics. He discussed the frailty of forecasts. Generally it is said that the world is divided into two groups: People forecasting positively and people forecasting negatively. These forecasts exaggerate the reliability of their forecasts and trace it to the illusion of validity which exists even when the illusionary character is recognized. Fisher and Statman, (2000) discussed five cognitive bias, underlying the illusion of validity that are Overconfidence, Confirmation, Representativeness, Anchoring, and Hindsight. Shiller (2002) discusses, that irrational behavior may disappear with more learning and a much more structured situation. History proves it that many of cognitive biases in human judgment value uncertainly will change; they may be convinced if given proper instructions, on the part-experience of irrational behavior. The three most common themes of behavioral finance are as follows: Heuristics, Framing and Market Inefficiencies. People when decide on the basis of the rules of thumb regardless of rationalizing suffer from Heuristics. Some forms of Heuristics are: Prospect theory, Loss Aversion, Status quo Bias, Gamblers Fallacy[9], Self-serving bias and lastly Money illusion. Framing is basically a problem of decision making where the decision is based on the point where there is difference in how the case is presented to the decision maker. Cognitive framing, Mental accounting and Anchoring are the common forms of Framing 3. Market Inefficiencies As observed, that market outcomes are totally opposite to rational expectations and efficient market hypothesis where mispricing, irrational decision making and return anomalies are examples of it. Fung (2006) introduced three forms of market efficiency earlier presented by Fama in 1970. In the weak form, the information set con ­tains only historical prices. In the semi strong form, information set contains all publicly available information. In the strong form, the infor ­mation contains not only all publicly available information but also insider information not available to the public. This definition of efficient mar ­kets is too general to be testable empirically. To make the model testable, he proposed a process of price formation known as the expected re ­turn or fair game efficient markets model. In this model, when investors form expectations of security prices, they fully utilize all the information that is fully reflected in those prices. It is called a fair game model, because using only the information that is fully reflected in security prices, no trading system can have expected profits or returns in excess of equi ­librium expected profits or returns. These terms have been described as specific market anomaly from a behavioral point of view. Anomaly (economic behavior) Disposition effect Endowment effect Inequity aversion Intertemporal consumption Present-biased preferences Momentum investing Greed and fear Herd behavior Anomalies (market prices and returns) Efficiency wage hypothesis Limits to arbitrage Dividend puzzle Equity premium puzzle Behavioral Economic Models are restricted to a certain observed market anomaly and it adjusts the neo classical models by explaining the phenomenon of Heuristics and framing to the decision makers. It is usually said that economics get along with in the neo classical framework, with just one restriction of the assumption of rationality. Loix et. Al (2005) in their paper Orientation towards Finances explains the individual financial management behavior, people dealing with their financial means. They have analyzed the Non-specific financial behavior as already we see extensive research on the specific finance behavior such as saving, taxation, gambling and amassing debt, and gave a lot of importance to stock market, investors and households. The analysis of general public`s behavior was done, where an ordinary man is not sure and simply act according to the guesses over their money related issues. It was also found that people interested in economic and financial matters are much more active in collecting specific information than general public, stating that financial behavior of household is an important relevant topic that needs to be discussed in much more details. Household financial management is similar to the financial management. The construct of orientation towards finances was developed where the individual ORTO FIN focuses on competencies (interest and skills). Having stronger money attitude is an indication of stronger orientation towards finances and much more effective competencies. Therefore we expect some relevance and similarity between corporate and household management behavior as both require organizing, forecasting, planning and control. Loix et. al (2005) analyzed general publics behavior in basically dividing them into two groups, Financial Information and Personal financial planning. Also explaining some practical and theoretical gaps in the area of psychology of money usage, they concluded that ORTOFIN (Orientation towards finance) indicates the involvement of individuals in managing their finances. Proving out the point that active interest in financial information and an urge to plan expenses are two main factors. A stronger ORTFIN indicates: greater use of debit accounts, higher savings account, wide variety of investments, greater awareness of ones financial Intimate knowledge of the details of ones savings/deposit accounts obsessed by money, higher achievement and power in monetary terms, Further age is also inversely proportional. Shiller, (2006) in his article talked about the co-evolution of neo-classical and behavior finance that in 1937 when A. Samuelsson one of the great economists wrote about people m aximizing the present value of utility subject to a present value. Another judgment he realized was time being consistent human behavior where if at any time t, 0 4. Investing and Cognitive Bias Money Managers and Money management is a very popular phenomenon. The performance in a stock market is measured at daily basis and waiting for a highly subjective annual review of ones performance by ones superior. Market grades you on a daily basis. The smarter one is, more confident one becomes of ones ability to succeed; clients support them by trusting them that eventually helps their careers. But the truth is that few money managers put in sufficient amount of time and effort to figure out what works and develop a set of investment principles to guide their investment decisions Browne (2000). Further he discussed the importance of asset allocation and risk aversion, in order to understand why we do what we do regardless of whether it is rational or not. General public opts for money Managers to deal with their finances and these managers are categorized in three ways: Value Managers, Growth Managers and Market Neutral Managers. The vast majority of money managers are categorized as either value managers or growth managers although a third category, market neutral managers, is gaining popularity these days and may soon rival the so-called strategies of value and growth. Some investment management firms even are being cautious by offering all styles of investments. What too few money managers do is analyze the fundamental financial characteristics of portfolios that produce long-term market beating results, and develop a set of investment principles that are based on those findings. Difference of opinion on the definition of value is the problem. The reasons for this are two-fold, one being the practical reality of managing large sums of money, and other related to behavior. As the assets under management of an advisor grow, universe of potential stocks shrinks. Analyzing why individual and professional investors do not change their behavior even when they face empirical evidence, suggests that their decisions are less than optimal. An answer to this questio n is said to be that being a contrarian may simply be too risky for the average individual or professional. If a person is wrong on collective basis, where everyone else also had made a mistake, the consequences professionally and for ones own self-esteem are far less damaging than if a person is wrong alone. The herd instinct allows for comfort of safety in numbers. The other reason is that individuals try to behave same way and do not tend to change courses of action if they are happy. If the results are not too painful individuals can be happy with sub-optimal results. Moreover, individuals who tend to be unhappy make changes often and eventually end up being just as unhappy in their new circumstances. According to traditional view of investment management, fundamental forces drive markets, however many other investment firms are consider being active and basing their working on their experienced Judgment. It is also believed that Judgmental overrides value and fundamental forces of markets can be lethal as well as a cause of financial disappointment. Historically it has been found that people override at wrong times and in most cases would be better off sticking to their investment disciplines and the reason to this behavior is the cognitive bias. According to Crowell (1994) and many other researchers, stocks of small companies with low price/book ratios provide excess returns. Therefore, given a choice among small cheap stocks and large high priced stocks, prominent investors (financial analysts, senior company executives and company directors) will certainly prefer small cheap ones. But the fact is opposite to this situation where these prominent investors would opt for large high priced ones and so suffer from cognitive bias and further regret. The assumptions made by Crowell (1994, pp.2) were that Long term investment value should be negatively correlated with size since small stocks provide superior returns. Long term Investment value should have a negative correlation with Price/book since low Price/Book stocks provide superior returns. Whereas the results Crowell`s survey were contrary stating that Long Term Investment had a positive correlation with size and with Price/Book stocks. Crowell further stated that according to Shefrin and Statman, prominent investors overestimate the probability that a good company is a good stock, relying on the representative heuristics, concluding that superior companies make superior stocks. Discussing the concept of regrets, aversion to regret is different from aversion to risk; Regret is acute when an individual must take responsibility for the final outcome. Aversion to regret leads to a preference for stocks of good companies. The choice of the stocks of bad companies involves more personal responsibility and higher probability of regret. Therefore, two major Cognitive errors appear: We have a double cognitive error: good company always makes good stock (representativeness), and involves less responsibility(Less aversion to regret). (Crowell, 1994,pp.3) The Anti Cognitive bias actions would be admitting to your owned stocks, admitting earlier investment mistakes. Further, taking the responsibility for actions to improve their performance in future. The reasons for all the available discip Application to Modern Investment Theory to EMH Application to Modern Investment Theory to EMH The modern investment theory and its application on the efficient markets hypothesis 1. Introduction The Modern investment theory and its application is predicated on the Efficient Markets Hypothesis (EMH), assumption that markets fully and instantaneously integrate all available information into market prices. Underlying this comprehensive idea is the assumption that market participants are perfectly rational, and always act in self-interest, making optimal decisions. These assumptions have been challenged. It is difficult to tip over the neo classical convention that has yielded such insights as portfolio optimization, Capital Asset Pricing Model, Arbitrage Pricing Theory and Cox Ingersoll-Ross theory of the term structure of interest rates, all of which are predicated on the EMH[2] rather than downside risks[3]. The theory of behavioral finance is opposite to the traditional theory of Finance and deals with human emotions, sentiments, conditions, biases on collective as well as individual basis. Behavior finance theory is helpful in explaining past practices of investors and dete rmining the false performance of the investors. Behavioral finance is a concept of finance which deals with finances incorporating findings from psychology and sociology. It is reviewed that behavioral finance is generally based on individual behavior and financial market outcomes. There are many models explaining behavioral finance that explains investors behavior or market irregularities where rational models fail to provide adequate information. Investors do not expect such research to provide a method to make lots of money from inefficient financial markets quickly. According to Shiller (2001) Behavioral finance has basically emerged from the theories of psychology, sociology and anthropology where implications of these theories appear to be significant for efficient market hypothesis, that is based on the positive notion that people behave rationally, maximize their utility. It is found that in efficient market the principle of rational behavior is not always correct. Thus, the idea of analyzing other model of human behavior has come up. Gervais (2001) further explains the concept where he says that people like to relate to the stock market as a person having different moods, this person can be bad-tempered or high-spirited and can overreact one day or make amends the next. This person indicates human behavior which is unpredictable and behaves differently in different situations. Lately many researchers have suggested the idea that psychological analysis of investors may be very helpful in understanding financial markets better. To do so it is important to understand behavioral finance presenting the concept of traditional theory overestimating rationality of investors, their biases in decisions casting a cumulative impact on asset prices. To many researchers the study of behavior in finance appeared to be a revolution. As it transforms peoples mentality and perception about markets and factors that influence the markets. The paradigm is shifting. People are continuing to walk across the border from the traditional to the behavioral camp. Gervais (2001, pp.2). On the contrary some people believe that may be its too early to call it a revolution. Gervais (2001) states that Fama in (1970) argued that behavioral finance has not really shown an impact on world prices, and that model contradict each other on different point of times. Giving very less account to behaviorist explanations of trends and the irregularities anomaly ( is any occurrence or object that is strange, unusual, or unique) also argued that in order to locate patterns the data mining techniques are much helpful. Other researchers have also criticized the idea that behavioral finance models tend to replace the traditional models of market functions. Some weaknesses in this area, explained by Gervais (2001)are that generally overreaction and under reaction are major causes of market behavior. In these cases People take the behavior that seems to be easy for a particular study regardless of the fact that whether these biases are either primary factor of economic forces or not. Secondly, lack of trained and expert people. The field does not have enough trained professionals both in psychology or finance fields and therefore as a result the models presented by researchers are improvised. Gervais (2001) also focused on individual behavior impacting asset prices and explained that this field of behavioral finance is currently in its developmental stage, in its way of development it is facing a lot of disagreement which itself is a productive one. He points out that if we apply the conceptual models of behavioral finance to the corporate finance, it can majorly pay off. If money managers are incorrectly rational, means they are probably not evaluating their investment strategies correctly. They might take wrong decisions in their capital structure decisions. It has been found that quite a few people foresee behavioral finance displacing the age old Efficient Markets theory. On the contrary underlying assumption that investors and managers are completely rational makes insightful sense to many people. 2. Traditional Finance and Empirical Evidence Fung, (2006) claimed that Post Keynesian theory has criticized mainstream economic theory for using statistical methods to model the world in which histori ­cal market data cannot provide, In recent years, two different lines of research experimental economics and behavioral finance have pro ­duced results that are at odds with the predictions of mainstream finan ­cial theory. This paper argues that it is beneficial to the development of good financial theory for Post Keynesian economists to engage in an exchange of ideas with the practitioners of these two lines of research. The difference of opinion originated when experimental economics and behavioral finance understood the difference between agents rationality in theory and in real world. Both had a same point of view regarding Post Keynesian economists where both of them refused to assume Post Keynesian economists assumption of economic actors being always rational by maximizing expected utility. Instead of assuming ration al economic ac ­tors who always act consistently, they often tap into insights provided by psychology to try to explain economic behavior. The use of psychol ­ogy can be traced back to Keynes, and, in fact, some of the papers in experimental economics and behavioral finance take a remark of Keynes on the psychology of economic actors as an inspiration for designing empirical tests of economic behavior. Indeed, some of these papers rec ­ognize that we live in an uncertain world, and they examine the heuris ­tics, or rules of thumb, that economic actors develop to guide their behavior in face of uncertainty. When Keynes made his remark in 1936 (the original publication date of the General Theory), there was not yet an efficient market hypothesis. But in 1970 Fama published his pioneering paper on efficient markets. In it, he defined an efficient market as a market in which prices always fully reflect available information. Traditional theory assumes that agents are rational an d the law of one price holds that is a perfect scenario. Where the law of One price[5]. And agents rationality explains the behavior of investor Professional and Individual which is generally inconsistent with rationality or future predictions. If a market achieves a perfect scenario where agents are rational and law of one price holds then the market is efficient. With the availability of large amount of information, form of market changes. It is unlikely that market prices contain all private information. The presence of noise traders (traders, trading randomly and not based on information). Researches show that stock returns are typically unpredictable based on past returns where as future returns are predictable to some extent. According to Glaser et al. (2003) Few examples from the past literature explains the problem of irrationality which occurs because of naive diversification, behavior influenced by framing, the tendency of investors of committing systematic errors while ev aluating public information. Lately it has been found that investors` attitude towards the riskiness of a stock in future and the individual interpretation may explain the higher level trading volume, which itself is a vast topic for insight. A problem of perception exist in the investors actions that stocks have a higher risk adjusted returns than bonds. Another issue with the investors is that these investors either care about a stock portfolio or just about the value of each single security in their portfolio and thus ignore correlations. The concept of ownership society[6] has been promoted in the recent years where people can take better care of their own lives and be better citizen too if they are both owner of financial assets and homeowners. As Shiller (2006) suggested that in order to improve lives of less advantaged people in our society is to teach them how to be capitalist, In order to put ownership society in its right perspective, behavioral finance is needed to be und erstood. The concept of ownership society seems very attractive when people appear to make profits from their investments. Behavioral finance is also very helpful in understanding and justifying government involvement in investing decisions of individuals. The failure of millions of people to save properly for their future is also a core focus of behavioral finance. According to Glaser et al. (2003) there are two approaches towards behavioral finance, where both tend to have same goals. The goals tend to explain observed prices, market trading volume and Last but not the least is the individual behavior better than traditional finance models. Belief Based Model: Psychology (Individual Behavior) Incorporates into Model Market prices and Transaction Volume. It includes findings such as Overconfidence, Biased Self- Attrition, and Conservatism and Representativeness. Preference Based Model: Rational Friction or from psychology Find explanations, Market detects irregularities and individual behavior. It incorporates Prospect Theory[7], House money effect and other forms of mental accounting. Behavioral Finance and Rational debate: the article by Heaton and Rosenberg (2004) highlights the debate between the rational and behavioral model over testability and predictive success. And it was found that neither of them actually offers either of these measures of success. The rational approach uses a particular type of rationalization methodology; which goes on to form the basis of behavior finance predictions. A closer look into the rational finance model goes on to show that it employs ex post rationalizations of observed price behaviors. This allows them greater flexibility when offering explanations for economic anomalies. On the other hand the behavior paradigm criticizes rationalizations as having no concrete role in predicting prices accurately, t hat utility functions, information sets and transaction costs cannot be `rationalized. Ironically they also reject the rational finances explanatory power which plays an essential role in the limits of arbitrage, which actually makes behavioral finance possible. Heaton Rosenberg (2004) presented Milton Friedmans theory that laid the basis of positive economics. His methodology focused on how to make a particular prediction; it is irrelevant whether a particular assumption is rational or irrational. According to this methodology, the rational finance model relies on a limited assumption space since all assumptions that are supposedly not rational have been eliminated. This is one of the major reasons behind the little success in rational finance predictions. Despite the minimal results, adherents of this model have criticized the behavioral model as lacking quantifiable predictions that are based on mathematical models. Rational finance has targeted a more important aspect in the structure of economy, i.e. Investor uncertainty, which further cause financial anomalies. In explaining these assertions, the behavioral approach emphasizes importance of taking limits in arbitrage. Further his methodological approach falls into the category `instru mentalism[8], which basically states that theories are tools for predictions and used to draw inferences. Whether an assumption is realistic or rational is of no value to an instrumentalist. By narrowing what may or may not be possible, one will inevitably eliminate certain strategies or behaviors which might in fact go on to maximize utility or profits based on their uniqueness. An assumption could be irrational even in the long run, but it is continuously revised and refined to make it into something useful. In opposition to this, many individuals have said that behaviouralists are not bound by any constraints thus making their explanations systematically irrational. Heaton Rosenberg (2004) further explains the concept of Rubinstein that how when everyone fails to explain a particular anomaly, suddenly a behavioral aspect to it will come up, because that can be based on completely abstract irrational assumptions. To support rationality, he came up with two arguments. Firstly he w ent on to say that an irrational strategy that is profitable, will only attract copy cat firms or traders into the market. This is supported when a closer look is given towards limits to arbitrage. Secondly through the process of evolution, irrational decisions will eventually be eliminated in the long run. The major achievements characterized of the rational finance paradigm consist of the following: the principle of no arbitrage; market efficiency, the net present value decision rule, and derivatives valuation techniques; Markowitzs (1952) mean-variance framework; event studies; multifactor models such as the APT, ICAPM, and the Consumption CAPM. Despite the number of top achievements that supporters of the rational model claim, the paradigm fails to answer some of the most basic financial economic questions such as `What is the cost of capital for this firm? or `What is its optimal capital structure?; simply because of their self imposed constraints. So far this makes it seem lik e rational finance and behavioral finance are mutually exclusive. Contrary to this, they are actually interdependent, and overlap in several areas. Take for instance the concept of mispricing when there is no arbitrage. Behavior finance on the other hand suggests that this may not be the case; irrational assumptions in the market will still lead to mispricing. Further even though certain arbitrageurs may be able to identify irrationality induced mispricing, because of the imperfect market information, they are unable to convince investors of its existence. Over here, the rational model is accepting the existence of anomalies which are affected both through the factors of risk and chance; therefore coinciding with the perspective of behavioral finance. Two instances are clear examples of how rationalization is an important limit of arbitrage: i) the build-up and blow-up of the internet bubble; and ii) the superiority of value equity strategies. If we focus on the latter, we are able to see behavioral finance literature that highlights the superiority of such strategies in the ability of analysts to extrapolate results for investors. This is possible when rationalization is taken as a limit to arbitrage. Similarly these strategies may also limit arbitrage against mispricing, through the great risk associated with stocks. In explaining most anomalies it is essential that analysts first conclude whether pricing is rational or not. To prove their hypothesis that irrationality induced mispricing exists; behaviouralists may find it easier if they accepted the role of rationalization in limits of arbitrage. Slow information diffusion and short-sales constraints are other factors which explain mispricing. However these factors alone cannot form the basis of a strong and concrete explanation that will clarify pricing across firms and also across time. Those supporting the rational paradigm attack behavioral finance adherents in that their predictions for the financial markets have been made on irrational assumptions; that are not supported by concrete mathematical or scientific models. In their view the lack of concrete discipline in the methodology adopted in behavior finance leads to the lack of testing in their forecasts. On the other hand the rational model is criticized for its lack of success in financial predictions. The behaviouralists claim that this limitation exists because the supporters of rational finance dismiss aspects of the economic market simply because it may not fall into explainable rational behavior. Both perspectives claim to align themselves with respect to the goals of `testability and `predictions, while at the same time continue to offer evidence against the other model. In reality however, rather than being exclusively mutual both paradigms assist one another in making their predictions. Ray (2006) examines a new genre of behavioral markets prediction markets and their remarkable a bility to aggregate inside and expert information from around the world in order to accurately predict all types of economic and financial variables. To date it is said that the prediction markets are the most accurately efficient markets as they prove to show all three forms of market efficiency (weak, semi-strong, and strong), in contrast to regulated markets. Prediction markets are also said to be decision markets. It initially evolved in 1988 with the first online betting market the Iowa Electronic Market. These online markets have proven their predictions accurately since the time they came into being. To be precise these prediction markets are behavioral markets with powerful statistical components that are able to predict the most likely values of future financial variables, variances around such values, and their correlations with other future financial variables. Ray (2006) says that being unregulated, prediction markets are highly effective at flushing out and thereafter a ggregating relevant information including inside and expert information regarding a particular event, globally extracting such information from savvy bettors who are eager to profit from their inside and expert information. These sorts of prediction markets have become so popular that now a days major companies use such behavioral markets to accurately forecast sales, earnings, product success, and many other financial and economic variables. The foremost tool for these markets is the wisdom of crowd. In order to accurately predict financial and economical variables he presented few conditions as a prerequisite, which included mainly having a variety of opinions, with no herd behavior, should be able to use their knowledge according to the information available with them and last but not the least is the fact that prediction markets expectations are not self fulfilling prophecies. Prediction markets are a new genre of behavioral markets that continually reveal the thinking of confid ent insiders by suggesting them to profit from their inside and expert information. The subjective evidence with a few statistical evidences corroborates the impressive ability of these markets to predict financial events of all types. The phenomenon exists from ages and effectively proves its performance especially in worlds financial markets. The demonstrated accuracy of predictions in these markets can be of significant utility to traders, financial analysts, behavioral analysts, and many others intending to forecast and analyze financial data. A persons tendency to make errors is known as cognitive bias. These errors are based on the cognitive factors that include statistical judgments, social attribution and memory being common to all the humans in the world. Cognitive bias is the tendency of intelligent, well-informed people to consistently do the wrong thing. Crowell (1994, pp. 1). The reason behind this cognitive bias is that the Human brain is made for interpersonal relationships and not for processing statistics. He discussed the frailty of forecasts. Generally it is said that the world is divided into two groups: People forecasting positively and people forecasting negatively. These forecasts exaggerate the reliability of their forecasts and trace it to the illusion of validity which exists even when the illusionary character is recognized. Fisher and Statman, (2000) discussed five cognitive bias, underlying the illusion of validity that are Overconfidence, Confirmation, Representativeness, Anchoring, and Hindsight. Shiller (2002) discusses, that irrational behavior may disappear with more learning and a much more structured situation. History proves it that many of cognitive biases in human judgment value uncertainly will change; they may be convinced if given proper instructions, on the part-experience of irrational behavior. The three most common themes of behavioral finance are as follows: Heuristics, Framing and Market Inefficiencies. People when decide on the basis of the rules of thumb regardless of rationalizing suffer from Heuristics. Some forms of Heuristics are: Prospect theory, Loss Aversion, Status quo Bias, Gamblers Fallacy[9], Self-serving bias and lastly Money illusion. Framing is basically a problem of decision making where the decision is based on the point where there is difference in how the case is presented to the decision maker. Cognitive framing, Mental accounting and Anchoring are the common forms of Framing 3. Market Inefficiencies As observed, that market outcomes are totally opposite to rational expectations and efficient market hypothesis where mispricing, irrational decision making and return anomalies are examples of it. Fung (2006) introduced three forms of market efficiency earlier presented by Fama in 1970. In the weak form, the information set con ­tains only historical prices. In the semi strong form, information set contains all publicly available information. In the strong form, the infor ­mation contains not only all publicly available information but also insider information not available to the public. This definition of efficient mar ­kets is too general to be testable empirically. To make the model testable, he proposed a process of price formation known as the expected re ­turn or fair game efficient markets model. In this model, when investors form expectations of security prices, they fully utilize all the information that is fully reflected in those prices. It is called a fair game model, because using only the information that is fully reflected in security prices, no trading system can have expected profits or returns in excess of equi ­librium expected profits or returns. These terms have been described as specific market anomaly from a behavioral point of view. Anomaly (economic behavior) Disposition effect Endowment effect Inequity aversion Intertemporal consumption Present-biased preferences Momentum investing Greed and fear Herd behavior Anomalies (market prices and returns) Efficiency wage hypothesis Limits to arbitrage Dividend puzzle Equity premium puzzle Behavioral Economic Models are restricted to a certain observed market anomaly and it adjusts the neo classical models by explaining the phenomenon of Heuristics and framing to the decision makers. It is usually said that economics get along with in the neo classical framework, with just one restriction of the assumption of rationality. Loix et. Al (2005) in their paper Orientation towards Finances explains the individual financial management behavior, people dealing with their financial means. They have analyzed the Non-specific financial behavior as already we see extensive research on the specific finance behavior such as saving, taxation, gambling and amassing debt, and gave a lot of importance to stock market, investors and households. The analysis of general public`s behavior was done, where an ordinary man is not sure and simply act according to the guesses over their money related issues. It was also found that people interested in economic and financial matters are much more active in collecting specific information than general public, stating that financial behavior of household is an important relevant topic that needs to be discussed in much more details. Household financial management is similar to the financial management. The construct of orientation towards finances was developed where the individual ORTO FIN focuses on competencies (interest and skills). Having stronger money attitude is an indication of stronger orientation towards finances and much more effective competencies. Therefore we expect some relevance and similarity between corporate and household management behavior as both require organizing, forecasting, planning and control. Loix et. al (2005) analyzed general publics behavior in basically dividing them into two groups, Financial Information and Personal financial planning. Also explaining some practical and theoretical gaps in the area of psychology of money usage, they concluded that ORTOFIN (Orientation towards finance) indicates the involvement of individuals in managing their finances. Proving out the point that active interest in financial information and an urge to plan expenses are two main factors. A stronger ORTFIN indicates: greater use of debit accounts, higher savings account, wide variety of investments, greater awareness of ones financial Intimate knowledge of the details of ones savings/deposit accounts obsessed by money, higher achievement and power in monetary terms, Further age is also inversely proportional. Shiller, (2006) in his article talked about the co-evolution of neo-classical and behavior finance that in 1937 when A. Samuelsson one of the great economists wrote about people m aximizing the present value of utility subject to a present value. Another judgment he realized was time being consistent human behavior where if at any time t, 0 4. Investing and Cognitive Bias Money Managers and Money management is a very popular phenomenon. The performance in a stock market is measured at daily basis and waiting for a highly subjective annual review of ones performance by ones superior. Market grades you on a daily basis. The smarter one is, more confident one becomes of ones ability to succeed; clients support them by trusting them that eventually helps their careers. But the truth is that few money managers put in sufficient amount of time and effort to figure out what works and develop a set of investment principles to guide their investment decisions Browne (2000). Further he discussed the importance of asset allocation and risk aversion, in order to understand why we do what we do regardless of whether it is rational or not. General public opts for money Managers to deal with their finances and these managers are categorized in three ways: Value Managers, Growth Managers and Market Neutral Managers. The vast majority of money managers are categorized as either value managers or growth managers although a third category, market neutral managers, is gaining popularity these days and may soon rival the so-called strategies of value and growth. Some investment management firms even are being cautious by offering all styles of investments. What too few money managers do is analyze the fundamental financial characteristics of portfolios that produce long-term market beating results, and develop a set of investment principles that are based on those findings. Difference of opinion on the definition of value is the problem. The reasons for this are two-fold, one being the practical reality of managing large sums of money, and other related to behavior. As the assets under management of an advisor grow, universe of potential stocks shrinks. Analyzing why individual and professional investors do not change their behavior even when they face empirical evidence, suggests that their decisions are less than optimal. An answer to this questio n is said to be that being a contrarian may simply be too risky for the average individual or professional. If a person is wrong on collective basis, where everyone else also had made a mistake, the consequences professionally and for ones own self-esteem are far less damaging than if a person is wrong alone. The herd instinct allows for comfort of safety in numbers. The other reason is that individuals try to behave same way and do not tend to change courses of action if they are happy. If the results are not too painful individuals can be happy with sub-optimal results. Moreover, individuals who tend to be unhappy make changes often and eventually end up being just as unhappy in their new circumstances. According to traditional view of investment management, fundamental forces drive markets, however many other investment firms are consider being active and basing their working on their experienced Judgment. It is also believed that Judgmental overrides value and fundamental forces of markets can be lethal as well as a cause of financial disappointment. Historically it has been found that people override at wrong times and in most cases would be better off sticking to their investment disciplines and the reason to this behavior is the cognitive bias. According to Crowell (1994) and many other researchers, stocks of small companies with low price/book ratios provide excess returns. Therefore, given a choice among small cheap stocks and large high priced stocks, prominent investors (financial analysts, senior company executives and company directors) will certainly prefer small cheap ones. But the fact is opposite to this situation where these prominent investors would opt for large high priced ones and so suffer from cognitive bias and further regret. The assumptions made by Crowell (1994, pp.2) were that Long term investment value should be negatively correlated with size since small stocks provide superior returns. Long term Investment value should have a negative correlation with Price/book since low Price/Book stocks provide superior returns. Whereas the results Crowell`s survey were contrary stating that Long Term Investment had a positive correlation with size and with Price/Book stocks. Crowell further stated that according to Shefrin and Statman, prominent investors overestimate the probability that a good company is a good stock, relying on the representative heuristics, concluding that superior companies make superior stocks. Discussing the concept of regrets, aversion to regret is different from aversion to risk; Regret is acute when an individual must take responsibility for the final outcome. Aversion to regret leads to a preference for stocks of good companies. The choice of the stocks of bad companies involves more personal responsibility and higher probability of regret. Therefore, two major Cognitive errors appear: We have a double cognitive error: good company always makes good stock (representativeness), and involves less responsibility(Less aversion to regret). (Crowell, 1994,pp.3) The Anti Cognitive bias actions would be admitting to your owned stocks, admitting earlier investment mistakes. Further, taking the responsibility for actions to improve their performance in future. The reasons for all the available discip