The Organizational Ethics of Lockheed Martin Essay Example for Free

The Organizational Ethics of Lockheed Martin Essay Lockheed Martins Vision statement reads as follows; (Who We Are) be the global leader in supporting our customers to strengthen global security, deliver citizen services and advance scientific discovery. Lets break this statement down into separate components. First, supporting our customers to strengthen global security, is a phrase that is limited to a customer base but also inclusive to the entire globe. The ethical question with this part of their mission statement is; at what point does an organization like Lockheed impose their own ethical limits over their customers? This is a prime example of external factors influencing the companys ethical standards. Lockheed can find themselves at the mercy of their customers request and desires. This can lead to taking on a project that they may not be ethically inline with. They are in essence giving their customer complete control over what they believe is ethical in global security. This can obviously turn into a bias view of whats good for the world, when left up to a specific group of customers. The next part of the statement then puts the ethical decisions back into the hands of Lockheed, deliver citizen services. With this sentiment Lockheed gets to choose the services within a society that it feels will serve that citizens the best. Finally and maybe the most ethically sensitive area of Lockheeds mission, is advance scientific discovery. Science, especially in the area of discovery, can lead to many ethical questions depending on the nature of the research. The biggest questions arise when animal or human testing is involved. To specifically address their ethical philosophy Lockheed released this statement; ( ) We are committed to the highest standards of ethical  conduct in all that we do. We believe that honesty and integrity engender trust, which is the cornerstone of our business. We abide by the laws of the United States and other countries in which we do business, we strive to be good citizens and we take responsibility for our actions. The reality is Lockheed is in the business of making some of the worlds most advanced and destructive military weapon systems. Even though their products are used in combat to kill the enemy, there are still laws and rules governing the how destructive and lethal these weapons can be. Lockheed does make sure to operate within the guidelines set forth by Geneva Convention Treaties and Rules of Armed Conflict. These guidelines are examples of legal factors that give Lockheed guidance of where the ethical lines should be drawn. Lockheed addresses the fact that they not only have their own ethical standards to adhere to but that they are also a direct reflection of their suppliers. (Who We Are ), We want our suppliers to understand, foster, and mirror the ethical conduct we expect from our employees in all business challenges and transactions. This places them in the unique situation, not only to monitor their practices but also those of the organizations providing the materials they need to do business. Lockheed Martin expects their contractors to behave in a manner consistent with the principles of their code of ethics. One key element in regards to their suppliers is that Lockheed requires their suppliers to have a set and standardized Code of Ethics Programs within each organization. Lockheed also holds their employees to the same standards as their suppliers. In Lockheeds 2012 Employee Perspectives Survey, employees stated that they were more apt to report unethical behavior activity, while the percent of misconduct reported was at an all time low. Leo S. Mackay Jr., vice president of Ethics and Sustainability says, (FIve Lessons) â€Å"Even if you didn’t know anything about our Code of Ethics and Business Conduct, if you followed the value statements Do what’s right, Respect others, and Perform with excellence you could come pretty close to how we would want you to act in any situation that involved an ethical judgment.† One thing that makes Lockheeds ethic program work is the ethics officers, at the business level, are embedded directly with the employees. These ethics officers  attend business and planning meetings. This ensures that the officers understand the businesses they support, and by participating in the field they are able to bridge the gap between business and ethics. When employees have to deal with ethical issues, they have specific avenues to reach out to including; talking to their ethics officer, calling the Corporate Ethics HelpLine, or sending an email directly to the Lockheed Ethics Department. It is important to note that the aforementioned ethics officers are elected officials from within the company. Lockheed Martin must report certain types of misconduct to the government. This further signifies the importance the responsibility of all employees to report any ethical issues. Every Lockheed employee, even executives, must participate in ethics training once a year. References. Who We Are Ethics. (n.d.). Ethics  · Lockheed Martin. Retrieved July 28, 2014, from http://www.lockheedmartin.com/us/who-we-are/ethics.html Five Lessons for a Successful STEM Career. (n.d.). Polishing Our Ethics Performance  · Lockheed Martin. Retrieved July 28, 2014, from http://www.lockheedmartin.com/us/who-we-are/ethics/culture-ethics.html

Obesity and Fast Food Essay Example for Free

Obesity and Fast Food Essay January 2009 Abstract. We investigate the health consequences of changes in the supply of fast food using the exact geographical location of fast food restaurants. Specifically, we ask how the supply of fast food affects the obesity rates of 3 million school children and the weight gain of over 1 million pregnant women. We find that among 9th grade children, a fast food restaurant within a tenth of a mile of a school is associated with at least a 5. 2 percent increase in obesity rates. There is no discernable effect at . 25 miles and at . 5 miles. Among pregnant women, models with mother fixed effects indicate that a fast food restaurant within a half mile of her residence results in a 2. 5 percent increase in the probability of gaining over 20 kilos. The effect is larger, but less precisely estimated at . 1 miles. In contrast, the presence of non-fast food restaurants is uncorrelated with obesity and weight gain. Moreover, proximity to future fast food restaurants is uncorrelated with current obesity and weight gain, conditional on current proximity to fast food. The implied effects of fast-food on caloric intake are at least one order of magnitude smaller for mothers, which suggests that they are less constrained by travel costs than school children. Our results imply that policies restricting access to fast food near schools could have significant effects on obesity among school children, but similar policies restricting the availability of fast food in residential areas are unlikely to have large effects on adults. The authors thank John Cawley and participants in seminars at the NBER Summer Institute, the 2009 AEA Meetings, the ASSA 2009 Meetings, the Federal Reserve Banks of New York and Chicago, The New School, the Tinbergen Institute, the Rady School at UCSD, and Williams College for helpful comments. We thank Cecilia Machado, Emilia Simeonova, Johannes Schmeider, and Joshua Goodman for excellent research assistance. We thank Glenn Copeland of the Michigan Dept. of Community Health, Katherine Hempstead and Matthew Weinberg of the New Jersey Department of Health and Senior Services, Craig Edelman of the Pennsylvania Dept. of Health, Rachelle Moore of the Texas Dept. of State Health Services, and Gary Sammet and Joseph Shiveley of the Florida Department of Health for their help in accessing the data. The authors are solely responsible for the use that has been made of the data and for the contents of this article. 1 1. Introduction The prevalence of obesity and obesity related diseases has increased rapidly in the U. S. since the mid 1970s. At the same time, the number of fast food restaurants more than doubled over the same time period, while the number of other restaurants grew at a much slower pace according to the Census of Retail Trade (Chou, Grossman, and Saffer, 2004). In the public debate over obesity it is often assumed that the widespread availability of fast food restaurants is an important determinant of the dramatic increases in obesity rates. Policy makers in several cities have responded by restricting the availability or content of fast food, or by requiring posting of the caloric content of the meals (Mcbride, 2008; Mair et al. 2005). But the evidence linking fast food and obesity is not strong. Much of it is based on correlational studies in small data sets. In this paper we seek to identify the causal effect of increases in the supply of fast food restaurants on obesity rates. Specifically, using a detailed dataset on the exact geographical location restaurant establishments, we ask how proximity to fast food affects the obesity rates of 3 million school children and the weight gain of over 1 million pregnant women. For school children, we observe obesity rates for 9th graders in California over several years, and we are therefore able to estimate cross-sectional as well fixed effects models that control for characteristics of schools and neighborhoods. For mothers, we employ the information on weight gain during pregnancy reported in the Vital Statistics data for Michigan, New Jersey, and Texas covering fifteen years. 1 We focus on women who have at least two children so that we can follow a given woman across two pregnancies and estimate models that include mother fixed effects. The design employed in this study allows for a more precise identification of the effect of fast-food on obesity compared to the previous literature (summarized in Section 2). First, we observe information on weight for millions of individuals compared to at most tens of thousand in the standard data sets with weight information such as the NHANES and the BRFSS. This substantially increases the power of our estimates. Second, we exploit very detailed geographical location information, including distances The Vital Statistics data reports only the weight gain and not the weight at the beginning (or end) of the pregnancy. One advantage of focusing on a longitudinal measure of weight gain instead of a measure of weight in levels is that only the recent exposure to fast-food should matter. 1 2 of only one tenth of a mile. By comparing groups of individuals who are at only slightly different distances to a restaurant, we can arguably diminish the impact of unobservable differences in characteristics between the two groups. Third, we have a more precise idea of the timing of exposure than many previous studies: The 9th graders are exposed to fast food near their new school from September until the time of a spring fitness test, while weight gain during pregnancy pertains to the 9 months of pregnancy. While it is clear that fast food is generally unhealthy, it is not obvious a priori that changes in the availability of fast food should be expected to have an impact on health. On the one hand, it is possible that proximity to a fast food restaurant simply leads local consumers to substitute away from unhealthy food prepared at home or consumed in existing restaurants, without significant changes in the overall amount of unhealthy food consumed. On the other hand, proximity to a fast food restaurant could lower the monetary and non-monetary costs of accessing unhealthy food. In addition, proximity to fast food may increase consumption of unhealthy food even in the absence of any decrease in cost if individuals have self-control problems. Ultimately, the effect of changes in the supply of fast food on obesity is an empirical question. We find that among 9th grade children, the presence of a fast-food restaurant within a tenth of a mile of a school is associated with an increase of about 1. 7 percentage points in the fraction of students in a class who are obese relative to the presence at. 25 miles. This effect amounts to a 5. 2 percent increase in the incidence of obesity. Since grade 9 is the first year of high school and the fitness tests take place in the Spring, the period of fast-food exposure is approximately 30 weeks, implying an increased caloric intake of 30 to 100 calories per school-day. The effect is larger in models that include school fixed effects. Consistent with highly non–linear transportation costs, we find no discernable effect at . 25 miles and at . 5 miles. The effect is largest for Hispanic students and female students. Among pregnant women, we find that a fast food restaurant within a half mile of a residence results in 0. 19 percentage points higher probability of gaining over 20kg. This amounts to a 2. 5 percent increase in the probability of gaining over 20 kilos. The effect is larger at . 1 miles, but in contrast to the results for 9th graders, it is still discernable at . 25 miles and at . 5 miles. The increase in weight implies an increased caloric intake of 1 to 4 3 calories per day in the pregnancy period. The effect varies across races and educational levels. It is largest for African American mothers and for mothers with a high school education or less. It is zero for mothers with a college degree or an associate’s degree. Overall, our findings suggest that increases in the supply of fast food restaurants have a significant effect on obesity, at least in some groups. However, it is in principle possible that our estimates reflect unmeasured shifts in the demand for fast food. Fast food chains are likely to open new restaurants where they expect demand to be strong, and higher demand for unhealthy food is almost certainly correlated with higher risk of obesity. The presence of unobserved determinants of obesity that may be correlated with increases in the number of fast food restaurants would lead us to overestimate the role of fast food restaurants. We can not entirely rule out this possibility. However, three pieces of evidence lend some credibility to our interpretation. First, we find that observable characteristics of the schools are not associated with changes in the availability of a fast food in the immediate vicinity of a school. Furthermore, we show that within the geographical area under consideration, fast food restaurants are uniformly distributed over space. Specifically, fast food restaurants are equally likely to be located within . 1, . 25, and . 5 miles of a school. We also find that after conditioning on mother fixed effects, the observable characteristics of mothers that predict high weight gain are negatively (not positively) related to the presence of a fast-food chain, suggesting that any bias in our estimates may be downward, not upward. While these findings do not necessarily imply that changes in the supply of fast food restaurants are orthogonal to unobserved determinants of obesity, they are at least consistent with our identifying assumption. Second, while we find that proximity to a fast food restaurant is associated with increases in obesity rates and weight gains, proximity to non fast food restaurants has no discernible effect on obesity rates or weight gains. This suggests that our estimates are not just capturing increases in the local demand for restaurant establishments. Third, we find that while current proximity to a fast food restaurant affects current obesity rates, proximity to future fast food restaurants, controlling for current proximity, has no effect on current obesity rates and weight gains. Taken together, the weight of the 4 evidence is consistent with a causal effect of fast food restaurants on obesity rates among 9th graders and on weight gains among pregnant women. The results on the impact of fast-food on obesity are consistent with a model in which access to fast-foods increases obesity by lowering food prices or by tempting consumers with self-control problems. 2 Differences in travel costs between students and mothers could explain the different effects of proximity. Ninth graders have higher travel costs in the sense that they are constrained to stay near the school during the school day, and hence are more affected by fast-food restaurants that are very close to the school. For this group, proximity to fast-food has a quite sizeable effect on obesity. In contrast, for pregnant women, proximity to fast-food has a quantitatively small (albeit statistically significant) impact on weight gain. Our results suggest that a ban on fast-foods in the immediate proximity of schools could have a sizeable effect on obesity rates among affected students. However, a similar attempt to reduce access to fast food in residential neighborhoods would be unlikely to have much effect on adult consumers. The remainder of the paper is organized as follows. In Section 2 we review the existing literature. In Section 3 we describe our data sources. In Section 4, we present our econometric models and our empirical findings. Section 5 concludes. 2. Background While the main motivation for focusing on school children and pregnant women is the availability of geographically detailed data on weight measures for a very large sample, they are important groups to study in their own right. Among school aged children 6-19 rates of overweight have soared from about 5% in the early 1970s to 16% in 1999-2002 (Hedley et al. 2004). These rates are of particular concern given that children who are overweight are more likely to be overweight as adults, and are increasingly suffering from diseases associated with obesity while still in childhood (Krebs and Jacobson, 2003). At the same time, the fraction of women gaining over 60 2 Consumers with self-control problems are not as tempted by fatty foods if they first have to incur the transportation cost of walking to a fast-food restaurant. Only when a fast-food is right near the school, the temptation of the fast-food looms large. For an overview of the role of self-control in economic applications, see DellaVigna (2009). A model of cues in consumption (Laibson, 2001) has similar implications: a fast-food that is in immediate proximity from the school is more likely to trigger a cue that leads to over-consumption. 5 pounds during pregnancy doubled between 1989 and 2000 (Lin, forthcoming). Excessive weight gain during pregnancy is often associated with higher rates of hypertension, C-section, and large-for-gestational age infants, as well as with a higher incidence of later maternal obesity (Gunderson and Abrams, 2000; Rooney and Schauberger, 2002; Thorsdottir et al. , 2002; Wanjiku and Raynor, 2004). 3 Moreover, Figure 1 shows that the incidence of low APGAR scores (APGAR scores less than 8), an indicator of poor fetal health, increases sharply with weight gain above about 20 kilograms. Critics of the fast food industry point to several features that may make fast food less healthy than other types of restaurant food (Spurlock, 2004; Schlosser, 2002). These include low monetary and time costs, large portions, and high calorie density of signature menu items. Indeed, energy densities for individual food items are often so high that it would be difficult for individuals consuming them not to exceed their average recommended dietary intakes (Prentice and Jebb, 2003). Some consumers may be particularly vulnerable. In two randomized experimental trials involving 26 obese and 28 lean adolescents, Ebbeling et al. (2004) compared caloric intakes on â€Å"unlimited fast food days† and â€Å"no fast food days†. They found that obese adolescents had higher caloric intakes on the fast food days, but not on the no fast food days. The largest fast food chains are also characterized by aggressive marketing to children. One experimental study of young children 3 to 5 offered them identical pairs of foods and beverages, the only difference being that some of the foods were in McDonald’s packaging. Children were significantly more likely to choose items perceived to be from McDonald’s (Robinson et al.2007). Chou, Grossman, and Rashad (forthcoming) use data from the National Longitudinal Surveys (NLS) 1979 and 1997 cohorts to examine the effect of exposure to fast food advertising on overweight among children and adolescents. In ordinary least squares (OLS) models, they find significant effects in most specifications. 4 3 According to the Centers for Disease Control, obesity and excessive weight gain are independently associated with poor pregnancy outcomes. Recommended weight gain is lower for obese women than in others. (http://www. cdc.gov/pednss/how_to/read_a_data_table/prevalence_tables/birth_outcome. htm) 4 They also estimate instrumental variables (IV) models using the price of advertising as an instrument. However, while they find a significant â€Å"first stage†, they do not report the IV estimates because tests 6 Still, a recent review of the considerable epidemiological literature about the relationship between fast food and obesity (Rosenheck, 2008) concluded that â€Å"Findings from observational studies as yet are unable to demonstrate a causal link between fast food consumption and weight gain or obesity†. Most epidemiological studies have longitudinal designs in which large groups of participants are tracked over a period of time and changes in their body mass index (BMI) are correlated with baseline measures of fast food consumption. These studies typically find a positive link between obesity and fast food consumption. However, existing observational studies cannot rule out potential confounders such as lack of physical activity, consumption of sugary beverages, and so on. food. 5 There is also a rapidly growing economics literature on obesity, reviewed in Philipson and Posner (2008). Economic studies place varying amounts of emphasis on increased caloric consumption as a primary determinant of obesity (a trend that is consistent with the increased availability of fast food). Using data from the NLSY, Lakdawalla and Philipson (2002) conclude that about 40% of the increase in obesity from 1976 to 1994 is attributable to lower food prices (and increased consumption) while the remainder is due to reduced physical activity in market and home production. Bleich et al. (2007) examine data from several developed countries and conclude that increased caloric intake is the main contributor to obesity. Cutler et al. (2003) examine food diaries as well as time use data from the last few decades and conclude that rising obesity is linked to increased caloric intake and not to reduced energy expenditure. 6 7 Moreover, all of these studies rely on self-reported consumption of fast suggest that advertising exposure is not endogenous. They also estimate, but do not report individual fixed effects models, because these models have much larger standard errors than the ones reported. 5 A typical question is of the form â€Å"How often do you eat food from a place like McDonald’s, Kentucky Fried Chicken, Pizza Hut, Burger King or some other fast food restaurant? † 6 They suggest that the increased caloric intake is from greater frequency of snacking, and not from increased portion sizes at restaurants or fattening meals at fast food restaurants. They further suggest that technological change has lowered the time cost of food preparation which in turn has lead to more frequent consumption of food. Finally, they speculate that people with self control problems are over-consuming in response to the fall in the time cost of food preparation. Cawley (1999) discusses a similar behavioral theory of obesity as a consequence of addiction. 7 Courtemanche and Carden examine the impact on obesity of Wal-Mart and warehouse club retailers such as Sam’s club, Costco and BJ’s wholesale club which compete on price. They link store location data to individual data from the Behavioral Risk Factor Surveillance System (BRFSS. ) They find that non-grocery selling Wal-Mart stores reduce weight while non-grocery selling stores and warehouse clubs either reduce weight or have no effect. Their explanation is that reduced prices for everyday purchases expand real 7 A series of recent papers explicitly focus on fast food restaurants as potential contributors to obesity. Chou et al. (2004) estimate models combining state-level price data with individual demographic and weight data from the Behavioral Risk Factor Surveillance surveys and find a positive association between obesity and the per capita number of restaurants (fast food and others) in the state. Rashad, Grossman, and Chou (2005) present similar findings using data from the National Health and Nutrition Examination Surveys. Anderson and Butcher (2005) investigate the effect of school food policies on the BMI of adolescent students using data from the NLSY97. They assume that variation in financial pressure on schools across counties provides exogenous variation in availability of junk food in the schools. They find that a 10 percentage point increase in the probability of access to junk food at school can lead to about 1 percent increase in students BMI. Anderson, Butcher and Schanzenbach (2007) examine the elasticity of children’s BMI with respect to mother’s BMI and find that it has increased over time, suggesting an increased role for environmental factors in child obesity. Anderson, Butcher, and Levine (2003) find that maternal employment is related to childhood obesity, and speculate that employed mothers might spend more on fast food. Cawley and Liu (2007) use time use data and find that employed women spend less time cooking and are more likely to purchase prepared foods. The paper that is closest to ours is a recent study by Anderson and Matsa (2009) that focuses on the link between eating out and obesity using the presence of Interstate highways in rural areas as an instrument for restaurant density. Interstate highways increase restaurant density for communities adjacent to highways, reducing the travel costs of eating out for people in these communities. They find no evidence of a causal link between restaurants and obesity. Using data from the USDA, they argue that the lack of an effect is due to the presence of selection bias in restaurant patrons –people who eat out also consume more calories when they eat at homeand the fact that large portions at restaurants are offset by lower caloric intake at other times of the day. Our paper differs from Anderson and Matsa (2009) in four important dimensions, and these four differences are likely to explain the difference in our findings. incomes, enabling households to substitute away from cheap unhealthy foods to more expensive but healthier alternatives. 8 (i) First, our data allow us to distinguish between fast food restaurants and other restaurants. We can therefore estimate separately the impact of fast-foods and of other restaurants on obesity. In contrast, Anderson and Matsa do not have data on fast food restaurants and therefore focus on the effect of any restaurant on obesity. This difference turns out to be crucial, because when we estimate the effect of any restaurant on obesity using our data we also find no discernible effect on obesity. (ii) Second, we have a very large sample that allows us to identify even small effects, such as mean increases of 50 grams in the weight gain of mothers during pregnancy. Our estimates of weight gain for mothers are within the confidence interval of Anderson and Matsa’s two stage least squares estimates. Put differently, based on their sample size, our statistically significant estimates would have been considered statistically insignificant. (iii) Third, our data give us the exact location of each restaurant, school and mother. The spatial richness of our data allows us to examine the effect of fast food restaurants on obesity at a very detailed geographical level. For example, we can distinguish the effect at . 1 miles from the effect at . 25 miles. As it turns out, this feature is quite important, because the effects that we find are geographically extremely localized. For example, we find that fast food restaurant have an effect on 9th graders only for distances of . 1 miles or less. By contrast, Anderson and Matsa use a city as the level of geographical analysis. It is not surprising that at this level of aggregation the estimated effect is zero. (iv) Fourth, Anderson and Matsa’s identification strategy differs from ours, since we do not use an instrument for fast-food availability and focus instead on changes in the availability of fast-foods at very close distances. The populations under consideration are also different, and may react differently to proximity to a fast food restaurant. Anderson and Matsa focus on predominantly white rural communities, while we focus on primarily urban 9th graders and urban mothers. We document that the effects vary considerable depending on race, with blacks and Hispanics having the largest effect. Indeed, when Dunn (2008) uses an instrumental variables approach similar to the one used Anderson and Matsa based on proximity to freeways, he finds no effect for rural areas and for 9 whites in suburban areas, but strong effect for blacks and Hispanics. As we show below, we also find stronger effects for minorities. Taken together, these four differences lead us to conclude that the evidence in Anderson and Matsa is consistent with our evidence. 8 In summary, there is strong evidence of correlations between fast food consumption and obesity. It has been more difficult to demonstrate a causal role for fast food. In this paper we tap new data in an attempt to test the causal connection between fast food and obesity. 3. Data Sources and Summary Statistics Data for this project comes from three sources. (a) School Data. Data on children comes from the California public schools for the years 1999 and 2001 to 2007. The observations for 9th graders, which we focus on in this paper, represent 3. 06 million student-year observations. In the spring, California 9th graders are given a fitness assessment, the FITNESSGRAM ®. Data is reported at the class level in the form of the percentage of students who are obese, and who have acceptable levels of abdominal strength, aerobic capacity, flexibility, trunk strength, and upper body strength. Obesity is measured using actual body fat measures, which are considerably more accurate than the usual BMI measure (Cawley and Burkhauser, 2006). Data is also reported for sub-groups within the school (e. g. by race and gender) provided the cells have at least 10 students. Since grade 9 is the first year of high school and the fitness tests take place in the Spring, this impact corresponds to approximately 30 weeks of fast-food exposure. 9 This administrative data set is merged to information about schools (including the percent black, white, Hispanic, and Asian, percent immigrant, pupil/teacher ratios, fraction eligible for free lunch etc. ) from the National Center for Education Statistic’s Common Core of Data, as well as to the Start test scores for the 9th grade. The location of the school was also geocoded using ArcView. Finally, we merged in information. 8 9 See also Brennan and carpenter (2009). In very few cases, a high school is in the same location as a middle school, in which case the estimates reflect a longer-term impact of fast-food. 10 about the nearest Census block group of the school from the 2000 Census including the median earnings, percent high-school degree, percent unemployed, and percent urban. (b) Mothers Data. Data on mothers come from Vital Statistics Natality data from Michigan, New Jersey, and Texas. These data are from birth certificates, and cover all births in these states from 1989 to 2003 (from 1990 in Michigan). For these three states, we were able to gain access to confidential data including mothers names, birth dates, and addresses, which enabled us both to construct a panel data set linking births to the same mother over time, and to geocode her location (again using ArcView). The Natality data are very rich, and include information about the mother’s age, education, race and ethnicity; whether she smoked during pregnancy; the child’s gender, birth order, and gestation; whether it was a multiple birth; and maternal weight gain. We restrict the sample to singleton births and to mothers with at least two births in the sample, for a total of over 3. 5 million births. (c) Restaurant Data. Restaurant data with geo-coding information come from the National Establishment Time Series Database (Dun and Bradstreet). These data are used by all major banks, lending institutions, insurance and finance companies as the primary system for creditworthiness assessment of firms. As such, it is arguably more precise and comprehensive than yellow pages and business directories. 10 We obtained a panel of virtually all firms in Standard Industrial Classification 58 from 1990 to 2006, with names and addresses. Using this data, we constructed several different measures of â€Å"fast food† and â€Å"other restaurants,† as discussed further in Appendix 1. In this paper, the benchmark definition of fast-food restaurants includes only the top-10 fast-food chains, namely, Mc Donalds, Subway, Burger King, Taco Bell, Pizza Hut, Little Caesars, KFC, Wendy’s, Dominos Pizza, and Jack In The Box. We also show estimates using a broader definition that includes both chain restaurants and independent burger and pizza restaurants. Finally, we also measure the supply of non-fast food restaurants. The definition of â€Å"other restaurants† changes with the definition of fast food. Appendix Table 1 lists the top 10 fast food chains as well as examples of restaurants that we did not classify as fast food. The yellow pages are not intended to be a comprehensive listing of businesses they are a paid advertisement. Companies that do not pay are not listed. 10 11 Matching. Matching was performed using information on latitude and longitude of restaurant location. Specifically, we match the schools and mother’s residence to the closest restaurants using ArcView software. For the school data, we match the results on testing for the spring of year t with restaurant availability in year t-1. For the mother data, we match the data on weight gain during pregnancy with restaurant availability in the year that overlaps the most with the pregnancy. Summary Statistics. Using the data on restaurant, school, and mother’s locations, we constructed indicators for whether there are fast food or other restaurants within . 1, . 25, and . 5 miles of either the school or the mother’s residence. Table 1a shows summary characteristics of the schools data set by distance to a fast food restaurant. Here, as in most of the paper, we use the narrow definition of fast-food, including the top-10 fast-food chains. Relatively few schools are within . 1 miles of a fast food restaurant, and the characteristics of these schools are somewhat different than those of the average California school. Only 7% of schools have a fast food restaurant within . 1 miles, while 65% of all schools have a fast food restaurant within 1/2 of a mile. 11 Schools within . 1 miles of a fast food restaurant have more Hispanic students, a slightly higher fraction of students eligible for free lunch, and lower test scores. They are also located in poorer and more urban areas. The last row indicates that schools near a fast food restaurant have a higher incidence of obese students than the average California school. Table 1b shows a similar summary of the mother data. Again, mothers who live near fast food restaurants have different characteristics than the average mother. They are younger, less educated, more likely to be black or Hispanic, and less likely to be married. 4. Empirical Analysis We begin in Section 4. 1 by describing our econometric models and our identifying assumptions. In Section 4. 2 we show the correlation between restaurant location and student characteristics for the school sample, and the correlation between The average school in our sample had 4 fast foods within 1 mile and 24 other restaurants within the same radius. 11 12 restaurant location and mother characteristics for the mother sample. Our empirical estimates for students and mothers are in Section 4. 3 and 4. 4, respectively. 13 4. 1 Econometric Specifications Our empirical specification for schools is (1) Yst = ? F1st + ? F25st + ? F50st + ? ’ N1st + ? ’ N25st + ? ’ N50st + ? Xst + ? Zst + ds + est where Yst is the fraction of students in school s in a given grade who are obese in year t; F1st is an indicator equal to 1 if there is a fast food restaurant within . 1 mile from the school in year t; F25st is an indicator equal to 1 if there is a fast food restaurant within . 25 miles from the school in year t; F50st is an indicator equal to 1 if there is a fast food restaurant within . 5 mile from the school in year t; N1st, N25st and N50st are similar indicators for the presence of non-fast food restaurants within . 1, . 25 and . 5 miles from the school; ds is a fixed effect for the school. The vectors Xst and Zst include school and neighborhood time-varying characteristics that can potentially affect obesity rates. Specifically, Xst is a vector of school-grade specific characteristics including fraction blacks, fraction native Americans, fraction Hispanic, fraction immigrants, fraction female, fraction eligible for free lunch, whether the school is qualified for Title I funding, pupil/teacher ratio, and 9th grade tests scores, as well as school-district characteristics such as fraction immigrants, fraction of non-English speaking students (LEP/ELL), share of IEP students. Zst is a vector of characteristics of the Census block closest to the school including median income, median earnings, average household size, median rent, median housing value, percent white, percent black, percent Asian, percent.

Skilled Workers Shortage in China: Causes and Effects

Skilled Workers Shortage in China: Causes and Effects In this chapter the researcher will present the theoretical foundation for this dissertation. This review aims to investigate and examine extant literature on the following research questions: Research Question 1: How great is the shortage of skilled workers in China? Research Question 2: How do such shortages in skills affect the working of multinational corporations? Research Question 3: How do multinational corporations, with the use of talent management practices and tools, retain skilled workers, including managerial and executive staff, in China? Information for this literature review has been obtained from a range of secondary sources including books, journal and magazine articles and other media publications, both in online and physical form. Talent management is a comparatively new development in HR theory and practice and much of pertinent and associated literature on the subject exists in the form of publications in various periodicals. Shortage of skilled workers in China is presently attracting a significant amount of concern and material on the subject has been sourced from different articles authored by Chinese and Western experts. The various aspects of the studied subject matter have been taken up in sequence in the interest of coherence and continuity of thought and discussion. 2.1 Shortage of Skilled Workers in China The shortage of skilled workers, whilst of recent origin, is assuming grave dimensions. The Chinese economy has been growing at an astonishing pace for the last two decades (Barbosa 2010). Such phenomenal economic growth has propelled the country from the ranks of the poorest of the poor to the position of the second largest global economy (Barbosa 2010). Having crossed Japan in the GDP rankings in August 2010, the Chinese economy is now second in size to only that of the USA (Barbosa 2010). With it being widely accepted that access to cheap and skilled labour has played a predominant role in the countryà ¢Ã¢â€š ¬Ã¢â€ž ¢s economic performance, the emerging shortages in availability of skilled workers is becoming a serious matter of concern (Powell 2009). Experts feel that the problem, whilst manageable until now, is increasing in various dimensions and can become a serious challenge to the countryà ¢Ã¢â€š ¬Ã¢â€ž ¢s economic growth in the foreseeable future (Powell 2009). à ¢Ã¢â€š ¬Ã…“Various domestic  media reports  put the labour supply gap at around a million people in Guangzhou and neighbouring cities such as Dongguan, legendary centres of Chinaà ¢Ã¢â€š ¬Ã¢â€ž ¢s export boom in the past three decades. Numerous assembly lines and construction sites are sitting idle while anxious employers have raised salaries by more than 30% but still canà ¢Ã¢â€š ¬Ã¢â€ž ¢t attract enough applicantsà ¢Ã¢â€š ¬?. (Hong, S. 2010) The current shortage of skilled workers in China is due to the emergence and interplay of a range of factors (Trading Economic 2010). It is in the first place indisputable that sharply accelerating economic growth in China has created enormous demand for skilled workers (Trading Economic 2010). The Chinese economy has grown in size from an annual GDP of 990 billion USD in 2000 to 4900 billion USD in 2010 (Trading Economic 2010). The last decade has seen the entry of numerous multinationals in the country and the establishment of thousands of local and foreign owned production units (Blanchard 2007). Such production units are now being established in different geographical areas making it easier for workers to obtain gainful employment near their houses (Blanchard 2007). The Chinese government has also in recent years embarked upon developing the economic and physical infrastructure of numerous inland and hitherto neglected provinces (AsiaNews.It. 2006). Airports, roads and housing in upcountry regions are receiving strong investments (AsiaNews.It 2006). Such investments are creating thousands of jobs across the country and reducing migration of workers to zones with strong manufacturing activities (AsiaNews.It 2006). Experts also feel that low wages in the manufacturing sector, along with long working hours and difficult working and living conditions are forcing many workers to give up their jobs in manufacturing units and return to work on their farms (Rein 2010). The Chinese governmentà ¢Ã¢â€š ¬Ã¢â€ž ¢s decision to reduce taxes on agriculture has also helped in reinforcing such attitudes (Rein 2010). The Chinese government has constantly placed emphasis upon development of agriculture and providing of adequate food supplies for the rural population, who constitute 727 million people (Rein 2010). A continuous supply of positive policies, like the elimination of onerous taxes and powerful market intercession, have enhanced rural incomes and made farming rewarding in comparison to skilled jobs in some manufacturing organisations (Rein 2010). China implemented its one child policy in 1979. This has resulted in the development of an ageing population (Hong, S. 2010). The median age of the country, at 33 years, is closer to that of the USA, the UK and the countries of Western Europe, rather than to its southern neighbour India, which has a median age of 26 and whose economy is also growing rapidly and with a swiftness that is second only to that of China (Hong, S. 2010). The ageing population is leading to lesser numbers of people joining the workforce every year and consequentially to restrictions on the availability of skilled workers (Hong, S. 2010). The impact of an ageing population is being felt intensely in manufacturing centres like Shanghai, where people above 60 are expected to constitute practically 30 percent of the total population in another 10 years time (Hong, S. 2010). The numbers of people in the 15-19 age groups in the country have reduced by approximately 17 percent, from 124 million in 2005 to around 10 3 million today (Hong, S. 2010). Academic policies in China have in recent years paid greater attention to academic performance and have neglected imparting of high level vocational training and skills training to people (AsiaNews.It 2006). Many universities have failed to understand market demands and mechanisms in the designing of their courses (AsiaNews.It 2006). Only 200 of the 20,000 vocational schools in the country are aiming to produce skilled workers and technicians with good skills (AsiaNews.It 2006). Such circumstances have added to the reduced availability of skilled workers in the manufacturing sector (AsiaNews.It 2006). Rein (2010) states that the younger Chinese unwilling to work any longer in factories. They are much too buoyant about their work prospects and perceive no compulsion to work for comparatively low wages at long distances from their families (AsiaNews.It 2006). The increase in the number of college and university graduates from just about a million in 2000 to 6 million in 2010 has reduce d the pool for potential skilled workers (AsiaNews.It 2006). Even workers with low skills prefer to stay nearer home in interior provinces like Sichuan and Hunan, rather than relocating to manufacturing centres like Guangdong to work for remuneration that is being increasingly perceived to be insufficient (AsiaNews.It 2006). The shortage of skilled workers is being felt intensely in the export regions of the country like the Pearl River Delta as also the Yangtze River Delta. à ¢Ã¢â€š ¬Ã…“It was officially reported that the city of Shenzhen, on the Hong Kong border, alone faced a labour shortage of about 300,000 workers this year. In Guangdong province, the government said factories were short more than 500,000 workers; and in Fujian province, there was a shortage of 300,000à ¢Ã¢â€š ¬?. (AsiaNews.It 2006) Surveys, conducted a few years ago, revealed that technicians constituted only 4% of the total numbers of skilled workers, even as organisations needed at least 14% technicians in their labour force (Peoples Daily 2004). Personnel who are most in demand include skilled workers, technicians and marketing staff. Such shortages appear to be greater in case of enterprises where skilled workers were not trained adequately (Peoples Daily 2004). Business organisations are also finding it difficult to attract and retain employees in different administrative and managerial positions (Peoples Daily 2004). It is ironical that the country that is widely considered to be the largest reservoir of cheap and skilled workers is now actually hard pressed to find and retain skilled workers as well as supervisors and managers at different levels for its own needs (Peoples Daily 2004). 2.2 Impact of Shortage of Skilled Workers and Managerial Employees on the Working of MNCs in China. Shortage of skilled employees is affecting the working of all business firms, MNCs as well as locally owned establishments, across China (Roberts 2006). Such shortages are in the first case leading to progressively higher levels of attrition and employee turnover in business firms (Roberts 2006). The most important challenge in contemporary Chinese business enterprises concerns attracting, finding and retaining skilled workers (Roberts 2006). The Institute of Contemporary Observation, a research organisation based in Shenzhen, states that employee turnover in low technology industries is nearing an unprecedented 50% (Roberts 2006). There are 2.5 million jobs in the province of Guangdong that are yet to be filled, even as the provinces of Shandong, Jiangsu and Zhejiang are also facing considerable shortages of skilled labour (Roberts 2006). Such shortages are affecting the production of numerous organisations, adversely impacting expansion plans, and restricting organisational growth (Roberts 2006). à ¢Ã¢â€š ¬Ã…“It was officially reported that the city of Shenzhen, on the Hong Kong border, alone faced a labour shortage of about 300,000 workers this year. In Guangdong province, the government said factories were short more than 500,000 workers; and in Fujian province, there was a shortage of 300,000.à ¢Ã¢â€š ¬? (AsiaNews.It 2006) Numerous MNCs have increased their investments in Chinese production centres and built up large capacities (Lane Pollner 2008). The unavailability of the required numbers of skilled workers is leading to underutilisation of capacity, idle machinery, higher finance costs, and poor productivity and profitability (Lane Pollner 2008). Shortages in required numbers of skilled workers are also leading to significant increases in job hopping and in the movement of employees between organisations for the sake of achievement of small salary differentials (Roberts 2006). MNCs and local companies are à ¢Ã¢â€š ¬Ã…“stealingà ¢Ã¢â€š ¬? skilled workers from each other, by offering the target worker a lucrative opportunity such as a better compensation or better benefits. The à ¢Ã¢â€š ¬Ã…“talentà ¢Ã¢â€š ¬? war has led to rapid wage inflation. . MNCs have been increasing salaries to keep existing employees (Downing, Rouleau, and Stuber 2008). Whilst labour intensive industries are facing increasingly severe problems, substantial increases in numbers of employee departures are affecting all low tech and high tech organisations (Roberts 2006). à ¢Ã¢â€š ¬Ã…“Emerson General Manager David Warth says its all he can do to keep his 800 employees from jumping ship to Samsung, Siemens, Nokia, and other multinationals that are now operating in the tech manufacturing hubà ¢Ã¢â€š ¬?. (Roberts, 2006) Increases in employee turnovers and shortages in supply of skilled workers, as well as employees for higher level and managerial jobs, is leading to sharp increases in employee costs. AS Salop and Salop (1976) indicate that labour turnover is costly for all firms. In the event of a sudden employee departure, the firm suffers two types of cost: direct and indirect cost. Direct cost includes leaving costs, replacement costs such as advertising, interviewing and selection costs and transitions costs, and indirect costs refer to the loss of production, reduced performance levels, unnecessary overtime and low morale (Schlesinger and Heskett, 1991). à ¢Ã¢â€š ¬Ã…“Companies across the board are feeling the squeeze. Last year turnover at multinationals in China averaged 14 percent, up from 11.3 percent in 2004 and 8.3 percent in 2001 (AsiaNews.It 2006). Salaries jumped by 8.4 percent, according to human resources consultant Hewitt Associates LLCà ¢Ã¢â€š ¬?. (AsiaNews.It 2006) Minimum wages in China are going up steadily and are currently many times that of Bangladesh, a neighbouring low cost producer (AsiaNews.It 2006). Many organisations are perforce improving the working and living conditions of their employees and the quality of food served in their cafeterias, with result increases in total costs expended on labour (AsiaNews.It 2006 ). Such increases in labour cost have multiple implications (Roberts 2006). At one level companies are seriously thinking of putting up new establishments in interior regions where wages are lower, or even of shifting their operations to lower wage countries like Indonesia or Vietnam (Roberts 2006). Organisations that have already made substantial investments in regions that are now facing labour shortages are experiencing strong pressures on costs and margins (Roberts 2006). Such pressures are leading either to problems with organisational viability or are manifesting themselves in higher product prices and consequent pressure on competitiveness (Roberts 2006).The American Chamber of Commerce recently reported that increasing costs of labour have reduced the margins of practically 48 percent of US organisations that operate in China (Roberts 2006). Teresa Woodland, the author of the report states that China could well run the risk of using its cost advantage (Roberts 2006). The shortage in availability of skilled people goes beyond the workforce and extends too many other organisational areas (Roberts 2006). Mckinsey and company estimate that just about 10 percent of job candidates in areas like engineering, accounting and finance have skills that are necessarily required by foreign organisations (Roberts 2006). Whilst 75,000 jobs for managers are expected to arise in the country during the next five years, the country currently has lesser than 5,000 managers with the required skills (Roberts 2006). Observers believe that the impact of shortage of skilled people on the economic growth and performance of companies and the nation as a whole is likely to be far more powerful than other constraints like material or power. 2.3 Talent Management and its Application in China Multinational corporations in China can benefit in areas concerning employee turnover and improvement of employee retention through the application of contemporary talent management techniques and tools. Organisational managements have over the years constantly tried to develop and adapt in response to workplace changes, right from the days of the industrial revolution and the emergence of labour unions to the demands of automated production, globalisation and outsourcing (Schuler, et al, 2010). Contemporary years are witnessing a global HR movement for attracting and retaining talent (Schuler, et al, 2010). Whilst organisations have in many ways been trying to attract and retain skilled and productive employees for ages, formal talent management processes have emerged only recently (Schuler, et al, 2010). Whilst such practices are now being implemented rigorously by progressive business organisations in the developed economies, they have become extremely relevant in the Chinese envi ronment where an abundance of people is ironically accompanied by shortages in availability of skilled workers and other managerial personnel (Schuler, et al, 2010). 2.3.1 The importance of talent management Talent management represents the systematic use of appropriate HR strategies, policies and practices for management of the talent challenges faced by business organisations (Lane Pollner 2008). Such policies and practices in the Chinese context include attraction of the most appropriate talent, careful selection, training and development, fair and sympathetic evaluation and assessment, high quality training and development and alignment of personnel and business objectives (Lane Pollner 2008). The importance of adopting strong talent management practices for retaining talent assumes great importance in the existing and predicted scenario (Lane Pollner 2008). Research conducted by the Kenexa Research Institute, conducted in 2007 in six countries, including China reveals that à ¢Ã¢â€š ¬Ã…“policies such as career path programmes, goal development and monitoring, regular feedback sessions with managers, tracking progress have a demonstrable effect on employee execution and motivati onà ¢Ã¢â€š ¬? (Talent Management 2008). The report confirms that employees of organisations that focus on talent management are more engaged with their functions and more content with their jobs and organisations (Talent Management 2008) 2.3.2 Vroomà ¢Ã¢â€š ¬Ã¢â€ž ¢s VIE expectancy theory Vroomà ¢Ã¢â€š ¬Ã¢â€ž ¢s VIE (Valence, Instrumentality and Expectancy) theory of expectancy states that individuals tend to act in specific ways with the expectation that specific acts will lead to particular outcomes, and in line with the attractiveness of such outcomes (Citeman.com 2010). The theory, whilst appearing to be complex, is actually simple and necessitates the comprehension of three relationships, namely (a) the perceived probability by individuals that the making of specific efforts will lead to performance, (b) the extent to which individuals believe that performing at specific levels will result in achievement of specific outcomes and (c) the importance placed by individuals on possible rewards that can be obtained in job execution (Citeman.com 2010). The intensity of individual motivation to make efforts depends on the intensity with which individuals believe that they can achieve what they are attempting, whether they will be adequately rewarded by their organisations, and whether such rewards will meet their individual objectives (Pitt 2001). The application of the expectancy theory needs the careful consideration of four relevant steps (Pitt 2001). Organisations must firstly assess the perceived outcomes offered by specific jobs to employees (Pitt 2001). These may be (a) positive like income, benefits, stability and security, comradeship, congenial relationships trust, employee benefits, and opportunities to use skills, or (b) negative like weariness, monotony, annoyance, apprehension, inconsiderate management or danger of dismissal (Pitt 2001). Employee perceptions, regardless of actual reality become relevant in such scenarios (Pitt 2001). Organisations must try to assess the attraction to employees of such outcomes and whet her employees perceive outcomes with positivity or negativity (Pitt 2001). Individuals who find specific outcomes attractive and view them positively would like to achieve them (Pitt 2001). Managements also need to determine the type of behaviour required of employees to achieve positive outcomes and employees need to clearly and explicitly know what they must do to achieve them (Pitt 2001). It is finally also important to know how employees view their chances of satisfying what is asked of them (Pitt 2001). HR experts feel that appropriate applications of the expectancy theory through the linkage of efforts with performance and rewards can make employees developed a liking for their jobs and consequentially reduce employee attrition and employee turnover (Pitt 2001). Whilst the expectancy theory certainly has its logical strengths, talent management is a far broader area and retention of talent in skilled jobs in China poses specific challenges like (a) the need for skilled workers to work far away from their farms and homesteads, (b) difficult working and living conditions, (c) inadequate monetary benefits and (d) the emergence of various alternative areas of occupation and work with more attractive attributes with regard to location, remuneration and job content (Changing Minds.org 2010). 2.3.3 Impact on skilled workers The Kenexa (2007) report on organisations in countries including China states that organisations with progressive talent management cultures have workers with greater pride in their organisations who moreover recommend their organisations to others as good places to work for (Talent Management 2008). Employees with positive perceptions of the talent management practices of their organisations are likely to be confident of the prospects of their organisations (Talent Management 2008). The research revealed that employees who believed in the talent management policies of their firms tended to have more positive perceptions of their managements (Talent Management 2008). Such employees believed that their managers were capable of effectively managing workloads and that their senior managers felt that employees were critical to organisational success and growth (Talent Management 2008). Employees of such companies were likely to experience greater sense of job stability and security, be h appy with company training, feel that their performance is fairly assessed and harbour greater feelings of individual achievement (Talent Management 2008). MNCs in China are working towards retaining talent through the adoption of a range of initiatives (Roberts 2006). Many companies are locating their manufacturing units in interior regions in densely populated areas in order to tap larger workforce pools (Roberts 2006). à ¢Ã¢â€š ¬Ã…“General Motors, Honda, Motorola, and Intel, for instance, have all shifted some manufacturing or research to inland locations in recent years, both to tap lower costs and to open up new markets.à ¢Ã¢â€š ¬? (Roberts 2006) Salaries and rewards are being increased significantly across the line in order to retain talent and reduce job hopping (Roberts 2006). Many organisations are taking pains to ensure better living conditions, better cafeteria food and more attractive career paths for their employees (Roberts 2006). Foxconn, the maker of Apple iPhones in China is experiencing severe criticism for its treatment of its workforce (Rein 2010). It is evident that such organisations will have to make significa nt investments in HR policies and practices if they are to attract and retain skilled employees (Rein 2010). The Chinese government is also taking initiatives to improve the content of vocational and technical courses and build a stronger workforce base of skilled workers. It is however very evident that the Chinese economy and the various business organisations, both MNC and local, are facing significant challenges with regard to availability of skilled workers and competent managerial employees. Such trends are also expected to intensify in future. 2.4 Talent Retention tools Vaiman and Vance (2008) suggest that motivational force can be achieved by extrinsically through monetary incentives or intrinsically through non-monetary incentives. 2.4.1 Monetary rewards and non monetary rewards Monetary rewards include all types of compensation and benefits (CB) packages such as salary, performance related payment, deferred compensation plans, social and commercial benefits and etc (Tian 2007). Monetary rewards can satisfy employeesà ¢Ã¢â€š ¬Ã¢â€ž ¢ physiological needs and it is an effective tool to retaining talent (Vaiman and Vance 2008). Maslowà ¢Ã¢â€š ¬Ã¢â€ž ¢s Hierarchy of Needs, suggests the physiological needs have to be satisfied before dealing with the higher order needs. This may be the reason why money is still the best reward for the majority of people. In contrast, non-monetary reward is another essential tool for retaining employees. It can be use to satisfy employeesà ¢Ã¢â€š ¬Ã¢â€ž ¢ higher other of needs such as the needs for achievement, affiliation and power (McMlelland 1987). Non-monetary rewards include: training and career development, employer branding, ect. (Tian 2007). The researcher will consider these retention tools in the Chinese environment below.. 2.4.2 Extrinsic motivation According to a recent survey conducted by Waston Wyatt in China, the number one reason for Chinese talented and skilled workers to leave their current job is to find a better-paid job (Leininger 2004). Therefore, it is extremely important for MNCs to offer a competitive compensation and benefits package, in order to retain the Chinese skilled worker. The following components are normally included in the packages that MNCs offer to local employees, and therefore they are discussed here in detail. 2.4.2.1 Salary Salary is the fixed amount of money pay to an employee for work performed and is the largest component in a CB package. Due to the weak social security in China, Chinese employees tend to place more value on money than Western employee (Jones 1997). Therefore, MNCs need to consider a number of factors when they design the salary level for Chinese employees. For example, the cost of living and level of economic development vary significantly from city to city, so the salary for equivalent positions may vary as well. Leininger (2004) points out that first-tier cities such as Beijing and Shanghai enjoy the highest salary level, followed by second- and third-tier cities. Moreover, the salary level has been increasing at a dramatic rate in China. Since the rapid economic growth, the annual salary growth rate has been risen up to 8 percent in recent years, and the trend is expected to continue in future (Tian 2007). As a result, it is necessary for MNCs to have a general idea about local compensation level and salary growth rate before designing their own competitive packages. 2.4.2.2 Performance related payment Performance related payment (i.e. bonus) is the portion of a CB package that is related to performance. It is very popular and accepted by many MNCs in China. Many MNCs believe that performance related payment is an effective tool to given an incentive for compensation to meet certain goals such as completion of a specified sales target. In addition, it is able to encourage local employees to be more creative such as: propose a new idea to increase efficiency in the work place ,or improve the quality of the output, etc (Melvin 2001). To an extent, performance related payment helps to attract local employees and keep them help in the company. 2.4.2.3 Deferred compensation plans- Deferred compensation plans are also called à ¢Ã¢â€š ¬Ã‹Å"golden handcuffsà ¢Ã¢â€š ¬Ã¢â€ž ¢. They are popular with MNCs in China, and are offered in the form of a contract-related gratuity. For example, If the Chinese employee stays with the company for a contractually specified length of time ( i.e. 2 years), at the end of his/her contract he or she would be given an extra years salary as a reward. Deferred compensation plans are useful in retaining Chinese employees because it provides a financial incentive for talented Chinese employees to remain in the company. Recently, MNCs have begun offering a new version of à ¢Ã¢â€š ¬Ã‹Å"golden handcuffsà ¢Ã¢â€š ¬Ã¢â€ž ¢ to young talented Chinese employees who would like to get a degree at an overseas university. They offer a full scholarship for these employees and in exchange, the employees have to work for the company for specified length of time after completing their degree (Tian 2007). 2.4.2.4 Social and commercial benefits. Social benefits are mandatory in China they refer to contributions to government-run social insurance schemes, which cover pensions, medical care, unemployment, work injury, child birth and housing, etc. The benefits are borne by both employer and employee. 30 and 40 percent of payroll is paid to the State, of which around 50% is paid by employers. In recent years, Chinese employees are increasingly aware of the importance of social benefits, due to rising costs of housing and medicare in China. , Some MNCs are even willing to pay benefits of more than regulated ratios to retain their employees. By contrast, commercial benefits refer to the benefits offered by an employer to an employee on a commercial basis. Many MNCs in China provide numerous commercial benefits for their employees such as offering loans at below-market interest rates, monetary assistance with single child family or even payment of wedding. Both social and commercial benefits are reported as useful to inducement to employees to remain in the company (Tian 2007). 2.4.3 Intrinsic motivation However, monetary rewards are not everything employee wants. Once compensation reaches a certain level, employees are likely to look for higher order of needs such as career development opportunities ( Maslow 1954; McClelland1987). According to the DDI survey in China 2007, the result shows that the top two reasons for Chinese employee turnover were lack of growth and development opportunities with the current company with 53% of the respondents agreed and better career opportunities elsewhere with 42% of the respondents agreed. The result reflects that Chinese employees have high expectations for rapid advancement (Howard, Liu, Wellins and Williams 2007). Therefore, it is necessary to consider these non-monetary factors that can motivate and retain employees. As Jones (1997) points out that it is very important to understand Chinese employeesà ¢Ã¢â€š ¬Ã¢â€ž ¢ expectations. For most Chinese employees, especially those top performers joining a MNC not only for a high CB package but also for the opportunity to receive advanced training and learn western business methods. Those top performers are clearly aware of the skill gap between them and their Western counterparts, so they are eager to improve their own knowledge and skills. Additionally, providing training and career opportunities to employees can improve employeesà ¢Ã¢â€š ¬Ã¢â€ž ¢ commitment to the company. As Leininger (2004) stated that the heart of retention is long term employee commitment. He divided employees into two different groups. They are à ¢Ã¢â€š ¬Ã…“satisfiedà ¢Ã¢â€š ¬? and à ¢Ã¢â€š ¬Ã…“committedà ¢Ã¢â€š ¬? employees. The satisfiedà ¢Ã¢â€š ¬? employees can easily be retained by satisfying their monetary incentives while the à ¢Ã¢â€š ¬Ã…“committedà ¢Ã¢â€š ¬ ? employees tend to stay longer with companies even without monetary incentive. A global research conducted by Waston Wyatt shows that committed employees are more productive and efficient than those whose employees showed low commitment (Leininger 2004). Therefore, it is important that MNCs recognize the importance of training and development opportunities to their Chinese employees and demonstrate a commitment to training, development and career path development for them. Besides, organizational factors can also influence talent retention such as corporate culture, communication, leadership behavior are able to satisfy employeesà ¢Ã¢â€š ¬Ã¢â€ž ¢ needs for affiliation (Chew 2004). In the Chinese case, the leadership behavior is one of the most important motivation and retention drivers for Chinese employees. For many MNCs, the meaning of a à ¢Ã¢â€š ¬Ã…“good leaderà ¢Ã¢â€š ¬? for Chinese people can be far more complicated than what they have seen in their home countries. Leadership in China has specific connotations. According to the research conducted by Craig Pepples, to achieve success in Chinese environment, foreign leader need a strong leadership style to build a team. Chinese employees respect those leaders who have a strong leadership style. They expect leaders always able to give them instruction to follow. Moreover, Pepples also insists that to be an effective leader, foreigners need to create a culture of teamwork, showing their personal commitment to the employees and care for each individual (Jones 1997). Therefore, Chinese employees are most likely to want to stay and work for an organization if they have a good manager or boss, who recognized individual contribution, and had great company leaderships (Howard, Liu, Wellins and Williams 2007). These studies above are just a few examples of tools regarding talent retention in the Chinese context. When these retention tools are applied to Chinese employees, MNCs have to rank all the tools in order of importance, and then focus on several areas for motivation and retention talent (Vaiman and Vance, 2008). 2.5 Talent development in the Chinese cont Fear: Types, Causes and Effects Fear: Types, Causes and Effects Bradley Varney McLea How Fear Allows Us to Better Know Ourselves It is difficult to know how one would respond in a moment of fear or terror. People tend to give themselves the benefit of the doubt in situations like these. Fear is one of the most powerful emotions for all living creatures and the most extensively studied emotion (LeDoux, 2014). Autonomic responses are involuntary actions that take place inside our nervous system. Fear is an autonomic response that can only be triggered by outside stimuli. You cannot make yourself feel fear, but it is something that we more passively experience. In order to better understand ourselves and our basic nature, fear should be studied being one of our most primitive emotions. By looking at the origins of fear, the main categories of fear, the characteristics of fear, and the natural responses to fear I believe we can better understand the concept of fear what it means for us. Do We Know the Origin of Fear? To more fully understand fear it is important to understand its roots. Since the beginning of time, fear has been essential in the survival of the human race and the survival of many different species. Ãâ€"hman, Carlsson, Lundqvist, and Ingvar (2007) found the following, Fear denotes an emotion that has been primarily shaped in evolutionary arms races between predators and prey. Improved predator hunting skills have prompted more efficient defense manoeuvres by preys, which have put a pressure on further skill development in the predator, and so on. Thus, the function of fear is to motivate organisms to cope with threats that have jeopardized survival throughout evolution. This quotation explains just how the â€Å"game† is evolving; the prey is getting smarter and so the predator must do the same or starve. If the rabbits learn that a fox lurks around the woods at night, then the rabbits might start to only go into the woods during the day. The rabbits will start to learn the habits of the fox that way they can maneuver their way around and survive. This is how the game is evolving; the fox must now learn that the rabbits are getting smarter and so it must make changes if it wants to eat. The rabbits fear getting eaten and dying while the foxes fear starvation and dying, fear drives their motivation. Another example is of deer, when a deer is spotted in the woods, will it lift its head up and stare at strangers because it is friendly or because it is afraid? If a human approaches the deer too closely, it will turn and run. Will a fawn do the same, maybe not to the exact extent of a deer but yes. Some claim that many creatures, including humans, are born with an innate sense of fear. Is fear learned or is it part of our essence since birth? A toddler is not born afraid of fire; he will approach the flames without caution. Once the toddler touches the flame and is burned, he will cry and feel pain. Those flames will forever be associated with the pain he felt in that instant. According to McGuire et al. (2013), learning about and remembering fearful experiences are critical to survival. No one enjoys feeling pain and so they will avoid it, even a toddler knows to avoid and fear pain. It is not safe to say that fear is solely felt due to experience. Why will the baby cry in the arms of a stranger, but not in the arms of his mother? Does the baby feel afraid? I believe that the baby does feel fear in these instances, while the level of fear is not known. According to Trost, France, Vervoort, Lange, and Goubert (2014), people can be conditioned by observation alone. Due to priming, a sample group of people believed that they c ould get hurt doing day to day activities. This sample group highly associated fear with pain. These people were so afraid to experience the pain that they were seeing during the priming that they refused to participate in many normal day activities. Living creatures can also be conditioned to fear certain things. An example of this could be a dog that fears the sight of a spatula because he knows that spatula means getting spanked. When I was young my parents would make loud sounds with a belt in order to spark fear in myself and my siblings. We began to fear the belt, especially if the belt ever accompanied us getting spanked. These forms of conditioning are used to put fear into the heart of someone or something else. There is no one that is completely immune to fear, it is something that is inescapable. What Are the Two Main Categories of Fear? Fear is divided into two major categories; these two categories include irrational and rational fear. Irrational fears are not â€Å"ridiculous fears†, but they are fears that one has that do not pose an immediate danger to one’s life. Phobias are an example of irrational fears. Often people think that irrational fears would consist of fears that are extremely uncommon or strange, but in reality if one were asked what fears he has then almost all named would be considered irrational. According to Quandt et al. (2013), women with diabetes are terrified of leg amputation. Since they are so afraid of leg amputation, many of them will not walk around their house without their shoes on in case there is a nail poking upward. The likelihood of stepping on a nail inside your own house is slim to none, which means that the idea of wearing shoes to protect their feet is due to an irrational fear. Arachnophobia and claustrophobia are fairly common phobias, or irrational fears. Most people will say that they have some sort of phobia/something they are afraid of. Recently, a woman c laimed to be afraid of sharks. Yes, there are many sharks in the ocean, but the likelihood of a shark attack is very slim. In Hawaii, more people die from falling coconuts than from shark attacks. Irrational fears can be potentially dangerous, but are usually misjudged or magnified. A shark attack is very dangerous, but a lot of times the likelihood of occurrence is amped up significantly inside our minds. While watching horror films, people experience irrational fear since they are not actually in any form of danger. Rational fears are opposite of irrational fears and are composed of immediate threats. If a gun is brought to school one day by a fellow classmate, students will experience rational fear. If the crime rate is high, then a fear of crime can be a rational fear (Chadee Ying, 2013). Threats that can cause injury, death, and ruin reputation are rational fears and have a much higher probability of occurring than do irrational fears. If someone is afraid of heights and decides to go skydiving, that is also an irrational fear. While it may be dangerous to jump out of a plane, you are still strapped in and safely falling down with a skilled instructor. Do these fear categories ever overlap? Definitely, they do. This overlapping happens when the probability of danger increases. If Bob is afraid of heights, but decides to skydive, his irrational fear can become rational once one or two of his parachutes decide to not function correctly. The Characteristics of Fear Allow Us to Detect What does fear look like? Is it described by screaming or by â€Å"goose bumps†? Characteristics of fear will vary from person to person and also with each different situation. Some physical characteristics of fear involve a rapid heart rate, quick breathing, elevated adrenaline levels, perspiration, and the tensing of muscles. Depending on the severity of the degree of fear, one can also enter into a state of temporary paralysis which will prohibit the person from being able to scream, make sound, and sometimes even move. If a bunch of college kids decide to go into a cemetery late at night, the ones who are afraid are all experiencing similar or the same physical symptoms of fear. The physical characteristics of fear are generally the same for everyone, but the emotional characteristics will vary from individual to individual. Most people have negative feelings towards fear, but others enjoy it. â€Å"Adrenaline junkies† will search for opportunities to feel fear beca use they like the way it allows them to feel. To people like them, fear is desirable and that is its characteristic for them. Fear is not an emotion that can easily be masked or denied due to the obviousness of these characteristics. When people experience negative feelings due to fear, you will see it on their faces. The same works vice versa when positive feelings are felt. Without someone saying that they are afraid, it is stillvery possible to diagnose their symptoms without any words being exchanged. How We Respond to Fear Grants Understanding Fear is the strongest of all the autonomic emotional responses. Since fear is completely an autonomic response; it cannot be consciously triggered. It is so fascinating that our consciousness cannot decide nor tell our unconscious how to think or behave. Of course, there are many factors that help define the human being but how often does one get to tap into the unconscious and learn about our basic nature? To truly understand who we are, we must tap into the conscious and the unconscious parts of our own minds. The two categories of fear responses There are two different categories of fear responses: biochemical responses and emotional responses. Biochemical responses are quite possibly an evolutionary development, which allows us learn more about our nature. The major biochemical response is the fight-or-flight response. The fight-or-flight response is when the body will prepare itself to either stand its ground or run away. This response has been crucial to the survival of many species. When a threat is perceived, hormones are released throughout the body granting humans enhanced ability for survival. With these hormones circulating throughout our bodies, we become quicker, have increased strength, and can see more clearly through dilated pupils. Can we know if we would fight or if we would flee? The only way to truly know is to experience it. In non-human primates, the fight-or-flight response has been observed time and time again. Some researchers have concluded that the term should be reversed to flight-or-fight. The reas oning behind this reversal is that when a non-human primate first perceives a threat, then it enters into a â€Å"frozen† state followed by an attempt to run away. If the primate cannot flee and it feels it must fight, then it will fight (Bracha, Ralston, Matsukawa, Williams, Bracha, 2004). The second category of fear responses is the emotional response. This is generally a negative or a positive feeling. When negative feelings are associated with fear, then the individual will try to avoid the stimuli that are creating fear at all costs; this is how phobias are born. When positive feelings are received as a response to fear, â€Å"adrenaline junkies† are born, and these people will actively seek activities that invoke fear. These people are not without fear, but they embrace fear itself and turn it into a natural high. By attempting to understand the concept of fear we understand parts of our self. We are searching through the enigmas of the unconsciousness so that when we feel afraid, we can realize and better understand who we are. In the future, more research should be done on the emotional response of fear. Researchers should study the â€Å"adrenaline junkies† to find out what chemicals in their brains are different. How does one person react so differently to fear? Although, one will not have conscious control over oneself during moments of fear, the beauty lies within the idea that this is human survival instinct at its best. References Bracha, H. S., Ralston, T. C., Matsukawa, J. M., Williams, A. E., Bracha, A. S. (2004). Does â€Å"Fight or flight† need updating? Psychosomatics, 45(5), 448-449. doi:http://dx.doi.org.erl.lib.byu.edu/10.1176/appi.psy.45.5.448 Chadee, D., Ying, N. K. N. (2013). Predictors of fear of crime: General fear versus perceived risk. Journal of Applied Social Psychology, 43(9), 1896-1904. LeDoux, J. E. (2014). Coming to terms with fear. PNAS Proceedings of the National Academy of Sciences of the United States of America, 111(8), 2871-2878. doi:10.1073/pnas.1400335111 McGuire, J. L., Bergstrom, H. C., Parker, C. C., Le, T., Morgan, M., Tang, H., . . . Johnson, L. R. (2013). Traits of fear resistance and susceptibility in an advanced intercross line. European Journal of Neuroscience, 38(9), 3314-3324. doi:10.1111/ejn.12337 Ãâ€"hman, A., Carlsson, K., Lundqvist, D., Ingvar, M. (2007). On the unconscious subcortical origin of human fear. Physiology Behavior, 92(1-2), 180-185. doi:10.1016/j.physbeh.2007.05.057 Quandt, S. A., Reynolds, T., Chapman, C., Bell, R. A., Grzywacz, J. G., Ip, E. H., . . . Arcury, T. A. (2013). Older adults’ fears about diabetes: Using common sense models of disease to understand fear origins and implications for self-management. Journal of Applied Gerontology, 32(7), 783-803. doi:10.1177/0733464811435506 Trost, Z., France, C. R., Vervoort, T., Lange, J. M., Goubert, L. (2014). Learning about pain through observation: The role of pain-related fear. Journal of Behavioral Medicine, 37(2), 257-265. doi:10.1007/s10865-012-9483-4

Heap Leaching :: Gold Mining Miners Minerals Essays

Heap Leaching Heap leaching is a method used most commonly for the mining of gold. Along with heap leaching comes many environmental concerns and considerations. In order to decrease these environmental concerns, there must be regulations placed on the mining of gold. Regulations can stem from control acts, enforced by the Department of Energy and other agencies similar to this, to simple regulations dealing with the equipment companies must use in their daily excavations. The heap leaching method used to extract gold uses cyanide as part of the process. This can be â€Å"toxic to fish and wildlife† and is therefore an environmental concern with the mining of gold (Bartlett 79). Some other concerns taken into consideration when dealing with gold mining and heap leaching are â€Å"preventing bird poisoning on wet heaps and solution storage ponds [†¦as well as amounts of] wind blown dust and other air contaminants [which] can be serious† problems spreading throughout the environment (Bartlett 79). Contamination of surface and ground waters is a major concern as a side effect of heap leaching (Bartlett 79). There has been action taken in order to reduce the possibility of any of these environmental considerations taking place during and after the process of heap leaching. It is recommended that in order to regulate heap leaching of gold, companies use methods of containment along with close monitoring in order to recognize problems before they occur (Bartlett 79-80). As I stated in my second essay, the ore and solution removed from the heap leaching process is discarded onto leach pads. These pads are the â€Å"most important element[s] of the solution containment system† (Bartlett 80). The leach pads help prevent toxic solutions from running off into the surrounding areas and therefore they decrease the risk of harming any living organisms living in the area the mining is occurring in. â€Å"Proper foundation preparation is necessary to prevent movement and tearing of the liner† of the leach pad (Bartlett 80). If this were to happen then the leach pad would not be a sufficient means of protection for the environment. Another way to protect the environment is by having a solution collection system.

The Civil Rights Movement Essay -- Black struggle for civil rights in A

The first ten amendments to the United States Constitution form what is known as the Bill of Rights. In essence it is a summary of the basic rights held by all U.S. citizens. However, Negro citizens during the Civil Rights Movement of the 1950-70’s felt this document and its mandate that guaranteed the civil rights and civil liberties of all people; were interpreted differently for people of color. The freedoms outlined in the Constitution were not enforced the same by the government of the United States for the black race as it did for the white race. â€Å"You all treat us so bad,† just like we are animals.† Those are the words voiced by Mrs. Rosa Parks, a Negro seamstress. Whose refusal to move to the back of the bus and give her seat to a white man, touched off the enormously successful bus boycott of Montgomery, Alabama in the winter of 1956. But on a greater magnitude it fueled the Civil Rights movement of the Negro American. This incident almost single-handedly galvanized Negroes to insist on equal rights according to the laws of the United States government and to end segregation of all public places. To build on the Montgomery victory, black leaders and ministers convened in Atlanta, GA in 1957 to form the Southern Christian Leadership Conference. The SCLC main function would be to coordinate the efforts of the many church-based civil rights groups. The mission of the SCLC was to gain all civil liberties by law and not by violence. With Dr. Martin Luther King, Jr. as its president, the SCLC would become the country’s most powerful civil rights organization. With work to do in all areas to bring about social change for the Negro—notably the segregated schools of the South the SCLC made this their first shot across the bough--figuratively speaking. In 1954 the Supreme Court issued its decision on the case Brown v. Board of Education. The Court ruled that separate-but-equal segregated schools violated the Fourteenth Amendment and that school desegregation must take place â€Å"with all deliberate speed.†   Ã‚  Ã‚  Ã‚  Ã‚  This order by the highest court of the United States were not embraced by the White Race or by the burceacy of most state governments. The state bureaucracies swung into full force to intimidate anyone associated with the Civil Rights movement. Black protesters as well as sympathizers to the Civil Rights movement were jailed ... ...tant musical development of the 20th century—has its roots in Black American culture. Thanks to the CIVIL RIGHTS movement, more blacks now get a good education and good jobs than formerly, although there is still a long way to go. Some arguably believe the Civil Rights movement is over...but is it?   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   In many areas of our country, there is still neighborhood segregation. Realtors and homeowners that conspire to sell only to white in order to keep black and other races out. The right to marry whom you want outside your race is still today a matter of discussion by parties other then the engaged couple. Although Blacks have made strives in the job industries. Yet even in Year 2004 we are still achieving first (Black appointee) in some professions. In the meantime, black leaders and other black citizens of influence, are urging the black race to continue to develop and maintain a sense of pride in their culture. The phrase and song title made famous by the soul singer, Mr. James Brown, â€Å"Black and I’m Proud† and the sister phrase â€Å"Black is beautiful† is a reminder to blacks (and whites) that they have much to be proud of.

Hmong Essay -- essays research papers

  Ã‚  Ã‚  Ã‚  Ã‚  The traditional Hmong live a horticultural society they depend on domesticated plants, they are well-adapted on soils of the tropical rain forests and poor soil places which are unsuitable for intense agriculture. Prehistoric Hmong are thought to have moved from Eurasia and made a few stops at Siberia. As their custom they settled in the highlands (mountains) from Vietnam and Laos and later in Thailand. They inherited the name â€Å"Miao†, from living in the mountains. Today Five million Hmong reside in China, more than any other country. The Hmong people have straight black hair and have a short, sturdy stature. In the southern margins of the Sahara Desert, going southward toward East Africa are tall, rather thin dark skin peoples called the Nuer. To the Nuer horticulture is degrading toil. The Nuer live the pastoral mode of production with their primary dependancy on animal husbandry, cattle. Although the cattle is not raised for the meat, unless they become barren, or injured they eat them under special conditions. Usually adapt in dry grassland with short growing seasons. Although they do eat/grow crop it is very little. Milk is one of the main foods of the Nuer. Both cultures sacrifice animals to heal souls. The Hmong believe in the dab as the evil spirit, the Nuer believe in the evil eye. The evil eye is a person with supernatural power who causes damage to people who look at them. For the Hmong the most common cause of illness is soul lo...

Saddam Hussein

Very few political leaders of the modern world can stand up to a comparison with Nazi Germany’s Hitler. Saddam Hussein was one who certainly didn’t have to try too hard. Considering the painful beginnings he has had, Saddam Hussein had gone a long way in proving himself as a leader the world will not forget soon. Hussein had his strengths, convictions and the will to win, all of which worked in his selfish favor. However, contained in these very traits were his veiled weaknesses which ultimately led to his unceremonious ending. One may need a comprehensive overview of Saddam Hussein’s personality traits to render an understanding of what thrived underneath all his brutalities. The dark contours of Saddam’s temperament were etched before he was born on April 28, 1937, to his recently widowed mother, who was too distraught to be keen on having him. Spending his early years under the charge on his maternal uncle, Khyrallah, and later his mother and an abusive step-father, Saddam clearly did not have a conventional childhood, a fact that had a far reaching impact on his mental constitution. He grew up with a distorted self-esteem, which crippled his capacity for empathy with others and produced what has been described psychologically as ‘the wounded self’, a condition which, in Saddam’s case, let to strive for compensatory grandiosity, a steely resolve to never subject himself under a superior force (Post 2003, 2). Saddam’s was often referred to as the ‘mad man of the Middle-East’ equating him to a lunatic battling with psychotic disorders. However, according to Jerrold Post, there is no evidence that he had any such ailments. Rather, Saddam was a rational calculator who often miscalculates (Post 2003, 6). He was not an impulsive actor but rather was judicious and patient. All his inhuman actions then become all the more horrifying for they are results of delicate deliberation and planning. Saddam had a natural inclination for traumatizing his surroundings, from which he drew thrill and satisfaction. Saddam’s obsession with violence was the most terrifying side to his multi-faceted personality (Thomas 02). This obsession with violence certainly did not command accolades from his own people, many of whom have suffered untold miseries under his tyranny. Saddam’s personality traits adhere to the makings of what is called malignant narcissism (Post 2003, 6). He strived to exalt his personality by making Iraq an extension of his being. Also, to give him the religious sanctity that was essential to win over Islamic extremists, Saddam ordered Iraq’s genealogists to create a family line that links him to Fatima, the daughter of the prophet Mohammed (Thomas 02). He had elevated himself to the level that level of holiness where many religious minded people wouldn’t dare question his integrity and actions. Saddam had no constraints of conscience whatsoever. No question of morality ever crept into his mind as he went executing his ‘enemies’. Saddam also had an inherent unconstrained aggression, which he uses as an instrument to attain his goals. Force and violence were his only trusted weapons, and he never wavered to employ them. Saddam Hussein was also seen to have a strong paranoid orientation (Post 2003, 7). He always saw himself as surrounded by enemies for no good reason. Completely oblivious of his role in creating his own enemies, Saddam righteously eliminated his targets. This paranoia illustrates itself even in his conduct of foreign affairs, which let him to believe that Israel, The US and Iran have been in league with the purpose of eliminating him. Adding to these traits, Saddam was also burdened with certain vanities, which invariably would drive him to destructive behaviour. Underneath the vicious and terrifying persona, there was a side of him that was vulnerable and extremely egoistic. It is this political personality assemblage such as insatiable ambition for unlimited power, lack of conscience, unconstrained aggression, a paranoid outlook and obsession for violence which made Saddam the man the world loathed. It is also these very traits that sowed the seeds of his failure. Saddam Hussein Very few political leaders of the modern world can stand up to a comparison with Nazi Germany’s Hitler. Saddam Hussein was one who certainly didn’t have to try too hard. Considering the painful beginnings he has had, Saddam Hussein had gone a long way in proving himself as a leader the world will not forget soon. Hussein had his strengths, convictions and the will to win, all of which worked in his selfish favor. However, contained in these very traits were his veiled weaknesses which ultimately led to his unceremonious ending. One may need a comprehensive overview of Saddam Hussein’s personality traits to render an understanding of what thrived underneath all his brutalities. The dark contours of Saddam’s temperament were etched before he was born on April 28, 1937, to his recently widowed mother, who was too distraught to be keen on having him. Spending his early years under the charge on his maternal uncle, Khyrallah, and later his mother and an abusive step-father, Saddam clearly did not have a conventional childhood, a fact that had a far reaching impact on his mental constitution. He grew up with a distorted self-esteem, which crippled his capacity for empathy with others and produced what has been described psychologically as ‘the wounded self’, a condition which, in Saddam’s case, let to strive for compensatory grandiosity, a steely resolve to never subject himself under a superior force (Post 2003, 2). Saddam’s was often referred to as the ‘mad man of the Middle-East’ equating him to a lunatic battling with psychotic disorders. However, according to Jerrold Post, there is no evidence that he had any such ailments. Rather, Saddam was a rational calculator who often miscalculates (Post 2003, 6). He was not an impulsive actor but rather was judicious and patient. All his inhuman actions then become all the more horrifying for they are results of delicate deliberation and planning. Saddam had a natural inclination for traumatizing his surroundings, from which he drew thrill and satisfaction. Saddam’s obsession with violence was the most terrifying side to his multi-faceted personality (Thomas 02). This obsession with violence certainly did not command accolades from his own people, many of whom have suffered untold miseries under his tyranny. Saddam’s personality traits adhere to the makings of what is called malignant narcissism (Post 2003, 6). He strived to exalt his personality by making Iraq an extension of his being. Also, to give him the religious sanctity that was essential to win over Islamic extremists, Saddam ordered Iraq’s genealogists to create a family line that links him to Fatima, the daughter of the prophet Mohammed (Thomas 02). He had elevated himself to the level that level of holiness where many religious minded people wouldn’t dare question his integrity and actions. Saddam had no constraints of conscience whatsoever. No question of morality ever crept into his mind as he went executing his ‘enemies’. Saddam also had an inherent unconstrained aggression, which he uses as an instrument to attain his goals. Force and violence were his only trusted weapons, and he never wavered to employ them. Saddam Hussein was also seen to have a strong paranoid orientation (Post 2003, 7). He always saw himself as surrounded by enemies for no good reason. Completely oblivious of his role in creating his own enemies, Saddam righteously eliminated his targets. This paranoia illustrates itself even in his conduct of foreign affairs, which let him to believe that Israel, The US and Iran have been in league with the purpose of eliminating him. Adding to these traits, Saddam was also burdened with certain vanities, which invariably would drive him to destructive behaviour. Underneath the vicious and terrifying persona, there was a side of him that was vulnerable and extremely egoistic. It is this political personality assemblage such as insatiable ambition for unlimited power, lack of conscience, unconstrained aggression, a paranoid outlook and obsession for violence which made Saddam the man the world loathed. It is also these very traits that sowed the seeds of his failure.