A Brief Analysis of Subprime Crisis

A Brief Analysis of Subprime Crisis Introduction The US subprime mortgage crisis was one of the first indicators of the late-2000s financial crisis, characterized by a rise in subprime mortgage holes and foreclosures, and the resulting decline of securities backing mortgages. Approximately 80% of U. S. mortgages issued to subprime borrowers were adjustable-rate mortgages. After U. S. house sales prices peaked in mid-2006 and began their steep decline forthwith, refinancing became more difficult.As adjustable-rate mortgages began to reset at higher interest rates, mortgage crisis soared. Securities backed with mortgages, including subprime mortgages, widely held by financial firms, lost most of their value. Global investors also drastically reduced purchases of mortgage-backed debt and other securities as part of a decline in the capacity and willingness of the private financial system to support lending. Concerns about the safety of U. S. credit and financial markets led to tightenin g credit around the world and slowing economic growth in the U.S. and Europe. 1. Background—mortgage market The immediate reason or trigger of the crisis was the bursting of the United States housing bubble which peaked in approximately 2005–2006. High default rates on â€Å"subprime† and adjustable-rate mortgages , began to increase quickly thereafter. An increase in loan incentives, such as simple initial conditions and long-term trend of rising housing prices encouraged borrowers to increase the commitment that they will be able to quickly re-financing more favorable conditions for mortgage difficulties.Additionally, the economic incentives provided to the originators of subprime mortgages, along with outright fraud, increased the number of subprime mortgages provided to consumers who would have otherwise qualified for conforming loans. However, once interest rates began to rise and housing prices started to drop moderately in 2006–2007 in many parts o f the U. S. , refinancing became more difficult. Defaults and foreclosure activity increased dramatically as easy initial terms expired, home prices failed to rise as expected, and adjustable-rate mortgage interest rates reset higher.Falling prices also resulted in 23% of U. S. homes worth less than the mortgage loan by September 2010, providing a financial incentive for borrowers to enter foreclosure. The ongoing foreclosure epidemic, which part of subprime loans, that began in late 2006 in the U. S. continues to be a key factor in the global economic crisis, because it drains wealth from consumers and erodes the financial strength of banking institutions. In the years leading up to the crisis, significant amounts of foreign money flowed into the U. S. from fast-growing economies in Asia and oil-producing countries.This inflow of funds combined with low U. S. interest rates from 2002-2004 contributed to easy credit conditions, which fueled both housing and credit bubbles. Loans of various types (e. g. , mortgage, credit card, and auto) were easy to obtain and consumers assumed an unprecedented debt load. As parts of the housing and credit booms, the amount of financial agreements called mortgage-backed securities, which derive their value from mortgage payments and housing prices, greatly increased. This financial innovation so that institutions and investors around the world to invest in the U.S. housing market. With falling house prices, is to use the world’s leading investment mortgage-backed securities severe financial institutions to report significant losses. Defaults and losses on other loan types also increased significantly as the crisis expanded from the housing market to other parts of the economy. Total losses are estimated in the trillions of U. S. dollars globally. While the housing and credit bubbles were growing, a series of factors caused the financial system to become increasingly fragile.Policymakers did not recognize the increasingl y important role played by financial institutions such as investment banks. Some experts believe these institutions had become as important as commercial banks in providing credit to the U. S. economy, but they were not subject to the same regulations. These institutions and some regulated banks was also a significant debt burden, while providing the loans, there are not enough financial cushion absorb large amounts of loan default or mortgage-backed securities losses. These losses impacted the ability of financial institutions to lend, slowing economic activity.Concerns regarding the stability of key financial institutions drove central banks to take action to provide funds to encourage lending and to restore faith in the commercial paper markets, which are integral to funding business operations. Governments also bailed out key financial institutions, assuming significant additional financial commitments. The risks to the broader economy created by the housing market downturn and subsequent financial market crisis were primary factors in several decisions by central banks around the world to cut interest rates and governments to implement economic stimulus packages.Effects on global stock markets due to the crisis have been dramatic. Between 1 January and 11 October 2008, owners of stocks in U. S. corporations had suffered about $8 trillion in losses, as their holdings declined in value from $20 trillion to $12 trillion. Losses in other countries have averaged about 40%. The value of the stock market and housing losses further down the local consumer spending, an important economic engine downward pressure. The larger developed countries and emerging nations in November 2008 and March 2009 met with state leaders to develop strategies to resolve the crisis.A variety of solutions have been proposed by government officials, central bankers, economists, and business executives. 2. Causes The crisis can be attributed to a number of factors pervasive in both housi ng and credit markets, factors which emerged over a number of years. 2. 1 Boom and bust in the housing market The housing bubble in the United States grew alongside the stock of the late1990s. High stock wealth induced families to spend more of their new disposable income and save much less. This â€Å"consumption boom† was largely focused on housing.The increase in damand for housing had multiple effects. First, the value of houing increased, which in turn increased demand of housing and jump-started the bubble. Second, the supply of housing decreased and more housing had to be built to meet the rising demand. The rising housing prices created an expectation that housing values would continue to rise, leading home buyers to pay more for housing than the housing was actually worth. This self-fulfilling cycle continued until the median price of housing outgrew median incomes, peaking in about 2005.When the growth became unsustainable in 2006, the housing bubble â€Å"burstâ⠂¬ . Before the rapid rise, followed by a sharp fall in housing prices, which will greatly exceed the mortgage debt, the translation of the value of the property. 2. 2 High-risk mortgage loans In the years before the crisis, the behavior of lenders changed dramatically. Lenders offered more and more loans to higher-risk borrowers, including undocumented immigrants. Subprime mortgages amounted to $35 billion in 1994, 9% in 1996, $160 billion in 1999, and $600 billion in 2006.A study by the Federal Reserve found that the average difference between subprime and prime mortgage interest rates declined significantly between 2001 and 2007. Decline in risk premiums and credit standards are common to the combination of the credit boom and bust cycles. In addition to considering higher-risk borrowers, lenders have offered increasingly risky loan options and borrowing incentives. In 2005, the median down payment for first-time home buyers was 2%, with 43% of those buyers making no down paymen t whatsoever. By comparison, China has down payment requirements that exceed 20%, with higher amounts for non-primary residences.The mortgage qualification guidelines began to change. At first, the stated income, verified assets loans came out. Proof of income was no longer needed. Borrowers just needed to â€Å"state† it and show that they had money in the bank. Then, the no income, verified assets loans came out. The lender no longer required proof of employment. Borrowers just needed to show proof of money in their bank accounts. The qualification guidelines kept getting looser in order to produce more mortgages and more securities. This led to the creation of NINA. NINA is an abbreviation of No Income No Assets.Basically, NINA loans are official loan products and let you borrow money without having to prove or even state any owned assets. All that was required for a mortgage was a credit score. 2. 3 Mortgage fraud In 2004, the Federal Bureau of Investigation warned of an â€Å"epidemic† in mortgage fraud, an important credit risk of nonprime mortgage lending, they said, could lead to â€Å"a problem that could have as much impact as the S&L crisis†. The Financial Crisis Inquiry Commission reported in January 2011, that: â€Å"†¦ mortgage fraud†¦ flourished in an environment of collapsing lending standards and lax regulation.The number of suspicious activity reports—reports of possible financial crimes filed by depository banks and their affiliates—related to mortgage fraud grew 20-fold between 1996 and 2005 and then more than doubled again between 2005 and 2009. One study places the losses resulting from fraud on mortgage loans made between 2005 and 2007 at $112 billion. Lenders made loans that they knew borrowers could not afford and that could cause massive losses to investors in mortgage securities. † New York State prosecutors are examining whether eight banks hoodwinked credit ratings agencies, to in flate the grades of subprime-linked investments.The Securities and Exchange Commission, the Justice Department, the United States attorney’s office and more are examining how banks created, rated, sold and traded mortgage securities that turned out to be some of the worst investments ever devised. In 2010, virtually all of the investigations, criminal as well as civil, are in their early stages. 2. 4 Credit default swaps Credit default swaps are financial instruments used as a hedge and protection for debtholders, in particular MBS investors, from the risk of default.As the net worth of banks and other financial institutions deteriorated because of losses related to subprime mortgages, the likelihood increased that those providing the protection would have to pay their counterparties. This caused the system uncertainty, investors did not know which company would be required to pay to cover the mortgage defaults. When investment bank Lehman Brothers went bankrupt in September 2008, there was much uncertainty as to which financial firms would be required to honor the Credit default swaps contracts on its $600 billion of bonds outstanding.Merrill Lynch’s large losses in 2008 were attributed in part to the drop in value of its unhedged portfolio of collateralized debt obligations after AIG ceased offering Credit default swaps on Merrill’s collateralized debt obligations. The loss of confidence of trading partners in Merrill Lynch’s solvency and its ability to refinance its short-term debt led to its acquisition by the Bank of America. 2. 5 Boom and collapse of the shadow banking system The securitization markets supported by the shadow banking system started to close down in the spring of 2007 and nearly shut-down in the fall of 2008.More than a third of the private credit markets can not be uesd as a source of funds. According to the Brookings Institution, the traditional banking system does not have the capital to close this gap as of June 2009: â€Å"It would take a number of years of strong profits to generate sufficient capital to support that additional lending volume. † The authors also indicate that some forms of securitization are â€Å"likely to vanish forever, having been an artifact of excessively loose credit conditions. † 3. Impacts 3. 1 Impact on the USThe credit market is likely to respond with tighter lending standards, fewer warehouse subprime mortgage lines, fewer subprime lenders, and greater self-regulation and reformation, most of which will be driven by the securitization market to the extent that it still exists. There may be an urge to proactively modify loans that would likely result in default. The increased pressure from the government and consumer groups, combined with new subprime lending standards, will decrease lenders’ willingness to lend to nonprime borrowers and investors’ willingness to participate in subprime loan securitization.The result has been a nd will continue to be a â€Å"credit crunch† for subprime borrowers. The result will decrease availability of subprime lending, which in turn, will decrease homeownership among low-income or minority borrowers. When the housing bubble began to deflate in 2006, borrowers saw a sharp reduction in the value of their homes, and found themselves in a position of â€Å"negative equity†, or a mortgage debt that far exceeded the value of the mortgaged home. Because homeownership is the single most important source of wealth, this meant many Americans experienced a dramatic loss in personal wealth.The decline in home prices has cost American homeowners more than 4 trillion dollars in wealth, and as previously noted, has cost African Americans alone between $71 and $122 billion. The decrease in home values not only caused homeowners, but also communities, to lose wealth. As a result of foreclosure, surrounding house values have declined. Neighbors matter when it comes to puttin g a value on homes. Appraisers use comparable sales data to calculate the value of a home, which lenders require for selling and refinancing.Comparable sales in the community to reduce problems of all foreclosure houses, where in a position to sell the owner is not a pleasant option value. In addition, the borrower becomes unable to refinance at lower interest rates, this will cause even more foreclosures. 3. 2 Impact on the Chinese economy The US credit crunch has played out in the Chinese housing market. The house price movements in China, the US and the UK have moved synchronically, with the Chinese market lagging a bit behind the two developed countries.The market condition of China at the start of 2008 was similar to the US market during the first half of 2007, when the house prices began to drop. House prices in China increased sharply and even doubled during 2006-2008 in some fast developed cities. The Chinese National Development and Reform Commission showed that the House P rice Index of 70 Large- and Medium-sized Cities in China rose 6. 5% in 2008, 1. 1% lower than the previous year. Meanwhile, the interest rate adjustment is widely used as a monetary instrument by most central banks to manage their national economies.From January 2001 to 2003, the US Federal Reserve cut the interest rate from 6. 5% to 1% to boost the economy . Cheap credit overheated the US housing market quickly. Consequently, the Federal Reserve raised interest rates to cool the market. This U-turn in interest rate policy was the catalyst for the crash in the housing market that accelerated from 2006 onwards. 4. Regulatory proposals and long-term solutions President Barack Obama and key advisers introduced a series of regulatory proposals in June 2009.The proposals address consumer protection, executive pay, bank financial cushions or capital requirements, expanded regulation of the shadow banking system and derivatives, and enhanced authority for the Federal Reserve to safely wind -down systemically important institutions, among others. The Dodd–Frank Wall Street Reform and Consumer Protection Act was signed into law in July 2010 to address some of the causes of the crisis. 4. 1 State and Local Action Increasingly, state and local governments have taken action responding to the foreclosure crisis through a combination of municipal litigation and anti-predatory lending bills.Baltimore and Cleveland initiated public nuisance suits against prominent lenders last year for targeting their communities through predatory lending. These cases may have an important role in providing meaningful, timely relief for a large number of homeowners who are in default or on the verge of default. In addition, over 25 states have initiated anti-predatory lending legislation triggered by North Carolina’s successful legislation enacted in 1999 and 2000. However, state legislation is limited due to federal anti-predatory lending statutes preempting state action.The Bal timore complaint, in particular, stresses the racialized impact of predatory lending. Two-thirds of the foreclosures associated with Wells Fargo lending were in census tracts with over 60% African American populations, while less than 16% were in tracts with less than 20% African American residents. 4. 2 Federal Legislative Actions Over the last year, Congress has introduced a variety of proposals designed to address the crisis, from increased funding for housing counseling and consumer education to empowering bankruptcy judges to unilaterally change the terms of existing mortgages to bail-out distressed borrowers.Federal and state regulators are following suit with guidance and restrictions on some prime lending. There has been an increase in litigation related to the subprime lending market based on discriminatory predatory lending, an increased call for â€Å"suitability standards† in mortgage lending, and more non-consumer law suits, such as investors suing issuers, lende rs suing brokers, and investors suing lenders. This comprehensive legislation includes the Federal Housing Finance Regulatory Reform Act, The Hope for Homeowners Act, and the Foreclosure Prevention Act.The Federal Housing Finance Regulatory Reform Act provides regulation for government sponsored entities such as Fannie Mae and Freddie Mac and the Federal Home Loan Banks. This regulator will have the authority to establish capital standards, prudential management standards; enforce its order through cease and desist authority, civil money penalties and the authority to remove officers and directors; restrict asset growth and capital distributions for undercapitalized institutions; put a regulated entity into receivership; and review and approve new product offerings of the enterprises.Conclusion This subprime mortgage crisis demonstrated a lesson for the world. Every financial institution and company learned an expensive lessen from it. Every country learned what they should do and w hat they should avoid in the future. Moreover, each individual also learned the norm, the ethics, and the responsibilities that they need to follow and take in business practice. One important thing to remember is to not be too obsessed and greedy about anything.

Anthropological Theory Assignment Example | Topics and Well Written Essays - 750 words

Anthropological Theory - Assignment Example The author goes into detail and examines extending of the interconnection and the relationships of such names and tries to place them into their reality. In his idea of interconnections, Eric Wolf states that the reification has led to the misconception of the fact about nations. He cites that nations have been taken as entities that existed independently of one another. However, in his idea of connections, Eric Wolf clearly outlines the relationship between nations dating back a long time ago. Eric Wolf cites the dangers of reification as being that of giving falsehood on the reality of humanity. He cites that there is a neglect of interrelationships between human beings. He gives examples of the spread of diseases from past to present, similarly, he cites the diffusion of people through slavery and servitude to justify his idea of connections. One other danger, Eric Wolf cites in his idea of connections is that reification has led to the misconception and division of disciplines. He gave examples to show how scholars of Sociology and political science split political economy. He cites these examples as misleading misconceptions from scholars. Eric Wolf critically examines social sciences split from political economy. He argues that political economy made sense since it justified the idea of interconnection. He points out that the treatment of independent states, for instance, the United States and Greece as static and in rival by stable internal interactions and control from outside has prevented us from understanding their relationships and confrontations, a fact inconsistent with his idea of interconnections. He further points out that the difficulty is further compounded with the imaginary arrangement and division of nations into blocks as well as civilization based categorizations. Such names like, the East and West, the civilized and developed west and the

Hand By Hand School of Autism Research Proposal

Hand By Hand School of Autism - Research Proposal Example But if the school offers more courses and adopts a more flexible policy it can achieve much more than planned. Threats posed to school include recession in industry as well as changes in government policies or in legislature. Demographic or cultural shifts can also be lethal. Hand By Hand school of Autism will focus on the kids aging from 5 — 12 years with the autism disorder. Business is a venture of four partners where all of them are responsible for equity in the ratio of 1:1:1:1 and for management too. All are business graduates hence understand the processes and plans completely. Specialized faculty will be hired in order to maintain the standards of the school. Class room environment will be of special importance. Courses will be in accordance to the needs. Feedback will be given to the parents on regular basis. Students will have regular sessions with the psychologist in order to examine their mental health. School will help parents diagnose and assess the disorder and help cure it at early stages. School will help the kids with speech therapy, physical education, music education and outdoor activities to overcome their disabilities. School website will contain effective advertising material along with description of services the school is providing. Faculty will be introduced on our webpage to make the parents know about them. Students’ attendance record can also be checked by the parents online. Financial statements are projected at the end and some graphs are given to show the growth and profitability ratios. Vision We aspire to be most reliable and quality oriented autistic institution in Canada with an emphasis upon excellence. With excellence in quality, we also give importance towards lowering the expense of the parents. Thus, we aim to provide quality service at an affordable price. Mission To fulfill our vision we provide an encouraging and conducive to growth environment to the learners along with inculcation of excellent academic as well as extra-curricular skills to make them productive citizens. Our programs are designed in such a way that all around development of the individuals are facilitated. The programs are designed after consulting the doctors and experts. The teachers who will be hired will have significant experience in this area. Table of Contents Executive Summary 2 Vision 3 Mission 3 Industry Analysis 6 SWOT Analysis 6 Porter’s Five Forces Model 7 The Idea 8 The market 9 Competition 10 Value Proposition 10 Market strategy 12 Marketing Objectives 12 Risk 15 Financial 16 Sensitivity 17 Operational Timelines 19 The Team and Advisory Board 20 References 24 Appendix 25 The Industry Every business operates among a group of firms, who produces competing services and products, which is termed as an industry. In simple words, industry can be referred to as a group of organizations, who are dealing in identical services and products. Although there is a significant amount of differences between the competitors, yet every industry has their own set of rules regarding the price, product and distribution (C.A. Rao, B.P. Rao & Sivaramakrishna, 2009). Before starting any new business, it is important for the strategic manager to understand the structure and then decide on the ways in which the firm will be competing with other competitors. Therefore, industry analysis is a critical step in framing the strategies. Strategy is the

Ethical Dilemmas in Psych-Article Critique Assignment

Ethical Dilemmas in Psych-Article Critique - Assignment Example The experiment was also approved by Stanford’s Human Subjects Review Committee (the university’s equivalent to an IRB), the Stanford Psychology Department, and by the Navy, who funded much of the study. The APA, at Zimbardo’s request, conducted an ethics evaluation in 1973 and concluded that all existing ethical guidelines had been followed (O’Toole, 1997). Like in the case of Milgrim’s famous study on authority conducted a few years earlier, which has been compared to the Zimbardo study, there are those who believe that this study would have never passed an IRB’s scrutiny today. Zimbardo himself felt that there was much about this study that was unethical. In his book The Lucifer Effect (2007), Zimbardo even apologized for conducting it. He believed that it was unethical because of the suffering it inflicted on its participants and stated, "I was guilty of the sin of omission—the evil of inaction—of not providing adequate overs ight and surveillance when it was required†¦The findings came at the expense of human suffering. I am sorry for that and to this day apologize for contributing to this inhumanity." (181, 235) PINNEBAKER (1997) James W. Pennebaker’s article (1997), â€Å"Writing About Emotional Experiences as a Therapeutic Process,† is a literature review. ... One of the most interesting studies he discusses is the study in which patients used a â€Å"magic pad;† researchers found that there were as much positive effects as therapy modes in which they received feedback from a therapist. Pennebaker’s thesis of his article seems to be that there needs to be some kind of physical activity in the disclosure of trauma and to remedy inhibition; what form the activity takes does not matter, as long as it occurs. Pennebaker, in his discussion of the research about writing, does not state if the evaluators followed ethical guidelines, but since they all occurred in laboratory and university settings, it can be assumed that they were all brought before IRBs or similar authorizing committees. It can also be assumed that all participants granted informed consent. It does not seem that other than a few tears, much harm occurred as a result of their participation in any of these studies. Some emotional pain is expected when disclosing trau matic experiences, and in most cases, the release of emotional pain is therapeutic. Most members of IRBs, who are most likely also counselors or those familiar with the counseling process, would understand this when faced with approving these kinds of studies, so passing them was probably an easy process. Pennebaker makes it clear that more studies on the therapeutic benefits of writing needs to be conducted. This article and the studies he discusses support the importance of putting language to traumatic experiences, whether by talking about them, writing about them, and even better, by doing both. MIDDLEMAST (1976) R. Dennis Middlemast’s study (1976) was conducted in 1974, like the Zimbardo study, before the widespread practice of IRBs were firmly established. Also like the

The Life of Jean-Paul Sartre Essay Example | Topics and Well Written Essays - 1750 words

The Life of Jean-Paul Sartre - Essay Example The years that followed marked the life of a man with great creativity, talent in writing, deep thinker and a man of strong political will and persuasion. All these characteristics coupled with his childhood experiences led to his astounding achievements through his plays, novels, books, essays and lectures. Sartre's childhood was filled with much bitterness and confusion. The first natural pain to deal with was having no father, after the first fifteen months of his life. Sartre was clearly hurt by the fact that he never had a chance to be acquainted with his father, and was never told anything significant about the relationship they had; whether his father had ever taken him "in his arms," or if he had even loved him (The Words 20). Sartre then grew up with his grandparents who were rather fond of him, or at least depicted that in their mannerisms (Experiential Influences, par. 5). However, he felt that it was just family "play-acting," and a "system" that "horrified" him. (The Words 84; 112; 222). Sartre also faced an identity crisis. Despite his family's claim of him being the "miracle child" and "wonder child," he saw himself as ugly. His peers had also given him that impression. He was short, small-built cross-eyed and awkward in stature. Added to this, his mother treated him like a girl, not allowing him to play the seemingly rough games that other males would play, and keeping his hair long. It was his belief that she had silently prayed for a girl (Experiential Experiences, par. 7). He also felt forced into a lifestyle of reading and writing, because that was what his grandfather Charles admired, having been a writer himself. It however became a pleasant escape for him from the unhappiness he experienced at home. In his autobiography The Words, he states that "By writing I was existing. I was escaping from the grown-ups." It also positively affected his intellectual development as he became familiar with famous authors of his time (qtd in Experiential Influences, par. 11). As if this was not enough for Sartre to deal with, he also suffered from ill health. He notes in his autobiography, The Words: Things would have been fine if my body and I had got on well together. But the fact is that we were an odd couple [] If he suffers bodily as a result of needs and sickness, his unjustifiable state justifies his existence. His right to live is based on hunger, on the constant danger of death. Breathing, digesting, defecating unconcernedly, I lived because I had begun to live. I was unaware of the violence and savage demands of that gorged companion, my body, which made itself known by a series of mild disturbances, much in demand among grown-ups [] I had almost died at birth (88). His father had actually been quite ill himself when he met Ann-Marie in 1904. At that time he was suffering from entercolitis, which he developed when he visited China. He however married her and soon after she became pregnant with his child, Jean-Paul Sartre. Sartre feels that his father's illness had a major role to play in his own illness. He describes in The Words how his mother had stayed up many nights worrying and had stopped breastfeeding him very soon because "her milk dried" (16). He was thus sent away nearby to be nursed. He meanwhile was ailing from enteritis. His mother's re-marriage had a negative effect on him as well. He felt alienated and lonely. Moreover, he was unhappy about having had to

Teamwork Skills and Critical Appraisal of Presentation Essay

Teamwork Skills and Critical Appraisal of Presentation - Essay Example We were amazed at the idea of this educational charity project, which transformed a clay mine into a garden where students and non-students alike can learn more about the environment. The gardens for instance, consisted of various plants that are found in various parts of the world, and are usually grown in different climates, but could still survive under England’s climate conditions. At the same time, the people behind the project also made sure that the experience was enjoyable, by incorporating culture, music and theatre arts in their education programme. Indeed, the Eden project is in itself, an excellent mix of science, technology, the arts, culture, horticulture and architecture. We found it particularly inspiring how the project also aims to reach out to various members of society- such as prisoners from the prisons in the South Western part of the country, wherein these prisoners are taught skills such as planting fruits and vegetables, marketing, sales, distribution and even construction and maintenance, so they can continue to develop and improve their abilities, and create employment opportunities for themselves in the future. The following pages of this report shall discuss what my team did during the whole trip, and the skills that we found to be useful in accomplishing our tasks. The Belbin Teamwork Framework Belbin (1983) established his teamwork framework in 1981, and since then, his framework is one of the most popular when it comes to developing and assessing team development. When it comes to achieving optimum performance for any organisation, Belbin believes that one of the first things to consider would be the composition of the team itself. In other words, it is crucial to take into account the roles that different members of the team play, and how each member interacts with the other members of the team. In an organisation, or a team, Belbin believes that there should be individuals who take on one of nine roles, or at least some of his nine roles. These nine roles are: 1) the shaper, 2) the implementer, 3) the completer-finisher, 4) the coordinator, 5) the team worker, 6) the resource investigator, 7) the plant, 8) the monitor-evaluator and 9) the specialist. All these roles are also supported by corresponding individual characteristics. For instance, the ‘shaper’ is one who is focused on the task, is highly motivated and is determined to achieve goals. His role is ‘shaping’ the other members of the team to fulfil this purpose. The ‘coordinator,’ on the other hand, is more interactive with the other members of the team. He/she is the one most likely to trust that the other members of the team can and will carry out their respective tasks. For the most part, coordinators are optimists, who are tolerant of the mistakes of others. At the same time, he/she may also be strict with rules. The ‘resource investigator’ is the one who is constantly on the lookout fo r information and thus may never be able to be found in one place. He/she may have the characteristics of a negotiator, and he/she is the one who actively takes on the task of exploring opportunities and meeting new people. The resource investigator is also likely to be the curious one of the team- always asking questions from others and adopting and modifying other ideas picked up from other individuals. The ‘implementer’ on the other hand, is characterised as a practical individual, who trusts easily and is respectful of traditions. They are more realistic and may also be conservative. They may not take too well to changes within the organisation. The ‘

Human Resources Manager Coursework Example | Topics and Well Written Essays - 1000 words

Human Resources Manager - Coursework Example One of the most important requirements in recruiting the right individual for the job is educational certifications. It is important to ensure that the education background of the applicants is relevant and that all the required courses and classes for the offered position are completed. For instance, an applicant for the position of the Quality Control Engineer should have undertaken courses in Quality Control Engineering and acquired relevant certifications in relation to the courses. Another important requirement in the recruitment process is the work experience of the applicants (Francis, 2012). Given the organizations task ahead, it is important to invest in employees that have a good background in what they do to allow for maximum performance and timely achievement of the organizations goals and objectives. Work experience involves both the positions held by an individual in previous work environments and the history of their work ethics. This would be important in determining the gained skills and abilities in handling various issues within their range of roles and responsibilities. The applicants’ previous work ethics would determine their interaction with other employees in the organizational setting and the performance of activities in an ethical manner. The soft skills of the applicants are also an important requirement in determining their abilities to handle different situations within the work environment (OMeara, 2013). Some of the skills such as communication and collaboration are important in measuring the applicants’ ability to work with other members of the organization in teams. Academic competence enhances organizational performance as individuals put their acquired skills into practice; hence improving the performance of the organization (Armstrong, 2012). On the other hand, work experience promotes new approaches in the organization as different individuals apply varying