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Dynamic characters are an essential part of any writer’s library. The author’s create personalities that keep readers captivated. Also, the author’s make us analyze what his purpose is of having dynamic characters in their work. Do they do this to give their work authencity or to give their play suspense and humor? Only the author knows the true answer. What I know is that dynamic characters are very important for plays. It makes the readers more interested in the story behind the play. Also, it makes us understand the attitude of the character at the beginning and end of the play. We can experience this in the plays “ The Rising of the Moon” by Lady Gregory and “ A Raisin in the Sun” by Lorraine Hansberry. These are plays that use dynamic characters as main characters who make us laugh, cry, understand and sympathize with them as they go through their change from protagonist to antagonist or viceversa.

The play that shows the main character’s change from stubborn to considerate was “ The Rising of the Moon”. In this play, the Sergeant ( protagonist ) is serious and determined. He believes in law and order and has a unique way of percepting things. From this description we can say that “ he is a large man with a peasant’s sturdiness, similar to a large dray horse”. He becomes the most interesting character in the play because we see that he needs to analize the situation as to whether he would let the criminal make his escape. But we see that as thye two men start to know each other, the

Fugitive revives the Sergeant’s patriotic feelings, letting the criminal escape.

The Sergeant lets him go because he realizes that he could have been in the criminal’s situation. There is a passage in the play that reveals the Sergeant’s realization when he says “ ...If it wasn’t for the sense I have, and for my wife and family, and for me joining the force the time I did, it might be myself how would be after breaking gaol and hiding in the dark...” (1170). In this part of the play we realize that the Sergeant has had a change of heart and we as readers start to suspect that the Sergeant is going to let the criminal go. The Sergeant is a dynamic character because he evolves from a strict, dominant, ambitious man to a more open � minded and considerate man for some readers. To others he changes into a bad, unthoughtful man due to the fact that some readers disaprove with the autor because they think that indirectly she is helping the idea that criminals should be let free under certain circumstances. Overall, the autor wants us to focus more on the message of the story because it shows us that even the person with a lot of values can be flexible with humanity.




The autor of the play “ A Raisin in the Sun” uses a very unique technique to focus on the characters. In comparison to the play “ The Rising of the Moon” they both present characters that go throught experiences with the enemy and we see how at the end of the play they have matured and grown into different men. In fact, in the play “ A Raisin in the Sun” we see a very dynamic yet ignorant character named Walter Lee Younger. This African-American, 0 year old man has a mentality of a child. He wants a better life for

his family by using the insurance money that his mother has received for his father’s death. At first, his mother refuses, but since she wants to trust her son she gives him the money. Walter, being at the time an immature and stubborn man, invested all the money that was given to him into a liquor store that eventually went into his friend Willy’s pocket. At first, us as readers get mad and frustrated at him, but then we realize that this had to happen because this event is what changes Walter from a boy to a man. We see that he has finally become a man when he, for a second time, refuses the money from the white people by saying “...Well- what I mean is that we come from people who had a lot of pride. I mean- we are very proud people. And that’s my sister over there and she’s going to be a doctor- and we are very proud-...And we have decided to move into our house because my father- my father- he earned it for us brick by brick...We don’t want your money.” (160). Walter evolves from a very ignorant, childish man into a very strong, independent man.

The Sergeant from “ The Rising of the Moon” and Walter Lee from the play “ A

Raisin in the Sun” are very different yet similar characters. They both confront individuals from the other side of the road and by the end of the play they become different individuals and develop different thoughts. The Sergeant becomes a man that is very considerate and thinks about the way he would have been without his family, he belives in the righteneous of other people and has faith that the fugitive , being free, will do something positive with his life. Walter becomes a mature, family man that would do anything for the happiness of his family. So here we can tell that they both are very similar. They both have families that they love and they both try to do what’s right. They

4

both have jobs that are to serve others, the Sergeant as a police officer and Walter as a chauffeur. They both are around the same age. Most importantly, they both know the importance of understanding what they as right and wrong and of doing what you believe in and this is what these two dynamic characters contribute to these plays.

Works Cited

Gregory, Lady. “ The Rising of the Moon.” Literature Reading Fiction, Poetry, Drama and the Essay. Ed. Robert DiYanni. 5th ed.New York McGraw, 00. 1164-117.

Hansberry, Lorraine. “ A Raisin in the Sun” Literature Reading Fiction, Poetry, Drama and the Essay. Ed. Robert DiYanni. 5th ed.New York McGraw, 00. 167-16.

Shearin John. “I. Plot and Character” A Sample Analysis of The Rising of the Moon by Lady Augusta Gregory. 150.16.6.50/Faculty-Staff/John_Shearin/moonrise.html-1k-

http//www.google.com/search?hl=en&ie=UTF-8&oe=UTF-8&q=like+a+large+dray+horse





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Foil characters can be described as characters that contrast with one another. In the play “The Crucible,” by Arthur Miller, John Proctor and Reverend Hale are two foil characters that can surprisingly be compared and easily contrasted by thier good and bad aspects. In the play John Proctor was a proud farmer that was respected and also feared by people. Reverend Hales was man of honor and a witch hunter in Salem, Massachusetts. Both characters can be both similar in ways, but totally different in other views.

John Proctor played the role of the hero in the play. He was an honest man who just wanted the people to see the truth which was that there was never any witchcraft in the town of Salem and to stop the useless death that were accruing. Through his attempt to bring out justice to the town, Proctor came across two challenges that really showed his character in the play. He overcomes the first by his decision to testify against Abigail, despite his guilt and knowing the risks that came with the truth. His second conflict was whether to sign a false confession and save his life. His decision to choose self-sacrifice and not go through with lying to his friends and neighbors, shows both that he is the hero of the play and his morals in the type of person he was. As well as Proctor having good morals, Reverend Hale also had some good aspects in the play.

Reverend Hale was also a good man in some ways. He was witch hunter that just wanted to save the people of Salem from witchcraft. Later in the play he comes to his senses and tries to save more people that were being accused of witchcraft, like Proctor was at the end of the story. After he becomes aware of Abigails, Parris, and Hathornes hidden agendas, he begins to question the validity of the trials, in which he acts as a judge. He quiets the court for the truth and because he didn’t want to be part of the many lies that send people to their deaths. This was what really showed that in so ways he really did have good morals. Even though both Proctor and Hale have good aspects they are also known to have bad aspects in the play.

From the beginning of the play, Proctor and Hale showed their bad aspects. The play starts with Proctor just ending his affair with Abigail wounding his loyalty with his wife, Elizabeth. This event in the play was what scarded Proctor’s character through out the whole play. Hale was sent by Reverend Parris in the beginning of the play to investigate witchcraft with some girls that were dancing in the forest. After witnessing the strange occurrence that was happening to some of the girls, he was blinded by the lies of witchcraft and became a follower of those who accused the town’s people of it. For example, he knew that Rebecca was some how innocent and still arrested her to really just save his own life in a way. Reverent Hale did change his ways, but also says that it is ok to lie to save your life. This shows Hale’s character is selfish and that he would do anything to save his life even if it is wrong.




Both John Proctor and Reverend Hale are foil characters that can be compared to find the motives of each other. What really made the easily compared were their good and bad aspects through out the play. From Proctor becoming the hero in the play, to Hale changing his ideas of witchcraft can show the difference between the two. Both characters are needed to reflect on each other, making them characters with great importance in the play.



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Why Hamlet delays

Hamlet is an emotional person. He feels guilt, remorse and has responsibilities, yet at the same time he feels pride and a sense of duty. He is also quick, in Act one, scene five to take on his role of avenger

“Haste me to know’t, that I, with wings as swift

as meditation or the thoughts of love, May sweep to my revenge.” I believe that there are many factors that contribute to hamlets delay in action.




Hamlet is passionate about his role and swears to “wipe away all trivial fond records” and to concentrate avenging his father’s death. However he is concerned with his mother’s betrayal “O most pernicious woman!” and this makes him hesitate.

This was not the main issue his father spoke of, yet Hamlet is troubled by the thought of his mother’s marriage to his uncle. Hamlet idolized his father so much that he would do anything to make him happy, to be the perfect son. However towards the end of the scene he starts to have some doubts, “The time is out of joint. O cursed spite, that ever I was born to set it right!” Although he feels it’s his duty, he says ‘cursed spite’ I think he is resentful of his evident fate and feels put upon to be made to do this terrible deed.

Hamlet tries to convince everyone that he is mad rather than plotting revenge. Although at first Hamlet feels the idea of acting mad is a good one, it becomes obvious that even Hamlet doubts his genuine sanity. In some parts of the play it is hard to tell if he is acting mad or he is really mad particularly in act scenes 4 when Hamlet argues with his mother. He was already accusing her of treachery and when talking to his mother he is threatening, Gertrude becomes scared ‘though wilt not murder me? Help, ho!’

When Hamlet murders Polonius he still seems to be troubled with his mother’s betrayal.

“A bloody deed-almost as bad, good mother, as kill a king and marry with his brother.”

There is a continuous theme of deceit within the play and Hamlet feels strongly about the deceit by his mother. His idolization of his mother being completely shattered may have thrown Hamlet into depression. Also

the death of his father and the sudden marriage is enough to make anyone depressed, so for Hamlet, who is a very philosophical and deep character these events may have tipped him into mad behavior.

Hamlet is battling with his conscious, he has become more aware of his sense of morality towards the end of the play. Hamlet lives in a society where it is thought wrong to kill, even for revenge, law forbids it, but he also lives in a society where duty and personal honor prevail. Hamlet tries to stir up his hatred for his uncle by speaking in harsh language, calling him a ‘bloody, bawdy Villain’ and a ‘remorseless, treacherous, lecherous, kindles villain.’ But this tactic does not work and he continues to dwell.

Hamlet’s ‘play within a play’ again shows some hesitation, there is no physical action-taking place on Hamlets part, however Hamlet is searching for some sort of truth in what he has been asked to do. In seeing Claudius’s reaction to the play that Hamlet has prepared Hamlet has some hard evidence. The ghost of his father, an apparition, has only told Hamlet of the murder. Hamlet wanted to concrete some evidence.

Despite all this, when the play is performed and Claudius’s reacts strongly, hamlet still does not kill Claudius. This is another opportunity Hamlet passes on.

Hamlet has another ideal situation where he can kill Claudius when Claudius is praying in the church, however, Hamlet is quick and realizes that if he were to die now, he would go straight to heaven as he has been purged of all sins. “A villain kills my father, and for that

I, his sole son, do this same villain send to heaven.”

He wants Claudius to suffer the same fate as his father did; he realizes that with the forgiveness Claudius has asked for he will end up in heaven.

Although Hamlet does finally kill Claudius it is the death of his mother that is the key to the murder of Claudius. Hamlet is so enraged and passionate about the death of his mother. The death of his mother leaves Hamlet with nothing left to live for and there is no longer any reason to hesitate as he has nothing left to loose.

In conclusion I think hamlets lack of resolve comes from his personality, he was too uncertain of anything including his own feelings to commit himself to action, he had too many conflicting ideas in his head including knowing that killing is wrong, revenging his fathers death, if there was any truth from what the ghost said, whether he really was mad and his mothers hasty wedding to his uncle. This is enough to put doubts in anybody’s mind.



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On first observation of the subject in question, Willy walked into my room a nervous, tired old man who had clearly entered the first stages of clinical depression and was near breaking point, mentally and physically. His weary limbs crashed onto my chair as if he had not rested in days.

He said that he had been working hard for the good of his family and said he was the one who people came to if they needed something in New England. His appearance told a different story though and it was quite clear that his optimism was merely a mask for a hidden agenda that he clearly did not want to reveal to me.

With further examination, I have come to realise Willy Loman is like an oyster; full of interesting issues waiting to be discussed, but always clams up when asked about more sensitive topics, such as his family and his overall status. From his notes, I am told he has two sons in their early thirties and a wife, Linda.




The eldest son Biff, is currently a farm labourer of sorts and was allegedly looked down upon by his father because of this job he undertook. When I confronted Willy about this, he seemed cold and spiteful about Biff at first, but when we tried to move onto the next subject, he immediately contradicted himself from what he said a few seconds ago and praised Biff for being a hard worker and not being lazy. This may depict a man, unsure of his own judgement and possibly someone who was willing to change his own opinion for the benefit of others.

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John Donne wrote the essay, Meditation XVII, from Devotions Upon Emergent Occasions. This piece was written three hundred and seventy-eight years ago in 1678. John Donne wrote this essay at a time when he was very ill. Due to this, the main topic of his essay is that of death and of ones own mortality. In the beginning he lets us know that he is sick when saying and perchance I may think myself so much better than I am, as that they who are about me and see my state may have caused it to toll for me The bell Donne is talking about is the one that tolls every time a parishioner dies. Donne says that he might be so sick that the bell may be tolling for him and he does not even know it. At this point he is so sick that people have to take care of him. He feels that the people caring for him may have caused the bell to toll for him, especially those who see how sick he really is. John Donne, emphasizes the unity of the Catholic Church and he describes her as being universal. He says that church ceremonies such as baptisms and funerals are important to him. The young children who are baptized and those who die are all linked to him through God. With every baptism there is another life added to the church family. This life does not act or survive alone. It is connected and affects everyone one elses life in the congregation. In this essay, Donne talks about all humans being a whole. He uses the book as a metaphor, saying that God is the author and every man is a chapter in his book of life. If one person dies, their chapter should not be torn out of Gods book. Instead it should be translated into a better language and every chapter must be so translated Donne believes that God has a hand in everything and that, all which happens, happens for a reason. He states that God employs several translators; some pieces are translated by age, some by sickness, some by war, some by justice; but Gods hand is in every translation. The translations of age, sickness, war, and justice are all things that can cause death. In that case, these elements can translate human beings into spirits of heaven or to anywhere else God chooses to send them. In the middle of his essay, John Donne gives a significant quote No man is an island, entire of itself; every man is a piece of the continent, a part of the main. If a clod be washed away by the sea, Europe is the less, as well as if a promontory wereany mans death diminishes me, because I am involved in mankind; and therefore never send to know for whom the bell tolls; it tolls for thee. This is the most popular quote in John Donnes essay and today people still use this quote in many ways, even though it was written almost four hundred years ago. Donne means that no one person can stand alone. Human beings need others for support and survival. Then he talks about the death bell. He says that the bell tolls for thee, meaning all humankind. Whenever the bell tolls it tolls for more than the one person who has died. It tolls for all those who are left behind to mourn. When a person dies, we not only mourn their death but we mourn our own mortality as well. The death bell can bring focus to our own lives and help us live and discover our meaning. Donne says that it is not enough to go through our own misery but we must all feel the misery of our neighbors and all of mankind. He says that, tribulation is treasure in the nature of if, but it is not current money in the use of it, except we get nearer and nearer out home, heaven, by it. Pain and misery will bring us closer to God. At the end of his essay, Donne suggests that thinking of our own death and misery is not enough. He says that often times we do not think of these things until we are dying. We must also take part in the misery and deaths of others. Through sacrificing and suffering in others miseries we become closer to God. By considering and experiencing the death of others as they leave this world, our thoughts turn closer to God and our own afterlife. At the very end Donny says that God is the only one who can assure out existence in the after life. I found Donnes piece very interesting. I also found it extremely confusing and quite a challenge, which is partially why I was drawn towards it. I read it over and over and took advantage of outside sources in order for me to understand it better. His style of writing is almost before its time and I wondered how this style relates to other works of this time. This work was written a very long time ago and it so well written. Every sentence must be broken apart and reread in order for it to make sense. He expresses themes and true life issues in such a small piece or writing. John Donnes use of figurative language is what he is admired for. He also usesmetaphors to characterize humankind and death. He also relates the human body to a chapter in Gods book. John Donne also asks questions in his essay. These questions add to his style and allow the reader to become more involved and to stop and think. I would like to know and understand more about his use of literary terms and style of his essay. I think that the new criticism approach could help me. Hopefully this approach would be able to aid me in analyzing his writing approach and style of the Meditation essay. After looking and researching an approach that would be most beneficial, I decided to go ahead and stick with the new criticism approach. I found that Internet sites were the most useful and abundant of all sources. Although it was difficult, to pinpoint an exact site that could give me a clear definition of new criticism. The sight I found was very beneficial in helping me understand the concept of new criticism a little better. This website was written by Sklyar Burris and was titled the Literary Criticism Study Guide. Skylar gave a good and clear overview of the numerous critical literary approaches. Before jumping into the paper itself, I thought it would be a good idea to find out the pros and cons of a criticism approach. Burris gave three major purposes of criticism. The first purpose is to help us solve a problem in reading. The second is to help us choose the better of two conflicting readings. Finally the third reason is to help us evaluate all literature and to have a better understanding of its meaning. After finding out some of the reasons for this critical approach, I searched for the site that gave the clearest definition of new criticism. I also found this in Sklyar Burriss website. The definition I received was that new criticism is a formalistic approach to literature and it involves a close reading of the text. Formalistic critics believe that all information necessary to the interpretation of a work must be found within the work itself; there is no need to bring in external information about the history, politics, or society of the time, or about the authors life. Because they are interested in what the work itself has to say, formalistic critics (presumably) so not view works through the lens of feminism, psychology, mythology, or some other such standpoint, and they are not interested in the works affect on the reader. Formalist critics generally delight in a close analysis of irony, paradox, imagery, and metaphor. They are also interested the works setting, characters, symbols, and point of view (4). In the site written by Skylar Burris, I also learned that there are special terms used in the new criticism approach. One of the terms used is tension. Tension is used to describe the integral unity of a work, which results from the resolution of opposites mostly in irony and paradox (5). Intentional fallacy is another term used and it is the belief that the meaning or value of a work may be determined by the authors intention (5). Affective fallacy, is the belief that the meaning and value of a work is determined on how it affects the reader (5). External form are the outside forms such as rhyme scheme, paragraphs, and stanza forms. Objective correlative is a term that refers to a set of object, or a situation, as a chain of events which is the formula of particular emotion, such that when the external facts are given the emotion is immediately invoked (5). I think that tension is a term that I would use most for this piece of work. I also learned some advantages and disadvantages to the new criticism approach. One of the advantages is that this approach emphasizes the value of literature aside from its context. New criticism is also a good starting place from all critical approaches and many other approaches must start at new criticism. Being that it has its advantages, it has disadvantages as well. In Burriss article, I read that through this approach the text is seen in isolation. Formalism ignores the context of the work. It cannot account allusions. It tends to reduce literature to just a few rhetorical devices, such as irony, paradox, and tension (6). This means that the history and conditions of when a work was written does not matter. Unfortunately, that is one of my curiosities relating to Donnes piece. I would have liked to learn more personal things about his life, illness, and time period; however, that probably takes effect in the new historical approach. Since John Donnes essay is such a confusing piece, it takes extra time and effort to understand it. This essay is not something that can be comprehended with only one reading. It must be read repeatedly and even then it is still confusing. In order to help me in understanding this work I went to the Internet and looked up some sites on this work. There are numerous sites on just this one piece written by John Donne. People have used pieces of his essay and applied them to different subjects and to all that is going on in the world. I found one site that was the best out of all of them. It was extremely helpful in allowing me to become more familiar and comfortable with his work, although I am not sure who the owner of this site is and have yet to receive their reply. This site contained John Donnes entire essay and it was written with annotations. These annotations allowed me to click on the areas that were most confusing and would help clear up any questions with its commentary. This site also had many links to other sites relating to John Donne. In Sklyar Burriss website, she also gave a link so that readers may have the chance to see a small example of a new critical approach, applied to a piece of literature. This was the most frightening part of the whole experience and there were no annotations for it either. What I saw looked like a text massacre. This was a piece that had been written by Sandra Cisneros. They then applied the new critical approach to it. The text had literally been ripped inside out, and by the end of the story, it was completely turned around with a different meaning. Unfortunately they didnt clearly explain how to do this. So after paranoia set in, I began to seek other sources that would give me guidelines in ways to apply the new criticism approach. After a not so successful search, I was ready to take a stab at it and attempt the application of the new critical approach to the Meditation XVII. At first I would go back to the basics and to the general definition of new criticism. With the new criticism approach, certain elements are focused on, such as irony, paradox, imagery, metaphors, settings, characters, symbols, and point of view. Most of these elements are self-explanatory but before I can apply these methods to Donnes piece, I must have a clear understanding of what they mean and represent. I think that point of view is the necessary place to start. I would apply the point of view approach to this piece by reading each sentence at the same time taking in to account who is telling this story. I already had known it was written in the first person point of view and now that I read it over, I realized that John Donne refers directly to himself in nearly every sentence. The Meditation XVII has many symbols within its text. Symbols are something that represents something else. The very first sentence starts off with a symbol, as Donne first mentions the bell. On the fourth sentence there is a reference to the church, which symbolizes unity, connection and being universal; however, it also symbolizes death, silence, and disconnection. In line nine, there is another symbol which is the chapter. The word chapter symbolizes the role of each man in Gods Book, which is also another symbol. The island is used as the symbol of humankind. This is used to show that no man/island can live alone and that companionship is necessary, with out it there is no true life. Gold is another important symbol that is talked about at the end of the essay. Gold is described a treasure, money, and as in a mine. When looking at in from the new criticism standpoint, the meaning and symbolism of gold is left out. Gold only seems and represents what it is, such as money. When not seen through the new criticism standpoint, we realize that gold is the symbol of a much higher meaning. Gold is the symbol or experience and suffering. The bell is the most important and symbolic symbol in John Donnes Meditation XVII. The bell occurs in the essay from the very beginning, till the very end. In each of these instances the bell is either tolling or ringing. Through a new critical view the bell can also represent life, and silence. Irony is a mode of speech in which the meaning is the opposite of what is actually expressed. When looking at the approach through the means of irony, the text changes tremendously. The first sentence states for whom this bell tolls may be so ill. When seen through the eyes of irony this could mean that for whom the bell is silent for, may be so healthy that he knows its silent for him and maybe the narrator thinks he is so much healthier than he really is, that when the people who are not around him, do not see him, they cannot cause it to be silent for him. Being that irony is the opposite of what is exactly expressed, it may suggest that people actually dont need others to live and every person is his or her own island. After attempting the new critical approach and not knowing if Im coming or going, I found that I do see Donnes work somewhat different. It is always different when a work is viewed and studied on a different level and approach. The new criticism approach allowed this work to be read through different eyes, creating a different opinion. I really did not care for the new criticism approach applied to the Meditation XVII. I have learned the hard way, that I am more interested in the history of a work and its author, instead of the exact context itself.



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It can be said that the term ‘human resources management’ became popular in the UK at the latter half of the eighties and at the beginning of the nineties. It has been applied to a diverse range of management strategies and has sometimes been used simply as a more modern term for personnel, employee or industrial relations.

It’s importance lies in its association with a strategic, integrated and highly distinctive managerial approach to the management of the people. The distinctiveness lies in labour being seen as an asset and resource and not as a cost. The strategy is to try to develop this resource to it’s maximum so that emphasis is on the individual employee and on his/her motivation, training and development.

Human Resources Management is defined as proactive rather than reactive, system-wide rather than fragmentary, treats labour as social capital rather than as a variable cost, is goal-oriented rather than relationship oriented, and ultimately is based on commitment rather than compliance.

The key themes upon which Human Resources Management is based include Human Relations psychology, Strategic Management theory, and the doctrines of quality and flexibility. The relative emphasis that is accorded to each of these themes can give rise to different ‘variants’ of Human Resources Management. In particular, it is possible to identify two extreme positions. These are Instrumental and Humanistic. Instrumental approaches draw upon the rational-outcome model of strategic management to view Human Resources Management as something which is driven by and derived directly from corporate, divisional or business level strategy, and geared almost exclusively to enhancing competitive advantage. Humanistic approaches, on the other hand, utilise ‘process’ theory to emphasise the reciprocal nature of the relationship between strategic management and Human Resources Management and the latter’s role in ensuring that competitive advantage is achieved through people but not necessarily at their expense.




One positive consequence of several new approaches to human resourcing has been to force managers to address the basic concepts and values that they routinely use in the evaluation of personnel processes, thereby encouraging a clearer understanding of the overall human resource system. Such an understanding is closely linked to the success with which the performance of human resources can be evaluated. Such evaluation has tended to take two forms a concern with systems of performance management, and the use of flexible working patterns and organisational structures.

However Human Resources Management is not perfect when you ponder on the point of view of the business goals and interests. It’s extremely hard for a company to achieve maximum profits and efficiency if it takes too much at heart the wellbeing and interests of its employees. This problem can be defined as an ‘integration’ issue where we distinguish the external fit of Human Resources Management with the organisation’s broader business view and the internal consistency of the policy goals of Human Resources Management itself. This is particularly problematic in highly competitive or recessionary conditions where the needs of the business are likely to undermine any internal Human Resources Management issues. For example, if shedding of labour should occur this would challenge, if not destroy, an organisation’s Human Resources Management image of caring for the needs and security of it’s employees.

The fundamental problem with Human Resources Management is that in most cases Human Resources issues are subordinate and secondary to business strategy. It is not simply that the search for profit overrides the policy goals of Human Resources Management, but arguably that Human Resources Management is pursued only in the belief that by raising employee’s commitment, flexibility and quality of their work the bottom line will be improved.

The contradictions within Human Resources Management are most apparent at the level of actual practices, with simultaneous advocacy of workforce attributes such as individualism and teamwork, commitment to a job and flexibility and development of a strong culture and adaptability. In identifying the tension between individualism and teamwork, for example, what these cases demonstrate is the need for a redefinition of Human Resources Management, for despite any surface similarity with the textbook checklists of Human Resources Management policies these cases could certainly not be described as operating a form of ‘development humanism’. The internal contradictions, which plagued Human Resources Management, are well illustrated by the issue of employee commitment. For proponents of Human Resources Management, commitment represents a key dimension because it’s sometimes assumed that highly committed workers are more productive.

Conflicts are apparent too where organisations have attempted to introduce more flexible working arrangements and performance-related pay. The problems with flexibility began partly from the tensions between different sources of flexibility. While soft forms of Human Resources Management encourage employee development through the learning of a broader range of skills, hard forms of Human Resources Management advocate the securing of greater variability in the volume of labour, therefore providing management with greater scope to match labour input to demand fluctuations. In addition, however, conflicts exist within each of the major sources of flexibility. For example, the danger exists of securing high levels of functional flexibility at the cost of other organisational objectives such as stability, continuity and cohesion. Likewise forms of numerical flexibility potentially clash not only with the objective of securing employee commitment but also with establishing and sustaining high quality output and group cohesion.

Performance-related pay, to emphasise the more purposeful and ‘object achieving’ focus of Human Resources Management, would seem not only to have failed to yield high levels of commitment in many organisations, but also to have perpetuated a longstanding tradition in wage and salary administration of ‘muddling through’. While a strategy for reward may need to be part of a wider human resources development strategy, reward in itself is not sufficient to promote human resource contributions to corporate improvement. More importantly, however, individual reward systems could well act to undermine co-operation, teamwork and even individual motivation. And these are all key elements of Human Resources Management.

These and other conflicts and contradictions evidenced by the different contributions underline the problematic status of Human Resources Management as a coherent concept. Rather than seeing this as an excuse for abandoning the notion of Human Resources Management altogether, however, the evidence presented would seem to support a more careful circumscribing of Human Resources Management, and a clearer definition of its status as a set of management practices. In doing so, the relationship between Human Resources Management and the longstanding core issues of labour management like issues of power, control, conflict, resistance, dependence, consent, etc. Human Resources Management is one of a series of approaches management may take to secure the levels of compliance and co-operation it requires. Different sets of circumstances will influence the adoption of one approach over others, while changing circumstances will encourage a shift from one to another and possibly the creation of new practices and approaches.

The central objective of Human Resources Management policy is to secure the commitment of employees to innovation and commitment of employees to innovation and continual improvement of product quality. Some measures of employment security and considerable investment in training and development are seen as essential supports for management effort in this area. Equally, the recruitment and retention of competent and committed staff is supported by competitive pay and reward structures which are perceived as fair. At the level of the workplace, these strategies require significant change in management behaviour. The crude assertion of managerial prerogative, associated with short-term low-cost approaches, is eschewed in favour of employee involvement in problem solving and fostering of a climate of operation and trust.

Human Resources Management has been dependent upon the changing economic circumstances of the past decade. It grew in the boom of the last half of the past decade, when attachment, commitment and development were the watchwords. It faced it’s sternest test in the severe recession of the first half of the nineties with its emphasis on restructuring, downsizing and a big reduction in both employee and managerial confidence in the prospects for renewed growth. For this reason Human Resources Management is now tinged with suspicion and a certain hostility as to its role in organisations. The difficulty for Human Resources Management is to establish its credentials as a central part of employee management in economic conditions that make the expansionary and development aspects of the approach extremely difficult to sustain.

While Human Resources Management has proved possible for traditionally conceived industrial relations and personnel management procedures to have endured economic cycles, even though the managerial strategies underlying them reflected the realities of the labour market, Human Resources Management has still to demonstrate that it has the robustness to move beyond generalised managerial prescriptions as a sustainable model of management. In this sense, this decade will be the testing ground for the idea of Human Resources Management as a consistent and integrated approach, as opposed to a fragmented and opportunistic set of interventions.

Industrial Relations Theory and Practice, Michael Salamon

Reassessing Human Resource Management, P. Blyton and P. Turnbull

Principles of Human Resource Management, David Gloss

A Handbook of Personnel Management Practice, O. Aikin

Personnel Management HRM in action, D. Torrington and L. Hall

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Integrity is a very important trait in leadership. A leader has to developing a trusting relationship with their employees in order to be an effective leader. Without trust between employees and their leaders both morale and work performance suffers. A leader who listens and follows through on their actions will have better morale and job performance from their employees, than from leaders who lack these leadership traits. In my experiences the leaders that I have worked with have not displayed any of those traits sincerely. It is not so much an integrity issue but an honesty or trust issue. If they would just be up front and be honest from the start we would have a better understanding of what is on the table.

# Leaders Born or Made?

I believe that leaders are made. Leadership traits such as honesty, trust and integrity all can be learned through experiences in life or educational settings. My feeling is a person who wants to be an effective leader can be one. Just by listening to your employee’s needs and wants allow you to understand if they understand the goals and the plan for the company’s future. Overtime someone can develop great leadership through their past experiences, their mistakes as well as others and leadership seminars. Everyone has the opportunity to become a good leader. The question is do we want to be a good leader for our employees and the company or for the power and the prestige?

# How can leaders be made more effective?




Leaders can be made more effective by developing a trust relationship with their employees. I think there a many different approaches to making a leader more effective. Listening is an attribute to being an effective leader. By listening to the employees wants and follow through on promise made employees will start to develop a trust with you. This trust that will develop will not only benefit the company but will lead to a good working bond together. Other ways for leaders to be more effective would be to read, leadership seminars, or have their management skills evaluated. Leaders who want to improve themselves as well as operations within the company will try to change, the ones who don’t will never gain that respect they are searching for.



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“The Risk of Experience”

We know that in our business, the product is sold and consumed at the same time, (unlike retail business, the customer pays for the food and pays for it at the same time)

However, regardless of a hotel’s class or category, it is evidently common that the room rates, yields and Gross Operating Profits constantly fluctuate. This fluctuation if not controlled forces the management to reconsider service levels and cut corners to achieve targeted profits. This so called “repositioning” results into inconsistency of service standards, food production and leads to increase in service errors, widening the discrepancy in the promised and actual product quality.

Repositioning of service levels change the customer’s value perception and thus gives the market an opportunity to seek discounts.




This process of declining value can be found in almost all class of hotels, regardless of their affiliation. When the hotels either chain affiliated or independent compete in the market place, they tend to enter in a cut throat price war and discounting becomes part of their day-to-day sales strategy. At the same time the hotels do not realize that their property is moving away from the customers set of choices, forcing the management to re-price premium products with lower rates.

At that time, the management often starts studying competition and try to copy the packages, promotions and offers. All this happens without realizing the need of a well thought clear value proposition. In this cut and paste process, stand alone independent hotels suffer the most. And gradually it becomes difficult to maintain year round profitable business. Whereas, the full service hotels speedily reduce their room rate to capture the lower market tiers.

We as professional managers know, but do not admit, that when our customers perceive higher “Risk of Experience” they push our room rates further down. And demand rates which we agree to maintain market share.

In my opinion, customer’s “Risk of Experience” is everything. This perception drives the market share upward or downward and can only be minimized if not eliminated via a well-chosen Value Proposition.

Unfortunately not many hotels have done so; however foodservice industry has such examples like McDonalds, KFC and Outback Steak House where the Value proposition is so strongly knitted around the entire business that customers themselves feel the tangibility of intangible value of the product. Why these foodservice businesses do not under price their products? Isn’t McDonalds aware that a new KFC outlet has just opened next door? Instead, McDonalds comes up with “McChicken Burger” and “McNuggets” attracting KFC’s clientele. McDonalds knows that its product line is perceived as consistent in quality and therefore uses innovation to re-enforce its value proposition.

Hopefully, one day the Hotels too would start realizing the need of a unique value proposition, which can minimize its guest’s perception of risk.

The point is who would dare to break through the mediocrity and redirect the operation to only serve the needs of a well chosen market.

What can be done?

A direction to create true Value for your customer and win

As the competition grows so as the opportunity! Don’t be delusional! This may not be true if a hotel cuts corners and increases customer’s “Risk of Experience” every time the market shrinks.

It is proven that the competition will not provide any opportunity to mediocre; no matter what kind of opportunity rises it will be captured by the market leader, unless the core decision makers strictly follow the principle of business management driven from best suited Value Proposition.

Not every value proposition suits every hotel business; neither every market opportunity fits into every hotel’s profile.

Value Proposition Management is the tool which enables a hotel business to thrive at the justifiable costs, with more returns than expected.

No two hotels or resorts are ever alike, so as the Business or Marketing or even the Cost and Expense plans. The one, which works for your competitor, could lead to disaster if your hotel attempts to follow without looking into your intangible assets and physical strengths.

A Company with a well defined value proposition and its adoption as the “core vision” is more likely to gain a substantial lead within its own chosen market, therefore would always be the leader. In todays competitive market a master of non and jack-of-all-trades suffers.

You have seen McDonalds, proudly announcing “billions of burgers sold”, do they make the best burger in the world? No! But they lead the market wherever they are, and they do it through specializing in their own value proposition, excelling in it, and expanding and maintaining their product line. Needless to say that McDonalds become unconditional choice for a budget minded customer looking for a fast bite.

The key is to create and implement business rules driven from customer’s set of buying rules. These rules must reflect a single value proposition in every aspect of corporate culture, hotel operation and marketing scenarios. Should involve all levels of organizational hierarchy and cover from restaurant menu design to the quality of bathrobe.

Remember! The profit is the key of expansion, not the customer. Those days are over when the Hotels were dominating work styles of its customers. Now, the real customers are much simpler, well traveled, work longer hours or at their own pace. This new market does not have time to accept service flaws, expect fast answers and is very demanding in all aspects of their needs.

This new market expects product features in conjunction with its work habits without perception of risk and frustrating delays. The best characteristic of today’s new market is it does not go out of a pre-set frame of buying rules.

Rule #1 Match your set of business rules with the customer’s buying rules.

I am not saying that the Hotel has to discount room rates to meet with customer’s buying rules; this would frustrate the owners and would send a wrong signal to the market. Today’s new customer is very precise when it comes to Value assessment, although the price plays a major role, but there is more in it! Systems like Corporate Classics or Preferred Loyalty programs commonly being used in Hotel Chains from Holiday Inn, Shangri-La, and Hyatt do not provide the required returns on investment; minimizing Risk of Experience is the foremost rule proven to capture market share and is guaranteed to produce profits for your operation.

My fellow hoteliers my think generic marketing campaigns bring results, these used to work when not much was available to compete with, and so as the customers had their own all time favorite “spots”.

Now this customer’s loyalty hardly exists for the conventional player.

Unfortunately, the conventional players do not realize the paradigm shift within their markets. How many of us may overlook and will not learn from our competitor when it added a video conferencing facility which moved up the several points, pushing yours down the list. Or another hotel spent thousands of dollars more on its Chef, to expand its menu selection to include Japanese specialties and now has year- round favorable business from JTB.

Perhaps till today some of us are still keeping an eye on the conventional set of business rules, rather than on their market’s changing set of buying rules.

I suggest being careful when you make your next corporate plan. Observe realistically your customer’s set of buying rules, compare with your set of value proposition then if you find the crux of both matching, transform your corporate policies and operational system through revising your standard operating procedures, tailoring each one around the chosen value proposition.

Rule # Your plan should be easy to understand at rank and file level enabling them to measure their performance by end of each day.

Don’t overwhelm management with pages of meaningless documents that some of us think would impress the reader. Statistical information driven from Business Performance Review is much important because your teams need to know where they had been, and where they should be in a specific time frame. Once the goal is set, use of a Balance Scorecard will help in setting the strategy.

Choosing the right value Proposition requires understanding of its three founding value disciplines

Customer Intimacy

Defined as Higher operating costs, higher employee per room ratio, service offered on one-to-one basis, custom made solutions to the employees and customers, each demand being met individually.

This discipline requires an upscale product and complementing service levels and offers higher returns on investment. Giving the hotel best actual revenue share with best gross operating profit, through unbelievable number of loyal customers coming back year after year, this discipline is well adopted by companies like Ritz Carlton, and also being now tried by Boutique Hotels, but resulting into lesser success in means of ROI.

Intercontinental Hotels, Crown Plaza, Hilton and several other compatible hotel brands also claim to offer value driven from Customer intimacy, but not all are successful. The reason is simple; not being able to create a solution providing � employee satisfying work environment where delegation, training and human resource development is necessary.



Product leadership

Defined as The hotel with reflection of innovative thinking, always researching and developing products, leading the market with most advanced features among all competitors. Constantly adding in-room features, state of the art guest servicing techniques, ready to obsolete and replace own innovation with a further developed product defines this discipline.

High R&D costs, with corporate management working on innovative products while the operations management is consistently offering innovative solutions exceeding the expectation of its market. This discipline also generates high profit, with less variable expenses and more fixed costs. The guests are served by highly motivated and innovative team, each team is managed by a team-leader fully trained in satisfying the queries, knows how to handle unexpected and can offer alternate solutions in no time. This discipline enables the hotel to maintain its leadership and motivate its customers to buy products on highest possible price tag. On the other hand, customer do not stay loyal to one innovation. They know that they might get an introductory flyer within next few months introducing a newly added in-room feature, and that it may enhance their next experience.

Operational Excellence

Defined as consistency in product quality and presentation. The businesses working on this principle successfully deliver the product on a firm quality standard again and again. Thus minimizing the perception of risk in customers mind and assures value. Market for such businesses expect Fast and efficient service with no frills and thrills. Radisson’s first in the market travel agent commission program was built on the same principle and did provide assurance to the travel agent of prompt commission payment, the same process was then copied by some well known GDS reservation service providers.

This means returning customers would increase; operations will have lower costs with almost negligible wastage of resources, property will have enhanced sale volume, resulting into higher revenue and market share with possibility of capturing a leading position in the marketplace.

This value discipline requires taking control of each task in the process of customer experience � right from reservation to city ledger. Businesses incorporating Operational Excellence tend to focus on elimination of human error, and if there is an error then generous compensations are offered.

Operational Excellence needs automation throughout the property, reducing the chances of human error to minimum; The Hotels which excel in this discipline ensure that all decisions right from selection of employee up to producing menu items fall through strict quality control process.

In early 70s the idea behind budget accommodations was to capitalize on operational excellence and serve the on-road salesmen traffic.

Formation of a Value Proposition

Each one of the above disciplines represents a specific market. Therefore, the first step before choosing the discipline is to choose the customer in view of your property’s profile. Then choose the discipline which will maximize ROI.

If a hotel is in formation phase or restructuring its market position, changing the value discipline can be disastrous, the management can overcome this through reinforcing financial resources and shifting the responsibilities horizontally, retraining and improving the delegation factor across the organization.

Finally, this would enable the business to lead the market, exceed customer’s expectation, with best market share.

Similar to any other service industry, value in hotel business should be measured from “customer’s perception of risk”. Lesser the risk, more the value will be.



In a conventionally managed hotel where the most negligible service flaw keeps coming back through guest feed back and the management overlooks it every time. What will happen? This will begin the cycle of revenue losses and higher costs � may be through loss of customer or most likely through discounts which your sales manager has to offer on already discounted rates to keep the client. No mater what you offer to compensate - the guest will perceive higher risk in choosing your hotel next time. And once the perception of risk goes up, it spreads out like a wild fire and in no time changes the entire market’s perception.

Every hotel wants to create a perfect model of service, not allowing the customers to leave unhappy, paying much attention to details, stressing on training and retaining “good” employees. But forgetting that in our business the product is delivered and consumed at the time of purchase, both, the employee and the customer perceives certain percentage of risk at the time of service delivery and its consumption. A well-chosen value proposition is the only key to reduce the perception of risk both internally and externally. This will minimize the chances of discrepancy between committed and delivered product quality, and create your team’s and client’s confidence in the product value.

I have worked with Hotels where marketing and sales teams were always under-pricing their own product, at times even the promotional packages were further discounted.

A well-chosen value proposition discourages conventional sales tools and techniques like under-pricing, discounting and falsely committing to services which may not be feasible to offer due to cost constraints. Instead, choosing a Value proposition and creating products around it will give your operation a balance between cost and profitability.

It will also enable the teams to make a fast, accurate and win-win decision. Whether it is a routine or a custom made solution, if it is within the parameters of chosen value proposition; it will perfectly serve your customer’s needs.

Choosing a well-defined Value Proposition and incorporating it through out the corporate culture creates this natural flexibility which enables the business to adopt the change in market trend faster then the competitor, without compromising on profits.



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Human beings generally tend to act according to sensible decisions they make in advance. But when we permit ourselves to be driven by an impulse, we act contrary to what had already been planned. Consequently, we are filled with overwhelming emotions and our state of mind is noticeably affected. This seems to be the case of the main character in “A Pair of Silk Stockings”. In the story, Mrs. Sommers underwent a profound transformation in her state of mind the afternoon she went shopping.

At the beginning of her shopping bout, Mrs. Sommers was very worried and tired. She was so concerned about her children’s needs that she was eager to spend the fifteen dollars she had found on them. As she wanted to provide them with “fresh and dainty” attire, she had to be very careful about how she intended to spend her money. Since she did not want to act hastily, she was very anxious. So she drew a up a wise investment plan for a “proper and judicious use of the money”. She thought that the most sensible way to make it more profitable was by going to bargain counters. Besides, Mrs. Sommers became rather weary. She was always so busy doing the household chores and taking care of the children that she had little time to rest. The day she went shopping, she was so excited that she had even forgotten to have lunch. When she arrived at the store, she felt so weak and fatigued that she had to rest before a counter in order to gather strength to start searching for bargains.

All of a sudden, when she came across a pair of silk stockings, she became so excited that she abandoned herself to her sudden impulses. After her first purchase, she felt so invigorated that she began to spend the money on herself, something she had not done in a long time. Besides, she bought a pair of boots that made her feel both self-assured and satisfied. She also bought a pair of gloves and two high-priced magazines. At that point, she did not care about how much she spent as long as she got what she desired. It seemed that the more she bought, the more excitement she felt. After that, she treated herself to a delicious meal at an expensive restaurant and to a play at the theatre. Besides, she was quite proud of her appearance and the effect it had on the people surrounding her. At least for a while, she felt she belonged to the well-dressed crowd and she gained a sense of self-assurance, because her presence at the restaurant as well as at the theatre “created no surprise”.




Unfortunately, when the play was over, she realized she had to face her old stark reality again. She felt unbearably sad because her dream came to and end. When she went to the bus stop to take the cable car to go back home, she yearned not to reach her destination. She wished to remain in that dreamy state that allowed her to forget, at least for an afternoon, her life full of responsibilities and restrictions. For this reason, she greatly desired the cable car to “go on and on with her forever”.

All in all, Mrs. Sommers was driven by and impulse which brought about an unexpected change in her state of mind the afternoon she went shopping. It is not unusual to find somebody who fails to control their emotions. As we are human beings with irresistible impulses, what we should do is to permit ourselves to fulfill our desires, at least every once in a while.



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opinion, however, it was the association of marijuana with blacks and Mexicans that ultimately stigmatised the drug as a violent and addictive drug for the following thirty years. As Himmelstein concludes, Because Mexican laborers and other lower class groups were identified as typical marihuana users, the drug was believed to cause the kind of anti-social behaviour associated with these groups, especially violent crime.5 It is in this period that we see the emergence of films such as Reefer Madness, which first use the dreaded term, killer-weed.

Reefer Madness (18) is an important film because it shows the blatant misrepresentation of the effects of marijuana. The story opens with an official speaking to a hall filled with concerned parents and teachers. The speaker warns of the dramatic rise, to almost epic proportions, of the deadly addictive weed, marijuana. The speaker claims that this new plague cannot be underestimated, and the effects of the killer-weed may even be more deadly than that of heroine and cocaine. This deadly narcotic is The Real Public Enemy Number One! The film portrays evil pushers who pray on unsuspecting teenagers by addicting them to marijuana. The effects are shown to be crazed dancing, violent sexual tendencies, hazardous driving, and ultimately homicidal tendencies. In the final scene, the protagonist is sentenced to death after murdering two others.

It is interesting to note that there seems to be no evidence of an increased use of marijuana by white middle-class teenagers until the mid-160s. The film warns that this happened to a community just like yours, when it certainly did not. It is my opinion that the film was made primarily to solidify the myth that marijuana was an addictive and violent drug, not to address real social problems.

Filmmakers until the late 150s were strictly bound to certain restrictions laid out in the Motion Picture Production Code. If a film did not receive approval by this group of censors, it would generally not be distributed as a general release. Seeing as any reference to narcotics, positive, or negative, was strictly forbidden, films such as Reefer Madness (18) were not readily available to the general public. It was not until 148, when H.J. Ainslinger himself was involved in an anti-narcotics film, To the Ends of the Earth, that the PCA gave its Certificate of Approval. In later years, the PCA amended its code to allow for films dealing with the use and sale of narcotics as long as these films portrayed this use in a negative light.




The film High School Confidential (158) is an interesting example of the changing signification of the dangers of marijuana consumption. The increased use of marijuana by beatniks and other fringe countertcultural groups forced filmmakers to portray the effects of the drug slightly more realistically. In this film, the protagonist, and undercover narcotics officer infiltrates an upper-class secondary school in order to break an evil drug ring. While marijuana is still portrayed as being highly addictive, it is shown more as a stepping stone to the harder drug, heroin. The protagonist says to one poor weed addict, Do I have to spell it out for you? If you flake with the weed, youll end up using the hard stuff. Perhaps it is in this period that distinctions between hard and soft drugs start to be made, and I feel that this is directly related to the fact that more and more university students began experimenting with marijuana.

Films such as I Love You Alice B. Toklas! (168) and Easy Rider (16) can be used to demonstrate the changing attitude towards drug culture during the 160s and 170s. Marijuana was commuted, as were the laws surrounding its possession, from killer weed to drop-out weed. As it became popular with middle-class white university students, its stigma was diminished greatly; so much so that it was decriminalised in eleven U.S. states. It is during this period that marijuana is portrayed openly in films as a peaceful and even enlightening natural substance.

I Love You, Alice B. Toklas is a charming comedy focusing on the mid-life crisis of the main character played by Peter Sellers. He meets a sweet flower child and is introduced to the hippie world of counterculture and pot. As Frank Thompson, in his article, Movies on Drugs, writes, marijuana is an entirely positive force in Toklas; everyone who uses it (even unwittingly Sellers aging parents) emerges more thoughtful, aware, spontaneous - freer. I was hard-pressed to find films in any of the other historical periods that portray pot in such a benevolent light. Even Cheech and Chong are shown to be at best dull-witted and slow.

Interestingly, certain significations, especially surrounding sexuality and marijuana, continued through this period. The correlation of marijuana to sexual promiscuity is best demonstrated in Russ Meyers now infamous, Beyond the Valley of the Dolls (170). In the opening scene we see the main characters smoke a joint and immediately begin having sex. Throughout the film, getting stoned is the excuse behind deviant sexual behaviour. At one point, a male character has sex with another male character simply because in his high state he could not control himself.6

The new CARA rating system, which is still in place today, demanded that any film with reference to drugs, even if presented in the most unglamourous of light, be rated R or restricted. This did not seem to deter too many directors in the 60s and 70s, however, because there are countless films from this period portraying drug use in all sorts of ways. Michael Starks writes,



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F. WHAT DOES CAPITAL STRUCTURE THEORY ATTEMPT TO DO? WHAT LESSONS CAN BE LEARNED FROM CAPITAL STRUCTURE THEORY?

ANSWER CAPITAL STRUCTURE THEORY PROVIDES SOME INSIGHTS INTO THE VALUE OF DEBT VERSUS EQUITY FINANCING. AN UNDERSTANDING OF CAPITAL STRUCTURE THEORY WILL AID A MANAGER IN FINDING HIS OR HER FIRM¡¦S OPTIMAL CAPITAL STRUCTURE.

MODERN CAPITAL STRUCTURE THEORY BEGAN IN 158, WHEN MODIGLIANI AND MILLER PROVED, UNDER A VERY RESTRICTIVE SET OF ASSUMPTIONS, INCLUDING THE ASSUMPTION OF NO TAXES, THAT A FIRM¡¦S VALUE IS UNAFFECTED BY ITS CAPITAL STRUCTURE. MM¡¦S RESULTS SUGGEST THAT IT DOESN¡¦T MATTER HOW A FIRM FINANCES ITS OPERATIONS BECAUSE CAPITAL STRUCTURE IS IRRELEVANT. DESPITE ITS UNREALISTIC ASSUMPTIONS, MM¡¦S IRRELEVANCE RESULT IS EXTREMELY IMPORTANT. BY INDICATING THE CONDITIONS UNDER WHICH CAPITAL STRUCTURE IS IRRELEVANT, MM ALSO PROVIDED US WITH SOME CLUES ABOUT WHAT IS REQUIRED FOR CAPITAL STRUCTURE TO BE RELEVANT, AND HENCE, TO AFFECT A FIRM¡¦S VALUE.

MM LATER CONSIDERED THE IMPACT OF CORPORATE TAXES. BECAUSE INTEREST PAYMENTS ARE DEDUCTIBLE FOR TAX PURPOSES, THE TOTAL CASH FLOWS TO ALL INVESTORS ARE GREATER FOR A LEVERAGED FIRM THAN AN UNLEVERAGED FIRM. EACH DOLLAR OF DEBT, D, INCREASES THE VALUE OF THE FIRM BY TcD., WHERE Tc IS THE CORPORATE TAX RATE. TcD. IS CALLED THE ¡§TAX SHIELD¡¨ OF DEBT. MM¡¦S MODEL IMPLIES THAT FIRMS SHOULD HAVE 100% DEBT FINANCING.




WHEN BANKRUPTCIES ARE CONSIDERED, THERE IS A TRADE-OFF BETWEEN THE TAX SHIELD ON DEBT AND THE LIKELIHOOD OF FINANCIAL DISTRESS. AT LOW LEVELS OF DEBT, THE TAX SHIELD ON DEBT IS GREATER THAN THE EXPECTED COSTS OF FINANCIAL DISTRESS. AT HIGH LEVELS OF DEBT, EXPECTED BANKRUPTCY COSTS EXCEED THE TAX SHIELD. THIS IMPLIES THAT THERE IS AN OPTIMAL LEVEL OF DEBT.

SIGNALING THEORY RECOGNIZES THAT MANAGERS HAVE BETTER INFORMATION THAN INVESTORS. THIS IMPLIES THAT MANAGERS WOULD SELL STOCK WHEN THE PRICE OF THE STOCK IS GREATER THAN ITS TRUE VALUE. INVESTORS KNOW THIS, AND SO STOCK PRICE SHOULD FALL WHEN COMPANIES ISSUE DEBT.

AGENCY COSTS ARE PRESENT WHEN MANAGERS WASTE FREE CASH FLOW ON PERQUISITES OR NEGATIVE NPV PROJECTS. HIGH LEVELS OF DEBT ¡§BOND¡¨ THE FREE CASH FLOW, SINCE MUCH OF THE FREE CASH FLOW MUST BE COMMITTED TO SERVICING THE DEBT. THIS PREVENTS MANAGERS FROM WASTING FREE CASH FLOW, AND SO HIGH LEVELS OF DEBT SHOULD REDUCE AGENCY COSTS.



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I’ve had a natural artistic ability for my entire life and I’ve been hearing praise for it since I was old enough to put a crayon to paper. I have the ability to copy a photograph nearly identically and create at least a very good likeness with a paintbrush. This is a talent which had been one of the few things that I liked about myself, it’s helped me threw bad times and will continue to serve me throughout my life.

Since I was very young, all the way back to preschool, I felt an immense and inescapable rejection from my peers. It seems now that it was so bad I would like to call it schizophrenia, a chuckle or mumbled word from anyone would cause my mind to weave fantastic plots against me by whoever uttered the sound. The only way I could seem to get any positive attention from anyone was to draw, so draw I did. I drew things I knew I could get praise for; dogs, cartoon characters, unicorns, dragons and anything else that may have been assigned in art class. Being that my art seemed to be the only thing about me that anyone liked, I worked on it quite a bit, and got pretty good at it. In the sixth grade I was introduced to a new kind of drawing, I’d always drawn from imagination but found that this new technique - still life - held the possibility for detail I could never imagine.

Being that I had always drawn from my own mind, still life was an entirely new concept for me but I found I had a knack for it. By this time art was becoming less of a way to be accepted and more of something that I like about myself, I didn’t care what anyone thought of what I drew, I enjoyed seeing just how exactly I could copy what I saw. It became fun, and it’s a characteristic of me like is my hair or my eye color.

Now my art is a part of me, it’s something I cherish about myself and I want it to be what I am known for; I want my name to bring to a persons mind, ‘artist’. Now that I am in college, it’s become obvious to me that my art is even something I could live off of. There are a million different kinds of jobs that involve the visual arts and although I have no idea what I will do later in life, I will continue to create beautiful images of paint, pencil, and ink.






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Prior to discussing boundary spanning it is useful to develop a common understanding of the terminology of boundary spanning activities. Unless noted otherwise, the usage is based on the book, Organizations Rational, Natural, and Open Systems (Scott, 00). Scott’s approach to organizational theory attempts to integrate three systemic perspectives on organizational theory. He refers to these perspectives as rational, natural, and open systems.

The rational perspective is a focus on the normative structure of the organization. It stresses formal rules, organization, and roles as they relate to formally defined and developed organizational goals and objectives. Scott identifies four basic schools of rational thought

• Taylor’s scientific management � Taylor was primarily concerned with the management of plants and production lines. His primary interests were in developing time and motion studies to improve productivity and efficiency. Taylor emphasized the worker in his measurement of productivity and efficiency.

• Fayol’s administrative theory � Fayol’s theories developed at the same time as scientific management was emerging. However, Fayol emphasized management functions by attempting to articulate broad administrative principles that could lead to the rationalization of organizations.




• Weber’s bureaucracy theory � Weber concentrates on roles directed by explicit rules impersonally applied. Staffed by full-time and lifetime professionals, they do not in any sense own the means of administration, their jobs, or the sources of their funds. These professionals live off a salary and not from income derived directly from the performance of their job.

• Simon’s administrative theory � Simon focuses on the decisions people make as they participate in the organization and the manner by which those decisions are supported by the organization.

Scott identifies natural systems as collectives of social groups attempting to survive and adapt in their particular circumstances. The natural systems perspective is driven by underlying formal and informal social structures. Behavior in formal organizations is orderly and is comprised of communications networks, status and power systems, and contractual arrangements. The three major natural systems schools are

• Barnard’s cooperative systems theory � In this theoretical approach, organizational participants engage in cooperation and act to integrate the contributions of other members of the organization.

• Selznick’s institutional approach � Individuals in an organization are part of an integral whole consisting of an inter-linked network of participants and individuals external to the official boundaries.

• Parson’s AGIL acronym � This is an acronym for the needs that a system must satisfy to survive

o A � Adaptation The acquisition and disposal of sufficient resources to ensure survival

o G � Goal attainment Establishing, managing and attaining goals

o I � Integration Coordinating the actions and resources of the organizational collective.

o L � Latency Creating, preserving and transmitting the organizations unique identity.

Open systems refers to the reciprocal and symbiotic relationship between an organization and its environment. In the open systems perspective the environment provides resources, information, and vitality to the organization. This perspective is similar to an organic or ecological perspective. Units within the organization have pre-programmed interactions with the organization or the environment in the same manner that organs in a biological organism interact with the organism as a whole (e.g., the heart pumps blood, the exchange of blood nourishes the body, etc.). There are three archetypes of reciprocal and symbiotic relationships within the environment. They are tightly or loosely coupled, rigid or flexible and self-regulating or pre-determined. The three major open systems schools are

• Systems design � Complex systems are modeled by analyzing process flow, resource transformation, and exchanges of resources with the environment (inputs and outputs).

• Contingency theory � Organizations adopt the structures, flows, and resource exchanges that best suit their adaptation to their relevant environment.

• Organizing theory � Organizations attempt to develop a gestalt (a holistic view) of their environment, adapt that view, and retain the viewpoint that is most useful.

Given Scot’s general framework for organizational theory, we can now turn to a discussion of the terminology that is key to our discussion of boundary spanning in organizational environments undergoing technological change

• Organizational boundary � An organizational boundary is “… the bounds of a social network … and a normative order and cultural framework applicable to the participants linked by the network” (Scott, 00, page 186). Boundaries can be approached from the vantage point of the actors within the social collective (realist approach) or the analyst viewing the boundary can impose a boundary structure (nominalist approach).

• Buffering � At the organizational boundary, organizations attempt to protect key skills, task resources, and core technologies from environmental influences.

• Bridging � Bridging is a boundary spanning technique that seeks to control the relative power and influence of the organization relative to its environment and trading partners.

• Technology � The methods that organizations use to accomplish tasks



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