Management - Compensation Methods Essay Example | Topics and Well Written Essays - 750 words

Management - Compensation Methods - Essay Example In this paper, we will discuss some major compensation methods/employee benefit programs, which a company can use to improve employee performance. Types of Compensation According to Menguc and Barker (2003), use of compensation plans influences all dimensions of organizational performance. Companies use different types of compensations to increase employee motivation. Some major types of compensation include bonuses, free meals, housing allowance, health insurance, company car, travel allowance, free patrol, promotion based on performance base pay, overtime pay, and commissions. In some companies, the compensations like bonuses and commissions are associated with the job responsibilities of the employees. Some jobs are of very difficult nature, so the companies put some rewards for the people associated with those jobs in form of bonuses in order to encourage them and make them dedicated to their jobs. Companies categorize different types of compensations into short-term and long-ter m programs. Mazin and Smith (2004) asserts, â€Å"Short-term programs are usually based on cash payments, while long-term incentives typically involve stock† (p.113). Short-term rewards include cash and stock bonuses, which a company gives to the employees when they achieve short-term goals, such as, increase in the company’s revenue. ... The basic purpose of short-term compensation programs is to increase employees’ performance and productivity over a specific time. Long-term rewards, on the other hand, are such rewards that a company gives to its employees when they increase the company stock’s value in the market. The stock value increases when a company maintains its product standard and quality for a long time. Good quality of products generates higher levels of productivity and revenues, which result in increasing the stock value of the company. Companies reserve long-term rewards usually for the employees who are at managerial posts. Calvin (2001, p.119) asserts, â€Å"In established firms, long-term incentives, such as stock options, are reserved for senior salespeople, national account managers, and sales managers†. Commissions and bonuses are two of the most useful types of compensations because they attract a large number of employees towards the companies, which offers such compensatio ns to the employees. Commission is a form of compensation that a company gives to its employees on achieving some targets. Commissions and bonuses play a key role in retaining talented and skilled employees for a company. Increase in salaries is also one of the most effective ways to retain key employees of a company. Employees do not want to leave the job when their companies reward them in terms of increase in their salaries. Compensation programs not only make employees work hard to achieve the incentives but also make the company achieve higher levels of profitability and productivity. Apart from increase in salaries, some other types of rewards also play a good role in increasing employee motivation. These rewards include foreign trip of

Small Business Management Essay Example | Topics and Well Written Essays - 750 words - 1

Small Business Management - Essay Example Virtual Transport is a small business which offers transporting and haulage services and functions with a staff of eight employees and the entrepreneur. Having undergone a financial crisis during its first year of inception, the company has just managed to turn around the company. However the business had to seek additional funding support from its bankers and have given them an undertaking to provide financial information to keep them informed of the progress the business is making. The following proposal of management and monitoring strategy for Virtual Transport which takes in to account the information requirements of various business stakeholders such as the government authorities to meet the statutory requirements; the bankers; business accountants as well as the internal staff and the entrepreneur himself. The strategy takes in to account the need for regular monitoring of business performance in order to assess the actual performance against the initial business plan, through calculation of performance ratios, variance analysis etc. The information required in filing the quarterly tax returns, and annual profitability statements to meet the legal requirements are born in mind. Capturing of all income and expense data on a daily basis to facilitate the business accountant in drawing up the monthly accounts has been a key consideration is developing the information strategy and the proposed information systems. In addition the role which information sharin g plays in building and maintaining employee moral and commitment has also been considered. The information requirements have been identified under main categories of Legal & Taxation Requirements; Internal Business Management; Financial Administration and Financial Monitoring. The information will be in the form of quarterly and annual profit and loss statements; Business Activity

Retail Bank's Marketing Case Study Example | Topics and Well Written Essays - 2000 words

Retail Bank's Marketing - Case Study Example Pricing is a very integral part of marketing. Decisions about price are those which determine profitability (Stephenson, 2005). It is also one of the factors which determine whether the customer will actually acquire the product or service. Customers base their purchase judgments based on price (Stephenson, 2005). Pricing of the financial products is one of the most crucial decisions. Some of the most common pricing strategies used by the marketers include both cost-based strategies and non- cost based strategies (Winston, 1986). Ethics are moral principles and values that govern the actions and decisions of an individual or group. These serve as guidelines as to what is the fair and right thing to do. Customers have the right to be informed, and it is the marketers' responsibility to ensure they are providing customers accurate and complete information about their products and services, i.e. they should disclose complete costs associated with financial services, but this is not always practiced(Kerin, Hartley & Rudelius, 2003). Social responsibility is an important part of the marketing concept of any organization in any given industry. This is especially important for financial institutions since they serve the public. They need to not only focus on profits but also on the society as a whole. At times it is possible for a company to satisfy its customers yet fail to meet social responsibility. Despite the fact that banks and other financial institutions play a active role in the society, they still manage to conduct practices that abuse the environment discriminate in hiring employees, manufacturing unsafe products or engaging in misleading advertising or labeling. At times these organizations are still focuses on meeting their goals rather than meeting customer needs (Pezzullo, 1998). In the article 'Interest rate clustering in the UK financial services market' (2008), Ashton and Hudson explain through empirical evidence the price and interest rate clustering practices used by retail banks. In their study they explain how financial services marketers capitalize on the difficulties customers face in recalling and processing price information. They do this to maximize their revenue from deposits made by customers. Ashton and Hudson (2008) explain that price and interest rate clustering occur as a result of an individual's limited number recall.

Pros and Cons of Tariffs

Pros and Cons of Tariffs Definition of Tariffs Tariff are custom assessments that are demanded on imported merchandise. The duty is generally connected as a rate of the aggregate expense of the item, including cargo and protection. This raises the cost of the import and gives leverage to household items inside of that market. Tariffs are a hindrance to exchange and are utilized to secure a residential industry. Tariffs are otherwise called traditions or import obligations, or import charges. Averagely, tariffs are for the most part around 5%. Be that as it may, diverse nations charge distinctive tariff rates relying upon what item they are attempting to secure. They will likewise charge deals charges, and different neighborhood assessments, and even extra traditions expenses. The greater part of this is gathered at the season of traditions leeway. Amid the developmental years of the United States, tariffs were essential to the development of the economy. By forcing tariff on imports, the United States had the capacity ensure its youngster assembling industry and energize extension in different segments. The tariffs raised the cost of less expensive remote products, particularly those fabricated in England, and urged buyers to buy household merchandise. This protectionist arrangement was instrumental in the improvement of the United States as a mechanical nation. Until the start of the twentieth century, tariffs were an imperative method for raising government income. The United States government gathers tariffs on imports; on the other hand, it doesn't gather tariff on fares, as this practice is denied by the U.S. Constitution. Tariff for the most part have both an income impact and a defensive impact, yet a few tariffs are for income just. These are tariffs that are gathered on imported items that are not created in the importing nation. Tariffs whose essential capacity is to ensure one or more household commercial enterprises in the importing nation by raising the cost of imported items that are the same as those delivered locally create government income and having a defensive impact. On the off chance that tariffs turn out to be exorbitantly high, they can shorten all importation of an item and in this way lose their income raising impact. Tariffs are registered in three unique ways. A levy may be notice valorem, particular, or a blend of promotion valorem and particular. A notice valorem duty forces an assessment equivalent to a rate of the offering cost of the import. A duty that is particular forces an altered or set measure of assessment on every unit of the foreign made item sold without respect to the offering cost. A levy might likewise be a mix duty that forces both a promotion valorem expense and a particular assessment on a foreign item. Pros Most business analysts concur that facilitated commerce is the most ideal approach to boost a nation's development potential, however chose authorities may have different objectives as a top priority. Tariffs shield particular businesses from remote rivalry, which can meet vital objectives or political targets. Whether its local needs or remote approach objectives, exchange protectionism can be enticing for policymakers. Tariffs can shield infant commercial ventures from worldwide rivalry, permitting them to develop without the risk of being snuffed out by more develop or progressed remote organizations. They can likewise be utilized to ensure zones that nations consider to be deliberately critical. For instance, a nation may limit farming imports to support its own particular ranchers, not having any desire to place itself in a powerless position where it needs to import all its sustenance. Steel assembling and substantial industry additionally can be the recipients of tariffs, as pioneers hope to keep their capacities primed and ready if there should arise an occurrence of vital need. At the point when the US government decides to place a levy on a foreign decent, the maker can decide to lessen their cost to make up for the tariff or to go on the expense to the buyer. At the point when makers decide to go on the expense to American customers by expanding their value, it advances American items. In the event that American organizations are creating a comparable item at a comparative value point, the outside item turns out to be more extravagant. Thusly, customers decide on the less costly alternative and buy the American item, giving American organizations an unmistakable point of preference. At the point when commercial enterprises are secured, the occupations that accompany them additionally are ensured. While financial analysts contend that this keeps laborers from taking occupations that are more advantageous to themselves and the nation, concentrating work and capital in wasteful commercial enterprises, which is little solace to specialists in an auto organization that goes under on the grounds that it can't rival lower-cost remote adversaries. Ensuring occupations can be much to a greater degree an objective for state and nearby governments that face losing their assessment base when a major manager shuts its entryways. Infrequently, tariffs can advantage an economy by guaranteeing its organizations have a notwithstanding playing field. Case in point, a few tariffs are executed as a component of against dumping laws, as a response when an organization based abroad offers items beneath its expenses or underneath what it offers them for short of what it does at home, with an end goal to take out opponents and construct its position in the business sector so as to charge higher costs later. Others are intended to ensure when the opposition isn't square with. In the event that one nation finances its vehicle industry and another does not, a duty can keep that error from unjustifiably affecting a household industry. Authorities can likewise utilize tariffs and quantities to meet outside strategy targets, whether they're being utilized as a carrot or a stick. Exchange authorizes regularly are utilized as a stage shy of equipped clash as an endeavor to stop undesirable conduct from different nations. In the event that a nation relies on upon grain sends out or outside automobile deals as a key driver of its economy, the risk of tariff or assents can be an in number prevention. Likewise, uprooting existing exchange hindrances can help cover up a precarious transaction with outside pioneers. Cons A standout amongst the most talked about issues in worldwide exchange is protectionism. On one hand, countries accept a certain sum is important to protect employments and domestic businesses. On the other, protectionism may welcome countering from exchanging accomplices, foster extra protectionism and result in squares to unhindered commerce. Two generally utilized protectionist devices are tariffs and portions. Tariffs raise the cost of imports. This effects customers in the nation applying the tariff as costlier imports. At the point when exchanging accomplices strike back with their own particular tariff, it raises the expense of working together for sending out commercial enterprises. Some examiner accept that tariffs cause a reduction in item quality. Organizations search for approaches to slice generation expenses to record for tariffs. Tariffs are more straightforward and less demanding to regulate than standards. This makes it less demanding for exchanging accomplices to bring them down or dispense with them. Tariffs may make nearby commercial enterprises less productive because of diminished worldwide rivalry. They might likewise prompt exchange wars as trading nations counter with their own tariffs on imported items. At the point when exchanging partners respond with their own tariffs, it raises the expense of working together for exporters. This circumstance might likewise trade off the nature of merchandise and administrations as businesses search for approaches to cut generation costs. A duty alludes to an assessment forced on items and administrations. Tariffs are utilized to control exchange, on the grounds that they expand the cost of imported items, making them more extravagant to the end buyers. A particular expense is forced as a settled toll taking into account the item. Furthermore, a commercial valorem tariff is forced in light of item's quality. The target behind tariffs is to reduction interest for imports while expanding interest for household items. Governments might likewise force tariffs to shield nearby commercial enterprises from outside rivalry, on the grounds that buyers generally pick imported items or administrations when they are less expensive. Tariff give extra wellsprings of pay to the forcing nation to the detriment of customers and remote makers. Singular purchaser decision stays as one of the best shopper advantages to worldwide exchange. At the point when tariffs are put on imported merchandise, the expanded costs and lessened exchange preclude people from all decisions that could be accessible in the business sector. If American organizations don't deliver an item like the foreign made great, customers may be ransacked of the chance to buy an item out and out on the grounds that they pushed a remote item out of the business with a levy. Conclusion Tariffs are by and large used to shield household makers from abroad rivalry offering less expensive products. The higher costs of imported products because of tariffs regularly causes outside makers to choose to withdraw from the household business, diminishing rivalry. This absence of rivalry expels the motivating force from local makers to discover approaches to bring down the costs of their products, bringing about higher general costs for customers, and also an absence of development that rival frequently causes. Tariffs additionally have a negative effect on the exchange equalization with nations against which they are utilized. Remote countries frequently force their own particular tariffs because of local tariffs, raising the costs of traded divine beings, which causes less interest for those products abroad. This, thus, brings about a loss of benefits for residential makers who send out merchandise, and also a loss of conceivable employments on the local front in light of the fact that makers must lower creation or withdraw from the fare advertise inside and out.

Development Broadcasting in India and Beyond

In this journal, Fursich sets out by decrying the effect of commercial satellite television in many Asian countries whose media was state run. This, he says, leaves the old-hand broadcasters with only one way of survival: reassess their role in the newly competitive market. Fursich has a valid point here; the old broadcasters have to re-invent themselves in the ever dynamic market landscape lest they remain irrelevant (Johnson, 54). As we are left to think of the reassessment of the new market’s needs, the issue of globalization of commercial media should be centermost.The Indian context used by Fursich to advance his argument does not out rightly discredit his point because of the premise that many a researcher have researched on Indian media with reference to the topic. However there are disparities in the measure of response to media commercialization in different third world countries (Eko, 67). To use the Indian broadcaster Doordarshan (DD) as a microcosm of all the third world media is to overlook some vital components of a totalitarian research.In fact, it makes his expose’ much of India and less of â€Å"and Beyond†, an aspect which could have been avoided if Fursich could quote the media situation in some other third world nations. The severe pressure that Fursich says has faced DD in the new satellite and cable channels’ era awaits most of those other â€Å"traditional channels†-those that were there before the advent of commercial satellite television (Hamelink, 174). This is because the media was government owned, and the basic purpose was to educate the masses making the need for financing an n entertainment channel veer off the reason for its establishment.Even as the general policy of these state-owned channels change, to borrow from the Doordashan’s case, the issue of tailing and not leading arises as he aptly states. Most state-owned media across the third world form poor matches to the numerous private ly owned commercial channels; one is because their content is more dynamic and the channels are many. The mention of the Television’s historical development since 1950’s serves as a base for understanding the notion of broadcasting as a tool for national development, a concept that still rules in most African media settings (Eko 179).This tool for national development is what later turned to be a political tool. The argument here fits into the reality very well as stated by Cambridge (151) that the state owned and funded media were overly dependent on western programming and furthered the interests of the political elites while at the same time limiting the forms of expression and national identity development. The present situation, thanks to commercialization of the media has greatly increased the use of communication as part of international trade agreements and not political initiatives (Hamelink 172).The negotiations in international trade have also enhanced priva tization of communication infrastructure a point mentioned by Fursich in his article. The state funding, its abuse by political elite and the widening global marketing can be said to have liberated the media. This follows from Hamelink’s argument (Hamelink 172) above that international trade agreements and not political initiatives improved communication. The end result as Fursich states was that the state-owned broadcasters had to adjust to what he calls a mixed economic model that encompassed advertising and reducing state subsidies.The new commercial media environment, he adds, led to among others proliferation of shows stations and formats with advertising focused on the haves, neglecting the have-nots. I could not agree more with Fursich on this point primarily because ,brought down by the heavy financial needs so as to achieve its national goals, the national broadcaster of any country will use all means possible to hang onto the issues in its blue print. When faced by imminent downfall, what did Doordarshan do? This question could as well apply to any other state-owned broadcaster in the third world.DD however had an upper hand as its basic foundation on development mandate and though tailored for this purpose, it positioned itself as not only local but also international competitor to the channels that offered a range of programs. From this information, the issue of ambition can be seen, raising question whether the aims of a given broadcaster can be realized if it crosses the geographical boundary of a third world nation and still aim to satisfy the locals and the ever competitive international market (Johnson, 2000).The same rhetorical can be inferred from Fursich’s article. India’s effort in making its broadcast center on programming and technological innovations that dealt with agricultural education and nation building is worth appraisal unlike, as Fursich says, the other post-colonial countries’ mixed programming strat egy that imported former colonial masters’ programs. This allowed the educational aim of the media to be realized as the citizenry were given lessons on what locally faced them and thus doing away with the surrealistic mixed genres of other post colonial nations.The state funding of the DD, which was increased (Kumar, 20) thereby enabling promotion of state initiatives and later assisted in the setting of additional centers other than New Delhi. This is worth borrowing especially by the third world nations whose state-owned media stations are at the verge of collapse due to inadequate financing. The focus on the primary goals of a state-owned media can be kept at the same time introduce entertainment programs that were not initially planned for. This can be seen in the case of DD which housed two operas in 1980’s (Fursich, 378) that had been slotted in by the broadcaster in its bid to go commercial.The themes of the opera the Hum Log was family planning, and women educ ation ,topics that cannot be said to be just for entertaining households but also educating them. The point here is that programs can be chosen so as to work in a two-pronged way, entertain the citizenry and educate them (Kumar 30). The coming into the Indian market by such private broadcasters as CNN and MTV can serve as an eye opener to the state-owned media in the third world into the insight of collaborative business contracts which will ultimately rid them of any financial problems that may result due to the state’s inability to fund them fully.The localized transmittance of certain programs that appeal to the locals as in the case of India can greatly improve the markets of upcoming economies. The locals will be paying for the programs they like most and in return the state will easily achieve its goals. This is a noble initiative by the Indian broadcaster that should be adopted by the other third world nations. In this case, such issues as cultural conservation can eas ily be achieved because the localized transmittance serves persons with more or less the same cultural orientations.Some worries may creep into the state-owned broadcaster because while is strives to accomplish its missions, the state has a stake in what should really reach the citizenry thus making these state-owned media to lack autonomy. Having looked at various aspects of the Indian broadcaster and what challenges it has faced, I can postulate that the same challenges can befall any state-owned broadcaster in the third world. The choice of India a representation of all the third world countries without an attempt of a comparative approach cannot discredit the immense and valuable information by Fursich’s article.

Sample of Document

Entity:| Vietcombank| | Period ended:| 31/12/2012| Significant class of transactions/significant disclosure process name:| Credit origination – Transaction processing| | Significant class of transactions/ significant disclosure process owner:| Credit Policty at HODebt management division Client Division | |We obtain an understanding of the significant classes of transactions (SCOTs) and significant disclosure processes to identify and understand the risks of material misstatement at the assertion level (i. e. , what can go wrongs (WCGWs)) and, when applicable, to identify and understand the controls over the WCGWs. This template assists with completing S03 Understand significant classes of transactions and significant disclosure processes. Significant accounts affected and key business and financial statement risks related to these accounts: * Loan Acc * Interest Acc * Provision Acc * Expense Acc * Receivable Acc| Relevant assertions: * Valuation * Completeness * Right and Obl igation * Presentation and Disclosure * Existence | Nature of the SCOT (routine, non-routine, estimation): * Routine| Starting point (initiation) and timing of initiation and recording of the SCOT or significant disclosure process: * Customer’s application| Specific circumstances affecting the form and extent of the documentation: * None| Name of the IT application that supports the SCOT * | Inputs/outputs of the critical path of significant class of transactions/significant disclosure process| Inputs/outputs of the supporting IT application| Inputs: * | Inputs: * | Outputs: * | Outputs: * |Critical path (initiating, recording, processing, reporting, correcting incorrect information) We obtain an understanding of the SCOTs and the significant disclosure processes by obtaining an understanding of their critical path. The critical path includes: * Initiation: the point where the transaction first enters the entity’s process and is prepared and submitted for recording * R ecording: the point where the transaction is first recorded in the books and records of the entity * Processing: any changes, manipulation or transfers of the data in the books and records of the entity * Reporting: the point where the transaction is reported (i. e. posted) in the general ledger. When we obtain an understanding of the critical path, we obtain an understanding of how incorrectly processed information is detected and corrected on a timely basis. We also obtain an understanding of how transactions are accumulated and posted from the sub ledger to the general ledger, including controls over associated journal entries. We obtain an understanding of the policies and procedures in place that management uses to determine that directives are carried out and applied, including: * Authorization * Segregation of incompatible duties * Safeguarding of assets * Information processing * Performance reviewsWe use our understanding of the critical path and the policies and procedures to identify WCGWs and, when applicable, relevant controls. In the course of acquiring an understanding of the processing procedures, we frequently learn of many of the controls in use. Thus, while the emphasis at this point is not to identify the presence or absence of controls, we are alert to the possible absence of controls, and to the points at which errors could occur and controls are needed. We consider the effect IT has on the SCOTs and the significant disclosure processes. The manner in which we document our understanding of the SCOT or significant disclosure process is left to professional judgment of the engagement executives.However, for critical paths related to routine transactions, a graphical depiction of the flow (e. g. , flowchart), supported with narrative notes (e. g. , use of this template) normally provides for easier identification of the types of errors that can occur. No. | Describe the critical path for the significant class of transactions/significant disc losure process| Describe the automated aspects of the significant class of transactions/significant disclosure process, including: * Manual aspects that depend upon computer functionality or computer generated data * IT applications/infrastructure| 1 | Credit appraisal and granting proposal 1. 1. Loan application:For both HO and Branches, Credit Dept. s organised into 3 divisions:- Client and Project Investment (optional): responsible for receiving and appraising loan request, monitoring and finalizing/ liquidating the loan. – Debt Management: mainly responsible for storing credit contract and other supporting documents as well as updating required information into system; work with Client Division in monitoring the loan. And two Risk Management division : involved in credit approving process in terms of risk assessment. One is under HO and one is based on Ho Chi Minh CityFirstly, Client/ Project Investment officer receives client’s Loan Application and supporting docu ments – which are clearly stated in Article 14 – Decision 228/NHNT. HTQT: Lending Regulations1. 2.Loan appraisal: * Secondly, Based on documents obtained and the present credit regulations, Client/ Project Investment officer appraises client’s application under the following aspects: * Suitability (in relation to approved Credit limit, related regulations and current risk management policies of the bank) * Feasibility, efficiency and level of risk (if exist) related to client’s business plan * Solvency * Collaterals: Client officer who receives and appraises loan request also responsible for monitoring and appraising collateral. Deliverable of the officer at this stage is Collateral Appraisal Report (Form BD 1. 1. v002), including signature of client officer-in-charge and Head of Client Division.Regarding valuation, branches except for compulsory circumstances, are encouraged to cooperate with Independent Appraisal Firms (selected within the list of allow able firms, attached with Document 946/VCB. CSTD – Appendix 01). In case collateral is valued by VCB, Valuation Memo (Form 2. 2: Bien Ban Dinh Gia) must be prepared with signature of client and bank representative, under Decision 30/ VCB. CSTD. For collateral of over 20 billion VND, branch must send to HO the appraisal documents by Appraisal firm and Appraisal/ Periodic Revelation Report (Form BD 1. 2. v002), within 2 days since the reports are given their approving authority. | Manual | | * Next, Client/ Project Investment officer prepares and signs Report of Credit appraisal and granting proposal (Bao cao th? m d? h va D? xu? t c? p TD), following Form 1. 4A, 1. 4B and 1. 5. * The Report is then submitted to Head of Client/ Project Investment Division (TP KH) for revising and signing in case the deliverables of Client/ Project Investment officer are accepted. Otherwise, he/she needs to document reasons as well as additional opinions * Credit/ Project Investment officer then prepares submission documents. a) For clients granted Credit limit, Client officer submits to Branch’s Director/ Vice Director or Client Director (GD KH) for HO clients. b) For clients granted Credit limit but required by Credit limit approving authority (C? p th? m quy? n phe duy? ) to seek for higher authority’s approval when granting the loan, Client officer submits to both Branch’s Director/ Vice Director and the authority which is stated in Announcement of Credit limit Approval (Thong bao phe duy? t GHTD). If the higher authority is Local Credit Committee (HDTD co s? ), there is no need to submit to Branch’s Director/ Vice Director. c) For clients not yet granted or beyond Credit limit, Project Investment loan is issued. – Branch-based client: Client/ Project Investment officer submits to Local Credit Committee’s Director to organise meeting based on its Regulation on Operations. – HO-based client: Client/ Project Investment off icer submits to authorised Client Director. For the credit limits beyond authority of Client Director, submission is sent directly to HO’s Credit Risk Management Division for subsequent steps. Submission documents include: * Client’s Loan Request (original) * Report on Credit/ Project investment appraisal and granting proposal (original) * Credit Scoring and Rating Table (original) * Legal documents for new customers * Financial statements * Other relevant documents (if available)| | 2. | Loan approvalBased on Report of Credit appraisal and granting proposal, signed by Client officer and Head of Client Division together with supporting documents, the following parties in accordance with their specific authority will start the approving process:2. 1. Branch’s Director/ Vice Director * In case credit granted within Credit limit, Branch’s Director/ Vice Director approves the credit grant based on Report of Credit appraisal and granting proposal signed by Cli ent/ Project Investment officer and Branch’s Director/ Vice Director, as well as accompanying submission documents. In case credit is granted within Credit limit but required by Credit limit approving authority to seek for higher authority’s approval when granting the loan, Client officer submits to both Branch’s Director/ Vice Director and the required authority (If the higher authority is Local Credit Committee (HDTD co s? ), there is no need to submit to Branch’s Director/ Vice Director). 2. 2. Local Credit Committee * Following its Regulations on Organisation and Operations, Local Credit Committee’s Director organises meeting based on submission documents prepared by Client/ Project investment officer. This Committee includes Branch’s director, Vice director and head of Client, Investment project and Debt management division. Local Credit Committee approves credit grants which fall within its authority. Otherwise, based on acceptance opi nion of Local Credit Committee, submission documents are then sent to Risk Management Division by client officer for subsequent steps. * For branches under the processing range of HCM-based Risk Management Division, Client officer submits set of Loan Proposal documents directly to HO’s Risk Management Division and 1 copy of Loan Proposal Form (Form 3. 2) to HCM-based Division in case of beyond its authority. * Branch’s set of documents include: * The original Request for Loan approval Form 3. 2 (T? trinh d? ngh? phe duy? t tin d? ng/DTDA) signed by Local Credit Committee’s Director. A copy of Local Credit Committee’s Meeting minutes * Submission documents to Local Credit Committee| Manual| | 2. 3. Risk Management Division * Based on set of Loan Proposal documents from the Branch, Risk officer evaluates credit risks and prepare Credit Risk Assessment Report (Bao cao ra soat r? i ro c? p tin d? ng) using Form 2. 3A/2. 3B/2. 4 * The report is then signed by Risk officer before being submitted to at least 2 controllers of Risk Management Division, who later provides their approval plus signature. * Afterwards, Risk officer prepares and signs off every page of Announcement of Credit/ Project Investment Approval( Thong bao phe duy? t c? p tin d? ng/DTDA) Form 4. , before: * submitting to Head of Risk Management Division and Risk Management Director for signature; * sending an original to the proposing Branch; a copy to General Director as well as relevant Branches. 2. 5. HO-based clients/ projects within Client Director’s approving authorityCredit proposals under this case are only considered ‘approved’ when the Report of Credit appraisal and granting proposal is signed and given acceptance opinion by Client Director. Accordingly, Client/ Project investment officer prepares (Thong bao tac nghi? p) and transfers documents to HO Debt Management Division for storage, system entering and other subsequent steps. 2. 6.Risk M anagement Director and Client DirectorUnder this circumstance, Risk officer duplicates the steps within the approving authority of Risk Management Director as stated above. The proposal is only considered ‘approved’ when obtaining signature of both, except for either of them is absent. | | | 2. 7. Central Credit Committee * Central Credit Committee bases on Credit Risk Assessment Report (signed by at least 2 controllers of Risk Management Division) and Branch’s document set (original) prepared by Risk officer to call a meeting. * According to Meeting minutes, Risk Management Division prepares and signs off every page of Announcement of Credit/ Project Investment Approval (Form 4. 2) before submitting Director Central Credit Committee for signature. Then submit to: * Client Division at HO an original for subsequent steps * relevant Branches 01 copy * HCM-based Division a copy in case of approving the proposal of branches under its authority. 2. 8. Board of Directo rs * Under this circumstance, after being approved by Central Credit Committee, Risk Management Division prepares submission documents in accordance with Regulation of Loan grants under approving authority of BOD. * Risk Management Division then prepares Approval Announcement and sends documents in such a way as cases under Central Credit Committee’s authority; in which, documents to Debt Management Division must include Loan Approval Form by BOD. | | 3. | Making loan contract and collateral contractBased on approving results, Client officer continues to seek signature for loan and collateral contract. 3. 1.Loan contract/Collateral contract * Client/ Project Investment Division signs off (ky t? t) every page of loan contract/collateral contract and send to client for confirmation. After signing off by Client and Bank ‘s representer, Loan contract was sent to Accounting division and Debt management Division. collateral contract was sent to Storage division * If any disag reement arises, Client/ Project Investment officer must report to Head of Division. If necessary to amend content or approval conditions, Client/ Project Investment Division issues Form 1. 6: Report on Appraising and Proposing Credit Adjustment, submit to authorised bank representatives for approval. After obtaining client’s signature and original of collateral contracts, Client/ Project Investment Division register collateral transactions. * Client/ Project Investment officer prepares 02 (Thong bao tac nghi? p m? HDTD), sign off and submit to Head of Division for signature, before sending to Debt Management Division (relevant documents included) for storage and entering into system. * In case clients do not have CIF yet, Client Division prepares Thong bao tac nghiep mo so CIF (Form 5. 8) then sends to Transaction Accounting dept. to open new CIF. | Manual| 4. | Putting data into system and managing credit file * After signing loan contract, Client officer prepare and sign on â€Å"Thong bao tac nghiep m? h? p d? ng tin d? g† containing all information needed to put into system, conditions to disburse, a list of documents needed to store and special conditions needed to manage the loan. After that, debt management officer recheck and sign on â€Å"Thong bao tac nghiep†. * Basing on â€Å"Thong bao tac nghiep†, Debt Management officer is responsible for putting data into system. However, only when it is approved online by head/vice of debt management Division, will client data be disclosed on system. Debt Management officer stores all the documents listed on â€Å"thong bao tac nghiep†| IT Dependent| 5. | Disbursement of loanThe disbursement of loan involves the following steps which depend on the appointed approving authority.However, all of the appointed divisions are held responsible for checking the conformity of client’s withdrawal documents with credit contract. 5. 1. Client/ Project Investment DivisionIf withdraw al request is valid, Client officer prepares â€Å"Thong bao tac nghiep du dieu kien rut von† (Form 5. 4), signs off and submits to Division Head for signature before transferring documents to Debt Management officer for disbursement. 5. 2. Debt Management DivisionThe division directly receives withdrawal request from client and perform checking procedures. Client is required to amend information if found unsuitable. Otherwise, Debt Management officer starts disbursing the loan. 5. 3.Client/ Project Investment Division receiving request, Debt Management Division performing checking proceduresWithdrawal documents after being received and checked by Client officer, Debt Management officer takes over for disbursement, based on Credit Approval Announcement and Credit contract. If documents are found invalid, they are sent back to Client Division for completion. 5. 4. Higher authorityClient officer prepares â€Å"Thong bao tac nghiep du dieu kien rut von† (signed by him/her and Head of division). Afterwards, based on credit approval results, Client officer submits the above document and other supporting ones to higher authority. If approved, the documents are transferred to Debt Management for disbursement.The details of disbursement process are briefed as follows: * Debt Management officer opens loan account, fills in CIF, signs off Loan Receipt Note before updating into system for online approval of Division’s Head. * Next, the officer sends: * 01 Loan Receipt Note to client * 01 Loan Receipt Note and supporting documents to relevant departments for disbursement * The last Loan Receipt Note stored in the division. | IT Dependent| 6. | Post-disbursement Monitoring of Loan * At least every 6 months, Client/ Project Investment Division must recheck the loan usage status (usage purpose, collateral status, the balance between assets resulting from the loan and the outstanding balance).This is implemented in accordance with the predetermined plan ( monitoring schedule and methodology), which is proposed by Client officer when preparing Report of Credit appraisal and granting proposal or when â€Å"Thong bao tac nghiep† at the latest. * For collateral monitoring, the following aspects must be assured: * Status compared to previous visit * Forecasted revaluations * Client’s conformity in preserving collateral * Proposal to modify collateral management methods (optional) * Proposal to add/ replace collateral (optional) * Debt Management Division is held responsible for reminding Client/ Project Investment Division about loan monitoring schedule. The result must be documented on Loan Monitoring Records (Bien b? n Ki? m tra), which is signed by Borrower’s representative and submitted to Head of Client/ Project Investment Division for revision and comment. * In case Client/ Project Investment Division detects any signals of risk, officer takes the initiative to propose the corresponding solution (included in Loa n Monitoring Records) before submitting to Head of Division, Director of Client Division (for HO-based clients) or Branch’s Director/ Deputy Director. * After finalizing the Record, officer sends 01 original to Debt Management, 01 copy to Risk Management Division for co-monitoring. | Manual | 7. Credit Adjustment * Depending on the real situation and client’s demand after credit approval, credit adjustment can be made correspondingly. * Procedures of Credit Adjustment are conducted in the same manner as that of Credit Proposal and Approval (only those who are authorised to approve credit are able to approve credit adjustment). Client / investment project officer prepares Report of credit appraisal and credit adjustment- bao cao th? m d? nh va d? xu? t di? u ch? nh tin d? ng. At risk management division prepares Credit risk assessment for adjustment report – Bao cao ra soat r? i ro di? u ch? nh c? p tin d? ng. * Client/ Project Investment Division prepare Thong b ao tac nghi? p di? ch? nh HDTD. | Manual| 8. | Loan and interest collection * At least 10 days before due date, Debt Management officer prints out the list of loans and transfer to Client/ Project Investment Division whose officer prepares a document to inform clients and in charge of pushing clients to pay principal and interest * System automatic calculate interest income for loan group 1 * At the due date of loan, Debt Management officer prints out the report of principle and interest up to due date and checking. Then this report is submitted to Head of Debt management for approving. This report is then transferred to Accounting Division for collecting. If collected in cash, Client has to pay at first at Cash Division. ; after collecting enough and checking, Cash Division. will sign on â€Å"Deposit slip† (Cash receipt) then transfers Cash Receipt Note to Accounting Division for booking entry. * Accountant makes the following entries: * With principal collection:Dr. : Cash / BankCr. : Loan to Customer * With interest collection:Dr. : Cash/ BankCr. : Interest Income * Accounting voucher printed out and signed by controller and chief accountant. | Application A*N*t Interest = ————- 360*100 A: Outstanding balance N:Days (From the last payment day to the next payment day). t:interest rate | 9. Overdue Debt Management * When the loan turns into overdue, debt management officer sends a Reminding Letter to the customer (at least once a month), approved by the Head/Vice of Debt Management Division. This letter is transferred to clients and a copy is also to deliver to the credit officer. * If the customers still don’t make payment after more than 3 times received the Reminding Letter, credit officer proposes to the Head of Client/ Project Investment Division to work directly with the customer’s representative to cover the debt. * Client/ Project Investment Division combines with Risk Management Division and Legal Divi sion if necessary to protect all the interests of VCB. | 10. | Contract liquidation and Collateral Release Collateral * After the client pays all principle and interest, Debt Management officer prepares and signs on Loan Closing Announcement (Thong bao dong h? so vay). * Client officer informs client of Loan Contract Liquidation (Form 7. 2). * Debt Management officer hands over all relevant documents to Client/ Project Investment Division before the former Division transfers to clients and sends the original of Handover Record (signed by both handover and takeover) to Debt Management for storage purpose. * Finally, Client/ Project Investment Division cancel Collateral Transaction Registry. | |

President Obamas Foreign Policy

President Obamas Foreign Policy Obama stirred different opinions during his candidacy and after becoming the president. President Obama’s foreign policy went through various transformations, from an initial assurance of changes to situations of increasing optimism to practical realism.Advertising We will write a custom essay sample on President Obama’s Foreign Policy specifically for you for only $16.05 $11/page Learn More During his campaign, candidate Obama had made a promise that change would occur in America’s foreign policy and restore the moral basis of how America interacts with the rest of the world. One of his promises with regard to foreign policy was to create better relations between the U.S. and the Muslim world. Thus, Obama wanted to establish a foreign policy to change how the U.S. was perceived by the Muslim world and improve the relations. The Bush administration had tried to deal with this issue without success. This was a period when the U.S. had a p reference for war rather than diplomacy and peace when dealing with anti-Americanism in the Muslim world (Rajaee Miller, 2012). There are various American foreign policy (AFP) logics that were evident in Obama’s behaviour during his candidacy and after clinching the presidency. One of the logics was how the U.S. views the rest of the world with regard to its national interests. Logic also relied on ethical considerations and morality, strategies in foreign policies, and how power is considered depending on its nature and understanding. One of the logics that describe President Obama’s administration is liberalism. President Obama wanted to initiate change in America’s foreign policy to seek expansion of liberty around the world after taking office. This was evident from Obama’s intention to ensure that the American foreign policy considered international law during its application. For Obama, it is a moral duty for the U.S. to ensure that they promote li berty around the world (Rajaee Miller, 2012). Free trade is an important aspect under liberalism. Liberalism is within the U.S. national interest for it to exist within a free trade world economy. It can be seen that the U.S. depends on other countries for its imports. Thus, the U.S. will only consider other countries where it is assured of cheap labour. Under liberalism, the U.S. considers political and civil rights as important.Advertising Looking for essay on international relations? Let's see if we can help you! Get your first paper with 15% OFF Learn More These important factors can facilitate peaceful co-existence within the world. In pre-2008, the U.S. had a preference towards Israel than Palestine. Obama was aware of the fact that Palestine had been ignored. Thus, in line with ensuring liberty, President Obama saw the need to assist Palestine as well (Rajaee Miller, 2012). He stated that, â€Å"†¦ humiliation Palestine faces is intolerable.â⠂¬  For him, the political rights of Palestine are important and should be considered within the U.S. foreign policy. President Obama maintained a tough stance on Israel during his first year in office. His government also wanted Israel to withdraw from West Bank and Gaza. President Obama’s first decision after taking office involved visiting the Muslim countries. This was done to assure them that the U.S. was not at war with Islam or the Arab world. This was an important strategy for the U.S. to begin applying its foreign policy. Although both Obama and Bush tried to solve the issues that existed in the Middle East, President Obama used a new strategy that was seen as advantageous in comparison to the policy applied during the Bush administration. President Obama was successful initially, but his initiatives failed and were abandoned in the long run (Rajaee Miller, 2012). President Obama enjoyed support from Muslims during his initial years in office, but views about his p olicies began to change during his third year in office because some of the promises made that affected Muslim countries had not been delivered. One issue that led to the fading trust in Obama’s administration is that he had failed to establish peace between Palestinians and Israelis. The American foreign policy during Obama’s first term was also characterized by liberal internationalism. This was based on the realization that Obama’s administration could not work alone without the assistance of other states in the world. One such problem was the al-Qaeda, which has an international impact. With the growing threats of terrorism, it became important for the U.S. to work together with other countries to solve this problem. This logic considered military power as unnecessary. Thus, Obama’s administration intended to withdraw the U.S. troops from Iraq.Advertising We will write a custom essay sample on President Obama’s Foreign Policy specifical ly for you for only $16.05 $11/page Learn More President Obama’s foreign policies were regarded as effective, although they did not result in significant changes on how the Muslim world viewed the U.S. Thus, his policies only avoided an increase in negative feelings that the Muslim world would have towards the U.S. A survey carried out between 2009 and 2010 showed that Muslims viewed Israel as the biggest threat to Arabs, followed by the United States. Thus, solving the issues with Muslims would be a difficult task for Obama. Isolationism was also among the logics evident in the American foreign policy. This logic was based on the belief that the U.S. society would be negatively affected if it took part in foreign matters. President Obama’s administration had begun to reduce its influence in Middle Eastern states. This was attributed to the de-Americanization of the Middle East. Thus, isolationism was seen as a preference for the larger American citiz enry. A few politicians also share this belief. Thus, during Obama’s presidency he has tried to meet the wishes of the public with regard to isolationism. The U.S. began to reduce its influence within the Middle East following the withdrawal of the military in Iraq and reduction of troops in Afghanistan. In many cases, the presence of its security forces was only to ensure national security to curb the threat of terrorism. Isolationism had also been seen in Obama’s promise to close the Guantanamo Bay prison. Hegemony was also evident, where the U.S. maintained close ties with Israel for the benefit of its national interests. This can be seen in President Obama’s statement that, â€Å"Those who threaten Israel threaten us.† Initially, Obama wanted to establish a peaceful co-existence between Israel and Palestine, but the foreign policy had to go through changes to ensure its hegemony. For instance, the U.S. made an agreement to provide aid to Israel at the cost of $30 billion. In effect, this would ensure that Israel had a military advantage (Rajaee Miller, 2012). Thus, the policy is characterized by the tendency to have extensive power when it comes to matters that are occurring abroad.Advertising Looking for essay on international relations? Let's see if we can help you! Get your first paper with 15% OFF Learn More This can be seen in the case of Israel whereby the U.S. will only interact with other Arab countries if Hamas retains its power. Thus, the US has influence on many countries abroad, a situation that has existed for a long time. Obama’s administration can be compared to Bush’s administration as far as hegemony is concerned. Hegemony is also seen in America’s over reliance on international affairs. Obama’s foreign policies went ahead to establish interest of the U.S. abroad. These were matters ranging from politics to economic issues. Terrorism and war on Iraq were international matters that the U.S. considered important and in need of a solution. The U.S. is also guided by altruistic policies. Thus, many of its policies are based on the idea that they are intended to establish world peace and security. For instance, the war on terrorism is seen as a decision that will be for the benefit of all countries within the international system. There exists a diffe rence in behaviour and logic between pre-2008 and post-2008 Obama, although the difference is minimal because Obama made only a few changes. The opinion that the U.S. shared about the Muslim world was still the same. President Obama became popular within the Muslim worked because of his promises to establish a different foreign policy in comparison to what was applied by his predecessor. It is for this reason that the Arabs were seen to have the highest confidence in Obama in early 2009, just after his election. This confidence began to fade in the preceding years as Arabs realized that many of the changes promised by the President were not occurring. Candidate Obama was considered as a leader who would bring change in the U.S. He was regarded as a unifying force, reaching both to America’s foreign enemies and to opponents at home. His policies were seen as a correction to all issues that arose during the Bush administration. Obama was also able to awaken political responsibi lity in America. Thus, he had a greater influence on international matters based on diplomacy after taking office in comparison to the pre-2008 period. Realism is also logic that can be seen in the U.S. foreign policy. Realism is whereby the state seeks to retain a powerful role within world affairs. In the case of the U.S., Obama’s administration established policies to ensure it had significant influence within the Middle East. This was done through its ally, Israel, to facilitate security within the region. States also use international bodies as instruments to stamp their authority. In the case of the U.S., President Obama intended to use the United Nations (U.N.) in defending Israel (Rajaee Miller, 2012). Realism as logic explains the U.S. foreign policy behaviour on why it tries to prevent the rise of other powerful states. The U.S. has gone through trouble to protect Israel, which is strategically located in the Middle East. Being a powerful country, the U.S. still wa nts to increase its strength and prevent the rise of other powerful states within the Middle East. Israel is located in a region that ensures the U.S. controls the various states in the Middle East. Thus, the best strategy for the U.S. is to attract more allies and resources. It is for this reason that Obama’s administration is at the forefront in establishing diplomatic ties with the U.S. enemies abroad. This is important in attracting more allies. In conclusion, the U.S. foreign policy is characterized by various differences when the Obama administration and the Bush administration are considered. In Obama’s case, his initial days in office were characterized by improved international relations, especially in the Middle East. This was the case for some time, until Arabs became dissatisfied that President Obama did not fulfil his promises. References Rajaee, B. M., Miller, M. J. (2012). National security under the Obama administration. 1st ed. New York, NY: Palgrave Macmillan.