Case Study: Organisational Development Essay

As a means of accurately comprehending the issues in this case it is essential that analysis takes place using a range of managerial perspectives in relation to the implementation of change in order to understand the deficiencies in BA management’s implementation of change. A classical Organisational Development (OD) approach is focuses on changing attitudes and behaviour whereas in this case focus was solely upon improving effectiveness of organisation. According to this perspective BA disregarded several key steps in implementing this change as no feedback was gathered from staff. The OD practitioners in this case have ineffective intrapersonal and interpersonal skills as management have failed to gain the trust of its employees and do not display personal integrity. In relation to a sense making perspective BA did not understand that the change they intended to implement needed to have plausibility in the eyes of employees. Hence management’s approach to abandon talks over the introduction of smart cards and announce their forced implementation at just five days notice [ (Palmer, Dunford and Akin 2009) ]. BA did not effectively convey to positive plausible aspects of this change as employees still thought that the system would be used to make staff alter their working hours at little notice [ (Palmer, Dunford and Akin 2009) ]. Common to various change management approaches are that they highlight the need for communication to be not just about passing on information but allowing different voices to be heard. BA by abandoning talks with unions and employees and also in the lack of provision of appropriate information to their American customers during the strike demonstrates an inherent incapability of BA management to convey information effectively [ (Palmer, Dunford and Akin 2009) ]. Also apparent in this case is the lacking of one strong leader of multiple leaders not one person in BA’s management structure took control of the situation and it seems that BA management participated in groupthink to the detriment of the organisation namely its loss of 40 million pounds. According to this perspective it is argued that the style of change will depend on the scale of change and the receptivity of organisational members [ (Palmer, Dunford and Akin 2009) ]. In the case of BA the style of change was not matched to the needs of the organisation. The situation called for a collaborative style of change drawing upon input from a range of sources including employees, unions and management but instead drew upon a coercive approach thus adding further fuel to an already flamed situation, the layoff of 13000 employees. Viewing this case from a processual perspective this approach highlights a number of stages in engaging in the management of change. The third stage of this approach involves gaining acknowledgement and understanding of the importance of the problem. In relation to the BA case study example BA management fail to effectively understand the problem at hand, instead they made the choice to ignore underlying cultural issues within the organisation and proceed ahead with what they considered as the best course of action from an efficiency perspective. Evidence is found through CEO Rod Eddington’s comment that he was unaware that there was even a respect deficit to be plugged [ (Palmer, Dunford and Akin 2009) ]. In order to address the issues relating to the implementation of change in this case analysis of why BA has failed should take place. In doing this BA management should attempt to understand why their method of implementing change failed from a range of perspectives. From this BA can develop new strategies for implementing change for example using a particular change management perspective and moulding it to fit the needs of the organisation. A solution to the problem encountered by BA in this case would be to be more proactive in their change management strategies. If BA are continuously working toward change making use of employee opinions and feedback within the organisation, large scale changes such as the implementation of smart card technologies in this circumstance would encounter less resistance to change as BA would gain the trust and support of its employees due to their participation in the design and implementation of change within the organisation. In conclusion it can be identified that BA in this case have managed their implementation of change very poorly from analysis of a range of approaches relating to implementation of change and it is proposed that BA being more proactive and making use of a participative approach would be beneficial to the continued organisational development of this business. Bibliography Palmer, Ian, Richard Dunford, and Gib Akin. Managing Organizational Change: A Multiple Perspectives Approach. New York: McGraw-Hill, 2009.

Negative Effects of Slavery Essay

Intro A community can be viewed as a people that share common languages. Attributes and many other cultural similarities. Strong communities usually signify a unity or bond. This bond forms a sense of sense of self and â€Å"brotherhood†. However, this does not appear to exist in the Black community. Slavery has nearly destroyed the existence of any unity. When the Africans were taken from African, different tribes were mixed together on the ships and stripped of their identities. The differences between the African tribes had a positive affect for the enslavers because it caused disunity. Which helped them maintain control both during the voyages and once they arrived to the U.S. realizing the affect of the disunity, slave owners continued to develop tactics that would further disunite African Americans from generation to generation until today. Slavery Period The disunity among Africans helped the slave owners operate their plantations more efficiently and furthered enslaved the Blacks. Their lack of unity increased because of distrust for one another and an increase of loyalty and dependence on their owners The Africans were divided based on physical attributes (ie. Skin tone, physical build). Of all the attributes, skin tone was of the most prominent tactics of division used. The fairer skinned were usually used as house laborers and held a higher status than that of the darker skinned who were used as field hands or given harsher treatment. . Because they were more privileged, a sense of superiority arose among the light skinned or house laborers. This caused the darker skinned Africans to envy the fairer skinned by distancing Negative Effects of Slavery and disconnecting themselves from each other, they caused division on the plantation. Any sign of unity, even seemingly harmless bonds such as bonds between children and their parents, posed a threat to the slave owners causing most families to be separated and sold to different plantations. African women were even taken from their families to become mistresses to their owners. Separation of families left the men unable to uphold their duties as a father and head of the household and left or forced women to raise families on their own or with other men. Segregation Period Before slavery was completely abolished certain slaves were freed, many of which were fair skinned or â€Å"Mullatoes†. When slavery was abolished and the other slaves were freed, the Mullatoes feared that mixing or associating themselves with the other Blacks would diminished their status as the â€Å"Buffer Class† (more accepted by Whites). Even after segregation and Jim Crow, laws were implemented and African Americans were limited to all Black living areas, school, restaurants, etc., Mullatoes were still favoritism in some cases. The resentment and rivalry between Mullatoes and Blacks resulted in separate churches, schools and organizations. Some Mullato organizations, schools and businesses had certain procedures that determine acceptance because they were viewed as â€Å"better† than other Blacks’ were. For example if you were lighter than a paper bag you could get accepted into their organization, if not your were asked to go else where. Another cause of separation was the lack of employment opportunities for Black Negative Effects of Slavery men. They were unable to uphold their position as the man of the house by providing for their family. Women were offered more job opportunities then their men. Resentment grew between both the men and women because the men that were unable to provide for their families felt inferior to the women and the women were left to provide for the household on her own. Lack of jobs for men was such a major issue that some men would seek illegal ways to provide for their families and many were often jailed or killed causing and absence of a father or man in the house. Desegregation until Present Because of the increased availability of more freedoms and opportunities for Blacks since the end of segregation and Jim Crow, African Americans now have the choice to patronize whom ever they please. Many Blacks stopped patronizing other Blacks and sought out White businesses. This has resulted from the influence of the Euro-worldview society is under the belief that White schools and businesses are better than that of Blacks. This is a form of disunity because there is a decrease in Blacks supporting other Blacks. Much like during the time of segregation, Black men have a difficulty being employed. However today welfare or financial government assistance is in place for women who are unemployed with children or without a man in the house; decreasing the need for a male presents. THe decreasing need for the Black male presents is causing not only a separation of family unity, but also the desire to have family unity. Negative Effects of Slavery Conclusion Although we are more than 100 years out of slavery, affects of its corruption still exist within the Black culture. Slavery has nearly destroyed any presents of unity among the African American people by forcing them to compete with each other and by targeting their differences and using them as a means of separation. Aids for minorities such as Affirmative action are nothing more than tactics to force competition, divide Blacks, and maintain a lack of unity whenever there is act to better themselves. Because of fear of an uprising or gain of power after Blacks enslavement slave, owners and other Caucasians developed documented tactics in order to maintain control and disunity of the community. William Lynch gave a speech in 1712 that gives proof to these acts by illustrating their strategy: â€Å"I have outlined a number of differences among the slaves, I take these differences and make them bigger I use fear, distrust and envy for control purposes†¦ you must pitch the old Blacks against the young Blacks†¦you must use the dark skin slaves against the light skin slaves and the light skin slaves against the dark skin slaves†¦But it is necessary that your slaves trust and depend on us†¦The must love, respect and trust only you.† References: Noble (1986). â€Å"Breaking the Chains of Slavery†. Psychological Legacy of Slavery Retrieved May 29, 2007. Hall, Russell, Wilson. (1992). The Color Complex. Retrieved May 29, 2007

Guanxi, Cultural Antecedents and Trust Building in Chinese Business Research Paper

Guanxi, Cultural Antecedents and Trust Building in Chinese Business Markets - Research Paper Example The focus in this paper is on the concept of Guanxi, central to the Chinese society. The literal translations of this term could mean 'connections' and 'relationships', but both these translated terms cannot describe the deeper meaning and implications that it actually stands for.The concept of guanxi is no longer confined to China and is accepted in the West also. Guanxi has been defined in different ways depending on the various perspectives. The Chinese construct considers guanxi as a very specific personal connection between two different people. This connection is exemplified by an inherent psychological contract that needs to be followed. The social norms include being committed, maintaining loyalty and ensuring that the relationship is maintained over a long term. Guanxi also has the key characteristics of trust for the parties involved that is developed through long term interactions, reciprocity and self-disclosure.In literal sense, guanxi means connection. When it comes to relationships, this term either refers to the connection between the parties that are involved, or to the connected parties.There are different stages of guanxi - either existent or non-existent, either good or bad, distant or close, deep or superficial and so on. Guanxi can exist between two or more individuals or even between organizations or different networks.It is also necessary to know that guanxi is function in the different spheres of human life, such as the families, friends, and professional groups, political and business. The term guanxi is used along with different verbs to give it different connotations and meanings. For example, if the phrase 'pull guanxi' is used, then it means the set of actions that indicate initiating and establishing a connection. Similarly, if the phrases ‘walk guanxi' would mean using the established connections to achieve any purpose that needs to be achieved.Similarly, the term has been used in other verb forms such as building, developi ng, breaking etc. According to Gold et al, (2002), guanxi can be described as part of China's national character. Over the years, Guanxi has played a very important role in the business relationships in China. If the businesses are Guanxi based, then, there would be a higher probability to reduce uncertainty, reduce the transaction costs, and lower the search costs as trusted suppliers are already known. Guanxi based business relationships also add to strong sense of connectedness (Tung and Worm, 2001). Even while dealing with foreign investors, Guanxi helps in reducing the uncertainty associated with doing business with outsiders. This is because Guanxi helps in establishing informal relationships that can guard against any opportunistic behaviour on

Evaluation of Relative imprtance of Democracy Promotion,Power Essay

Evaluation of Relative imprtance of Democracy Promotion,Power Politics,and Oil in determining the U.S foreign policy towards Iraq,Saudi Arabia,and kuwait after - Essay Example p regimes , and , above all, it could not allow a religious wave of anti-American/Western sentiment to sweep through the Middle East and negatively affects American strategic interests in the region(Talbott and Chanda,2001;Chomsky,2002;Wolin,2002). 9/11 imposed the necessity of the United States to revise, and possibly completely redesign its foreign policy towards the Arab/Islamic world, especially towards the oil-states of the Persian Gulf. The U.S foreign policy towards the Middle East took a more dramatically aggressive turn following 9/11. Despite the absence of any connection between it and the terrorist acts of September 11th, and despite the lack of any concrete and persuasive evidence for the existing of weapons of mass destruction which threaten the United States, Iraq was invaded. The invasion of Iraq was in immediate opposition to international law, and violated the UN Charter regarding the conditions under which war may be legitimately declared (Falk, 2003; Fare, 2003; Benn, 2004).Saudi Arabia, long recognized as an invaluable ally within both the Muslim and Arab worlds and vital to the United States’ economic interests, came under severe public, and official, criticism from the United States. Not only was the acknowledged head of al-Qaeda, the world’s most wanted man, Osama bin Laden, Saudi-born but the majority of the nineteen terrorists identified as the perpetuators of 9/11 attack were Saud i citizens, but Saudi Arabia was accused of being the major financial supporter of fundamentalist groups in the Middle East like al-Qaeda and Hamas. Yet, it was Iraq, not Saudi Arabia, which the United States targeted. While the United States’ foreign policy towards Saudi Arabia did not assume an overly aggressive posturing, the facts surrounding 9/11, alongside evidence implicating wealthy Saudis in the financing of Islamic fundamentalist groups such as al-Qaeda, motivated the United States to revise its foreign policy towards Saudi Arabia. Even as it

Managerial control case study Essay Example | Topics and Well Written Essays - 1250 words

Managerial control case study - Essay Example The specific sector of the PC industry analyzed relates to the product lines offered by Apple Inc. in this industry, and thus includes Desktops and Notebooks together with allied peripherals and Software services. A schematic diagram of the framework used is shown in Appendix-A. One of the most important forces that govern the strategy adopted by a firm within any industry relates to the threat of new entrants. The PC industry is a high-technology industry characterized by constant innovation and technology obsolescence. Hence the most significant threat from the point of view of entry barriers figures in the form of high capital requirements, primarily for investment in research and development for coming up with innovative products in line with the dynamically changing requirements of the marketplace. This is therefore a major deterrent for new entrants. Secondly, since the industry has been growing very rapidly with large demand volumes in the global market, the economies of scale enjoyed by the established players cannot be matched by the new entrants and thus, this is another significant deterrent to new entrants. All other factors under Entry barriers are favorable to new entrants desirous of entering this industry. The level of product differentiation in this industry is not very high, with only a few innovative features offered by different competitors making for some minimal differentiation. Similarly the switching cost to buyers is not very high in the industry as a whole, considering substantial standardization. Although Apple Computers has been known for closely guarding the secrets of its proprietary technology so far, now with the alliance with Microsoft and availability of Windows 98 for Mac users since 1998, the switching cost for Mac users trying to switch to Wintel platforms has also been low. The distribution channels again, are no longer brand channels. Thus on the whole most of these

Research Report Essay Example | Topics and Well Written Essays - 1000 words

Research Report - Essay Example There have been many incidents reported regarding the struggle of survivors and the lack of government attention on the matter. The lack of food, shelter, medication and capital to begin a new livelihood are the predominant reasons. This report on the cyclone will state scientific data and issues on the occurrence, The extent of damage to life and property , the details of the aid received, the response in terms of aid and statement and intervention of the globe and the Burmese government’s take on the disaster. The report will include valid data regarding the damage to life and the aid sent by the US and the UN countries , reports and news from various renowned papers across the world, and statements of officials, economists, governments , NGO’s and the victims themselves. Extent of damage1.1 : In the report â€Å" Seeking justice for Burma† the author professor Michael A. Newton stated : â€Å"On 2nd and 3rd May 2008 Tropical cyclone Nargis struck Burma battering the 209 kilometer per hour 130(mph) winds at 3.7 meter 12 foot storm surge. IT devastate most of Southern Burma especially the densely populated Irrawady (Ayyerawady) Delta, and the country’s most populous city Rangoon (Yangoon). The U.N estimated that the death toll from the cyclone could be â€Å"in the region of 1, 00,000 or even more† with 220,000 people believed missing. Both figures far surpassed the SPDC’s (State Peace development Council) tally which stands at 84530 dead and 53836 missing.†(Newton 4) The figures given by the professor are right as these were the same figures that were published by the USAID on July 9 2008 in Fact sheet no 24, for the fiscal year 2008. This manipulation or underreporting of numbers by the Government of Burma shows their unwillingness to accept responsibility or take blame for the lack of warning given to the people regarding the cyclone. US Aid 1.2 : The USAID report on

Civil and Criminal law aspects Essay Example | Topics and Well Written Essays - 2250 words

Civil and Criminal law aspects - Essay Example Taylor. The accident happened under her supervision and this raises serious issues. The duty of care arises from the teacher-pupil relationship. Being a teacher, Mrs. Taylor had to comply with the School Teachers’ Pay and Condition Document. This Act, among other matters, charges teachers with a duty of care versus pupils, which extends to â€Å"maintaining good order and discipline and safeguarding their pupils’ health and safety, both when they are on school premises and engaged in authorized school activities elsewhere.†1 This means that when at school or in any other place engaged in a school activity, the teachers owe a duty of care to their pupils, just as Mrs. Taylor owed Chloe a duty of care. However, whether Mrs. Chloe, as an individual teacher, may be found guilty of negligence depends on whether Chloe’s accident may have been reasonably foreseen. Although the concept of medical malpractice has been widely used over the past years, the English Co urts prefer to apply it mostly to cases involving children with certain disabilities. That is why the concept of negligence is more appropriate in this case. Steele J. (2007, p.110) states that â€Å"In order to succeed in a claim in negligence, the claimant must show that the following criteria are met: 1. The defendant owes the claimant a duty of care†2 The existence of a duty of care owed by Mrs. Taylor to Chloe has already been justified above. Moreover, according to Kelly, E.B. (1998, page 32), â€Å"School teachers and administrators have a duty to provide a safe environment and to protect students from unreasonable risk of harm.†3 Although a teacher’s duty of care is not directly stipulated by law, its existence has been upheld in the English courts as a duty which derives from common use laws and case law. 2. â€Å"The duty has been breached†4 Mrs. Taylor breached her duty of care by allowing Chloe, a very young 10-year-old girl to try to perform the difficult exercise. Moreover, in spite of her allowing it, she did not supervise Chloe attentively enough to prevent her from injuring herself, although Mrs. Taylor was standing close to her. 3. â€Å"The defendant’s breach of duty has caused the claimant to suffer loss or damage of a relevant sort†5 If Mrs. Chloe had acted with proper care , Chloe would not have been injured as a result of the unfortunate accident, because it would have not happened at all. 4. â€Å"That damage is caused in law by the defendant’s negligence/is not too remote/is within the scope of his duty.†6 Taking care of the pupils under her supervision is one of the most important duties of a teacher, including Mrs. Taylor. We should also draw attention to the neighbour principal, stated by Lord Atkin in Donoghue v Stevenson (1932): â€Å"The rule that you are to love your neighbour becomes in law, you must not injure your neighbour; and the lawyer’s question ‘Who i s my neighbour?’ receives a restricted reply. You must take reasonable care to avoid acts or omissions which you can reasonably foresee would be likely to injure your neighbour. Who, then, in law is my neighbour? The answer seems to be – persons who are so closely and directly affected by my act that I ought reasonably to have them in contemplation as being so affected when I am directing my mind to the acts or omissions which are called in question.†7 I would also apply the statement made by Lord Rodger in the case of Home

Written assessment Essay Example | Topics and Well Written Essays - 1250 words

Written assessment - Essay Example In order to have children have their best learning experiences they should be able to see, hear and touch the different aspects of their learning. For this particular lesson, it is important for them to be able to listen to the instrument, see the instrument they are listening to and then hear music that includes these instruments. In this way students will have a richer idea of listening to music. By including a way for them to draw a picture and say what they think of the music on the worksheet, they are provided with an opportunity to understand music at a deeper level. Children in grades 4 and 5 are always busy and doing things. They have to have more than just sitting and listening to music or they get fidgety. By providing several things for them to do at once this becomes more entertaining and keeps their interest longer. By the 4th and 5th grade children are able to work in a group and they function well at certain things. They also can work individually using worksheets and most do well at following directions. Children are also using critical thinking skills and this is one of the reasons why I use the worksheet -- it allows them to use these skills as they listen to the music, decide on a picture and decide how the music makes them feel. This is a good way to help them sort out what they are hearing. Many students listen to music that is discouraging and damaging to them and usually this is music that is popular. By introducing them to more than one type of music, they have more to choose from and explore. It is the hope of the teacher that they will want to find other types of music at the library and then perhaps they will purchase it later. Music is one good way to help children improve their listening skills because they have to really listen to hear the specific instruments. If they are talking or are distracted in some way, they will miss the information. This also makes them learn to tune out

Organisation Design and Organisation Development Essay

Organisation Design and Organisation Development - Essay Example Therefore, organizational development is one of the most important practices that any organization needs to follow. But, it is very for the management to understand what OD is not because it is not practice of training and development, human resource development, group or team building. It is an organizational perspective but not any individual perspective. Therefore, the main objective of organizational development policies has developed the organization as whole but not to develop an individual staff or to develop a specific division or team within the organization.   It can be stated as a continuous process and not as an acute event. An effectively designed organization contributes in keeping the work environment healthy and job can be done within a structured framework. Organizational development helps an organization to have improved performance on a sustainable basis. The OD practitioners should have strong democratic and humanistic approach to any change in the organization. A collaborative work environment and work culture is the key drive for OD intervention in an organization. Organizational development process involves a number of major interventions that include strategic diagnostic, evaluation of current and proposed strategies, critical thinking, change management, cultural changes, performance management, talent management, learning and development, customer service and sales effectiveness. Finally, organizational development practice believes that each and every areas of an organization is essential to build an advanced system that has strong impact on all internal and external environments where the organization functions.

Brilliant piece of artwork Essay Example for Free

Brilliant piece of artwork Essay This artwork, Moonrise Hernandez, will be critiqued based on the elements and principles of art to determine its meaning. The author, Ansel Adams, created this piece in 1941 in southern Mexico. Here, Adams used black and white film to make an original gelatin silver 16 by 20 photograph. The artwork consists of a moonlit dark sky above a small camp with mountains in the background. The sky appears stormy because the clouds stand out, while the half moon shines well above. The town looks really boring and poor. Plus, the mountains in the background are very tall and appear to be touching the sky. All of these factors contribute to a wonderful photograph. In this piece both elements and principles of art are prominent. The color of the sky is pitch black, which creates emphasis on the clouds, which are bright white. Also, the sky takes up a lot of space in the photograph and it towers over everything. This creates an uneven proportion throughout the piece. Finally, the texture of the clouds appears smooth, while the foreground is very rough. This creates variety throughout the photo. In all, this piece portrays many of the elements and principles of art. The mood in this photograph is depressing because almost half of this picture is black. See above paragraph. The moon against the dark sky in the picture is a symbol of the constant battle against evil that all of us face. The story it tells is that there will be bad times for the town because they’re about to get rained on. In conclusion, this artwork employs mostly emotionalism. This is because it makes the viewer feel sad and lonely. In all, I think this is a brilliant piece of artwork.

Pros And Cons Of Foreign Direct Investment

Pros And Cons Of Foreign Direct Investment The unprecedented growth of multinationals is due to the concept of globalisation which has no boundaries or limits. Usually within countrys economy there are flows of goods, capital and technology. This leads to high competition in the industry and naturally companies tend to expand their business in order to survive in the global arena. The countries use Foreign Direct Investment as a key to internationalise their business. In order to understand the full meaning of FDI, let us see the definition. FDI is defined as the acquisition abroad of physical assets, such as plant and equipment, with operational control ultimately residing with the parent company in the home country (Buckley, p.35, 1996).In the past 25 years, FDI is growing at a much faster rate than trade and both of these have grown faster than world output (Kozul-Wright and Rowthorn, 1998). There are many factors contributing to the development of FDI. Some of them are Internet, technological advancement, flexible rules a nd regulations of the country and lesser communication costs. FDI stimulates competition, capital, technological and managerial skills which has a positive effect on both host and home countrys economic growth. The importance given to FDI by other country is astounding. One such example is US which has a separate department called Bureau of Economic Analysis. The department monitors FDI inflows and outflows and introduce FDI attraction schemes for successful results. (Graham Spaulding, 2005).This essay analyses various costs and benefits to home country and host country with suitable evidences. Costs and Benefits Let us discuss the costs and benefits of FDI to both home countries and host countries. Benefits of FDI to the host country Hill (2005) suggested that there are three main benefits to the host country derived out of FDI. They are resource transfer effects, employment effects and balance of payment effects. Whenever a company invests in a foreign firm, the resources are capital, technology and managerial skills. In terms of capital, the host country will have a higher financial status than the home country. The change in technology and managerial skills will have a drastic effect on the operations carried out by the company. In the host country due to FDI, it creates many employment opportunities through which the citizens of that particular country would be benefited. The balance of payments keeps tracks of FDI inflow and outflows through two types of accounts, current account and capital account. The current account is a record of a countrys export and import of goods (Hill, 2005) and the capital account maintain purchase or sale details of assets by the country. By using FDI, the country can achieve a c urrent account surplus (where exports are greater than imports) and reduce current account deficit (where imports are greater than exports). (Hill, 2005) Costs of FDI to the host country The negative effects are termed as costs. There are also significant effects which affects the host country. When a foreign firm establishes with the superior technological skills which can produce quality items at cheaper rates, it adversely affects the domestic producers. Balance of payments are also affected by inward FDI by two sources. When there is a initial capital inflow there must be subsequent capital outflow and this will be recorded as debits on capital account. The second source is due to import of goods from other countries which will be recorded as debits in current account. The foreign firm can alter the economic stability of a country as they will be focussing only on the profit. Eventually all the inhabitants of the country will have an emotional outbreak to apparent loss of national sovereignty. (Hill, 2005) Benefits of FDI to the home country The benefit to the home country also includes the factors similar to that of host country. In terms of balance of payments, what is debit to host country is credit to home country. The outward FDI also leads to creation of new job market with great expertise and necessary skills. Reverse resource transfer effect takes place whenever resources like managerial skills are transferred back to the home country. The profit of the foreign firm goes back to the home country unlike domestic producers which contributes to their country. The home country is exposed to create new market share and it is liable to create many in the future. (Hill, 2005) Costs of FDI to the home country Due to FDI, the home country is mainly affected by capital and employment. Suppose a country A decides to invest in country B, using its capital and technology there will be an addition of financial position to the host country than home country. Even in future, if the country A wants to make any advancement, much focus will be given to the company in country B and implement changes. As a result the production in home country decreases and it sometimes result in shutting down all its operations and completely concentrate on the host country. This badly affects the home countrys economy and employment. (Hill, 2005) Summary of costs and benefits To conclude the discussion of the benefits and costs of FDI, points are tabulated in Table 1 Table 1 Benefits and costs of FDI Benefits Costs Host country Financial resources of MNEs Access to new technology Training of local managers Job creation Capital inflows BOP credits from exports BOP credits from local production of parts Competition of local producers BOP debits on repatriated earnings BOP debits on MNE imports on components Perception of loss of national identity Home country BOP credits from earnings Creation of jobs in higher skill categories Exposure to new markets, managerial expertise and technology Protects market share in competition with other MNEs Initial investment a capital outflow BOP debits from input of low-cost goods Loss of exports for which FDI is a substitute Job losses in low skill areas Source: Hill (2005) The benefit of home country is the cost of host country and vice-versa. After researching for many years, economists have come to a conclusion that host country has more benefits than home country. This is because of three main reasons. The first one is that they own assets like technology and brand name. Second it is very easier to produce in a country where it is going to be marketed than producing in the home country and exporting as it save costs on transportation. It also rules out the problem of licensing and handling unnecessary pressures on production from the government. (World Trade Organization, 1996) The following sections are illustration of FDI costs and benefits. Renault-Nissan Alliance The Renault-Nissan alliance in 1999 is the first business-related and industrial partnership between France and Japan (www.renault.com). The alliance received a great attention as they created a very big impact on the Japanese car industry. Before the association, Nissan was about to bankrupt and incurred a dramatic loss of  ¥700 billion. When it was taken over by Renault with a new management team headed by Carlos Ghosn, a complete restructuring was done. The global work force was reduced by 10 percent, five factories were closed and Nissans shareholdings were sold. These were very high according to Japanese standards (Paprzycki, 2006). The outcomes were astonishing as they recorded consecutive profit in the following years with high operating margins and it was due to combined expertise and technology sharing (www.renault.com). The stealing of market share from its rivals Honda, Mazda and Mitsubishi was a clear indication of its accelerated development (Paprzycki, 2006). From thi s, it is very clear that transfer of managerial skills will have a huge impact in the success of the industry. Mexican Maquiladores Maquiladores refers to an American company on the Mexican side of US-Mexico border. They are owned by US, Japanese and European countries. The reason for these companies to go to Mexico is due to inexpensive labour and low tax (www.about.com). Many US companies including GE, RCA, IBM, Coca-cola and Ford were the first to initiate production in Mexico. Japanese and Korean firms also became major investors in 1982. As a result, it had a positive reflection on employment. It rose from 100,000 in 1982 to 500,000 in 1992. The NAFTA implementation further boosted up to 1.3 million and the region reported for 40 percent of total Mexican exports. The amount of goods exported to US increased from $42 billion in 1993 to $166 billion in 2000. Fords plant in Mexico became the third largest foreign owned manufacturing operation in Latin America. (Jones, 2005) US -Malaysia FDI relationship The economy of Malaysia was badly affected by several recessions like worldwide oil crisis and Asian economic crisis. Its economy again rebounded in 1999. FDI became a key factor in countrys development. Anderson (1993) suggested few factors that attract FDI in Malaysia were undervalued currency, low cost of labour and fairly low inflation rate. Though there are many foreign investors, U.S. companies ranks first in FDI in Malaysia. The companies like Boeing, General Electric, R.J. Reynolds and Bechtel were major American investors. The government provided perfect climatic conditions for American firms to operate in Malaysia. The following factors attracted U.S. firms to invest in Malaysia. The government set up an Anti corruption Agency to prevent corruption in any form. It has the same legal structure so the investors had great convenience in handling their business following the rules and regulations enacted by the government. Moreover there was not any language issue as Malaysia i s an English speaking country. The investors got attracted towards the incentives provided through tax treatment and generous equity ownership. There were also some issues faced by foreign investors. Any foreign investor who wants to start industry must get proper approval from Malaysian Investment Development Authority (MIDA). The approval depends on various conditions which will be frustrating for investors. The other problem faced by investors was that they have to get work permit for foreign workers, which was a time consuming process. The government has several restrictions on total number of foreign workers on their land as it will have a direct effect on countrys employment opportunities (Prempeh Abenna, 2003). FDI has also negative impacts on home country. In case of Malaysia, the American investors violated both Human rights and Workers right. Malaysia faced a severe violation of human rights as pay was very much less than the minimum wage. The working conditions were also not employee friendly because of which workers faced several types of health problems. The company was against in forming labour union and when protested by the government, they complained that forming unions was a violation according to U.S. Generalized System of Preferences (GSP) requirement (Prempeh Abenna, 2003). McDonalds-a worlds largest chain of quick service restaurants McDonalds was started in a suburb of Chicago in 1955. It became the largest fast food restaurant and held one third of US market in 1990. McDonalds opened its branch in Canada in 1967 and later began to open in Europe by making joint ventures. McDonalds influenced the needs of locals and all other local fast food outlets in Germany and Netherlands faced a very tough competition. The local restaurants had to change their style to McDonalds in order to meet customer demands. After that, every step ahead was a success to the company. They had joint ventured with Japanese and very soon became countrys largest restaurant chain. (Jones, 2005) McDonalds operation in Russia, China and India was a clear indication of International expansion. They had 30,000 outlets in 120 countries and employed 250,000 people outside the United States. They established in all major cities and helped students to manage their living by providing part time jobs. Their international operations reported one half of McDonaldss revenues. As time changes, customer needs also changes. Now customers prefer to have a nutritious meal, so McDonalds used their marketing nuances to satisfy their customers. For example, in France items like salads, fresh fruits and Evian mineral water are included in the menu. (Jones, 2005) Conclusion In this essay, we have seen several factors that affect both home country and host country. Every company in the market sees to maximise the benefits and minimise the costs. The goal of achieving maximum profit influences every other decision while investing in a country. So far, we have seen the costs and benefits of home countries and host countries and real time examples are also cited. The primary factors that affect both home country and host country are employment, competition, economic development, technology and management. A success of an industry can be determined by how well these factors are managed by the country practising all rules and regulations adopted by the country in which operations are carried out. The governments also play an active role in framing rules and regulations to derive maximum benefit out of both FDI inflow and outflow. The negotiations are done on every agreement. Only if it is beneficial the operations are performed otherwise they are rejected at the initial phase itself. FDI is also used for improving the infrastructure of economically backward countries. The funding is done by world level organisations like World Health Organisation, World Bank and International Monetary Fund. The infrastructure is provided even in terms of upgrading medical facilities. For example, in Africa money and medicines are provided to eradicate diseases and in India several awareness programmes are being conducted about HIV prevention. The money invested in the country can also be used for constructing roads to remote areas which will help in transportation of medicines and in situations like floods and other natural disasters. It can also be effectively used for training unskilled labour by conducting educational programmes that would benefit them to get into any industry (www.economywatch.com). The extent to which a country can be benefited out of FDI is solely decided by the government and foreign firms. Many foreign firms involve actively in promoting social and enviro nmental factors. The government can give tax exemptions and other incentives for the companies that benefit their country.