Human Resource Management Essay Example | Topics and Well Written Essays - 2000 words - 26

Human Resource Management - Essay Example This was because in my sociology studies I had learned that culture was something that occurred naturally and not necessarily a HRM practice. In reality, I did not think that organizational culture had anything to do with the success or failure of an organization and to me the insistence on culture was overrated. People from diverse cultures might understand the same situation in various ways. Productivity may rise in a multicultural work environment as each employee brings diverse talents and skills that can be used to solve challenges. One thing that I did not understand was how these differences could bring about conflict in the work place (Schizas, 2009). In order to understand exactly how culture is crucial to the success of an organization, I studied IBM. IBM is a multinational corporation that has over 400,000 employees and in various parts of the world. My major reason for choosing IBM is because the company has a big presence in Asia and this means that the business practices that are applied in the United States are not likely to be applicable in Asia or Africa and this call for a change in the organizational culture. My main reason for undertaking this study is to find out exactly if organizational culture is important to the organization in trying to achieve its financial goals. To achieve my objective, I will look at the existing literature on organizational culture and how it affects businesses. I will however pay close attention to IBM especially on the changes that they have made in their organizational culture with a view to establishing if this has borne any fruits or not. Along the way, I will also be looking at some of the changes that the company has undertaken in order to realign its HR practices and strategies to enable it to move away from its traditional methods and to adopt new approaches. In the research, I will also seek to establish some of the common errors that are

Moral Judgment and Ethical Leadership in Chinese Management-The Role Research Paper

Moral Judgment and Ethical Leadership in Chinese Management-The Role of Confucianism and Collectivism - Research Paper Example The paper throws light on moral judgment and ethical aspects are two of the most important aspects used in management leadership. Management leaders need to take decisions in regard to greater moral judgments and ethical perspectives. Moral judgment and ethical decision making abilities are important in management leadership in order to develop the organizational science. Moral judgment and ethical leadership management help organizations to reduce the uncertainties in management issues related to interests of multiple stakeholders and management values. In Chinese management system theses concepts are highly important in creating greater effective management leadership practices, Confucianism is the most important ethical as well as philosophical system which was developed by the renowned Chinese philosopher Confucius. This ethical and philosophical aspect is also applied in management leadership practices. The notion of collectivism deals with the any political, social, economic, a nd religious aspect which emphasizes on the interdependence of each and every human being and the concept is very much important in Chinese leadership management for increasing the level of collected interests in management practices. The political structure of the country is the most important inspiration for promoting the collectivism approach in the country and Confucianism acts as the moral guiding support for management leaders across the country to apply moral judgment and ethical aspects in business management practices. ... This ethical and philosophical aspect is also applied in management leadership practices. The notion of collectivism deals with the any political, social, economic, and religious aspect which emphasizes on the interdependence of each and every human being and the concept is very much important in Chinese leadership management for increasing the level of collected interests in management practices. The political structure of the country is the most important inspiration for promoting the collectivism approach in the country and Confucianism acts as the moral guiding support for management leaders across the country to apply moral judgment and ethical aspects in business management practices (Cheng, 2011, pp. 657-658). Literature Review and propositions Development: A) The Nature of Confucianism: Confucianism plays an important role in the process of development of strong cultural perception in Chinese social, cultural, economic, and business management perspectives and also it plays t he most crucial role in the process of development in the culture of the country. Confucianism leads to greater and stronger perceptions in the cultural context of the country. The core idea of Confucianism is humanism which is the guiding force for developing the stronger perspective in the cultural context of the country. The ethical and sociopolitical teaching of the notion of Confucianism and the humanism approach of the performing social, cultural, economic, and political practices and acts are helping the development of all cultural contexts of the country to become stronger with the passage of time (Husted and Alan, 2008, pp. 297-299). This property of Confucianism of dealing with humanism helps the culture of the country through developments of people

Ho Chi Minh City Essay Example for Free

Ho Chi Minh City Essay Trung nguyen is the most famous coffee brand in Vietnam. It was created in 1996 by Mr. D? ng Le Nguyen Vu. During student life in medical school of Tay Nguyen, Mr. D? ng had a question about coffee farmers’ life. Although the price of a cup of coffee wasn’t cheap, but why, farmers were still poor. This question encouraged him to find the answers. He and his company suffered from many accidents, but they kept on trying. Those experiences brought them a good background for opening more shops and expanding their business widely. And in early 2004, they introduced G7 to the customers. This step turned Trung Nguyen history to the new page, they became the biggest and the most famous firm selling high-quality coffee powder. II. Strategy Trung Nguyen first opened their first coffee shop in Ho Chi Minh City in 1998 and received some positive feedbacks. In 2001 they had built over thousands coffee shops all over Vietnam and became top-rated brand in Vietnamese coffee industry. They did Franchising, the step which was different from all other Vietnamese firm, they were the first. After 5 years, Trung Nguyen not only could gain the trust, the belief of Vietnamese customers but also customers in other countries like Singapore, Japan, Cambodia, etc. In 2006, Trung Nguyen invested and built the biggest high-quality G7mart system of stores for selling products. In June 2012, Trung Nguyen created the new strategy. That was creating the string of quick shops, which allows customers to choose some various kinds of coffee beans and the owner of the shop will mix them together for making the customers’ own styles. The evidence for the development of this strategy is the profit which grows 15% per week Trung Nguyen’s customers are not only the elder, the people who understand clearly about coffee but also, they have products for the young, who begin drinking coffee like student, teenager, etc. III. Revenue-Potential Growth. Although the economics go down, Trung Nguyen still makes profit, and improves themselve powerfully. In 2011, their revenue and production improve up to 151%, and the first six months in 2012, they gain up to 178% compared with the same time in 2011. The biggest evolution of Trung Nguyen is their G7 powder became the leader of coffee powder in Vietnam at the rate 37. 8% In the near future, Mr. D? ng plans to join the world stock market and in the next 10 years, he tries to invest more than 800 million USD to build new factories and some additional options.

Social Media as Advertising Platform: Case Study

Social Media as Advertising Platform: Case Study The report represents an analysis of the promotional strategies implemented by Love for Food. The company has chosen social media as its promotional platform. The complete report has been presented based on identified aims and objectives. Among various measures available to study the performance of effectiveness of marketing strategies, such as A/B testing, multivariate testing and assessing Facebook analytic, the Facebook analytic model has been chosen. With the help of AIDA model, the discussion identifies that the company has not been successful to initiate effective demand due to flaws in promotional strategies. The reflection provided in the study shows this analysis has been very informative to enhance knowledge about the use of Facebook Insights. The discussion puts forth a study of web analytics. The report is presented in the scenario of a firm Love for Food. The business has chosen Facebook as the medium of promoting the business. The report will put forth a brief background of the study and the enterprise. It will identify key aims, goals, objectives and research questions for the discussion. Many strategies of research will be evaluated. Based on the evaluation a key strategy will be selected. The discussion will also put forth a process of experiments based on theoretical perspective, a data analysis will be presented by identifying effectiveness of the marketing strategies. A brief reflection will be presented by addressing key factors identified in the study. In the end, the discussion will be concluded by providing a concise summary. Background Love for Food is a bakery company based is an UK-based bakery firm. The organisation is considering to take online shopping as its key business domain. It has chosen Facebook as a feasible online media to sales its products (Facebook.com, 2017). Since, this platform is cost effective and offer high degree of reach (Bharadwaj, et al., 2013). But, it is imperative for Love for Food to assess the effectiveness of Facebook to promote the services. The study will focus on web analytics using Facebook insights to assess the effectiveness of this tool (Selwyn Facer, 2007). The enterprise has been successful to generate likes and shares of by promoting its Facebook page. But, the firm wants to enhance the outcome more to ensure better success of the business. Aims, goals, objectives or purpose: The key aims, goals, objectives and purpose of this study has been put forth as below. Aims: To assess the effectiveness of web analytics in promoting the businesses. Goals: To enhance the promotional activities of the company by ensuring better result. Objectives: The key objectives of the study are as mentioned below. To identify the effectiveness of web analytics to measure the effectiveness of promotional activities of the firm? To identify key drawbacks lies in the promotional activities of the organisation. Purpose: This study will facilitate Love for Food to improve its promotional strategies. The enterprise will also be able to assess the probable return on investment it will be able to get in short term and long term perspective (Miller, 2012). The analysis will also facilitate the organisation if it will be successful to meet it anticipated target more effectively. Questions: Based on the above discussion following research questions have been identified for this study. How much is the web analytics effective to measure the effectiveness of promotional activities of the business? What are the key drawbacks in the promotional strategies of the organisation? Selection of experiment area: Strategies: There are many strategies available for the company to develop for conducting experiments (Young, 2014). These are multivariate testing, A/B testing and creation of Facebook pages and posts. Each of these strategies is discussed and justified as below. Multivariate Testing: In this process of testing various interlinked variable are modified to assess the impact of the result. This analysis helps to identify the one combination which is effective for the enterprise (Wang, 2014). In the context of Love for Food, the firm will be able to assess the effectiveness of its different marketing promotions with changing scenario. But this will take much time and make the whole process costly (Chaffey, et al., 2012). Thus, this method of analysis will not be effective for the company. A/B Testing: In this process of testing, the enterprise will be able to test data based on single variable. This is effective for simple projects. But, the projects which have many critical data and interlinked operations, will not able to generate effective analysis from this study (Segura, et al., 2016). The A/B testing however also helps to identify an effective channel of promotions. The Love for Food will require undertaking many promotional tools such as social media, advertisement on television and newspapers (Royle Laing, 2014). But, this will raise the cost of project. Because, it is not feasible for the organisation to make presence in those media. Hence, this method of study will not be feasible for the organisation. Creation of Facebook pages and posts: in this process of method, the business will be able to assess the market demand for the product more effectively (Abell Brewer, 2014). The firm will be able to develop many customised solutions and information. The likes, shares and comments provided by the organisation, will facilitate the enterprise to identify the popularity and attractiveness of its strategies. Love for Food can implement this strategy in cost effective and timely manner (Gerlitz Helmond, 2013). Therefore, this process of analysis will be feasible for this study. Method for conducting experiments: Owing to the feasibility of the process of creation of Facebook pages and posts, Love for Food chose this method of conducting the experiment. Initially, a Facebook account was created. The account was logged using the user id and the password as articulated by the company.       Figure 1:1st Step Creation of the page was the second step after the procedure of logging in into the account. Figure 2:2nd Step Figure 3:3rd Step In this step, the page was selected and was ready to be created. Figure 4:4th Step The primary purpose of creating the Facebook was to connect with the people by using a brand, business or a cause. In this case, the cause or community was chosen to continue with the further step. Figure 5:5th Step By clicking on get started and after writing the name for the page, the Facebook page was created as illustrated below. Figure 6:6th Step Figure 7: Page Created The creation of the Facebook page has enabled the company to attract a number of people at the same time. The page also got about 30 likes. The page has also been receiving comments for the photos and the videos that were uploaded by Love for Food. Hence, this procedure has been useful in the attainment of the objectives. Analysis of your experiment area: Page Views: The above analysis of data identifies that the company has become successful to generate 37 views for its Facebook page. The page was run for 3 weeks. Within this small period it has been successful to generate sufficient views. The above chart also shows the sources of views was not only from facebook.com, but also other key websites such as likestool.com, traffup.net also facilitated to increase the number of views the page. This shows the company can get higher reach through Facebook promotions. Page Likes: The above data shows that the enterprise has been able to increase the likes of the page from 17th Feb to 17th March. The firm has been successful to the likes of pages to a certain extent from 15th March. The above chart also represents that the number of likes has been decreased drastically from 16th march. This represents that the business has not been successful to sustain its market presence. According to the AIDA model, the enterprise requires to attention generation, interest development, desire generation and resulting action i.e. purchasing of services (Hassan, et al., 2015). But, above analysis shows the company has been successful to generate attention for the product. It has also been successful to develop interest (Wang, 2014). But as the organisation has failed to sustain these factors for long, it has not been successful to generate desire and purchase decision. Thus it failed to meet its target of generating high degree of return on investment from the projectReflections upon the use of Facebook/Facebook Insights: Pages on Facebook are public in nature and hence, the engagement with the pages are also public. Initially, with the incorporation of Facebook Insights in my project, I learnt that Facebook insights assists in providing insights to the managers of the page along with the activity of the people on the page (Bharadwaj, et al., 2013). I learnt that Facebook insight is a powerful tool for the individuals who are determined towards the tracking of the interaction of the user on the fan page of the Facebook. It can be seen by each and every admin of the page. I also learnt that it aids in understanding the performance of the page with the help of graphs. In the course of using Facebook insights, I learnt that we will also be able to recognise and determine the best time of the day along with the best day of the week for posting pictures and contents on the Facebook page (Gerlitz Helmond, 2013). Further, it is also mandatory to mention that I also learnt that Facebook Insights are also useful in understanding the use and power of a particular content or post (Frick, 2000). One of the most important things that I learnt was it is a tool that is constantly updated which helps in reflecting the developments in the page. Hence, it is essential to keep a check on the loop. The study identifies that the company has chosen social media for promotional perspective. Since, it is cost effective and has high reach. The other process of analysis for studying the effectiveness of promotional strategies thus has been rejected. These promotional strategies can be identified as multivariate analysis and A/B analysis. The analysis of data also shows; the organisation has been failed to meet its promotional objective as it has failed to sustain the interest. In theoretical perspective of AIDA model (Ward Peppard, 2016), the enterprise has not been quite successful in generating demand and purchase intention for its products. However, the study has been very beneficial and informative to develop analytical skills. So, it will add value in academic and professional endeavours. References Abell, L. Brewer, G., 2014. Machiavellianism, self-monitoring, self-promotion and relational aggression on Facebook. Computers in Human Behavior, 36(1), pp. 258-262. Bharadwaj, A., El Sawy, O., Pavlou, P. Venkatraman, N., 2013. Digital business strategy: toward a next generation of insights.. s.l.:s.n. Chaffey, D., Smith, P. R. Smith, P. R., 2012. eMarketing eXcellence: Planning and optimizing your digital marketing. 2nd ed. s.l.:Routledge. Facebook.com, 2017. Love For Food. [Online] Available at: https://www.facebook.com/Love-For-Food-264565583984164/[Accessed 17 March 2017]. Frick, T., 2000. Return on engagement: Content, strategy, and design techniques for digital marketings.. London: Taylor Franci. Gerlitz, C. Helmond, A., 2013. The like economy: Social buttons and the data-intensive web.. New Media Society, 15(8), pp. 1348-1365. Hassan, S., Nadzim, S. Shiratuddin, N., 2015. Strategic use of social media for small business based on the AIDA model. Procedia-Social and Behavioral Sciences, 172(1), pp. 262-269. Miller, M., 2012. B2B digital marketing: Using the web to market directly to businesses. London: Que Publishing. Royle, J. Laing, A., 2014. The digital marketing skills gap: Developing a Digital Marketer Model for the communication industries.. International Journal of Information Management, 34(2), pp. 65-73. Segura, S., Fraser, G., Sanchez, A. Ruiz-Cortà ©s, A., 2016. A survey on metamorphic testing. IEEE Transactions on Software Engineering, 42(9), pp. 805-824. Selwyn, N. Facer, K., 2007. Beyond the digital divide Rethinking digital inclusion for the 21st century. UK: Futurelab. Wang, P. e., 2014. Graphical representation of multivariate data. 2nd ed. London: Elsevier. Ward, J. Peppard, J., 2016. The Strategic Management of Information Systems: Building a Digital Strategy. London: John Wiley Sons. Young, A., 2014. Brand media strategy: Integrated communications planning in the digital era. Basingstoke: Palgrave Macmillan.

The Issues Surrounding the Amazon Rainforest Essay -- Environmental Am

The Issues Surrounding the Amazon Rainforest   Ã‚  Ã‚  Ã‚  Ã‚   The battle for the Amazon rainforest is a daunting task. It’s a long going battle between miners, loggers, and developers against the indigenous people who call it home. It’s a battle like any battle in a war; it affects lives, families, the economy, politics, and the environment amongst other things. The main topic of this debate is the effects of the Amazon deforestation on the people who live in it, this will be the focus of this research paper. In this paper, I will discuss the history, causes, effects and solutions for the Amazon rainforest deforestation.   Ã‚  Ã‚  Ã‚  Ã‚  The environmental problems of today started a long time ago, before automobiles, electricity, and the Industrial Revolution. From ancient times to present day, humans have changed the world in which they live. As population increase and technology advances, more significant and widespread problems arise. The Amazon rainforest has not been spared from this. The Amazon region has long been seen as a land of great riches. â€Å"Early Europeans and others have long been fascinated by the Amazon, with early visions of a land of gold, the legend of ‘El Dorado’† (Faminow 32). The European invasion bought with it the increased population and new technologies that had a drastic effect to the Amazonian region, which was once considered safe from exploitation. This problem has continued to the present, with higher consequences. Ehrlich explains, â€Å"today, unprecedented demands on the environment from a rapidly expanding human population and from advan cing technology are causing a continuing and accelerated decline in the quality of the environment and it’s ability to sustain life† (98). As a result, the Amazon rainforest is being destroyed at an alarming rate, affecting all those that live in the region.   Ã‚  Ã‚  Ã‚  Ã‚  To understand the scope of the changes taking place, Howard Facklam has come up with some staggering statistics, he says, â€Å"it was estimated at one point in the 1980’s that the Amazon basin was being cleared at the rate of 50 acres a minute; another estimate put the rate at 78,000 square miles per hear† (53). These are astronomical numbers when you come to think of it, to put it into perspective, that’s roughly the size of the state of Idaho. Such deforestation has an alarming affect, â€Å"it means the loss of a multiplicity of products: Food, fibers, medicine... ...e papers about it. It doesn’t mean that the problem has gone away, it’s still very much alive. It’s just not getting the coverage and attention it has before and that’s where the shame lies. People need to know about this, the more the better. It’s a valuable resource that mankind cannot afford to lose. Bibliography Ehrlich, Anne et al. Earth. New York: Watts. 2007. Facklam, Howard. Plants: Extinction or Survival?. New Jersey: Enslow. 2000. Faminow, Merle D. Cattle, Deforestation, and Development in the Amazon. New York: CAB International. 2002. Gradwohl, Judith & Russel Greenburg. Saving the Tropical Forests. Washington D.C.. Island Press. 2003. Hecht, Susanna. The Fate of the Forest. London. 2001. Hornaday, Anne. â€Å"Earth’s Threatened Resources.† Congressional Quarterly. 2 Sept.   2003: 28-29. Linden, Eugene. â€Å"Paradise Lost?† Time. 19 July 2000: 50-51. Smith, Duane A. â€Å"My Trip to the Rain Forest.† Mining America: The Industry and The Environment. 3 Sept. 2001: 66. Stewart, Douglas Ian. After the Trees. Austin: University of Texas Press: 2004. Tropical Deforestation: the human dimension. Ed. Leslie E. Sponsel. New York: Columbia UP. 2006.

Leadership Succession

Is it necessary for Citigroup to have a leadership succession plan? Why? Leadership succession planning is very important from two perspectives. First of all, it helps to select highly-potential candidates, who have strong leadership abilities and possess all necessary qualities to assume high administrative positions in the future. Besides, leadership succession plan also includes the measures on giving a wide range of learning, training and development opportunities for such individuals in order to improve their professional performance, proficiency, managerial abilities, leadership skills, and so on.Undoubtedly, if Citigroup does not pay attention on the situation around Sandy Weill right now, the company’s risk to be left without an effective leader will be increasing. Sandy Weill is a man over 70, and at this age his professional abilities as an executive can get worse at any time. That is why, I suppose, there is an urgent vital need for the company to select and start p reparing someone who would be able to succeed Mr. Weill.2. Who should have the responsibility of preparing a succession plan?For large organizations and corporations specialists suggest establishing special Leadership Planning Boards, which would carry out the main activities on leadership succession planning. Such activities have to include identifying critical positions, establishing criteria and identifying the best candidates (at least two for one position), reviewing and monitoring their professional progress and personal development, interviewing and evaluating every candidate and coming up with some conclusions and suggestions.Undoubtedly, such departments as Business Human Resources Units or Corporate Human Resources Departments have to be also involved in leadership succession planning process. They have to assist Leadership Planning Boards and give all necessary information about potential candidates. Top managers from Board of Directors or Chief Officers have to take all the responsibilities on supervising and controlling the effectiveness of leadership succession planning process (Tennessee Valley Authority, 2000).3. Should the succession plan include insiders? Outsiders? Or both?I think that it is preferable for any company or organization to select the candidates from the insiders. If there are qualified and talented managers, who worked and had opportunity to develop together with the company for some time, they are certainly better aware of the specifics of company’s business, strategies of management, organizational culture and traditions, etc. Moreover, they could already win some reputation and respect of the employees; therefore, they are potentially effective leaders or top managers.But there can be a situation when there are good outside candidates, who had no experience of working with the company. In such case, I suppose, it is necessary not only to interview such candidates and estimate their potential effectiveness, but also in volve them into business activities of the company as soon as possible. I strongly believe that working closely with the leaders and learning more and more from them is a key factor for good performance of any successor.4. Why do executives such as Weill avoid the succession issue?I think that Mr. Weill can have some personal reasons for doing this. Possibly, he does not take leadership succession as a reality or does not want someone to be on his back. Maybe he assumes any succession plan as the necessity of his resignation or as a sign of lack of trust from his colleagues. There’s also probability that he is trying to avoid all succession plan initiatives in order to prove own competence and uniqueness.Nevertheless, I believe that this situation is not a typical one, especially for such huge organizations as Citigroup. Usually, top managers and executives demonstrate concern about their organizations and get actively involved in succession planning. They can point on some p ossible successors, work with them, train and promote them in order to prepare such candidates for taking higher positions and make them understand, what the organization requires to remain successful.References:Leadership/Succession Planning. (2000) Tennessee Valley Authority. Retrieved June 29, 2007, from: . Ritter, J. (2003, April 15) Succession Planning: A Tool for Success. The Galt Global Review. Galt Western Personnel Ltd. Retrieved June 29, 2007, from: .

Critical Analysis of the Fiscal Responsibility Act of Nigeria 2007

CRITICAL ANALYSIS OF THE FISCAL RESPONSIBILITY ACT OF NIGERIA 2007: AN OVERVIEW BEING ASSIGNMENT SUBMITTED ON PUBLIC FINANCE (BKF 624) (FIRST SEMESTER COURSE WORK) BY ALAJEKWU UDOKA BERNARD 2008 162 001 MSc PROGRAMME DEPARTMENT OF BANKING AND FINANCE FACULTY OF MANAGEMENT SCIENCE SCHOOL OF POSTGRADUATE STUDIES ANAMBRA STATE UNIVERSITY LECTURER: DR. EZEABASILI V. N. OCTOBER, 2009 Page 1 of 19 ABSTRACT Fiscal Responsibility Act 2007 was designed to regulate and supervise the fiscal activities of public office holders in the country.This paper critically analyses the effectiveness and efficiency of the implementation of the Act; the machinery for implementation; the powers and tenor of the members of the Fiscal Responsibility Board; the appointment of members of the Board; Fiscal policy/activity uniformity in/among the various tiers of government; the fiscal control on borrowing; the key features of the Fiscal Responsibility Act; the consequences of the Fiscal Responsibility Act; the pr otection of officeholders, among others.The paper hoped that Nigeria’s Fiscal Responsibility Act will strengthen the nation’s financial reporting and ensue better management of its resources. The paper then concluded that the FRA provided the much needed deterrent to stop public officers dipping their hands in the states till and then made some recommendations for improvement. Page 2 of 19 Introduction Following the incessant misappropriation, mismanagement, and lack of stewardship and accountability in the nation’s public sector, the Fiscal Responsibility Bill was proposed for consideration by the President Obasanjo administration through the then Minister of Finance – Prof.Okonjo-Iwuala N. The Bill was passed into law in 2007 as the Fiscal Responsibility Act, 2007. The Fiscal Responsibility Act provides for a body known as the Fiscal Management Council that comprises the Fiscal Responsibility Council and the Governing Board. The Council is charged with the responsibility of monitoring and enforcing the provisions of the Act to ensure accountability, transparency and prudence in the management of the nation’s resources by all tiers of government, government corporations or companies and agencies. Therefore, the Fiscal Responsibility Council is the regulatory and supervisory body in the public sector.By this Act, it is expected that the Public Sector would have a definite regulatory structure to act as watch dog on the activities of the public office holders and as checks on financial encroachment between/among tiers of government. This is expected to bring sanity and responsiveness into the public sector and among the various tiers of government in Nigeria. The Fiscal Responsibility Act (2007) is a law to â€Å"redirect government at all levels to imbibe a fiscal behaviour that will promote prudence and sound financial management in the system† (http://www. udgetmonitoring. org/ Page 3 of 19 Spotlights/2007/02/26/News 11618/). The Fiscal Responsibility Act seeks to ensure that the Federal Government will never commit itself to spending money without ensuring that it has the necessary funds in place to begin with (Nwanma, Vincent, 2007). Afemikhe, (2005:6), fingered the poor performance of the public sector despite abundance of mineral resources in the country and blamed all on corruption and mismanagement.Posited thus: â€Å"how is it that a country with abundant human and natural resources, that held so much promise at independence and was trumpeted with significant economic achievements in the decade following the oil boom has so rapidly fallen from grace to grass and indeed appears to have completely lost its way and its focus? The answer lies in the twin evils of corruption and poor public expenditure management†. Afemikhe was not alone in accusing Nigeria of poor management, Africafront. om/news also decried our polity thus: â€Å"our fiscal policies have been largely characterised b y poor planning, massive waste and wrong priorities. We have rarely failed to match our fiscal responsibility acts with the right policies thereby making effective and efficient service delivery impossible†. The site maintained that the FRA is a fundamental action to attack fiscal inconsistency and indiscipline from the head to the root. It is noted that the Fiscal Responsibility Act (2007) â€Å"†¦ aims to ensure fiscal accountability, check corruption, monitor the budget processes and call Page 4 of 19 ublic officials to order†¦ ; it does not appear that there is one final act that should hopefully put the final nail on financial rascality in government (http://www. budgetmonitoring. org/Spotlights/2007/02/26/ News11618/). Nwanma, Vincent, (2007) was of similar view when he asserted that â€Å"no-one expects that it (FRA) will end high-level corruption at a stroke†. According to then Anambra State Commissioner for Finance (2007), Eze Echesie, â€Å"I donâ €™t think any single law can stem or stop fiscal rascality but we have tried to ensure the elements of consensus building in this bill†.Nath Nwabueze, a lecturer in finance at the Federal University of Technology, Owerri warned that the Fiscal Responsibility Act would not cure Nigeria’s problems of high-level corruption and poor budget planning unless it was properly enforced (Nwanma, Vincent, 2007). At worst, the Act will â€Å"commit chief executives at all tiers of government to a set of efficient rules for economic management by providing set standards for the planning and control of public expenditure instead of leaving it to the whim of either the president or state governors.The Act will also facilitate parliamentary and public scrutiny of economic and monetary information and plans; bring a long-term focus to budgeting and thereby minimise risk and fluctuations in government monetary operations and policy (www. africafront. com/news). Page 5 of 19 Statement s of the Problem Nigerian fiscal policies have been largely characterised by poor planning, massive waste and wrong priorities. This they claim spring from corruption and poor financial management.The Fiscal Responsibility Act was enacted with the aim of checking these anomalies in the system. The extent to which the law can do this is not known, therefore, it becomes imperative to analyse the content of the law to ascertain its workability within the Nigerian context. Objectives of the Study The paper aimed critically analyse the contents of the Act in order the pinpoints its possible strongpoint and defects. It will also identify and appraise the basic features of the Act to ascertain its workability in the country.Machinery for Implementation The Fiscal Responsibility Act (2007) has its focal point as the prudent management of the nations resources anchored in accountability and transparency with the establishment of a Fiscal Responsibility Commission to ensure the promotion, imp lementation and enforcement of the Act. One good feature of the Act is that it â€Å"†¦ also have a mechanism through which it can be adequately enforced because our greatest problem in this country is not making laws but enforcing them† (www. budgetmonitoring. org/Spotlights). Page 6 of 19The Fiscal Responsibility Act (2007) they said is â€Å"the first time in the history of Nigeria where an enactment is accompanied with a body to enforce/implement such policy†¦ † (www. africafront. com/news). Therefore, the problem of constitutional battle as to who is responsible for enforcement as may be witnessed in some aspects of financial corruption cases where the EFCC and ICPC may have to be involved in one and/or similar cases. This clash may mar efficiency and at worst, the purpose of such law. This problem was avoided in the Fiscal Responsibility Act 2007.Powers and Tenor of the Members of the Fiscal Responsibility Commission A body corporate with perpetual succ ession was established and known as the Fiscal Responsibility Council. This body can sue and be sued in its name and is responsible for monitoring and enforcing the provisions of the Fiscal Responsibility Act as well as promote the economic objectives contained in S. 16 of the Constitution of the Federal Republic of Nigeria; see S. 1(1-3). The Fiscal Responsibility Act gives the Council independence and immunity in the performance of its functions; see S. (2 & 3). The immunity might cause the members to indulge in ultravires acts and make them â€Å"untouchable† and â€Å"small gods† during their stay in office. Some officeholders may use them to witchhunt their enemies. Therefore, they will be more effective and fair in their judgements if they are answerable to their actions during their stay in office. Page 7 of 19 The Fiscal Responsibility Act gives the Council powers to establish and maintain a fund for the purpose of defraying its expenditures including amount pa yable to the members of the Board of the Council.The major sources of fund for the council include budgetary allocation from the Federal Government, grants from others sources. The funding of the council is a mandatory obligation of the Federal Government; see S. 4(2) . Being that the Commission gets its funds from mandatory Federation Account Allocation; the presidency will have minimal influence on their actions; though the presidency appoints the Chairman (see S. 5) The Act states that the Chairman and members of the Board shall hold office for a single term of four (4) years; see S. 5(5).This may mar continuity since all the board members have to vacate office at the same time. S. 10 of the Act mandate the Board to prepare and submit an annual report containing its activities including all cases of contravention investigated during the preceding financial year, and shall include in the report a copy of its audited report and account for the preceding financial year. This section of the Act makes the body to be â€Å"forcefully† accountable and transparent to the public. This implies that any corrupt fiscal activity not uncovered before the end of a certain financial year under which such ncidence occur might make the public to view the body as corrupt in themselves and be probed. Therefore, for the sake Page 8 of 19 of personal reputation, the members of the board might want to be transparent in their dealings. Also, the Act requires the Board to submit an audited annual financial report to the National Assembly. This checks the Board’s financial excesses and may put them on track of financial transparency. This Act builds up a regulatory framework for the fiscal affairs of public office holder with the Fiscal Responsibility Council (FRC) as the regulator; see S. 7(5). But the Act did not give express powers the FRC to demand financial returns and to do onsite financial supervision on the financial affairs of the Federal, State and Local Gove rnments and their agencies and corporations. The body will be more effective and efficient if they could check financial affairs of public office holders in the manner the CBN, the NDIC and the SEC do to banks and other financial institutions and firms whose securities are traded on the floor of the .Stock Exchange Market. Appointment of Members of the Council The Act states the each zone of the federation shall produce one representative for the Board of the Commission. It gives the State Governors of each zone the prerogative of nominating the representative; see S. 5(2e). This Act did not state the quantification and social standing of this member. This may cause the nomination to be based on political rather than academic and Page 9 of 19 social factors.This is capable bringing in politicking into the nomination as some political office holders may want to use the position as a spy and protection against his/her anomalies in office during his/her tenor. Fiscal Uniformity The Act states that the States and Local Governments shall plan the management of their fiscal affairs within the medium-term framework as prepare by the Commission for the Federal Government; see S. 17 (1). They may modify the provisions of sections 11,12,13, 14, 15 and 16 as appropriate for them. Virginia Major in www. budgetmonitoring. rg/Spotlights posited that it is important that the Act apply to all levels of government equitably. The Act sets out a general framework for budgetary planning, execution and reporting that is applicable to all levels of government. It was expected that through consultation with states and councils, the Act will set general targets and limits for selected fiscal indicators for the country with specific sanctions for non-compliance. Also it aims at high transparency and reporting standards for all the levels of government (www. budgetmonitoring. org/Spotlights).In view of that the President – Umaru Musa Yar Adua immediate after singing the bill int o law commented thus: Page 10 of 19 †¦ â€Å"I have assented to the Fiscal Responsibility Bill after due consultation with the State Governments whose support and concurrence is critical to the successful nationwide implementation of the provisions of the law (Nwanma, Vincent, 2007). The President – Umaru Musa Yar Adua further said that if the states governments in the federation pass equivalent laws it will tighten up their budgeting procedures at the state level.Therefore, for the Fiscal Responsibility Act to be effective, the reforms it introduces must also be adopted at state level. The Act religiously set out rules with the core objective of committing all tiers of government to a well-defined and structured economic regime which would ensure economic growth and maintain economic stability. Daily Independent (Lagos), (2009) reported that the apathy being displayed by many state government with respect to passing the Fiscal Responsibility and Public Procurement (FRP P) laws in their domains is both inexplicable and disgraceful.It said that for more than two years later – and despite the repeated urging of the Federal Government, civil society groups and well-meaning Nigerians – response by many states remains tepid and perfunctory. A report recently released by the Secretariat of the Governors’ Forum in Abuja indicates that only 11 states have so far passed the Fiscal Responsibility Page 11 of 19 Bill into law, while 12 have enacted the Public Procurement Law (Daily Independent, 2009).Both laws are designed to ensure prudent management of public resources and enthrone accountability and transparency in the conduct of government business by curbing corrupt behaviour. The states reported to have passed and signed both bills into law are Abia, Bauchi, Cross Rivers, Delta, Ebonyi, Gombe, Kaduna, Kogi, Ondo and Osun. Three states governors have not forwarded any of both bills to their houses of assembly for legislative work to c ommence on them. They are Akwa Ibom, Edo and Enugu states (Daily Independent, 2009).It may be noteworthy to state here that the Act will be more effective and efficient if all the tiers of governments could adopt and practice the contents of this Act. Fiscal Control on Borrowing S. 49 (1) states that any government in the Federation or its agencies and corporations desirous of borrowing shall, specify the purpose for which the borrowing is intended and present a cost-benefit analysis, detailing the economic and social benefits of the purpose to which the intended borrowing is to be applied.Nwanma, Vincent (2007) described this as â€Å"strict controls on government borrowing†. He said that this will make it more difficult for the Federal Government and the state government to borrow money at random in Page 12 of 19 order to plug unexpected gaps in funding. And it specifically bars government from borrowing money to fund routine items of recurrent expenditure such as staff sal aries. Henceforth, the federal and state governments will only be allowed to borrow money to fund new capital expenditure projects such as power stations and oil refineries and new human development projects.Furthermore, they will only be allowed to borrow on approved terms, laid down by the Fiscal Responsibility Act. These are designed to guarantee that all new government loans are contracted on competitive terms – at reasonable rates of interest and with excessive fees and commissions. The new law imposes conditions on new borrowing which are designed to ensure that any government agency contracting a loan will have the means to repay it. If all borrowings are tied to cost-benefit analysis, government projects will tend to be selected based on their contribution to economic development.This will aid the achievement of the (Vision 2020) of the President Yar Adua administration. Protection of Office Holders According to one time Anambra State Commissioner for Finance (in 2007 ), Eze Echesie, the Anambra state government opposes the bill (when it was proposed) on the grounds that it is against the principle of fiscal federalism Page 13 of 19 practiced in Nigeria. According to him, â€Å"the bill should be restricted to the national level, which is, planning and budgeting as they relate to the Federal Government. It should not cover the state†.He further added that the Association of Commissioners of Finance in Nigeria are opposed to the bill saying that: â€Å"We will end up sending commissioners of finance to jail – and we have said that we do not want to go to jail. He pointed out that a state governor makes all the financial decisions †¦ but while the governors enjoy immunity, the commissioners – who are the accounting officers and execute government policies – do not. † www. budgetmonitoring. org/Spotlights The Act gives the President, State Governors, Local Government Council Chairman and the Members of the Boa rd immunity during their stay in office.But, the Minister of Finance and Commissioners of Finance at the state level are (and the treasurer at the Council level) not given immunity during their tenor. This they see as a flaw since the Minister, Commissioners of Finance and treasurer of the Local Government are responsibility and accountable for public revenues and spending. The Nigerian fiscal policy allows the presidency and state Governors to most times, spend monies without the approval of the Minister or Commissioner of Finance. Www. budgetmonitoring. rg/Spotlights noted that correcting the fiscal responsibility of the commissioners of finance will affect the efficacy of the laws at the state level. Page 14 of 19 Consequences of the FRA 1. Firstly, it should avoid a fresh build up of external and internal debt to the point where the Nigeria government can no longer meet its repayment obligations. The president (or through the Minister of Finance) on the advice of the Debt Manage ment Office is expected by the Act to set limits on borrowings for Federal, State and Local Governments with three months to the commencement of this Act; see S. 7 (1). This set limit forms the basis for external and/or internal borrowing by all tiers of government. Any government that does not meet this requirement cannot borrow more fund internally or externally; see S. 47 (7). 2. Secondly, it should improve the chances of government projects being funded and completed on schedule. The Act makes case for planned projects. It requires that projects be properly planned and budgeted for. This includes the cost-benefit analysis and time frame for completion of the project, which have to incorporate due process.This means that the office holder who initiates a project must state in objective term its success before ever embarking in it. (All men are answerable to projects they started whether still in the office or not). Key Features of the Fiscal Responsibility Act The Act provides fo r a comprehensive budgetary planning process derived from Medium Term Expenditure Framework (MTEF). This is a tool for Page 15 of 19 linking policy, planning and budgeting over the medium-term – usually three years – at a government wide level.An MTEF takes account of government’s long and medium term strategies and the resources available to meet objectives over a three year time span. It also allocates resources to strategic priorities among and within sectors and it commences with the preparation of a macroeconomic framework and guidelines. It equally ensures that annual revenues and expenditures estimates are consistent with its provisions, which requires that rules on cost, cost control and evaluation of results of programmes financed are observed.The MTEF will be updated annually to reflect policy and macroeconomic changes. The principal components of the MTEF are as follows: medium-term revenue framework; medium-term expenditure framework; fiscal strategy paper spelling out the fiscal strategy for the planning term; medium term sector strategies with projects and programmes linked to long and medium term plans, which will, in turn, feed into the annual budget ad submission of a comprehensive Appropriation Bill ensuring all parameters are abided by.Already the MTEF is being implemented at the federal level. The Act seeks to codify this comprehensive planning framework (Minister of Finance – Nenadi Usman). Page 16 of 19 Conclusion The Fiscal Responsibility Act 2007 has provided a yardstick for financial prudence, accountability and transparency that might engender continued economic growth and development. It is the first law in the country to be backed up with a body for implementation. It is also designed to harmonise and encouraged economic planning and control mechanism.Planning we know is sine qua non to success, therefore, we may say that the beginning of constitutional, conscious, objective and harmonised economic planni ng through the Medium Term Expenditure Framework is a step toward sustainable economic development for the nation. The Act has put a strategized stop to excessive, unarticulated and uneconomical borrowing that most times ends in accumulated debts that drag the nation backward. The Act touches crucial areas in our political and economic life that incite and nurture corrupt practices. We can say that the Act is capable of abating corruption in the country.All in all, it is hoped that Nigeria’s Fiscal Responsibility Act will strengthen the nation’s financial reporting and ensue better management of its resources. As such, it will provide the much needed deterrent to stop public officers dipping their hands in the states till. Page 17 of 19 Recommendations 1. The immunity given to the members of the Fiscal Responsibility Council should be removed. As a regulatory and supervisory body to the fiscal activities of public officeholders, they should operate as the CBN, NDIC and SEC who monitors the activities of banks and security markets respectively with office immunity. . There should be a permanent secretary for the Board who shall also be an employee of the Council. Since all the members of the Board are made to vacate office at the same time (capable of marring continuity), the secretary will act as a returning office as well as secretary of the Board. 3. The Act should make provision for express powers for offsite and onsite supervision of public officeholders. Page 18 of 19 References Afemikhe, S. O. (2005). Budget Implementation and Value for Money: The Due Process Experience. Ibadan: Spectrum Books Ltd.Daily Independent(Lagos), (2009). Nigeria: The Fiscal Responsibility Disgrace. 15 September. http://allafrica. com/comments/list/aans/post/id/20090915 0578. html. FISCAL RESPONSIBILITY BILL: RISING HOPES IN THE HORIZON http://www. budgetmonitoring. org/Spotlights/2007/02/26/News11618/ http://www. africafront. com/news/136/group_urges_nigerain_gove rnment_to_en force_the_fra. html Nwanma, Vincent (2007). Fiscal Responsibility – Don’t Spend Money Unless You Have It. http://www. budgetmonitoring. org/Spotlights/2007/12/13/ News12271/ Page 19 of 19