Evaluating Compensation Strategy and Incentive Plans

Evaluating Compensation Strategy and Incentive Plans 1.1.0 Introduction It has become more and more important, especially in the current conditions following the credit crunch for organisation to monitor and control labour costs, whilst striving for increased productivity, better quality and good customer service. For this reason; there has been need to review strategies, if not bring in new strategies towards employee compensation and incentive schemes. In this competitive environment, companies are looking to recruit and retain high performing and highly committed employees and taking note that this comes at a cost, but a cost justifiable enough to ensure competitive advantage and success of the organisation. Michael H. Schuster, P.H.D on Aligning Compensation Strategy notes that Companies are examining the method and basis for compensating employees, there has been a growth in the number of companies seeking to develop high performance, high committed work systems, based upon expanded roles for employees, require that employees accept more responsibility and accountability. Therefore employee compensation is an important element to the financial success of the organisation. A strong emphasis is placed on the fact that compensation and reward schemes should transparently reflect the financial potential of the company and align it to the organisation strategy and objectives. In the past, wages and salaries usually grew only by a consistent and constant spinal point. More recently, there has been a growth where the labour market has become more and more aggressive and has brought about the notion that compensation and incentive packages must be competitive enough to attract and retain well skilled workers. 2.1.0 Compensation Strategy As all strategies for any organisation, the ultimate goal and objective is to maximise the wealth for shareholders. The compensation strategy should take into consideration that; They should clearly implement a value based company management system. The long term appreciation and capital value of the company Market conditions and orientation of engaging qualified and skilled workers And important aspect is the cost of the strategy to the organisation. Compensation is one of the main concerns to secure the high performance of the organisation. There is no understatement in saying that organisations perform because of the work being carried out and accomplished by the people it employees, and therefore they make the difference. In saying this, it is important to note that protecting human capital is crucial, and this is done through motivation, recognition, an appropriate reward and compensation scheme. An obvious and important element to consider in the strategy is the possible analysis of the cost of executive and employee compensation will cost the organisation. This will be concentrated on the opportunity cost to the company of the stock and performance based parts. The cost in this case to the company would therefore be the foregone resources on the compensation agreement. It is said that money is a powerful source of motivation. But its also said that salary increase can only motivate until the next pay increase is due. An element of any organisations compensation strategy is to always reflect the strategic business objectives. The objectives and goals should be clearly defined, making them achievable through the compensation structure. As stated earlier and reemphasised now, the compensation plan should be integrated with the performance objectives of the organisation and with the employees individuals goals. 2.1.1 Core Elements of Compensation Strategy An intensive analysis needs to be carried out on the organisation framework, this will be able to establish and reflect the demands of the future business development and which framework conditions will be required to structure an effective compensation strategy. It is even more important to define the management and operative levels taking into account value orientation. As well as the objectives that have been set out for each employee and how their performance is evaluated. Therefore clear roles and responsibilities need to be defined and a strong communication system to be put in place to ensure that all employees are aware and know how their performance is reflected into the incentive scheme. Other elements to consider are should be; Generic They should be a buy in into the incentive plan by the employees. It should be designed in such a way that employees at all levels are participative and have the same gaol and direction. Be of significant and Perceived Value to the employee. Employees should be able to easily recognise the potential reward related to performance. Related to Individual Performance As stated by Bob Normand Institute of Smart Business Management. A factor in the determination of how much an individual employee receives should be their performance rating as determined by their formal job review and appraisal. Employee Loyalty A good incentive plan should be able to retain employees and gain their loyalty. Therefore, an incentive plan should foster employee tenure and performance. There are two main streams of rewards being monetary and non monetary. The monetary being the preferred, and is usually a Pay-For-Performance scheme. Types of performance based pay are; Stock based This will include stock options and grants, equity shares. Cash Compensation These are usually bonuses and are related to the achievement of performance objectives and goals that were set out. Cash incentive is the most common and preferred form of an incentive scheme. An effective compensation strategy if implemented successfully can fulfil other objectives. This has been summarised in the table below; Objective Result Alignment to the strategy of business units. Strong market position. Strengthens the performance and is result oriented. Competitive Advantage Enable organisation change and flexibility to adapt to changed business situation. Success and forward moving organisation. Promotes motivation and loyalty Retaining of highly skilled employees. Controversy Over incentive schemes 1Over the past years, and more recently the past 2 years, where the economy experienced a depression and a down turn in the market for most industries, there have been continued sensitive arguments over corporate executives compensation and how they align to the firms performance. Holmstrom 1979,  [2]  looked at the contribution that made clear the trade off between risk and incentives in the moral hazard problem. This study was partly based on his unpublished dissertation. The media, public, politicians have raised concerns over the current executives compensation packages that seem to drive employees towards taking short term risks, without taking into consideration the long term repercussions and effects on their organisation. As a result of this, there have been regulations being put on the table that look at restricted stock pay options and maximum level cash incentive, or other types of compensation that will focus more on long term performance. This will push executives to always base their investment and finance decisions with the shareholders best interest at hand. There will have to be a strong correlation between long term incentive compensation and the future firm performance. With the emphasis on transparency, CEOs pay is usually publicized in the press in papers and magazines such as Fortune Magazine that has an annual ranking of the highest paid CEOs. It has been observed that the firms that pay their CEOs the highest are organisations that tend to be the ones experiencing high returns, and high operating performance in comparison to others. 4.1.0 Performance Measurement and Incentive Schemes Leonard, 1990 and Hayes and Schaejar 2000, looked at the studies that focussed on the relationship between pay and the future accountancy performance of the organisation. There has been an assumption that in efficient markets, executives and investors will capitalise the present value of future firm performance increase into the stock price. The question is always 2 how do you align strategic performance measures and results to compensation and incentive plans?. The first question to ask when designing a bonus plan that replicates the incentive of an owner is how to measure business performance. The right measure of corporate performance will have strong ties to the amount of additional wealth that a company produces for its shareholders and by extension for society at large. It will guide people to make the decisions that will generate the added value necessary to fund their bonus, to re w a rd the shareholders and to reinvest in business growth. They are several models that organisations can use to measure the performance and determine the level of incentive to be paid out to executives and employees. Strategic Performance Measurement (SPM) System This measurement translates the business strategies and objectives into deliverable results. The advantage of this model is that it combines the financial, strategic and operating measures and compares it against how well an organisation meets its objectives, goals and the targets. Economic Value Added (EVA) / Value Based Management This model emphasises on performance measurement and the cost of capital and measures the value created for shareholders. The main advantage of this measure is that its focus is on wealth creation. Balanced Scorecard System Its core element is its emphasis on the key business drivers such as customer and employee satisfaction, operational excellence and new product development. 4 As strongly supported by Stern and Co. Economic Value Added offers more to an organisation as it focuses on measuring value created for shareholders, which is the essence and objective of any organisation; to create wealth for its shareholders. This measure is also focuses more towards the capital markets and assists in developing organisation strategies at all levels of the organisation. 5 Other advantages of EVA as a measurement tool are; It creates measurable objectives and goals for employees and are specific It can easily align the operations and business units with the overall corporate strategy. EVA can link individual performance and compensation plans to business strategies. 5.1.0 Relationship between Stock Price Performance and Incentive Schemes The hypothesis by a paper written by M. Cooper, H. Gulen and P. Ray Performance for Pay? looked at the relationship between CEO incentive compensation and future stock price performance. They summarised that The efficient market hypothesis suggested that markets capitalise incentive pay grants into the stock price at the announcement day, resulting in no relation between incentive pay and future stock price performance. On the other hand, the optimal incentives hypothesis suggests that whilst compensation and incentive schemes can be aligned to managerial interests with shareholders value wealth creation and maximisation, investors may not necessarily react to the information. This could be as a result of not understanding the incentive strategy, and not having the right measurement model to gauge it against. Therefore investors are not able to observe or attain the value it may have to the organisation future stock price performance.  [6]  7A positive relation may be evaluated between the incentive pay and the future stock price performance. 8Needless to say, based on studies carried out in the past and present on the relationship between Stock Price Performance and Incentive Schemes, there is not much direct evidence that shows that incentive plans do lead to a companys improvement in future stock price performance. One of the challenges of stock returns are they having shareholders expectations imbedded in them. Other challenges are that economic theory would not be able to predict that increase in incentives would lead to increase in profitability. 9 A much earlier study by Masson 1971 linking financial incentive to future performance of the organisation, his findings were that firms and organisation that had attractive financial incentives showed a better stock market performance during the post-war period. Conclusion Due to the increased competition of business, it has subsequently increased the competition for employing skilled workers, and retaining them. A compensation strategy creates and brings about a unified culture, and offers corporation and advances the implementation of the business strategy. This will essentially promote performance and employees will be result oriented. Incentive plans should be reviewed annually to analyse if they are actually effective and increasing the performance of the organisation and meeting the strategic objectives. This involves looking at any accomplishments and the desired outcome. Despite the soaring pay, many experts argue that the system is working better than ever. They see the bull market and healthy corporate sector as proof positive that companies get what they pay for. (Business Week April 21, 1997, p.p 60) Performance based pay is the best incentive strategy for any organisation as it maximises on the strategic plan, as the compensation strategy requires that the plan is set on organisation goals and objectives. This has a major influence on the employees. Pay for performance has been cited to be a more motivating factor, both short term and long term incentives.  [10]  A study carried out established that employees showed a more positive work attitude with a pay for performance incentive. Other benefits of a pay for performance incentive scheme is the pay receives special treatment in some contexts. This is under the Internal Revenue Code (IRC). Essentially, at the end of it all, the compensation strategy and incentive plans main purpose is to: Attract and retain employees. Motivate and establish loyalty towards the company. Making sure the cost of the strategy is line. Encourage peak performance.

Reflective Leadership Plan

A person with average charisma can be a superior leader. I consider myself to be a leader with average charisma and I am set on changing the world. I am a leader who has an exceptional relationship with my followers and it goes beyond setting goals, using resources, and conducting business (Nahavandi, 2006). My students do not see me as merely an Instructor but as role model and/or hero. One characteristic that defines charismatic leaders is their self-confidence in their own abilities and in the correctness and the moral righteousness of their beliefs and actions (Bass, 1985).Whereas noncharismatic leaders doubt themselves in the face of failure and criticism, charismatic leaders seem to know they are right and project that confidence. My high level of confidence in their actions motivates my students and creates a self-fulfilling prophecy. Along with a high level of self-confidence, I exhibit high energy levels. I am enthusiastic about my ideas and actions, I am highly expressive, and I use my nonverbal cues to lend support to my students’ verbal messages.Charismatic leaders are masterful impression managers (Conger, 1989 House, 1977). They surround themselves with dramatic and mystical symbols that further enhance the image of the leader as a larger-than-life figure. I believe that we are born with the traits to become great leaders. Leadership can come in different forms and from all backgrounds. Having all the right conditions in place will not guarantee leadership. I have come across leaders with all the right conditions who failed by performance when given the opportunity.I have also come across the uneducated with no support system who becomes business owners and community leaders. First, leadership is a group phenomenon; there can be no leaders without followers. Leadership always involves interpersonal influence or persuasion. Second, leadership is goal directed and plays an active role in groups and organizations. Leaders use influence to guid e others through a certain course of action or toward the achievement of certain goals. Third, the presence of leaders assumes some form of hierarchy within a group.As far as my leadership style goes. I am more task oriented, according to the â€Å"What’s my Leadership Style Assessment†. I have little concern for people and more concern for completing the task. My leadership style would not work because I need more balance between the tasks and the people. This is something I would have to work on. My goal is to be a charismatic transformational leader. My current leadership style would create a problem in an organization. Gaining concern for the people would be one way my leadership style would become more effective.Getting more involved in the wants and needs of the people could aid in transforming my leadership style. I would also like to hear suggestions from my followers. As a transformational leader, I would have to bring about change, innovation, and entrepreneu rship. Transformational leaders are social and are capable of being learned and managed. It's a leadership process that is organized. The process consists of meaningful searches for change, orderly analysis, and the ability to move resources from areas of lesser to greater productivity.Strategic transformation of an organization is not something that happens exclusively through the unique behavior of charismatic intellects, it is a discipline with a set of predicted steps. Transforming an organization to make it strategically economical is a multifaceted task. However, the proof that has been gathered shows that transformation can be thought about and acted on within a framework that's easy to understand (Tichy and Devanna, 1990). To help in the development of my leadership style I would like to transform an organization.Though this may be a challenge, I know that it will involve both joys and sorrows. Winning/beating the competition is exciting, but it's painful to lay off workers, sell off businesses, and disrupt traditions. These occurrences are often part of a renewal, for what worked in the past may have become the cause of failure in the present. Transforming an organization also requires new vision, new frames for thinking about strategy, structure, and people. Some entrepreneurs can start with a clean slate, but transformational leaders begin with what is already in place.They are like architects who must redesign outmoded factories for a new use (Tichy and Devanna, 1990). Transformational Leadership Theory states that transformational leaders provide people with support by engaging with them in a way where the leaders and followers raise each other to higher levels of motivation and morality (Burns, 1978). Leaders encourage followers to accept the disappointments without feeling as if they had failed at specific tasks As a future transformational leader, I must identify myself as a change agent.My image, both professional and personal, is to make a di fference in the organization and to transform it. I must be a courageous wise risk taker, who is not afraid to take a stand. I will believe in my people and have sensitivity them but yet powerful which leads to the empowerment of them. My drive is value and I will be able to articulate a set of essential beliefs and show behavior that is quite constant with my positions. I am a lifelong learner with the ability to talk about my mistakes so that I can correct them. I will have a gift to deal with complexity, ambiguity, and uncertainty.I will learn to cope with problems in a tough, altering economy. And have a vision of what I want in my organization and be able to translate those dreams and images so that other people could share them (Tichy and Devanna, 1990). Transformational leaders are supportive of their people by helping them to replace past glories with future opportunities. This will happen only if they are able to acknowledge individual struggle that has come from a sense of loss in the transition. Leaders should encourage employees to accept the failures without feeling as if they had failed.It does not help to treat transitions as if the past did not exist. The past will hold the key to understanding what went wrong as well as what worked and can frequently provide a useful map to the future. Transformational leaders are being asked to address not only economic issues but also moral issues. Transformational leaders must be prepared to deal with a world in which resources are increasingly scarce and change happens more rapidly. All of the traits of a charismatic transformational leader are areas that I need to work on to become my best.This will be overcome by my class teachings and readings. To ensure that I am on the right path, I will implement a survey that will be administered to my followers. This survey will entail all of the key aspects of becoming a charismatic transformational leader. Depending on the results of the survey, I will make adjus tments accordingly. Although competence and cognitive ability might be keys for success when working alone, leadership requires successful interaction with others and the ability to motivate them to accomplish goals. I can be the first to admit that I work better alone.I feel that I can get the job done faster when there are no interruptions. EI/EQ is a central factor in several leadership processes, particularly in the development of charismatic and transformational leadership, where the emotional bond between leaders and followers is imperative. Being able to empathize with followers can further allow me to develop followers and create a consensus. Some researchers suggest that emotional intelligence contributes to effective leadership because an emotionally intelligent leader focuses on followers, on inspiring them, and on developing enthusiasm (George, 2000). Reflective Leadership Plan A person with average charisma can be a superior leader. I consider myself to be a leader with average charisma and I am set on changing the world. I am a leader who has an exceptional relationship with my followers and it goes beyond setting goals, using resources, and conducting business (Nahavandi, 2006). My students do not see me as merely an Instructor but as role model and/or hero. One characteristic that defines charismatic leaders is their self-confidence in their own abilities and in the correctness and the moral righteousness of their beliefs and actions (Bass, 1985).Whereas noncharismatic leaders doubt themselves in the face of failure and criticism, charismatic leaders seem to know they are right and project that confidence. My high level of confidence in their actions motivates my students and creates a self-fulfilling prophecy. Along with a high level of self-confidence, I exhibit high energy levels. I am enthusiastic about my ideas and actions, I am highly expressive, and I use my nonverbal cues to lend support to my students’ verbal messages.Charismatic leaders are masterful impression managers (Conger, 1989 House, 1977). They surround themselves with dramatic and mystical symbols that further enhance the image of the leader as a larger-than-life figure. I believe that we are born with the traits to become great leaders. Leadership can come in different forms and from all backgrounds. Having all the right conditions in place will not guarantee leadership. I have come across leaders with all the right conditions who failed by performance when given the opportunity.I have also come across the uneducated with no support system who becomes business owners and community leaders. First, leadership is a group phenomenon; there can be no leaders without followers. Leadership always involves interpersonal influence or persuasion. Second, leadership is goal directed and plays an active role in groups and organizations. Leaders use influence to guid e others through a certain course of action or toward the achievement of certain goals. Third, the presence of leaders assumes some form of hierarchy within a group.As far as my leadership style goes. I am more task oriented, according to the â€Å"What’s my Leadership Style Assessment†. I have little concern for people and more concern for completing the task. My leadership style would not work because I need more balance between the tasks and the people. This is something I would have to work on. My goal is to be a charismatic transformational leader. My current leadership style would create a problem in an organization. Gaining concern for the people would be one way my leadership style would become more effective.Getting more involved in the wants and needs of the people could aid in transforming my leadership style. I would also like to hear suggestions from my followers. As a transformational leader, I would have to bring about change, innovation, and entrepreneu rship. Transformational leaders are social and are capable of being learned and managed. It's a leadership process that is organized. The process consists of meaningful searches for change, orderly analysis, and the ability to move resources from areas of lesser to greater productivity.Strategic transformation of an organization is not something that happens exclusively through the unique behavior of charismatic intellects, it is a discipline with a set of predicted steps. Transforming an organization to make it strategically economical is a multifaceted task. However, the proof that has been gathered shows that transformation can be thought about and acted on within a framework that's easy to understand (Tichy and Devanna, 1990). To help in the development of my leadership style I would like to transform an organization.Though this may be a challenge, I know that it will involve both joys and sorrows. Winning/beating the competition is exciting, but it's painful to lay off workers, sell off businesses, and disrupt traditions. These occurrences are often part of a renewal, for what worked in the past may have become the cause of failure in the present. Transforming an organization also requires new vision, new frames for thinking about strategy, structure, and people. Some entrepreneurs can start with a clean slate, but transformational leaders begin with what is already in place.They are like architects who must redesign outmoded factories for a new use (Tichy and Devanna, 1990). Transformational Leadership Theory states that transformational leaders provide people with support by engaging with them in a way where the leaders and followers raise each other to higher levels of motivation and morality (Burns, 1978). Leaders encourage followers to accept the disappointments without feeling as if they had failed at specific tasks As a future transformational leader, I must identify myself as a change agent.My image, both professional and personal, is to make a di fference in the organization and to transform it. I must be a courageous wise risk taker, who is not afraid to take a stand. I will believe in my people and have sensitivity them but yet powerful which leads to the empowerment of them. My drive is value and I will be able to articulate a set of essential beliefs and show behavior that is quite constant with my positions. I am a lifelong learner with the ability to talk about my mistakes so that I can correct them. I will have a gift to deal with complexity, ambiguity, and uncertainty.I will learn to cope with problems in a tough, altering economy. And have a vision of what I want in my organization and be able to translate those dreams and images so that other people could share them (Tichy and Devanna, 1990). Transformational leaders are supportive of their people by helping them to replace past glories with future opportunities. This will happen only if they are able to acknowledge individual struggle that has come from a sense of loss in the transition. Leaders should encourage employees to accept the failures without feeling as if they had failed.It does not help to treat transitions as if the past did not exist. The past will hold the key to understanding what went wrong as well as what worked and can frequently provide a useful map to the future. Transformational leaders are being asked to address not only economic issues but also moral issues. Transformational leaders must be prepared to deal with a world in which resources are increasingly scarce and change happens more rapidly. All of the traits of a charismatic transformational leader are areas that I need to work on to become my best.This will be overcome by my class teachings and readings. To ensure that I am on the right path, I will implement a survey that will be administered to my followers. This survey will entail all of the key aspects of becoming a charismatic transformational leader. Depending on the results of the survey, I will make adjus tments accordingly. Although competence and cognitive ability might be keys for success when working alone, leadership requires successful interaction with others and the ability to motivate them to accomplish goals. I can be the first to admit that I work better alone.I feel that I can get the job done faster when there are no interruptions. EI/EQ is a central factor in several leadership processes, particularly in the development of charismatic and transformational leadership, where the emotional bond between leaders and followers is imperative. Being able to empathize with followers can further allow me to develop followers and create a consensus. Some researchers suggest that emotional intelligence contributes to effective leadership because an emotionally intelligent leader focuses on followers, on inspiring them, and on developing enthusiasm (George, 2000).

The Missouri Compromise Background and Map

The Missouri Compromise was the first of the major 19th-century attempts by Congress intended to ease regional tensions over the issue of slavery. While the deal hammered out on Capitol Hill accomplished its immediate goal, it only served to postpone the eventual crisis that would ultimately divide the nation and lead to the Civil War. A Nation Sundered by Slavery In the early 1800s, the most divisive issue in the United States was slavery. Following the American Revolution, most states north of Maryland began programs of gradually outlawing the practice, and by the early decades of the 1800s, slave-holding states were primarily in the South. In the North, attitudes against slavery were growing increasingly strong, and as time passed the passions over the issue threatened repeatedly to shatter the Union. The Missouri Compromise of 1820 attempted to resolve the question of whether or not slavery would be permitted in new territories being admitted as states to the Union. As part of the agreement, Maine would be admitted as a free state and Missouri as a slave state, thereby preserving the balance. With the exception of Missouri, the act also banned slavery in areas north of the 36 ° 30†² parallel. The legislation was the result of a complex and fiery debate, however, once enacted, it did seem to reduce tensions—for a time. The passage of the Missouri Compromise was significant as it was the first attempt to find some resolution to the issue of slavery. Unfortunately, it did not solve the underlying problems. After the act went into effect, slave states and free states with their firmly ingrained beliefs remained, and the divisions over slavery would take decades, along with a bloody Civil War, to resolve. The Missouri Crisis The events leading up to the Missouri Compromise began with Missouris application for statehood in 1817. After Louisiana itself, Missouri was the first territory within the area designated by the Louisiana Purchase to apply for statehood. The leaders of the Missouri territory intended the state to have no restrictions on slavery, which aroused the ire of politicians in northern states. The â€Å"Missouri question† was a monumental issue for the young nation. When asked for his views on it, former president Thomas Jefferson wrote: This momentous question, like a fire bell in the night, awakened and filled me with terror. Controversy and Compromise New York Congressman James Talmadge sought to amend the Missouri statehood bill by adding a provision stating that no more slaves could be brought into Missouri. Talmadge’s amendment also proposed that the children of slaves already in Missouri (which were estimated at about 20,000) be set free at the age of 25. The amendment provoked enormous controversy. The House of Representatives approved it, voting along sectional lines. However, the Senate rejected it and voted there would be no restrictions on slavery in the State of Missouri. Meanwhile, Maine, which was set up to be a free state, was being blocked from joining the Union by Southern senators. The matter was eventually worked out in the next Congress, which convened in late 1819. The Missouri Compromise dictated that Maine would enter the Union as a free state, and Missouri would enter as a slave state. Henry Clay of Kentucky was Speaker of the House during the Missouri Compromise debates and was deeply engaged in moving the legislation forward. Years later, he would be known as The Great Compromiser, in part because of his work on the landmark deal. The Impact of the Missouri Compromise Perhaps the most important aspect of the Missouri Compromise was the agreement that no territory north of Missouri’s southern border (the 36 ° 30 parallel) would be allowed to enter the Union as a slave state. That part of the agreement effectively stopped slavery from spreading to the remainder of the area included in the Louisiana Purchase. The Missouri Compromise, as the first great federal agreement over the slavery issue, was also important in setting the precedent that Congress could regulate slavery in new territories and states. The question as to whether the federal government had the authority to regulate slavery would be hotly debated decades later, especially during the 1850s. The Kansas-Nebraska Act The Missouri Compromise was ultimately repealed in 1854 by the Kansas-Nebraska Act, which effectively eliminated the provision that slavery would not extend north of the 30th parallel. The legislation created the territories of Kansas and Nebraska and allowed the population of each territory to determine whether or not slavery would be permitted. This led to a series of confrontations that became known as Bleeding Kansas, or the Border War. Among the anti-slavery fighters was abolitionist John Brown, who would later become famous for his raid on Harpers Ferry. The Dred Scott Decision and the Missouri Compromise Controversy over the slavery issue continued into the 1850s. In 1857, the Supreme Court ruled on a landmark case, Dred Scott v. Sandford, in which enslaved African American Dred Scott sued for his freedom on the grounds that he had lived in Illinois, where slavery was illegal. The court ruled against Scott, declaring that any African American, enslaved or free, whose ancestors had been sold as slaves could not be an American citizen. Since the court ruled that Scott was not a citizen, he had no legal grounds to sue. As part of its decision, the Supreme Court also declared that the federal government had no authority to regulate slavery in the federal territories, and ultimately, led to the finding that the Missouri Compromise was unconstitutional.

Role Of Business In Nigeria - 795 Words

Chairman of Heirs Holding, Tony Elumelu, has said that the federal government’s Ease of Doing Business in Nigeria initiative can only work when the three arms of government, the executive, the judiciary and legislature, work together to put up right business policies that will prepare Nigeria as investment destination. Elumelu, stated this in a key note address at the 2017 National Insurance Conference organised by the Insurance Industry Consultative Council ( IICC) in Abuja. Speaking on the theme, ‘Nigeria Open for Business’, Elumelu, said capitals for business go where they are welcomed therefore for Nigeria to promote, attract and retain investment, it must position itself to promote domestic business which will in turn attract foreign†¦show more content†¦Ã¢â‚¬Å"We must be willing to expand the insurance market beyond the upper class and formally employed market, to the middle and lower income market. Doing this, means that our distribution channels must be innovative, considering product features, cost, proximity and all other relevant factors. Alternative distribution channels can also be considered including the use of aggregators to facilitate the sale of group insurance to an existing membership base such as market associations, savings cooperatives, and mobile network operators†, she stated. Adeosun, also said that selling insurance policies can be done through mobile phones, adding, â€Å"in order to achieve sustainable and inclusive growth, we must reach the rural areas and the unbanked. We must achieve financial inclusion, deepening insurance penetration through financial inclusion would include, developing the technical capacities to meet the emerging challenges of financial inclusion and micro-insurance. This therefore, calls for more dynamic strategies to deepen the insurance reach.† Earlier in his welcome address, the Commissioner for Insurance, Mohammed Kari, said that insurance is a vital link in the vast chain of business activities in any economy. He said it is also the best vehicle for reducing economic loss as well as serves as a stabiliser and promoter of an economy’s commercial activities. Kari said:Show MoreRelatedSwot Analysis Of Nigeria1587 Words   |  7 PagesNIGERIA COUNTRY BACKGROUND Nigeria is a developing country located in West Africa. It is surrounded by Cameroon, Benin, Niger, and Chad. Its coast is bordered by the Gulf of Guinea. Nigeria has a population of 182.2 million (2015), and it is the most populous country in Africa and seventh in the world (wikipedia.com). Nigeria has a federal republic form of government. Their government is modeled after the United States. 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Larson established a joint venture in Nigeria in 1994, with localRead MoreEconomic Growth And Development Of Lagos And Nigeria958 Words   |  4 Pagesalliances in Asian Countries.. Their development plays decisive role in enhancing economic growth and development. Clustering offers unique benefits and a common feature in majority of firms in Chinese provinces, most of the clusters in Lagos and Nigeria are at different growth stage in their life cycles.( Tambunan, 2005); Rauch et al, 2014) . Lagos state economy makes up a significant proportion of the Gross Domestic product(GDP) of Nigeria despite its small land size, other states with larger land sizeRead MoreThe Hr Management : The Job Of Human Resource Management1146 Words   |  5 Pageshealth insurance for its workers (gully, 2014) In my t/o Chevron Nigeria Limited Chevron Nigeria Limited; They employ people without any discrimination, they train and develop their staffs to improve their skill and help the company grow. They are provided with health insurance which include their families also. They also reward their staffs with outstanding performance in other to allow competition. (Chevron, n.d.) 1c. One of the major role of the line manager is making important decisions and how it