Title: Reflective Model and Belbin Theory. In offering the best services in a healthcare facility, there is the high need to have in place an efficient and effective teamwork that can always be in appropriate position to address various health complications and circumstances (Firth-Cozens, 2001).
Eras are gone when dentists and doctors and other healthcare professionals in health organizations would be in any better position to offer quality healthcare services on their own that could end up fulfilling the expectations of patients. This as an evolutionally has been triggered further by the rising universal demand for new levels of patient care services and this calls for a parallel medical care expertise development which possesses huge focus on teamwork strategy that is essentially centered on the patient outcomes (Belbin, 2012).
Deploying the Reflective Model
This idea is contained in the Belbin’s model of roles of a team. Just as significant, one is always about to realize that every function that is needed in order to realize the objectives of the team, they are conducted to completion and in the best possible manner. This paper will reflect on a particular case that happened in a health care setting involving the code blue team in which case a failure in team work and corporation almost put the entire team at risk and in the process liking the life of a patient. The case will further be reflected by use of Gibbs model of “learning by doing.”
Description
When I completed my medical course, I joined the Mega Health facility in the capacity of a nurse specifically as a member of code blue unit. With the code blue team I was made to realize some of the responsibilities and situations that are involved in that particular unit in the hospital environments.
Code blue is a medical term utilized referring that a particular patient suffers from cardiopulmonary arrest that requires quick responses by performing resuscitation with immediate effect. The initial resuscitation process is however required to be conducted by the first medical staff that is present at the time of occurrence. Later, the code blue team is needed to take over the resuscitation treatment.
During this particular day, 65 year old woman was brought to the facility suffering from cardiopulmonary arrest. Unfortunately, at that particular time the nurse on duty was attending to other patients in the ward. I myself was assisting the doctor on another patient who required a chest surgery.
Even though my unit was on heart patients, there were no specified guidelines that gave specific job descriptions of the nurses within the facility. After the patient had stayed for almost five minutes I was called upon to come and assist. As my first time encounter of such an event I called the other nurses in circulation. When the senior nurse finally arrived, she started on checking the patient pulse and compressions.
Since there was no nurse assigned with the documentation and follow up of the patient, one of the nurses sent me to the second respondent to alert them for appropriate preparations. Since it was not recorded I described the patient’s condition as a heart attack.
Feeling
When the patient was finally taken to the second respondent she was directed to the intensive care unit ICU. This was a huge mistake as at that moment the patient required a complete resuscitation procedure conducted to her but it was not done. Later the patient got worse and she was referred to the provincial general hospital where she received the complete resuscitation treatment and she recovered.
It was only then that we realized the poor system in our teamwork within the code blue team and through our director we acknowledge to the family and solved the issue. The general feeling was that an error had been done and the justice of the patient had been compromised
Evaluation
From that incident it was very clear that teamwork in code blue team at our facility was failing and the entire arrangement had not done anything commendable. Understanding of the Belbin’s model is of immense importance for our team to make any improvements. In our team we require specified team positions since this would act as a strategy to deal with our responsibilities and our team members.
First teamwork is very crucial as it would have helped assisted bring a balance of what one does respect to what others are assigned. The other role is on specialist which our team was lacking. If we had a specialist among us they could have contributed to the entire group the technical abilities and knowledge. This in effect will impact positively on the safety of patients and their overall outcomes.
In combination with the Gibbs reflective model, one member of team can assist other members to construct sense of the circumstances so as to make them understand their responsibilities on what they have achieved and what they could improve in the days to come (Quinton, & Smallbone, 2010).
Analysis
In this particular case, the main factor that had hindered a better performance in the code blue team poor teamwork. The poor performance displayed by the team was mainly caused by lack of clear job descriptions for different members of the group. For instance, there was no nurse who was assigned the role of follow up and recording every detail of the patient.
The situation could be improved by laying down clear job description for every member in the team. Additionally, no verbal communication should be allowed whenever directives are conveyed regarding the requirements of patients. Adherence to these improvements would lead to reduced confusion, better understanding of the patients’ needs and thus positive patient outcomes.
Reflective Model Conclusion
After
the incident the close assessment revealed that if a better functional teamwork
with effective control and coordination was in place there could have been positive
outcomes from the situation. Whenever a particular team of workers performs at
its best levels, it becomes apparent to observe that every member in that team
follows a clear guideline which directs them to performing clearly described
responsibilities.
The other crucial role of coordinator was lacking in our team. If this was present, this is the individual who could have checked on the process and assist the other members in clarifying their intent and give a summary of what every individual requires (Clements, Dault, & Priest, 2007).
The need for a universally effective teamwork in healthcare environments is on the rise and this has resulted because of the ever growing co-morbidities and the amounting cases of complexities that require special health care. In Gibb’s theory, this is addressed on description of the situation to the team members.
Action
The
team needed an effective implementer who could have acted a practical manager (Aritzeta,
Swailes, & Senior, 2007). They could ensure that all plans and thoughts are
converted into conveniently executable roles. A mentor would analyze such circumstances
and give the best next step to follow whenever a hitch occur in the process.
Teamwork
is an essential component in a health care facility as it determines the overall
performance and reputation of workers and the organization. Belbin’s theory and
Gibb’s reflective model are important a tool that assists team members to have a
deeper thought and understanding of the manner in which they should respond to
various medial circumstances. In so doing, everyone is able to learn from whatever
happened in the past or in the present so that they can minimize the chances of
the same mistake occurring in the future.
References
Aritzeta,
A., Swailes, S., & Senior, B. (2007). Belbin’s team role model:
Development, validity and applications for team building. Journal of Management
Studies, 44(1), 96-118.
Belbin,
R. M. (2012). Team roles at work. Routledge.
Clements,
D., Dault, M., & Priest, A. (2007). Effective teamwork in healthcare: research
and reality. Healthcare Papers, 7(I), 26.
Firth-Cozens,
J. (2001). Interventions to improve physicians’ well-being and patient care.
Social science & medicine, 52(2), 215-222.
Quinton, S., & Smallbone, T. (2010). Feeding forward: using feedback to promote student reflection and learning–a teaching model. Innovations in Education and Teaching International, 47(1), 125-135.
Did you find any useful knowledge relating to the reflective model and Belbin theory in this post? What are the key facts that grabbed your attention? Let us know in the comments. Thank you.
An instructional theory refers to a theory that provides clear guidance on how to assist individuals learn and develop. Instructional theories center on how to design material for enhancing the education of individuals. They differ from learning theories in the sense that while learning theories explain how learning occurs, instructional theories stipulate how to assist individuals to learn.
Stated differently, instructional theories, as informed by learning theories, delineate the core teaching approaches (such as worked examples versus partial solutions, lecture versus cooperative activities, immediate versus deferred reinforcements) that may be included in a lesson. Instructional theories are usually normative and situation specific. The field of instructional science deals with understanding and improving instructional methods to make them more appealing and effective (Edgar, 2012, p. 2).
The origins of instructional theories can be traced to formative endeavors by educational psychologists to map out the link between psychology and the pragmatic application of instructional theory in education settings. John Dewey (1910) and Edward Thorndike (1913) are two important theorists who envisaged a special connection between instructional theory and educational practice (Dijkstra, Schott, Tennyson & Seel, 2012, p. 3). The connection between the philosophical perspectives and instructional theories is obvious. For instance, learning activities in a traditional classroom are centered on and controlled by the instructor, who presents the materials to be learned and prescribes the kinds of learning activities that students engage in.
Learners are expected to read and analyze the information (through homework and classroom activity) until they master it. Knowledge is regarded as a commodity to be passed from the teacher to the learner. In sum, instructional theories identify methods of instruction (ways of supporting and facilitating learning), as well as the circumstances in which the methods may or may not be used.
A Perspective on the Connection
between Theory and Practice
The connection between instructional theories and pedagogical practices is made complex by a number of factors. It can be perceived that pedagogical practices should be founded on the best instructional theories available, but this relationship may not be as simple. Educational practices are likely to be informed by philosophical beliefs than by empirical evidence and theoretical discernment of learning. Learning institutions are established according to the various cultural and community beliefs and worldviews, the human nature, as well as what are to be learned. They also differ with respect to their beliefs regarding teaching and learning, although philosophical convictions frequently come first (Duffy & Jonassen, 2013, p. 17).
All instructional programs and educational systems incorporate some instructional theory, even though such theory is in most instances implied and frequently goes unnoticed. Vastly different classrooms materialize from different philosophical views. For instance, if one is of the conviction that knowledge is produced anew by each student, that a student’s mental activity decides what he or she learns, and that learning happens from engaging in authentic assignments in a social atmosphere, then the resultant classroom is likely to involve learners working on projects and learning in groups.
In this manner, the students are able to discuss how best to tackle problems or consult on the meaning of various concepts. There is a consistency between theoretical beliefs and pedagogical practices. However, the question concerning which comes first is not always clear since evidence exists that people seek out and agree to information that affirms their preexisting beliefs while rejecting those that do not conform to such beliefs.
There exists a reciprocatory link between theory and practice. A common conviction is that knowledge flows from systematic theories to the advancement of effectual practices, that effective instructional theories inform sound pedagogical practices (Leong & Austin, 2006, p. 7). However, science does not always work in such a linear manner. An examination of both social and physical sciences reveals that ideas frequently derive from observation and interrogation of naturally occurring events. Scientific theories often come from attempts to find practical solutions to problems, such as asking the question “what is the best approach of teaching the concept of osmosis?”.
Established pedagogical practices that teachers have been found to be effectual should be used as sources of ideas in coming up with a practicable instructional theory. A final caveat in comprehending the connection between theory and practice involves acknowledging that the learners are more important than the instructor in deciding the material to be learned. However, this is not to say that the teacher’s role is unimportant, only that the perceptions, previous knowledge, and beliefs of learners should dictate what and if they learn things related to the teacher’s instructional goals.
Attribution Theory
This theory deals with the manner in which individuals perceive and
use information to explain events (Higgins & LaPointe, 2012, p. 1). It
looks at what information is collected and how it is treated to shape a causal
judgment. Heider (1958) first proposed the attribution theory, although other
psychologists such as Weiner (1974) and Jones et al (1972) developed a
theoretical framework that later became a key research model in social
psychology. Heider offered a discourse on what he termed as “commonsense” or
“naïve” psychology. According to his perspective, individuals are similar to
recreational scientists, attempting to understand the behavior of other
individuals by gathering and analyzing information until they obtain a
reasonable cause or explanation.
Instructional Theories – Key Statements and Assumptions
Attribution theory concerns itself with how people construe events and how this construal relates to their thoughts and behaviors. The theory presumes that individuals try to determine why people behave in the manner that they do. An individual seeking to understand why other people or person behaved in a certain manner may attribute one or several causes to the behavior (Erbas, Turan, Aslan & Dunlap, 2010, p. 118). Heider proposed that individuals usually make two kinds of attributions, namely internal attribution and external attribution.
Internal attribution involves the deduction that a person is acting in a certain manner because of some inherent attribute about the individual, such as personality or attitude. Conversely, external attribution involves the assumption that a person behaves in a certain manner due to the circumstances that he or she is undergoing. Attributions are also considerably affected by motivational and emotional drives (Higgins & LaPointe, 2012, p. 3). Faulting other people and evading personal blame are existent convenient and self-serving attributions.
Individuals also tend to make attributions in defending against what they perceive as attacks. People sometimes even blame victims for their circumstances as they seek to distance themselves from thoughts and feelings of suffering the same predicament. Lastly, individuals also tend to assign less variableness to other people than themselves, viewing themselves as more versatile and less conventional compared to others.
A three-stage process forms the basis of an attribution. First, the individual must observe or perceive a behavior. Second, the individual must trust that the behavior was deliberately performed, and lastly, the individual must establish if he or she believes that the other person was coerced into performing the behavior (in such a scenario, the cause will be attributed to the circumstances) or not (where the action will be attributed to the other individual). Weiner’s attribution theory focused on achievement. He identified effort, aptitude, task complexity, and luck as essential factors that affect attribution for achievement (Higgins & LaPointe, 2012, p. 2). Attributions are categorized under three underlying dimensions, which include stability, controllability, and the locus of control (Jarvis, 2012, p. 148).
The stability dimension looks at whether causes remain constant or change with time. For example, effort may be categorized as internal and variable while aptitude may be categorized as a constant, internal cause. Conversely, controllability contrasts causes that are within the control of an individual, such as skills, from those that one is not able to control, such as mood, ability, the actions of other individuals, and luck. Lastly, the locus of control dimension is divided into two poles, which include external and internal locus of control.
Application of the Attribution
Theory
Weiner’s Attribution Theory has found widespread application in various fields, including clinical psychology, law, and education. Weiner contended that causal attribution determines how people react to achievement and failure. For instance, a student is not likely to experience a sense of pride and accomplishment if he or she receives an A grade from an instructor who gives only higher grades. Conversely, a higher grade from instructors who issues few high grades is likely to lead to immense satisfaction to the student (Weiner, 1980, p. 362).
Students with higher academic achievements and high self-esteem often attribute their superior performance and achievements to internal, established, and intractable factors such as aptitude while attributing failure to internal, tractable factors such as task complexity and the level of effort. For instance, students experiencing recurring failure in numeracy are likely to consider themselves as being less proficient in arithmetic.
This self-perception of numeracy ability evidences itself in the learner’s prospects of success on numeracy tasks, as well in their thoughts on failure or success in the same tasks. Similarly, learners with learning disabilities are more likely to attribute their failure to ability, which is an intractable factor and not effort, which is more tractable.
The Elaboration Theory
This theory holds that to optimize learning, instruction should be prepared in an order of increasing complexity. For instance, when teaching procedural tasks, it is important to present the simplest adaptation of the task first. The lessons that follow should present additional adaptations until all the tasks have been taught. In all the lessons, the teacher should remind the students of all tasks taught (synthesis or summary). An important view of the Elaboration Theory is the observation that the student needs to develop a purposeful context for the assimilation of consequent skills and ideas (Nenkov, Haws & Kim, 2014, p. 769). Therefore, the Theory deals solely with organizational approaches at the macro level.
It stipulates that the instruction begin with an overview that provides knowledge of a few simple but general ideas, with the rest of the instruction presenting exhaustive ideas that expound on earlier ones. The Elaboration Theory includes three models of instruction, as well as systems from stipulating these models based on instructional goals.
Similar to other models of instruction, the three components comprise strategy components. It is imperative to note that the Elaboration Theory is not fixed, but continues to improve as studies expose weak strategy aspects that should be purged from the model and novel strategy aspects that ought to be included into the models.
The Models of the Theory
The three models of the elaboration include procedurally organized model, the conceptually organized model, as well as the theoretically organized model (Reigeluth, 2013, p. 368). A procedurally organized learning program, such as a regression analysis course, would teach the least complex and most generally applicable processes and procedures first, with the rest being taught as is necessary in attaining the same purpose but under different and more challenging conditions.
Conversely, a course in genetics may utilize a conceptually organized model where the general concepts are presented first. Lastly, a course in introductory microeconomics would probably utilize a theoretical structure where the fundamental principles (such as marginal costs, costs and opportunity costs, scarcity, rational choices, etc.) are taught first.
Application of the Elaboration
Theory
The theory may be applied to the design of instruction, particularly
in the cognitive domain. Instruction is more effectual when it adheres to an
elaboration strategy, that is, the use of epitomes comprising analogies,
motivators, syntheses, as well as summaries. For instance, nearly all economic
principles may be explained as elaborations of the classic law of demand and
supply, including taxation, regulation, and monopolies.
Problems with the Instructional Theories and Recommendations
Elaboration theory contends that the structure of content should be made plain and overt to learners through a number of organizers and synthesizers. This view is rather problematic in the sense that presenting learners with an outline that reflects the text structure is likely to encourage memory-level indoctrination and encumber the transfer of the memorized material to problem-solving assignments. Such likely negative outcomes of explicit teaching structure might be because of the continuous knowledge-of-result feedback that is usually characteristic of motor learning tasks. It is uncontested that learning may not occur when learners are able to decipher things effortlessly.
As it is currently constituted, the Elaboration Theory is more of an instructional design procedure than a theory. It provides precise steps for structuring instruction. Such a procedural approach presents two principal problems. First, the procedural directions prescribed beforehand often go beyond the knowledge base regarding instructional and learning processes and are frequently at variance with such knowledge and second, those tasked with designing instructions are disposed to adhere to models in a general, principle-based manner notwithstanding the procedural stipulations.
The theory should be redeveloped into a series of guiding rules that are lucidly referenced to instructional and learning processes. A rule-based formulation will permit instructional designers to adapt the theoretical constructs to a wider variety of situations.
The Component Display Theory
This theory was developed by David Merrill (1983) and delineates the microelements of instruction, that is, particular ideas and means of teaching them (Reigeluth, 2013, p. 279). The theory categorizes learning as bi-directional and comprising of content (concepts, facts, processes, principles, and procedures) and performance (memory and generalities). It identifies four principal forms of presentation, which include rules, examples, recall, and practice.
Rules refer to expositive presentation of generality while examples are expositive presentation of occasions and instances (Duncan & Goddard, 2011, p. 80). Conversely, recall is inquisitory or probing generality while practice refers to probing instances. The Component Display Theory also includes secondary presentation forms, which include goals, mnemonics, preconditions, as well as feedback. The theory stipulates that instruction is only effective as long as it contains all essential primary and secondary forms. Therefore, a comprehensive lesson would comprise of a goal, followed by a permutation of rules, examples, practice, mnemonics, recall, and feedback that are task-specific and appropriate.
CDT further proposes that for a given goal and student, there exists a distinctive combination of the various forms of presentation that leads to the most effectual and successful learning experience. In addition, a number of assumptions underlie the Component Display Theory. While there are several varieties of memory, the theory holds that algorithmic and associative memory structures have direct connections to the performance aspects of Find/Use and remember correspondingly. While algorithmic memory is made up of outlines or rules, associative memory consists of successive levels of network structure. The differentiation between the Find and Use performances lies in the use of extant rules in processing inputs compared to forming new rules through the restructuring of existing ones.
Application of the CDT
The Component Display Theory
has found extensive usage in applied instructional design. It was employed in
designing the TICCIT computer-based instructional system (Choi, 1986, p. 40). One
of the key roles of instruction is to foster active mental processing by the
learner. Evidence exists that there is a direct correlation between the quality
and quantity of learning and cognitive processing of pertinent information by
the student. Nonetheless, proper use of attention focusing information, as well
as an experiential environment, may improve the requisite mental processing,
thereby improving the level of learning. Because computers are interactive, the
execution of this active involvement becomes easier than is the case with other
instructional media.
Limitations of the CDT
There exist at least for different elements of instruction that
impinge in student performance, including the organization of instruction, the
method of instruction delivery, student motivation, and the method used in
managing the interaction between the instruction and the student (Choi, 1986,
p. 43). Further, instructional organization may be classified into two distinct
categories, which include organizing instruction on a set of topics and
organizing it on one topic. The Component Display Theory only examines the
organization of instruction on one topic. Although the theory covers only a
single, limited facet of instruction, its meticulous procedures offer
instructional designers ways of producing effectual instruction within this
limited domain.
Instructional Theories Conclusion and Thoughts
The basic aim of instructional theories is to enhance the quality of instruction. A learning-focused instructional theory should provide guidelines for designing learning environments that can offer the proper combinations of self-direction, empowerment, structure, guidance, and challenge. It must also include guidelines for aspects that have been mostly ignored in instructional design, which include deciding among the various instructional approaches, including project-based learning, tutorials, problem-based learning, and simulations.
The needs for learning have increased and, therefore, new paradigms must provide guidelines for promoting social, emotional, spiritual, attitudinal, and ethical development, as well as an intricate understanding, meta-cognitive strategies, complex cognitive tasks, and higher-order critical thinking skills in the cognitive sphere. Various instructional theories must provide guidelines in every of the above spheres of learning and development.
References
Choi, S. Y. (1986). Application of Component
Display Theory in Designing and Developing CALI. Calico Journal, 3(4), 40-45.
Dijkstra, S., Schott, F., Tennyson, R. D.,
& Seel, N. M. (2012). Instructional Design: Volume I: Theory,
Research, and Models:volume Ii: Solving Instructional Design Problems.
Hoboken, NJ: Taylor and Francis.
Duffy, T. M., & Jonassen, D. H. (2013). Constructivism
and the technology of instruction: A conversation. Hillsdale, NJ: Lawrence
Erlbaum Associates Publishers.
Duncan, S. F., & Goddard, H. W.
(2011). Family life education: Principles and practices for effective
outreach. Thousand Oaks, CA: SAGE.
Edgar, D. W. (2012). Learning theories and
historical events affecting instructional design in education: Recitation
literacy toward extraction literacy practices. Sage Open, 2(4), 1-9.
Erbas, D., Turan, Y., Aslan, Y. G., &
Dunlap, G. (2010). Attributions for Problem Behavior as Described by Turkish
Teachers of Special Education. Remedial and Special Education, 31(2), 116-125.
Higgins, N. C., & LaPointe, M. R. P.
(2012). An individual differences measure of attributions that affect
achievement behavior: Factor structure and predictive validity of the academic
attributional style questionnaire. Sage Open, 2(4), 1-15.
Leong, F. T. L., & Austin, J. T. (2006). The
psychology research handbook: A guide for graduate students and research
assistants. Thousand Oaks, CA: Sage Publications.
Nenkov, G. Y., Haws, K. L., & Kim, M. J.
(2014). Fluency in Future Focus: Optimizing Outcome Elaboration Strategies for
Effective Self-Control. Social Psychological and Personality Science, 5(7), 769-776.
Reigeluth, C. M. (2013). Instructional-design theories and models: An Overview of Their Current Status. Hillsdale, NJ: Lawrence Erlbaum Associates.
Did you find any useful knowledge relating to instructional theories in this post? What are the key facts that grabbed your attention? Let us know in the comments. Thank you.
Impact of Recruitment Practices on Employee Retention: A Case Study of Community Nurses in the NHS
This dissertation is based on evaluating the effect of recruitment practices on the retention rate of an organisation. The study focuses on the health sector on NHS and analyses the reason for the high turnover rates of the NHS nurses. Thus, the report is dedicated to the analysis of secondary qualitative and quantitative in finding the effect of the recruitment practices on retention rate in NHS nurses. The report shows the recruitment practices of NHS and the possible reasons for their high turnover.
The study has allowed evaluation of the recruitment and selection practices that have an impact on the retention of the community nurses in the NHS. The reasons of increasing employee turnover or lack of retention as found in the research are; poor recruitment planning, the wrong expectation of job roles and responsibilities, ineffective communication of job roles, and lack of use of technology to express the company’s culture, norms, and facilities. The high turnover rate is linked to the recruitment practices using the literature review of the past studies. The study found a difference in the actual practices and advertised practices of National Health Services.
This is one of the many reasons the NHS nurses are dissatisfied in their workplaces. In the NHS, internal recruitment effectiveness is a primary driver of motivation of nurses and consequently to their retention. The study suggests areas for improvement in the recruitment practices in terms of addressing diversity, regional shortcoming, technology usage, internal recruitment effectiveness, national and international recruitment, and demographic balance.
Dissertation Objectives
To explore the impact of recruitment on retention in the NHS
To evaluate the existing recruitment practices that drive the retention of NHS nurses
To make appropriate recommendations for effective recruitment practice that contribute to the retention of community nurses in the NHS
To achieve the research objectives, the following research questions are set:
Research Question 1: What are the recruitment practices for community nurses in the NHS?
Research Question 2: How the existing recruitment practice are relevant to employee retention on NHS focus?
Research Question 3: Which of the best recruitment practices should NHS adopt that retain in the NHS?
Dissertation Contents
1 – Introduction Background of the study Purpose of research Research questions and objectives Rationale of research
2 – Literature Review Human resource management Recruitment Retention Recruitment process Sources of recruitment Methods of recruitment Recruitment challenges Selection practices Initial screening and application form Assessment centres and psychological testing Interview Employee turnover Employee Retention factors Compensation, reward and recognition Promotion and work-life balance Training and development Job motivation and satisfaction Job characteristic model Herzberg motivation theory Job satisfaction and employee retention
3 – Research Methodology Research design and approach Descriptive research Research approach: Inductive vs deductive Research methods Research strategy Data collection and sources Study population Data analysis
4 – Data Analysis Community nursing expectations framework Quantitative data Community nurses as a proportion of the total workforce Demographics of community nurses Workforce statistics and shortfalls of community nurses Percentage change in community nurses Joiner and leaver of community nurses Turnover rate for community nurses Workforce nationality and overseas employees Qualitative data HR planning context Recruitment and selection practices Retention practices and Rate at NHS Retention issues and challenges for community Nurses NHS
5 – Result and Discussions Summary of quantitative and qualitative findings Evaluation and discussion of results
6 – Conclusion and Recommendations Conclusion Recommendations
Did you find any useful knowledge relating to NHS nurse recruitment practices and Employee Retention in this post? What are the key facts that grabbed your attention? Let us know in the comments. Thank you.
Benefits and Risks of Outsourcing to Low Cost Countries
Apparel and luxury value chains have come up with strategies so as to be cost competitive, increase the income, and expand the market for their goods. Outsourcing the end-to-end supply chain means that activities of an organization are carried out by an external company that specializes in these activities (Pickles et al., 2015). More so, a company can pay attention to its key competencies satisfy consumers, and be more flexible in maintenance and operation of its supply chain.
Apparel and luxury industry is very volatile today, frequent changes in expenses, risks, and demands for materials and goods as well as the changes in factors like international business environment are some of the challenges affecting the end-to-end supply chain. Anything that halts or reduces the movement of material, as well as the apparel and luxury goods, are considered a problem to the supply chain (K3SoftwareSolutions, 2017).
Outsourcing Benefits
Apparel and luxury companies have been able to expand their supply chain to many different countries and migrating to outsource manufacturing which has seen reduction in the cost of production. This strategy has promoted division of labor throughout the end-to-end supply chain by allowing company to concentrate on principal business undertakings. The organization is allowed to concentrate on its core competencies while specialist suppliers are given non-core undertakings (Handfield, 2017).
Suppliers who can carry out the processes more efficiently are tasked with this role and therefore outsourcing in low cost countries helps make the supply chain more effective. International brands have been allowed to create a completely responsive supply chains as well as bringing apparel and luxury products of low price to the shelves of stores (Handfield, 2017). Low priced goods are as a result of using external company’s expertise, knowledge and links to make cost-effective plans. Besides, time is economized since the time taken in designing, and delivering new clothes and luxury products to the market has been reduced from over a year to only a few weeks (Handfield, 2017).
Through outsourcing in low-cost countries, companies have been able to achieve effective processes, low-priced goods, and consumer satisfaction leading to outstanding performance and strategic advantage. Supply chain also becomes more flexible as the company has freedom to choose who they can do business with. Also, outsourcing enables the end-to-end supply chain of the organization to be more traceable (Robinson, and Hsieh, 2016).
Outsourcing Risks
Despite the benefits, an organization exposes their brands to great risks through outsourcing because it becomes a supply chain against supply chain. When going after cheap labor, apparel and luxury companies have been putting immense pressure on the suppliers who in turn are ready to reduce their invested capital to have low costs (Handfield, 2017). So as to compete with other businesses in the low-cost countries, suppliers forwent investments and labor practices that reduces the safety standards in a company and this is likely to damage the brand image of the apparel.
Poor working conditions in the apparel and luxury industry so as to maintain common local codes in low-cost countries is a disadvantage to the supply chain (Handfield, 2017). Another challenge to the supply chain is the abroad manufacturing delays. Apparel and luxury stores that are in western countries are progressively relying on the clothes and accessories from countries like China. Most newcomers to the industry may be found off guard by the delayed manufacturer (K3SoftwareSolutions, 2017). Moreover, damaged shipments and some that get lost is another menace to the apparel and luxury industry. Possible unseen costs such as inflated shipping price can result.
Besides, there are possible setbacks to the supply chain for instance late receiving of inventory leading to consumer dissatisfaction, loss of income and problems in the end-to-end supply chain. Problems may also arise during integration of the two Apparel and luxury companies affecting supply chain. If the hired company economize, use cheap materials or even fail to assess risk fully, the supply chain will be affected due to decreased sales and brand equity (Meeken, 2013).
Conclusion
Outsourcing
in low-cost countries helps Apparel and luxury companies be more efficient in
their operations because they concentrate of core competencies and they can
produce cheaper clothes and accessories as well as satisfying consumers,
therefore, affecting supply chain positively. However, there are risks involved
such as pressuring suppliers to reduce investment capital to keep low costs.
More so, companies adopt common local standards which can ruin the brand image
and problems in the hired company can also affect the organization negatively.
References
Handfield, R. (2017, August 23). Needed: A New Way to Manage Risk in Low Cost Countries. Supply Chain Resource Cooperative.
K3 Software Solutions, (2017, December 8). Supply Chain Challenges in Apparel Industry and How You Can Fix Them. Fashion ERP.
Meeken,
Z. (2013, June 13). The Risks and Benefits of Outsourcing Supply Chain
Management. Business.org.
Pickles
J, Plank L, Staritz C, Glasmeier A (2015) Trade policy and regionalisms in
global clothing production networks. Camb J Reg, Econ Soc 8(3):381–402
Robinson, P. K., & Hsieh, L. (2016). Reshoring: a strategic renewal of luxury clothing supply chains. Operations Management Research, 9(3-4), 89-101.
Did you find any useful knowledge relating to outsourcing in this post? What are the key facts that grabbed your attention? Let us know in the comments. Thank you.
Behavioral Finance and
the Psychology of Financial Decision
Behavioral finance and financial decisions have a big role in shaping critical decisions that people make. The study summarizes the facts about financial choices and the behavioral and psychological theories influencing them. We learn that people have predisposed cognitive constraints coupled with low levels of financial literacy, in such regard, their decision-making choices violate sound financial principles. The case studies teach us that most investors and managers over-extrapolate from past returns and trade, or they make decisions based on overconfidence and personal history.
We explain most of these behaviors based on behavioral finance theories like prospect theory, behavioral finance, and behavioral corporate finance. Many companies and institutions today shy away from traditionally defined benefit pension plans in favor of defined contribution plans, in such circumstance, the role of the financial adviser is gaining an integral value.
In this case study, a recent graduate from UMUC is employed to advise different clients on investment. The consultant delves into studying the biases in financial behavior that predict prospective theory. While applying the key concepts of behavioral finance, the consultant can recognize that the client (Violet) displays behavioral biases that impede optimal savings and consumption allocation. He can learn this by deducing from concepts of finance that assess how people organize their financial assets by creating separate slots for money designated for specific roles as well as other approaches such as mental accounting.
Expected Utility and Prospect Theory:
Unlike most of the economic
theories, Expected utility theory is the most preferred by scholars ((Shiller, Robert J.). The approach attracts people
because it has the best economical representation characterizing true rational
behavior in uncertain situations. However, application of expected theory is
criticized in many circumstances because of the systematical misrepresentation
of human behavior.
Allais (503)
proved that Prospect Theory refers to a mathematically developed theory
that substitutes “value function” contrasted to “utility function” and
“weights” contrasted to “probabilities” in expected utility theory. Here,
people work to increase the weighted total value instead of utility such that
probabilities do not equal weight. Simply put, people view extremely probable as
certain but the improbable events as impossible.
In many circumstances, prospect
theory appears inconsistent with expected utility theory. To begin with, in
probabilities, utility is all linear but not value. Also, value is defined
regarding losses and profits, but utility depends on final wealth.
Contrary to expected utility
theory, prospect theory foretells that preferences depend on how a problem is
approached. In case the reference point defines the outcome as an advantage, in
this case, the resulting value function will be curved in, and those making
decision will be risk-averse. But if the
reference point’s outcome is seen as a loss, those making decisions will be
risk seeking since is a convex value function.
Violations of Expected Utility
The possible abuses of this theory
include the Allais paradox (certainty effect), and inflation of small
probabilities. As for Allais paradox, there is an extreme underweighting of
high probabilities. In such a case, it falls short of certainties such that the
travel time outcomes become extremely attractive. On the other hand, inflation
of small probabilities violation projects itself in the form of a set of
stated-preference route-choice challenges.
Value Function
The definition of the value function lies on variations from a reference point,
and in most circumstances, it is risk aversion–concave for gains, convex for
losses. Similarly, value function is acute for losses than for profits. In this
case, the stress of decisions is less compared with the equivalent
probabilities, with few exceptions in the assortment of low probabilities. A value strategy deals with the
purchase of stocks that have low prices compared with the dividends, earnings,
book assets, or similar measures of significant value.
The Implications of Prospect Theory for the Efficient Market Hypothesis
An efficient market, based on the definition
by (Fama 1965), is characterized by a large pool of rational profit maximizers
who compete against each other to interpret the market prices of individual
securities in the years to come; out of which a large pool of the present
information is easily available to all participants. The prevailing competition
in such a market opens the effects of new information on the actual prices in
an instantaneous way. In such a way, the prospect theory sets in under the
circumstance that makes stock price unpredictable following a random pathway.
Provided that information flow is
unrestricted and quickly reflects in the stock price, the probability for the
future price to change will depend not on today’s price changes, but on
tomorrow’s news. Given that news is unpredictable, consequently, price changes
also turnout unpredictable, and this conforms to the principle of prospect
theory whereby people view extremely probable as certain but the improbable
events as impossible.
Efficient
Market Hypothesis is characterized by the security prices that reflect
available information. It is based on the traditional view that investors use
rationale in executing the present information to increase the expected
utility.
Anomalies
The
Anomalies of Efficient Market Hypothesis’ set in when people feel there is
something wrong with the concept of Efficient Market Hypothesis. Under such
conditions, the rational approaches of investors lacks consistence. It is not wholly
right and must be analyzed alongside other human behavior approaches like the
prospect theory, overconfidence, or expected utility, or over and under
reaction, as well as the limits to arbitrage. Examples of anomalies as
expressed by prospect theory include the size, valuation, and the momentum
effect.
The Valuation Effect. Studies reveal that firms with higher P/B multiples are outperformed by those with low price/book (P/B) multiples.
The Size Effect. Studies predict that firms with smaller market capitalizations outperform those with large market capitalizations, disregard of the controls in their higher risk.
The Momentum Effect. Studies reveal that firms with good performance for the past six months to one year period outperform those that performed poorly over the same period.
Bias identification and how such behavioral finance concepts affect their investment decisions
The First Colleague: The Concept of Illusion of Control
The stated bias happens when people overly
justify their ideas. It describes people’s propensity to believe that they can
exert influence on the outcomes of action when, in the real sense, they cannot.
When this kind of bias occurs, people behave as if they can fully control their
situations than they actually can ((Ising, Alexander).
The first colleague responds by claiming to
know the technology industry and is determined to invest in them. While he
might have worked in the industry for a while, it is not justifiable to assume
that the circumstances will prevail in the long run. He is preoccupied with the
illusion of control bias.
However, the illusion of control bias can be
financially damaging since entrepreneurs might be motivated to trade more than
what is right. It may lead them to employ limit orders, maintain
under-diversified portfolios, or other related means just to express a false
sense of influence over their trade portfolios.
People who practice this bias find it hard
acceding with the irrationality and the changing nature of markets and the fact
that their expectation is a failed one. The outcome is a spiral of investment
catastrophe with the rationalization that while their belief is right, the one
who drove the buttons was so incompetent.
In the long run, the investor becomes
overconfident. The consequences of long-term investment may not be affected by
the immediate-term opinion, emotions, and impulses that frequently engulf
financial transactions. Rather, the success or lack of it emanates from
uncontrollable factors such as the prevailing economic conditions and corporate
performance.
The Second Colleague: Confirmation Bias
According
to the second colleague, the value of commercial property in the city has
maintained a 14% increase since the year 2000 reported a famous newspaper
article. Now, this is almost two decades down the line. It is very unbelievable
to assert that the value of the property has remained consistent over such a
lengthy period, and very few investors would settle on that. However, depending
on the interest of the reader and the prevailing circumstance, we can only
assume that the type of newspaper is biased towards such reports and that the
investor too is biased and love reading similar reports.
According
to confirmation bias, individuals are drawn to
information that substantiates their existing perceptions. It is just similar
when a person prefers watching news from a TV channel that represents his/her
political views while evading those that feature commentators of divergent
opinions. Similarly, people behave in the like manner concerning their
financial issues. Entrepreneurs believe in the market conditions will make them
walk toward information sources that validate such a belief.
While it is acceptable to attach an emphasis
to the consequences of our aspirations, for example, investing heavily in the
stock of the firm you’re working for, it poses significant risks when it comes
to diversification. If you should overcome confirmation bias, stress must be
levied on obtaining information from various.
The Third Colleague: Depicting Recency Bias
Recency
bias is a cognitive intrusion that encourages to perceive the most recent
information as more relevant compared to the old knowledge. However, this may
not be necessarily true. People base their investment decisions on how the market
has been recently performing. The exact state is seen on the third respondent
whose investment decisions in the Omega Corporation are drawn from the current
state of the company and industry. She denotes that from the decline of the
industry to capitalize on her investments since she presumes that case to
remain constant for some time.
Most entrepreneurs have the inclination to follow investment performance by investing more in the industry when it is peaking and just about to reverse. Given that the investment has been picking up recently, investors anticipate that to remain the case. However, based on the behavioral theory, it would be wrong for her to rely on this approach to make financial decisions. In most circumstances, people do extrapolate from recent performance and employ them as a signal of future performance which is very wrong. Consequently, entrepreneurs fall into the ploy of over-purchasing the now outperforming asset and under-own the now drifting asset.
Behavioral Finance and Investments
Siosan’s utility function. Contrasted with that assumed in traditional finance theory
Traditional finance posits that
humans are risk-averse, they love greater certainty than limited certainty and
have a perfect utility function. Conversely, behavioral theorists assume that
people display multiple characteristics and while they may be risk-averse, they
may also be risk-seeking, risk-neutral, or any blend of the three. Depending on
how things present themselves influences decision making.
The utility function measures an
individual’s preferences over a set of products, measured in units referred to
as utils. Utils exemplify the level of satisfaction of a consumer from choosing
a specific type or number of products. Traditional finance is built on the
utility theory with an assumption of diminishing marginal return. On the other
hand, Behavioral theorists assume that human beings don’t always
act in their best financial interests.
Appropriate in this
case study, the utility function specifies the satisfaction of an investor out
of all possible combinations.
For example, an investment with low risk and high return has a bigger utility
than that with high risk and low gain. This kind of function represents both
their welfare along with their preferences. Violet expresses utility function
that follows the behavioral approach. She wants to spend more. However, she’s
quite unaware of the circumstances of tomorrow reflected in her limited
investments. Under a traditional approach, Violet would either invest or not
invest at all. It would be that she has knowledge of the future market or she
does not, and if she lacks, her utility function would be concave. She would
spend less just to avoid the risks in the future.
Similarly, she purchases expensive
goods like cars and takes vacations for her satisfaction although, she feels
reluctant to incur debts. This is opposed to traditional finance that assumes a
diminishing marginal utility; Violet proposes utility function that will always
satisfy her interests and won’t diminish. Violet expresses some mix of
traditional and behavioral approach in some part, and traditional finance is
reflected in the way she detests debts. Albeit, she does little to avert those
debts, thus in part demonstrating a behavioral approach.
Siosian’s Behavioral Biases and how a rational economic individual in traditional finance would behave differently concerning each bias
Various cognitive predispositions cause
several behavioral biases or under-saving inclinations. This is according to
the perception by behavioral scientists who present several biases that emanate
from such predispositions by grouping them into three categories. Such include
preference biases, perceptions of prospects, perceptions on how to make
decisions bearing in mind the rest of variables, and price perceptions. The
typical behavioral bias presented in this case is the preference bias, and it
manifests itself in the form of the self-control, loss aversion, and
anticipatory utility.
Costly self-control bias- Living for today
Behaviorists
propose
that many people struggle with self-control in various fields. It may present
itself through over-eating, under-saving, or over-snoozing, what we can call as
“living for today”. Approaches to costly self-control
also suggest that such people will value commitment such that they will choose,
and even pay, to limit their future decision in some way, in an attempt to
discourage their future over-consumption predilections.
However,
in this case, study, Violet fits this model of costly self-control bias. We
find that she engages in costly endeavors like buying expensive cars and paying
for expensive meals in upscale vacation resorts. She does this at the expense
of investing. In fact, she would do all the best she can to live a luxurious
life while doing little on her mortgage and other investments. Her approach is
behavioral and contrary to how traditional theorists would behave since they
would fear the risks of tomorrow and would spend less on consumption and be
concerned about the future.
Loss Aversion
The bias is comparative to some reference
point like current consumption, or friends’ consumption. Loss aversion may also
be seen as a potential threat to consumers leveraging their savings rates.
People fear more to invest in their view of avoiding losses (Thaler, Richard, and Shlomo 164-187).
Loss aversion occurs when people easily
notice the reduction in investment portfolio more than how they view gains, and
this may be even when the profits are greater. They frequently get upset when
they lose money during the market recession such that they remember those
losses forever, but they would hardly remember the time they made 40-percent
increase, just the time they lost 30-percent. We can state that Violet has an
outspoken loss aversion bias when she says she detests making losses. Given
that she has very little investment but high expenditure, this might be the
reason why she rarely invests. Her approach reflects a traditional finance
theory that assumes people are risk-averse.
Siosian’s Retirement Portfolio and Justification
Violet’s retirement portfolio is such that
she maintains a minimal retirement plan where she deposits half the sum of
money coming from her annual bonuses and none-salary incomes. On the other, we
notice that she runs a very small mortgage and limited investments that can
sustain her. Basing on such decisions, her retirement portfolio is so
inefficient.
The Social Security Administration posits
that on average, a 65-year pensioner can expect to stay for the next 18–20½
years after quitting the job (Benz par 3).
Nonetheless, health advancements now make people stay for more years, and it
would be advisable that you schedule a retirement portfolio of 30 or more
years, and in such a case, the retirement saving plan becomes so essential.
Rather than just depositing money in the portfolio, it should be used in
investment opportunities to generate more wealth for old age. The objective is remaining invested—and
that implies having some part of the money assigned to stocks, but in the right
standing with other investments.
The objective of investing retirement
portfolio is to generate a mix of investments that merge to preserve capital,
create income, and expand. Such a combination of stock, bond and cash investments
must be in line with age, income, financial needs, time, and risk. For this
reason, we can say Violet’s retirement portfolio is very weak and inappropriate (Williams par 6).
Behavioral Corporate Finance
MEMO
TO: CFO
FROM:
DATE: 28/04/2019
RE: Recent Behavioral Finance Literature dealing with the Board of Directors.
We can study behavioral finance
featuring the panel of executives under the concept of corporate governance ((Shivdasani, Anil, and
Marc Zenner). Management of financial institutions has taken a different
approach given the attrition of the significance of corporate governance in
guiding financial decisions. Albeit, this is very recent studied by
contemporary economists who assert the role of the board of governors in
guiding the company’s value creation and improved financial performance
particularly during this onset of consistent corporate flaws. Many companies
have since collapsed, examples of Lehman Brothers, Rank Xerox, and Enron just
to name a few, all blamed the faulty board of governors (Shivdasani, Anil, and David Yermack).
We have several lessons to learn
from this shrinking–specifically–there is one lesson that stands out clear–the
role of corporate governance in determining its capacity to contest positively
particularly in stormy environmental conditions where others strive hard to
exits.
Contemporary literature on
behavioral finance vis-à-vis corporate governance emanates from Adolph, Berle and Means (23) study where they assert
that, in reality, managers of companies sought their interest at the expense of
the shareholders’ interests. Their
investigation stressed the need for an effective plan to help aid in mitigating
the conflict of interests between company owners and managers. Therefore, while
the concept of corporate governance might appear new, it addresses typical
concerns present since time long (Ayuso, Silvia, and Argandoña 2-19).
Many countries, corporations, and
agencies across the globe have started to respond to the corporate flaws by
initiating a series of legislation and guidelines that guide decisions of the
board of governors in financial implications. Such rules are referred to as the
codes of best practices. These legislations guide the behavior and structure of
the board of directors while doing their monitory and supervisory duties (Shivdasani, Anil, and David Yermack).
Such codes, though, issued in
different regions, they have similar peculiarities regarding corporate culture
and general corporate environment, and alignment of the interest of parties
(Shareholders and Management). Corporate governance codification of governance
aims at mitigating the corresponding deficiencies in or lack of appropriate
shareholders shields (Shivdasani, Anil, and David
Yermack).
Your Future and Behavioral Finance Post 2008
Behavioral Finance Lessons during
and after the Great Recession
Several themes emerge drawing from
the issues aired by Stephanie pertaining behavioral finance during and after
the great recession. While the economic downturn attracted several consequences
on the corporate world, I believe the corporate directors and other
stakeholders had the mandate to prevent its occurrence, and correspondingly,
they can stop the reoccurrence of the same by studying behavioral finance
theories. The recession affected the entire globe since businesses collapsed,
and many people lost jobs and houses. However, I believe that if financial
behaviorist can avoid a repeat of the 2008 great recession, they should derive
from behavioral finance theories, Shefrin and Staman reports this in their
book, ‘Behavioral Finance in the Financial
Crisis’.
Several factors drew the crisis, and such factors persist that
perpetuate the current crisis. They include; a weak government regulation,
investment banks that exceedingly leverage debts, and strained homeowners’
finances. We can explain the consequences of 2008 crisis from a financial
theory basis. While traditional economics base their assumptions of
rationality, they assert that people make rational economic choices as they try
to maximize their earnings. On the contrary, behavioral economists assume that
people make their financial selections based on their emotions psychological
conditions, as well as on cognitive errors.
The 2008 crisis is
best explained by the principles of behavioral economics. Here, we find a
correlation of the crisis with the overly optimistic lending behaviors of
people since such is connected to the stock market fluctuations even as
witnessed currently. Psychologists have effectively documented the propensity of
people to perceive the through
rose-tinted lenses, often referred to as the optimism bias.
Much of the 2008
crisis revolved around financial psychology. We can study psychology as part of
the behavioral finance theory. In essence, it incorporates aspects like
overconfidence, perception and cognition, aspirations, emotions, and culture (Morgenson, Gretchen and Joshua Rosner).
Overconfidence– Behavioral
economists had warned of the inhibiting economic crisis. While banks,
businesses, and many corporations received such warnings, many were
overconfident in their investments. Overconfidence Before the great 2008
recession, economists warned that the economy was going under. Entrepreneurs
were such overconfident such that they hardly analyzed the risk of holding such
huge portfolios in mortgage-backed securities, provided the threat of being in
a bubble. Most of the homeowners took out loans just to satisfy the American
dream — they purchased during a bubble overconfident that housing prices would
skyrocket and remain persistent.
However, an increase in the housing
market, and the stock market, only works to raise people’s overconfidence since
they would ascribe the gains or losses they achieve as a result of their
proficiency in finance, although, it results from market moods.
Recency bias was one
implication that cultivated the crisis. That’s because entrepreneurs make
choices based on the most recent information. Decisions may be constructed on
the very latest feedback. Although, such information may not be primarily
relevant. During the time, investors overreacted because of the congress’s
finance rescue project.
Similarly, people’s
emotions such as anger, fear, and sadness influence the type of decisions made,
including economic choices. More fearful people become risk-averse, but more
angry people become more enthusiastic to incur risks, even financial risks. As
for the economic downturn, people had others in mind to accuse of the financial
crisis. Take the example of Wall Street banks that became so angry such that
they easily took the financial risk to punish the offenders.
Behavioral
economists assume that the kind of financial errors made aren’t haphazard, and
the choice made too aren’t fundamentally rational. Rather, they are built on
psychological conditions such as cognitive errors and biases.
In our attempts to
evade the similar crisis in our market, we can learn a lot from the economic
downturn of 20008 and the related occurrences of the past. For instance, the
1974-75 economic recession almost resembled the 2007-2009 crisis. On the same
note, the twin Reagan-era recessions of the 1980s had profound consequences
such as joblessness and a subsequent S&L and sovereign debt crunch. The
1990s foreign currency crisis mandated an immediate discarding of the Long-Term
Capital Management without interfering with the worldwide economic system. Just
like Lipsky reports, the 2008 housing bubble was a consequence of a simmering
stock market.
Hindsight bias wrongly predisposes us to imagine we can see and analyze the future crises pretty well the way we do the previous and establish strategies that would impede future crises. However, we are limited to devise policies that can avert future crises should we even be able to identify them since those who would lose are in our paths standing against us. No doubt restraining bank leverage would do some good; nonetheless, bankers have the smack to strangle it. Consequently, we have a few decision left–our psychological fallibility. Assessing our psychological biases will work a great deal in averting and mitigating some crises.
Conclusion
From the discussion above, behavioral finance case studies focus on determining the clear-cut direction to which various market forces—such as rational analysis of organization-specific and macroeconomic basics; cultural, human and social psychology trends—affect investors and managers expectations and define their level of confidence.
Works Cited
Adolph, Berle, and Gardiner Means. The
Modern Corporation and Private Property. New York, NY, Macmillan, 1932.
Allais, M. “Le Comportement De L’homme Rationnel Devant Le Risque: Critique Des Postulats Et Axiomes De L’ecole Americaine.” Econometrica, vol 21, no. 4, 1953, p. 503. JSTOR.
Ayuso, Silvia, and Antonio Argandoña. “Responsible Corporate Governance: Towards A Stakeholder Board of Directors?” SSRN Electronic Journal, 2009, p.2-19. Elsevier BV.
Benz, C. “The Bucket Investor’s Guide to Setting Asset Allocation for Retirement.” News.Morningstar.Com, 2016, par 3.
Ising, Alexander. “Pompian, M. (2006): Behavioral Finance And Wealth Management – How To Build Optimal Portfolios That Account For Investor Biases.” Financial Markets and Portfolio Management, vol 21, no. 4, 2007, pp. 491-492. Springer Nature.
Lipsky, J. Overcoming the Great
Recession An Address to the Japan National Press Club, Remarks by John Lipsky,
First Deputy Managing Director of the International Monetary Fund, at the Japan
National Press Club, Tokyo, May 18, 2009. Tokyo: Japan National Press Club,
2009.
Morgenson, Gretchen, and Joshua Rosner. Reckless
Endangerment: How Outsized Ambition, Greed, And Corruption Led To Economic
Armageddon. New York, New York, St. Martin’s Griffin, 2012.
Shefrin Hersh, &Meir Statman. Behavioral
Finance in the Financial Crisis: Market Efficiency, Minsky, and Keynes.
Santa Clara: Santa Clara University, 2011.
Shiller, Robert J. “Bubbles, Human Judgment, and Expert Opinion.” Financial Analysts Journal, vol 58, no. 3, 2002, pp. 18-26. CFA Institute.
Shivdasani, Anil, and David Yermack. “CEO Involvement in the Selection Of New Board Members: An Empirical Analysis.” The Journal of Finance, vol 54, no. 5, 1999, pp. 1829-1853. Wiley-Blackwell.
Shivdasani, Anil, and Marc Zenner. “Best Practices In Corporate Governance: What Two Decades Of Research Reveals.” Journal of Applied Corporate Finance, vol 16, no. 2-3, 2004, pp. 29-41. Wiley-Blackwell.
Thaler, Richard H., and Shlomo Benartzi. “Save More Tomorrow™: Using Behavioral Economics To Increase Employee Saving.” Journal of Political Economy, vol 112, no. S1, 2004, pp. S164-S187. University Of Chicago Press.
Williams, Rob. “Plan, Allocate and Distribute: Structuring Your Retirement Portfolio for Your Income Needs.” Par 6. Schwab Brokerage, 2017.
If you enjoyed reading this post on behavioral finance, I would be very grateful if you could help spread this knowledge by emailing this post to a friend, or sharing it on Twitter or Facebook. Thank you.