Barrier Analysis

Barrier Analysis as a Safety Tool

Barrier Analysis is the technique used for identifying the harmful or hazardous effects associated with the harmful sources of energy. Barrier Analysis provides an equipment to study the unwanted flow of energy sources to the potential targets, people or objects, through the assessment of various barriers in order to prevent the dangerous energy flow.

Barrier analysis is an effective and efficient system safety tool used to identifying the risks associated with the defined sources of energy. The successively organized paradigm of this analysis provides reliable, rationally reasoned and independent findings about various hazards and barrier controls as compared to many other methods available for the analysis purpose.

Barrier analysis came into the picture to help experts analyze accidents and risks. Talking in general terms, the main use of a barrier is to prevent an action from happening or in other words provide a shield to the people that are a part of that environment, from the consequences. This report will highlight the relation between accidents and the barrier analysis by providing a technique to thoroughly search or investigate the accidents and safety programs. An accident can be described as the set of barriers that have failed, although the reason of failure will be mostly not included in the list of suspected causes. A barrier, in this respect, can be a hindrance, an obstruction or a hurdle that prevents an action to take place or reduces the impact of the harmful consequences. Barriers are important to be analyzed for understanding and prevention of accidents in two ways –

  • The fact that accident has occurred implies that one, or more, of the defined barriers failed. This can be either because they were dysfunctional (Polet, 2002) or they did not serve the purpose properly. The search of such barriers is therefore considered an important part in understand the cause of the accident
  • Once the anatomy of the accident has been analyzed and casual ways have been identified, the defined barriers can be used in order to prevent similar kinds of accidents that take place in the future. For this, the pattern needs to be determined.

Hence, the barrier analysis provides an effective way to consider the events that are related to the failure of a safety system (Livingston et al., 2001). However, it is not a system that is comprehensive enough to act as the sole safety analysis of the system as it may miss a few points due to system failures or human errors (Reason, 1992) while producing the results.

According to the Energy Theory or the Barrier Analysis, whenever there is a chance that the person or an object is approaching the energy flow or trying to come in contact with the environment state that can cause harm to the person or the object, it is required to isolate such environmental state or the energy flow.

As the Barrier Analysis technique is quite different from others, with a limit scope of analysis, it doesn’t fulfill all the requirements completely. But at the same time the technique is most often used to provide support to the system design hazard analysis type, preliminary design hazard analysis type or detailed design hazard analysis type. The technique is also known as the Energy Trace and Barrier Analysis or sometimes the Energy Trace Analysis.

Quite often it is seen that even if the source of energy is harmful, it cannot be removed from the system as it is an essential element of that designed system. Now here comes the role of barrier analysis. The purpose of the barrier analysis here is to identify these sources of energy and evaluate if the potential harms in the designed system can be considerably reduced with the use of relevant energy barriers. The analysis provides a simple tool to separate the energy source from the target to prevent it from the hazards. It acts as a powerful tool in the game of accident analysis and prevention. It should be known at the time of evaluation of the system that the undesirable source of energy coming from a single source is capable of affecting multiple targets. In such cases, there might be a requirement to use multiple barriers to save these multiple potential targets from dangers and provide them optimal safety.

Barrier Analysis Safety
Barrier Analysis Safety

The Barrier Analysis technique is executed by evaluating the source of energy, the energy flow paths that may be harmful for the system, and then identifying and creating the right barriers that must be placed in order to prevent the flow of energy from harming the person or the target equipment (here the target can be objects or people). In general, there are various types and ways of energy barriers that can be used in a designed system. The commonly known barriers are – procedural barrier, physical barrier or a time barrier. These barriers are created with a purpose to counteract the harmful effects of the energy paths in order to reduce the likelihood and severity of system/object damage or a personnel injury.

The type of analysis is generally used for all the types of systems with a goal that it is created to ensure consistent, effective, disciplined and efficient methods for the identification of hazards in the provided system. It is often used during the investigation of accidents in order to help understand the root cause of the incident and to study the damage conditions to ensure they do not occur in the future. The Barrier Analysis has fully devoted itself to overview the types of energy sources in the system, their attributes to understand if they are harmful; it is a tool to guide the discovery for the risks due to the energy sources that need more detailed analysis.

This tool is capable of fabricating detailed analysis report of risks in existing as well as new systems. By correctly and rationally identifying the energy flows into and out of the system, the Barrier analysis enables the growth of each of the sources of energy used in the system. A thorough knowledge and understanding of the sources of energy used in the system is important to get a clear picture of the complete system design and its behavior. The tool is pretty simple and easy to learn.

Barrier Analysis History

Although the concept was introduced more than 20 years ago, they have been only a few instances where the barrier concept was actually used. Haddon introduced the concept that the harmful effects of the flow of energy can be controlled by one of the provided barriers (Haddon, William Jr. 1973). The barriers can be listed as below:

  • Prevention of energy manufacturing or production
  • Reduction in the amount of energy like fuel storage, voltage
  • Preventing the release
  • Manipulating the rate of release, for example slow down the burning rate
  • Isolate in time or space, for example make the electric line go out of the reach
  • Strengthen the defined target, for example create earthquake proof buildings
  • Reorient persons and objects
  • Limit the extent of the damage caused, for example use of sprinklers

The barrier analysis is grounded on the concepts introduced by Haddon; these concepts were understood, adopted and improved by various other experts until the time this technique was used to give birth to a useful tool for the purpose of safety analysis.

Barrier Analysis Theory

The Barrier Analysis is based on the concept that when harmful and hazardous sources are present with in the environment, they act as a serious threat to certain targets. According to this theory, by placing effective barriers between these hazardous energy sources and the targets there is a chance to lessen the threat to these targets. In other words, when there is no isolation or a barrier between the source of energy and the target, it leads to disasters whereas placing a barrier between the energy flow and the target leads to a safe exit.  In situations where there is no barrier placed, effective safety requirement should be created to launch and implement effective barriers.

To understand the theory of barriers, there was work done on the barriers subject called Management Oversight and Risk Tree (MORT) programme. The MORT approach (Knox & Eicher, 1983) defines a method for a complete investigation of accidents as well as a method to analyze safety programmes. This MORT barrier analysis (Trost & Nertney, 1985) is capable of discriminating between safety barriers and control barriers. The difference between the two types of barriers is that the control barriers are related to the wanted energy flow path and the safety barriers are related to the unwanted energy flow paths.

MORT even offers distinguishing between various types of barriers like: physical barriers, warning devices, design of equipment, procedures, and skills. Hence, it provides a more detailed distinction as compared to that given by Svenson (1991) and Kecklund et al. (1996) into human, organizational and technical barriers.

The process that revolves around this tool called barrier analysis is a thorough analysis of the energy sources that are involved in the system and the possible effect these sources have on the attributes present in the environment; these attributes can be any equipment or any personnel. Experts mainly carry out the barrier analysis using a worksheet or some sort of a form to provide documentation, structure and nature of the analysis and the consistency. There is so specific format that is used by the experts as all that matters is the data contained in the worksheet.

Most of the times, the worksheets, that come with columns, are used to help maintain focus and structure in the analysis. The basic information that should be contained in these analysis worksheets should be as following:

  1. List of all the energy sources, present in the system, that provide a threat to the environment
  2. Targets that are a part of this system and are prone to damage, of any sort, from these energy sources
  3. Barriers, already in place, that are meant to control the energy sources to prevent targets from hazards
  4. Barriers, not there already, that should have been placed to control the energy risks
  5. Overall system risk for the energy sources – barrier risks.

While learning as a beginner to perform an analysis, following points should be considered in order to commit one or more problems:

  • Do not try to identify all the sources of energy present in the system
  • Do not evaluate the cascading outcome of the energy sources
  • Not understanding all the energy source paths
  • Not consider the entire system in one shot, rather take a narrow view of each of the energy paths.

Methodology

The main ingredients of an accident are: the energy flow that causes the harm, the people who are the victim of this harm caused due to energy flow, lack of the barriers of failure of barrier system that are created to keep the accidents apart and the events that lead to the final accident situation.  If all these mentioned ingredients are present in a place, accident has to happen; failure of one leads to prevention of accident.

Hence, the generic constituents of barrier analysis are the energy sources, the barriers and the targets. The forms the basis of the barrier analysis and each of these components must be clearly understood and inferred with reference to the context. The first step in the analysis is the identification of the energy sources. Once these sources have been found out, a problem analysis should be done to nail done the questions which help in understanding the hazardous elements in the design. Some of these questions can be like:

Have the hazardous sources of energy been identified?

What are the energy paths?

What are the potential targets?

What are the safety barriers?

Have the safety barriers been thoroughly identified?

The answers to these questions can be provided after acquiring the knowledge on the system design and its operation, knowledge on the system environmental variables and energy sources.  The analysis process studies and verifies the authenticity of the engineered and the administrative barriers. Here the created safety attributes are considered as the hard barriers and the administrative controls like warning signs, safety procedures and the controlling checks are termed as the soft barriers. As it is difficult to deal with the hard barriers as compared to the soft barriers, the hard barriers are preferred over the soft option. But it doesn’t mean that soft barriers are not used at all; these may be used in certain conditions. Barriers can be categorized under various heads based on their location, function or type.

Barrier analysis Process

The technique that was used in the analysis of Barrier concept was to identify various tasks around the energy sources and the steps taken to achieve the goal.

  1. Identifying the energy sources – in order to achieve this, it is required to study the system and identify all the possible harmful sources of energy. In this step, energy quantity and location should also be identified, whenever possible, to create the list of energy sources. To quote some examples, we have electromagnetic radiations, electricity, explosives and so on.
  2. Identification of energy paths – all the potential energy flow path leading to the target should be identified that can act as a harmful source of energy. Target can be any object, environment or people.
  3. Finding the multiple energy paths – there can be multiple energy flows, more than one dedicated energy flow, leading to the target that can cause a mishap. For an instance, electrical and mechanical functions of a fuse.
  4. Defining targets – for each of the existing energy source, study its flow from the starting point till the end to identify all the possible targets that are likely to be harmed by the harmful energy sources.
  5. Finding out the vulnerability of the defined targets – the vulnerability of the target should be identified. For an instance, faulty equipment might have very little impact on human but can damage another device say microprocessor.
  6. Identifying of the safety barriers – this is the most important step in taking safety measures. All the probable barriers in the energy path from an energy source to the target should be identified. Also, study the effectiveness of all such barriers, the impact of the sudden failure of these barriers, reliability of the existing ones.
  7. Evaluation of the system risk factor study the effect and the extent of harm caused to the target due to the energy flow, or multiple energy flows, to evaluate the risk factor. This analysis should be done with the potential barriers and without the barriers.
  8. Determine the corrective measures – analyze if the barriers provided are effective and adequate for safety of target, else recommend the barriers that should be provided to reduce the risk factor and ensure the safety of the target from the energy sources. Also determine if there is a need to analyze the situation using other techniques to understand completely all the hazards and factors leading to accidents
  9. Identify hazards – determine and track the hazards using a tracking tool
  10. Document all the steps involved in the analysis and the findings

Advantages and Disadvantages

Barrier Analysis has provided huge contribution towards analysis of various energy sources and as a tool in preventing hazards.

Advantages of Barrier Analysis

  • In accident investigation, the tool has proved to be very useful in providing unbiased details on what went wrong which includes not only the physical barrier failures but also the failures of administrative controls. It also provides a visibility on the absence of barriers that should have been in place to avoid the accident.
  • In the field of safety analysis, it offers a common point for humans reliability experts, designers, safety analysts, so that they can all focus on one common goal towards achieving the effectiveness and failure of predicted accidental steps.

Disadvantage of Barrier Analysis

The only drawback of this tool is that while doing a predictive analysis for future, they might assume more amenability with the barriers than actually tends to happen.

Examples

A useful example of how barrier analysis was used to save the target from the hazards:

At the French Cadarache nuclear power plant, barrier analysis was used to evaluate the events that led to the release of various water contaminants in the environment. Sequence of events can be described as mentioned below:

  • Somebody forgot to turn off the tap after using the water to rinse his/her eyes
  • After a certain amount of time, water overflowed from the basin and spilled into the tank used for storage.
  • Tank slowly got filled up but the overflow alarm of the storage tank failed to function
  • When the storage tank also overflowed, the low level radiation tank also overflowed but the alarm for this one also failed.
  • As a consequence, a great quantity of water spilled on the flour and flowed into the sump
  • The pump of the sump was unfortunately connected to the rainwater tank rather than the industrial waste tank so the contaminants flowed in the wrong place.

Analyzing the system for energy source path flows, the barriers and the target, it can be clearly seen that although there were two barriers provided in the system they both failed to function. The first step was the omission of an action, which led the energy source, water in this case, reaches the target. This seems to be a failure of a symbolic barrier that could have been the instructions for using the tap. Although there were no functional barriers involved in this step, use of one could have saved the target. To suggest one, a timer that automatically turns off the tap after a time could have done the task for us.

Although the next two steps involved functional barriers, both failed. These could have been replaced with alternative barriers like having difference types of fittings in the two tanks and so on.

Likewise, there are many other applications and examples that used the Barrier Analysis to study the sources, the barriers and the targets in the provided system to ensure use of effective barriers.

Summary

The report contains an overview of the Barrier concept as applied by various experts and researchers. The aim of the report is to have an understanding of how the Barrier Analysis can be used to understand the various elements of a system to evaluate the nature of the barrier that is used or should have been use. By identifying the energy sources flow and the target, evaluation of barrier can be studied.

The process can be considered as the comprehensive hazard analysis and its effect on the various element of the environment like the objects and the personnel. The analysis is very simple and can be easily used to find out various threats to the system especially the targets that are at the receiving end. Barrier Analysis provides a pictorial view that helps many analysts and researchers to visualize the risk factor involved in the system. Moreover it is pretty inexperience, which makes it excel over other tools. Barrier analysis has the capability to easily recognize most of the energy sources and their flow path; to quote examples it can recognize sources like electricity, compressed gas and so on.

This combined with the accident analysis can be very helpful in learning the pattern of the accident which happened either because of failure of the existing barrier or because of the missing barrier. The retrospective analysis can be used as an effective tool for the predictive use so that the target can be prevented from the hazards.

References

Livingston A D, Jackson G and Priestley K; “Root causes analysis: Literature review. HSE Health & Safety Executive”, 2001

Polet P “Modélisation des Franchissements de Barrières pour l’Analyse des Risques des Systèmes Homme-Machine. Ph.D. thesis presented at Université de Valenciennes et du Hainaut-Cambrésis”, 2002

Reason, J. T. (1992). The identification of latent organisational failures in complex systems. In J. A. Wise, V. D. Hopkin & P. Stager (Eds.), Verification and validation of complex systems: Human factors issues. Berlin: Springer Verlag.

Trost, W. A. & Nertney, R. J. (1985). Barrier analysis (DOE 76-45/29). Idaho Falls, Idaho: EG&G Idaho, Inc.

N. W. Knox and R. W. Eicher, MORT User’s Manual, ODE 76/45-4, SSDC-4 (Revision 2), May 1983

Haddon, William Jr.; “Energy Damage and the Ten Counter-Measure Strategies,” Human 2 Factors Journal, August 1973.

Kecklund, L. J., Edland, A, Wedin, P. & Svenson, O. (1996). Safety barrier function analysis in a process industry: A nuclear power application. Industrial Ergonomics, 17, 275-284

Svenson, O. (1991). The accident evolution and barrier function (AEB) model applied to incident analysis in the processing industries. Risk Analysis, 11(3), 499-507.

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Balance of Payment

Balance of Payment and Multinational Corporations

Introduction

Over the last two decades, the world economy has been changed to an extent on which the nations are interconnected with each other in terms of commerce and financial relationship. This circumstance is popularly known as globalization (Vinals, 2004). This interconnection not only helps to exchange goods or service but also force to keep account of financial payment between two countries (Dabrowski, 2006). This record is known as balance of payment. Generally, a multinational corporation has a strong relationship with the balance of payment between two countries (Stein, 1984). The multinational corporation may be affected positively or negatively in the host or home country by the balance of payment (Wilamoski and Tinkler, 1999). The positive relation between MNCs and Balance of Payment creates many opportunities for the multinational corporation. A manager of multinational company must take necessary steps to grab those nice opportunities.

What is Balance of Payment?

Balance of payment is a process of keeping record of transaction of a country with the rest of the word. It includes not only payment for goods and services but also all others payment over the border (Chamberlin, 2009). According the Sloman John, Balance of payment is an account that contains all monetary transaction of a country with the other countries of the world (1998). The transactions contain exports, import, incoming payment and transfer of finance. The balance of payment is usually evaluated based on certain period such as year.  It is also calculated on a single currency, normally US dollar (Mcbride, 2007). Sources of money are considered positive and deployed of funds is negative items. According to Investopedia, the balance of payment generally should be zero to be optimum (2013). However, it does not happen most of the time. The balance of payment is normally surplus or deficit for maximum country. A surplus balance of payment is said to be exist when the incoming payment is higher than total transfer.  On the other hand, a deficit balance of payment is said to be exist when the transfer payment is higher than the incoming payment.

What is Multinational Corporations or MNCs?

A multinational corporations or MNCs, also known as Multinational enterprise (MNE), is a company that operates is business or produce and sale product in more than one country (Daniels, Radebaugh and Sulivan, 2001). According to Van De Kuil, a multinational corporation follows the internationalized philosophy and operates its business both home and host country (2008). He also added that to be a multinational corporation, a company must have the assets and facilities outside the border of national country. The host country, home country and the multinational company get benefits from a multinational trade (Kokko, 2006). The host country gets higher tax or vat, the home country get foreign currency and the multinational company get profit. Here is some example of well-known multinational company Honda, Toyota, Google, HSBC, Wal-Mart, Samsung and chevron etc.

Relevance of Balance of Payment to Multinational Corporation

There is a strong relationship between the balance of payment and Multinational Corporation. A multinational corporation helps both host and home country to increase their balance of payment. In the contrary, the balance of payment situation of a country impact the operation of a multinational corporation by changing the rules and regulation based on country specific needs (Ker and Yeates, 2013). Let us look the relevance of balance of payment to Multinational Corporation in terms of different situation.

Relevance Based on “Direct impact”

 A country in which a multinational company is located tends to be get higher balance of payment. It experiences capital inflow when a multinational company get started with a certain fee. It also gets funds or money from the portion of profit of that Multinational Company (Shoo, 2005). On the other hand, the multinational company helps to improve the balance of payment of home country. The home country gets funds when the MNC make profit and return the money to the home country.

Relevance Based on “Regulatory Relation”

Another positive or negative relation between balance of payment and the MNCs is regulatory relationship. The balance of payment represents the foreign reserve of a country. The trade policy of a country changes with the changes on balance of payment position. If a country has negative balance of payment, it tries to hold the money by encouraging more export than import (Hale, 2013). It also tries to get more tax or VAT from the normal sources. This tighten money policy affects the business flow of multinational companies. They have to give more tax to the government. The sales volume of MNCs may rise because the local producer is busy to export in other countries. The MNCs can be the market leader. It may not happen all time. The rules and regulation may be strict for both domestic and multinational companies. On the other hand, if a country more reserve or balance of payment, it tries to deployed money. It encourages import than import or it invests money to another country as FDI or foreign direct investment. It may reduce the tax burden for MNCs (Bhusnurmath, 2011). By this way, the MNC can get maximum profit. The host country may be benefited from this policy by getting portion of profit when it will get back to it.

Relevance Based on “Measurement Challenge”

The MNC puts a measurement challenge of balance of payment for both home and host country. The goal of a Multinational company is to maximize the profit in after tax all over the world. To do this, they allocate resources, make mixing price system and make extra bill. These conducts is very difficult to measure for the regulatory bodies (Landefeld, Moulton, and Whichard, 2008). There are some good reasons behind this; the resources of production are not same in all countries and the price too. Therefore, it is very tough to evaluate the perfect amount of balance of payment. The mix price is also difficult to detect. Therefore, the proper amount of payment is in question in all countries due the inappropriate recording of MNCs transactions.

Relevance Based on “Foreign Exchange”

The balance of payment is a better indicator of country’s financial status. It helps to evaluate the foreign exchange rate of a country. This exchange rate has direct or indirect effect to the multinational corporation (Wang, 2005). When a currency of a country is strong, the import will cheaper and the export will less competitive. This situation puts pressure to the MNCs to adjust the situation. At that price of goods tends to be cheaper so that the multinational corporation must adjust their price level. Again, when the exchange rate of a country is weaker, the import will expensive and export will high competitive because of inflation. This situation makes higher price level within the country and the MNC have to adjust their price in a high level.

Relevance Based on “Asset Reserve”

The balance of payment also consists of asset such as gold reserve. The higher gold reserve means country has higher trade surplus and thus the higher money supply. This tends to create inflation within the country. Therefore, the MNCs can make higher profit by raising their price level. Conversely, when there is a trade deficit means low assets reserve. This makes the price lower because there is a low money supply. Therefore, the MNCs must adjust their prices level to cope up with host country’s policy.

Relevance Based on “Decision Making”

The balance of payment statistics is very important for all kinds of decision makers. The authority of a country looks carefully the flow of balance of payment. The balance of payment generally is a great indicator of future exchange rate of a country. This put pressure to the monetary authority to take necessary steps to control the money supply. Again, the balance of payment indicates the proper amount of assets reserve for a country. This makes concern for the fiscal authority. They should determine the trade policy, VAT, income taxes and the policy for the multinational corporation. Therefore, we can say, balance of payment accounts are closely related to the overall saving, investment and price policy of a country.

Relevance Based on “Business Policy”

The MNCs are also a good user of balance of payment statistics. They must assess the balance of payment both host and home country for their business policy. The policy of a MNC much depends on the balance of payment flow because change in balance of payment also changes the rules and regulations. When a multinational company try to start their business in another country, they must assess the domestic balance of payment. Because the domestic balance of payment, indicate the permission. If the host country has surplus balance of payment, the MNC can start their operation. Conversely, if the balance of payment is in deficit position the MNC may not get the foreign investment permission. Again, the MNC must assess the host country’s balance of payment. If the host country has already huge surplus balance of payment, it may not give permission to a new MNC because it tries to invest their money not get money. Conversely, if the balance of payment is in deficit position in the host country, they may welcome new money flow to their country. Thus, the balance of payment position in host and home country affect the decision of business start up. The MNC should also asses the foreign exchange rate position in home and host country. The weaker currency in home country means the multinational company have to pay more to start their business in another country. Conversely, if the exchange rate is weaker in host country, the Multinational Corporation can start their business cheaply in the host country. Balance of payment also influence the interest rate because of high bank reserve, the MNC also have to consider the interest rate in the host country. The higher the interest rate means the higher business cost for MNC in the host country.

Finance Essays Balance of Payment
Finance Essays

Changes in Balance of Payment and Management Actions

What is change in balance of payment?

Balance of Payment should be equal in all time. However, in reality, it does not happen. The balance of payment is continuously fluctuating all time. This is called disequilibrium of balance of payment. According to TR Jain, disequilibrium payment is a situation when the balance of payment fluctuates from zero (2008). Another author Cherunilam argues that a country’s balance of payment is disequilibrium when there is surplus or benefit (2010). There are three types of changes in balance of payment favourable, unfavourable and balance. Favourable balance of payment means surplus balance of payment. Unfavourable balance of payment means deficit balance of payment. Balance in BOP means equal incoming fund and outgoing funds.

Causes of Changes in Balance of Payment

There are various causes of change in balance of payment. From them, Raj Kumar, author of international economics pointed out three main reasons such as economic, political and natural (2008). He said that if a country is in developing position it must be in deficit balance of payment. The reasons behind economic cause are huge economic development in infrastructure, inflation or deflation, cyclical fluctuation and changes in foreign exchange rates. Again, the reasons behind political cause in balance of payment are political instability and international relations. The natural consequences such as earthquakes, hurricane and others are the reason for natural cause in balance of payment.

Result of Changes in Balance of Payment

The changes in balance of payment may affect positively or negatively to the economy. Here are some Results of changes in Balance of payment:

  • Positive effects of Changes in BOP increase the creditability of a country. Conversely, Negative changes in BOP lower the international creditability.
  • Positive changes decrease the foreign dependency in terms of financial help. Conversely, Deficit changes in BOP increase the foreign economic dependency.
  • Surplus changes increase the foreign exchange reserve. Conversely, Negative changes in BOP deplete the foreign exchange reserve.
  • Reserve of gold is increase in the case of surplus balance of payment. Conversely, the reserve of gold decreases and goes away in negative BOP situation.
  • Negative balance of payment hampers the economic development. Conversely, positive balance of payment improves the economic condition.
  • Surplus balance of payment increases the global market leadership for the home multinational company. Conversely, Deficit balance of payment hampers to get global market leadership position.

Opportunities for MNCs Revealed by Changes in Balance of Payment

The changes in balance of payment position affects positively and negatively for a country’s economy. As the MNCs are one of the important parts of economy, it also gets affected due to changes in balance of payment. Here are some opportunities for MNCs revealed by the changes in balance of Payment.

Business Growth: A multinational company can get business growth advantages in both home and host country. If the home country has surplus balance of payment, the authority approves MNC to start their business internationally. It means they do not mind in capital outflow from the nation as they have surplus funds to invest. On the other hand, a MNC can expand their business to a host country if they have negative balance of payment. They must try to grab money from the other national to increase their business infrastructure. For this reason, MNC is the best way to get finance.

Low start-up cost: A multinational company can start their operation cheaply in host country due to changes in balance of payment. If the host country has deficit balance of payment, they must encourage funds flow from MNC with low regulations and cost. Again, if the home country has high balance of payment, they allow MNC to start its business with lower fees.

Tax benefits: An MNC can also get tax benefits both home and host country due to fluctuation of balance of payment. The home country encourages FDI when it has surplus balance of payment. For this reason, the tax tends to be lower than deficit BOP to encourage foreign direct investment. Again, in the host country the MNC gets lower tax benefit due to deficit balance of payment (Robert, Dunn and Mutti, 2009). The MNC can also get the lower tax benefit, when the country tries to increase their export and reduce import.

Exchange rate benefits: The fluctuation of exchange rate is highly related to balance of payment. This exchange rate or balance of payment affects the operation cost positively or negatively to a multinational corporation. The MNC pay less if the home country has higher balance of payment or strong exchange rate. Here, they get exchange rate benefits due to weak currency in host country. This strong exchange rate also reduces the resources costs in the host country. Moreover, the MNC can get bill paying benefits due to change in balance of payment system.

Low cost of operation: A multinational corporation can experience low cost of operation due changes in balance of payment in both home and host country. It can get factors of production such as land, labour, machinery and others tools at low prices where the balance of payment is lower. Because, lower balance of payment indicates high rate of unemployment in the host country.

Higher Sales: A multinational corporation can increase their sales due to impact the balance of payment in the host countries. When a country experience lower balance of payment, it tries to increase the export and reduce import to get higher balance of payment. To do this, the country should ensure high production unit. The domestic producer may unable to cope up this policy. Therefore, the MNC get the opportunity to sales more during the recovery situation in balance of payment.

Higher Profit: A multinational corporation can make higher profit due to changes in balance of payment. As we discuss earlier MNC can sale higher volume in the host country in the recovery situation. By this, it can make higher profit because higher sales means higher profit (Deresky, 2009). On the other hand, the MNC can make higher profit if the currency of host country is devaluated. For example, European MNC operates its business in US. If the US dollar is weaker than Euro, the European countries will get higher value of money when they convert the money into their own currency.

Measures to exploit opportunities revolved by changes in BOP

As a MNC operates internationally, it must cope up with the changes on balance of payment in both home and host country. The manager of MNC should be careful to grab every opportunity provided by the BOP. The management measures have been given below:

Seek for growth: A manager of Multinational Corporation should always seek for business growth in home, host or any other country. To seek the business growth opportunity the MNC have to assess the balance of payment position. If the balance of payment is favourable, the manager should grab the opportunity for growth.

Alert all time: The manager should be alert all time to grab the best opportunity for business. As there are various obstacles for a multinational business, the manager have to overcome the obstacle by grabbing the best available opportunity.

Acquire new technology: New technology is very important for a business to get the competitive advantages. A company can implement a new technology to track the balance of payment related data to know the future trend of exchange rate, business cost and tax rate.

Hire business analyst: The manager can hire a business analyst to analyze the balance of payment data and recommend the best opportunity. The analyst also may responsible for making quick and instant decision regarding balance of payment trend.

Implementing short and long-term strategy: The manager can implement a short and long-term strategy for grabbing the opportunity of balance of payment. The short-term strategy may be for less than one year and the long-term strategy may be for above the one year. In addition, this strategy should include the yearly business strategy.

Conclusion

Due to high impact of globalization, every country must engage business internationally through Multinational Corporation. The multinational corporation contribute in the economy of related party’s as well whole world. This report describes that there is a strong relevance of balance of payment to Multinational Corporation. They are related to each other’s in terms of direct impact, regulatory relation, assets measurement, foreign exchange, business policy and decision-making. This report also describes that the changes in balance of payment creates some opportunities for MNC such as business growth, low start up cost, exchange rate, higher sales and higher profit benefit. Moreover, this report suggests that a manager of a company should take some important measures such as implementing new technology, higher business professional and hiring business analyst to grab the best available opportunity revealed by changes in balance of payment.

References

Akrani, G. 2010. Disequilibrium in the Balance of Payment – Meaning , Causes.

BusinessDictionary.com. n.d.. What is unfavorable balance of payments? definition and meaning.

Cherunilam, F. 2010. International business. New Delhi: PHI Learning Private Limited.

Dabrowski, M. 2006. Rethinking balance-of-payments constraints in a globalized world. [e-book] Available through: Munich Personal RePEc Archive

Daniels, J., Radebaugh, L. and Sulivan, D. 2011. International business. Boston: Pearson.

Deresky, H. 2011. International Management. Boston, Mass.: Pearson.

Eicher, T., Mutti, J., Turnovsky, M. and Dunn, R. 2009. International economics. London: Routledge.

Essay.uk.com. n.d.. Negative and positive impact of globalisation

Hale, G. 2013. Federal Reserve Bank San Francisco | Research, Economic Research, Europe, Balance of Payments, European Periphery

Investopedia.com. 2013. What Is The Balance Of Payments?

Investopedia.com. 2013. How The Federal Reserve Manages Money Supply

Jain, T. 2008. Macroeconomics and Elementary Statistics. V K Publications.

Kokko, A. 2006. The Home Country Effects of FDI in Developed Economies. [e-book] Stockholm School of Economics

Kumar, R. 2008. International economics. New Delhi: Excel Books.

Landefeld, J., Moulton, B. and Whichard, O. 2008. The Impact of Multi-National  Companies on Balance of Payments  and National Accounts

Mcbride, C. 2007. How to Calculate the Balance of Payments | eHow

Palgrave-journals.com. 2004. United Kingdom Balance of Payments: The Pink Book – Further information on UK balance of payments

Shoo, D. 2005. Economic Effects of Multinational Corporations | eHow

Sloman, J. 1998. Essentials of economics. London: Prentice Hall Europe.

Stein, L. 1984. Trade & structural change. London: Croom Helm.

The Economic Times. 2011. MNCs lower tax burden by swopping domicile – The Economic Times.

The Sydney Morning Herald. 2013. Multinationals cry foul at tax changes

Van De Kuil, A. 2008. Strategies of Multinational corporations in the emerging markets China and India. Mu¨nchen: GRIN Verlag GmbH.

Vinals, J. 2004. “European Central Bank Statistics and Their Use for Monetary and Economic Policy Making”, paper presented at Second ECB Conference on Statistics, European Central Bank, 22 and 23 April 2004. Germany: European Central Bank.

Wang, P. 2005. The economics of foreign exchange and global finance. New York, NY: Springer.

Wilamoski, P. and Tinkler, S. 1999. The trade balance effects of U.S. foreign direct investment in Mexico. Atlantic Economic Journal, 27 (1), pp. 24-37

www.meritnation.com. n.d.. What are the advantages & disadvantages of MNCs?

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Autonomy and Democracy

Society, Privacy, Autonomy and Democracy: Individual or Social good?

Understanding the correlation between privacy, autonomy and democracy have become a major thought for focus among political theorists. Unlike the debate on privatization influencing the market economy, this is mainly centered upon conceptualizing the inner links between privacy and legality. The concern has come into the picture because of a variety of reasons. It may be technological developments or emergence of aggressive identity politics, one or the other way these have triggered unforeseen social issues. Through this essay, I shall try to detangle the intertwined nature of individual privacy, autonomy and democracy and bring out the relations existing in-between them.

Technology today has inevitably advanced to an extent, where employing all types sophisticated devices without regulation is likely to leave no trace of privacy. Inventions like powerful surveillance cameras and biotechnological techniques have unscreened the impenetrable areas of life. It has now become essential to be vigilant about the individual image in life.  But rapid upsurge of identity politics in the issues like feminism, multiculturism, gay movements, racial discretion and national politics has given birth to ambiguities or highlighted the limitations of privacy rights. Constant critics on drawing boundaries between the individual interests and democracy have generated suspicious thoughts of condemnation, segregation and dominance on one part or another. Most important of all, privacy has created a significant impact on the society. It has been a potent reason for the arrival of prevailing forms of racism, ethnocentrism and nationalism. At this point, older regulations to protect the privacy of people are not ideal. Moreover, people are volunteering themselves to relax their private space with an interest to gain goods and services. The interests to acquire a self-determined life and fantasized rewards are affecting the idea of democracy and the autonomous subjects working under it.

Radical critiques from the anti-democrats have also influenced the deprivation of conceptual resources in making a proper judgment. The necessity is to take account of all the possible sources available, reshape and refine it. The main resources in context are privacy rights and democratic rules. On the other facet, feminism has always questioned the loopholes in the democracy. It has played an important role in revealing and justifying the issues faced by women in the civil community based on lack of economic opportunities. However, it has also given rise to situations where democracy is forced to build discriminatory laws and experience legal disabilities. So there are obvious discrepancies and complexities in the modern day society. The issues related to privacy and publicity have mostly been discussed in terms of male interests and norms which thereby have led to prolonged opposition against following the social hierarchies.

Society

Whole societal structure can be seen in two halves, private and public. Firstly, public involves the egalitarian ideals of preserving peace and unity among the people. Secondly, privacy or personal space essential for individual well-being tends to create segregations in the society. Thirdly, autonomy resides somewhere in between the two spheres that influence both the ideas. Democracy certainly requires autonomy for its functioning. Besides solely working on the central command of power it distributes its autonomy among various levels. So democracy and autonomy are related to each other.

In fact, separation of privacy and autonomy is potentially not feasible as they are interrelated in a very dependable way. Similarly, using a public approach by considering the society as a whole by disregarding the various levels in the social structure is also not a viable option. So at the least, rules must exist to provide legal protection and acquire political balance in safeguarding the privacy and publicity. In other words, both the voices of many and individual voices must be protected in a democratic setup. The core intention of democracy should be to avoid leveling, prohibition and homogenization. Again, feminists are continually arguing about having personal priority over privacy. On this context, natural domain that comes into the picture relates intimate relationships, sexuality and family needs. With the attention to this matter, efforts have been made to refine the concept of privacy that oppresses women.

Traditionalism
Traditionalism

Autonomy greatly influences the policies and principles structured in the interests of society. A few autonomous agents are provided with the power to take actions and judgment. This in one sense is nothing, but overlapping the identity interests over the democracy. The providing autonomy to a group of people to regulate the democracy has both advantages and disadvantages. If deserving subjects who are clean in their conduct are placed as autonomous bodies, it would lead to prosperity. On the contrary, incapable candidates can pose questions over the justice of democracy. Likewise, it is also true that too much autonomy gets bad results. This happens when a person considers his choices as supreme and disregards the balance in privacy and publicity. The personal choices arise as a result of convictions, desires and values. As a result, it directly influences the goal set and actions of a person. There are also other instances where a person doesn’t have his own goals, but gets inspired or carried away by others actions. This is where self-direction comes as a part of illusion. In addition, ongoing social life is another factor that influences the person’s motives. Here an autonomous subject depends on the others judgment to carry out his actions. But in strict terms, autonomous person is one who has his/her choices and actions into play according to own will. Now the question is How to balance these actions following the rules democracy?

As an example, consider the operation of the Web. Democratic ideals must allow the web or internet to operate at maximum potential. Meanwhile, it also needs to protect the privacy of Internet users. Internet today is vastly familiarized, so these statements may seem as a matter of common sense. Nonetheless, for obtaining the objective, one has to perceive things relatively in a complex way. It requires the understanding of the real world situation and devising appropriate rules in a constrained environment. Looking at today’s trend of widespread use of social media, has left us ponder about making a distinction between public and private deeds. Something that was entirely concealed before is not anymore. The times have changed. Furthermore, it becomes more complex as there are distinct groups of people interacting with each other with diverse mindsets from all over the world. I after referring the Book called “The Public and problems” from the author John Dewey came to know an alternative way to perceive the distinction between privacy and publicity. The solution provided focuses on understanding the actions and consequences of the users. In other ways, after observing the adaptability of the users to the new technologies, rule of thumb is to keep aside the old situations and avoiding taking strict unforeseen decision that affects the people. The democratic principles must support the ever changing people to have their way of life. Additionally, imperatively taking decisions on the social privacy can outburst negative consequences and restrict the freedom of movement of the people.

The consequences of one’s actions can be direct and indirect, and as a democratic body it is very important to classify the actions of a user. When it comes to direct consequences, it remains bounded within a definite area and it can be dealt privately. Whereas indirect consequences on the other hand spread to a vast extent immediately after the action takes place. It should be clear by now that indirect consequences must be taken care of to preserve the public interests. Consider an example, where a house owner is burning garden waste in front of his house. In this case, immediate result would be affecting his children and family members. But if toxic pollutants are being burnt then, it becomes a question of the whole neighborhood. Here first part is a direct consequence and other is indirect consequence. The situation can be taken care by installing pollution measuring instruments and warning the owner, so that he hesitates to burn the toxics again. So private acts, triggering public consequences must be taken care by the legislation. In the pollution problem, the process would involve inquiries, warnings and charges against the home owner.

Conclusions

The indirect consequences are not always bad for the society. For instance, if a group of Facebook users come together and discuss their common problems with Facebook groups, it doesn’t pose any problems. It could rather solve the problem unless the issue is anti-democratic and against the government. So in this new generation the conventional philosophies may require refinements with the use of pragmatist approaches. It is very much necessary to safeguard the individual privacy along with curbing the activities that lead to mass tension. Overall, privacy, democracy and autonomy must be considered as parts that whole make up a whole system called society. Also to note, there are unavoidable influences between all the three subjects, and considering them as individual entities can create social enigmas that could remain unsolved. Finally, privacy is not to be neglected but instead must be considered as essential element to democracy and autonomy.

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Asset Price Bubbles

Central Bank Response to Asset Price Bubbles

Recent research in the area of macroeconomics has been focused on trying to identify the causes of the 2007 – 2008 global financial crisis and determining best central bank monetary policies to prevent future crises. A debate that has for the last few decades been settled is now being revived; “lean” versus “clean” handling of asset Price bubbles.

The prevailing consensus of central bank monetary policy has followed the “Greenspan Doctrine” established in the 1970’s for dealing with asset price bubbles. Alan Greenspan, who was the chairman of the U.S. Federal Reserve from 1987 to 2006, believed that cleaning up after an asset bubble burst was less costly and damaging to the economy than allowing central banks to burst bubbles; attempting to “Lean Against The Wind (LATW) (Wadhwani, 2008)” on rising asset bubbles to prevent a bigger burst. This perspective was widely accepted by central banks around the world.

There are mainly four arguments against LATW monetary policy. First, bubbles are difficult to predict; the market would likely detect asset bubbles before regulators would and the market would be able to orderly deflate those bubbles through natural market processes. Secondly, there is evidence that raising interest rates (a central bank strategy for determent) doesn’t reduce the inflation of bubbles since investors are likely to take the risk on high interest rate assets in the midst of an asset bubble based on the expectation of high returns on those assets. Third, the Fed is incapable of isolating dangerous asset bubbles from normal rising asset prices; monetary policy could ham-handedly attempt to prevent asset bubbles but have the effect of harming normal asset prices. Lastly, proactively bursting asset bubbles could make the burst harsher than if the bubble were allowed to burst on its own.

Those cautions have kept the Greenspan Doctrine in place since the late 80’s, but in the aftermath of the 2007 – 2008 crisis, many economists are beginning to wonder if the “lean” strategy may actually be cleaner than the Greenspan Doctrine. Not to mention, the Greenspan Doctrine assumed that bubbles could not be as destructive as the most recent housing bubble. Could central banks develop monetary policy strategies that are more precise in detecting and deterring asset bubbles?

Combating Price Bubbles

Clearly, setting aside the lean versus clean debate, there are standard monetary principles that have not always been followed or enforced. Namely, regulators should demand more transparent disclosure, require more capital and liquidity, apply stricter monitoring of risk, stronger enforcement of compliance, and more accountability for regulators charged with overseeing the financial stability of markets. These policies need to be either reinstated and or reinforced to help stabilize the markets during asset bubbles or otherwise.

But for central banks to devise better strategies for combating bubble driven asset pricing, it is necessary to rethink the Greenspan Doctrine considering how ill-prepared the central banks were for dealing with the crisis in the financial markets. Or, perhaps both strategies have a time and place in setting monetary policy. Frederic Mishkin argues that there is a way to apply the LATW strategy to the financial markets if first central banks understand that there are two different types of bubble driven assets and each one requires a different monetary strategy.

Asset-pricing bubbles are divided into “credit bubbles” – like the housing bubble – and “irrational exuberance bubbles” – like the dot-com bubble (Mishkin, 2011).” He argues that because credit bubbles are so destructive to the economy and so hard to clean up that it would be appropriate for central banks to focus their monetary policies on predicting and deflating credit bubbles before they grow too large. Credit bubbles are linked to the financial markets so intricately that whenever there is a credit bubble like the one just experienced, its bursting usually leaves in its wake a deep recession, a financial crisis and a long period of slow growth and high unemployment.

Asset Price Bubbles
Asset Price Bubbles

Unlike normal recessions, there was no sharp recovery after the last three big asset bubbles. Because it is so hard to recover from credit bubbles, trying to head them off and prevent them is necessary. The LATW can be applied and should factor in to central bank policy because credit bubbles are much easier to identify. Each credit bubble shares certain symptoms that could alert regulators to the problem: lower lending standards, premiums on risk become abnormally low and credit is being extended at a much faster and higher rate (Mishkin, 2011).

The central bank targets these credit bubbles by slowly raising interest rates to discourage excessive risk taking in the credit markets. By inflating the interest rates on these assets, central banks can tamp down exuberance as well as spark growth in a slowing economy (The Financial Times LTD, 2014). This requires central banks to turn their focus more sharply and aggressively towards monitoring and reacting to irregularities in asset pricing more than the traditional singular focus on controlling inflation (Wadhwani, 2008) (Gambacorta & Signoretti, 2013). Lastly, this type of proactive monetary policy could have the effect of reducing moral hazard through proactive responses to booms as opposed to the reactionary approach to booms after the bust; this could discourage the reckless risk taking that typifies credit bubbles (The Financial Times LTD, 2014).

While economists are still debating the merits of the LATW strategy of curtailing asset price bubbles, it is without question that the traditional standards of monetary oversight have been too lax over recent decades and reinforcing those policies will go a long way to restoring healthy checks and balances to the world market. However, it has also become very clear that these boom and bust cycles threaten financial stability in such a way that central banks can no longer ignore fluctuations in credit markets. While focusing on controlling inflation is still a target for central bank monetary policy, central banks must now focus efforts on developing Bubble Policies (Rudebusch, 2005) that can prevent or deflate asset price bubbles before they can do real damage to the economy

References

Brittan, S., Meltzer, A. H., Wolf, M., Smaghi, L. B., Schlesinger, H., Mayer, M. Frankel, J. (2009, Fall). Should, or Can, Central Banks Target Asset Prices? A Symposium of Views

Gambacorta, L., & Signoretti, F. M. (2013, July). Should monetary policy lean against the wind? – an analysis based on a DSGE model with banking.

Mishkin, F. S. (2011). How Should Central Banks Respond to Asset Price Bubbles? The ‘Lean’ versus ‘Clean’ Debate After the GFC. Reserve Bank of Australia June Bulletin, 59-67.

Rudebusch, G. D. (2005, August 5). Monetary Policy and Asset Price Bubbles.

The Financial Times LTD. (2014, April 16). Definition of leaning against the wind. Retrieved from Financial Times Lexicon: http://lexicon.ft.com/term?term=leaning-against-the-wind

Wadhwani, S. (2008). Should Monetary Policy Respond to Asset Price Bubbles? Revisiting the Debate. National Institute Economic Review, 25 – 34.

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Anger Management

Anger and Anger Management

The topic being discussed here is regarding anger and anger management, it is important to select this topic since it deals with a key psychological activity which is often difficult to understand for many psychologists. This topic has extreme relevance for human beings since it is important to assess what sorts of changes occur during the expression of anger and how anger management deals with it. This topic has its significance to the social environment of UAE since there exist workers of many fields here and all of them go through phases of anger throughout their professional life. The aim of this paper is to study the overall effects and properties of anger and anger management techniques.

Hypothesis

This paper will provide a significant insight into the topic of anger as well as anger management and would take many case examples from real life which would emphasize upon how this subject matter affects ordinary individuals.

Reviews

CBT to CDT: Toward a developmental paradigm for conceptualizing anger management

The study conducted by Tate in 1998 assesses that destructive responses to anger present a growing problem in the overall society, and programs for managing adult anger are proliferating across the nation. Many of the anger management interventions are grounded in cognitive behavioral paradigms which focus on controlling one’s thoughts as well as behaviors (Burns, 2004). While these programs show some effectiveness, they are not properly addressing the main problem. This study is based on the idea that the main reason for this failure might be the inadequate theoretical frameworks that form the underpinnings of these programs.

Main directional hypotheses for this research suggested that there would be a negative relationship between the developmental levels of ego of adults referred to anger management and batterer intervention programs and their trait anger and destructive response to anger scores, it also suggested that there would be a positive relationship between their ego levels and constructive response to anger scores. In this reference, the State-Trait Anger Expression Inventory-2 (STAXI-2) was used to assess trait anger; the Washington University Sentence Completion Test (WUSCT) was used in order to assess ego developmental levels; and the Anger Response Inventory (ARI) was used in order to assess both constructive as well as destructive responses to anger.

It was observed that a statistically significant positive relationship was emerged between ego developmental level and constructive responses to anger, and that a significant negative relationship was observed between ego developmental level and one dimension of destructive responses to anger (Lench, 2004). All of these results suggest that individuals at higher ego levels might be more capable of responding towards anger in constructive, as compared to destructive ways. The results attained by the researchers also offer promising evidence that Cognitive Developmental Theory may provide a more adequate theoretical foundation upon which to suggest more effective anger interventions through fostering upon psychological and personality growth.

Anger management style moderates effects of emotion suppression during initial stress on pain and cardiovascular responses during subsequent pain-induction

The author John Burns argue in 2007 that suppression of emotion, anger in particular, might be linked to heightened intensity of pain during a painful event. It is not clear at all whether a person’s anger management style moderates effects on pain intensity and cardiovascular responses during the event of pain (Burns, 2005).

The purpose of the study was to determine whether (a) trait anger-in and/or a trait anger-out moderate effects of Emotion-Induction ×Emotion Suppression manipulations during mental arithmetic upon pain intensity and on different cardiovascular responses during and following a pain task, such that any type of so called ‘mismatch’ relationships emerge, and (b) general emotional expressiveness tends to account for these mentioned effects. In the methodology section of the study, healthy non-patients (N=187) were assigned to 1 of 6 of the total conditions for a mental arithmetic task. Here, cells were formed by crossing 2 Emotion-Induction which were anxiety and anger ×3 Emotion Suppression which were non-suppression, expressive and experiential conditions. After mental arithmetic, the participating individuals underwent a cold presser which was followed by recovery. Systolic blood pressure (SBP), heart rate (HR), diastolic BP (DBP), and ratings of pain intensity were thoroughly recorded. A four-way interaction was observed from pain intensity: Only for those individuals with experiential suppression/anger-induction condition, anger-out was related significantly as compared to pain recovery. It was concluded that a mismatch situation may apply for high anger-out individuals who suppress their overall emotion in a certain circumstance and thereby might suffer from greater amount of discomfort as well as physiological responsiveness to pain feelings than high anger-out individuals who do not have to suppress.

Anger and its management

The author Anju in 2013 says that everybody feels anger from one time to another. Individuals have been documented feeling anger since the ancient biblical times when Lord was considered to be angry. It was seen that babies even exhibit signs that are interpreted as anger, this includes screaming or crying (Burns, 2005). Anger is not unique to anyone, animals also have the sense to feel as well as express anger. In our daily lives we get angry over at least a small thing on almost a regular basis, whether it is with a spouse or loved one, or perhaps with an authoritative figure. Anger is often deemed as a healthy emotion when it is appropriately expressed. It can also have devastating effects upon a person. Anger is at the root of many social problems, e.g. domestic violence, verbal and physical abuse and community violence etc (Schieman, 2000). Problematic interpersonal relations might also disrupt employment activities due to the interference of anger upon workplace performance. It is often seen that anger can destroy obstruct problem solving skills, destroy relationships, and increase social withdrawal. Anger impacts our physical health. For example, it can affect immune system; contribute towards headaches, severe gastrointestinal symptoms, hypertension, migraines, and coronary artery disease. Anger is also deemed as a healthy and valid emotion but many of ordinary individuals are taught not to express anger. There’s no doubt about it that we live in an angry society in which signs that anger abounds are everywhere. Anger is deemed as a global phenomenon and referrals to anger management programs have increased.

Anger management as a component of inpatient residential treatment with adolescents: A multiple case study

The author Andrew says in 2007 that the purpose of his study was to assess the value of anger management training as an ingredient of inpatient residential treatment with small children or adolescents. Four assessment procedures alongside interviews and record reviews were employed by the author in order to gather information across a wide spectrum of personality and behavioral variables. The assessment addressed were consisted of the Revised Problem Behavior Checklist (RPBC-PAR Edition),pre and post testing with the Millon Adolescent Clinical Inventory (MACI), the Novaco Anger Scale and Provocation Inventory (NAS-PI), the State-Trait Anger Expression Inventory-2 (STAXI-2), and completion by participating individuals of two interview questionnaires adapted by the researcher from Fitzsimmons to properly measure behavioral and personal characteristics. A case study of each participating individual was employed in order to identify additionally relevant variables.

Research was completed with ten adolescents at an inpatient residential treatment center. The study consisted of 3 phases: 4 weeks of anger management training intervention occurring twice weekly for four consecutive weeks; pre-anger management training data-gathering in which pretests were administered; and post-training data-gathering in which post tests were administered and case study information was compiled.

The results assessed if the anger management training sessions produced changes in participating individuals, primarily in how they perceive themselves as well as their abilities. The assessment criteria should be evaluated which is relative to effectiveness in measuring change (Burns, 2007).

Help for hotheads; No one’s sure of its benefits, but anger management is increasingly recommended — or ordered — for those who can’t control their rage.

The author Martin says in 2004 that the judicial system has created the demand for anger management training. Judges across the nation use the various training programs as a means to ease overcrowding in jails, and unclog courtroom calendars. It may cost a county $100 a day to lock up a defendant for the crime of road rage, physical assaults or disturbing the peace. The courts can go on to release the defendant and order the person to enroll at any anger management program (Bruehl, 2007).

Most classes are led by teachers with backgrounds in counseling, they go on to help clients decide what is worth getting angry over and when anger is appropriate to be shown, how to behave assertively — not destructively or aggressively — to attain what you want (Bruehl, 2007). Programs, which may go on from ten weeks to a year, cost from $200 to about $1,000. In part because of the rapid rise in popularity of such programs, no state or national standards govern what should be provided as a lesson in anger management or who should be qualified to teach it. Although exact figures are difficult to come by, many estimate that about seven thousand individuals have been trained in U.S to teach such courses.

Effectiveness of a rural anger management program in preventing domestic violence recidivism

In the paper given by James in 2005, domestic violence in a rural area was thoroughly investigated with special attention given to the association of reduced recidivism of an anger management program. In doing so, the author explored a total of 9 hypotheses concerned with subjects who had been convicted on charges from violent behavior and how factors like gender, prior criminal history, and age were relative with completion of anger management training and recurrence of the various types of violent behaviors. Data was gathered from various different court documents for every domestic violence case which have occurred in a rural county during a 5 year period. Cross-tabulation of many different categorical results revealed incidence and rates by age, gender, and anger management program completion status. Individuals with prior criminal history were observed to be more likely to be the offenders of domestic violence and more likely to re-offend. Most of the observed subjects did not complete an anger management program, but many of those who did, completion was found to be relative with modestly reduced recidivism. Neither recidivism rates nor anger management completion were found to be associated with gender or age of individuals. Practical ways to apply findings from various researches related to anger management are proposed for human services, judicial, and law enforcement areas (Thomas, 2001). Future research is suggested by the author to replicate findings through longitudinal studies and to implement better comprehensive evaluations of domestic violence interventions throughout rural human services practices.

Choices: Anger and Anger Management in Rehabilitative Care

The author Linda says in 2013 that violent acts are on rise and rehabilitation providers as caregivers may encounter anger on a daily basis. The purpose of the article is to discuss anger and describe anger management as well as its related strategies based on behavioral interventions grounded in Choice Theory. The application of choice theory to anger is the belief that individuals are not externally but internally motivated, and that outside events do not make people do almost any sort of thing (Gold, 2007). Thus, what drives a person’s anger behaviors are internally developed notions of what is satisfying for them.

Anger becomes a choice for almost all of the individuals along with its management (Shatzman, 2003). Choosing strategies to manage anger is the main step to reducing the potential for angry emotions to escalate up to the point of violent and unwanted acts that threaten clients and caregiver’s safety. Anger-free environments tend to greatly promote mental/physical health and therefore go on to establish elements of safe living especially at the working environments in a variety of rehabilitative type of care settings.

Anger Management Essay
Anger Management Essay

Pitching a fit does anger management training help stem violence in the workplace

The paper argues that anger-management became a buzzword during the previous decade. Judges oftentimes will mandate that an individual get anger-management counseling, only when they seem unable to control their overall behavior and it is partly why they are present at the court system. Anger management is most of the time included in drug treatment as well as in couples counseling.

In most instances, it has been observed that a worker who demonstrates inappropriate anger at his or her colleagues is using the workplace as a venting mechanism for feelings that have little to do with the actual job (Blackburn, 2000). Therefore, it is due to such acts that unwanted acts happen and these acts should be avoided by both employees as well as employers at a given workplace so that the flow of work is carried on with relative ease.

Anger and depression management: Psycho-educational skill training interventions for women caregivers of a relative with dementia

The author David in 2003 examines the short-term impact of two theoretically based psycho-educational small group interventions having distressed caregivers, and also the role of specific mediator and moderator variables on the mentioned caregiver outcomes. After discussing the results, the author conclude that the data are consistent with a growing body of evidence which goes on to support the effectiveness of skills training especially among the small groups, in order to improve both the affective states as well as the type of coping strategies used by caregivers. Care is a very important factor of anger management (Kellner, 1999).

Clinical outcome and client satisfaction of an anger management group program

This retrospective quasi-experimental study presented by author Mary in 2001 evaluated the effectiveness of an anger management group program for various different clients with mental health problems. The program as discussed by the author was offered by outpatient mental health occupational therapy services of a selected community general hospital. 64 clients, about 59 percent were suffering from depressive disorder, enrolled in the program to participate in the study. The post-treatment and pre-treatment scores of the participants on the Anger Control Inventory were compared with the State-Trait Anger Expression Inventory. The results pointed towards a significant decremented in the overall experience of intense anger alongside better improvement in behavioral and cognitive coping mechanisms, and also better improvement rate in anger control after treatment. Most of the respondents found the program very helpful. The pace of the program alongside the variety of learning activities were seen as areas for improvement. The results of the overall program showed that it had positive impact on anger management. Useful suggestions were thoroughly identified for continuous quality improvements which could help the program. Anger management thrives on suggestions (Coon, 2003).

Anger Management May Not Help at All

The author Benedict argues in 2004 that Ron Artest is not the only male athlete to be sent for anger-management training. Earlier that year, Los Angeles Dodger outfielder Milton Bradley gave a statement that he would seek anger counseling. Some anger-control techniques even seem to make individuals to become more apt to lose their temper (Coon, 2003). The author states that in a reanalysis of the data if St. John’s researchers, it was found that programs that encouraged individuals to feel their rage and to express it in counseling sessions were associated with terrible outcomes. The findings coincide with the message from a wide variety of studies in the 1990’s in which various different psychologists found that venting anger, for example, by hitting an object, in fact goes on to increase anger since it goes on to intensify physical sensations of fury like flushed face or a racing heart.

Conclusion

It was discussed throughout the paper that the phenomena of anger management is gaining rapid acceptance in the general society mainly due to the fact that more and more individuals are found to get themselves into trouble. This is also due to the fact that they tend to fail in controlling their anger which goes on to give them a terrible result.

References

Bruehl, S., al’Absi, M., France, C. R., France, J., Harju, A., Burns, J. W., & Chung, O. Y. (2007). Anger management style and endogenous opioid function: Is gender a moderator? Journal of Behavioral Medicine, 30(3), 209-19.

Burns, J. W., & Bruehl, S. (2005). Anger management style, opioid analgesic use, and chronic pain severity: A test of the opioid-deficit hypothesis. Journal of Behavioral Medicine, 28(6), 555-63.

Burns, J. W., PhD., Bruehl, S., PhD., & Caceres, C., PhD. (2004). Anger management style, blood pressure reactivity, and acute pain sensitivity: Evidence for “trait x situation” models. Annals of Behavioral Medicine, 27(3), 195-204.

Burns, J. W., PhD., Quartana, P. J., M.S., & Bruehl, S., PhD. (2007). Anger management style moderates effects of emotion suppression during initial stress on pain and cardiovascular responses during subsequent pain-induction. Annals of Behavioral Medicine, 34(2), 154-65.

Cara Shatzman, C. p. (2003, Apr 18). ‘Anger Management’ Is Not Worth Your Trip Out The Door. The Santa Fe New Mexican.

Coon, D. W., Thompson, L., Steffen, A., Sorocco, K., & Gallagher-Thompson, D. (2003). Anger and depression management: Psychoeducational skill training interventions for women caregivers of a relative with dementia. The Gerontologist,43(5), 678-89.

DOUG BLACKBURN, S. W. (2000, Jun 26). Pitching a fit does anger management training help stem violence in the workplace? Times Union

Gold, A. L. (2007). Anger management as a component of inpatient residential treatment with adolescents: A multiple case study. (Order No. 3257729, Northern Arizona University). ProQuest Dissertations and Theses, , 188-198.

Kellner, M. H., & Bry, B. H. (1999). The effects of anger management groups in a day school for emotionally disturbed adolescents. Adolescence, 34(136), 645-51.

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