Islamic Banking Versus Conventional Banking

Islamic Banking Versus Conventional Banking Assignment

More than ever before, we live in a global society where an economic disaster in one country can topple the financial security of every other nation. Currently, there are two primary banking systems competing for market share and each claiming that they know best. If we think of Islamic Banking versus Conventional Banking as a sport that results in only one winner, then we are overlooking the benefits that each can offer to global betterment. This paper explores the potential for establishing a global system that creates a stable economic environment using some of the best features of each system.

Over the past two decades, Islamic Banking has increased at a faster rate than Conventional Banking and social banking, its counterpart in Europe “increased 20% per cent per year and doubling their assets between 2007 and 2010”. Benedikter, R (2011). One of the advantages of Islamic banking that is attractive is that it focuses on doing business in a way that creates a method of social responsibility for the greater good by focusing on the individual.

Islamic Banks are not allowed to do business in a way that could put the customer in jeopardy of a harmful outcome. Dubai Islamic Bank, (n.d.) As a result, Conventional Banking systems are beginning to look at their business models in the light of corporate social responsibility while other financial systems are exploring methodologies of conscious capitalism. “… social banking and social finance have become important trends among bank customers in Europe” Benedikter, R (2011)

Yet, in spite increased desire by the public, the concepts of Islamic Banking are still finding it difficult to compete with conventional banking methods both in Islamic nations and in non-Islamic countries. Khan, M. F. and Porzio, M. (January 2010, p 82-83) suggest in their book, ‘Islamic Banking and Finance in the European Union: A Challenge’ that Islamic Banking should be thought of in terms of “ethical performance and substantial destination of the funds rather than as an application of Islamic Law.” This change in the philosophy of how Islamic Banking functions could open doors to the creation of new investments and investors allowing greater opportunity for national economies to compete in meeting the needs of their own societies.

Khan and Porzio are not alone in their assessment for a need to form a collaborative financial system that produces a better outcome for global financial security. Bennett, M.S. and Iqbal, Z. (2013) suggest the development of fixed income products that could attract both socially, responsible and Shariah investors.

Likewise, in Europe and the U.S., there is a demand for more accountability to society –at-large when it comes to decisions banks and financial institutions make. “The younger generation requires that their work and their businesses align with their values, and their values call for sustainable growth that considers people and planet.” Hanlon, P (September 23, 2012) This type of thinking indicates that the concepts of fairness, justice and responsibility are shared by many cultures, religions and philosophies which is a hopeful sign that the old, mainstream banking methods are going to be forced into change.

In Europe and the U.S., another alternative to social banking is constructing banks that are developed according to and adhere to conscious capitalism. According to John Mackey, the social banking lays moral convictions on top of its underlying premise while conscious capitalism places the ideals of a higher purpose and community needs over its profitability. Schwabel, D. (January 15, 2013) As Katie Kerr stated in an interview for Forbes magazine, “…if we can take the power of business to create more positive impact, we can create better communities, create better environments, and become a stronger positive force.” Hanlon, P (September 23, 2012)

One argument that is presented by Conventional Banking promoters is that Islamic Banking is unable to sustain its profits. Yet, there is empirical data showing that the differences between return on assets and return on equity are minimal when examining the two systems side-by-side over the same time frame. Islam, K.M.A. (2014).

Another reason why countries like France and the U.S. from embracing the potential benefits of Islamic Banking is the very words Islamic and Shariah. There exists a deep-rooted assumption that anything connected to either is going to destroy their nation and their belief systems. France came very close to passing an amendment to their tax codes in 2012 which would have allowed the formation of Islamic Banking systems. Then, at the last minute, someone noticed a phrase that pulled the plug “…to conform with the ethical principles of Muslim law or sharia.”Islamic Finance in France, (November 12, 2009)

On the Islamic banking side, problems of controlling the funds in keeping with Shariah law have resulted in the closure of Islamic Banking Windows as a means for Conventional Banks to fill the needs of their customers. The Economist, (February 6, 2012) This small step forward to bringing awareness of an alternative banking method to non-Muslims and of supporting the needs of the local Muslim community to be comfortable with their banking decisions was based on the idea that the banks are a means to purifying finances. While they may have a point for the Muslim world, the decision implies that only a certain group of overseers has the authority to determine what is either “pure” and by extension, demeans all other institutions as evil or bad.

***Islamic Banking Versus Conventional Banking***

The challenge for setting guidelines for Islamic banking arises when the place it wants to go is vastly different from where it is right now. The Basle Committee for Banking Supervision presented agreed upon guidelines but even if they are all implemented, the Islamic banking system may still not actually reflect the tenets of social justice, which is the primary objective described in every Islamic bank’s mission statement. Hassan, K. and Lewis, M., (2007, p 325-326)

While Islamic banks offer many positive solutions to global stability, both Hassan and Lewis’ assessment Hassan, K. and Lewis, M., (2007, p 325-326) and that of the ‘Concept and Ideology: Issues and problems of Islamic banking”, (n.d.), there is no example that Islamic banks have achieved the goal of 100% reserve funds. This puts into question the actual financial stability using this system.

Social banks have problems of their own when it comes to financial stability. Since each decision is made on a case-by-case basis which means that each bank must remain small and personal, the ability to garner market share sufficient to support a wider customer base is doubtful. Additionally, social banks are either over-specialized or niche organizations that are not powerful enough to make a dent in changing the way that economics are handled on a global scale. Benedikter, R (2011)

Cooperative Banking is an offshoot of social banking that has taken root in Great Britain since the economic crisis of 2008. Cooperative Banking, a popular innovation of shared ownership, has issues that are similar to Conventional Banks, Social Banks and Islamic Banks when it comes to balancing its decision making that holds to the banks mission statements and visions with the need to be profitable enough to support its social efforts.

Mainstream banks focus on maximizing profits. Social banking and Cooperative banking concentrate on the profit-people-planet premise. Benedikter, R (2011) Conscious Capitalism suggests restructuring financial institutions as well as all enterprise systems from the ground up using its own key four pillars to creating a new foundation. Schwabel, D. (January 15, 2013)

In order for both Islamic Banking and Conventional Banking to work hand-in-hand and stop trying to convince the public that they have the only way to a stable economic environment, we need to set aside our pre-existing prejudices, ideologies, assumptions and expectationswhich in itself may be the greatest challenge of all. Islamic banking would need to find more neutral terms that did not stir up the western prejudices against Islam as a whole while Conventional banking would need to redefine what the expectations of banking is.

There is evidence that the population of the world, especially in the U.S. and Europe, is ready to move away from the profiteering seen in traditional definitions of banking and that many people in Muslim countries are willing to consider banking as a contemporary financial system rather than a physical expression of Shariah law. What sounded like a possibility at the beginning of this paper now sounds like a fantasy that may never come to pass. Even with the social awareness of this generation, it would take many years to alter either world view that is firmly engrained in the soul of its followers. Still, I would like to hold out hope that we can take steps toward creating a global view of economics that would result in a more stable financial environment for the majority rather than the minority.

References

Hassan, Kabir and Lewis, Mervyn, (2007), Northampton, Ma, Handbook of Islamic Banking,

Edward Elgar Publishing, William Pratt House.

Khan, M. Fahim and Porzio, Mario (January 2010), Northampton, Ma, Islamic Banking and Finance in the European Union: A Challenge, Edward Elgar Publishing, William Pratt House.

Benedikter, R., (2011), ‘European Answers to the Financial Crisis: Social Banking and Social Financing’, Spice Digest, Europe Center, Stanford EDU.

Bennett, Michael S., Iqbal, Zamir (2013), ‘How Socially Responsible Investigating Can Help Bridge the Gap between Islamic and Conventional Financial Markets’, World Bank Treasury, Emerald Group Publishing.

Islam, K.M. Anwarul (2014), ‘Examination of Profitability between Islamic Banks and Conventional Banks in Bangladesh: A Comparative Study’. Research in Business and Management, Vol 1, No 1.

The Economist, (February 6, 2012), ‘Conventional Banks have closed their Islamic Windows’,

Hanlon, Patrick, (September 23, 2012), ‘Conscious Capitalism: Can Empathy Change the World?’, Forbes.

Islamic Finance in France, (November 12, 2009), ‘Sharia Calling – A Political Row About Muslim Law.

Schwabel, Dan, (January 15, 2013), ‘John Mackey: Why Companies Should Embrace Conscious Capitalism’, Forbes.

Thorpe, Devin, (May 18, 2013), ‘Why CSR? The Benefits of Corporate Social Responsibility Will Move You to Act’, Forbes.

Concept and Ideology: Issues and Problems of Islamic Banking, (n.d.), web archive article.

Dubai Islamic Bank, (n.d.), ‘What is Islamic Banking’.

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Social Class and Crime

Social class and crime, along with bad behavior are related in a degree of ways. Those from lower financial layers will undoubtedly be caught, prosecuted, and kept for bad behaviors that are more rich individuals. Prisoners in the United States will undoubtedly be jobless and obtain not actually everybody. Yet wrongdoing by the well-off may address a higher financial cost for society, rich individuals are less disposed to be gotten and arraigned for bad behaviors.

Besides, working class infringement have commonly been managed less truly by the criminal value structure than street bad behaviors. Various criminologist hypotheses have explored the association between money related components and pollution, recalling looking at the effects of poverty for the strain, the impact of coming from a hindered region, the lifestyle of dejection, and the very development and execution of laws and the overall arrangement of laws. This article discusses the relationship between these social classes and the crimes people usually find themselves in and which are commonly committed openly or in private.

Most people in the education sector are engaged in criminal actions which involve things like corruption at the higher education level. Students from lower financial backgrounds lose scholarships to the higher financial stable families but are unqualified in academics because they have connections. In the employment sector in the offices and companies of the economy of the United States, many people are losing chances and opportunities for the job due to corruption and personal and personal relationships.

Problem Formulation

What is the relationship between social class and crime in the United States criminal justice system?

Introduction

The association between social standard and crime has for a long time been an issue for discussion in criminal systems. In particular, there is impressive fight as to whether crime is basically a middle-class marvel or is just the same serving a common purpose. The content of this paper, and subsequently its life time, originates from the means that settles criminological hypotheses are established on the persuasion that there is somewhat in particular with regards to an average states of life that is innately criminogenic.

Honestly, in the previous centuries, most criminological acts was believed to be associated with social class and crime, meaning that people are largely connected to crime offences (Cloward & Ohlin, 1960). All the more as of late, the reason of lower-class transcendence has been tried by observational examination endeavoring to determine the class–wrongdoing association as subjected to enduring it as the starting point for criminal scenes request within the society.

Tragically, due to divergent studies and uncertain results, crime specialists still can’t seem to set up a definitive response in regard to the social class and crime relationship, which is further convoluted when fights amazingly erupt, which largely are prohibited from criminal inspections obviously and problems, venture into the situation. This examination paper inspects the possibility that scientists as far as anyone knows dissecting similar marvel’s varying decisions about class and wrongdoing might be established in methodological contrasts.

Research Discussion

The investigation of social activities and crimes have encountered gigantic development in the course of the last years, which is openly, to some degree, by the boundless fame and expounded deployment in criminal justice and criminology offices at all levels in all sectors of the government, both across the United States and globally. A paradigmatic developing shift has went with this criminological downpour in definitional, disciplinary, and down to earth relations.

However since quite a while ago distinguished as a major sociological forte section, criminal science has risen as an self-governing discipline by its own liability, and that goes further to grow and is setting down deep roots (Pihl & Peterson, 1995). Today, criminal systems stayed innately as assumption but on the other hand is irrefutably more utilized in attentiveness and hence more correlated with the philosophical and expert doubts of unlawful equity and associated skilled assistance sections.

Present-day examination of criminal discipline and criminal fairness is as well a progressive interdisciplinary and consequently comprises of a wide variety of examination themes on the sources, effects, and responses to crimes. This exploration paper contains data composed by a few notable discipline figures and arising more youthful researchers who furnished legitimate outlines combined with shrewd conversation that will rapidly acquaint analysts and understudies the same with fundamental and itemized data for every criminal equity activity.

Literature Review

The assortment starts by characterizing the discipline of criminal science and noticing its authentic turn of events. The different social (e.g., age, hostility, schooling and business), and segment (e.g., age and citizenship) real factors that reason, frustrate, and alleviate wrongdoing and wrongdoing control are examined in a few gather of violations to be specific

Age and Crime

The curvilinear connection among age and unlawful act is one of the greatest reliable discoveries in criminal science, and it’s been alluded to as a “tough observational consistency” and “one of the savage realities of criminal science” (Greenberg, 1985). Social analysts as ahead of schedule as Quetelet during the 1800s (Williams, 2003). Recognized a solid connection among age and wrongdoing that has come to be known as the age–wrongdoing bend.

The overall type of the connection among age and debasement is not quite deliberated. In whole inspections, the age and criminal offences twist is unimodal, with true lawbreaking percentages increasing in youthfulness to a top in the earlier adolescent years and afterward weakening quickly through the maturity levels. It is likewise evident that the age–delinquency bend tops fairly later for vicious violations contrasted and vandalism related misdemeanors.

Albeit much Research analyzing the age–wrongdoing affiliation has determined on true data and age-explicit detention degrees and overall curvilinear sample additionally holds all the more by and large for direct confusion, solitary behavior, and youth resentment. (Farrington, 1986) has mentioned that in spite of the point that scholars agree on the overall sort of the age–crimes twisted, there’s few concurrence on its prominence and propositions.

Hostility and Wrongdoing

Perhaps the most reliably recorded finding moving from criminological philosophy is that around five per cent to six per cent of the United States populace carries out over half of every criminal offense. This little framework of wrongdoers is regularly alluded to as profession hoodlums or constant guilty parties to catch their drawn out and incessant contribution in criminal felonies.

Considerably extreme arresting than the expected number of wrongdoing carried out on account of routine guilty parties is their inescapable utilization of actual brutality. Vocation lawbreakers are bound to utilize genuine viciousness; they additionally utilize actual hostility significantly more regularly. Assault, theft, attack, and murder, for instance, are wrongdoings that are solely restricted to routine guilty parties. In all regards, then, at that point, vocation lawbreakers address the most genuine rough wrongdoers, representing the most serious risk to society.

Vocation hoodlums are along these lines altogether different from any remaining guilty parties as far as their continuous contribution in wrongdoing and their standard utilization of hostility. The inquiries that come to bear, then, at that point, are the accompanying: (a) What variables add to the advancement of ongoing guilty parties, and (b) are these the very facets that add to the improvement of any remaining sorts of wrongdoers? The responses to these inquiries are intricate, however rich understanding can be collected by zeroing in on duo interlaced problems (Koh & Buchwald, 2015).

Citizenship, Social Class and Crime

The motivation behind this exploration paper is to recap peruses that immigrants, particularly blacks and other outsider gathering individuals, normally dwell in monetarily distraught networks. (Iturralde, 2010) noticed that legitimate criticism and disappointment with law enforcers were interwoven with neighborhood inconvenience levels, an impact that bested racial contrasts in perspectives to the laws, even subsequent to directing the locality rough criminal percentages.

Besides, natural qualities of policing likewise incorporate the utilization of corporeal and lethal power at the town level, official unfortunate behavior in police regions, and more slow reaction periods in networks, featuring study that perspectives to the police might be a component of vicinity setting.

These activities hit youthful dark guys tougher than others. In any case, the effect on blacks’ adolescents is a vulnerable crises, similar with the effect of late movement and the job of foreigner fixation in molding law enforcers’ experiences. These concerns possibly seem to build an alternate narration concerning Latinos, savagery, and the constabularies. This exploration paper ends with ideas for upcoming examination.

United States civilization is currently made out of broad-based populaces. The opportunity has arrived to regularly look at blacks in police exploration and contrasts inside citizenship status gatherings, including naturalized residents, legitimate inhabitants, and unapproved travelers. Spearheading Research and early movement and wrongdoing studies incorporate issues pertinent to Latinos and the police. The outcomes of overlooking the Latino populace are accentuated prior to tending to what we do and don’t think about Latinos and authority (Clarke, 1987).

Schooling and Crime

Crime analysts may expect that a conversation of training and wrongdoing would involve an outline of the effect of a singular’s schooling level on their crook or reserved conduct. Then again, guardians may expect it is a conversation of the impacts of school brutality and wrongdoing on the security and learning of their kids. Councils may think it to analyze the costs used on battling wrongdoing in the U.S. against those used to further develop American institutions.

An amateur may be anticipating all or none of these methodologies. The exploration paper starts with an outline of the by and large acknowledged perspectives about the connections among instruction and wrongdoing. Given the volume of Research on this subject, specialists have commonly concurred on a few fundamental points of interest that they accept mirror the legitimate connection among wrongdoing and schooling.

Then, this exploration paper endeavors to explain a few focuses that should be tended to at first. Initial, a few general terms are characterized (e.g., training, instructive accomplishment, knowledge, road smarts, and wrongdoing) and afterward talked about as they are utilized to concentrate on the associations among schooling and wrongdoing. At last, a conversation of how these terms intermix is advertised. Peruse more with regards to it.

Work and Crime

Work has for some time been seen to be connected with criminal conduct. For instance, Belgian crime analyst Adolphe Quetelet, in a 1831 distribution examining French wrongdoing insights named studies on the Tendency for Crime at Different Ages (Beirne, 1987), commented that people who were jobless or utilized in “modest occupations” were bound to carry out violations (Beirne, 1987).

Consequently, the investigation of wrongdoing and the economy is a firm custom in criminal science. To keep an adequate limited extension, this exploration paper centers around individual-level and observational examination speculations on the connection among work and wrongdoing. It in this manner precludes an audit of occupations wrongdoing learns at the large scale level and exploratory or semi trial assessments of work intercessions.

The primary segment in this examination paper contains a hypothetical outline of the connection among business and wrongdoing. The subsequent segment audits the observational writing at work wrongdoing association. The third segment distinguishes useful difficulties that should be defeated in commitment wrongdoing research. The last segment offers some finishing up comments and frameworks future headings.

Methodology

Data Basis

Since guiltiness as a societal marvel is the accumulated outcome of deliberate separate conduct, it needs a miniature insightful examination of an entertainer’s late conduct to see the value in the reason and reasons of this wonder and the impacts and results of delinquent conduct. Such miniature cycles are investigated utilizing individual information since request with information on the large scale level creates bogus ends (Pilivan et al., 1986).

The social occasion of solid and legitimate information on misconduct establishes a precise trouble in populace overviews because of either a refusal to reply or off base data in regards to one’s late conduct (Hindelang et al., 1979). One-sided tests about criminal conduct likewise result from the way that kept wrongdoers stay inaccessible in populace reviews. There are valid justifications why meetings ensuring obscurity barely deliver occasional bogus proclamations (Esser, 1986).

Reliant and Autonomous Variables

The longing to perpetrate unlawful wrongdoing builds up the reliant on variable. The examinees were found out if they predicted themselves committing once more a wrongdoing (indeed), or swearing off rehashing such unlawful demonstrations, paying little heed to the conditions. The primary thought is tax avoidance (‘Giving misdirecting information in the expense revelation or the control of annual assessment to cover less charges’) and the other theft in a retail chain (Taking products out of a retail chain or shop without paying).

Before the request in regards to their future conduct, interviewees were additionally inquired as to whether they had submitted the referenced offenses previously and how frequently an event. The two offenses were investigated independently. We utilize expected future lawless offenses as the reliant adjustable and not earlier offenses. Our hypothetical prototypical predicts that the discernment of the circumstance is vital for the people’s evaluation of expenses, reimbursements, the conviction of assents, and so forth, these expected indicators of wrongdoing don’t really stay consistent after some time.

Henceforth, in the event that we pick earlier offenses as the reliant adaptable, we would need to report the situational conditions, anticipated expenses, advantages, and likelihood of the wrongdoings to occur.

Measurable Method

The double strategic relapse decides the assessment of a solitary determinant’s effect on the aim of submitting an offense. This strategy is utilized for dispersion hypothetical reasons just as for choice hypothetical reasons (Urban, 1993). Henceforth, the planned wrongdoing can be depicted with a choice and activity hypothetical methodology of the emotionally expected utility and the money saving advantage assessment of activity options. For instance, a probability activity typical for the course of crime can be joined with and inspected by the rationale and measurement of calculated relapse facsimiles (Urban, 1993).

Conclusion of Social Class and Crime

The relationship between social behaviors and criminal acts and offences as discussed are clear and intense in the United States. Many illegal actions are happening in the education sector, employment sector, aggression, in citizenship acquisition process thus their existence raising concern among the people. Criminal offenders have the right to overturn their behaviors and actions to make life better and easy for others.

To reduce the high cases of criminal cases in society, there is a need for the government to increase the high numbers of job opportunities in the country to reduce the high numbers of unemployment. Doing this will increase the number of working personnel in the country and reduce poverty caused by a lack of jobs. They were employing the right people with a good sense of humor who have regard and respect for their dignity to distance themselves from corruption, thus staying away from criminal offences.

References

Beirne, P. (1987). Adolphe Quetelet and the origins of positivist criminology. American Journal of Sociology, 92(5), 1140-1169.

Clarke, M. J. (1987). Citizenship, community, and the management of crime. The British Journal of Criminology, 27(4), 384-400.

Cloward, R., & Ohlin, L. (1960). Delinquency and opportunity. New York: Free Press.

Esser, H. 1986. ‘Ko¨nnen Befragte lu¨gen? Zum Konzept des ‘‘wahren Wertes’’ im Rahmen der handlungstheoretischen Erkla¨rung von Situationseinflu¨ssen bei der Befragung.’ Ko¨lner Zeitschrift fu¨r Soziologie und Sozialpsychologie 38: 314–36

Farrington, D. P. (1986). Age and crime. Crime and justice, 7, 189-250.

Greenberg, D. F. (1985). Age, crime, and social explanation. American journal of Sociology, 91(1), 1-21.

Hindelang, M.J., T. Hirschi and J.G. Weis. 1979. ‘Correlates of Delinquency: The Illusion of Discrepancy between Self-report and Official Measures.’ American Sociological Review 44: 995–1014

Iturralde, M. (2010). Democracies without citizenship: Crime and punishment in Latin America. New Criminal Law Review, 13(2), 309-332.

Jones (2021) Social Class and Crime. Sociology Dissertation Topics for university Students.

Koh, H. H., & Buchwald, T. F. (2015). The Crime of Aggression: The United States Perspective. American Journal of International Law, 109(2), 257-295.

Pihl, R. O., & Peterson, J. (1995). Drugs and aggression: correlations, crime and human manipulative studies and some proposed mechanisms. Journal of Psychiatry and Neuroscience, 20(2), 141.

Piliavin, I., C. Thornton, R. Gartner and R.L. Matsueda. 1986. ‘Crime, Deterrence, and Rational Choice.’ American Sociological Review 51: 101–19

Urban, D. 1993. Logit-Analyse. Statistische Verfahren zur Analyse von Modellen mit qualitativen Response-Variablen. Stuttgart: Fischer.

Williams, R. K. (2003). Disaggregating delinquency trends in arrests and self-reported illegal behavior. The Pennsylvania State University.

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Employee Motivation: Role in Modern Management

Modern Management and Employee Motivation – Most of the organizations’ performance today relies heavily on the current dynamic change in technologies and quality of the employees to deliver on the assigned duties (Abid, 2015). Therefore, due to the technical requirement for service delivery, there is the need for the respective companies to initiate and promote morale to encourage performance in production. Indeed, the studies show that a motivated employee delivers the best to the expectation of the respective company (McCaffer, 2013).

Thus, motivation is a process that influences and induces an individual to work harder and efficiently to achieve the company’s objectives. However, the company can only achieve its target by embracing a democratic working environment that allows the views of the majority employee to thrive (Abid, 2015). For instance, the employees must be listened to, and their views taken into consideration for better results of the company. Therefore, the following few steps can help motivate the employee to work hard, diligently and yield good results for the company.

The first step in motivating the employees requires that the employer carries a proper assessment audit on the ability and the performance of the employees, and therefore rewarding based on their results (Reinholt, 2011). In fact, if the assessment is true, then it will promote an individual employee to work harder to maintain and improve their rating. For instance, the studies show that better-remunerated employees have confidence in their work regardless of their working condition (McCaffer, 2013). Hence, the management of such a company is relieved of the pressure that emanates from competitors.

Secondly, the management should also consider the working environment for the employees. In most cases, there is the need for the management to embrace a democratic leadership that allows all the views for the employees in the decision-making process.

In fact, this makes them feel privileged to be part and parcel of the company. However, to achieve this kind of strategy, there is need to have efficient communication, good language tones, and etiquette. Indeed, this is the most vital part of the management practice (Sennewald, 2003).

Lastly, modern companies are faced with enormous challenges to competition, unstable currencies that pose liquidity problems to companies and firms as well as the unpredictable weather patterns (Reinholt, 2011). However, due to the above challenges, most companies fall short of the right labor force that can provide the skill to match the problems that the companies face. In fact, for those employed, tend to feel overstretched in terms of their performances. Hence, it becomes wise for the management to enhance their moral by initiating learning programs and workshop that would train them to face the problems that exist and handle them effectively (Abid, 2015).

**Modern Management and Employee Motivation**

In conclusion, in today life, most companies and firms are faced with enormous challenges that affect their productivity and profitability. However, these are problems that are inherent to the fact that most companies do not embrace democratic leadership, but rather they consider authoritarian; where the managers are the final say to the company’s progress.

On the contrary, it is wise to embrace democracy so as to help compete with other companies and improve the performance in terms of profitability and productivity. However, it can only be achieved through employees’ motivation. For instance, by offering reasonable salaries and allowances, initiating training and workshop programs and enhancing proper communications skills according to the ranks. Therefore, the employees must feel that they are part and parcel of the company for the better results to come.

References

Abid, S. U. (2015, August 9). The Impact of Rewards on Employee Motivation, the Mediating role of Office Design: Empirical Evidence from Hotel Industry of Pakistan. IOSR Journal of Business and Management IOSR-JBM, 46-51.

McCaffer, F. H. (2013). Modern Construction Management. (7th, Ed.) Chicester: Wiley.

Reinholt, T. P. (2011, December 1). Why a Central Network Position Isn’t Enough: The Role of Motivation and Ability for Knowledge Sharing in Employee Networks. Academy of Management Journal, 1277-1297.

Sennewald, C. (2003). Effective security management. (4th, Ed.) Amsterdam: Butterworth-Heinemann.

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The Minimum Wage

How people are paid varies from place to place and largely. The most common way of payment is hourly. Therefore, the establishment of a minimum wage is important since the standards of living especially in cities are rising at a very high rate (Neumark et al., 2004). The minimum wage is simply the lowest amount an employee should be paid as he or she works hourly. The wages depend on which state one is and the kind of job involved. For the minimum wage to go up, the federal state or government has to declare.

Further research should take place to determine how people survive and what entails their ways of earning. There are ethical implications due to this issue on the minimum wage. The wages might raise, but people will shun from employing many people to cut the cost spent on salary payment. With low payment then people also tend to find other ways mostly illegal to get money. Therefore, it would be prudent to simply increase the minimum wage rate, and the government ensures they create more job opportunities in various ways to avoid idlers.

Most businesses have employed the minimum wage policy and are running that way. It has been noted that most of the hardworking folks are the lowest paid. Although many have raised an issue and said that as much as someone works at times on is not able to get what he or she exactly needs (Lopresti & Mumford, 2016). That is to cater for all basic needs even if someone decides to have some jobs at once it is quite impossible. Therefore, the best way to invest in the economy is by ensuring the low-income workers are paid well since they are hardworking and will ensure they get something from it.

Their way of spending is also highly monitored because of their understanding of the cost it takes to get to where they are. People have also claimed they can create more business opportunities and do away with much of the need for government assistance. With all these put in place then it is possible to achieve more and also secure the state from many arising issues due to the minimum wage.

There were some ways used to determine whether the sources of the information are credible. First, the author of the given information. According to Taylor, the wages should be increased since not many people have new employees too often. The author is an indicated it is most probably very reliable. In addition to that, one is also able to choose the desired author who is well known for having indicated facts and with good content.

Neumark says that wages are not enough, but when people also uphold high ethical standards, then they will be content with what they get, many people earn a lot and have much in their cup but instead decide to acquire more due to discontentment (Neumark et al., 2004). This source appears to be very reliable due to the indication of dates and timings that were exact, and one can refer to clearly. Neumark also states that a large number would avoid crime with the provision of needs, only a few are greedy.

The possession of a domain makes it reliable. It is almost impossible to balance both aspects but hopes for the best as has been witnessed from time to time. Therefore, work within your ability and live within your means and ensure as an individual one can strike a balance. As an employer promote your employees when the need arises and as an employee support the course for a greater gain and in turn share in the fruits.

Therefore, it is important to at least have some sources to ensure weight on any information given (Schmitt, 2013). Different people have different opinions hence giving one quite a wider perspective of approach to a particular issue. Scholarly articles also ensure that one meets the required standard since they help attain a certain quality of information (Belman & Wolfson, 2014).

They have also helped to ensure authenticity and present ability of a research paper, therefore; it can be used for the future response. Most of the important things to observe are who the author is, the sources, whether he cites contains a domain, its design, and style of writing. An outline of facts and some presently occurring circumstances helps one be able also to certify the information. With all these put in place then the article can be rendered reliable and indeed be used for more than the purpose of being kept but also for reference.

References

Belman, D., & Wolfson, P. J. (2014). What does the minimum wage do? What Does the Minimum Wage Do? 1, 1–456.

Lopresti, J. W., & Mumford, K. J. (2016). Who benefits from a minimum wage increase? Industrial and Labor Relations Review.

Neumark, D., Schweitzer, M., & Wascher, W. (2004). Minimum Wage Effects throughout the Wage Distribution. The Journal of Human Resources, 39(2), 425.

Schmitt, J. (2013). Why Does the Minimum Wage Have No Discernible Effect on Employment? Center for Economic and Policy Research, (February), 1–28.

Taylor, J., & Taylor, R. (2011). Working hard for more money or working hard to make a difference? Efficiency wages, public service motivation, and effort. Review of Public Personnel Administration, 31(1), 67–86.

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Cross-Cultural Management Assignment

Cross-Cultural Management at McDonald’s Assignment

Cross-Cultural Management Assignment – McDonald’s is the largest single-brand chain of restaurants globally. Since its establishment, it has offered various products such as soft drinks, cheeseburgers, hamburgers and potato chips in its menu with various additions and phasing out over time. McDonald’s has overtime spread across the world and overcome significant cultural differences between its home country, the United States and its new markets.

However, its expansion into India is likely to face more significant challenges due to the magnitude of cultural differences between the United States and India. Through the application of Hofstede’s cultural dimensions, the most significant differences include power distance, indulgence and individualism. The high acceptance of inequality between people, the restrained culture and collectivism of the Indian society are some of the challenges that McDonald’s is likely to face.

Further, through the application of Trompenaar’s culture dimension concept, the significant challenges include particularism and diffuse Indian culture which does not have clear boundaries on private and public places. However, the recommendations are that through adverse selection marketing, concentration on innovation, improvement of products quality, and staff satisfaction, the challenges can be overcome.

One of the largest restaurant franchises currently in the globe is McDonald’s. Having been started in California as a drinks and food stand in 1937 by Patrick McDonald, it has expanded to approximately 122 countries across the world (Grant, 2010). The McDonald’s Restaurant has mastered the art of franchising and is presently the largest restaurant chain with a single-brand and furthermore, the largest global restaurant operator. In the early years of operation, McDonald’s focused on selling hamburgers, apple pies, potato chips, coffee, cheeseburgers, and soft drinks. However, today several menu items have been phased out over time with several others brought on board.

According to Grant (2010), McDonald’s has also beaten all odds and ventures into nations with an entirely different culture with the United States which is the home country. However, there are other countries that the restaurant has yet to establish franchises. One of the countries that McDonald’s therefore ought to open the business in India. Although there is a significant difference in culture such as leadership, communication, staff handling, marketing and ethics, India has a substantial market that McDonald’s can exploit (Ferraro and Briody, 2013).

Cross-Cultural Management Findings

For McDonald’s Restaurant to take on the Indian Restaurant market, it has to overcome the challenges that are brought on board by the significant differences in culture between the home country, United States and India, the new and prospective market (Trompenaars and Hampden-Turner, 2011). Through the application of theories and concepts of Hofstede’s dimensions of culture and the Trompenaar’s dimensions of culture, the challenges that may emerge due to differences of culture can be analysed (Deresky, 2017).

Migliore (2011) states that the most significant cultural dimensions that McDonald’s restaurant franchise is likely to face in the process of opening the business and adapting in India are the differences in power distance, individualism and indulgence (See Appendix). One of the culture dimensions with the most significant difference is power distance. It elaborates the extent to which the less commanding members of the society in organisations and institutions in a nation, such as India, agree and expect that power is unequally spread.

The power distance score for India and the United States is 77 and 40 respectively and therefore; there is a difference of 37. This implies that McDonald’s is likely to have a difficult time in marketing their products and services in India based on the fact that the inequalities of the society are endorsed by the populace as much as the leaders of India do (Sriramesh, 2013).

The other significant cultural dimension difference that McDonald’s is likely to face is Individualism (See Appendix). According to Tu, Lin and Chang (2011), individualism is higher in the United States as compared to India. Individualism is the interdependence degree society can maintain among its members. The United States and India scores are 91 and 48 respectively. There is a difference of 43 between the two countries.

The United States is an individualistic society, and most people only take care of themselves and their direct families hence it is easy for the McDonald’s restaurant to influence individual families. This is primarily because individualism means that the standards of ethics are established by individual families and not the society (Tu, Li and Chang, 2011). However, the Indian society is a highly collectivist society. Most ethics and related-decisions are made on a society level. This culture is likely to create a challenge for McDonald’s restaurant as it is easier to influence a family as opposed to an entire society.

Another Hofstede’s cultural dimension of significant difference between the United States and India is the indulgence. According to Pandey and Devasagayam (2015), indulgence is the degree to which individuals attempt to control their impulses and desires based on the manner in which they were born. The score for indulgence in the United States and India is 68 and 21 respectively as below.

***Cross-Cultural Management Assignment***

A significant difference of 47 exists between the two countries. In the United States, children, adolescents and adults are highly indulgent hence communication and negotiation with various stakeholders is a readily achievable objective. However, Indians have a restrained culture, especially in food consumption. For instance, it will be a considerable challenge for McDonald’s to have Indians populace indulge in the consumption of beef.

This is because individuals have been brought up to respect cows as members of the family. Cows in Hindu are seen as animals that are motherly giving. All products with beef related products would mount a massive challenge in convincing Indians to be stakeholders, let alone communicating or negotiation with them.

On the other hand, the Trompenaar’s cultural dimensions that can be applied in analysing the difficulties McDonald’s may face in setting up business in India includes Universalism versus Particularism and Specific Versus Diffuse Cultures (Dickson et al. 2012). In the United States, leadership decisions are taken without situational context regard.

Therefore, McDonald’s managerial decisions are easily made in the United States as the concentration is on the legal contracts. That is universalism. However, India focuses on particularism which means that the concentration is more on personal relations. Leadership decisions are highly likely to be difficult in the making in India due to the focus on personal relations as opposed to legal contracts.

Furthermore, according to Katan (2014), the specific versus diffuse culture dimension is significant between the United States and India. Staff handling by the McDonald’s restaurant in the United States is easy as borders, distinctions, and private and public spaces are separated. For instance, the relationship between subordinates and their bosses are prohibited. Therefore, there are specific cultures in the United States that makes the staff handling easier for McDonald’s.

On the other hand, staff handling in India is most likely to be a challenge as the culture is diffuse. This means that private and public spaces do not have a clear border or distinction. More so, work relationships are allowed to extend beyond that to personal relationships. Employees and their superiors are most likely to be in each other’s life aspects beyond McDonald’s. This is most likely to make it challenging to handle staff as connections between the subordinates and bosses may lie beyond the working relationship.

Conclusion Cross-Cultural Management

McDonald’s expansion into India is most likely to face challenges due to a significant difference in culture. Cultures are very different between McDonald’s home country, the United States and India. Through the application of Hofstede’s dimensions of culture, indulgence, individualism and power distance are the most significantly different between the two countries (See Appendix). McDonald’s face the challenge of indulgence in India as Hindus are brought up believing beef should not be taken. Hence, all products related to beef are less likely to be served in India. More so, India is more of a collectivist nation than an individualistic one.

Most decisions on ethics, therefore, depend on society viewpoints. Thus, as opposed to the United States, McDonald’s is less likely to influence the people whose ethics rely on the society as opposed to an individual family. Further, power distance which elaborates on the inequality of people in the society is high in India, which makes it difficult in convincing people to Purchase McDonald’s products and services through marketing.

On the other hand, Trompenaar’s dimensions of culture which could have significant challenges on McDonald’s expanding into India includes specific versus diffuse cultures and universalism and particularism. Unlike the United States, India does not have clear borders on private and public spaces, and therefore, handling of staff would be difficult for McDonald’s as work relationships extend to personal relationships.

More so, leadership decisions would also face challenges as unlike in the United States, India focuses on personal relations as opposed to legal contracts in performing operations and making judgments. Indulgence, power distance and individualism are possible to influence over time. However, particularism and diffuse cultures would need more than just McDonald’s willingness to transform the dimensions as they border on government-based responsibilities.

Recommendations

For McDonald’s to overcome the challenges it is likely to face in setting up business in India; the following recommendations have to be carefully followed. According to Lian, Ferris and Brown (2012), one of the ways of reducing power distance in India by McDonald’s is ensuring that there is a reduction in errors, quality of services and products is improved, and there is a satisfaction of safety and staff members. More so, draconian and autocratic relationships should be eliminated and more premiums placed on collaboration between the employees and their supervisors. This will allow evenly distributed power and a comparatively lesser emotional distance between supervisors and employees.

For McDonald’s to excel in India, Individualism has to be promoted as opposed to collectivism. The culture of collectivism can be transformed through promoting innovation and high individual responsibility level. According to Zhang, Liang and Sun (2013), either technological or food innovation can dismantle the idea of collectivism as people are drawn towards personal needs rather than collective wants. Individualism will allow some competition degree amongst people hence decisions and ethical standards being decided individually rather than by the society. This would allow McDonald’s to penetrate the Indian market easily and to have a higher degree of influence.

Furthermore, indulgence can be heightened through constant adverse selection marketing. According to Er-li (2010), this kind of marketing allows the seller and the buyer to have information on the product which is not matching. With time, people in India may find themselves taking all kinds of products in the McDonald’s restaurant.

References

Deresky, H. (2017). International management: Managing across borders and cultures. (9^th ed.) London. Pearson.

Dickson, M. W., Castaño, N., Magomaeva, A., & Den Hartog, D. N. (2012). Conceptualizing leadership across cultures. Journal of world business, 47(4), 483-492.

Er-li, C. A. O. (2010). Channel partners selection and drive based on adverse marketing [J]. Science-Technology and Management, 2, 019.

Ferraro, G. P., & Briody, E. K. (2013). The cultural dimension of global business. Upper Saddle River: Pearson.

Grant, E. (2010). Might makes mcright: McDonald’s corporation’s trademark strategy. J. Contemp. Legal Issues, 19, 227.

Katan, D. (2014). Translating cultures: An introduction for translators, interpreters and mediators. Routledge.

Lian, H., Ferris, D. L., & Brown, D. J. (2012). Does power distance exacerbate or mitigate the effects of abusive supervision? It depends on the outcome. Journal of Applied Psychology, 97(1), 107.

Migliore, L. A. (2011). The relation between big five personality traits and Hofstede’s cultural dimensions: Samples from the USA and India. Cross-Cultural Management: An International Journal, 18(1), 38-54.

Pandey, S., & Devasagayam, R. (2015). The effect of deals and moods on compulsive buying in young adults: A comparison of an indulgence culture and a restraint culture. Journal of Customer Behaviour, 14(3), 257-270.

Sriramesh, K. (2013). Power distance and public relations: An ethnographic study of Southern Indian organisations. In International Public Relations (pp. 181-200). Routledge.

Trompenaars, F., & Hampden-Turner, C. (2011). Riding the waves of culture: Understanding diversity in global business. Nicholas Brealey International.

Tu, Y. T., Lin, S. Y., & Chang, Y. Y. (2011). A cross-cultural management comparison by individualism/collectivism among Brazil, Russia, India and China. International Business Research, 4(2), 175.

Zhang, X., Liang, X., & Sun, H. (2013). Individualism-collectivism, private benefits of control, and earnings management: A cross-culture comparison. Journal of business ethics, 114(4), 655-664.

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