Democratic leadership Essay

Democratic leadership style is the advisable leadership style which encourages participation in decision-making and it can be persuasive or consultative. However, there is no ‘best’ leadership style because nothing can be absolute right and comprehensive. In this assignment, I will illustrate the successful case about GLANZ GROUP which adopted autocratic leadership style in the beginning of its foundation. Furthermore, I will also show the successful cases by adopting democratic leadership or combination the different leadership styles in their company in order to support to my opinion. The cases from the books and from internet will also be illustrated. Strong leadership, no matter how well intentioned and benevolent, can foster dependency and subvert democracy. Yet absence of any leadership will lead to confusion, drift, and tension. As many progressive activists have remarked, there can be a â€Å"tyranny of structurelessness† as well as of autocracy. The example of Mr. Qinde Leung Mr. Qinde leung, Chairman of the board of directors and CEO of GLANZ GROUP who built up his own factory using 300 thousand RMB in 1978: Guizhou Feather and Down Factory, the former one of GLANZ GROUP. Soon after, he quickly realized that it was more beneficial for these down stream enterprises which used their products for further dress business. He decides to do the same business without any techniques and any skillful persons at that time. It was a big risk so that a lot of employees were against this plan. But Mr. Leung insisted on his own schedule and finally he got complete success depending on his own experience and special views. It can’t be denied that at the developing stage of the company, facing the complicated situation and unbalanced quality of employees, Mr. Leung had to mange his company in autarchy. With the revolution of modern enterprises system in 1990, Mr. Leung became the CEO of GLANZ GROUP, his decision was un-challenged, but luckily, he has the special v iew and convincing personality and lead the GLANZ GROUP to today’s flourish. It has become an enterprise that owns about 740 acres and 20,000 staffs by  2003. Being one of the most outstanding groups of home appliance in China, GALANZ also won the fames of â€Å"Global Microwave Oven Manufacturing Center†, â€Å"Global Air-con Manufacturing Center†, â€Å"Global Small Appliance Manufacturing Center† and â€Å"Logistic Center†. In Oct 2003, GLANZ invests 2 billion RMB in purchasing about 495 acres of land in Huangpu Town, Zhongshan City to set up the largest air-con manufacturing base in the world. Its annual production capacity of air-con will increase to 12 million sets. (http://www.galanz.com.cn) Mr. Qinde leung, the benevolent-autocratic leader is described as powerful and prestigious but one who can be communicated with and is interested in his subordinates’ problems (Robert N. McMurry, â€Å"The Case for Benevolent Autocracy,† Harvard Business Review, Vol. 36 (January-February 1958), pp. 82-90). He structures the activities of his subordinates, makes policy decisions affecting them, and enforces discipline. He may encourage participation in planning, but in executing he is the â€Å"chief.† However, James Gibson, John Ivancevich, and James Donnelly, Jr., say even this style has been weakened by recent changes in attitudes within our society (James L. Gibson, John M. Ivancevich, and James H. Donnelly, Jr., Organizations: Structure, Processes, Behavior (Dallas: Business Publications, Inc., 1973), p. 298). This may particularly be true for younger generations as they express desires to shift away from any authoritative or paternalistic environment. Every organization will solve the problem of leadership in a different way. Some successful co-ops– especially smaller ones–are highly egalitarian. They have no formal leaders and few overt signs of leadership behavior. Other groups do well, at least for a generation, with a single central leader who encourages the members to participate. Many successful groups find middle ground. They reject dominating leaders and also escape the â€Å"tyranny of structurelessness.† The example of the OEOC (Ohio Employee Ownership Center) While attending the University of Texas and later getting his Ph.D. in  political science from Princeton University, John Logue studied abroad in Mexico, Denmark, and Germany. He was particularly interested in the worker-owned and democratically operated Mondragon cooperatives of the Basque region in Spain. With lots of plants under its control, the Mondragon Co-operative Corporation is the largest business corporation in its region, and the eighth largest in Spain. Several years later, Logue observed similar cooperatives and employee-owned enterprises in Quebec, Canada. Studying these models built his belief that democratically operated well to the company, just as democratic countries outperform autocratic ones. Logue, a professor of political science at Kent State, directs OEOC. Assisted by a small staff, he works to increase the number of employee-owned and run companies and to help their employees build personal assets. When a company considers shutting down an Ohio facility, for example, OEOC shows its owners and workers how employee ownership can save their livelihoods. Then, after plants make the transition to employee ownership, OEOC provides continue support to worker-owners through education, connections to consultants, and help organizing democratic structures for decision-making and communication. In all, OEOC provides 4,000 hours of leadership training per year. Since 1987, the group has helped 438 Ohio companies and plants, employing more than 83,000 people, explore the possibility of employee ownership. Of these, 64 have implemented partial or complete employee ownership plans. Logue has demonstrated that direct employee-ownership of companies promotes reinvestment, job creation, and asset-building for workers and their local economies. (http://dept.kent.edu/oeoc/index.htm) The Kohl’s Department Store Example Store manager, Audrey McCaskey, works with other employees and assistant managers of the store to come up with ways to improve their store’s performance. (http://www.kohlscorporation.com/AboutKohls/AboutKohls01.htm) As the leader, Audrey is a qualified manager who fits every characteristic of a good store manager. Her ways of doing things at times are fierce yet ethical, and with her team, she is determined to get the job done; proving  that leadership is an essential part of a manager’s position. When Audrey came to be General Manager of Kohl’s back in 1997, Kohl’s was excelling in sales and profit. Her energy and motivation (although sometimes a bit sarcastic) as well as her visions for the store, classify her as an excellent leader. However, I would also classify her as a transactional leader. Besides motivating employees, Audrey is hardworking and determined to get the job done. She runs her store efficiently and tries to keep it as a smooth operation. In fact, most managers used all the different styles on the job at some point or another. Many of these management styles are practiced within the management team of Kohl’s. Through these different styles, management is able to lead in a more effective manner. Firstly, coercive leaders – Management at Kohl’s demands that each and every employee gives their 100% effort during their jobs. Working as a member of the team, each employee is expected to do their share of the work. Secondly, authoritative leaders- Management encourage employees to work hard and continue the trend of growth, innovation, and profitability. Thirdly, affinitive leaders- Known for Team based operations, team leaders at Kohl’s create a harmonic work setting, making all employees feel comfortable with the store setting. Managers also try to develop and sustain working relationships with all employees. Fourthly, democratic leaders- Participation is practically inevitable while working at Kohl’s. Managers encourage participation through contests, and jean or tennis shoe days, which usually have positive results. Fifthly, pacesetting leaders- All employees are told what is expected of them and their performance. Therefore, employees work at achieving expectations and or goals through team work and self direction. Lastly, Coaching Leaders- Each new employee of Kohl’s is given extensive training within the first 3-6 weeks of employment. With this, managers hope to develop leadership skills among all employees. Every morning before opening of the store, Kohl’s manager or assistant managers have a brief meeting, discussing the stores’ current sales increases or decreases and upcoming sales. For this meeting, managers follow an outline that briefly goes over each priority for the day. The outline  goes over sales plans, goals, and actual, credit application goals, and actual, store news, top priorities for the day, and advertising. When sales are up, employees are encouraged to keep up the good work and often are awarded with a jean day. When awarded a jean day, employees are allowed to wear jeans to work. Managers will also advise employees having corporate visits. Corporate visits are that someone from the Kohl’s corporate center visits the store to make sure everything is in place and in order. During these visits, all associates are asked to maintain their departments especially well. Managers will also hold afternoon meetings for employees who work the afternoons a nd evenings. Another form of communication is the weekly K-Notes which come inserted in each weekly paycheck. In K-Notes, store managers briefly discuss store news such as upcoming events, corporate visits, new associates, etc. Each employee of Kohl’s receives an evaluation every 90 days from Audrey or an assistant store manager. During these evaluations the manager will go over with the employees their current job performance. The manager will point out all the positive things in the employees’ performance and the entire negative. Through this discussion, the employees are able to learn their strong points and what needs to be done to improve their overall work performance. When employees receive a good evaluation, their salary is increased. Obviously, Kohl’s has done very well in its approaches to team leading and teamwork overall. By practicing each of the individual styles of leadership, Kohl’s has been proved to be successful in its operations. In a word, the situational approach to leadership styles has been a valuable contribution. More realistic than previous theories, it shows that there is no â€Å"one best† style for all situations. Attempting to define and determine a proper leadership style is an extremely complex task for any leader. The evidence is becoming clearer that there is no single, all-purpose style of behavior that is effective in all managerial situations. Someday, experience and research may provide us with â€Å"the one best way.† Until then, each manager must be open-minded, informed, and adaptable. Reference [1] About the OEOC 2001 [Online, assessed 10 Mar. 2004] URL: http://dept.kent.edu/oeoc/AbouttheOEOC/AboutTheOEOC.htm [2] About Kohl’s 2003 [Online, assessed 8 Mar. 2004]. URL: http://www.kohlscorporation.com/AboutKohls/AboutKohls01.htm [3] Bill C. 2001 We Are All Leaders! Democratic Leadership Makes Us More Powerful [Online, assessed 6 Mar. 2004]. URL: http://www.geonewsletter.org/ed44cas.htm [4] James L. Gibson, John M. Ivancevich, and James H. Donnelly, Jr., Organizations: Structure, Processes, Behavior (Dallas: Business Publications, Inc., 1973), p. 298 [5] Kouzes, J. M., & Posner, B. Z. 1995 The leadership challenge: How to keep getting extraordinary things done in organizations (2nd ed.). San Francisco: Jossey-Bass. [6] Robert N. McMurry, ‘The Case for Benevolent Autocracy’, Harvard Business Review, Vol. 36 (January-February 1958), pp. 82-90 [7] Soaring Galanz 2002 [Online, assessed 10 Mar. 2004]. URL: http://www.galanz.com.cn [8] Yukl, G. A. 1998 Leadership in organizations (4th Ed.). Englewood Cliffs, NJ: Prentice-Hall.

Incumbents and Their Re-election Essay

Statistical research suggests that in 1998 a total of 395 Representatives and 26 Senators were reelected (U. S. Census, 2000). Since the middle of the 20th century and up to the present time, the process of re-electing incumbents has turned into one of the major political trends. The more incumbents sought to reestablish themselves in political office, the more concerned political scholars became about the causes and factors of such political advantage. The current state of political research suggests that a whole set of factors predetermines incumbents’ continuous political success, with access to media and excessive financial resources being the most important elements of political fight. True, those trying to become the members of political office for the first time often lack sufficient political opportunities, compared to resources, which incumbents can access and use in their election campaigns. Reelection of incumbents has already turned into the major political trend in the U. S. , and there are several reasons for that. To begin with, incumbents are frequently referred to as â€Å"the perks of Office†; in other words, all Congress members are given enough material and nonmaterial resources to hire professional staff, whose primary responsibility is to turn their Congress employers into well-represented, widely recognized and well-liked political figures (McKay 140). For example, incumbents can send postage-free letters to their constituents, and can use these as a part of their promotional political campaigns (McKay 140). These are just some out of many benefits which Congress members are being granted by the state. Time is just another component of incumbents’ success in Congress. It should be noted, that Congress is incumbents’ full-time job, and meeting voters, resolving local issues, and participating in public events and television shows are what they are being paid for. It appears that for many potential candidates to run for office and to try to combat an existing Congress member would mean to face the lack of media and financial resources, which for the current Congress members are available on a regular basis (McKay 147). Certainly, all these benefits would be irrelevant and unimportant if not for the image promotion and visibility of all Congress members. It is difficult to deny the fact that â€Å"sitting members of Congress are almost universally recognized in their districts† (Cusdi). This visibility is the direct result of one’s running for office, and after having served two or more years for Congress, its members become widely recognized and accepted among their constituents; and voters are more likely to give their vote to those whom they already know for their Congressional achievements than those, who just start their political career. It should also be noted, that such political visibility is directly associated with incumbents’ ability to organize their promotional campaigns. Having won at least one election campaign, an incumbent is more prepared to face the major political and organizational challenges than his (her) political opponents (McKay 152). Finally, these are financial resources that predetermine incumbents’ political successes. McKay writes that â€Å"for both senators and representatives, money has become a crucial resource in congressional elections. With voters acting in response to the appeal of individual candidates rather than to parties, both incumbents and challengers must ensure that the voters know who they are and what their record is† (169). It appears that in terms of money, incumbents also have significant comparative advantage over political outsiders. Average financial resources available to incumbents are 2-3 times higher than those available to challengers, which makes it impossible for the latter to develop well-grounded media campaigns. For example, in 2002 many Republican incumbents took advantage of â€Å"fundraising visits by President Bush during the 2002 election cycle† (Smith, Roberts & Wielen 74). As a result, incumbents have much more chances to win elections for the second time, and will hardly give their position away to political outsiders. Conclusion A whole set of advantages works to provide incumbents with an opportunity to be reelected. Time, visibility, access to media, and excessive financial resources – all these factors make incumbents less vulnerable to political changes and give them a kind of comparative advantage over political challengers. On the one hand, these advantages seem to make elections unfair, but on the other hand, political outsiders have to develop convincing argumentation that would persuade constituents to change their political commitments, and to give a political beginner a unique chance to run for office.

The influence of leadership style on the interpersonal relationship Essay

The influence of leadership style on the interpersonal relationship between employees and employers - Essay Example This research will begin with the statement that in the view of Bagley, leadership is â€Å"the ability to guide and motivate a group of people to a common purpose.† To this end, Allen defines a leader as one â€Å"who can visualize a better world in the future and is able to convince others to join him or her on the journey.† This is to explain that leadership is all about guiding a group of people towards achieving a common goal. Leadership is needed for the growth of companies, organizations, institutions and even countries. As a matter of fact, a leader’s qualities, style, and strategies can determine to a very large extent, whether or not the people or organization he is leading will succeed or fail. In view of the importance of leaders to succeed in their leadership, however, several leadership styles, strategies, and qualities have been propounded by scholars and philosophers. Based on these qualities and strategies, it is believed that the kind of qualiti es a leader possesses and the sort of strategies he puts in place in his leadership can do or undo his group. To this effect, and based on a number of leadership strategies available in the literature, a number of interview questions were developed and administered on 5 employees in a U.S organization to find from them what they expect from their leaders. These expectations have been grouped into four themes and analyzed in terms of leadership qualities and strategies as propounded in existing literature.... Each section had two major questions. The results obtained from each employee were recorded on separate sheets of papers, after which a qualitative analysis was applied. The qualitative analysis did not involve the use mathematical diagrams, charts and tables. Rather, it made use of objective evaluation of the results in a holistic manner where conclusions on responses were taken judging from what the majority of workers without giving specific numbers as to what each respondent said. Below is an evaluation and report from information gathered in the interview as pertains to each theme. The information have been evaluated and analyzed by comparing and contrasting them to current leadership literature, some of which have been quoted in the report. The influence of leadership style on the interpersonal relationship between employees and employers There are several leadership styles but for the sake of this exercise, three leadership styles were used. These leadership styles are laissez faire style, autocratic style, and participative style. According to Legacee Management System (2011) these three leadership styles fall under the classical leadership style. According to Legacee Management System (2011), â€Å"The laissez faire style implies low control, the autocratic style high control and the participative lies somewhere in between.† Based on explanation of the three leadership styles, the employees were asked which of them existed at their in their organization. From the description of the leadership style that goes on in their organization, it was deduced that four of them pointed to autocratic leadership style where as one pointed to participative leadership

Quantitative Methods Assignment Example | Topics and Well Written Essays - 500 words

Quantitative Methods - Assignment Example Therefore, someone seeks to unveil the relationship between the variables. This relationship can assume a status of being positive, negative or null. Positive relationship encompasses denotations as (+ve), Negative by (–ve) and null by (0) (Asuero & Bueno 2011: p.45). Zero exuberates that there exists extremely no relationship between the variables. Correlation thus becomes useful when trying to gauge relations of sales for the business. Quantitative regression outdoes correlation because of the information of ease in predictions. Graphs entailing reliant and independent variables produce lines of finest fit (Twomey& Kroll, 2008: P.531). The best-fit precisions enable the company to explore in proliferating merchandise encompassing required exactitude in the marketplace. One indisputable importance of the quantitative techniques would be information that aid in estimation of variables. For instance, sales exemplify a variable that counts most to a firm. Therefore, sales made at instances denote undeviating or indirect correlation to matters of taste, earnings, and cost. Attention to these matters leads to improved sales because of greater quality (Parasumaran.et.al, 2007: P 345). Regression entails the importance of exemplifying trend within certain durations. Therefore, this helps in keeping the trend in sales through revising production. Evaluating trends ensures that there entails observance to current precisions involving customers. The depiction of such trends ensures that focus is paramount in firms. Regression technique also exemplifies effectiveness of advertising performed to a certain product.

Improving Customer Service at Hotels Term Paper

Improving Customer Service at Hotels - Term Paper Example This research will begin with the statement that service delivery is the main issue which arises most often in case of the hotel industry. The persons responsible to deliver the state of the art service are either not efficient enough to do so or the service delivered is not effective enough. They sometimes lack the skill to generate client satisfaction. The clients often show dissatisfaction with the menu list or the price list charged against the dishes the hotels offer. Many hotels charge a much higher price for their breakfast for example in case the customer prefers to have an omelet then he or she will be charged double the price that is being charged on the street. Some other problems are related to crunch in parking space and the high rate charged for providing the internet connections. The customers who visit frequently to the hotels especially the business clients mainly face the problem of lack of outlets for charging of their phones and laptops since they do not find the place for charging their gazettes. When the hotel authorities fail to provide satisfactory services to the customers as per the terms and conditions that are agreed upon, they often claim for a refund and this is critical for the authorities. The hotel authority is also alleged for the false and misguiding information that is provided about the company in the website, magazines etc, the amenities and the price structure of the hotel is sometimes misleading since the price and the amenities that are provided in the advertisement is not offered in reality. Therefore the customers or the clients have to suffer while visiting the hotel on the basis of the advertisement that is published, the behavior of the employees or the staff in the hotel is not always up to the expectation. At times they behave very rudely with the clients and it hampers the goodwill, image, and reputation of the hotels. The hotels are required to focus on the quality of the service that is provided. They need to t ake urgent care in taking measurements to improve the quality of the services offered and the food that is provided by the hotel to its customers or the clients.

PC&D_Inc Case Study Example | Topics and Well Written Essays - 250 words

PC&D_Inc - Case Study Example Similarly, innovation formed part of the organization’s approaches to its successful ventures (Docenti, 1986: 1-7; Hill and Jones, 2012: 167, 168). Though the company later faced challenges into productivity, it previously had successful initiatives towards value creation. PC&D achieved value creation through innovation into quality products that were highly regarded by consumers. This for instance established the company as a national market leader. Similarly, marketing initiatives that were achieved through a strong marketing team and a determined sales team ‘added value’ to the company’s ability to generate revenues (Docenti, 1986: 1-9; Hill and Jones, 2012: 167, 168). The company’s major resource was its employees and management. While it shared same raw materials with its competitors, it was able to organize its management and employees towards successful competitive advantage. The essence of the company’s employees was demonstrated when it lost its sales team leading to declined revenues (Docenti, 1986: 1-9; Hill and Jones, 2012: 167, 168). The success that was realized by the company before its fall was therefore because of its expansion and competitive advantage strategies, its successful value creation and its resource in dedicated human

Is a woman's earning potential equal to that of a man Research Paper

Is a woman's earning potential equal to that of a man - Research Paper Example Variations in levels of income have been an inspiration for much empirical research and debate ever since the mid nineteenth century. In addition, statistics and figures for analyzing variations in income levels have since increased in availability. Many factors affect the earnings that individuals make, including level of education, gender, race, social backgrounds, and occupational differences. In studies to disentangle discrepancies in annual incomes between men and women, a significant portion of the difference remains unexplainable and highly controversial. Many researchers attribute the unexplained variation to gender discrimination in the workplace, although numerous research efforts try to explicate the particular elements that contribute to the unexplained variation. This report focuses on determining whether women and men have any significant differences in their annual incomes for determinate years of education. Introduction The advances feminist movements have made a sign ificant contribution to the income parity for men and women over the last few decades. The income gap for women and men started to decrease or significantly in the 70s. For 1980 to 1990, income disparity stood at 60.2% and 71.6%, a 3.4% increase.From 1990 to 2000, the change was from 71.6% and 73.7%, a change of 2.1%. From 2000 to 2010, the ratio of women to men’s income rose from 73.7% to 77%, a 3.3% upsurge.However, significant differences still abound in the income levels between men and women, especially for high paying jobs. ... Up to bachelors level, the years of education are more determinable, but for masters and PhD degree programs. According to a research by the Bureau of Labor Statistics, analyzing the income anomalies between women and men, the comparisons were against level of education or years of learning. Income levels and years of learning for women (US Census Bureau, 1) Educational Level Years of Education Women’s Income High School 12 21,117 Some College 14 25,185 Bachelor's 16 36,532 Masters 18 45,730 Doctorate 20 54,666 Income levels and years of education for men (US Census Bureau, 1) Educational Level Years of Education Men’s Income High School 12 32,085 Some College 14 39,150 Bachelor's 16 52,265 Masters 18 67,123 Doctorate 20 78,324 A comparison in income levels for men and women (US Census Bureau, 14) Educational Level Years of Education Men’s Income Women’s Income Average Income Women as a % of Men's 1 High School 12 32,085 21,117 26,601 65.8% 2 Some College 14 39,150 25,185 32,168 64.3% 3 Bachelor's 16 52,265 36,532 44,399 69.9% 4 Masters 18 67,123 45,730 56,427 68.1% 5 Doctorate 20 78,324 54,666 66,495 69.8% Background on the number of years of education and annual income The number of years of learning a person has considerably affects a person’s annual income level. As the number of years of education increases, the income also increases, although inherent differences still exist within these differences. For instance, persons with a bachelor’s degree tend to earn almost double the incomes of high school graduates. According to a 2005 study on income and gender by the Bureau of Labor Statistics (US Bureau of Labor Statistics 2), women of similar educational levels with men earned significantly less in comparison to their male

The Relationship between Social Media and Brand Management Dissertation

The Relationship between Social Media and Brand Management - Dissertation Example Hence, it is noteworthy that social media has become one of the key business communication tools, which has helped modern organizations to promote their brands worldwide. On the other hand, the online marketing concept has triggered impressive transformations, especially in the domain of brand management, thereby eliminating the risks inherent to the traditional marketing concept (Brindle, 2011). Â  The use of social media for brand management was also considered quite helpful for both the customers as well as for the company, owing to its ability to target customers in clusters and reach them with efficiency, within a very short time span. It is also noteworthy that the brand image of a company is perceived as one of the most valuable assets in the modern day context. This particular assertion becomes quite apparent with reference to the strategies applied by Alibaba Group to promote its brand in a popular Chinese social media named Sina Weibo. Alibaba Group is noted as one of the most popular Chinese e-commerce retail outlets, which deals in all kinds of products. Prior to the inception of social media, brand managers engaged in different companies followed various marketing communication strategies, such as storytelling, aggressive and frequent advertisement as well as newsletter distribution to the customers. In this regard, it can be mentioned that the traditional metho ds of brand promotion were less cost-efficient in comparison to the modern brand promotion strategies, which certainly raises a noteworthy challenge to modern organizations. However, the advent of online brand management strategy has proved cost efficient as well as less time-consuming in nature to mitigate previous stress factors associated to company’s customer relationship strategies through brand management (Jenkinson et. al., 2005). Â  

The Organization of the Petroleum Exporting Countries Essay Example for Free

The Organization of the Petroleum Exporting Countries Essay The Organization of the Petroleum Exporting Countries (OPEC) is a permanent, intergovernmental Organization, created at the Baghdad Conference on September 10–14, 1960, by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. The five Founding Members were later joined by nine other Members: Qatar (1961); Indonesia (1962) – suspended its membership from January 2009; Libya (1962); United Arab Emirates (1967); Algeria (1969); Nigeria (1971); Ecuador (1973) – suspended its membership from December 1992-October 2007; Angola (2007) and Gabon (1975–1994). OPEC had its headquarters in Geneva, Switzerland, in the first five years of its existence. This was moved to Vienna, Austria, on September 1, 1965. OPECs objective is to co-ordinate and unify petroleum policies among Member Countries, in order to secure fair and stable prices for petroleum producers; an efficient, economic and regular supply of petroleum to consuming nations; and a fair return on capital to those investing in the industry. The 1960s OPEC’s formation by five oil-producing developing countries in Baghdad in September 1960 occurred at a time of transition in the international economic and political landscape, with extensive decolonisation and the birth of many new independent states in the developing world. The international oil market was dominated by the â€Å"Seven Sisters† multinational companies and was largely separate from that of the former Soviet Union (FSU) and other centrally planned economies (CPEs). OPEC developed its collective vision, set up its objectives and established its Secretariat, first in Geneva and then, in 1965, in Vienna. It adopted a ‘Declaratory Statement of Petroleum Policy in Member Countries’ in 1968, which emphasised the inalienable right of all countries to exercise permanent sovereignty over their natural resources in the interest of their national development. Membership grew to ten by 1969. The 1970s OPEC rose to international prominence during this decade, as its Member Countries took control of their domestic petroleum industries and acquired a major say in the pricing of crude oil on world markets. On two occasions, oil prices rose steeply in a volatile market, triggered by the Arab oil embargo in 1973 and the outbreak of the Iranian Revolution in 1979. OPEC broadened its mandate with the first Summit of Heads of State and Government in Algiers in 1975, which addressed the plight of the poorer nations and called for a new era of cooperation in international relations, in the interests of world economic development and stability. This led to the establishment of the OPEC Fund for International Development in 1976. Member Countries embarked on ambitious socio-economic development schemes. Membership grew to 13 by 1975. The 1980s After reaching record levels early in the decade, prices began to weaken, before crashing in 1986, responding to a big oil glut and consumer shift away from this hydrocarbon. OPEC’s share of the smaller oil market fell heavily and its total petroleum revenue dropped below a third of earlier peaks, causing severe economic hardship for many Member Countries. Prices rallied in the final part of the decade, but to around half the levels of the early part, and OPEC’s share of newly growing world output began to recover. This was supported by OPEC introducing a group production ceiling divided among Member Countries and a Reference Basket for pricing, as well as significant progress with OPEC/non-OPEC dialogue and cooperation, seen as essential for market stability and reasonable prices. Environmental issues emerged on the international energy agenda. The 1990s Prices moved less dramatically than in the 1970s and 1980s, and timely OPEC action reduced the market impact of Middle East hostilities in 1990–91. But excessive volatility and general price weakness dominated the decade, and the South-East Asian economic downturn and mild Northern Hemisphere winter of 1998–99 saw prices back at 1986 levels. However, a solid recovery followed in a more integrated oil market, which was adjusting to the post-Soviet world, greater regionalism, globalisation, the communications revolution and other high-tech trends. Breakthroughs in producer-consumer dialogue matched continued advances in OPEC/non-OPEC relations. As the United Nations-sponsored climate change negotiations gathered momentum, after the Earth Summit of 1992, OPEC sought fairness, balance and realism in the treatment of oil supply. One country left OPEC, while another suspended its Membership. The 2000s An innovative OPEC oil price band mechanism helped strengthen and stabilise crude prices in the early years of the decade. But a combination of market forces, speculation and other factors transformed the situation in 2004, pushing up prices and increasing volatility in a well-supplied crude market. Oil was used increasingly as an asset class. Prices soared to record levels in mid-2008, before collapsing in the emerging global financial turmoil and economic recession. OPEC became prominent in supporting the oil sector, as part of global efforts to address the economic crisis. OPEC’s second and third summits in Caracas and Riyadh in 2000 and 2007 established stable energy markets, sustainable development and the environment as three guiding themes, and it adopted a comprehensive long-term strategy in 2005. One country joined OPEC, another reactivated its Membership and a third suspended it. Venezuela and Iran were the first countries to move towards the establishment of OPEC in the 1960s by approaching Iraq, Kuwait and Saudi Arabia in 1949, suggesting that they exchange views and explore avenues for regular and closer communication among petroleum-producing nations.[citation needed] The founding members are Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela. Later members include Algeria, Angola, Ecuador, Gabon, Indonesia, Libya, Qatar, Nigeria, and the United Arab Emirates. In 10–14 September 1960, at the initiative of the Venezuelan Energy and Mines minister Juan Pablo Perez Alfonso and the Saudi Arabian Energy and Mines minister Abdullah al-Tariki, the governments of Iraq, Iran, Kuwait, Saudi Arabia and Venezuela met in Baghdad to discuss ways to increase the price of the crude oil produced by their respective countries.[citation needed][6][7] Oil exports imports differenceOPEC was founded to unify and coordinate members petroleum policies. Between 1960 and 1975, the organization expanded to include Qatar (1961), Indonesia (1962), Libya (1962), the United Arab Emirates (1967), Algeria (1969), and Nigeria (1971). Ecuador and Gabon were early members of OPEC, but Ecuador withdrew on December 31, 1992[8] because it was unwilling or unable to pay a $2 million membership fee and felt that it needed to produce more oil than it was allowed to under the OPEC quota,[9] although it rejoined in October 2007. Similar concerns prompted Gabon to suspend membership in January 1995.[10] Angola joined on the first day of 2007. Norway and Russia have attended OPEC meetings as observers. Indicating that OPEC is not averse to further expansion, Mohammed Barkindo, OPECs Secretary General, recently asked Sudan to join.[11] Iraq remains a member of OPEC, but Iraqi production has not been a part of any OPEC quota agreements since March 1998. In May 2008, Indonesia announced that it would leave OPEC when its membership expired at the end of that year, having become a net importer of oil and being unable to meet its production quota.[12] A statement released by OPEC on 10 September 2008 confirmed Indonesias withdrawal, noting that it regretfully accepted the wish of Indonesia to suspend its full Membership in the Organization and recorded its hope that the Country would be in a position to rejoin the Organization in the not too distant future. [13] Indonesia is still exporting light, sweet crude oil and importing heavier, more sour crude oil to take advantage of price differentials (import is greater than export). 1973 oil embargo[edit]Main article: 1973 oil crisis In October 1973, OPEC declared an oil embargo in response to the United States and Western Europes support of Israel in the Yom Kippur War of 1973. The result was a rise in oil prices from $3 per barrel to $12 and the commencement of gas rationing. Other factors in the rise in gasoline prices was the peak of oil production in the United States around 1970 and the devaluation of the U.S. dollar.[14] U.S. gas stations put a limit on the amount of gasoline that could be dispensed, closed on Sundays, and limited the days gasoline could be purchased based on license plates. Even after the embargo concluded, prices continued to rise.[15] The Oil Embargo of 1973 had a lasting effect on the United States. U.S. citizens began purchasing smaller cars that were more fuel efficient.[citation needed] The Federal government got involved first with President Richard Nixon recommending citizens reduce their speed for the sake of conservation, and later Congress issuing a 55 mph limit at the end of 1973. This change decreased consumption[citation needed] as well as crash fatalities[citation needed]. Daylight savings time was extended year round to reduce electrical use in the American home. Nixon also formed the Energy Department as a cabinet office.[citation needed] People were asked to decrease their thermostats to 65 degrees and factories changed their main energy supply to coal. One of the most lasting effects of the 1973 oil embargo was a global economic recession. Unemployment rose to the highest percentage on record while inflation also spiked. Consumer interest in large gas guzzling vehicles fell and production dropped. Although the embargo only lasted a year, during that time oil prices had quadrupled and OPEC nations discovered that their oil could be used as both a political and economic weapon against other nations 1975 hostage incident[edit]Main article: OPEC siege This section needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. (September 2011) On 21 December 1975, Ahmed Zaki Yamani and the other oil ministers of the members of OPEC were taken hostage by a six-person team led by terrorist Carlos the Jackal (which included Gabriele Krocher-Tiedemann and Hans-Joachim Klein), in Vienna, Austria, where the ministers were attending a meeting at the OPEC headquarters. Carlos planned to take over the conference by force and kidnap all eleven oil ministers in attendance and hold them for ransom, with the exception of Ahmed Zaki Yamani and Irans Jamshid Amuzegar, who were to be executed. Carlos led his six-person team past two police officers in the buildings lobby and up to the first floor, where a police officer, an Iraqi plain clothes security guard and a young Libyan economist were shot dead. As Carlos entered the conference room and fired shots in the ceiling, the delegates ducked under the table. The terrorists searched for Ahmed Zaki Yamani and then divided the sixty-three hostages into groups. Delegates of friendly countries were moved toward the door, neutrals were placed in the centre of the room and the enemies were placed along the back wall, next to a stack of explosives. This last group included those from Saudi Arabia, Iran, Qatar and the UAE. Carlos demanded a bus to be provided to take his group and the hostages to the airport, where a DC-9 airplane and crew would be waiting. In the meantime, Carlos briefed Yamani on his plan to eventually fly to Aden, where Yamani and Amuzegar would be killed. The bus was provided the following morning at 6.40 as requested and 42 hostages were boarded and taken to the airport. The group was airborne just after 9.00 and explosives placed under Yamanis seat. The plane first stopped in Algiers, where Carlos left the plane to meet with the Algierian Foreign minister. All 30 non-Arab hostages were released, excluding Amuzegar. The refueled plane left for Tripoli where there was trouble in acquiring another plane as had been planned. Carlos decided to instead return to Algiers and change to a Boeing 707, a plane large enough to fly to Baghdad nonstop. Ten more hostages were released before leaving. With only 10 hostages remaining, the Boeing 707 left for Algiers and arrived at 3.40 a.m. After leaving the plane to meet with the Algerians, Carlos talked with his colleagues in the front cabin of the plane and then told Yamani and Amuzegar that they would be released at mid-day. Carlos was then called from the plane a second time and returned after two hours. At this second meeting it is believed that Carlos held a phone conversation with Algerian President Houari Boumedienne who informed Carlos that the oil ministers deaths would result in an attack on the plane. Yamanis biography[citation needed] suggests that the Algerians had used a covert listening device on the front of the aircraft to overhear the earlier conversation between the terrorists, and found that Carlos had in fact still planned to murder the two oil ministers. Boumedienne must also have offered Carlos asylum at this time and possibly financial compensation for failing to complete his assignment. On returning to the plane Carlos stood before Yamani and Amuzegar and expressed his regret at not being able to murder them. He then told the hostages that he and his comrades would leave the plane after which they would all be free. After waiting for the terrorists to leave, Yamani and the other nine hostages followed and were taken to the airport by Algerian Foreign Minister Abdelaziz Bouteflika. The terrorists were present in the next lounge and Khalid, the Palestinian, asked to speak to Yamani. As his hand reached for his coat, Khalid was surrounded by guards and a gun was found concealed in a holster. Some time after the attack it was revealed by Carlos accomplices that the operation was commanded by Wadi Haddad, a Palestinian terrorist and founder of the Popular Front for the Liberation of Palestine. It was also claimed that the idea and funding came from an Arab president, widely thought to be Muammar al-Gaddafi. In the years following the OPEC raid, Bassam Abu Sharif and Klein claimed that Carlos had received a large sum of money in exchange for the safe release of the Arab hostages and had kept it for his personal use. There is still some uncertainty regarding the amount that changed hands but it is believed to be between US$20 million and US$50 million. The source of the money is also uncertain, but, according to Klein, it was from an Arab president. Carlos later told his lawyers that the money was paid by the Saudis on behalf of the Iranians and was, diverted en route and lost by the Revolution.[17] The 1980s oil gluts OPEC net oil export revenues for 1971 2007.[18]In response to the high oil prices of the 1970s, industrial nations took step to reduce dependence on oil. Utilities switched to using coal, natural gas, or nuclear power while national governments initiated multi-billion dollar research programs to develop alternatives to oil. Demand for oil dropped by five million barrels a day while oil production outside of OPEC rose by fourteen million barrels daily by 1986. During this time, the percentage of oil produced by OPEC fell from 50% to 29%. The result was a six-year price decline that culminated with a 46 percent price drop in 1986. In order to combat falling revenues, Saudi Arabia pushed for production quotas to limit production and boost prices. When other OPEC nations failed to comply, Saudi Arabia slashed production from 10 million barrels daily in 1980 to just one-quarter of that level in 1985. When this proved ineffective, Saudi Arabia reversed course and flooded the market with cheap oil, causing prices to fall to under ten dollars a barrel. The result was that high price production zones in areas such as the North Sea became too expensive. Countries in OPEC that had previously failed to comply to quotas began to limit production in order to shore up prices.[19] Responding to war and low prices[edit]Main articles: 1990 oil price shock and 2000s energy crisis Leading up to the 1990-91 Gulf War, The President of Iraq Saddam Hussein recommended that OPEC should push world oil prices up, helping all OPEC members financially. But the division of OPEC countries occasioned by the Iraq-Iran War and the Iraqi invasion of Kuwait marked a low point in the cohesion of OPEC. Once supply disruption fears that accompanied these conflicts dissipated, oil prices began to slide dramatically. After oil prices slumped at around $15 a barrel in the late 1990s, joint diplomacy achieved a slowing down of oil production beginning in 1998. In 2000, Chavez hosted the first summit of OPEC in 25 years. The next year, however, the September 11, 2001 attacks against the United States,and the following invasion of Afghanistan, and 2003 invasion of Iraq and subsequent occupation prompted a sharp rise in oil prices to levels far higher than those targeted by OPEC themselves during the previous period. Indonesia withdrew from OPEC in 2009 to protect its oil supply. On 19 November 2007, global oil prices reacted violently as OPEC members spoke openly about potentially converting their cash reserves to the euro and away from the US dollar.[20] Production disputes[edit]The economic needs of the OPEC member states often affects the internal politics behind OPEC production quotas. Various members have pushed for reductions in production quotas to increase the price of oil and thus their own revenues.[21] These demands conflict with Saudi Arabias stated long-term strategy of being a partner with the worlds economic powers to ensure a steady flow of oil that would support economic expansion.[22] Part of the basis for this policy is the Saudi concern that expensive oil or oil of uncertain supply will drive developed nations to conserve and develop alternative fuels. To this point, former Saudi Oil Minister Sheikh Yamani famously said in 1973: The stone age didnt end because we ran out of stones.[23] One such production dispute occurred on 10 September 2008, when the Saudis reportedly walked out of OPEC negotiating session where the organization voted to reduce production. Although Saudi Arabian OPEC delegates officially endorsed the new quotas, they stated anonymously that they would not observe them. The New York Times quoted one such anonymous OPEC delegate as saying â€Å"Saudi Arabia will meet the market’s demand. We will see what the market requires and we will not leave a customer without oil. The policy has not changed. OPEC aid[edit]OPEC aid dates from well before the 1973/74 oil price explosion. Kuwait has operated a programme since 1961 (through the Kuwait Fund for Arab Economic Development). The OPEC fund became a fully fledged permanent international development agency in May 1980.

Holy The Firm by Annie Dillard Essay Example for Free

Holy The Firm by Annie Dillard Essay ​â€Å"Death of a Moth† is a short essay from the author, Annie Dillard, called Holy the Firm, and also one of her most personal essay that she’s ever written. It is about the burning moths, her belief in God, and acceptance of her faith to being a writer. She uses the death of the moths to tell us nature’s cycle of life. Everything is the same, human and animal, life and death. In the end, they will all end up like the moth being burned up by candle light. ​In the essay of Annie Dillard, Death of a Moth, she writes about a woman who lives alone on Northern Puget South in Washington State, with one enormous window, one cat, and one spider(2). She has a flashback about two summers ago when she tried to run away from society to read and write her book, To Mountain. She tries to find herself to becoming a writer. She wants to leave the world behind and enjoy herself alongside animal and nature. She sees a moth landing on her candle light and gets burnt. She, then, describes the moth in such realistic ways which remind the readers about nature’s cycle of life. As she looks at the moth, she falls asleep. ​In the essay, the author has mentioned in her class about â€Å"you must go at your life with a broadax† (10). In theory, a broadax is a weapon or a tool used to chop down trees. At this point, Annie wants to explain to her class if you want to be something or get something in your life, you have to be willing to overcome anything to be able to get what you want. Your life is like a battle. When in battle, you need to equip yourself with a broadax, and be prepared to fight and struggle. In addition, it also shows you are willing to hack down at anything standing in your way. In practice, students also face the same situation. They try their best to overcome obstacles teachers give them to be able to pass their classes. ​In â€Å"Death of a Moth† essay, Annie Dillard tells us about nature’s cycle of life. Everything will have the same ending, being born, living for a certain period of time, and then dying. The same as the moths or ephemera stabs by fire. George has mentioned about significance of butterfly to her moths essay by posting his post on bookcritics.org(5). I would say that butterfly is the most beautiful insect I have even known. To be obtaining this beauty, it also has suffered so many miseries. It has to endured ninety months to a year in a cocoon, then it breaks pupa without any help, and transforms to a beautiful butterfly. The pity is it only lives for 3 days or a month, depending on what type it is. From the butterfly example, effort is what we can’t lack in our life. If we live without any obstacles, we will never learn or become stronger like a butterfly’s ability to break cocoon and fly up high. ​It can be seen that Annie Dillard is focusing more about the nature’s cycle life and also, expressing her effort to being a writer. She uses the moths as an example to describe her idea about nature to the readers, which is accept faith and move on with your life. In my own opinion, I would recommend or love to hear the significance of butterfly in her moth essay than reading about the moth being burned by the candle light. It was not a waste of time to write an essay about a moth, but replacing the moth to a more gracious creature like a butterfl y would better capture the audience.