The Business Management Term Corporate Social...

In this essay I will discuss the business management term ‘corporate social responsibility’. I will show a strong awareness of this topic, this by showing the dangers and benefits of corporate social responsibility. I will convey the importance of CSR. By showing the effect CSR has on internal and external stakeholders of an organisation. Corporate social responsibility is a management concept, whereby an organisation activities are geared towards the compliance of strict ethical codes. These codes are then extrapolated to the organisation business activities in attempt to reduce the number of negative externatlies which may be conceived through malpractice. â€Å"A business that makes nothing but money is a poor business.†(Henry-ford-News Journal-[Mansfield-Ohio]-3 August-1965). Therefore, corporate responsibility will play a substantial part in organisational behaviour, due to an increase in public awareness of social responsibility. Organisations will now feel obligated to adopt a utilitarian thought process when carrying out day to day activities. [Richard L. Daft, p149]â€Å"Corporate Social Responsibility is a hard-edged business decision. Not because it is a nice thing to do or because people are forcing us to do it because it is good for our business† –Niall Fitzerald-Former-CEO-Unilever. Corporate social responsibility (CSR) can be defined as the economic, legal, ethical, and discretionary expectations that society has of organizations at a given point in time (ArchieShow MoreRelatedSocial obligation of business1734 Words   |  7 Pagesthat obligation of business is to maximize long term profit for shareholders in a sustainable way, while others call them to involve more to social responses. Each judgment has its own reasons which this research sought to analyze. Based on that, certain social obligations of business will be addressed with evidences, showing their necessary of being more responsible to social outcomes. Key words: corporate social obligation, shareholders, corporate profit, social responsibility Introduction Read MoreIKEA Global Sourcing Challenge: Indian Rugs and Child Labor1176 Words   |  5 Pagesphilosophy and assessment of suppliers mainly include four aspects: continuous price improvement; strict supplier performance and service levels; good quality and healthy products; and environmental and social responsibility (IKEA Sustainability Report 2011). In the aspect of social responsibility, IKEA does not accept child labour, but also actively prevents the use of child labour when its supplier Indian Rugs is revealed to use child labour (Bartlett et al., 2006). All IKEA suppliers and subcontractorsRead MoreCorporate Social Responsibility ( Csr )1167 Words   |  5 PagesCorporate Social Responsibility Introduction Corporate social responsibility (CSR) is a concept which is also known as corporate citizenship, corporate conscience or in a simple way a responsible business. It is an integrated concept of self-regulatory business model for any organisation. Corporate Social Responsibility has been in practice for more than fifty years now, which has been adopted not only by domestic companies but also by transnational company with voluntary CSR initiativesRead MoreCorporate Social Responsibility and Single Strongest Argument1106 Words   |  5 Pagesand explain the major factors in the social environment that create an atmosphere in which business criticism takes place and prospers. dasdasdassadasdasdadadasdadsdadasdasdassssssssssssssssssssss- ssssssssssssssssssssssssssssssssssssssssssssssssssssssssssss- ssssssssssssssssssssssscourse? Or is it still a vital reality? 4. Give an example of each of the four levels of power discussed in this chapter. Also, give an example of each of the spheres of business power. 5. Explain in your own wordsRead MoreCsr in the Hospitality Industry1293 Words   |  6 PagesSeptember 29, 2009 Corporate Social Responsibility in the Hospitality Industry Introduction Corporate Social Responsibility (CSR) has progressively become known as a germane issue in the corporate world for the past decade. Making the world a better place, socially and environmentally, is a global accepted phenomenon. According to Porter Kramer, 2006, â€Å"corporate social responsibility has emerged as an inescapable priority for business leaders in every country.† TheRead MoreArguments for and Against Corporate Social Responsibility1004 Words   |  5 PagesWhat is corporate social responsibility? Give arguments for and against social responsibility? Ans. Social Responsibility Social responsibility can be defined as: â€Å"A business’s obligation to follow goals that are good for both organization and society in the long-term, and are not required by law.† Corporate Social Responsibility The term corporate social responsibility came in to common use in the early 1970s. It means the duty of an organization towards society in order to prove itselfRead MoreCorporate Social Responsibility ( Csr )1167 Words   |  5 PagesCorporate Social Responsibility Introduction Corporate social responsibility (CSR) is a concept which is also known as corporate citizenship, corporate conscience or in a simple way a responsible business. It is an integrated concept of self-regulatory business model for any organisation. Corporate Social Responsibility has been in practice for more than fifty years now, which has been adopted not only by domestic companies but also by transnational company with voluntary CSR initiativesRead MoreManagement Planning: Worldcom Essay1253 Words   |  6 PagesOrganizations are responsible for the legal, ethical, and social issues that affect each stakeholder within the company. These factors continually impact the planning process performed at each level of management. An organization that neglects to establish and monitor plans can become disorganized and ultimately lose control of practices performed throughout the corporation. A prime example of poor planning due to disregard of legal, ethical, and social issues were the execut ives employed at WorldCom. Read MoreSocial Responsibility And Business Ethics Essay1470 Words   |  6 Pagesrole of social responsibility in business organizations and society. This paper will compare similarities and differences between Cohen’s perspective on social responsibility to the social responsibility and business ethics theories of Drucker and Milton Friedman. Furthermore, this paper will provide a frame of reference on corporate social responsibility and business ethics presented in other research. Social Responsibility Defined Cohen, 2009 wrote in his article that Drucker defined social responsibilityRead MoreChallenges in Implementing Csr1580 Words   |  7 PagesChallenges in implementing CSR Corporate Social Responsibility can be separate into internal dimension and external dimension. Internal dimension and external dimension Internal dimension focuses on organizational practices with respect to internal stakeholders that should be aligned to corporate social responsibility standards. It includes human resource management, safety and health, environmental impact and corporate change. External dimension focus on an organization practices towards external

Romeo and Juliet Act 5 Scene 3 - 1973 Words

Romeo and Juliet act in 5 scene 3 Romeo and Juliet was written by William Shakespeare around 1594. The play Romeo and Juliet is about two start crossed lovers who were born into a world with an ‘ancient grudge’. This automatically leads to Romeo and Juliet’s death. This sorrowful play was performed in Globe Theatre as there was large number of people who entirely wanted to watch this interesting play immediately. According to the play it contains a strong violent, and conflict, however Shakespeare uses conflict in different ways throughout the play, he uses to reflect on how woman were treated back in the Elizabethan period, how the marriage partner was chosen by father and how many were expected to obey the man. Additionally, this play†¦show more content†¦The innocent Paris hears a whistle. â€Å"What cursed foot wanders this way tonight† the servant warning that someone is coming towards them. Romeo suddenly enters the church with Balthasar. â€Å"Hold, take this letter, ea rly in the morning see thou deliver it to my lord and father†. This is the first thing Romeo said when they arrived the dark churchyard; however the audience knows it is a suicide letter to his father and the reason why he killed himself. Romeo suddenly makes an excuse to Balthasar that he has come to get ring he had given to Juliet and then he orders Balthasar to leave. In act 5 scene 3 Romeo uses soliloquies throughout the play scene which are full of emotion. Romeo goes to Juliet in the tomb and grieves for her once more. Romeo directly looked at Juliet as he was almost logically struggling and cannot except that Juliet is dead, as she is still beautiful. Finally, in the throes of sorrow, he drinks his deadly potion after stealing one last kiss. At this part the audience jumped out their seats and knows the fact Juliet is still live and the final kiss suggests that there was a strong love between Romeo and Juliet. Shakespeare enforces a belief of the times that too much love makes a man lose his manliness.As he dies; the Friar Laurence arrives in the churchyard and meets Balthasar. â€Å"It doth so, holy sir, and there’s my master one that you know†. Balthasar tells the Friar that Romeo is in the tomb, and the Friar hurries to right theShow MoreRelatedJuliet in act 3 scene 5 of Romeo and Juliet by William Shakespeare849 Words   |  4 PagesJuliet in act 3 scene 5 of Romeo and Juliet by William Shakespeare One of the most famous plays written by Shakespeare is Romeo and Juliet which was written in the 16th century. The play evolves around these two characters. It is about love, hate and honour of two families-the Montagues and Capulets. The feud between these two families has been going on for so long that they have currently forgot what they are fighting over. The two characters Romeo and JulietRead MoreAnalysis of Act 3 Scene 5 in Romeo and Juliet Essay757 Words   |  4 PagesAnalysis of Act 3 Scene 5 in Romeo and Juliet In this scene we see Juliet loose the closeness of all the people she loves: first Romeo who has departed after spending the wedding night with her; secondly by her father who viciously turns on her when she refuses to marry Paris; thirdly by her mother who declares ‘I have done with thee’ when Juliet begs her for help in delaying the proposed marriage to Paris; and lastly by the Nurse whom she tearfully turns to as a lastRead MoreSympathy for Juliet in Act 3, Scene 5 of William Shakespeares Romeo and Juliet657 Words   |  3 PagesSympathy for Juliet in Act 3, Scene 5 of William Shakespeares Romeo and Juliet William Shakespeare uses many techniques of sympathy for Juliet. Romeo and Juliet are from two different families, Romeo is a Montague and Juliet is a Capulet, The Capulet family and Montague family are worst enemies but Romeo and Juliet mistakenly fall in love at first sight at a fancy dress party held by the Capulet family which Romeo and a few friends secretly walked into whilst in costumeRead MoreAct 3 Scene 5 of William Shakespeares Romeo and Juliet Essays766 Words   |  4 PagesAct 3 Scene 5 of William Shakespeares Romeo and Juliet Before act 3 scene 5 happens many important events take place, these include Romeo and Juliet secretly getting married, then Romeo killing Tybolt as revenge for Mercutios death. As a result of this Romeo is going to be banished while this is happening Juliets father is arranging for her to marry Paris. At the beginning of the scene Romeo and Juliet wake up and Juliet tries to tell Romeo it is not day wilt thouRead MoreDirecting Act 3, Scene 5 of William Shakespeares Romeo and Juliet1102 Words   |  5 PagesDirecting Act 3, Scene 5 of William Shakespeares Romeo and Juliet In Shakespeares Romeo and Juliet Act 3 Scene 5 is a crucial part of the play. It is the scene in which we see Juliet abandoned by all of her allies: Romeo, her parents and, to a certain extent, her nurse. It is also a scene where many of the themes of the whole play, such as fate, marriage, individual freedom and day and night, are developed. The scene is hectic and contains numerous exits and entrancesRead MoreExamine The Dramatic Impact Of Act 3 Scene 5 of â€Å"Romeo and Juliet1470 Words   |  6 PagesAct 3 scene 5 is the most dramatic and significant part of the play, it is a crucial turning point of the play because the lovers are talking bout circumstances which could change (or take) their lives. Shakespeare uses language to describe the tragic actions and misunderstandings while foreshadowing their eventual death. The language throughout the play uses many powerful poetic phrases which stimulate strong images in our minds, the metaphors used contrast sharply from loving poetical languageRead MoreWilliam Shakespeares Romeo and Juliet: Act 3 Scene 5 Essay2376 Words   |  10 PagesWilliam Shakespeares Romeo and Juliet: Act 3 Scene 5 This scene is approximately at the mid point of the play. It begins with Romeo and Juliet, spending there first night together, as a married couple. Romeo then leaves hastily as Lady Capulet enters Juliets bedroom. She mistakenly thinks that Juliet is mourning the death of Tybalt; however the audience is aware that her tears are for Romeo and Juliet speaks ambiguously throughout when in conversation with her motherRead MoreShakespeares Act 3 Scene 5 of Romeo and Juliet as Dramatically Effective1775 Words   |  8 PagesShakespeares Act 3 Scene 5 of Romeo and Juliet as Dramatically Effective Romeo and Juliet is a story of two star-crossed lovers who are separated from two feuding families: the Capulets and Montagues. This powerful story includes deception, violence, secrets and of course love in which Shakespeare adapts so it has an enormous dramatic impact on the audience. Act 3 scene 5 of Romeo and Juliet is one of the most dramatic of scenes in the play. This scene is quite importantRead MoreEssay about Act 3 Scene 5 of Romeo and Juliet1332 Words   |  6 PagesAct III Scene V - This is a very important scene. Select and comment on key moments for the audience in this scene. What are some of the differences in attitudes between then and now? Act III Scene V This is a very important scene. Select and comment on key moments for the audience in this scene. What are some of the differences in attitudes between then and now? Romeo and Juliet are waking up together after there first night of being man and wife. The beginning of this scene is veryRead MoreThe Role of the Nurse in Act 3 Scene 5 of William Shakespeares Romeo and Juliet692 Words   |  3 PagesThe Role of the Nurse in Act 3 Scene 5 of William Shakespeares Romeo and Juliet Romeo and Juliet is a tragic play about love and its effects. The main protagonists are Romeo and Juliet, a pair of teenagers, that fall in love, who seek help from various adults such as their parents, Friar Lawrence and the Nurse, who all in some way let them down. In this essay I am concentrating on the role of the Nurse and her relationship with Juliet. The Nurse is Juliets confidant

The Value of Diversity and Multiculturalism in Business Free Essays

Shequita Rayford English 101 February 10, 2013 The Poverty Class The Poverty Class is a big class in the United States; As the free encyclopedia stated, Poverty is a state of privation or lack of the usual or socially acceptable amount of money or material possessions. The number of families in the poverty class has increase or decrease over the years. The races of population percentage of people in poverty is different from one and another. We will write a custom essay sample on The Value of Diversity and Multiculturalism in Business or any similar topic only for you Order Now There are a lot of reasons or saturations why a family is in the class of poverty. Some families come from other classes, like the wealthy class or the middle, then down grade to the poverty class for various reasons. Poverty affect different stages in people lives, there are also different factors of poverty. When you are in the poverty class, you can be look down upon from the other classes for different reasons. There are different ideas to help fix the poverty we have in the United States. In the next exceeding paragraphs, I will explaining the reasons for each statements because I for the poverty class in my own words and views. The number of the poverty class has increase or decrease, but when I research for the number of population in poverty throughout the years. I see that the numbers has mostly increase throughout the years. In 2000 there was 39. 8 million people in poverty, but that number increased throughout the years. Until now in 2012 the percentage of families in impoverished is 16%, and almost 20% are children. The poverty guidelines are determined by the Census Bureau. The Census Bureau contains the amount of money a family will make in a year. By counting each person and the cost of living for that person, additionally adding each person to calculate a number. Then the census determine if the family would be counted in the poverty class or not. The races of people in a population in poverty is different from one and other. Race and gender plays an enormous part in poverty. Minorities pay a big role by 27 percent, so does Latinos and American Indians, versus 10 present of whites. Below is the percentages of races in the poverty class; Poverty and race/ethnicity 9. 9% of all non-Hispanic white persons 2. 1% of all Asian persons 26. 6% of all Hispanic persons (of any race) 27. 4% of all black persons. There are a lot of reasons or situations why a family is in the class of poverty. One reason can be that a person was born in a family that is poor, I was born in a family that was in the middle class. My family had a house, and my dad own his own construction company. We live in a nice neighborhood in the city of Chicago. But a t the same time I remember seeing poverty all around me. You can tell what class a person was by the clothes they worn. You can tell where the area the class live by the surroundings. For example the wealthy live down town in condos or lofts running 3,000 through 7,000 or more a month. Because the cost of living in a city is expense. Another reason can be because the economy with low job rates, or the minimum rates of employment was low. Another reason can be because a lot of families have a single parent trying to raise a family from minimum wage or welfare. After my father passed away, my mom was a single parent, she was left well off but then blew the thousands she was left with. So we went from middle class to poor and had to struggle at times. Then I and my mom got on our feet; now I am a mother with two kids. I only want the best for both of my kids, to not be in the population of the poverty class. Some families come from other classes, like the wealthy class or the middle, then down grade to the poverty class for various reasons. Like I said from the paragraph above, my dad past away and me and my mom had to learn how to survive by ourselves. There are a lot of different reasons why one class can go to poverty. One reason can be because of natural causalities, there has been hurricanes, earth quakes, tornadoes, thunder storms, winter storms and other storms. During the last couple year’s people has come upon these storms and lost everything. For an example the storm Katrina kill a lot of people and left a lot of people homeless in the state of poverty. Poverty affect different stages in a person life. If the person works a minimum wage, it’s like living from one pay check to another. I had live from one pay check to another before, paying all my bills and don’t have enough to buy anything for myself. Or don’t have enough to pay all the bills at once. It can affect a person health if their unable to eat a meal during the day. It all can be challenging trying to live when you don’t have enough income to live on. But either way I found a way to challenge difficult situations, thanks to programs to help people in poverty to pay bills, buy food, buy clothing and personal items. There are different factors of poverty. Low- wage jobs is one factor, in our America today, there are a lot of low in come jobs. Even if you go to college and get a degree, there is no guarantee that you will get that dream job you want. I know someone with four degrees and still can’t find that dream job that he wanted. Another factor is that there is a lot of single parents in the house holds of families today. A single parent making a low- wage do not equal to success, taking care of your family can be expensed. I know that for a fact, if it wasn’t for the help of my family, I don’t know where I would be with my kids. But life has got much easier since I gotten help from their father now. The Census Bureau stated that 104 million people make twice below the poverty line, less than $38,000 for a family of three. Economic Policy says half the jobs on the nation pays less then %34,000 a year, a quarter pay less than $23,000 annually. When you are in poverty you can be look down upon. No matter if you are a child or an adult, sometimes you have peers to look at you and judge you. I have got those views from a lot of people that believe people on welfare is lazy or just wasting their tax money. Well those people don’t know that person or family situation. Not having welfare, that family would not be able to feed their family without food stamps. People needs to realize that there is a lot of poverty in the world and a lot of people are suffering. Even if that person has a job, the person has to work a 10 thru a 12 hour shift and only making eight dollars an hour for an example. People don’t want to look at the fact that if the government didn’t have these programs that the poverty percentage would be double. There are different ways to fix poverty in America. By continuing to provide welfare for individuals who are struggling paying their bills, buying food for their house hold and buying personal needs for themselves and their kids. Some of the welfare programs that help provide those needs are food stamps and cash assistance. Social Security helps the elderly who can’t work and people with disabilities. Earn income tax credit helps to provide families with extra money at the end of the year, who made under a certain amount money for that year. Our economy needs more decent paying jobs. We all need to help invest in a 21st century education, provide skill development strategy, the rich should pay their fair of taxes to the country, raise minimum wage and provide more health care. I provided my views on poverty and stated true facts. I want my audience to become more educated on the matter and realize how serious the matter can be. Knowing that you can be in one of the other class one day and be in the poverty class the next day. We all should notice how important this situation is although you might say that this is not your situation, nor your problem. But true fully it affects all Americans in some way or form. Works Cited Websites: http://en. wikipedia. org/wiki/Poverty_in_the_United_States http://www. nytimes. com/2012/07/29/opinion/sunday/why-cant-we-end-poverty-in-america. html? pagewanted=all_r=0 How to cite The Value of Diversity and Multiculturalism in Business, Essay examples

A Description of Hurricanes free essay sample

Alexander Mazariego Informative Outline II Topic: Hurricanes Audience:Classmates and Instructor of Summer semester Communications class at Austin Peay University. General Purpose: To inform Specific Purpose:To inform my audience of what a hurricane is, background information on some of the worst hurricanes in history and how to prepare for a one. Thesis: Hurricanes are one of the worst natural disasters but with a little bit of knowledge and some preparation you can greatly improve your chances of coming out of a hurricane unscathed. I. Introduction A. Attention Getter: Early Monday morning six years ago one of the worst natural disasters to ever occur in the United States took place. On that fateful morning a city that is known for its good times and crazy outlandish behavior was forever being changed by Hurricane Katrina. B. Reason to Listen: The more you know about hurricanes, the better your chances of surviving and while minimizing the danger you put yourself in. C. Thesis Statement: The more knowledge you have and with a good plan you can help minimize the dangers of a hurricane.D. Credibility Statement: 1. Living in Florida most of my life, I have experienced many hurricanes. 2. I have done research and put plans into action during a hurricane. E. Preview of Main Point: 1. First, I will discuss what a hurricane is and the different stages of one. 2. Second, I talk about some of the worst hurricanes ever to be recorded. 3. Lastly, I will give you some advice on how to prepare and make a plan that could help minimize the dangers you will face when going through a hurricane.II. Hurricanes are one of the worst natural disasters but with a little bit of knowledge and some preparation you can greatly improve your chances of coming out of a hurricane unscathed. A. Hurricanes are tropical storms that have sustained wind speed of 75 mph or greater. They are formed over warm ocean waters, usually beginning in the Caribbean and slowly drifting westward. They are fueled by warm waters, the warm, moist air moves to the center of the storm and begins to spiral upward.As the updraft sucks up more and more water vapor, it begins to strengthen the storm and will continue to strengthen it until reaching cooler water or makes landfall. 1. There are three different stages to a hurricane. a. A tropical depression is a disturbance with a clearly defined low pressure area. With a max wind speed of 38 mph. b. Tropical storms are defined by its distinct low pressure area that is well defined by a rotating circulation with winds of 39-73 mph.The storm becomes a hurricane when it reaches a constant wind speed of 75 mph or greater. At this point hurricanes are broken down to 5 different categories. 1- Minimal, 2- moderate, 3- Extensive, 4- Extreme, 5- Catastrophic. Transition: I have just informed you on how a hurricane is created and the different stages and category of one, now let’s talk about some of the worst hurricanes ever to be recorded. B. Hurricanes are one of the world’s worst natural disasters. Here is an example of 3 of the worst hurricanes in history. . Hurricane Pauline in 1997 was one of the most destructive Pacific hurricanes to hit land in Mexico. Pauline dropped a relentless amount of rain on Mexico, some parts seeing up to 16†, causing deadly landslides roughly 400 people and leaving over 300,000 people homeless. It caused over 7. 5 billion dollars in destruction. 2. Hurricane Andrew in 1992 was the only named storm of that season. Striking Miami, Florida at an average wind speed of 130 mph. Hurricane Andrew was a category 4 hurricane when it made landfall.It caused damages in the neighborhood of 30 billion dollars. 3. As I am sure we all remember Hurricane Katrina was the worst natural disaster to ever happen to the united states in history. The storm was a category 5 hurricane and shortly before madding landfall it weakened to become a category 3 hurricane. Hurricane Katrina claimed the lives of 1,836 people in the actual hurricane and numerous more afterwards. It caused over 81 billion dollars in damages making it the costliest natural disaster to ever occur in the US.Transition: Now that you know how a hurricane is created and how deadly they can be, let`s talk about ways you prepare for them. C. With the right amount of knowledge and a plan you can better your chances of surviving through a hurricane. 1. It is always a good idea to have a plan. You should plan an evacuation route, if you don’t want to leave designate your basement or a room in the house that does not have windows or any kind of glass, where you will stage up and ride out the hurricane in. 2.Stock up on can goods and other non-perishable foods and be sure to have plenty of water bottled water, be sure to pack blankets, clothes, batteries, flashlights, battery operated handheld radios and other essential items, you never know how long you may be without electricity and you never know the damage it may cause. 3. The news channels will give issue warning when a hurricane is approaching the first one will be a hurricane watch which is issued 36 hours in advance the second is a hurricane warning which is issued with 24 hours or less remaining.Monitor radios and news channels so you are up to date on all information. III. Conclusion A. Review of Main Points: 1. Today I first spoke about how a hurricane is created. 2. Secondly, I gave you a brief history on 3 of the worst hurricanes ever to be recorded. 3. Finally, I shared tips and information on things you can do to help prepare yourself for surviving a hurricane. B. Restate Thesis: Hurricanes are one of the worst natural disasters but with a little bit of knowledge and some preparation you can greatly improve your chances of coming out of a hurricane unscathed.

Being A Green Entrepreneur

Being A Green Entrepreneur Free Online Research Papers Before you start reading this project report, you will have to ask yourself a very important question: Do I care about the environment and am I willing to pay for ‘saving’ the environment? Well that is the fundamental idea of my small-scale project. Are people willing to pay more for a ‘green’ product? The green principle is one of the most discussed subjects in the world nowadays. Being green is more popular than ever. Political parties everywhere put green measurements on their electionsprogram. I am willing to find out if een green corporate image has an effect on customers. Are customers willing to pay more for green products? Do they chose for more expensive but green products when they can chose between a cheaper non-green product or a more expensive but green product? What are the advantages for an entrepeneur to produce his goods in a green way and what are the disadvantages? Does being green always means being more expensive? To be able answering these questions In consequence I set up a smal-scale research project. I have started my research by reading the AS Level and A Level Business Studies book by Peter Stimpson and more particular Chapter 4 of the book about business objectives and strategies. In my report I wil talk about these strategies and objectives being green in a lot of firms and their influence on the market. Further I looked for the necessary information on the EBSCO host for academic articles. Like I thought before I begun my research there where quite a lot of hits on this subject. Green is ‘in’. Method The method I used for this small-scale project is rather simple and limited. In the first place it is a small-scale research project so I didn’t do an actual interrogation by CEO’s orf CFO’s or amongst the customers theirselves. What I have done is what you could call a pre-research. It goes for the actual research and is actually just collecting and reading relevant literature about the particular case. I did the literature review, formulating research questions and point out some hypothesises. The results you can find in this work are therefore my hypothesises. To find the fundamental information I have searched in the Academic Search Elite database on EBSCO. Trought this database I found enough artciles for this project. Results To give an answer on my first research question – Are people willing to pay more for green products – I found some interesting articles on EBSCO prooving my hypothesis. The environment offers retailers the change to appeal to shoppers’ values and earn themselves a slightly thicker margin. TNS, a research firm, reported that a quarter of UK shoppers say they are prepared to pay more for goods that come from companies that pay employees a fair wage and protect the environment. (Harding 2007:16) (Soruce: Harding, J (2007) ’The Green Rush’, News Statesman, 29 January 2007) Like I expected customers are willing to pay more for more ethical correct produced goods. If you look at some tv or radiospots these days their are lots of them with a green colour, like for example the case of Michelin, they claim their tyres to live 20% longer than those of their most important competitors and have less rollresistance. Due to that cars equiped with Michelin-tyres consume less fuel. This is promoted in an amusing radio commercial with the emphasis on the green features of the tyre. The use of fuel and a longer lifetime for their tyres results in a lower CO2 emmision and so on. (Source: www.michelin.be) Also accdording to Lee Scott, Wal-Mart’s CEO, customers are willing to pay more for green goods than they are for other ones. â€Å" I think their are stores, Whole Foods for example, where the greener the product is, the more people are willing to pay for it.† (Scott 2007) (Source: Newsmaker QA (2007) ‘Wal-Mart: On the side of the angels’ , Business Week online, 30 March 2007) On my second research question – What are the advantages and disadvantages for an entrepreneur to produce his goods in a green way? – I found several interesting answers, but their is one answer that covers them all. That one is making more profits. â€Å"Adopting more environmentally-friendly approaches is not always an oveall cost. In fact, in many cases it can lead to better business outcomes† (Schaper c. 2006) Obviously there are many advantages linked with green business for enterprises. In first instance, many firms are able to reduce their material costs by lowering their pollution outputs and cutting back on the quantities of raw materials they use. Secondly, they are more likely to survive over a longer period. A third advantage is a greater consumer loyalty. Thanks to media green has become an amazingly popular phenomenon, which leads to a great market demand for eco-friendly products. Studies have shown that up to 20% of consumers may be willing to pay more for green goods or services like I already said before. At last, green business can motivate their employees. Such green firms are often seen as places that are more desirable to work in, wich increases their ability to recruit and retain the most skilled st aff. (Source: Dr. Schaper, M. (c. 2006) ‘Being a green entrepreneur: does it make business sense?’, Businessdate, c. 2006) Now I have discussed the advantages of green entrepreneurship I am wondering what the disadvantages are. Well disadvantges of eco-friendly production are difficult to find. Actually, I only found one relevant disadvantage that covers them all: higher working costs. However, this is not directly a disadvantage. Like I said before being green does not always mean making more costs, on the contrary. Green business usually leads to lower working costs. Only in the beginning, when a company starts working green, these costs could be higher than revenues. My third and last research question – Does being green always means being more expensive? – is almost entirely answered already. Environmental pressures are not necessarily about spending money to keep on the right side of the legislation and not making any extra profit. By anticipating changes in customer practices and environmental legislation investments now being considered by companies will stay profitable in the long term, and companies won’t run into the problem of continually fixing up existing processes to comply with progressively tightening legislation (Clift c. 1994) (Soruce: Ward, M. (1994) ‘Life cycle: the preferred environmentall strategy’, Chemcial week, 27 april 1994) This quote of Mike Ward says that it couls be that investing in environmental-friendly techniques and productionsystems may cost lots of money now and can influence the total business benefits but on the long run these investments will be very profitable and lead to a more stable and profitable company. Analysts are not as interested in pollution prevention and waste reduction as they are in yield improvement, sales growth cost management, and cash and earnings generation as a result of improved environmental management strategies. The $ 1.5 billion/year that DuPont spends on environmental management is only a fraction of the company’s $ 40 billion/year revenues. (Stevens R. 1996) (Source: Sissell, K. (1996) ‘Merging business and environment’, Chemical Week, vol. 158, Issue 38) Like Stevens says, companies do not act like this way without their own proper reasons.Obviously making more profit is the most important reason for turning the company in a green direction. Although many companies are investing a lot in green technology their budgets for environmental management still ammount only a fraction of the total business revenues says Stevens. During my research, I found some articles proving my last hypothesis. There must be a deeper reason than just take care of the environment for enterprises turning green suddingly. I can prove this with the next article: Their are two dirty secrets and one redeeming truth behind British business’s sudden eagerness to kick off it’s brogues and slip into a pair of Birkenstocks. The firts is that this modern ‘green rush’ is motivated by the same force that drove men to the Klondike. In the long term, it may be aubout saving the planet. Meanwhile, it’s about turning a profit. More precisely, it’s about marketing. (Harding 2007) (Soruce: Harding, J (2007) ’The Green Rush’, News Statesman, 29 January 2007) Also the article of Sissell where Stevens says analysts are more interested in making more profits than they are in pollution prevention proves this statement. We can easely find some examples of comapnies turning suddenly green. Their is for example the case of Birtish Petroleum changing it’s corporate logo from the familiar crest to that of a flower resembling a sunflower, trying to repositioning the business towards a more caring and environmentally concerned organisation. (Source: Stimpson, P (2005) AS Level and A Level Business Studies (5th printing), Cambridge University Press, Cambridge, Chapter 4) Another example out of a rather unexpected corner is the example of Dayton, Ohio. William Hill replaced the old setup with thin clients for 60% of the staff and PCs for the rest, stratgically positioned for optimum use. He opted for this method for technological reason on one hand, but for cost reasons on the other hand. He saw a corresponding drop in how much energy his organisation uses. Even so, the real impulse for green computing, also called sustainable computing, is the green cash that eco-friendly decisions can save.  "There’s always a company out there doing something to be eco-friendly, but for most companies, it has to make money sense† (Boliolo 2006) (Source: Pratt, M. (2006) ‘It’s not easy being green’, Computerworld, 20 March 2006) Historically, corparations thougt keeping an eye on the environment also meant taking an eye off shareholders. That has changed dramatically in the past few years. Now there are reminders everywhere that a growing number of companies see the interest of investors and those of the environment as closely aligned. (Source: Thomson, TS. (2006) ‘Green is Good for Business’, Business Week, 5 August 2006) Conclusions To end my small-project report let me point out the conclusions about my findings. I may conclude that 25% of the (British) people are willing to pay more for eco-friendly products than for other not eco-friendly products. That is quite a large group, but probably this group will still grow havely following the general trends. Further green entrepreneurship has many advantages such as a reduction of their material costs, a longer change to survive as firm, a greater consumer loyalty and it is easier to motivate your staff as a green entrepreneur. The disadvantages of green production can be summarised in one general idea: higher production costs on short-term, but on the long run green companies will be more competitive than non-green ones. Thirdly it is not alway more expensive being green than not being it. Being environmental-friendly almost always leads to making more profits due to higher profit margins – green sells and stands good – and lower production costs in the end. An astonighing finding is the underlying reason for companies to become green. It may be about saving the environment on theoutside, but underneath it is just about making more profits. Although all companies want to create a green corporate image and culture they still invest too less in green technology in comparisson to their total sales revenues. Businesses have to raise their budgets for green management if they want to stay competetive in the future. The sudden green revolution can be partially assigned to media. As long as green stays popular – and on this moment it seems that green will stay popular, maybe even more popular than it already is, for a very long period – business will find new manners to create some competitive advantages towards other competitors. Businesses will keep (ab)using the green hype as long as it will stay profitable for them. But in the end, thanks to those greater changes for making (more) profits, business will trun green and as a result nature will improve. The futere, in my eyes, looks bright for nature. Word count: 1,992 References Harding, J (2007) ’The Green Rush’, News Statesman, 29 January 2007. Michelin autobandenfabrikant 2007. Newsmaker QA (2007) ‘Wal-Mart: On the side of the angels’, Business Week online, 30 March 2007. Pratt, M (2006) ‘It’s not easy being green’, Computerworld, 20 March 2006. Schaper, M. (c. 2006) ‘Being a green entrepreneur: does it make business sense?’, Businessdate, c. 2006. Sissell, K. (1996) ‘Merging business and environment’, Chemical Week, vol. 158, Issue 38. Stimpson, P (2005) AS Level and A Level Business Studies (5th printing), Cambridge University Press, Cambridge, Chapter 4. Thomson, TS. (2006) ‘Green is Good for Business’, Business Week, 5 August 2006. Ward, M. (1994) ‘Life cycle: the preferred environmentall strategy’, Chemcial week, 27 april 1994. Research Papers on Being A Green EntrepreneurResearch Process Part OneThe Masque of the Red Death Room meaningsAnalysis of Ebay Expanding into AsiaThe Project Managment Office SystemInfluences of Socio-Economic Status of Married MalesIncorporating Risk and Uncertainty Factor in CapitalDefinition of Export QuotasGenetic EngineeringBionic Assembly System: A New Concept of SelfEffects of Television Violence on Children

Job Evaluation Approaches

Job Evaluation Approaches Free Online Research Papers Introduction The paper will argue that job evaluation systems are an attempt to objectify employment positions within an organization through the measurement of size. ‘The word ‘size’ is used to indicate the relative significance or importance of a job in an organization’ (Armstrong Murlis 1996:95). This paper discusses formal and informal job evaluation systems as determinants of the relative job value and the compensable factors. The primary reason for conducting job evaluation is to increase equity in employee remuneration in comparison to other employees across similar and variant contexts. Definitional Terms Job evaluation is defined by Kramar, McGraw and Schuler (1997:420) as, ‘a formal and systematic process for objectively comparing the relative size and worth of jobs within an organization.’ It has also been described as, ‘an administrative procedure used to measure job worth’ (De Cieri and Kramar 2003:597). It is also important to recognize that size is not an absolute term, one which can be easily quantified and objectified. Armstrong and Murlis argue that ‘ultimately, there is no single unit of measurement which will tell us precisely how much a job is worth’ (Armstrong and Murlis 1996:98). Size can relate to the resources being controlled, for example finances, people, plant and equipment. It can also be related to outputs, such as sales, project completion or units processed. Size can also correspond to contribution made through the job to the achievement of organizational objectives. The concept of size will be further explored when examin ing the various analytical methods utilized in conducting a job evaluation. It is also important to recognize that the evaluative tool of size is set in a much broader theoretical discussion of pay equity and business competitiveness – encapsulating direct labour costs, staffing and operational productivity, staff recruitment and retention. The purpose of job evaluation recognizes the need for a rational means of identifying relative internal values in jobs within and outside an organization. Determining pay structures solely through market comparisons, will not result in a sufficiently reliable basis for an equitable pay structure, due to the volatility of the market (Armstrong and Murlis 1996:98). Two main types of job evaluation There are to main job evaluation methods Non Analytical, which utilises subjective ranking and paired comparison and Analytical, which focuses on a process of factoring. Armstrong and Murlis, define the non analytical methods (as) ‘whole jobs (being) examined and compared, without being analyzed into their constituent parts or elements. While analytical methods (is where) jobs are analyzed by reference to one of more criteria, factors or elements’ (1996:99) Non Analytical Methodologies Job Ranking, Paired Comparisons and Job Classifications are described in the literature as non analytical job evaluation methodologies. Job Ranking Kramar, McGraw Schuler argue that ‘job ranking is the most convenient and effective job evaluation method where there are a limited number of jobs to evaluate and the job analysts are familiar with the jobs in question’ (1997:423). Job ranking seeks to compare whole jobs and does not try to assess separately different aspects of the job. This method seeks to rank jobs in a hierarchal manner according to the perception of their relative size. It is Armstrong and Murlis’ (1996:100) opinion, that ‘job ranking is the easiest and quickest form of job evaluations.’ This approach is sometimes used for benchmarking more sophisticated analytical methods, to ensure they are appropriately ranking jobs. Several disadvantages of this approach have been highlighted by Armstrong Murlis (1996:101) including: There is no clear rational which objectifies the rank order. Without a clear rational equity issues may surface. Judgements can become multi-dimensional when a number of jobs have to be ranked. Inconsistencies between assessors can arise when selective aspects of a job are weighted differently. Ranking does not provide sufficient quantification of the differences between jobs, which tends to make grading an arbitrary process. Whilst ranking can assist in recognizing extremes in rank order, it may make it difficult to discriminate between middling jobs. Stone (1995:307) points out that ‘while ranking might measure relative worth, job ranking does not measure the magnitude of difference between jobs.’ Paired Comparison Paired comparison is a method used to refine the job ranking process. ‘The underlying principle of paired comparisons is that direct comparison between two items is likely to be more sensitive and discerning than attempting to compare a number of items to one another’ (Armstrong Murlis 1996:101). Each job is compared to another job and if the size or importance is greater a score of two is assigned. If it is thought to be the same size a score of one is given and of less size a zero is scored. The scores for each job are then tallied and jobs are ranked on the basis of the score. Appendix 1 shows an example of a paired comparison chart. While this process provides a more accurate ranking by confining comparisons to pairs of jobs, it stills lacks a rationale for justifying ranking orders. Job Classification Job classification is similar to ranking. Whole jobs are compared to a predetermined scale, in this case a grade definition. Kramar, McGraw Schuler contend that ‘a particular advantage of this method is that it can be applied to a large number and variety of jobs (1997:423) However, ‘a major disadvantage of the job classification method is the reliance on a whole-job comparison against a limited number, or overall summary of factors.’ The other key limitation is that the method cannot deal effectively with complex jobs. Analytical Methodolgies The primary analytical method of job evaluation is based upon a point factor ranking. Jobs are broken down into factors or key elements, and each factor is seen as contributing to job size in a different proportion. Numerical scales are devised and points are allocated to each factor of a job, depending upon the degree it is present. These separate scores for each job are then tallied to provide a total score for job size. Armstrong Murlis (1996:103) point out that the key features of the points factor method are: the factor plan; the factor rating scales; factor weighting. A factor plan may have anywhere between three to twelve factors and are broadly grouped around inputs (knowledge and skills), processes (mental effort, problem solving, complexity, originality, creativity, initiative, judgement, team work and dealing with people) and outputs (impact on end results). Having a multiplicity of factors does not necessarily mean a more effective job evaluation assessment. Armstrong and Murlis (1996:103) state ‘that this is an illusion. They argue that, the more factors there are, the greater the likelihood of overlap and duplication. They conclude that, it is seldom necessary to have more than six factors.’ Factor rating scales are based on the definition of levels present in each factor. Points are awarded for each level. An example of a factor rating scale can be seen in Appendix 2. The point progression for each level can either be arithmetical (e.g. 20, 40, 60, 80, 100) or geometric, which is used for example in the Hay Chart-Profile method. Kramar, McGraw Schuler (1996:424), describe ‘the ‘Hay System’ as probably the best know point factor method in Australia and that it is used extensively for evaluating administrative, professional, supervisory, managerial and executive positions.’ A critical decision in the point factor model is whether the individual factors are factor weighted, whereby one factor is assigned a higher value than another. The various points factoring schemes offer several significant advantages over a job ranking approach, including: By job evaluators having to refer to at least three and often six or more factors, the likelihood of overly simplified judgements are dramatically lessened. There is greater transparency and employees often perceive the process as fairer. Evaluators are able refer to several external measurements making it easier to determine relative size. The scoring of scales is easily adaptable to running in a computerized environment. While there is considerable value added through the using of a point factor analysis there are some disadvantages, including: Point factoring can be costly, time consuming and complex to administer. Armstrong and Murlis argue that ‘they give a somewhat spurious impression of scientific accuracy †¦ Averaging a group of subjective judgements made by a job evaluation panel does not increase their objectivity.’ An assumption that it is possible to reduce a complex job to a series of factors and that skills can be added to together within the framework of several scales of values. That adopted factor weighting can be applied to all jobs. The rating system can be very bureaucratic and rigid and create an unwanted organizational hierarchy. The conventional application of a point-factoring ignores that the workforce is in essence far more flexible and project base and contract drive. Other Factor Methodologies It an attempt to address the limitations with the Point Factor model several other analytical methodologies have been developed Graduate Factor Comparison, Factor Comparison and Single Factor, which can be based on skill, competency, decision bands or time span of discretion. Graduated Factor comparison compares job factors against a scale of factors which are graduated by descriptive levels. There is no numerical score assigned and the factors are not weighted. An example of a descriptive level would be low, medium and high. Armstrong and Murlis argue that ‘this analytical method is particularly useful in sorting out job relatives especially in equal value cases’ (1996:106). Factor comparison compares jobs with jobs against a number of factors instead of using a scale. It was developed in the US to overcome choice and weighting of factors associated with a points factor scheme. It has been pointed out by the Armstrong and Murlis although it has many advantages, in particular because it does not use an abstract scale and it is complex to develop and administer (1996:107). Although the method has had an important influence on the Hay Guide Chart Profile method. Single factor methods of job evaluation are based on one key factor for measurement of relative job size. According to Armstrong and Murlis ‘the assumption is made that the process demands made on job holder to deliver the expected outputs can be measures by the level of inputs required’ (1996:108). The shortcoming of the skill based approach is that inputs are rewarded with possibly inadequate attention on the delivered results. Competency based evaluation measures the size of the jobs in accordance with the necessary competency level required for a successful performance. Like the inadequate attention to results found in skill based approach the same could be said of the competency based approach. Application to Human Resource Management As has been argued through this paper that there are clearly deficiencies in both non-analytical and analytical job evaluation systems and these have been outlined. But nevertheless there is still a Human Resource Management need to determine fair and equitable pay structures, which adequately accounts for the growing, flexible, workplace patterns and the rapidly changing and complex job factors. Clearly, the job ranking and classification approaches are effective in smaller organizations where there is clear delineation between roles in the workplace. Armstrong and Murlis conclude ‘formal job evaluations do indeed work well in a stable, hierarchical organizations. But it has to be recognized that job evaluation methodologies which emphasise place in hierarchy, numbers of people supervised or resources directly controlled, without taking into account technical expertise or complex decision making have little to contribute’ (1996:110). As well organizations and the Human Resource Management team need to carefully consider which job evaluation approach to select before embarking on the evaluative process. Firstly, the organization needs to carefully consider if they are going to implement an existing commercial package, such as Hay Guide Chart Profile system – measures know-how, problem solving and accountability with each factor being scored on a two dimensional matrix Cullen Egan Dell system – measures cognition, education and decision making. Like the Hay system each of these factors is broken down into a further eight sub factors. Wyatt System – there are two systems FACTORCOMPâ„ ¢ and MULTICOMPâ„ ¢. Weighted Job Questionnaire (WJQ) – this measures five factors (skill and knowledge, contacts, working conditions, problem solving and scope of responsibility) through a multiple choice job analysis questionnaire. Or design their own system in accordance with one of the non-analytical or analytical methodologies. Building a job evaluation system from the ground up can increase the probability of measuring the nominated factors, but it can be expensive and time consuming. While a commercial system is proven and has a large sample size to draw on for analysis. In determining how to progress in job evaluation schemes Strong (1995:312) maps out a clear set of questions. These serve as a helpful starting place for a human resource management team and should be considered before undertaking any extensive job evaluation project ‘What are the organisation’s objectives in introducing a job evaluation scheme? Will the expected benefits outweigh the time and costs involved? What is the size of the organization? As a general rule the smaller the organization the easier it will be to implement a simple ranking system. Are the personnel and expertise available to develop an internal plan? How much can the organization afford to spend on introducing and maintaining a plan? What do similar organizations in the same industry do? Is the selected job evaluation plan in harmony with the organization’s culture?’ Appendix 3 details a useful chart for facilitating how to choose the most appropriate job evaluation method. Finally, Strong states, ‘no matter how good a job evaluation system is, it will fail if not understood and accepted by employees as being fair and equitable’(1995:312). Conclusion This paper has analysed the various strengths and weaknesses of job evaluation methodologies, whether they be non-analytical or analytical. It has been argued that job evaluation methods need to be viewed as guides for assisting organizations move toward greater pay equity and role clarity. It is important that they are not viewed as final and definitive in themselves but as helpful tools which support the overall job evaluation process in the workplace. Bibliography Armstrong, M, Murlis, H. (1996) Reward Management: A Handbook of Remuneration on Strategy Practice, Kogan Page Ltd, London. Clark, R. (1996) Human Resources Management: Framework and Practice, McGraw-Hill, Sydney. De Cieri, H. Kramar, R. (2003) Human Resource Management in Australia: Strategy, People, Performance, McGraw-Hill, Sydney. Ferris, G Buckley, M (1996) Human Resources Management: Perspectives, Context, Functions and Outcomes, Prentice-Hall, New Jersey. Kramar, R, McGraw, P. Schuler, R. (1997), Human Resource Management in Australia, Addison Wesley Longman Australia, Sydney. Mathis, R. Jackson, J. (1994) Human Resource Management, West Publishing Corporation, Michigan. Stone, R. (1991) Readings in Human Resource Management Volume 1, John Wiley and Sons, Brisbane. Stone, R. (1995) Human Resource Management, John Wiley Sons, Michigan Survey of Job Evaluation Practices, American Compensation Association, August 1989, 1-12. Appendix 1 Example of paired comparison Job A B C D E Total Score Rank Order A 0 2 0 2 4 2 B 2 2 2 2 8 1 C 0 0 2 0 2 5 D 2 0 0 1 3 3 E 0 0 2 1 3 3 Armstrong and Murlis (1996) Appendix 2 – Factor Rating example Factor 6 : contacts This factor considers the requirement in the job for contacts inside and outside the company. Contacts may involve giving and receiving information, influencing others, or negotiation. The nature and frequency of contacts should be considered, as well as their effect on the company. Level 1 : little or no consequences except with immediate colleagues and supervisors. (10 points) Level 2 : contacts are mainly internal and involve dealing with factual queries or exchange of information. (20 points) Level 3 : contacts may be internal or external and typically require tact or discretion to gain cooperation. (30 points) Level 4 : frequent internal/external contacts, of a sensitive nature requiring persuasive ability to resolve non-routine issues. (40 points) Level 5 : frequent internal/external contacts at senior level or on highly sensitive issues, requiring advanced negotiation/persuasive skills. (50 points) Level 6: constant involvement with internal/external contacts at the highest level or involving negotiation/persuasion on difficult and critical issues. (60 points) Armstrong and Murlis (1996) Appendix 3 Choice of Evaluation Method Scheme Characteristics Advantages Disadvantages Ranking Whole job comparisons made to place them in order of importance Easy to apply and understand No defined standards of judgement: differences between jobs are not measured Paired Comparisons Panel members individually compare each job in turn with all the others being evaluated. Points are awarded according to whether the jobs is more, less or equally demanding than each of the jobs with which it id being compared. These points are added to determine the rank order, usually with the help of a computer. The scores are analysed and discussed in order to achieve consensus among the members of the panel. Ranking is likely to be more valid on the principle that it is always easy to compare a job with one other job rather than with the whole range of disparate jobs As with ranking, the system neither explains why one job is more important than another nor assesses difference between them Job Classification Job grades are defined and jobs are slotted into the grades by comparing the whole job description with the grade definition Simple to operate and standards of judgement are provided in the shape of the grade definitions Difficult to fit complex jobs into a grade without using elaborate grade definitions Points factor rating and factor comparison Separate factors are scored to produce an overall points score for the job The analytical process of considering separately defined factors reduces subjectivity and helps assess differences in job size. Consistency in judgement is helped by having defined factor levels. In accord with equal value law Complex to install and maintain. Objectivity is more apparent that real: subjective judgement is still required to rate jobs against different factors and level definitions Armstrong and Murlis (1996) Research Papers on Job Evaluation ApproachesIncorporating Risk and Uncertainty Factor in CapitalResearch Process Part OneThe Relationship Between Delinquency and Drug UseThree Concepts of PsychodynamicBionic Assembly System: A New Concept of SelfThe Project Managment Office SystemStandardized TestingInfluences of Socio-Economic Status of Married MalesMarketing of Lifeboy Soap A Unilever ProductOpen Architechture a white paper

Devotion to God Essay Example | Topics and Well Written Essays - 1000 words

Devotion to God - Essay Example The song depicts that the God is not egocentric and with his presence, there is no ego in men. It admits that there is only one God, who is obtained by the grace of the guru. In the song, the Guru quotes, ‘what we deem a thing to be, in reality it is not like that’ (Fisher & Bailey 2012, p.81). This quote expresses that the God is ‘all-knowing’. He is omniscient and that men can think what they may and perceive things the way the can, but God has the only power that can perceive things correctly. Humans are prone to errors but God cannot make a mistake and his perception is always real. Ravi Das quotes that, ‘the lord is nearer to us than our hands and feet’ (Fisher & Bailey 2012, p.81). This confirms that the God he implies is omnipresent and his presence and manifestation is always with men whenever they are. He uses praise and submissiveness to show his devotion to God. He says the one Lord has assumed many forms but enjoys within all hearts. This figurative expression and style devotes to the Lord that he is omnipotent and omnipresent that he can assume be anything and still experience the hearts of every man. The relationship between the devotee and the God in the context of the saint song is close. He had even quoted that the presence of the lord was in a close proximity to a man than hands and feet. The devotee, Ravi Das is less resourceful as his caste class demands and being in the position to interact with the ‘Lord of wealth’ insinuates the close and non-discriminative relationship he had with the Lord.

Truth and Illusion Essay Example | Topics and Well Written Essays - 750 words

Truth and Illusion - Essay Example As the paper outlines Willy Loman, the protagonist of the play, a man in his sixties, has spent his life pursuing the dream of making a good life for himself through his hard work, but now in the sunset of his life realizes, that the dream was nothing but an illusion which he had been breathlessly pursuing. However, life dealt a cruel blow when he was just like that, dismissed him from the job and soon realizes that dreams have no place in the reality of daily life. From this study it is clear that Willy’s chosen profession that of the salesman, was itself associated with trickery and illusion. The job called on a person to be a glib tongued, smooth talker and Willy carried this role even into his own home, where he instilled the same poor values in his sons Biff and Happy. Biff, the elder son, lived a life of uselessness, drifting from one job to another, and even going to prison a couple of times. His life was a sham and even his parents were unaware of the truth. Happy, the younger son, on the other hand had made money his ultimate goal and even at his father’s grave promised to pursue the goal of making money. The play has a constantly shifting scenario—moving from past to present, illusion to reality, falsehood to truth, and finally a rude awakening from a dreamy state to one of harsh reality. This oscillation between the past and present fills the play with a lot of ambiguity. The reader’s emotions also swing ba ck and forth from a touch of sympathy for the Loman family to a complete indifference towards their pathetic condition, which is a result of their materialistic ambitions.

Calcium within the Human Body Essay Example | Topics and Well Written Essays - 1500 words

Calcium within the Human Body - Essay Example A fascinating interplay of pathways and signals are involved in calcium regulation. As research and new technologies evolve, new aspects are elucidated in these complex mechanisms. Various animal models have been used in order to understand the cellular responses and the hormonal regulation (Eckermann 2008). Moe (2008) states "normal homeostatic regulation maintains serum levels, intracellular levels, and optimal mineral content in bone", summarizing the intricacy of structures and organs that contribute to "normal" levels. The major organs involved in the regulation of its metabolism are the parathyroid glands, the kidneys, the skeleton, and the gut (Wysolmerski & Insogna 2007). Our body obtains the necessary amount of calcium from two major sources: diet (through intestinal absorption) and bones (through calcium mobilization). Foods that include a high amount of calcium are diary milk, cheese yogurt, and green vegetables. The amount of calcium people need varies: young people need a high intake, so that growth and development are assured. Older women need calcium supplementation in order to prevent osteoporosis. Calcium is absorbed in the very beginning of the small bowel: duodenum and the first portion of the jejunum. The intestinal absorption is regulated by Vitamin D, and its mobil ization is tightly regulated by various hormones and signaling mechanisms, with a continuous remodeling of calcium storage. For example, if calcium is not adequately obtained from diet, a series of hormonal mechanisms are set off in order to get the necessary amount from bones; if this process is sustained for a long period of time, bones weaken. The kidneys are also important organs which regulate calcium metabolism and keep its blood levels (Choudhury & Levy 2007). In the different portions of the kidney, calcium is reabsorbed, so that equilibrium is achieved in the blood. Additionally, in both the proximal and distal nephrons, filtrated calcium is passively or actively absorbed into the bloodstream obtaining adequate levels in the urine. Those mechanisms can be modified with different drugs, which are used in certain conditions such as renal calculi. To review the impact of kidney disease in calcium metabolism, Hamdy (2007) has published an article where he explains the role of chronic kidney disease and the major disturbances seen in bone and mineral metabolism. A review of calcium metabolism would not be complete without addressing bone processes. Bone undergoes remodeling in all life stages, but certainly this process is faster in younger individuals, and more significant in trabecular bone than cortical bone. Normal bones are formed by different substances. Most of the body's calcium is stored in the bones, along with phosphorus and, mostly, as calcium phosphate salts. The great majority (almost 99%) of the calcium is found in the skeleton and approximately 1% moves freely from and into the bones (Matos 2008). Two principal cells regulate bone formation and destruction: osteoclasts and osteoblasts. Osteoclasts resorb bone and are formed by numerous monocytes that fuse and take shape of a multinucleated cell. On the other hand, osteoblasts deposit new bone and arise from mesenchymal cells. The remainder component of bone

Demand and Issues of Urban Infrastructure

Demand and Issues of Urban Infrastructure Case Study of The Financial Model For Water Supply Project 1 Introduction 1.1 Rationale/Background According to the RICS recent survey only 4% of the people want to live in Urban Area. This shows the reverse in standard of living requirement which was dream of living in the urban area. What has gone wrong? We know that gypsies used to settle were they could find water. It can be said that water is such an important element for development of any place irrespective of urban or rural area. In India 30% of the total population live in Urban Area and contribute to 60% of the total GDP (Gross Domestic Product). 31% is the increase in the population in last decade compared to 18% in the rural area. So it is necessary to boost urban infrastructure by public as well as private intervention institution. Creativity is the service of the age that generate Ideas that become product and service. The downturn of the economies has advantage of new invention which is also true in case of maximization profit. With increase in the demographic of ages, climate, cultures and immigration it is difficult to take the risk of demand of the urban area. The risk of controlling the demand must be taken by government agency to encourage the private parties for excellence service in Infrastructure. 1.2 Research Aim and Objective 1.2.1 Aim To develop financial model for water supply projects using â€Å"JNNURM toolkit†. This can be used to analyze the relationship between performance and sustainability in PPP method of procurement. 1.2.2 Objective To study the preparation of Urban Infrastructure and Investment plan for the city. To evaluate the feasibility of water supply service in particular. Role of PPP in Urban Infrastructure. 1.2.3 Main Hypothesis Need for Urban Infrastructure and their implementation under governance of JNNURM scheme. To promote sustainable investment and innovative PPP method of procurement increase in the efficiency at municipality level by vigilance. Freedom should be given to private parties to make them comfortable. 1.3 Outline Methodology of Study We will first try to figure out what is the need of the curbing population of that particular city. The cities are in a desperate need of finance for carrying out the reviving projects. But the previous schemes and projects by the municipalities and state governments have failed miserably on the grounds of implementation (ie, time management) and utilization of funds. So there is a need to gather finance for the reviving project for the curbing infrastructure .The story does not end here, there is also a need to govern the utilization of fund. There is a new scheme which is growing popularity by the Government of India along with State government and the municipalities. The buzz word in this scheme is the governance of the project because there is a proper channel how to control the funds issued by the government. Also the government of India will regularly monitor the implementation of the project. Along with this there is a unique proposal of submitting the CDP (City Development Plan) for approval. So our approach would be to find a method of relating the increase in population and need of the same in coming 20 years as well as to arranging and managing finance considering all the factors like inflation, operation and maintenance cost. For this we would study CDPs of various cities and also study their approach in solving the future infrastructure problems. Also we would compare various CDPs and comment on their efficiency. Since we are talking of CDPs preparation and involvement of private parties we will try some case study and prepare the financial appraisal of the same. We would critically analyze whether the project is financially feasible under JNNURM (Jawaharlal Nehru National Urban Renewal Mission) scheme 1.3.1 Literature review and the pilot study This literature review the following subject of India City Development plan Finance scheme for city development plan PPP procurement JNNURM Scheme Pilot Study consists of Theoretical approach. Study of a practical approach to prepare CPD for water supply project under guidelines of JNNURM scheme toolkit. 1.3.2 Main Study Case study:- Feasibility of water supply project under JNNURM scheme using Financial appraisal calculation and role of PPP in such project. The name of the city under case study has been changed due to sensibility of the case as it is live project. The name of the city will not effect on research subject of development of financial appraisal model because scenario is well detailed. The approach of this study by Quantitative and Analytical Comparison of CPD between different states: selected 4nos of states for comparison. The approach is Quantitative by reading the CPD’s of different states and comparing them. 1.3.3 Writing Up Chapter-1 :-Introduction Chapter-2:-City Development Plan Chapter-3:-Private Partner Chapter-4:- JNNURM Scheme Chapter-5:- Case Study Chapter-6:- Comparison of CPD between different states Chapter-7:-Conclusion 2 City Development Plan 2.1 Geographical Information 29 states and 6 union territories* Andaman and Nicobar Islands* Lakshadweep* Andhra Pradesh Madhya Pradesh Arunachal Pradesh Maharashtra Assam Manipur Bihar Meghalaya Chandigarh* Mizoram Chhattisgarh Nagaland Dadra and Nagar Haveli* Orissa Daman and Diu* Pondicherry* Delhi Punjab Goa Rajasthan Gujarat Sikkim Haryana Tamil Nadu Himachal Pradesh Tripura Jammu and Kashmir Uttaranchal Jharkhand Uttar Pradesh Karnataka West Bengal Kerala * Union territory 2.2 Demography Table 1 India: Development Indicator â€Å"According to a United Nations study (1995), by the year 2015, ten of the worlds fifteen largest cities will be in Asia (excluding Japan); three of these will be in India. In 1950, this same region claimed only three of the worlds fifteen largest cities, whilst India claimed only one. These projections suggest that demographic growth in Indias large cities will be high, partly due to national population growth and partly due to immigration. The logistic model used by the United Nations, the World Bank, and other international agencies for the projection of urban population world-wide suggests that India is poised for rapid urbanisation, along with several other countries in south and East Asia. â€Å" SIZE: As per Census 2001, only 28% of the 1.1 billion Indians live in urban areas. Expected to increase to 40% by 2021. About 60% of the country’s GDP originates from urban areas. Allocation of US$12 billion by the Government of India under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) for a period of 7 years for improving urban infrastructure across 63 cities. Key metro cities Mumbai, Kolkata, Delhi, Bengaluru, Chennai, Hyderabad and Ahmedabad allocated 47.5% percent of these funds. STRUCTURE:JNNURM functions under the overall guidance of a National Steering Group (NSG) which comes under the purview of Ministry of Urban Development JNNURM is aimed at fast-track planned development of identified cities. Key highlights Integrated development of urban infrastructure projects Renewal and redevelopment of inner city areas Provision of basic services to urban poor Funds to be channelised through Urban Local Bodies who will be responsible for implementation Implementing agencies to leverage sanctioned funds to attract private sector investments through PPP contracts Outlook Investments of more than US$50 billion would be required in the next 5 years to improve and build urban infrastructure JNNURM is the single largest initiative of Government of India for planned development of cities Opportunity for private players to partner with Urban Local Bodies (ULB) in development of urban infrastructure such as Water supply and sanitation Slum redevelopment Urban transportation including roads, highways, expressways, Mass Rapid Transport Systems (MRTS) and metro projects Solid waste management POTENTIAL: A large component of development work will be through public-private partnership. Water supply and sanitation in urban areas to attract investments over US$30 billion. POLICY 100% FDI under the automatic route permitted for townships, housing, built-up infrastructure and construction-development based projects subject to minimum scale norms JNNURM will provide grants/viability gap funding for projects 2.3 Problems â€Å"Urban Local Bodies (ULBs) of India are the constitutionally provided administrative units that provide basic infrastructure and services in cities and towns. According to Census of India 1991, there are 3255 ULBs in the country classified into four major categories: Nagar Nigams Nagar Palikaa Nagar Panchayats Large urban areas are governed by Nagar Nigams, often simply called corporations. The area under a corporation is further divided up into wards. Individual wards or collections of wards within a corporation sometimes have their own administrative body known as ward committees. Smaller urban areas are governed by Nagar Palika, which are often referred to simply as municipalities. Municipalities are also divided into wards, which may be grouped together into ward councils. One or more representatives are elected to represent each ward.† â€Å"What is worse, many ULBs have accumulated ‘large’ debts and face serious problems in servicing them. Besides the restriction to a small resource base poor planning process, lack of periodical revision of municipal tax rates / user charges, and poor information system and records management are some of the basic weaknesses in the present municipal administration.† The â€Å"Infrastructure Problem  : In spite of its prominent role in Indian economy, urban India faces serious problems due to population pressure, deterioration in the physical environment and quality of life. According to estimates nearly one third of the urban India lives below poverty line. About 15 percent of the urbanites do not have access to safe drinking water and about 50 percent are not covered by sanitary facilities. There is a huge and widening gap between demand and supply of essential services and infrastructure. â€Å" 2.4 Schemes for development of urban development The ongoing schemes of Urban Infrastructure Development in the mega cities, and Integrated Development of Small and Medium Towns (IDSMT) do not meet the requirement of infrastructure development of all cities/towns in the country. There is, therefore, need to have a comprehensive scheme for infrastructure development of all cities/towns in the country. Other scheme like Urban Reforms Incentive Fund (URIF) also needs to be subsumed in the said comprehensive scheme. Funding is linked to reforms which are classified into â€Å"mandatory† and â€Å"optional† as detailed below: Mandatory Reforms—State level: Repeal of Urban Land Ceiling and Regulation Act Reform of Rent Control Laws so as to stimulate private investment in rental housing schemes. Rationalisation of Stamp Duty to bring it down to no more than 5 per cent within the next five years. Introduction of independent regulators for urban services. Mandatory Reforms –Core (at ULBs level): Double entry system of accounting for Urban Local Bodies Adoption of public disclosure law – disclosure of medium-term fiscal plan and quarterly performance reports. Passage of community participation law. All special agencies currently involved in delivering urban civic services to be brought under the supervision of ULBs, thus creating a uniform accountability platform. A Bangalore Action Task Force (BATF) kind of citizen’s technical advisory group should be constituted for each city to guide the process of urban reforms. Urban development authorities discharging city Planning functions and the new city development function should associate the ULBs more closely. Introduction of e-governance, Global Information System (GIS) and Monitoring Information System ( MIS) Reform of Property Tax laws. Levy of reasonable user charges. Optional Reforms: Revision of byelaws to streamline the approval process. Simplification of legal and procedural frameworks for conversion of agricultural land for non-agricultural purposes Introduction of Property Title Certification System in ULBs. Earmarking at least 20-25 per cent of developed land in all housing projects for the poor. Introduction of computerized process of registration of land and property Revision of bye-laws to make rain water harvesting mandatory Bye-laws for reuse of reclaimed water Administrative reforms, i.e. right sizing of the ULBs. It is important to note that the contribution of urban sector to GDP is currently expected to be in the range of 60 percent. In this context, enhancing the productivity of urban areas is now central to the policy pronouncements of the Ministry of Urban Development. Cities hold tremendous potential as engines of economic and social development, creating jobs and generating wealth through economies of scale. They need to be sustained and augmented through the high urban productivity for countrys economic growth. National economic growth and poverty reduction efforts will be increasingly determined by the productivity of these cities and towns. For Indian cities to become growth oriented and productive, it is essential to achieve a world class urban system. This in turn depends on attaining efficiency and equity in the delivery and financing of urban infrastructure. Resource Gap: The India Infrastructure, Report, 1996, assessed the total annual investment needs of water supply, sanitation and roads sectors at Rs. 28,036 crores per year on an average during 1996-2006. Where as funds to that extent are not available. To overcome these constraints and challenges, the Ministry of Urban Development has initiated institutional, fiscal and financial reforms. First generation urban sector reform known as the 74th Constitutional Amendment Act of 1992, recognizes the principles of local self governments and empowers urban local bodies with financial resources through Central Finance Commission and State Finance Commissions. Subsequently, in order to strengthen these local bodies, second generation reform have also been started. In the last decade, enormous progress has been made in removing impediments to efficient investment. Resource Mobilization Effort: In August, 1996, the Central Government guidelines entitled Urban Development Plans Formulation and Implementation were circulated to all State Governments for adoption. These guidelines, apart from other issues, suggest innovative approaches for fiscal resource mobilization. In the backdrop of the New Economic Policy, it was suggested that the traditional system of funding based on Plan and budgetary allocations be reduced and ultimately withdrawn due to fiscal deficit. Subsidies need to be rationalized and urban development plans and projects need to be placed on a commercial format by designing commercially viable urban infrastructure services and area development projects. This can be achieved by restoring a proper match between functions and source of revenue by giving additional tax measures. Other innovative resource mobilization measures include using land as resource, increase in the non-property taxes and using public private partnership in service delivery. 2.4.1 Second Generation Reforms Regulatory Framework: The participation of the private sector in financing and the delivery of infrastructure at the municipal level, especially in the water and sanitation sector, require a regulatory framework to protect consumers, apply environmental standards and support the delivery to the poor. As there are a variety of models of regulation from centralized to decentralized systems, guidelines will be developed at the National level to ensure consistency across the country. Appropriate training programme and capacity support to regulators will also be developed in partnership with the private sector and urban research institutions. Model legislation: The Central Government is in the process of preparing model legislation for facilitating private sector participation in urban infrastructure. This is necessary as the present legislative scenario does not encourage private sector participation in this field. A model Municipal Act which will be recommended to the State Governments would include modification and simplification of Municipal bylaws, provision for enhanced borrowing, allowing the entry of private sector and authorizing concessionaires to penalize users for non payment of tariffs. Municipal Accounting System: The Task Force constituted by the O/o CAG of India had recommended for introduction of accrual basis of accounting system for the urban local bodies (ULBs) and suggested model budgeting and accounting formats for that purpose. The Task Force Report was circulated to all States/UTs for adoption of accrual basis of accounting system as well as the budget and accounting formats. Further to provide a simplified tool kit to the ULBs for recording the accounting entries, Ministry of Urban Development in cooperation with the Office of CAG of India has prepared a National Municipal Accounting Manual (NMAM) and circulated to all States/UTs in January, 2005. The Manual comprehensively details the accounting policies, procedures, guidelines designed to ensure correct, complete and timely recording of municipal transactions and produce accurate and relevant financial reports. The NMAM would help the States prepare their state-level accounting manuals in accordance with their own requirements for use by the ULBs. This initiative is expected not only to enhance the capacities of ULBs in municipal accounting leading to increased transparency and accountability of utilization of public funds for the development of urban sector but also will help in creating an environment in which urban local bodies can play their role more effectively and ensure better service delivery. Public private partnership guidelines: Central Government will develop guidelines for involvement of the private sector in infrastructure, which will ensure competitive biding process in a transparent manner. These guidelines will not only protect the consumers but also ensure integrity of the process. This would support municipalities in designing the PPP process on the lines of the BOT Centre in Philippines or the PPP in the Ministry of Finance in South Africa. Chapter4 included the issues related to PPP. 2.4.2 Fiscal incentives Foreign direct investment (FDI): Hitherto Foreign Investment Promotion Board (FIPB) allowed direct investment in providing urban services on a case to case basis. This scenario has changed with the decision of the Central Government removing restrictions on FDI in urban infrastructure facilities which are now open both under FIPB and the automatic route as per sector specific guidelines. Guidelines have since even issued for FDI in development of integrating township including housing and building material. External assistance: Since independence, externally assisted urban sector projects have accounted for US$ 2300 million. A review of these projects indicated a need to adopt a programme approach rather than a project approach for availing external assistance. It also indicated the need to encourage a multiple donor scenario and tapping low cost funds for urban infrastructure. Tax free municipal bond: Municipal bonds were successfully issued by several Municipal Corporations like, Bangalore, Ahmadabad, Ludhiana, Nagpur, Nasik, and Madurai for raising resources for urban infrastructure. The Central Government had announced tax exemption in case of bonds issued by Municipal / Local Governments. Guidelines were issued by this Ministry on 8.2.2001 for regulating issue of tax free municipal bonds. Under the guidelines, such bonds will be issued for raising resources for capital investment in creation of new infrastructure as well as augmentation of existing systems. Tax free bonds worth Rs. 100 crore by Ahmadabad Municipal Corporation have been permitted for improving infrastructure. Hyderabad Municipal Corporation has also been permitted to issue tax free municipal bonds for Rs. 82.5 crore. Pooled financing for municipal infrastructure: Traditionally, municipal corporations and urban local bodies have relied on subsidized funds for providing urban services which constraints the constraints the introduction of user charges and efficient project operation and maintenance. In view of the huge resource gap, direct access to capital market would now be an accepted viable option. However, access to capital market requires financial discipline and enhanced credit rating. It has been the experience that only bigger municipal corporations are in a position to take the advantage of the resources available in capital market. Medium and smaller municipalities are unable to do so due to weak financial position and lack of capacity to prepare viable project proposals. A State level pooled financing mechanism is being proposed for smaller and medium municipalities. The objective of a State level pooled finance mechanism is to provide a cost effective and efficient approach for smaller and medium sized ULBs to access the domestic capital markets for urban infrastructure and to introduce new institutional arrangements for mobilising Urban Infrastructure Finance. City Restructuring: Government of India is also encouraging citywide reforms and restructuring so as to ensure that cities are managed efficiently and become creditworthy (to attract private finance ) which will enable them to prepare long term plans for infrastructure investments and implement poverty alleviation programmes. Citywide reforms and restructuring will, however, result in significant transaction costs during the period of transition. Leaving cities to finance these costs by themselves will delay and make it difficult to implement these reforms. It is to partly offset this disadvantage that the Ministry of Urban Development is proposing to set up a performance based City Challenge Fund for catalyzing city level economic reform programmes. The resources from the Fund would be given as grants but should ideally be matched by equal allocations either from the cities themselves or from the respective State governments. Access to the fund would be on a competitive basis. Establishment of an urban academy: The proposed Urban Academy is visualized as a centre of excellence in Urban Matters such as urban water supply, sanitation, urban transport, urban governance, municipal finance, etc. It will be a n ideal town-planning habitat, wherein experts from India and abroad can experiment with new layouts, building materials, landscaping, heritage preservation etc., and it will have Synergic links with all other institutions specializing in urban matters. This will coordinate all Training and Capacity Building Initiatives and effort of change management forums. Conclusion In conclusion, it is evident that the New Economic Policy launched in India in 1991-92, did see several important initiatives in the urban sector designed to encourage private sector participation in urban infrastructure projects. These initiatives would need to be taken to their logical conclusion. A series of new Reform Measures are being put together for implementation during 10th Plan Period. Through these, we hope to reverse the declining standards of urban infrastructure in the country. Public Private Partnership Procurement addresses how the industry organizes itself to deliver construction projects. Contracts define the rules governing the relationships between the many organizations involved in each project. Construction industry clients are faced with a perplexing array of skills and resources which must be combined effectively to develop a building (or other constructed facility) that will fulfill their needs. All but the simplest of buildings involve the management, design, assembly and commissioning of large amounts of raw materials using appropriately-skilled labor provided by multiple organizations over a long period of time. The flow of money between Organizations must be formally organized, as must the distribution of responsibility and risk among them. While the technical complexities of the design solution itself are addressed by the specialized skills of construction industry members, the interaction of these organizations must be structured by the selection of an appropriate procurement route and the effective administration (i.e. day to day running) of the associated form of construction contract. At the project outset, clients will usually seek advice on the selection of a procurement route to bring the required organizations together. Figure 1 Example of a cost and Time Overruns in Public Sector Projects. In response to these problems, two key joint industry and government reports were published to stimulate innovation in construction industry practice: the Latham Report in 1994 and the Egan Report in 1998. In the first report – â€Å"Constructing the Team† – Sir Michael Latham commented: â€Å"Implementation begins with clients. Clients are at the core of the Process and their needs must be met by industry† â€Å"Rethinking Construction† proposed five drivers for change in the construction industry: 1. Committed leadership 2. A focus on the customer 3. Integrated processes and teams 4. A quality driven agenda 5. Commitment to people In the public sector, HM Treasury launched the â€Å"Achieving Excellence in Construction† initiative in 1999 to improve the performance of Government in its client role by publishing â€Å"Achieving Excellence in Construction Procurement Guides† [11] which addresses the following issues: 1. Initiating action 2. Project organization 3. Project procurement lifecycle 4. Risk and value management 5. The integrated project team 6. Procurement and contract strategies 7. Whole-life costing 8. Improving performance 9. Design quality 10. Health and safety 11. Sustainability Public sector clients are generally concerned with certainty of budget and quality and, above all else, ensuring public accountability as they are spending public money. Clients who build regularly – perhaps continuously –can be considered experienced Construction projects can be structured in a variety of ways as â€Å"No single procurement route† is suited to all situations and so is required to link the Client’s business requirements before an appropriate project structure can be recommended. The Office of Government Commerce defines these terms as follows [1]: â€Å"Procurement strategy: The procurement strategy identifies the best way of achieving the objectives of the project and value for money, taking account of the risks and constraints, leading to decision about the funding mechanism and asset ownership for the project. The aim of a procurement strategy is to achieve the optimum balance of risk, control and funding for a particular project.† â€Å"Procurement route: The procurement route delivers the procurement strategy. It included the contract strategy that will best meet the Client’s needs. An integrated procurement route ensures that design, construction, operations and maintenance are considered as a whole; it also ensures that the delivery team work together as an integrated project team.† Figure 2 The relationship of procurement strategy to procurement route â€Å"A Public Private Partnership (PPP) is an umbrella term for arrangements agreed – often with legal force – between public and private sector organisations to their mutual benefit. The Private Finance Initiative (PFI) is one form of PPP developed by the Government in which the public and private sectors join to design, build or refurbish, finance and operate new or improved facilities and services to the general public. PFI schemes generally involve a consortium of private sector companies, who collaborate to form a Special Purpose Vehicle (SPV) which then contracts with the public sector to provide services such as hospitals, schools and roads to specifications provided by public sector bodies.† 3.1 Procurement method issues Construction industry has complex analysis mere by dual component of land and building. It has fuzz boundaries. The fragmentation of the industry between contractor, consultant, project management etc creates the industry highly volatile. It can also be argued the reduction of professionalism if it is at only contractor. So it is expected to carry multitude of negative aspects of Investment which is derived from present consumption. In Economics term Investment is the process of trading present consumption for new capital. Present trading can be alternative to investment in other than the construction industry. Individual participant have significant approach to price and quantity. â€Å"This definition illustrates several key characteristics of PFI schemes: A service, rather than capital assets, is purchased. PFI schemes run for a long time. The public sector typically requires procures the provision of a service over a 25 to 35 year period. Buildings or other infrastructure is usually constructed by the private sector as a consequence of the need to provide the agreed service. The PFI agreement will define the level of service required (such as providing a maintained, lit, warm, clean and catered hospital, for example) and the private sector will finance the design and construction of new or adapted facilitates as necessary to accommodate that service. Because the public sector is purchasing a service, rather than assets, it will not own those assets unless the transfer of their ownership is agreed when setting up the scheme (see Section 6.6.5). Subject to any specification imposed by the public sector client, the private sector is free to use whatever means it considers appropriate when constructing the assets. This can lead to design quality and performance shortcomings (see Section 6.6.4). The private sector puts itself at risk when securing the finance required to construct any capital assets required by the scheme. In return, it will expect to be paid for managing this risk. This raises the overall cost of PFI schemes above that of non-PFI procurement where financing risks are minimal as they are borne by the public sector with funding traditionally provided and underwritten by the Treasury.† 3.2 Role of PPP in Infrastructures â€Å"In the projects from the Public Private Partnership (PPP) and Private Finance Initative (PFI) programmes, the public sector contracts to purchase services – rather than any particular building – from the private sector in the long term. The delivery Demand and Issues of Urban Infrastructure Demand and Issues of Urban Infrastructure Case Study of The Financial Model For Water Supply Project 1 Introduction 1.1 Rationale/Background According to the RICS recent survey only 4% of the people want to live in Urban Area. This shows the reverse in standard of living requirement which was dream of living in the urban area. What has gone wrong? We know that gypsies used to settle were they could find water. It can be said that water is such an important element for development of any place irrespective of urban or rural area. In India 30% of the total population live in Urban Area and contribute to 60% of the total GDP (Gross Domestic Product). 31% is the increase in the population in last decade compared to 18% in the rural area. So it is necessary to boost urban infrastructure by public as well as private intervention institution. Creativity is the service of the age that generate Ideas that become product and service. The downturn of the economies has advantage of new invention which is also true in case of maximization profit. With increase in the demographic of ages, climate, cultures and immigration it is difficult to take the risk of demand of the urban area. The risk of controlling the demand must be taken by government agency to encourage the private parties for excellence service in Infrastructure. 1.2 Research Aim and Objective 1.2.1 Aim To develop financial model for water supply projects using â€Å"JNNURM toolkit†. This can be used to analyze the relationship between performance and sustainability in PPP method of procurement. 1.2.2 Objective To study the preparation of Urban Infrastructure and Investment plan for the city. To evaluate the feasibility of water supply service in particular. Role of PPP in Urban Infrastructure. 1.2.3 Main Hypothesis Need for Urban Infrastructure and their implementation under governance of JNNURM scheme. To promote sustainable investment and innovative PPP method of procurement increase in the efficiency at municipality level by vigilance. Freedom should be given to private parties to make them comfortable. 1.3 Outline Methodology of Study We will first try to figure out what is the need of the curbing population of that particular city. The cities are in a desperate need of finance for carrying out the reviving projects. But the previous schemes and projects by the municipalities and state governments have failed miserably on the grounds of implementation (ie, time management) and utilization of funds. So there is a need to gather finance for the reviving project for the curbing infrastructure .The story does not end here, there is also a need to govern the utilization of fund. There is a new scheme which is growing popularity by the Government of India along with State government and the municipalities. The buzz word in this scheme is the governance of the project because there is a proper channel how to control the funds issued by the government. Also the government of India will regularly monitor the implementation of the project. Along with this there is a unique proposal of submitting the CDP (City Development Plan) for approval. So our approach would be to find a method of relating the increase in population and need of the same in coming 20 years as well as to arranging and managing finance considering all the factors like inflation, operation and maintenance cost. For this we would study CDPs of various cities and also study their approach in solving the future infrastructure problems. Also we would compare various CDPs and comment on their efficiency. Since we are talking of CDPs preparation and involvement of private parties we will try some case study and prepare the financial appraisal of the same. We would critically analyze whether the project is financially feasible under JNNURM (Jawaharlal Nehru National Urban Renewal Mission) scheme 1.3.1 Literature review and the pilot study This literature review the following subject of India City Development plan Finance scheme for city development plan PPP procurement JNNURM Scheme Pilot Study consists of Theoretical approach. Study of a practical approach to prepare CPD for water supply project under guidelines of JNNURM scheme toolkit. 1.3.2 Main Study Case study:- Feasibility of water supply project under JNNURM scheme using Financial appraisal calculation and role of PPP in such project. The name of the city under case study has been changed due to sensibility of the case as it is live project. The name of the city will not effect on research subject of development of financial appraisal model because scenario is well detailed. The approach of this study by Quantitative and Analytical Comparison of CPD between different states: selected 4nos of states for comparison. The approach is Quantitative by reading the CPD’s of different states and comparing them. 1.3.3 Writing Up Chapter-1 :-Introduction Chapter-2:-City Development Plan Chapter-3:-Private Partner Chapter-4:- JNNURM Scheme Chapter-5:- Case Study Chapter-6:- Comparison of CPD between different states Chapter-7:-Conclusion 2 City Development Plan 2.1 Geographical Information 29 states and 6 union territories* Andaman and Nicobar Islands* Lakshadweep* Andhra Pradesh Madhya Pradesh Arunachal Pradesh Maharashtra Assam Manipur Bihar Meghalaya Chandigarh* Mizoram Chhattisgarh Nagaland Dadra and Nagar Haveli* Orissa Daman and Diu* Pondicherry* Delhi Punjab Goa Rajasthan Gujarat Sikkim Haryana Tamil Nadu Himachal Pradesh Tripura Jammu and Kashmir Uttaranchal Jharkhand Uttar Pradesh Karnataka West Bengal Kerala * Union territory 2.2 Demography Table 1 India: Development Indicator â€Å"According to a United Nations study (1995), by the year 2015, ten of the worlds fifteen largest cities will be in Asia (excluding Japan); three of these will be in India. In 1950, this same region claimed only three of the worlds fifteen largest cities, whilst India claimed only one. These projections suggest that demographic growth in Indias large cities will be high, partly due to national population growth and partly due to immigration. The logistic model used by the United Nations, the World Bank, and other international agencies for the projection of urban population world-wide suggests that India is poised for rapid urbanisation, along with several other countries in south and East Asia. â€Å" SIZE: As per Census 2001, only 28% of the 1.1 billion Indians live in urban areas. Expected to increase to 40% by 2021. About 60% of the country’s GDP originates from urban areas. Allocation of US$12 billion by the Government of India under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) for a period of 7 years for improving urban infrastructure across 63 cities. Key metro cities Mumbai, Kolkata, Delhi, Bengaluru, Chennai, Hyderabad and Ahmedabad allocated 47.5% percent of these funds. STRUCTURE:JNNURM functions under the overall guidance of a National Steering Group (NSG) which comes under the purview of Ministry of Urban Development JNNURM is aimed at fast-track planned development of identified cities. Key highlights Integrated development of urban infrastructure projects Renewal and redevelopment of inner city areas Provision of basic services to urban poor Funds to be channelised through Urban Local Bodies who will be responsible for implementation Implementing agencies to leverage sanctioned funds to attract private sector investments through PPP contracts Outlook Investments of more than US$50 billion would be required in the next 5 years to improve and build urban infrastructure JNNURM is the single largest initiative of Government of India for planned development of cities Opportunity for private players to partner with Urban Local Bodies (ULB) in development of urban infrastructure such as Water supply and sanitation Slum redevelopment Urban transportation including roads, highways, expressways, Mass Rapid Transport Systems (MRTS) and metro projects Solid waste management POTENTIAL: A large component of development work will be through public-private partnership. Water supply and sanitation in urban areas to attract investments over US$30 billion. POLICY 100% FDI under the automatic route permitted for townships, housing, built-up infrastructure and construction-development based projects subject to minimum scale norms JNNURM will provide grants/viability gap funding for projects 2.3 Problems â€Å"Urban Local Bodies (ULBs) of India are the constitutionally provided administrative units that provide basic infrastructure and services in cities and towns. According to Census of India 1991, there are 3255 ULBs in the country classified into four major categories: Nagar Nigams Nagar Palikaa Nagar Panchayats Large urban areas are governed by Nagar Nigams, often simply called corporations. The area under a corporation is further divided up into wards. Individual wards or collections of wards within a corporation sometimes have their own administrative body known as ward committees. Smaller urban areas are governed by Nagar Palika, which are often referred to simply as municipalities. Municipalities are also divided into wards, which may be grouped together into ward councils. One or more representatives are elected to represent each ward.† â€Å"What is worse, many ULBs have accumulated ‘large’ debts and face serious problems in servicing them. Besides the restriction to a small resource base poor planning process, lack of periodical revision of municipal tax rates / user charges, and poor information system and records management are some of the basic weaknesses in the present municipal administration.† The â€Å"Infrastructure Problem  : In spite of its prominent role in Indian economy, urban India faces serious problems due to population pressure, deterioration in the physical environment and quality of life. According to estimates nearly one third of the urban India lives below poverty line. About 15 percent of the urbanites do not have access to safe drinking water and about 50 percent are not covered by sanitary facilities. There is a huge and widening gap between demand and supply of essential services and infrastructure. â€Å" 2.4 Schemes for development of urban development The ongoing schemes of Urban Infrastructure Development in the mega cities, and Integrated Development of Small and Medium Towns (IDSMT) do not meet the requirement of infrastructure development of all cities/towns in the country. There is, therefore, need to have a comprehensive scheme for infrastructure development of all cities/towns in the country. Other scheme like Urban Reforms Incentive Fund (URIF) also needs to be subsumed in the said comprehensive scheme. Funding is linked to reforms which are classified into â€Å"mandatory† and â€Å"optional† as detailed below: Mandatory Reforms—State level: Repeal of Urban Land Ceiling and Regulation Act Reform of Rent Control Laws so as to stimulate private investment in rental housing schemes. Rationalisation of Stamp Duty to bring it down to no more than 5 per cent within the next five years. Introduction of independent regulators for urban services. Mandatory Reforms –Core (at ULBs level): Double entry system of accounting for Urban Local Bodies Adoption of public disclosure law – disclosure of medium-term fiscal plan and quarterly performance reports. Passage of community participation law. All special agencies currently involved in delivering urban civic services to be brought under the supervision of ULBs, thus creating a uniform accountability platform. A Bangalore Action Task Force (BATF) kind of citizen’s technical advisory group should be constituted for each city to guide the process of urban reforms. Urban development authorities discharging city Planning functions and the new city development function should associate the ULBs more closely. Introduction of e-governance, Global Information System (GIS) and Monitoring Information System ( MIS) Reform of Property Tax laws. Levy of reasonable user charges. Optional Reforms: Revision of byelaws to streamline the approval process. Simplification of legal and procedural frameworks for conversion of agricultural land for non-agricultural purposes Introduction of Property Title Certification System in ULBs. Earmarking at least 20-25 per cent of developed land in all housing projects for the poor. Introduction of computerized process of registration of land and property Revision of bye-laws to make rain water harvesting mandatory Bye-laws for reuse of reclaimed water Administrative reforms, i.e. right sizing of the ULBs. It is important to note that the contribution of urban sector to GDP is currently expected to be in the range of 60 percent. In this context, enhancing the productivity of urban areas is now central to the policy pronouncements of the Ministry of Urban Development. Cities hold tremendous potential as engines of economic and social development, creating jobs and generating wealth through economies of scale. They need to be sustained and augmented through the high urban productivity for countrys economic growth. National economic growth and poverty reduction efforts will be increasingly determined by the productivity of these cities and towns. For Indian cities to become growth oriented and productive, it is essential to achieve a world class urban system. This in turn depends on attaining efficiency and equity in the delivery and financing of urban infrastructure. Resource Gap: The India Infrastructure, Report, 1996, assessed the total annual investment needs of water supply, sanitation and roads sectors at Rs. 28,036 crores per year on an average during 1996-2006. Where as funds to that extent are not available. To overcome these constraints and challenges, the Ministry of Urban Development has initiated institutional, fiscal and financial reforms. First generation urban sector reform known as the 74th Constitutional Amendment Act of 1992, recognizes the principles of local self governments and empowers urban local bodies with financial resources through Central Finance Commission and State Finance Commissions. Subsequently, in order to strengthen these local bodies, second generation reform have also been started. In the last decade, enormous progress has been made in removing impediments to efficient investment. Resource Mobilization Effort: In August, 1996, the Central Government guidelines entitled Urban Development Plans Formulation and Implementation were circulated to all State Governments for adoption. These guidelines, apart from other issues, suggest innovative approaches for fiscal resource mobilization. In the backdrop of the New Economic Policy, it was suggested that the traditional system of funding based on Plan and budgetary allocations be reduced and ultimately withdrawn due to fiscal deficit. Subsidies need to be rationalized and urban development plans and projects need to be placed on a commercial format by designing commercially viable urban infrastructure services and area development projects. This can be achieved by restoring a proper match between functions and source of revenue by giving additional tax measures. Other innovative resource mobilization measures include using land as resource, increase in the non-property taxes and using public private partnership in service delivery. 2.4.1 Second Generation Reforms Regulatory Framework: The participation of the private sector in financing and the delivery of infrastructure at the municipal level, especially in the water and sanitation sector, require a regulatory framework to protect consumers, apply environmental standards and support the delivery to the poor. As there are a variety of models of regulation from centralized to decentralized systems, guidelines will be developed at the National level to ensure consistency across the country. Appropriate training programme and capacity support to regulators will also be developed in partnership with the private sector and urban research institutions. Model legislation: The Central Government is in the process of preparing model legislation for facilitating private sector participation in urban infrastructure. This is necessary as the present legislative scenario does not encourage private sector participation in this field. A model Municipal Act which will be recommended to the State Governments would include modification and simplification of Municipal bylaws, provision for enhanced borrowing, allowing the entry of private sector and authorizing concessionaires to penalize users for non payment of tariffs. Municipal Accounting System: The Task Force constituted by the O/o CAG of India had recommended for introduction of accrual basis of accounting system for the urban local bodies (ULBs) and suggested model budgeting and accounting formats for that purpose. The Task Force Report was circulated to all States/UTs for adoption of accrual basis of accounting system as well as the budget and accounting formats. Further to provide a simplified tool kit to the ULBs for recording the accounting entries, Ministry of Urban Development in cooperation with the Office of CAG of India has prepared a National Municipal Accounting Manual (NMAM) and circulated to all States/UTs in January, 2005. The Manual comprehensively details the accounting policies, procedures, guidelines designed to ensure correct, complete and timely recording of municipal transactions and produce accurate and relevant financial reports. The NMAM would help the States prepare their state-level accounting manuals in accordance with their own requirements for use by the ULBs. This initiative is expected not only to enhance the capacities of ULBs in municipal accounting leading to increased transparency and accountability of utilization of public funds for the development of urban sector but also will help in creating an environment in which urban local bodies can play their role more effectively and ensure better service delivery. Public private partnership guidelines: Central Government will develop guidelines for involvement of the private sector in infrastructure, which will ensure competitive biding process in a transparent manner. These guidelines will not only protect the consumers but also ensure integrity of the process. This would support municipalities in designing the PPP process on the lines of the BOT Centre in Philippines or the PPP in the Ministry of Finance in South Africa. Chapter4 included the issues related to PPP. 2.4.2 Fiscal incentives Foreign direct investment (FDI): Hitherto Foreign Investment Promotion Board (FIPB) allowed direct investment in providing urban services on a case to case basis. This scenario has changed with the decision of the Central Government removing restrictions on FDI in urban infrastructure facilities which are now open both under FIPB and the automatic route as per sector specific guidelines. Guidelines have since even issued for FDI in development of integrating township including housing and building material. External assistance: Since independence, externally assisted urban sector projects have accounted for US$ 2300 million. A review of these projects indicated a need to adopt a programme approach rather than a project approach for availing external assistance. It also indicated the need to encourage a multiple donor scenario and tapping low cost funds for urban infrastructure. Tax free municipal bond: Municipal bonds were successfully issued by several Municipal Corporations like, Bangalore, Ahmadabad, Ludhiana, Nagpur, Nasik, and Madurai for raising resources for urban infrastructure. The Central Government had announced tax exemption in case of bonds issued by Municipal / Local Governments. Guidelines were issued by this Ministry on 8.2.2001 for regulating issue of tax free municipal bonds. Under the guidelines, such bonds will be issued for raising resources for capital investment in creation of new infrastructure as well as augmentation of existing systems. Tax free bonds worth Rs. 100 crore by Ahmadabad Municipal Corporation have been permitted for improving infrastructure. Hyderabad Municipal Corporation has also been permitted to issue tax free municipal bonds for Rs. 82.5 crore. Pooled financing for municipal infrastructure: Traditionally, municipal corporations and urban local bodies have relied on subsidized funds for providing urban services which constraints the constraints the introduction of user charges and efficient project operation and maintenance. In view of the huge resource gap, direct access to capital market would now be an accepted viable option. However, access to capital market requires financial discipline and enhanced credit rating. It has been the experience that only bigger municipal corporations are in a position to take the advantage of the resources available in capital market. Medium and smaller municipalities are unable to do so due to weak financial position and lack of capacity to prepare viable project proposals. A State level pooled financing mechanism is being proposed for smaller and medium municipalities. The objective of a State level pooled finance mechanism is to provide a cost effective and efficient approach for smaller and medium sized ULBs to access the domestic capital markets for urban infrastructure and to introduce new institutional arrangements for mobilising Urban Infrastructure Finance. City Restructuring: Government of India is also encouraging citywide reforms and restructuring so as to ensure that cities are managed efficiently and become creditworthy (to attract private finance ) which will enable them to prepare long term plans for infrastructure investments and implement poverty alleviation programmes. Citywide reforms and restructuring will, however, result in significant transaction costs during the period of transition. Leaving cities to finance these costs by themselves will delay and make it difficult to implement these reforms. It is to partly offset this disadvantage that the Ministry of Urban Development is proposing to set up a performance based City Challenge Fund for catalyzing city level economic reform programmes. The resources from the Fund would be given as grants but should ideally be matched by equal allocations either from the cities themselves or from the respective State governments. Access to the fund would be on a competitive basis. Establishment of an urban academy: The proposed Urban Academy is visualized as a centre of excellence in Urban Matters such as urban water supply, sanitation, urban transport, urban governance, municipal finance, etc. It will be a n ideal town-planning habitat, wherein experts from India and abroad can experiment with new layouts, building materials, landscaping, heritage preservation etc., and it will have Synergic links with all other institutions specializing in urban matters. This will coordinate all Training and Capacity Building Initiatives and effort of change management forums. Conclusion In conclusion, it is evident that the New Economic Policy launched in India in 1991-92, did see several important initiatives in the urban sector designed to encourage private sector participation in urban infrastructure projects. These initiatives would need to be taken to their logical conclusion. A series of new Reform Measures are being put together for implementation during 10th Plan Period. Through these, we hope to reverse the declining standards of urban infrastructure in the country. Public Private Partnership Procurement addresses how the industry organizes itself to deliver construction projects. Contracts define the rules governing the relationships between the many organizations involved in each project. Construction industry clients are faced with a perplexing array of skills and resources which must be combined effectively to develop a building (or other constructed facility) that will fulfill their needs. All but the simplest of buildings involve the management, design, assembly and commissioning of large amounts of raw materials using appropriately-skilled labor provided by multiple organizations over a long period of time. The flow of money between Organizations must be formally organized, as must the distribution of responsibility and risk among them. While the technical complexities of the design solution itself are addressed by the specialized skills of construction industry members, the interaction of these organizations must be structured by the selection of an appropriate procurement route and the effective administration (i.e. day to day running) of the associated form of construction contract. At the project outset, clients will usually seek advice on the selection of a procurement route to bring the required organizations together. Figure 1 Example of a cost and Time Overruns in Public Sector Projects. In response to these problems, two key joint industry and government reports were published to stimulate innovation in construction industry practice: the Latham Report in 1994 and the Egan Report in 1998. In the first report – â€Å"Constructing the Team† – Sir Michael Latham commented: â€Å"Implementation begins with clients. Clients are at the core of the Process and their needs must be met by industry† â€Å"Rethinking Construction† proposed five drivers for change in the construction industry: 1. Committed leadership 2. A focus on the customer 3. Integrated processes and teams 4. A quality driven agenda 5. Commitment to people In the public sector, HM Treasury launched the â€Å"Achieving Excellence in Construction† initiative in 1999 to improve the performance of Government in its client role by publishing â€Å"Achieving Excellence in Construction Procurement Guides† [11] which addresses the following issues: 1. Initiating action 2. Project organization 3. Project procurement lifecycle 4. Risk and value management 5. The integrated project team 6. Procurement and contract strategies 7. Whole-life costing 8. Improving performance 9. Design quality 10. Health and safety 11. Sustainability Public sector clients are generally concerned with certainty of budget and quality and, above all else, ensuring public accountability as they are spending public money. Clients who build regularly – perhaps continuously –can be considered experienced Construction projects can be structured in a variety of ways as â€Å"No single procurement route† is suited to all situations and so is required to link the Client’s business requirements before an appropriate project structure can be recommended. The Office of Government Commerce defines these terms as follows [1]: â€Å"Procurement strategy: The procurement strategy identifies the best way of achieving the objectives of the project and value for money, taking account of the risks and constraints, leading to decision about the funding mechanism and asset ownership for the project. The aim of a procurement strategy is to achieve the optimum balance of risk, control and funding for a particular project.† â€Å"Procurement route: The procurement route delivers the procurement strategy. It included the contract strategy that will best meet the Client’s needs. An integrated procurement route ensures that design, construction, operations and maintenance are considered as a whole; it also ensures that the delivery team work together as an integrated project team.† Figure 2 The relationship of procurement strategy to procurement route â€Å"A Public Private Partnership (PPP) is an umbrella term for arrangements agreed – often with legal force – between public and private sector organisations to their mutual benefit. The Private Finance Initiative (PFI) is one form of PPP developed by the Government in which the public and private sectors join to design, build or refurbish, finance and operate new or improved facilities and services to the general public. PFI schemes generally involve a consortium of private sector companies, who collaborate to form a Special Purpose Vehicle (SPV) which then contracts with the public sector to provide services such as hospitals, schools and roads to specifications provided by public sector bodies.† 3.1 Procurement method issues Construction industry has complex analysis mere by dual component of land and building. It has fuzz boundaries. The fragmentation of the industry between contractor, consultant, project management etc creates the industry highly volatile. It can also be argued the reduction of professionalism if it is at only contractor. So it is expected to carry multitude of negative aspects of Investment which is derived from present consumption. In Economics term Investment is the process of trading present consumption for new capital. Present trading can be alternative to investment in other than the construction industry. Individual participant have significant approach to price and quantity. â€Å"This definition illustrates several key characteristics of PFI schemes: A service, rather than capital assets, is purchased. PFI schemes run for a long time. The public sector typically requires procures the provision of a service over a 25 to 35 year period. Buildings or other infrastructure is usually constructed by the private sector as a consequence of the need to provide the agreed service. The PFI agreement will define the level of service required (such as providing a maintained, lit, warm, clean and catered hospital, for example) and the private sector will finance the design and construction of new or adapted facilitates as necessary to accommodate that service. Because the public sector is purchasing a service, rather than assets, it will not own those assets unless the transfer of their ownership is agreed when setting up the scheme (see Section 6.6.5). Subject to any specification imposed by the public sector client, the private sector is free to use whatever means it considers appropriate when constructing the assets. This can lead to design quality and performance shortcomings (see Section 6.6.4). The private sector puts itself at risk when securing the finance required to construct any capital assets required by the scheme. In return, it will expect to be paid for managing this risk. This raises the overall cost of PFI schemes above that of non-PFI procurement where financing risks are minimal as they are borne by the public sector with funding traditionally provided and underwritten by the Treasury.† 3.2 Role of PPP in Infrastructures â€Å"In the projects from the Public Private Partnership (PPP) and Private Finance Initative (PFI) programmes, the public sector contracts to purchase services – rather than any particular building – from the private sector in the long term. The delivery