OD Application Harley

Harley-Davidson is the company with the prolonged history which started in 1903. The history of the company’s development is characterized by the periods of successes and failures because of the company’s orientation to producing high-quality expensive motorcycles interesting for the narrow audience (Brown, 2010, p. 295; Harley-Davidson, 1999).Advertising We will write a custom case study sample on OD Application: Harley-Davidson’s Plant Run by Work Teams specifically for you for only $16.05 $11/page Learn More During a long period of time, the company’s organization was based on the principle of the strong leadership. Nevertheless, Harley-Davidson changed the approach to the corporate culture and organization in 1998, while building the Harley-Davidson plant in Kansas City. The Harley-Davidson Kansas City plant is characterized by the focus on empowering employees and developing the natural work groups in 8 to 15 members who work to achieve the company’s goals without references to the leaders’ rules and regulations (Brown, 2010, p. 295). The idea to develop the successful plant based on the principle of natural work groups can be discussed as rather realistic, if all the aspects of this unique structure and organization are stated and fixed in detail. This approach can work effectively because every employee belonging to the team works to contribute to the company’s goal; every employee is empowered to make decisions and discuss them with the other team members; such important issues as schedules, strategies, and budgets are controlled by the teams; all the employees share the same information because of the slight differences in their statuses and positions; the open communication between all the team members is possible; and the employees share the same responsibilities while orienting to completing the company’s common goal (Brown, 2010, p. 295). Thus, the plant’s organization is based on the idea of the team cohesion which can provide a lot of benefits for the company and contribute to the significant increases in the employees’ motivation and productivity. However, this type of structure can be associated with many problems, if the shift from the team interests to the individual interests is realized. From this point, the self-managed work teams can work effectively till the members of the teams become focused on the individual contribution to the work of the team and to the group achievements (Harley-Davidson, USA, 2014). The team members can also observe the problems in communication which can lead to conflicts. Thus, the employees can become focused on their individual role in the process, orient to pursuing individual goals, concentrate on the realization of the personal ambitions, and begin to demonstrate their leader’s qualities. For instance, conflicts can be observed during the decision making process because the decis ion should be made with references to the vision of the majority.Advertising Looking for case study on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More That is why, definite improvements to affect the organizational structure based on the natural work groups should be implemented at the Harley-Davidson Kansas City plant. It is important to state clearly the functions and responsibilities of the Plant Leadership Group in order to avoid the conflicts between the group members which can depend on the individual ambitions and career plans. Furthermore, all the corporate information should be shared between the employees equally. The reward system should work equally in relation to all the working teams, depending on their productivity. It is also possible to improve the performance appraisal and reward systems to add to the employees’ motivation. Moreover, the plant’s employees should be trained to see the priori ty of the team goals as the path to the company’s high achievements. References Brown, D. (2010). An experiential approach to organization development. Upper Saddle, NJ: Pearson/Prentice Hall. Harley-Davidson: Company history and background. (1999). Retrieved from https://www.h-dsn.com/genbus/PublicDocServlet?docID=18docExt=p Harley-Davidson, USA. (2014). Web. This case study on OD Application: Harley-Davidson’s Plant Run by Work Teams was written and submitted by user Jaylah Q. to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Jonathan Livingston Seagull Essays

Jonathan Livingston Seagull Essays Jonathan Livingston Seagull Paper Jonathan Livingston Seagull Paper Richard Bach was born in 1936 in Oak Park, Ill. Grand son of JS Bach the great composer. He attended Long Beach State College (now California State University, Long Beach) in 1955. An airplane pilot, he got married with his first wife and had six children, then divorced and left his family in part because he didnt believe in marriage. One of his children, Jonathan, wrote a book about his relationship with his father that he never knew, Above the Clouds. Everything concerning airplane was his field, including motion picture stunt pilot, Air Force tactical fighter pilot, an aviation technical writer and flight instructor. Though Aviation was his true passion, he always wanted to write; since high school, one of his gym teachers made him realize his potential. Since 1959 he had this idea of a bird learning to pass beyond the walls of limitations, Jonathan Livingston Seagull. What seems like a simple story, maybe even childish has in fact a hidden meaning. This hidden meaning is more like one of the laws of life that people nowadays seem to have forgotten the fact that you can achieve anything you want if you actually work for it. This book cannot be placed in any classical genre. In my opinion, is in a genre of its own a life-inspiring book. This book reminds us that we can overcome any obstacles that are in our way we just have to work for it. Jonathan, the main character, wasnt happy with the fact that all seagulls did was search for food and squawk. Instead of our drab slogging forth and back to the fishing boats, theres a reason to life! We can lift ourselves out of ignorance, we can find ourselves as creatures of excellence and intelligence and skill. We can be free! We can learn to fly! Jonathan believed that he could achieve a whole new level of flying if he practiced. He spent his days flying higher and higher trying to go faster and faster. He learned new techniques. His flock didnt approve of this at one point Jonathan was even banished. Even then he spent his days flying. One day he crashed into a cliff but he woke up and started to fly again. Soon he met more gulls that also sought the same thing he did. Soon he realized that he was in Heaven. Heaven is a place where there are no limits, where you soar to unmeasurable heights. Most of us came along ever so slowly. We went from one world into another that was almost exactly lie it, forgetting right away where we had come from, not caring where we were headed, living for the moment. Do you have any idea how many lives we must have gone though before we even got the first idea that there is more to life than eating, or fighting, or power in the Flock? A thousand lives, Jon, ten thousand! And then another hundred lives until we began to learn that there is such a thing as perfection, and another hundred again to get the idea that our purpose is to find that perfection and show it forth. The same rule holds for us now, of course: we choose our next world through what we learn in this one. Learn nothing, and the next world is the same as this one, all the same limitations and lead weights to overcome. He made friends with the other seagulls that also wanted to achieve a new level in flying. Finally, he achieved what he spent so many days and nights searching for transcendence. At the point he had to make a choice: to stay there in Heaven or to leave that wonderful place and try to find more gulls like him that understood that there was more to life. He decided to go back. He was worried that he would never meet Fletcher (his guide in Heaven) again If our friendship depends on space and time, then when we finally overcome space and time, weve destroyed our own brotherhood. But overcome space, and all you have left is here. Overcome time and all you have left is now. And in the middle of Here and Now, dont you think that we might see each other once or twice? Upon his return to the flock he indeed found more gulls that wanted to soar just like him. Each day more and more gulls joined him. Jonathan taught them new techniques, taught them love. He explained to them that there was no point in being angry with the flock, that they should learn to forgive them and try to make them understand what they knew. This book applies to todays society. People are afraid of change. Theyre so used to things staying the same that even the thought of change scares them. They feel that the easiest way to get rid of this problem is to banish people. Turn them into outcasts. What they dont understand is that being an outcast only brings more confidence, more ambition, and more power to achieve the impossible. The most important thing is to not look back and overcome all obstacles that are in your way. Somebody once said, If theres a will, theres a way. All you have to do is remember that and you will achieve everything you want. I would recommend this book to any person who likes stories with a hidden meaning in them or anyone whos forgotten that they can get anything they want done. As Richard Bach once said If you are given a wish you are also given the power to achieve it but you might have to work for it.

TOK Essay Example | Topics and Well Written Essays - 1000 words

TOK - Essay Example In other words, the relativist argues that there is no objective or unbiased way of distinguishing between these different sets of norms. Therefore, the relativist’s central argument is that an assertion’s position as true or false is relative to the criteria applied in assessing this assertion. The principle of relativism is often attributed to Protagoras, who argues that â€Å"any given thing is to me such as it appears to me, and is to you such as it appears to you† (Siegel 1998, 35). Protagorean relativism is described by Plato’s Socrates as basing on the assumption that â€Å"what seems true to anyone is true for him to whom it seems so† (Siegel 1998, 35). This assumption is a kind of relativism because for the Protagorean there is no norm greater than the person, with his/her own particular position in place, time, culture, context, and so on—with mention of which assertions of truth, and thus knowledge, can be evaluated. Critics of relativism have presented numerous arguments against the principle; without a doubt the most essential is the argument that relativism is self-contradictory or self-referentially incoherent, which is a logical fallacy where in â€Å"some claims is made which, upon being applied to itself, refutes itself† (Dancy, Sosa, & Steup 2010, 677). There are different accounts of the incoherence argument. The strongest is that relativism disqualifies the chance of establishing the truth, or, the epistemic value of questionable assumptions and arguments, including itself, because as stated by relativism no assumption or argument can fail any evaluation of epistemic sufficiency or be deemed false or unfounded (Eaton 1925). For instance, Protagorean relativism: the argument â€Å"what seems true [or justified] to anyone is true [or justified] for him to whom it seems so† (Siegel 1998, 35) implies that no genuine assertion can fail to be true or be reasonably evaluated to be false.

Global Environment of Business. The Saudi Stock Market (2009-2011) Research Paper

Global Environment of Business. The Saudi Stock Market (2009-2011) - Research Paper Example Factors such composition of sectors; investors as well as regulations also have dominant impact on the performance along-with world indices impact. Moreover, being in infancy stage the research as also made certain recommendations based on the research conclusions. TABLE OF CONTENTS TABLE OF CONTENTS 3 Background To The Problem 5 Role And Importance Of Stock Market 5 Importance Of Saudi Stock Market 5 Origin And Growth 6 History 6 Regulator 6 Tadawul (The Saudi Stock Exchange) 6 Current Statistics In Comparison With GCC Countries 7 Problem Statement 10 Research Objectives 10 Overview of Research Methods 11 Analysis and Findings 12 Performance Of Tadawul 12 Overall Performance Of Tadawal 12 The Collapses And The Peaks In TASI 14 Analysis Of 2011 16 Factors 17 Oil Prices 17 Investors Composition 17 Regulation 18 Comparison With Other International Markets 18 Conclusion 20 Recommendations 21 Limitation to the Research Study 22 Limitations in the research study can greatly influence the findings and analysis of the research. Therefore it is significant for the researcher to identify and comprehend the limitations of the research. This research study also has some limitations and these limitations can influence the findings of the research study. ... In addition to this, if the researcher had collected primary data and used it to analyse the findings then it would have further improved the findings of the research study. So, these limitations have influenced the findings of the research study. 22 Background To The Problem Role And Importance Of Stock Market Stock market is considered as the main component of every economy for playing multi facet role. On one hand, stock markets are reflective of economic condition in terms of growth or otherwise; while on the other hand, stock markets contribute to the economic growth with attracting local and foreign investments. Stock markets are also important as they provide an important fund raising avenue to corporate; ensuring the prices of stocks based on their value while leading profitable companies to generate considerable returns (Lamin, 1997). Hence, indentifying and understanding the factors affecting stock market are of immense importance in understanding the current economic state as well as making prediction about future economic prospect of stock market and hence the country. Importance Of Saudi Stock Market Economic status of Saudi Arabia has been regarded as unknown to global financial crises that hit the world in the recent past. This aspect of the strengthened economy has been attributed to the many factors such as increased public investment by government etc. Hence attracted attentions to explore the various components of economy and stock market being one of them and hence, making it an important avenue to explore. It is also important to explore for the fact that Saudi Stock market is the biggest market based on market capitalization among GCC

Advantages and disadvantages of measures use to protect operating Research Paper

Advantages and disadvantages of measures use to protect operating system - Research Paper Example Operating system being a program is frequently attacked by viruses and therefore need protection so as to effectively and efficiently operate. There are several measures that are used to protect the operating system. However, the measures have certain disadvantages and disadvantages. This leads to differential in efficiency of measures used to protect the operating system. This paper discusses different measures used to protect the operating system and the advantages and disadvantages of each. It basically concentrates on three measures. Furthermore, it discusses ease of implementation and associated security management issues that need to be addressed. It also ranks the measures used to protect the operating system from the most effective to the least effective. Measures used to protect the operating system There are several measures that are used to protect the operating system. These are meant to deny unauthorized access to the system. They include use of strong password, protection of confidential information, making sure that the operating system and the virus protection are updated. It may also be use of supported and secure applications, wary of suspicious e-mails, storing of confidential information in HSU servers only, data should be provided wit a back up and it should be easily restored. Protection of information in all forms, learning security awareness and inquiring on matters that are not clear or certain. Measures used in protecting the operating system are aimed at protecting information from theft, natural disaster or corruption. It also ensures that information is only accessed by the authorized users. It also protects the operating system from collapse that may be caused by unauthorized persons. There are several measures that are used in protection of operating system as discussed above. However, the paper will focus on three measures only. They are use of a strong password, updating the operating system and the virus protection and data back up and ensuring they can be easily restored (Tatnall, Osorio, and Visscher, 2005, p 67). Use of strong password Operating systems are in most cases protected through passwords by most users. This is because this is one of the cheapest and easiest ways of protecting the operating system. Password may be in form of letters or numbers that are specifically known and recognized by the individual user. Furthermore, a password has to be unique to the user and unknown to unauthorized users. This ensures that unauthorized persons do not access data that they are not allowed to access by the respective persons. Password is widely used to protect the operating system by most users. However, it has both disadvantages and advantages (Meghanathan, 2011, p 79). Advantages of use of strong password (1) Guessing possibilit y; generally guessing a password is one of the most difficult things. This is because passwords are not usually displayed when entered. Passwords may be made long or short depending on the ability of the user to remember the password. This makes password difficult to guess and access the information without knowledge of the authorized user (Kim, and Adeli, 2010, pp 56-96). (2) Simple; passwords are simple and easy to generate. This is because anything may be used as password provided it falls within the accepted number of letters accepted by the system or that can be easily remembered by the user. Password may be words or letters or both. Furthermore, password may be in either upper case or lower case depending on the preference of the user (Kim, and Ad

KLSE Relationship with Inflation and Exchange Rates

KLSE Relationship with Inflation and Exchange Rates Capital market is a financial market which is for long term investment funds with the maturities greater than one year. In USA, capital market was controlled by security exchange and it was established in 1934. While in Malaysia, Bank Negara Malaysia (BNM) capital market has been developed since 1980s. It is a market where securities such as common stock, preferred stock and bonds are issued or traded. Companies, government and other organizations use capital market in order to raise funds for their operations. In other words, capital market helps organizations or institutions whether in public and private sector to gain capital. Besides that, capital market also traded an investment funds like debt, equity and mortgage loan. The central bank, Bank Negara Malaysia (BNM) also played a very important role in develop and care of this market. Kuala Lumpur Stock Exchange or more popular known as KLSE is the only one stock market in this country. All the listed securities in Malaysia are done by KLSE since the KLSE is a self-regulatory. Based on this study, KLSE Composite Index are represented by the stock market, money supply represented by M3, consumer price index represented the inflation rates and exchange rates represented by the Malaysian Ringgit (RM) against the US Dollar. In KLSE it has their own rules where buyers and sellers trade their transaction with each other. Since KLSE was established, there were ups and down movement of KLSE causes by many variables. To measure the performance of stock market, stock index is used. Besides, it can be used by all investors as a benchmark for them to evaluate the performance of holding shares. KLSE Composite Index is comprised of 100 companies listed on the exchange. The movement of stock prices can be triggered by the movement in financial sector in particular, that is the money supply. From this situation, there might be a relationship between KLSE Composite Index with money supply. A negative relationship between stock market and inflation in India and by previous study that also comes out with the same result might support the relationship between KLSE Composite Index with inflation rates. The motivation of this study is to find out whether there is a relationship between KLSE Composite Index with the level of money supply, inflation rates and exchange rates. Thus, if the Malaysian economic are facing with inflation, the stock price will be low and vice versa. 1.2 BACKGROUND OF THE STUDY Kuala Lumpur Stock Exchange (KLSE) is a formal stock market and it is widely constructed such as the composite index, EMAS index, and the various sector indices of tin, plantation, hotel, services, automobile, industrial and properties. KLSE is a self-regulatory organization and has emerged as one of the top performing bourses in developing countries in 1992. Based on the previous study, stock index is used to measure the performance of all stock market. KLSE calculate the index for each main sector traded however, mostly it will use the KLSE Composite Index because it will comprise the stocks traded on the KLSE. Since it is the only stock market in Malaysia, the monitoring and supervising do by Minister of Finance (MOF) and by Securities Commission (SC). KLSE Composite Index has been introduced on 1986 where one stock index was needed which can act to stock market performance and Malaysia economy. All the data that has been calculated electronically by KLSE can be taken by brokers companies and other customers at any time since the index is base on minute to minute. KLSE are really a well known stock market in the world. In 1970s and 1980s, KLSE had major development until it had become one of the largest market capitalization bourses in South-East Asia. However, when Singapore out from Malaysia in 1965, the Stock Exchange of Malaysia then, known as the Stock Exchange of Malaysia and Singapore. In spite of, in 1973 when the currency exchange between Malaysia and Singapore drop, again it changes the name and become Kuala Lumpur Stock Exchange and Stock Exchange of Singapore. In 2004, KLSE has changed it name and now it is known as Bursa Malaysia Berhad. This Bursa Malaysia focused to improve the products and services that they conduct. While in year 2005, Bursa Malaysia was listed on the Main Board of Bursa Malaysia Security Berhad. While in KLSE Composite Index, it has been accepted as a local stock market barometer when it was introduced in 1986. From the investor side, the major factors that determine the stock market are the climate of economic. This study investigates the impact of inflation rates, exchange rates and money supply towards stock market. Based on the previous study, there are several researches that have been handled to investigate this dependent variable and independent variables. 1.3 PROBLEM STATEMENT This study is to analyze whether there are significant relationship between KLSE Composite Index as a dependent variables with the money supply (M3), inflation rate and exchange rate as an independent variables. Malaysia stock market performance nowadays has staged at an encouraging recovery and gain in selected blue chips and this can be proved when in 2007, Malaysias economy placed the third largest economy in Southeast Asia. Malaysian stock market is able to provide profitability investment since strong domestic spending give benefit sector trading in Kuala Lumpur Stock Exchange (KLSE). The movement of KLSE Composite Index Inflation depends on many economic factors. For this study, researcher tries to figure out whether the economic factors could affect the performance of KLSE Composite Index. The economic factors for this study refer to money supply, inflation rates and exchange rates. Researcher also tries to figure out, whether the economic factors could be major elements of stock investments. Inflation is happen when a country has printed too much money which will increase the rate of consumer price and also will affect the cost of living. Good news for inflation is, the last report of inflation rate in Malaysia is about only two percent which is in November 2010. There was a negative relationship between inflation rate and stock price. This is because during inflation, cost of living and cost of production will increase and investor will not invest as before inflation happen. Exchange rate refers as a payment or change for person that want to do exchange in currency from one country to currency of other country. While for the study in relationship with exchange rate, it also showed a negative relationship. When there is an increment in level of currency, the charges for each exchange also will be affected. This means they have to change the currency in a large amount and it might affect their money. Therefore, the rational of doing this research is to find out, whether KLSE Composite Index are linked to economic condition in level of money supply, inflation rate and exchange rate? 1.4 OBJECTIVES OF THE STUDY This study is to figure out the relationship, movement and performance of dependent variable and independent variables. It has divided into two types of objectives. The objectives of this study are: 1.4.1 GENERAL OBJECTIVES The major objective of this study is to identify the relationship between dependent variable (KLSE-CI) and independent variables which are money supply, inflation rates and exchange rates in order to know whether there is any positive or negative relationship. 1.4.2 SPECIFIC OBJECTIVES To determine the relationship between inflation rates and KLSE Composite Index To determine the relationship between exchange rates and KLSE Composite Index To identify whether changes in variables are significant in affecting the movement of KLSE Composite Index 1.4.3 NULL HYPOTHESES (H0) There is no significant relationship between KLSE Composite Index (dependent variables) with money supply, inflation rates and exchange rates (independent variables). 1.5 SCOPE OF THE STUDY This research paper is to examine the relationship between Kuala Lumpur Stock Exchange Composite Index with level of money supply (M3), inflation rates (CPI) and exchange rates (Ringgit against US Dollar). The data for this study are gathered a period for 60 months (5 years) from 2006 to 2010. As been stated, the multiple regression analysis is used to measure the relationship between dependent variable and independent variables with monthly basis issued by Bank Negara Malaysia (Central Bank of Malaysia). 1.6 LIMITATION OF THE STUDY There are some limitations in conducting this research. The limitations that have been highlighted are as follow: Limited variables chosen make it difficult to interpret the relationship of dependent variable and independent variables and it been conclude as not really efficient. The data collected are mostly from internet, journals, newspapers and economic reports. Unreliable collected data will lead to unreliable results. The data for this study is gathered for monthly collective data which taken from Bank Negara Malaysia. Only three independent variables (money supply, inflation rates and exchange rates) have been chosen since there are too many internal factors that can classify the relationship and can affect KLSE Composite Index. This study cover period for 60 months (5 years) 2005 to 2010, are considered quite a short period compare to other research. The finding might not be perfectly accurate. For this research, only one country is focused which is Malaysia in order to limit the scope of research. The limitation for this research can be more reliable if the data taken based on weekly basis. Since best research comes with accurate data from weekly or daily basis data. 1.7 SIGNIFICANCE OF THE STUDY This study provides some useful information about the relationship between KLSE Composite Index with levels of inflation rates, exchange rates and money supply. The significant of this study is to build better understanding for readers and useful information to investors in making good investment decision. In addition, this study provides two important aspects in Malaysia economy (exchange rates and inflation rates) which can help companies in Malaysia to make decisions to issue their shares during the period of good economic and during the economic when it face with high inflation. Studies examining the relationship between money supply, inflation rates and exchange rates under Malaysian experiences are very limited, and it is hope from the available findings from this study, it can be use as a direction or reference for further research. CHAPTER 2 2.1 LITERATURE REVIEW According to Ooi Beng Hooi (2011), entitled The Relationship between KLCI and Ringgit Malaysia against US Dollar, he would like to explain the relationship between stock price and currency exchange rate. Researcher had done his research in four years starting from July 2005 until July 2009. Last, he comes out with the conclusion that state that a significance and strong relationship are explained in both KLCI and Ringgit Malaysia against US Dollar. The results of this research are really useful and in can be us as references for future study. According to Noor Azlinna Azizan and Hasyaliny Sulong (2011), entitled The Preparation Towards Asean Exchange Link between Malaysia Stock Market and Asia Countries Macroeconomics Variables Interdependency, they investigated the interaction between stock prices and macroeconomic variables in Asia countries include Malaysia, Indonesia, Singapore, Thailand, India, China, South Korea, Japan and Taiwan to view the interdependency of our stock market to other Asia countries macroeconomics variables. As a result, the researcher found out that only stock price and exchange rates have the most impact to our stock market. According to Oguzhan Aydamer (2009), with the topic of The Relationship Between Stock Prices and Exchange Rates Evidence From Turkey, he disclose the relationship between macroeconomics variables such as money supply, inflation rates, exchange rates, interest rates and stock price. This research is done for 8 years from February 2001 to January 2008 which focuses in one country that is Turkey. After all the research has been made, he then concludes that there is a negative relationship between exchange rates and all stock market indices. Besides, he also stated that other variables are also having negative relationship. According to Aisyah Abdul Rahman, Noor Zahirah Mohd Sidek and Fauziah Hanim Tafri (2009), a research on Macroeconomic Determinants of Malaysian Stock Market, are investigates the relations between selected macroeconomic variables and stock prices for the case of Malaysia. In addition, this research highlights that Malaysian stock market has weak interaction with money supply, exchange rates and interest rates as compared to the industrial production index. Sara Alataqi and Shokoofeh Fazel (2008), with topic Can Money Supply Predict Stock Price said that, when they refer to other previous researcher, most of them come with the same result which a positive casual relationship between money supply and stock prices is frequently hypothesized by some financial analysis. While for both of these researchers, Sara Alataqi and Shokoofeh Fazel theier belive are against with that statement. From the research they have made, the results that they get are totally different with the previous study. They have proved the reason and all the calculated data in their research. As a result, they strongly explained that there is a negative relationship from money supply to stock price and also a negative relationship from interest rate to stock price. Paritosh Kumar (2008), Is Indian Stock Market Related with Exchange Rate and Inflation, said that short-term foreign assets are fully exposed to exchange risk and exchange rates movement might affect the domestic companies. He also strongly believes that, a relationship between exchange rates and stock prices do exists but it just does not rule out any relationship between them. The end result for this research is he admit that there is a significance relationship even though it shows a negative sign which means to a negative relationship. According to Shamail Arzu (2008), Relationship Between Exchange Rates and Stock Prices comes to the conclusion which changes immediately in currency can absolutely affect ups and down in the stock index. Besides, he found that fluctuation in currency rates and movement in stock exchange is negatively will affect imports and exports in a country as well. Koffie Nassar (2005), Money Demand and Inflation said that by doing an analyzing data on the relationship between money supply, prices, inflation and income in Madagascar, it comes to the result which state that a negative correlation do exist and inflation expectations are largely determined by every past events. By controlling inflation in the short run, most of the broad money growth can be effective. It concludes that the variables are not strongly significance with the dependent variable. Ramin Cooper Maysami, Lee Chuin Howe and MohamadAtkin Hamzah (2004), Co-integration Evidence From Stock Exchange of Singapores All-S Stock Indices said that the objective of their research is to examine the relationship between selected macroeconomic variables with Singapore Exchange Stock Indices. The result highlighted that the majority of the macroeconomic variables includes broad money, exchange rates and other factors are much more seriously have strong casual relationship with Singapore Exchange Stock Indices. According to Chandran V.G.R and Norazman Shah Abd Rahman (2004), entitled Causality between Money Supply and Stock Prices: A Preliminary Investigation on Malaysian Stock Market, help the researchers in order to observed the relationship between money supply and stock prices. However, based on this study, researchers are using a simple bivariate Granger causality to test the Malaysian stock market. It shows that by predicting the changes in money supply, thus it may afford for better understanding in stock prices. Ming-Yu Cheng and Hui-Boon Tan (2002), entitled Inflation in Malaysia, sait that the objective of this study is to identify either it contribute to the significance relationship or not. Both researchers come to the same conclusion where based on the variables that they have been discussed, it still significance but it cannot be calssified as strong significance. According to Professor J.P.Gupta, Professor Alian Chevalier and Fran Sayekt (2000), entitled The Casuality between Interest Rate, Exchange Rate and Stock Price in Emerging Markets: The Case of the Jakarta Stock Exchange highlighted that stock market are very complex and it can be very sensitive to exchange rates and interest rates. Any movement in stock market will totally affect the economy. When interest rate and exchange rates are fluctuating, it will cause a bad effect. Other than that, they agreed that interest rate and stock prices are independent series for most of the time and it a same result found in exchange rates which have strong relationship with stock price. Both variables are significance relationship towards stock price. CHAPTER THREE RESEARCH METHODOLOGY To find the result on this research, there are certain methods that can be used in order to determine the information data of relationship between the given variables. In this study, to determine the relationship between dependent variables (KLSE Composite Index) with independent variables (Inflation Rates, Money Supply and Exchange Rates), an analysis named the Multiple Regression Analysis and Statistical Package of Social Science (SPSS) is applied in order to analyze data and enhance better understanding for the result. This study covers the period from 2005 to 2010. These methods are the most applicable because it will evaluate the relationship between the variables. SPSS is used to interpret a result in research while Multiple Regression Analysis is used to measure the linear association between dependent variable and independent variables 3.2 DATA SOURCES Most of the data for this study are come from the secondary data. The closing prices of KLSE Composite Index at the end of each period were gathered and the data were achieved from Quarterly closing prices KLSE Composite Index over the period 2005 to 2010. Data for the independent variables, which are money supply (M3), inflation rate (CPI) and exchange rate were achieved from Monthly Statistical Bulletin issued by Central Bank of Malaysia (Bank Negara Malaysia) from 2005 until 2010. 3.3 THE DATA Based on this study, all the relevant data are the secondary data. There are: KLSE COMPOSITE INDEX Kuala Lumpur Stock Exchange (KLSE), which now known as Bursa Malaysia Berhad is a place for traders to do trading. It contains many counters where each of the counters is for different companies. Besides, it is a self regulatory organization that administers the conduct of its members and also members of stock broking companies. The data for KLSE were gathered from KLSE Yahoo Finance. MONEY SUPPLY Money supply is a total supply of money circulation use in economy. There are several types of measurement in money supply which known as M1, M2 and M3. In this study, researcher focuses more on M3. M3 which refer to broad money are consists of foreign currency deposits, saving deposits, fixed deposits, negotiable certificate deposit (NIDS) and repurchase agreement (Repos). The foreign currency deposits refer to deposit of foreign currencies hold by commercial banks, merchant bank and non-bank Malaysian residents. In this research, the data were taken from Monthly Statistical Bulletin of Bank Negara Malaysia. INFLATION RATES In economics, the inflation rate is a measure of inflation. In this study, the data were obtained from Monthly Statistical Bulletin of Bank Negara Malaysia. EXCHANGE RATES Exchange rate or also known as foreign exchange rate shows the relationship of currency between one country with others. In this research, researcher focuses on Malaysian (MYR) currency with US currency (USD). Increase in Malaysia ringgit means a decrease in the cost of exchange of Malaysian currency with other currency. The data for exchange rate were taken from Monthly Statistical Bulletin of Bank Negara Malaysia. THEORETICAL FRAMEWORK In this study, KLSE Composite Index is chosen as dependent variable and money supply, inflation and exchange rates are classified as the independent variables. This means that the changes in KLSE Composite Index actually depend on the changes in money supply, inflation rates and exchange rates. The diagram of the relationship between both dependent variable and independent variables are being showed below: Money Supply Inflation Rates Kuala Lumpur Stock Exchange Composite Index (KLSE-CI) Exchange Rates Dependent Variable Independent Variable HYPOTHESES This study consists of Null Hypotheses (H0) and Alternative Hypotheses (H1). The hypotheses are as showed below: Hypotheses 1 H0: There is no relationship between money supply and KLSE Composite Index. H1: There is a relationship between money supply and KLSE Composite Index. Hypotheses 2 H0: There is no relationship between inflation rate and KLSE Composite Index. H1: There is a relationship between inflation rate and KLSE Composite Index. Hypotheses 3 H0: There is no relationship between exchange rate and KLSE Composite Index. H1: There is a between exchange rate and KLSE Composite Index. MULTIPLE REGRESSION ANALYSIS Data for this study were being analyzed by using the Statistical Package of Social Science (SPSS) Software. Hypotheses are used to determine the relationship between dependent variables (KLSE Composite Index) and independent variables (money supply-M3, inflation rate, exchange rate). In order to determine the influential of money supply, interest rate and exchange rate towards KLSE Composite Index, a Multiple Regression Analysis is applied. This multiple regression analysis used the independent variables to predict the dependent variables. The Estimated Regression Model as follows: Y = c + ÃŽ ²M + ÃŽ ²F + ÃŽ ²X + ÃŽ µ Where: Y = Dependent Variable (KLSE Composite Index) c = Constant Term ÃŽ ² = Regression Coefficient (Beta Measurement) M = Independent Variable (Money Supply-M3) F = Independent Variable (Inflation Rate) X = Independent Variable (Exchange Rate) ÃŽ µ = Error Term COEFFICIENT RELATIONSHIP Researcher used R2, T-Statistic and F-Statistic to determine the relationship between money supply, inflation rate and exchange rate towards KLSE Composite Index. COEFFICIENT OF DETERMINATION (R2) Coefficient of Determination or known as R2 is the most usually used in linear regression. R2 present how well the regression model describes changes in the value of dependent variable (Y) that can be explained by the independent variables. It shows how the line fits the data. The value of R2 is range from zero to one. The range indicates whether the correlation is strong or not. If R2 is zero, the equation explains that there is no relationship between the dependent variable and independent variables. While if the R2 is 1, the equation explains the relationship between dependent variable and independent variables are do exist. The higher the value of R2, the better the regression equation will be. When value of R2 is higher, the exploratory power will increase and be more accurate for forecasting purposes. An equation of R2: Total VariationR2 = Total Explain Variation This equation are used when researcher decide to calculate by manual. However, in this study, researcher has chosen Statistical Package of Social Science (SPSS) in order to calculate all the data that are gathered from Bank Negara Malaysia for the 60 months periods. The result of this R2 will be shows and explains in analysis and findings. It also will conclude whether all independent variables will explain the dependent variable or it will not. T – STATISTICS ( T-STAT) T- Statistic is used to decide whether to accept or reject the null hypotheses and also to analyze the significant relationship between dependent variable and independent variables. The value in t-table will be compared with the calculated t-value. T is critical value at certain significant T = (n – k – 1) n = number of observations / years k = number of independent variables If the computed t-statistic is greater than t-critical value at certain significant levels, thus reject H0. If the computed t-statistic is lower than t-critical value at certain significant levels, thus accept H0. T-Computed > T Critical Value, accept H1 and reject H0 T-Computed F – STATISTICS (F-STAT) Researcher is also using F-Statistic in order to know the consistency of overall regression equation. F-Statistic will evaluate the significant of each individual component of entire regression model. Equation of F-Statistic is as follows: F = Explained Variation / (k-1) Unexplained Variation / (n-k) Where: F = critical value k = number of independent variable n = number of observation If the computed F-Statistic is greater than F-Statistic value at certain significant level, then reject H0. It is a vice versa when the computed F-Statistic is lower than F-Statistic value at certain significant level, then accept H0. F-Computed > F-Critical Value, accept H1 F-Computed DURBIN WATSON STATISTIC Durbin Watson is used to test the presence of auto correlation. It is appears when time series data are used. Auto correlation gives a downward bias to the standard error of the estimated coefficient (t-value are exaggerated) and hence the estimated coefficient is concluded to be significant when in reality they are not. There are three possibilities where the auto correlation problem might arise: When the independent variables are duplicated When some of the independent variables are miss specified When some important variables are found missing in the model When successive residuals are positively auto correlated, the value of D will be approach zero. If the residual are not correlated, the value of D will be closed to zero. If there is a negative auto correlated, the value of D will be greater than two and could even approach its minimum value of four. Equation of Durbin Watson Statistic (D) is defining as: D = PEARSON CORRELATION ANALYSIS Pearson correlation analysis is a statistical analysis to see the direction and to describe the strength and significance of the relationships between the dependent variables and the independent variables. According to Pearson correlation analysis, the result can be ranked as follows: Less than 0.30 = Week Relationship 0.30 to 0.49 = Moderate Relationship 0.50 to 0.69 = Strong Relationship 0.70 to 0.99 = Very Strong Relationship 1.0 = Perfect Relationship CHAPTER FOUR ANALYSIS AND FINDINGS This chapter provides the findings which are obtained from the Statistical Package for Social Science (SPSS). Through SPSS, the relationship between Money Supply (M3), Inflation Rate and Exchange Rate with KLSE Composite Index can be identified. The researcher used regression in order to measure the linear relationship between dependent variable and independent variables. Coefficient of determinations (R2), T- statistic and F- statistic are the methodologies that being used by researcher to interpret the multiple regressions. All the data were calculated on monthly basis for 60 months period (5-year), which are from January 2006 to December 2010. Table1: Data gathered from monthly statistical bulletin BNM YEAR KLSE M3 INFLATION EXCHANGE Jan-06 914.0100 679276.3000 3.2500 3.7510 Feb-06 928.9400 686040.7000 3.2400 3.7135 Mar-06 926.6300 690830.2000 4.7600 3.6860 Apr-06 949.2300 697329.4000 4.5500 3.6255 May-06 927.7800 699037.4000 3.9100 3.6290 Jun-06 914.6900 700537.8000 3.9000 3.6750 Jul-06 935.8500 705585.5000 4.1100 3.6535 Aug-06 958.1200 717140.9000 3.2800 3.6770 Sep-06 967.5500 716265.6000 3.2700 3.6845 Oct-06 988.3000 725351.2000 3.0700 3.6480 Nov-06 1080.6600 737229.6000 2.9600 3.6180 Dec-06 1096.2400 760301.6000 3.0500 3.5315 Jan-07 1189.3500 776100.8000 3.2400 3.5015 Feb-07 1196.4500 789147.0000 3.1400 3.5060 Mar-07 1246.8700 789222.5000 1.5500 3.4560 Apr-07 1322.2500 796487.8000 1.5500 3.4230 May-07 1346.8900 799238.9000 1.4500 3.4045 Jun-07 1354.3800 788610.8000 1.4400 3.4545 Jul-07 1373.7100 799902.2000 1.6300 3.4540 Aug-07 1273.9300 801630.3000 1.9200 3.5035 Sep-07 1336.3000 804248.7000 1.8300 3.4170 Oct-07 1413.6500 807425.8000 1.9200 3.3418 Nov-07 1396.9800 808446.5000 2.3000 3.3585 Dec-07 1445.0300 832737.8000 2.3900 3.3065 Jan-08 1393.2500 867682.2000 2.2800 3.2360 Feb-08 1357.4000 876225.7000 2.6600 3.1890 Mar-08 1247.5200 884372.9000 2.7600 3.1875 Apr-08 1279.8600 893619.3000 3.0500 3.1580 May-08 1276.1000 898652.6000 3.8100 3.2435 Jun-08 1186.5700 899120.0000 7.6900 3.2665 Jul-08 1163.0900 912693.3000 8.5100 3.2630 Aug-08 1100.5000 904562.2000 8.5000 3.3895 Sep-08 1018.6800 912780.0000 8.2100 3.4575 Oct-08 863.6100 900442.6000 7.6300 3.5625 Nov-08 866.1400 909230.6000 5.7100 3.6175 Dec-08 876.7500 931864.7000 4.3900 3.4640 YEAR KLSE M3 INFLATION EXCHANGE Jan-09 884.4500 946005.1000 3.9100 3.6085 Feb-09 890.6700 944320.5000 3.7100 KLSE Relationship with Inflation and Exchange Rates KLSE Relationship with Inflation and Exchange Rates Capital market is a financial market which is for long term investment funds with the maturities greater than one year. In USA, capital market was controlled by security exchange and it was established in 1934. While in Malaysia, Bank Negara Malaysia (BNM) capital market has been developed since 1980s. It is a market where securities such as common stock, preferred stock and bonds are issued or traded. Companies, government and other organizations use capital market in order to raise funds for their operations. In other words, capital market helps organizations or institutions whether in public and private sector to gain capital. Besides that, capital market also traded an investment funds like debt, equity and mortgage loan. The central bank, Bank Negara Malaysia (BNM) also played a very important role in develop and care of this market. Kuala Lumpur Stock Exchange or more popular known as KLSE is the only one stock market in this country. All the listed securities in Malaysia are done by KLSE since the KLSE is a self-regulatory. Based on this study, KLSE Composite Index are represented by the stock market, money supply represented by M3, consumer price index represented the inflation rates and exchange rates represented by the Malaysian Ringgit (RM) against the US Dollar. In KLSE it has their own rules where buyers and sellers trade their transaction with each other. Since KLSE was established, there were ups and down movement of KLSE causes by many variables. To measure the performance of stock market, stock index is used. Besides, it can be used by all investors as a benchmark for them to evaluate the performance of holding shares. KLSE Composite Index is comprised of 100 companies listed on the exchange. The movement of stock prices can be triggered by the movement in financial sector in particular, that is the money supply. From this situation, there might be a relationship between KLSE Composite Index with money supply. A negative relationship between stock market and inflation in India and by previous study that also comes out with the same result might support the relationship between KLSE Composite Index with inflation rates. The motivation of this study is to find out whether there is a relationship between KLSE Composite Index with the level of money supply, inflation rates and exchange rates. Thus, if the Malaysian economic are facing with inflation, the stock price will be low and vice versa. 1.2 BACKGROUND OF THE STUDY Kuala Lumpur Stock Exchange (KLSE) is a formal stock market and it is widely constructed such as the composite index, EMAS index, and the various sector indices of tin, plantation, hotel, services, automobile, industrial and properties. KLSE is a self-regulatory organization and has emerged as one of the top performing bourses in developing countries in 1992. Based on the previous study, stock index is used to measure the performance of all stock market. KLSE calculate the index for each main sector traded however, mostly it will use the KLSE Composite Index because it will comprise the stocks traded on the KLSE. Since it is the only stock market in Malaysia, the monitoring and supervising do by Minister of Finance (MOF) and by Securities Commission (SC). KLSE Composite Index has been introduced on 1986 where one stock index was needed which can act to stock market performance and Malaysia economy. All the data that has been calculated electronically by KLSE can be taken by brokers companies and other customers at any time since the index is base on minute to minute. KLSE are really a well known stock market in the world. In 1970s and 1980s, KLSE had major development until it had become one of the largest market capitalization bourses in South-East Asia. However, when Singapore out from Malaysia in 1965, the Stock Exchange of Malaysia then, known as the Stock Exchange of Malaysia and Singapore. In spite of, in 1973 when the currency exchange between Malaysia and Singapore drop, again it changes the name and become Kuala Lumpur Stock Exchange and Stock Exchange of Singapore. In 2004, KLSE has changed it name and now it is known as Bursa Malaysia Berhad. This Bursa Malaysia focused to improve the products and services that they conduct. While in year 2005, Bursa Malaysia was listed on the Main Board of Bursa Malaysia Security Berhad. While in KLSE Composite Index, it has been accepted as a local stock market barometer when it was introduced in 1986. From the investor side, the major factors that determine the stock market are the climate of economic. This study investigates the impact of inflation rates, exchange rates and money supply towards stock market. Based on the previous study, there are several researches that have been handled to investigate this dependent variable and independent variables. 1.3 PROBLEM STATEMENT This study is to analyze whether there are significant relationship between KLSE Composite Index as a dependent variables with the money supply (M3), inflation rate and exchange rate as an independent variables. Malaysia stock market performance nowadays has staged at an encouraging recovery and gain in selected blue chips and this can be proved when in 2007, Malaysias economy placed the third largest economy in Southeast Asia. Malaysian stock market is able to provide profitability investment since strong domestic spending give benefit sector trading in Kuala Lumpur Stock Exchange (KLSE). The movement of KLSE Composite Index Inflation depends on many economic factors. For this study, researcher tries to figure out whether the economic factors could affect the performance of KLSE Composite Index. The economic factors for this study refer to money supply, inflation rates and exchange rates. Researcher also tries to figure out, whether the economic factors could be major elements of stock investments. Inflation is happen when a country has printed too much money which will increase the rate of consumer price and also will affect the cost of living. Good news for inflation is, the last report of inflation rate in Malaysia is about only two percent which is in November 2010. There was a negative relationship between inflation rate and stock price. This is because during inflation, cost of living and cost of production will increase and investor will not invest as before inflation happen. Exchange rate refers as a payment or change for person that want to do exchange in currency from one country to currency of other country. While for the study in relationship with exchange rate, it also showed a negative relationship. When there is an increment in level of currency, the charges for each exchange also will be affected. This means they have to change the currency in a large amount and it might affect their money. Therefore, the rational of doing this research is to find out, whether KLSE Composite Index are linked to economic condition in level of money supply, inflation rate and exchange rate? 1.4 OBJECTIVES OF THE STUDY This study is to figure out the relationship, movement and performance of dependent variable and independent variables. It has divided into two types of objectives. The objectives of this study are: 1.4.1 GENERAL OBJECTIVES The major objective of this study is to identify the relationship between dependent variable (KLSE-CI) and independent variables which are money supply, inflation rates and exchange rates in order to know whether there is any positive or negative relationship. 1.4.2 SPECIFIC OBJECTIVES To determine the relationship between inflation rates and KLSE Composite Index To determine the relationship between exchange rates and KLSE Composite Index To identify whether changes in variables are significant in affecting the movement of KLSE Composite Index 1.4.3 NULL HYPOTHESES (H0) There is no significant relationship between KLSE Composite Index (dependent variables) with money supply, inflation rates and exchange rates (independent variables). 1.5 SCOPE OF THE STUDY This research paper is to examine the relationship between Kuala Lumpur Stock Exchange Composite Index with level of money supply (M3), inflation rates (CPI) and exchange rates (Ringgit against US Dollar). The data for this study are gathered a period for 60 months (5 years) from 2006 to 2010. As been stated, the multiple regression analysis is used to measure the relationship between dependent variable and independent variables with monthly basis issued by Bank Negara Malaysia (Central Bank of Malaysia). 1.6 LIMITATION OF THE STUDY There are some limitations in conducting this research. The limitations that have been highlighted are as follow: Limited variables chosen make it difficult to interpret the relationship of dependent variable and independent variables and it been conclude as not really efficient. The data collected are mostly from internet, journals, newspapers and economic reports. Unreliable collected data will lead to unreliable results. The data for this study is gathered for monthly collective data which taken from Bank Negara Malaysia. Only three independent variables (money supply, inflation rates and exchange rates) have been chosen since there are too many internal factors that can classify the relationship and can affect KLSE Composite Index. This study cover period for 60 months (5 years) 2005 to 2010, are considered quite a short period compare to other research. The finding might not be perfectly accurate. For this research, only one country is focused which is Malaysia in order to limit the scope of research. The limitation for this research can be more reliable if the data taken based on weekly basis. Since best research comes with accurate data from weekly or daily basis data. 1.7 SIGNIFICANCE OF THE STUDY This study provides some useful information about the relationship between KLSE Composite Index with levels of inflation rates, exchange rates and money supply. The significant of this study is to build better understanding for readers and useful information to investors in making good investment decision. In addition, this study provides two important aspects in Malaysia economy (exchange rates and inflation rates) which can help companies in Malaysia to make decisions to issue their shares during the period of good economic and during the economic when it face with high inflation. Studies examining the relationship between money supply, inflation rates and exchange rates under Malaysian experiences are very limited, and it is hope from the available findings from this study, it can be use as a direction or reference for further research. CHAPTER 2 2.1 LITERATURE REVIEW According to Ooi Beng Hooi (2011), entitled The Relationship between KLCI and Ringgit Malaysia against US Dollar, he would like to explain the relationship between stock price and currency exchange rate. Researcher had done his research in four years starting from July 2005 until July 2009. Last, he comes out with the conclusion that state that a significance and strong relationship are explained in both KLCI and Ringgit Malaysia against US Dollar. The results of this research are really useful and in can be us as references for future study. According to Noor Azlinna Azizan and Hasyaliny Sulong (2011), entitled The Preparation Towards Asean Exchange Link between Malaysia Stock Market and Asia Countries Macroeconomics Variables Interdependency, they investigated the interaction between stock prices and macroeconomic variables in Asia countries include Malaysia, Indonesia, Singapore, Thailand, India, China, South Korea, Japan and Taiwan to view the interdependency of our stock market to other Asia countries macroeconomics variables. As a result, the researcher found out that only stock price and exchange rates have the most impact to our stock market. According to Oguzhan Aydamer (2009), with the topic of The Relationship Between Stock Prices and Exchange Rates Evidence From Turkey, he disclose the relationship between macroeconomics variables such as money supply, inflation rates, exchange rates, interest rates and stock price. This research is done for 8 years from February 2001 to January 2008 which focuses in one country that is Turkey. After all the research has been made, he then concludes that there is a negative relationship between exchange rates and all stock market indices. Besides, he also stated that other variables are also having negative relationship. According to Aisyah Abdul Rahman, Noor Zahirah Mohd Sidek and Fauziah Hanim Tafri (2009), a research on Macroeconomic Determinants of Malaysian Stock Market, are investigates the relations between selected macroeconomic variables and stock prices for the case of Malaysia. In addition, this research highlights that Malaysian stock market has weak interaction with money supply, exchange rates and interest rates as compared to the industrial production index. Sara Alataqi and Shokoofeh Fazel (2008), with topic Can Money Supply Predict Stock Price said that, when they refer to other previous researcher, most of them come with the same result which a positive casual relationship between money supply and stock prices is frequently hypothesized by some financial analysis. While for both of these researchers, Sara Alataqi and Shokoofeh Fazel theier belive are against with that statement. From the research they have made, the results that they get are totally different with the previous study. They have proved the reason and all the calculated data in their research. As a result, they strongly explained that there is a negative relationship from money supply to stock price and also a negative relationship from interest rate to stock price. Paritosh Kumar (2008), Is Indian Stock Market Related with Exchange Rate and Inflation, said that short-term foreign assets are fully exposed to exchange risk and exchange rates movement might affect the domestic companies. He also strongly believes that, a relationship between exchange rates and stock prices do exists but it just does not rule out any relationship between them. The end result for this research is he admit that there is a significance relationship even though it shows a negative sign which means to a negative relationship. According to Shamail Arzu (2008), Relationship Between Exchange Rates and Stock Prices comes to the conclusion which changes immediately in currency can absolutely affect ups and down in the stock index. Besides, he found that fluctuation in currency rates and movement in stock exchange is negatively will affect imports and exports in a country as well. Koffie Nassar (2005), Money Demand and Inflation said that by doing an analyzing data on the relationship between money supply, prices, inflation and income in Madagascar, it comes to the result which state that a negative correlation do exist and inflation expectations are largely determined by every past events. By controlling inflation in the short run, most of the broad money growth can be effective. It concludes that the variables are not strongly significance with the dependent variable. Ramin Cooper Maysami, Lee Chuin Howe and MohamadAtkin Hamzah (2004), Co-integration Evidence From Stock Exchange of Singapores All-S Stock Indices said that the objective of their research is to examine the relationship between selected macroeconomic variables with Singapore Exchange Stock Indices. The result highlighted that the majority of the macroeconomic variables includes broad money, exchange rates and other factors are much more seriously have strong casual relationship with Singapore Exchange Stock Indices. According to Chandran V.G.R and Norazman Shah Abd Rahman (2004), entitled Causality between Money Supply and Stock Prices: A Preliminary Investigation on Malaysian Stock Market, help the researchers in order to observed the relationship between money supply and stock prices. However, based on this study, researchers are using a simple bivariate Granger causality to test the Malaysian stock market. It shows that by predicting the changes in money supply, thus it may afford for better understanding in stock prices. Ming-Yu Cheng and Hui-Boon Tan (2002), entitled Inflation in Malaysia, sait that the objective of this study is to identify either it contribute to the significance relationship or not. Both researchers come to the same conclusion where based on the variables that they have been discussed, it still significance but it cannot be calssified as strong significance. According to Professor J.P.Gupta, Professor Alian Chevalier and Fran Sayekt (2000), entitled The Casuality between Interest Rate, Exchange Rate and Stock Price in Emerging Markets: The Case of the Jakarta Stock Exchange highlighted that stock market are very complex and it can be very sensitive to exchange rates and interest rates. Any movement in stock market will totally affect the economy. When interest rate and exchange rates are fluctuating, it will cause a bad effect. Other than that, they agreed that interest rate and stock prices are independent series for most of the time and it a same result found in exchange rates which have strong relationship with stock price. Both variables are significance relationship towards stock price. CHAPTER THREE RESEARCH METHODOLOGY To find the result on this research, there are certain methods that can be used in order to determine the information data of relationship between the given variables. In this study, to determine the relationship between dependent variables (KLSE Composite Index) with independent variables (Inflation Rates, Money Supply and Exchange Rates), an analysis named the Multiple Regression Analysis and Statistical Package of Social Science (SPSS) is applied in order to analyze data and enhance better understanding for the result. This study covers the period from 2005 to 2010. These methods are the most applicable because it will evaluate the relationship between the variables. SPSS is used to interpret a result in research while Multiple Regression Analysis is used to measure the linear association between dependent variable and independent variables 3.2 DATA SOURCES Most of the data for this study are come from the secondary data. The closing prices of KLSE Composite Index at the end of each period were gathered and the data were achieved from Quarterly closing prices KLSE Composite Index over the period 2005 to 2010. Data for the independent variables, which are money supply (M3), inflation rate (CPI) and exchange rate were achieved from Monthly Statistical Bulletin issued by Central Bank of Malaysia (Bank Negara Malaysia) from 2005 until 2010. 3.3 THE DATA Based on this study, all the relevant data are the secondary data. There are: KLSE COMPOSITE INDEX Kuala Lumpur Stock Exchange (KLSE), which now known as Bursa Malaysia Berhad is a place for traders to do trading. It contains many counters where each of the counters is for different companies. Besides, it is a self regulatory organization that administers the conduct of its members and also members of stock broking companies. The data for KLSE were gathered from KLSE Yahoo Finance. MONEY SUPPLY Money supply is a total supply of money circulation use in economy. There are several types of measurement in money supply which known as M1, M2 and M3. In this study, researcher focuses more on M3. M3 which refer to broad money are consists of foreign currency deposits, saving deposits, fixed deposits, negotiable certificate deposit (NIDS) and repurchase agreement (Repos). The foreign currency deposits refer to deposit of foreign currencies hold by commercial banks, merchant bank and non-bank Malaysian residents. In this research, the data were taken from Monthly Statistical Bulletin of Bank Negara Malaysia. INFLATION RATES In economics, the inflation rate is a measure of inflation. In this study, the data were obtained from Monthly Statistical Bulletin of Bank Negara Malaysia. EXCHANGE RATES Exchange rate or also known as foreign exchange rate shows the relationship of currency between one country with others. In this research, researcher focuses on Malaysian (MYR) currency with US currency (USD). Increase in Malaysia ringgit means a decrease in the cost of exchange of Malaysian currency with other currency. The data for exchange rate were taken from Monthly Statistical Bulletin of Bank Negara Malaysia. THEORETICAL FRAMEWORK In this study, KLSE Composite Index is chosen as dependent variable and money supply, inflation and exchange rates are classified as the independent variables. This means that the changes in KLSE Composite Index actually depend on the changes in money supply, inflation rates and exchange rates. The diagram of the relationship between both dependent variable and independent variables are being showed below: Money Supply Inflation Rates Kuala Lumpur Stock Exchange Composite Index (KLSE-CI) Exchange Rates Dependent Variable Independent Variable HYPOTHESES This study consists of Null Hypotheses (H0) and Alternative Hypotheses (H1). The hypotheses are as showed below: Hypotheses 1 H0: There is no relationship between money supply and KLSE Composite Index. H1: There is a relationship between money supply and KLSE Composite Index. Hypotheses 2 H0: There is no relationship between inflation rate and KLSE Composite Index. H1: There is a relationship between inflation rate and KLSE Composite Index. Hypotheses 3 H0: There is no relationship between exchange rate and KLSE Composite Index. H1: There is a between exchange rate and KLSE Composite Index. MULTIPLE REGRESSION ANALYSIS Data for this study were being analyzed by using the Statistical Package of Social Science (SPSS) Software. Hypotheses are used to determine the relationship between dependent variables (KLSE Composite Index) and independent variables (money supply-M3, inflation rate, exchange rate). In order to determine the influential of money supply, interest rate and exchange rate towards KLSE Composite Index, a Multiple Regression Analysis is applied. This multiple regression analysis used the independent variables to predict the dependent variables. The Estimated Regression Model as follows: Y = c + ÃŽ ²M + ÃŽ ²F + ÃŽ ²X + ÃŽ µ Where: Y = Dependent Variable (KLSE Composite Index) c = Constant Term ÃŽ ² = Regression Coefficient (Beta Measurement) M = Independent Variable (Money Supply-M3) F = Independent Variable (Inflation Rate) X = Independent Variable (Exchange Rate) ÃŽ µ = Error Term COEFFICIENT RELATIONSHIP Researcher used R2, T-Statistic and F-Statistic to determine the relationship between money supply, inflation rate and exchange rate towards KLSE Composite Index. COEFFICIENT OF DETERMINATION (R2) Coefficient of Determination or known as R2 is the most usually used in linear regression. R2 present how well the regression model describes changes in the value of dependent variable (Y) that can be explained by the independent variables. It shows how the line fits the data. The value of R2 is range from zero to one. The range indicates whether the correlation is strong or not. If R2 is zero, the equation explains that there is no relationship between the dependent variable and independent variables. While if the R2 is 1, the equation explains the relationship between dependent variable and independent variables are do exist. The higher the value of R2, the better the regression equation will be. When value of R2 is higher, the exploratory power will increase and be more accurate for forecasting purposes. An equation of R2: Total VariationR2 = Total Explain Variation This equation are used when researcher decide to calculate by manual. However, in this study, researcher has chosen Statistical Package of Social Science (SPSS) in order to calculate all the data that are gathered from Bank Negara Malaysia for the 60 months periods. The result of this R2 will be shows and explains in analysis and findings. It also will conclude whether all independent variables will explain the dependent variable or it will not. T – STATISTICS ( T-STAT) T- Statistic is used to decide whether to accept or reject the null hypotheses and also to analyze the significant relationship between dependent variable and independent variables. The value in t-table will be compared with the calculated t-value. T is critical value at certain significant T = (n – k – 1) n = number of observations / years k = number of independent variables If the computed t-statistic is greater than t-critical value at certain significant levels, thus reject H0. If the computed t-statistic is lower than t-critical value at certain significant levels, thus accept H0. T-Computed > T Critical Value, accept H1 and reject H0 T-Computed F – STATISTICS (F-STAT) Researcher is also using F-Statistic in order to know the consistency of overall regression equation. F-Statistic will evaluate the significant of each individual component of entire regression model. Equation of F-Statistic is as follows: F = Explained Variation / (k-1) Unexplained Variation / (n-k) Where: F = critical value k = number of independent variable n = number of observation If the computed F-Statistic is greater than F-Statistic value at certain significant level, then reject H0. It is a vice versa when the computed F-Statistic is lower than F-Statistic value at certain significant level, then accept H0. F-Computed > F-Critical Value, accept H1 F-Computed DURBIN WATSON STATISTIC Durbin Watson is used to test the presence of auto correlation. It is appears when time series data are used. Auto correlation gives a downward bias to the standard error of the estimated coefficient (t-value are exaggerated) and hence the estimated coefficient is concluded to be significant when in reality they are not. There are three possibilities where the auto correlation problem might arise: When the independent variables are duplicated When some of the independent variables are miss specified When some important variables are found missing in the model When successive residuals are positively auto correlated, the value of D will be approach zero. If the residual are not correlated, the value of D will be closed to zero. If there is a negative auto correlated, the value of D will be greater than two and could even approach its minimum value of four. Equation of Durbin Watson Statistic (D) is defining as: D = PEARSON CORRELATION ANALYSIS Pearson correlation analysis is a statistical analysis to see the direction and to describe the strength and significance of the relationships between the dependent variables and the independent variables. According to Pearson correlation analysis, the result can be ranked as follows: Less than 0.30 = Week Relationship 0.30 to 0.49 = Moderate Relationship 0.50 to 0.69 = Strong Relationship 0.70 to 0.99 = Very Strong Relationship 1.0 = Perfect Relationship CHAPTER FOUR ANALYSIS AND FINDINGS This chapter provides the findings which are obtained from the Statistical Package for Social Science (SPSS). Through SPSS, the relationship between Money Supply (M3), Inflation Rate and Exchange Rate with KLSE Composite Index can be identified. The researcher used regression in order to measure the linear relationship between dependent variable and independent variables. Coefficient of determinations (R2), T- statistic and F- statistic are the methodologies that being used by researcher to interpret the multiple regressions. All the data were calculated on monthly basis for 60 months period (5-year), which are from January 2006 to December 2010. Table1: Data gathered from monthly statistical bulletin BNM YEAR KLSE M3 INFLATION EXCHANGE Jan-06 914.0100 679276.3000 3.2500 3.7510 Feb-06 928.9400 686040.7000 3.2400 3.7135 Mar-06 926.6300 690830.2000 4.7600 3.6860 Apr-06 949.2300 697329.4000 4.5500 3.6255 May-06 927.7800 699037.4000 3.9100 3.6290 Jun-06 914.6900 700537.8000 3.9000 3.6750 Jul-06 935.8500 705585.5000 4.1100 3.6535 Aug-06 958.1200 717140.9000 3.2800 3.6770 Sep-06 967.5500 716265.6000 3.2700 3.6845 Oct-06 988.3000 725351.2000 3.0700 3.6480 Nov-06 1080.6600 737229.6000 2.9600 3.6180 Dec-06 1096.2400 760301.6000 3.0500 3.5315 Jan-07 1189.3500 776100.8000 3.2400 3.5015 Feb-07 1196.4500 789147.0000 3.1400 3.5060 Mar-07 1246.8700 789222.5000 1.5500 3.4560 Apr-07 1322.2500 796487.8000 1.5500 3.4230 May-07 1346.8900 799238.9000 1.4500 3.4045 Jun-07 1354.3800 788610.8000 1.4400 3.4545 Jul-07 1373.7100 799902.2000 1.6300 3.4540 Aug-07 1273.9300 801630.3000 1.9200 3.5035 Sep-07 1336.3000 804248.7000 1.8300 3.4170 Oct-07 1413.6500 807425.8000 1.9200 3.3418 Nov-07 1396.9800 808446.5000 2.3000 3.3585 Dec-07 1445.0300 832737.8000 2.3900 3.3065 Jan-08 1393.2500 867682.2000 2.2800 3.2360 Feb-08 1357.4000 876225.7000 2.6600 3.1890 Mar-08 1247.5200 884372.9000 2.7600 3.1875 Apr-08 1279.8600 893619.3000 3.0500 3.1580 May-08 1276.1000 898652.6000 3.8100 3.2435 Jun-08 1186.5700 899120.0000 7.6900 3.2665 Jul-08 1163.0900 912693.3000 8.5100 3.2630 Aug-08 1100.5000 904562.2000 8.5000 3.3895 Sep-08 1018.6800 912780.0000 8.2100 3.4575 Oct-08 863.6100 900442.6000 7.6300 3.5625 Nov-08 866.1400 909230.6000 5.7100 3.6175 Dec-08 876.7500 931864.7000 4.3900 3.4640 YEAR KLSE M3 INFLATION EXCHANGE Jan-09 884.4500 946005.1000 3.9100 3.6085 Feb-09 890.6700 944320.5000 3.7100

Free Siddhartha Essays: Significance of the River :: Hesse Siddhartha Essays

The Significance of the River in Siddhartha In the book Siddhartha by Hermann Hesse the significance of the river is displayed throughout the experiences that Siddhartha has next to the river and the things that by listening to the sound he comes to understand. Siddhartha is learning something from the moment he rides the ferry to the time when Govinda lays on the ground with tears flowing uncontrollably. Siddhartha admits to having no money to pay for the voyage, but the Ferryman says that friendship is payment enough, and takes him into town. After leaving town, Siddhartha returns to the river where had met the Ferryman earlier. Intrigued by the river's beauty and silent wisdom, Siddhartha decides to stay by the river. Siddhartha soon meets the Ferryman Vasuveda, the same man who took him across the river earlier. Siddhartha offers to be Vasuveda's apprentice, an offer that the Ferryman graciously accepts. The two grow together as Siddhartha begins to learn the river's wisdom, and soon Siddhartha begins to emulate Vasuveda's demeanor, expressing a contented peace in the routine of daily life. Years pass. One day, the two Ferrymen hear that the Buddha is dying. Kamala, on hearing the news as well, travels with her son to be near Goatama. As she passes near the river, she is bitten by a snake and dies, but not before Vasuveda takes her to Siddhartha. After Kamala dies, Siddhartha keeps his son with him by the river. The boy, though, refuses to accept Siddhartha as his father and consequently does nothing he is told. Many months pass, but the boy remains intransigent. Eventually the boy runs away. Vasuveda tells Siddhartha to let him go, but Siddhartha follows him. Upon reaching the town, Siddhartha recalls his own experiences there and admits to himself what he knew all along, that he could not help the boy. Siddhartha feels a great sorrow at this loss, and the happiness he had known as a Ferryman leaves him. Vasuveda soon arrives and leads the despondent Siddhartha to back to the river. The pain of losing his son was long lasting for Siddhartha. It enabled him, however, to identify with ordinary people more than ever before. Though Siddhartha was beginning to understand what wisdom really is, the thought of son did not leave him. One day he sets off in search of his son, but stops as he heard the river laughing at him. Free Siddhartha Essays: Significance of the River :: Hesse Siddhartha Essays The Significance of the River in Siddhartha In the book Siddhartha by Hermann Hesse the significance of the river is displayed throughout the experiences that Siddhartha has next to the river and the things that by listening to the sound he comes to understand. Siddhartha is learning something from the moment he rides the ferry to the time when Govinda lays on the ground with tears flowing uncontrollably. Siddhartha admits to having no money to pay for the voyage, but the Ferryman says that friendship is payment enough, and takes him into town. After leaving town, Siddhartha returns to the river where had met the Ferryman earlier. Intrigued by the river's beauty and silent wisdom, Siddhartha decides to stay by the river. Siddhartha soon meets the Ferryman Vasuveda, the same man who took him across the river earlier. Siddhartha offers to be Vasuveda's apprentice, an offer that the Ferryman graciously accepts. The two grow together as Siddhartha begins to learn the river's wisdom, and soon Siddhartha begins to emulate Vasuveda's demeanor, expressing a contented peace in the routine of daily life. Years pass. One day, the two Ferrymen hear that the Buddha is dying. Kamala, on hearing the news as well, travels with her son to be near Goatama. As she passes near the river, she is bitten by a snake and dies, but not before Vasuveda takes her to Siddhartha. After Kamala dies, Siddhartha keeps his son with him by the river. The boy, though, refuses to accept Siddhartha as his father and consequently does nothing he is told. Many months pass, but the boy remains intransigent. Eventually the boy runs away. Vasuveda tells Siddhartha to let him go, but Siddhartha follows him. Upon reaching the town, Siddhartha recalls his own experiences there and admits to himself what he knew all along, that he could not help the boy. Siddhartha feels a great sorrow at this loss, and the happiness he had known as a Ferryman leaves him. Vasuveda soon arrives and leads the despondent Siddhartha to back to the river. The pain of losing his son was long lasting for Siddhartha. It enabled him, however, to identify with ordinary people more than ever before. Though Siddhartha was beginning to understand what wisdom really is, the thought of son did not leave him. One day he sets off in search of his son, but stops as he heard the river laughing at him.

Healthcare & Education

What are some of the barriers and limitations to the transition from one level of care to another? Successful transition of patients from one care level to another is normal and of great importance. Patients who receive good aftercare after inpatient treatment come out much stronger and with low rates of readmission. However in many cases this is not the case hence posing the patients to health risk.Some of the barriers and limits to these transitions include financial constrains, low levels of knowledge and lack of adequate advice to the patients by the health professionals.Ignorance on the side of the people or the professionals also plays a big role. Education and creation of awareness to the general public on the importance of this transition is paramount in that it reduces the risks involved at the various levels (Holloway, 2008). Lack of a clear policy on ways to improve care such as transition care support and voluntary sharing of information on the issue is big obstacle to su ccessful care transition. For elderly, care transitions can usually lead to medication related complications and significantly reduced life span or quality.These calls for devoted efforts by the relevant parties to develop and put in place the necessary tools and initiatives to ensure improved transition. It should be noted that the impact of human error in medicine is unclear since the risk in the health care are based on the disease itself, the desired medicine and the way of medication (Holloway, 2008). This means that transition with medication to be administered without clear guideline may create a bigger problem. The transition problems call for well structured aftercare sessions to refer patients to.Since the human health is always at risk, it is important to ensure that patients actively engage in any prescribed treatment. This include making sure they are entered into the right level of treatment and equipped with the necessary information useful during treatment to ensure motivation and hence avoid relapse. Successful transition to care is the first step towards good health and should always be emphasized. Reference Holloway, D. , (2008). Transitions from one Level of Care to Another. Retrieved on 30th July 2009 from, http://cnx. org/content/m12716/latest/

Free Essays on Hammuravi

Daisy Miller In the story â€Å"Daisy Miller†, Henry James gives his readers the opportunity to look at the different perceptions that individuals can have of one another. These perceptions are often based solely on ones own value system, which are instilled every individual from birth. Miss Miller’s travel throughout Europe demonstrates the ideals of one country and how they contrast with those of another. She is perceived as being very flirtatious by the European’s and is labeled as an outcast. While In Switzerland Miss Miller meets a man named Winterbourne. His aunt of his newly found friend continually warns Winterbourne, brought up by a socially elite group. Mrs. Costello, Winterbournes aunt does not accept this flirtatious behavior of Miss Miller and actually refuses to meet her. Winterbourne’s views were quite different from his aunt due to his â€Å"old attachment from the little metropolis of Calvinism, he had been put to school there as a boy, and he had afterwards gone to college there-circumstances which had led to his forming a great many youthful friendships. Winterbourne’s education and his progressive nature allowed him to continue his friendship with Miss Miller, a woman of whom he was very attracted to. He understood the norms and customs of European’s and there countries and while he followed many of them his ability to see the big pic ture allowed him to pursue different friendships, his most recent being Miss Miller. While Winterbourne was able to look past the views of many of the citizens of Europe he could not convince his aunt to do the same. Like Mrs. Costello, the Europeans continued to hold their perceptions of Miss Miller and constantly judged her actions. Not realizing her status in Europe she was not invited to many of the events and parties in which the society held. Ultimately creating her own unfavorable perceptions of the countries in Europe. The inability to see the larger socie... Free Essays on Hammuravi Free Essays on Hammuravi Daisy Miller In the story â€Å"Daisy Miller†, Henry James gives his readers the opportunity to look at the different perceptions that individuals can have of one another. These perceptions are often based solely on ones own value system, which are instilled every individual from birth. Miss Miller’s travel throughout Europe demonstrates the ideals of one country and how they contrast with those of another. She is perceived as being very flirtatious by the European’s and is labeled as an outcast. While In Switzerland Miss Miller meets a man named Winterbourne. His aunt of his newly found friend continually warns Winterbourne, brought up by a socially elite group. Mrs. Costello, Winterbournes aunt does not accept this flirtatious behavior of Miss Miller and actually refuses to meet her. Winterbourne’s views were quite different from his aunt due to his â€Å"old attachment from the little metropolis of Calvinism, he had been put to school there as a boy, and he had afterwards gone to college there-circumstances which had led to his forming a great many youthful friendships. Winterbourne’s education and his progressive nature allowed him to continue his friendship with Miss Miller, a woman of whom he was very attracted to. He understood the norms and customs of European’s and there countries and while he followed many of them his ability to see the big pic ture allowed him to pursue different friendships, his most recent being Miss Miller. While Winterbourne was able to look past the views of many of the citizens of Europe he could not convince his aunt to do the same. Like Mrs. Costello, the Europeans continued to hold their perceptions of Miss Miller and constantly judged her actions. Not realizing her status in Europe she was not invited to many of the events and parties in which the society held. Ultimately creating her own unfavorable perceptions of the countries in Europe. The inability to see the larger socie...

Contingency Theories of Organizations Essays

Contingency Theories of Organizations Essays Contingency Theories of Organizations Essay Contingency Theories of Organizations Essay Part 2 Ob: What is the nucleus statement of eventuality theories of organisations? Discuss giving illustrations from at least one such theory. Measure the claims of this theory and measure its relevancy for organisations today. Organizations operate in many different environments and it is critical to measure how they influence their constructions. Effective and efficient organizing has become progressively of import in the modern universe characterized by rapid alterations. Eventuality attacks emphasize that in order for organisations to win they must follow a construction suitable for the environment in which they operate. There are many signifiers of eventuality theory. In general, eventuality theories are a category of behavioural theory that claim that there is no best manner to form a corporation and the organisational construction of the company. An organisational or leading manner that is effectual in some state of affairss may non be successful in others. Therefore, the best manner of forming the company, is contingent upon the internal and external state of affairs of the company. External environments influence organisations in a varied figure of ways. Critical external factors include, but are non limited to, the size of the organisation, labour markets, handiness and cost of capital, rivals, governmental Torahs and policies, managerial premises about employees, schemes, engineerings used, etc. The chief thoughts of eventuality theory are: * There is no cosmopolitan or one best manner to pull off * The design of organisations and its subsystems must fit with the environment * Effective organisations non merely have a proper fit with the environment but besides between its subsystems * The demands of an organisation are better satisfied when it is decently designed and the direction manner is appropriate both to the undertakings undertaken and the nature of the work group. Several eventuality attacks were developed at the same time in the late sixtiess. The outgrowth of the theory was the consequence of unfavorable judgments of the classical theories such as Weber s bureaucratism ( Weber, 1946 ) and Taylor s scientific direction ( Taylor, 1911 ) which had failed because they neglected that direction manner and organisational construction were influenced by assorted facets of the environment: the eventuality factors. The eventuality attack originated with the work of Joan Woodward ( 1958 ) , who declared that successful organisations in different industries with different engineerings were characterized by different organisational constructions. In this essay I will discourse three influential eventuality theories, those of Burns and Stalker ( 1961 ) , Lawrence and Lorsch ( 1967 ) and Fiedler ( 1967 ) . Tom Burns and Graham Stalker in their 1961 book, The Management of Innovation studied about 20 Scots and British electronics companies runing in progressively competitory and advanced technological markets. Their findings demonstrated that organisations runing in stable environments are really different from those which have to confront a changing and dynamic environment. The writers have discovered that differences in the manner houses approached alteration and invention related to the values and mission of the houses. Nathan birnbaums and Stalker classified the houses into 2 classs on the footing of their managerial constructions and patterns: mechanistic and organic. The writers found that mechanistic organisations, besides called bureaucratisms, are suited for comparatively stable environmental conditions. Such organisations are clearly programmed, purely controlled and hierarchically structured. Often they do non hold mission and vision statements, and alternatively depend on established regulations for counsel, mensurating success by the grade to which staff conforms to treat and process. Organizational undertakings are typically broken down into specialised activities. Persons are responsible for their specific maps in a comparative isolation from the overall organisational end. The organic organisations are more likely to be under unstable environmental conditions. Organic organisations are orientated towards consequences, have a level organisation construction alternatively of a hierarchy, and small construction in footings of procedure and regulations. They focus on consequences and employees receive positive wagess for originative and matter-of-fact parts. Given these conditions it becomes necessary to reexamine and redefine the duties, methods, inter-role relationships, and even ends on a continual footing. Nathan birnbaums and Stalker emphasized that each system is appropriate under its ain specific conditions. Neither system was superior to the other under all state of affairss. Since the 1960s much of Hagiographas in organisation theories field is a changeless argument between the machine/organ analogies, and efforts to develop growing theoretical accounts of how simple mechanistic signifiers can turn into the more complex organic signifiers. Another important survey to show the relationships between environmental features and effectual organisational constructions was conducted by Paul Lawrence and Jay Lorsch ( 1967 ) . They studied ten US houses in three separate industries ( plastics, nutrient, containers ) that confronted changing grades of uncertainness, complexness and alteration. The research workers found that successful houses in each industry had a different grade of distinction. The houses runing in unsure, complex, quickly altering environments had more extremely differentiated internal constructions: gross revenues, production and R A ; D sections. Such organisations require the greater demand for suited mechanisms for incorporating and deciding struggles between scopes of sections. Successful houses in more homogenous and stable environment were more formalistic and hierarchal in their signifiers. Writers concluded that successful houses must hold internal constructions every bit complex as environments in which they operate. This seminal work of Lawrence and Lorsch refined the eventuality theory by showing that different markets and technological environments require different sorts of organisations, and that fractional monetary units or functional sections within an organisation might be managed in different ways, due to fluctuations ensuing from their sub-environments. Their position is ecological those organisations that can outdo adapt to the environment will last. Managerial leading has influenced organisational activities in many ways. These influences include actuating subsidiaries, budgeting scarce resources, and functioning as a beginning of communicating. Contingency theories of leading argue that no individual leading manner is effectual in all fortunes, but the leading manners are contingent on the organisational and situational context. Fred Fiedler s theory ( 1967 ) is the earliest and most extensively researched is besides known as eventuality theoretical account of leading effectivity. Fiedler s thoughts originated from trait and behavioural theoretical accounts by saying that public presentation of the group is dependent on the leader s psychological orientation and on three contextual variables: group atmosphere, undertaking construction, and leader s power place. The eventuality theoretical account underlines the importance of both the leader s personality and the state of affairs in which that leader operates. The first major factor in Fiedler s theory is known as the leading manner. This is the consistent system of interaction that takes topographic point between a leader and work group. In order to sort leading manners, Fiedler has developed an index called the Least-Preferred Coworker ( LPC ) graduated table. To acquire an LPC mark a leader is asked to believe of colleagues with whom he/she has of all time worked and take the 1 with whom the work was the most hard. Then this individual is rated on a figure of eight-point bipolar graduated tables ( friendly/unfriendly, hostile/supportive, etc. ) . The responses to these graduated tables are summed and averaged: a high LPC mark suggests that the leader has a human dealingss orientation, while a low LPC mark indicates a undertaking orientation. The 2nd major factor in Fiedler s theory is known as situational favourableness or environmental variable. This fundamentally is defined as the grade a state of affairs enables a leader to exercise influence over a group. Fiedler so extends his analysis by concentrating on three cardinal situational factors, which are leader-member, task construction and place power. For leader-member dealingss, Fiedler maintains that the leader will hold more influence if they maintain good relationships with group members who like, regard, and swear them, than if they do non. Fiedler explains that undertaking construction is the 2nd most of import factor in finding structural favourableness. He contends that extremely structured undertakings, which specify how a occupation is to be done in item provide a leader with more influences over group actions than do unstructured undertakings. Finally, as for place power, leads who have the power to engage and fire, subject and wages, have more power than those who do non. For illustration, the caput of a section has more power than a file clerk. By sorting a group harmonizing to three variables, it is possible to place eight different group state of affairss or leading manner. These eight different possible combinations were so classified as either undertaking orientation or relationship orientated. Several deductions can be derived from Fiedler s findings. First, it is non accurate to talk of effectual and uneffective leaders. Fiedler goes on by proposing that there are merely leader who perform better in some state of affairss, but non all state of affairss. Second, about anyone can be a leader by carefully choosing those state of affairss that match his or her leading manner. Last, the effectivity of a leader can be improved by planing the occupation to suit the director. For case, by increasing or diminishing a leader s place power, altering the construction of a undertaking, or act uponing leader-member dealingss, an organisation can change a state of affairs to better suit a leader s manner. The undermentioned facets can be considered as strengths of Fiedler s theory: it is prognostic and supported by a batch of empirical research, it does non necessitate that people be effectual in all state of affairss and provides a manner to measure leader manner that could be utile to an organisation. However among its failings are the fact that it is cumbrous to utilize, it does nt explicate what to make when there is a mismatch between manner and state of affairs and it does nt take into history situational variables, like preparation and experience, which besides have an impact in a leader s effectivity. Finally, there is some uncertainty whether the LPC is a true step of leading manner. In drumhead, the kernel of eventuality theory is that best patterns depend on the eventualities of the state of affairs. Contingency theory is frequently called the aˆ?it all dependsaˆ? theory, because when a eventuality theoretician is being asked for an reply, the typical response will be that it all depends. While this may sound simplistic, measuring the eventualities on which determinations depend can be a really complex. Eventuality theoreticians try to place and mensurate the conditions under which things will probably happen. Sing that organisations should achieve both external and internal tantrum to accomplish superior public presentation, at the same clip, the procedures of scheme preparation and execution are non dissociable activities ; there is a demand for an integrative attack that incorporates both schools of idea. The appropriate direction manner and organisational construction depend on the environmental context of the organisation concerned. The ability to pull off alteration is now recognized as a nucleus organisational competency. Mentions: 1. Fineman, S. , Sims, D. A ; Gabriel, Y. ( 2005 ) Forming and organisations, London, Sage. 2. Smith, M. J. ( 1984 ) . Eventuality regulations theory, context, and conformity behaviours. Human Communication Research, 10, 489-512. 3. Burns, T. , Stalker, M. ( 1961 ) . The Management of Innovation, 3rd Edition, 1994, Oxford University Press 4. Lawrence, P. R. , Lorsch, J. W. ( 1967 ) . Organization and Environment. Cambridge, MA: Harvard University Press. 5. Fiedler, F. E. ( 1964 ) . A Contingency Model of Leadership Effectiveness. Progresss in Experimental Social Psychology ( Vol.1 ) . 149-190. New York: Academic Press. Burnes, B. ( 1996 ) , No such thing as aˆÂ ¦ a aˆ?one best wayaˆ? to pull off organisational alteration. Management determination, Vol. 34, Issue 10, pp. 10-18