Conflict Family

Ordinary People by Judith Guest is the story of a dysfunctional family who relate to one another through a series of extensive defense mechanisms, i. e. an unconscious process whereby reality is distorted to reduce or prevent anxiety. The book opens with seventeen year old Conrad, son of upper middle-class Beth and Calvin Jarrett, home after eight months in a psychiatric hospital, there because he had attempted suicide by slashing his wrists. His mother is a meticulously orderly person who, Jared, through projection, feels despises him. She does all the right things; attending to Jared's physical needs, keeping a spotless home, plays golf and bridge with other women in her social circle, but, in her own words â€Å"is an emotional cripple†. Jared's father, raised in an orphanage, seems anxious to please everyone, a commonplace reaction of individuals who, as children, experienced parental indifference or inconsistency. Though a successful tax attorney, he is jumpy around Conrad, and! , according to his wife, drinks too many martinis. Conrad seems consumed with despair. A return to normalcy, school and home-life, appear to be more than Conrad can handle. Chalk-faced, hair-hacked Conrad seems bent on perpetuating the family myth that all is well in the world. His family, after all, â€Å"are people of good taste. They do not discuss a problem in the face of the problem. And, besides, there is no problem. † Yet, there is not one problem in this family but two – Conrad's suicide and the death by drowning of Conrad's older brother, Buck. Conrad eventually contacts a psychiatrist, Dr. Berger, because he feels the â€Å"air is full of flying glass† and wants to feel in control. Their initial sessions together frustrate the psychiatrist because of Conrad's inability to express his feelings. Berger cajoles him into expressing his emotions by saying, â€Å"That's what happens when you bury this junk, kiddo. It keeps resurfacing. Won't leave you alone. † Conrad's slow but steady journey towards healing seems partially the result of cathartic revelations which purge guilt feelings regarding his brother's death and his family's denial of that death, plus the â€Å"love of a good woman. Jeannine, who sings soprano to Conrad's tenor†¦ † There is no doubt that Conrad is consumed with guilt, â€Å"the feeling one has when one acts contrary to a role he has assumed while interacting with a significant person in his life,† This guilt engenders in Conrad feelings of low self esteem. Survivors of horrible tragedies, such as the Holocaust, frequently express similar feelings of worthlessness. In his book, â€Å"Against All Odds†, William Helmreich relates how one survivor articulates a feeling of abandonment. â€Å"Did I abandon them, or did they abandon me? † Conrad expresses a similar thought in remembering the sequence of events when the sailboat they were on turned over. Buck soothes Conrad saying, â€Å"Okay, okay. They'll be looking now, for sure, just hang on, don't get tired, promise? In an imagined conversation with his dead brother, Conrad asks, â€Å"‘Man, why'd you let go? ‘ ‘Because I got tired. ‘ ‘The hell! You never get tired, not before me, you don't! You tell me not to get tired, you tell me to hang on, and then you let go! ‘ ‘! I couldn't help it. Well, screw you, then! ‘† Conrad feels terrible anger with his brother, but cannot comfortably express that anger. His psychiatrist, after needling Conrad, asks, â€Å"Are you mad? When Conrad responds that he is not mad, the psychiatrist says, â€Å"Now that is a lie. You are mad as hell. † Conrad asserts that, â€Å"When you let yourself feel, all you feel is lousy. † When his psychiatrist questions him about his relationship with his mother, Calvin says, â€Å"My mother and I do not connect. Why should it bother me? My mother is a very private person. † This sort of response is called, in psychological literature, â€Å"rationalization†. We see Conrad's anger and aggression is displaced, i. e. vented on another, as when he physically attacked a schoolmate. Yet, he also turns his anger on himself and expresses in extreme and dangerous depression and guilt. â€Å"Guilt is a normal emotion felt by most people, but among survivors it takes on special meaning. Most feel guilty about the death of loved ones whom they feel they could have, or should have, saved. Some feel guilty about situations in which they behaved selfishly (Conrad held on to the boat even after his brother let go), even if there was no other way to survive. In answer to a query from his psychiatrist on when he last got really mad, Conrad responds, â€Å"When it comes, there's always too much of it. I don't know how to handle it. † When Conrad is finally able to express his anger, Berger, the psychiatrist says to Calvin, â€Å"Razoring is anger; self-mutilation is anger. So this is a good sign; turning his anger outward at last. † Because his family, and especially his mother, frowns upon public displays of emotion, Conrad keeps his feelings bottled up, which further contributes to depression. Encyclopedia Britannica, in explicating the dynamics of depression states, â€Å"Upon close study, the attacks on the self are revealed to be unconscious expressions of disappointment and anger toward another person, or even a circumstance†¦ deflected from their real direction onto the self. The aggression, therefore, directed toward the outside world is turned against the self. † The article further asserts that, â€Å"There are three cardinal psychodynamic considerations in depression: (1) a deep sense of loss of what is loved or valued, which may be a person, a thing or even liberty; (2) a conflict of mixed feelings of love and hatred toward what is loved or highly valued; (3) a heightened overcritical concern with the self. † Conrad's parents are also busily engaged in the business of denial. Calvin, Conrad's father, says, â€Å"Don't worry. Everything is all right. By his own admission, he drinks too much, â€Å"because drinking helps†¦ , deadening the pain†. Calvin cannot tolerate conflict. Things must go smoothly. â€Å"Everything is jello and pudding with you, Dad. † Calvin, the orphan says, â€Å"Grief is ugly. It is something to be afraid of, to get rid of†. â€Å"Safety and order. Definitely the priorities of his life. He constantly questions himself as to whether or not he is a good father. â€Å"What is fatherhood, anyway? † Beth, Conrad's mother, is very self-possessed. She appears to have a highly developed super-ego, that part of an individual's personality which is â€Å"moralistic†¦ , meeting the demands of social convention, which can be irrational in requiring certain behaviors in spite of reason, convenience and common sense†. She is furthermore, a perfectionist. â€Å"Everything had to be perfect, never mind the impossible hardship it worked on her, on them all. † Conrad is not unlike his mother. He is an overachiever, an â€Å"A† student, on the swim team and a list-maker. His father tells the psychiatrist, â€Å"I see her not being able to forgive him. For surviving, maybe. No, that's not it, for being too much like her. † A psychoanalyst might call her anal retentive. Someone who is â€Å"fixated symbolically in orderliness and a tendency toward perfectionism†. â€Å"Excessive self-control, not expressing feelings, guards against anxiety by controlling any expression of emotion and denying emotional investment in a t! hing or person. â€Å"She had not cried at the funeral†¦. She and Conrad had been strong and calm throughout. The message of the book is contained in Berger's glib saying that, â€Å"People who keep stiff upper lips find that it's damn hard to smile†. We see Conrad moving toward recovery and the successful management of his stage of development, as articulated by Erikson, â€Å"intimacy vs. isolation†. At story end, his father is more open with Conrad, moving closer to him, while his mother goes off on her own to work out her issues. Both trying to realize congruence in their development stage (Erikson), â€Å"ego integrity vs. despair†.

Jack Greenberg, Inc.

Family owned business is a business that is owned by one family, most of the shareholders are from the same family. One of the major problems in this type of business is a conflict in interests among the family’s member. The auditor should be careful and observe the type of the relationship among the family’s member. There should be a written agreement to specify rights, duties, and obligations for each member, the auditor should read those documents for further information.One issue that faced the auditor is to understand the attitude of each member, the risk of manipulating facts can be existed due to the close relationship. In the case of Jack Greenberg, the son has manipulated the numbers in the record for his father’s sake and no one would be able to prevent him since he is one of the owners. The possibility of hiding facts is high in this kind of business because of the close relationship among the family’s member.I believe the family owned business demands more effort from the auditor to check and discover misstatements. 2. For the prepaid inventory I would recommend that the auditor should focus on the following objectives; existing, occurrence, valuation and allocation, completeness, and right and obligation. Prepaid items represent a complete listing of the company’s costs that are allocable to future periods and that can reasonably be expected to be realized through future operations.As for the merchandise, the auditor should physically observe the inventory to verify the amount recorded, the most important part of the observation of inventory is to determine whether the physical count is being taken in accordance with the client’s instructions. The audit objective related to merchandise are; * Existence: Inventory as recorded on tags exists. * Completeness: Existing inventory is counted and tagged. * Accuracy: Inventory is counted accurately. * Realizable value: Obsolete and unusable inventory items are excl uded or noted. Rights: The client has rights to inventory recorded on tags. * Classification: Inventory is classified correctly on the tags. * Cutoff: Transactions are recorded in the proper period. 3. Internal evidence is created, used, and retained within the client’s organization and without the help of outside parties for example; sales invoices duplicate copy, employees’ time reports, inventory reports, and purchase requisitions. On the other hand, external evidence originates outside the client’s organization for example; bank statement.This type of documents generally prepared in the ordinary course of business activities and form part of its records whether of accounting or non-accounting nature. Sometimes obtained directly from source such as bank, debtors, and creditors confirmations. External evidence and the internally generated evidence circulated externally are more reliable than the internal evidence. 4. Walkthrough is simply the act of tracing a transaction through organizational records and procedures, a commonsense approach to learning how a process works.The purpose of walkthrough procedure is to evaluate the reliability of the client's accounting system. The auditor looks at the supporting documentation for a transaction from its starting point and then proceeds to examine the accounting system steps thereafter until ultimate disposition of the item. The walk-through examination is one of the tests that is important for the auditor to obtain an understanding of the client’s business. The U. S.Public Company Accounting Oversight Board (PCAOB) has drawn attention to a fundamental audit procedures, one that is so common that auditors may take it for granted is the walkthrough procedure. Most auditors traditionally have viewed walkthroughs as the procedure of choice when attempting to develop an understanding of key processes and internal controls of a client. Now, walkthroughs are required when certifying financial reporting controls under Section 404 of the U. S. Sarbanes-Oxley Act of 2002. As it relates to Audit Standard No. from the PCAOB, the standard includes a requirement that the auditor must perform a walkthrough for each of the company’s significant processes. 5. I would highly recommend that the auditor should extend the scope of substantive test and increase the sample size in order to discover other misstatements that existed. The auditor also could trace documents to testify whether the inventory has been listed accurately. Analytical procedure and test of detail as part of substantive test to find the relationship between the inventory account and other accounts in the financial statements.Cut off test with physical observation to the inventory would help to discover fraud and any misstatement in the inventory account. In addition, the auditor may use confirmation to confirm amount listed in the record with third parties. 6. I think the audit firm responsibility is to info rm the client that there are weaknesses in their current internal control however the audit firm does not have the right to force the client to do some action regarding those deficiencies. The auditor should try to persuade the client and reveal the risks of having such a weak internal control system.In case the client did not cooperate with the auditor, the auditor should resign from performing audit services to the client; he or she should disclose that decision. The general Accepted Auditing Standards -AU 150 paragraph 2- require the auditor to maintain independence as a general rule, the auditor must also exercise due professional care in the performance of the audit and the preparation of the report therefore, in order to maintain the auditor independence, the auditor should have his or her own voice and not just follow the client’s rule.

Managing Employee Performance Essay

In the article under review, Hoogenboezem and Hoogenboezem (2005) discuss the introduction of performance measurement in the Dutch Police service since 2002. This phenomenon followed radical changes in Dutch political organization largely precipitated by the rise of politician Pim Fortuyn who had government performance on top of his political agenda. The Dutch government, like most of its Western counterparts had been cited for underperformance with regards to public service delivery. The government had frequently shifted this blame on non-performance of its civil servants. This was taken as a key political agenda in the run up to the 2002 elections in the Netherlands. Fortuyn’s argument was that government had refused to exercise control by holding public sector managers accountable and setting targets for them. The authors examine the Dutch political system. Traditionally, the system has thrived on consensus building. This had affected efficiency in performance within the public sector which gave rise to a ‘’political attention for performance measurement’’ (2005:571). They also investigate the collapse of the Dutch pillars of society, the nature of policing and the community policing approach in the Netherlands and conclude that performance measurement will eventually become ineffective as a performance enhancing instrument. This they ascribe to the fact that the whole process of targeting in the Dutch Police administration does not have a firm philosophical base. It is based on loose arguments of a loud politician and an electorate that wanted change at all cost. Importing management practices like performance targeting from the private sector to the public sector comes with complexities (Adcroft and Willis, 2005). This is manifest in the struggle to cope with t argets by the Dutch Police. Effect of Targets on Performance Measurement The consequence of the political waves in the Netherlands in 2002 was the setting of quantitative law enforcement targets for political heads of the Police force. Specific figures for the number of suspects to be prosecuted for public violence and juvenile crime, for example were set. It appears to me that the targets are the result of undue political pressure rather than a carefully thought through system of performance management. Performance management systems are implemented to produce tangible results for organizations based on their mission statement and strategic objectives. Performance measurement is only one component of a performance management system. There is no indication, at least from the journal article, that the due processes for establishing a performance management process, namely prerequisites, planning, execution, assessment, review and renewal/recontracting (Agunis, 2009:32) are followed in the Dutch Police example. The effect is the general cynicism towards tar geting by the Police and the public. Again, employees react differently to performance measurement. This requires that organizations must be able to predict employee reaction to targets and factor these reactions into the management process (Selden and Sowa, 2011). Feedback from the parties involved in the Dutch Police targeting differs hugely. Whilst one group (senior management) appear enthused about the targets, another group (the operational policemen) are aggrieved. This suggests lack of consultation of all stakeholders which is a key component to successful performance management; especially in the setting of targets and measurement criteria. The essence of policing is to make society safer. Any ‘’†¦system that will not make the Netherlands safer†¦Ã¢â‚¬â„¢Ã¢â‚¬â„¢ (Hoogenboezem and Hoogenboezem, 2005:573) is doomed to fail ab initio. Such a system lacks strategic congruence and becomes a public relations gimmick. This is the position expressed by some in Police leadership. However another group are inspired about getting more money ((Hoogenboezem and Hoogenboezem, 2005:573). The ‘’more money’’ factor will tend to obscure an impartial assessment of the scheme. This is also the case with Police chiefs expressing some support for targeting, with targets linked to reward in their case. Policemen at the operational level have problems with the targets because they make their jobs a routine; leaving them with few choices in the maintenance of law and order. The exercise of discretion appears to be of intrinsic value to the operational policeman. Where targets have placed a strict regiment on the use of discretion the intrinsic motivation in being a Policeman gets lost. An unmotivated Policeman could be a danger to society. Although officers in lower and middle management appear inspired about targets and their alignment to rewards, this is not necessarily a motivator for performance. Job enrichment and job enlargement have been recognised as essential motivators in the not-for-profit organizations (Selden and Sowa, 2011) and the Dutch politicians must recognise this. Any perception of unfairness in the Performance management system could lead to decreased employee commitment (Aguinis, 2009) and eventually undermine the whole system. In this regard the conclusion of the authors that the performance measurement in the Netherlands Police is a mixture of cynicism and a public relations ritual of signing contracts is validated. This is largely the result of it being a knee jerk reaction not involving employees in the determination of the entire process. Employee involvement helps translate targets into operational language that is understood by all participants in the process (Chamberlain, 2011) and bought into. Employee buy-in is essential for the success of every performance management system. Worst still is the fact that the new requirements of the Dutch Policeman under the present circumstance has not come with any training package. It is also not evident that systems of recruitment and selection have been amended to reflect the expected outcome in view of the radical changes in nature of the job. Conclusion In my opinion performance of Policemen should not be measured against outcomes. It should be exhibited in various agreed behaviours and programmes. Take the example of Washington State in the US where pperformance data indicated an increase in motorcycle accidents. Several Agencies like the Department of Licensing, Washington State Patrol, Traffic Safety Commission and the Department of Transportation, worked together to provide more education for motorcycle operators and manufacturers as well as stricter licensing. These measures (programs and behaviours) resulted in fewer accidents (http://www.agacgfm.org/research/downloads/CPAGNo23.pdf). The case for quantifying performance outcomes for the public sector does not have much merit in my opinion. References Aguinis, H. (2009) Performance management. 2nd ed. Upper Saddle River, NJ: Pearson/Prentice Hall. Chamberlain, L (2011). ‘Does your performance management need a tune-up?’ Strategic Finance. November. pp.18-20. Available at: http://content.ebscohost.com.ezproxy.liv.ac.uk/pdf27_28/pdf/2011/5Y6/01Nov11/67179179.pdf?T=P&P=AN&K=67179179&S=R&D=buh&EbscoContent=dGJyMNLe80SeprY4wtvhOLCmr0mep69Ssam4SrWWxWXS&ContentCustomer=dGJyMOzprkmvqLJPuePfgeyx44Dt6fIA . Accessed on: 7 December 2011) Hoogenboezem, J. A., & Hoogenboezem, D. (2005) ‘Coping with targets: performance measurement in The Netherlands police’, International Journal of Productivity and Performance Management, 54 (7), pp. 568–578. http://sfx7.exlibrisgroup.com.ezproxy.liv.ac.uk/lpu?title=International+Journal+of+Productivity+and+Performance+Management&volume=54&issue=7&spage=568&date=2005&issn=&eissn Seldon, S., & Sowa, JE (2010) ‘Performance management and appraisal in human service organizations: management and staff perspectives.’ Public Personnel Management. 40(3), pp. 251-262. Available at: http://ehis.ebscohost.com.ezproxy.liv.ac.uk/ehost/pdfviewer/pdfviewer?sid=8b3e34b3-2e4c-4ffe-bcb5-f57ceb9d50f7%40sessionmgr113&vid=4&hid=120 (Accessed on: 7 December 2011) Adcroft, A., & Willis, R., (2005) ‘The (un)intended outcome of public sector performance measurement’ International Journal of Public Sector Management, 18(5) pp. 386-400. DOI 10.1108/09513550510608859. Available at: http://www.alternativeminds.co.uk/AA4.pdf. (Accessed on: 28 December 2011)

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Delegation Survey Analysis Case Study Example | Topics and Well Written Essays - 750 words

Delegation Survey Analysis - Case Study Example Even then, there are still various challenges with the compliance of these rules. Summary of Survey Response Because of the current demands in nursing care that cannot be satisfied by the number of registered nurses (RNs), both the American Nurses Association (ANA) and the National Council of State Boards of Nursing (NCSBN) suggest delegation of tasks to nursing assistants to provide efficient healthcare service to patients. Despite allowing others of specific tasks, it does not free RNs from the responsibility toward their patients. This implies that I delegate only the ones that are allowed to be passed onto unlicensed practitioners, such as basic nursing tasks not needing the use of judgment, I should be aware of the competencies and abilities of the person to whom the task is delegated in order to determine whether or not he or she is capable of doing the task, and I am still accountable as to the outcome of the delegated task. Because the outcome is by law still my responsibilit y, I should be available to supervise, and intervene once the task is not done properly. Another important aspect of delegation aside from the communication and supervision of the task is evaluation of the performance of the delegated task. This makes way for learning and adjustment from both the RN and assistant, so that any mistakes or inefficiencies can be corrected in the future. As always, an open communication is necessary to be able to conduct an optimal evaluation (Gallagher, 2009; Ohio Administrative Code ch. 4723,  § 13; Yoder-Wise, 2011; â€Å"Joint Statement of Delegation†, n.p.; ). Analysis of Response Because of the many responsibilities and potential liabilities concerning delegation of nursing tasks, I most of the time find it easier for me to do things on my own instead of carefully contemplating whether or not 1) the task can be delegated, and 2) the assistant is capable of doing the task properly. I also find it more efficient to do the task myself, inste ad of taking time to explain the procedure in order to delegate. Thus, it is only in dire cases when I delegate tasks. I thus end up overworked, exhausted and unhappy sometimes. I hope the state or the hospital considers establishing a committee or a particular group of nurses that will be tasked to delegate activities to assistants and monitoring the outcomes of delegated procedures, especially when it will be found through a study that delegated procedures are done sub-optimally or delegating RNs tend to do tasks themselves even if they have to attend to many patients. This should allow the lightening of nursing load to cut across all nurses, instead of the amount of nursing load being indirectly proportional to the nurse’s proficiency in delegation. Improvement of Delegation Skills I recognize that delegation skills is something that every RN should develop, in order to provide health services as fast as possible, without compromising the quality of the care being given (J ohnson, 1996). Until the demand for RNs are met, nursing assistants are an important part of efficient health service. I also recognize that delegation skills can only be improved through constant practice of the steps entailed for good delegation. What is important is to make the assistant and the patient feel that you are always present to look at every step taken by the assistant. Importantly, the delegating RN should know both the patient and the assistant doing the procedure (Currie, 2008). This

Integrate a quote with a signal phrase that precedes the quote. Essay Example for Free

Integrate a quote with a signal phrase that precedes the quote. Essay In his article â€Å"A Matter of Degrees,† Clive Crook illustrates the importance of literacy today: â€Å"Illiteracy has always cut people off from the possibility of a prosperous life, and from full civil engagement†¦ Three out of ten seniors in public high school still fail to reach the basic-literacy standard† (30). 2. Integrate a quote with a signal phrase that interrupts the quote. â€Å"So much about today’s adult industry seems like an undeft parody of Hollywood and the nation writ large,† says David Foster Wallace in the essay â€Å"Big Red Son,† describing the evolution of adult film stars. â€Å"†¦The gynecologically explicit sexuality of Jenna [Jameson], Jasmin [St. Claire], et al. seems more than anything like a Mad magazine spoof of the â€Å"smoldering† sexuality of Sharon Stone and Madonna and so many other mainstream iconettes† (29-30). 3. Integrate a quote with a signal phrase that follows the quote. â€Å"I love the Cup because it stripped away all the things about professional sports that Ive come to despise†¦ The World Cup just bangs it out: Two cool national anthems, two 45-minute halves, a few minutes of extra time and usually were done. Everything flies by. Everything means something. Its the single best sporting event we have by these four measures: efficiency, significance, historical context and truly meaningful/memorable/exciting moments,† says Bill Simmons of ESPN. com in â€Å"Bill Simmons: World Cup 20 Questions,† explaining some of the virtues of the international soccer tournament. Works Cited Crook, Clive. A Matter of Degrees. The Atlantic Monthly Nov. 2006: 28-30. Academic Search Premier. Web. 5 July 2010. Simmons, Bill. Bill Simmons: World Cups 20 Questions ESPN. ESPN: The Worldwide Leader In Sports. ESPN Internet Ventures, 1 July 2010. Web. 05 July 2010. Wallace, David Foster. Big Red Son. Consider the Lobster and Other Essays. New York: Little, Brown, 2006. 3-50. Print.

PETRONAS Company Overview and Analysis

PETRONAS Company Overview and Analysis PETRONAS is the short for Petroliam National Berhad. As an incorporated company, it was founded on the 17th of August 1974. It was wholly owned and controlled by the government of Malaysia. PETRONAS has ventured into more than 32 countries including Argentina, Russia and Egypt. It currently employs over 30, 000 employees of 38 nationalities. PETRONAS has involved in the entire petroleum activities. From managing the sharing contractors of the foreign production, it has been changed into developing its own capabilities in the upstream sector allow it to take the lead in the exploration and production of the nations oil and gas resources. Vested with the entire oil and gas resources in Malaysia, PETRONAS is entrusted by the government to develop and add value to these resources. Besides that, it also ventured into downstream activities. It seeks to maximize value creation and strengthen of its operations all the way down the value chain. The range downstream activities of PETRONAS includes oil refining, gas processing and liquefaction, gas transmission pipeline operations, petrochemical manufacturing and marketing, property investment, shipping, marketing of liquefied natural gas, marketing and distribution of petroleum products, and trading. Internal Environment There is a high level of interdependence between an organization and its internal environment. The internal environment comprises elements that have a direct influence on the operations of the organization. They have an impact on the achievement of the organizations goals. The Micro forces of the environment are: Vision and Mission PETRONAS is a big organization and a corporation which is widely known to the world as a company that exports Malaysian oil. Being a big organization, PETRONAS has its very own vision and mission to achieve its common goal and to serve its customers the best service they can provide. As we all know vision is a long-term plan that exists in almost every company or organization. PETRONASs vision statement is to be a leading oil and gas multinational of choice. It is hoping to become a worldwide known organization and also the first choice among all other oil companies present so far. PETRONAS mission statements, on the other hand, are as follows: We are a business entity. Petroleum is our core business. Our primary responsibility is to develop and add value to this national resource. Our objective is to contribute to the well-being of the people and the nation. (PETRONAS, 2010) The mission and vision PETRONAS believes has made it grows tremendously since it was incorporated in the month of August on the 17th in the year 1974. It is now a fully-integrated oil and gas corporation which is ranked among FORTUNE Global 500s largest corporation in the world. Organizational structure Organizational structure is the internal, formal framework of a business that shows the way in which management is linked together and how authority is transmitted. (Stimpson, 2006) PETRONAS adopts the functional organization structure. It enables specialization and allowing its employees to focus on their respective areas. There is cross functional bonds between the respective divisions and departments. It is the bond and process of specialization that has led to the success of the organization. Team work is encouraged, all the departments work together to achieve the companys goals and targets. This has proved to rewarding for the organization as a whole and the employees, customers, suppliers and the community as a whole. The line of authority is clearly drawn, orders are sent from the top most level, the president and the CEO. PETRONAS has also hired consultants to improve business and organization results. Functional Strategies Corporate Planning and development division This division plans long term and short term business strategies which lead to the development of the organization. Education division This division undertakes the responsibility of all the educational activities associated with PETRONAS. It involves the scholarships provided by University Technology PETRONAS and the education programs provided to the underserved community. Finance division The Finance division provides the company with its accounting and financial reporting backbone of the company. Its role is to identify financial sources to finance the operations of the company and to locate profitable areas where the business can invest their money to get higher returns. PETRONAS is involved in the sports world through its investment with Mercedes F1team. It has also contributed towards the development of Turkmenistan economy, by investing US dollar $ 1.8 billion in the oil and gas industries. Technical Services division This division is set up to drive and manage the technological activities of PETRONAS. Human Resource division The most important function of the human resource department is recruitment, selection and training of employees among others. PETRONAS selects the best and brightest of employees through talent searches amongst local and overseas graduate. PETRONAS trains and molds its own employees through technical training and innovative program provided in University Technology PETRONAS. Shareholders Shareholders of a firm can directly influence its policies and activities. PETRONAS shareholder is the government. It generates income and value for its shareholder. PETRONAS gave the government RM 52.3 billion from its RM86.8 billion pre-tax profit, in the form royalty, dividends, corporate tax, income tax and export duty. PETRONAS provides shareholders with the opportunity to gain first hand exposure on the Companys operations by organizing several visits to its Gas Processing Plants. Such two-way communication increases corporate transparency and helps shareholders take a longer term view of their investment based on a better understanding of the companys corporate strategy and operation. PETRONAS recognizes the importance of timely and equal dissemination of information to shareholders. Therefore they arrange the Annual General Meeting (AGM) which is a crucial mechanism in shareholders communication. Employees PETRONAS must be committed to enhancing the capability of its employees, as a corporation is only as good as the people who work for it. This phrase is from PETRONAS mission statement. Employees are the most important asset of an organization, since it is the dedication, motivation and skills of an employee that make a business successful. PETRONAS highly values its employees and understands the importance of their motivation. Therefore it arranges various programmes to encourage and support its employees by involving them in voluntary work. Programmes such as Sentuhan Kasih and Jalinan Insan allow their employees to contribute to homes for disadvantaged children and orphans in the areas of their operations. These programmes provide the employees with job satisfaction, which in return highly motivates them to perform better. Community Lord Holme and Richard Watts used the following definition. Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large The culture now is to be generous by giving back to the community. Therefore organizations have certain responsibility towards the community they work in. PETRONAS is a responsible citizen of the community, thus is has successfully imitated and supported various social, environmental and community projects. PETRONAS and Education PETRONAS is committed is developing the people and they operate in by providing education particularly in the field on science and technology. They are determined to create a skilled human resource base for Malaysia through various schemes. Scholarships University technology PETRONAS (UTP) provides hands on technical training and innovative programs to help employees build skills and competencies. PETROSAINS provides a rich and motivating environment for the public to acquire knowledge about science and technology. PETRONAS benefits from this program since they are molding their own workforce, by educating them in standards which are important to PETRONAS. PETRONAS and Environment PETRONAS recognizes the importance of conserving biological diversity in order to ensure people, animals and plants. Therefore they developed the KUALA LUMPUR CITY CENTRE (KLCC) PARK, to balance the challenging demands of growing urban populations, with the environmental conservation. A much needed public park and green lung for the city of Kuala Lumpur. External Environment External environment refers to the factors that happen outside the business which cannot be controlled by the business. These factors will influence the internal functions of the business and its strategies to adapt itself to the changing environment. Political Environment The Malaysian government chose to create a state company, rather than using taxes, production limits, leasing, or other familiar instruments of supervision. The government sought to assert national rights over the use of the countrys resources. A state company, having both supervisory powers over the majors and production activities of its own, was a workable compromise between allowing the majors full rein and excluding them, along with their capital and expertise, altogether. PETRONAS is given full trust by Malaysia government to conduct business independently from the government. Government holds 100% of PETRONAS and formulates and implements energy policies including oil gas. The company cooperates with the government for the common purpose to develop the country to achieve the level of advanced countries. Regarding the relationship between PETRONAS and the government, one executive in the company said, There is a world, especially in the Third World, where only the government and the government (GG) can open the first door. He claimed that there is the world which does not function well with the absence of mutual trust between the government and the national oil company. Legal Environment Legal concepts, principles and issues are affecting everyday business decisions of all organizations. PETRONAS is a multinational organization. Therefore the company is subjected to laws in all of its host countries. Petroleum Development Act 1974 To regulate the oil and gas industry to achieve Malaysias economic development needs, Petroleum Development Act 1974 was formulated, and PETRONAS was established under this act. Through this act, PETRONAS owns the exclusive right of ownership, exploration and production of petroleum and gas. Under the direct purview of Malaysias Prime Minister, PETRONAS is responsible for its planning, investment and regulation of all up-stream activities. Government Taxation PETRONAS is liable to pay to the Federal and State Government in terms of dividends, taxes, export duties and royalties. In the year of 2009, PETRONAS has paid RM 30.0 billion as dividends, RM20.3 billion as income tax, RM 9.1 billion as corporate income tax, RM 2.2 billion as export duties and RM 6.2 billion as royalties to the government (PETRONAS: Media Release, 2009). Laws Regarding Employee Benefits On the other hand, nearly all government pass laws to control recruitment, employment, minimum wages, health and safety at work, and trade union rights of employees. One of its aims is to protect the workers from any kind of physical injuries. It requires the working environment in PETRONAS to be safe with adequate equipment and sanitation. However, these requirements usually add up to the business cost. Consumer Rights In addition, PETRONAS has to protect consumer rights. The Consumer rights seek to protect the rights and interest of consumers, as well as to prevent them from receiving products that do not reach a reasonable level of safety. PETRONAS sternly practices this as to ensure maximum popularity amongst other oil and gas company as well as looking after customer satisfaction. Economical Environment Economical environment refers to the collective of the nature of economic system in the country. It would affect a business in terms of recession, interest rates, exchange rates and global economic factors. Recession Recession is the process when values of goods and services decline in an economy. It results in the fall of demand for certain products, as income is reduced. To keep the demand on going, the prices of products are lowered. According to an article by Jane Lee in 2009, net income of PETRONAS in the year ended March 31 dropped 14%. It was its first annual profit decline in 7 years due to sapped energy demand in global recession and high production cost. Interest rates During inflation, there will be increase in the supply of money associated to the amount of goods available. This will result in a rise in prices of goods and services in the economy over a period of time. For PETRONAS, the high interest rates and fall of purchasing power would consequently affect the cash flow of the organization. Oil Price Oil Price has strong relationship with PETRONAS sales performance. When oil price in Malaysia increase, its sales will strongly increase, and when oil price in Malaysia decrease, its sales also decrease. Technological Environment In order to adapt itself to the rapid growing technological environment, an organization has to be versatile and recognises the value of technology to its business growth. PETRONAS is a technology dependent organization that promotes and uses technology vastly for research and development. It pursues the strategic deployment and application of technology to further enhance operational excellence and maximize the potential of its existing assets and emerging opportunities. Technology in Gas Business In the Gas Business, PETRONASs technology emphasizes on mercury management. With the initiatives to remove mercury from raw condensates, the onshore mercury removal system, a technology that is among the first in the world, has been installed at PETRONAS Onshore Gas Terminal in Kertih. This system is able to treat raw condensates at the terminal, to improve operational and Health, Safety and Environment (HSE) performance as well as to assure product quality. Technology in Oil Business In the Oil Business, PETRONAS continue to pursue leading edge technologies to enhance its fuels and lubricants businesses. PRIMAX 3, the unleaded petrol, was developed in-house utilizing a superior quality fuel formulation innovated by optimising base fuel properties through the addition of the Sinar G-05 additive (PETRONAS: Oil Business, 2010). While meeting environmental standards, it enhances engine performance and efficiency. In addition, PETRONAS also believes there are opportunities in alternative energy resources and continue to explore the potential of hydrocarbon resources as well as solar energy and bio-fuels. In building a long term and sustainable energy business, the company looks toward Green Technologies to prepare for the future low-carbon economy. These technologies are believed to be providing a strong competitive advantage for PETRONAS to strengthen its position in global business. Competition In any of the industry, there must be competition among organizations. An organization will try to get more customers to buy their product instead of the one offered by the competitors. The success of organizations depends on which one makes the most attractive products at lower prices. The major competitors to PETRONAS are Shell and Caltex. They produce different type and efficiency of petrol. PETRONAS PETRONAS has designed PETRONAS PRIMAX 3 to provide maximum protection and performance for your car. By formulating with unique additive components, PETRONAS PRIMAX 3 efficiently protects the engine against injector fouling and corrosion, reinstating the car to its peak performance to improve fuel economy. Shell However, Shell is the leader in developing high quality fuels. Shell Super with fuel economy formula is specially designed by Shell experts to give you extra miles at no extra cost. It is formulated with Shells Synthetic Viscous Friction Improver, designed to reduce friction in this crucial part of your engine, helping to improve its efficiency. Caltex On the other hand, all Caltex petrols now include technologically-advanced, patented fuel ingredient, Techron ®. Caltex Techron with cleaning agent is unsurpassed at keeping engines clean and cleaning up deposits to help reinstate original performance. It contains powerful detergents which help in removing deposits from fuel injectors intake ports and valves. The key benefits for using Techron ® are improved performance, enhanced reliability, smoother drive, restored fuel economy and lower emissions. Comparing these petrol brands, each of them has its own strengths. They are having a healthy competition in the petrol industry with the same goal to provide the best petrol they could produce. Social Environment Social environment refers to the factors regarding the society as well as the environment. An organization needs to have social responsibilities in order to contribute to the people of the society and to protect natural environment. Social Responsibility on Consumer Many companies are affected by society and vice-versa. For PETRONAS, it was noticed that consumers are the foundation of the entire business, and dissatisfied customer could be a warning signal to the business. Therefore, it has to take care of societal needs and safeguard human rights. For example, it concerns about the safety and health of consumers. It has to make sure that it supplies safe products to the consumers and provides product knowledge via advertisements, as well as ensures product utility and performance as advertised. Social Responsibility on Environment In undertaking its business activities, PETRONAS cares for the environment by adopting responsible environmental management practices in its operations. At the same time, it also contributes to the biodiversity and conservation of the environment for the sake of the community. PETRONAS is taking every practicable and reasonable step to prevent the risk of injuries, health hazards and damages to properties in according to international Health, Safety and Environment standards. It is also investing in community-related initiatives in environmental conservation and urban renewal, both in Malaysia and other countries. These community projects aimed to create sustainable benefit and tangible value to the communities. Conclusion Over the years, PETRONASs unique experience and expertise, coupled with its technical and operational competencies have allowed it to be accepted as the preferred strategic partner by international companies and the host countries. Facing the adverse business and economic environment, PETRONAS is still able to integrate, add value and globalize its operations. These would bring the company towards the realization of its vision to become a Leading Oil and Gas Multinational of Choice. Moving forward, PETRONAS will continue to improve its business performance, strengthen its resilience and enhance its capabilities to confront the challenges in delivering a sustainable energy future for all its stakeholders. Moreover, it will guided by its objective to serve the nation and people with high standards of ethics and integrity, while at the same time maximizing shareholders returns. (3022 words)