International Organisational Behaviour Essay Example | Topics and Well Written Essays - 3250 words

International Organisational Behaviour - Essay Example He further states that there are bound to be emotional reactions when the particular values of one culture are being violated; in circumstances where the expected behaviours of a culture are not followed also there may occur some emotional outbursts. Similarly the effect of religion on the culture is one thing that can not be ignored. Culture therefore is bound by various limiting factors that are dependent on the locations, regions or countries. The effect of such cultural differences can be expected to have their impact on the employee bahaviour in varying dimensions and degrees in different countries in the business organizations as well. Especially in an era of economic globalization, the business and industrial houses disperse to nations that are geographically far off breaking all barriers. Under such circumstance it becomes imperative for the multinational and transnational companies to employ the local workforce along with the expatriates. While doing so in order to improve t he organizational performance the firms have to bear in mind the impact of the cultural differences on the behaviours of the employees that may ultimately affect the individuals’ as well as the organization’s performance. In this context this paper presents a broad idea on the subject of ‘international organizational behaviour’ and its effects on the overall organizational performance detailing in particular the applicability of universalistic theories of organizational behaviour in the era of a multinational business environment. Brown (1995) defines organizational culture â€Å"as the set of norms, beliefs, principles and ways of behaving that together give each organization a distinctive character†. Scholarly writers concur that the organizational culture is determined even from the time of inception and is dependent on the organizational characters like the competitive environment and customer requirements. The culture is also dependent on the cultural values

Subprime Crisis Essay Example | Topics and Well Written Essays - 750 words

Subprime Crisis - Essay Example In layman's terms, they use the supposed income from these mortgages as their collateral in their other investments. The banks were hoping that with the prime rate on the upward trend, they could make considerable gains on the basis of that hypothetical margin of profit. The problem began when the bubble burst and the prime rate skyrocketed so much to the point that the people were no longer capable of paying their mortgages. The financial institutions who were counting their immense profit lines on paper were suddenly left holding the bag, left saddled with numerous foreclosed properties that were both unloadable and prone to depreciation. Haunted by serious liquidity issues arising from this maelstrom, a lot of these lending institutions have been rocked to the very core. Some have even declared bankruptcy, the most notable being former investment powerhouse Bear Stearns, the 5th largest investment house in the nation. In the IMF's recent report, it is illustrated that the global level of aversion from an emerging market, macroeconomic, and credit risk standpoint has increased exponentially from the previous year. This is highly indicative of the ripple effect emanating from the U.S. housing crisis. In addition, the prices of U.S. mortgage-related securities have plummeted from a high of roughly $100 a share in 2006 to less than $20 in 2008, causing billions of dollars in equity losses. With no liquid equity, these institutions are hard pressed to back individual mortgages, which in turn perpetuates the crisis. The cold, hard facts do not paint a rosy picture on the global scale. Average housing market prices have tumbled accordingly, with the United States and United Kingdom embroiled in a rapid downward spiral. The rest of the Europe is holding, but even there the downward trend has already started over the past two years. Just when did the housing boom originate Fueled by a favorable prime rate and the advent of poorly underwritten, predatory loans, commercial mortgage borrowing reached historically high levels in the 2nd quarter of 2005. Over $400 billion worth of loans were underwritten, a good percentage of which has fell into default as of 2008. The effects of these massive defaults are momentous; during the 1st quarter of 2008 estimated losses from defaulted loans have already reached the $130 billion plateau for banks, and roughly $500 billion overall with no relief in sight. Over the next few years losses are expected to reach the $900 billion mark, and banks and financial institutions everywhere are scrambling just to keep their head above their water. While recent Federal Reserve initiatives to bail out financial institutions reeling from the crisis are admirable, its lukewarm reception can be attributed to a prevailing notion that it is just too little, too late. With mounting losses expected in the coming months, we can only hope that the country would survive this catastrophic downturn which has rendered even more losses than the infamous Asian financial crisis of the 90's.With capital markets running dry and a high propensity towards risk aversion, one can only hope that the government and the Federal Reserve will put forth dynamic stimulus programs to bail out this badly