International financial management Essay Example | Topics and Well Written Essays - 2000 words - 4

International financial management - Essay Example This is supposed to help their managers to know exactly what to do as and when they are in a situation where they have to make a critical decision about a big risk such as the one that Herr Ruhnau took. If such policies existed at Lufthansa, it would be easy to know whether the actions of Herr Ruhnau were careless and if he ignored standards in and to follow his gut feeling to make such a big decision (what kind of policies, list some of it). For instance, like having a limit on how must risk in terms of the amount of money involved a manager can take without involving the board of management. I have also talked about this in the conclusion) Herr Ruhnau’s decision can be viewed in two main perspectives. First it can be viewed from the perspective of the fact that as a manager, he had to take the action he thought was beneficial for the firm. Punishing him for making such a decision would be considered to be unfair in that when he took the role of the CEO of the firm, he took the responsibility to be making such decisions. As Ayse (212) says, it is not good for executive managers to be limited with regard to how they make their decisions. As a result, in determining whether Ruhnau’s actions were careless or necessary in that situation, it is necessary to tread carefully on the line and make sure that all factors are considered. Ruhnau decision was to leave fifty percent of the risk that the firm was taking with regard to buying the Boeing planes in advance and offering o pay later when the airplanes were delivered. This left the firm exposed to a risk of over 2.5 million dollars not covered. He also refused to consider other alternatives to cover the risk, such as forward contracts in order to protect Lufthansa from the risk of shifting exchange rates. He had analyzed that the dollar could only rise for a short time and so it would be expected that it could only go down from there. In

Contemporary Human Resourse Management Research Essay

Contemporary Human Resourse Management Research - Essay Example While professionalization of the HR practice has been encouraged through certification programmes such as CIPD, the HR specialists need to add to their attributes to become worthy of the label of being a professional. A model of growth, contribution and enjoyment is what the HR specialists need to focus on. Challenges for the HR specialists Driven by numerous internal and external forces, HR management has expanded its activities from functional and administrative tasks to more strategic functions and aligning its functions and activities with the strategic goals of the organisation. A strategic partner should be able to create a positive impact on the organisation’s performance. The process view of HRM also known as HR system strength or HRS focuses on how the HR function communicates with the employees, not on what it communicates (Rebeiro, Coelho & Gomes, 2011). The HR practitioners are responsible for overall performance in two ways. They shape the skills, attitudes and be haviour of the entire workforce in the organisation which in turn impacts the organisational performance. Again, the HR practitioners can also have a direct impact on performance by creating structural and operational efficiencies which facilitates the organisation to implement strategies consistent with their goals. This approach requires a strategic fit between the HR practices and the organisational strategy for enhanced performance. HRS has a direct impact on improving behaviour. When messages are communicated to the employees in a clear, consistent and distinct way horizontal fit has been achieved. Organisational culture also impacts the outcome of HR practices. Thus, HR practices and their outcome cannot be considered in isolation because several factors contribute towards its success or failure. Realizing the challenges posed by the changed business environment, the Chartered Institute of Personnel and Development (CIPD) reframed its professional standards and introduced the concept of the â€Å"thinking performer† (Higgins & Zhang, 2009). The â€Å"thinking performer† is an ideal HR practitioner that adds value to their organisation as they are capable of and constantly willing to challenge the way things are executed. The â€Å"thinking performer† is a â€Å"strategic activist† who has the capability to challenge the status quo and demand more from what is currently being delivered by the people in the organisation. CIPD has been attempting to upgrade the personnel management towards strategic issues. This has become essential in light of the fact that most HR practitioners do not engage in strategic issues or challenge how things are being done. However, this too has to be handled in a way that other employees do not feel estranged if the entire focus is shifted towards strategic issues. This is perhaps what Pook (2001) means when he contends that HR development and organisational development are intertwined. People make a n organisation and their knowledge and capabilities are a resource that has to be used for achieving strategically defined results. Much of the business generating activity also depends upon employee loyalty and identification with the organisation. In other words people are both drivers and inhibitors of change and development. Therefore attracting and retaining the right