Main Objectives of Training in Employment

Main Objectives of Training in Employment The training, development and education of employees at all level of hierarchy in an organization are considered as an essential tool in maintaining competitiveness in the international arena. The chance for workplace learning to improve individual and organizational performance has been acknowledged for a very long time. Training is a fundamental component in helping to resolve major organizational or management problem. Training is an ideal way to learn a job. Today, Management of the skills of the workforce is an essential aspect of doing business, and employee development will likely grow in the future (Noe, 1999). The benefits of employee development extend beyond the actual skills gained and their contribution to an individuals productivity (Benson, 2002). Training is the use of systematic and planned instruction activities to promote learning. This approach can be summarized in the phrase learner-based training. (Armstrong, 2001) Training has an opposite role to play in accelerating learning: that is, training should be reserved in circumstances justifying a more directed expert-led approach instead of viewing training as a comprehensive and all-pervasive solution for the development of the people. (Reynolds, 2004) 2.1. Learning Learning is defined as a method of increasing an individuals ability to take action. (Kim, 1993) The definitive aim of learning policies and programs of any organisation is to make provision of skilled, knowledgeable and competent workforce necessary to meet present and prospective needs. (Armstrong, 2001) However, Reynolds et al (2000) explained that there is a need to make difference between learning and training as learning is a process of acquiring new knowledge, skills and capabilities whilst training is one of the actions an organisation can take for the promotion of learning. Similarly, Sloman (2003a) distinguished between learning that lies within the domain of the individual and training that lies within the domain of the organization. Today, The approach is to focus on the individual learning by ensuring that it happened when needed that is, just-for-you and just-in-time learning. 2.2. Definition of Training In General, Training is defined as a planned and systematic effort to modify or develop knowledge, skills and attitudes through learning experiences, to achieve effective performance in an activity or range of activities. (Garavan et al., 1995; Harrison, 1993; Reid et al., 1994). The Manpower Services Commission (1981) described training as a designed process aiming at the development of attitude, knowledge or skill behaviour through the knowhow of learning in order to achieve performance in an activity or series of activities. The idea behind training in the situation of the work is to increase the capabilities of an individual so as to satisfy the current and prospective needs of the organisation. Training is the systematic modification of behaviour through learning which occurs as a result of education, instruction, development and planned experience. (Armstrong, 1999) Decenzo and Robbins (1996) defined training as a learning experience that seeks a relatively permanent change in an individual that will improve the ability to perform on the job. As well, Decenzo and Robbins pointed out that training bring about changes in skills, knowledge, attitudes, or behaviour. Many other definitions provided in literature lay emphasis on a current job focus. Being a very popular activity, it appear to cross all the limits including on- the- job training, off- the- job training , training to young employees , adult training, formal and informal training through work experience. Looking forward critically to the views on training concepts revealed the same thing in appearance what really differs is the alternative of words. 2.3. Aim of Training The central aim of training is to aid an organisation achieving its purpose by adding value to its key resources, that is, the people it employs. Consequently, to attain the overall effectiveness and efficiency of an organisation, it needs to invest in its people to enable them to perform better and to empower them to make the best use of their natural abilities. 2.4. The three main objectives of Training pointed out by Armstrong (1999) are as follows: Training develops the ability of the employee to enhance their performance. Assist in the growth of the people in the organisation as far as possible, as such its future Human Resources can be met within the organisation, The learning time for employees starting new jobs on appointment, transfer or promotion are lessened and also ensure that the latter are totally competent as promptly and cost-effectively as possible. 2.5. The need for training is justified in many ways: Learning can take place through formal training as: Formal instruction can develop the skill for the works requirements. Various skills are needed for the number of employees which have to be developed quickly so as to meet new demands and cannot be obtain through relying on experience. In order to ensure that employees meet their responsibilities critical information need to be imparted. Common learning need has to be met, which can be dealt through training programs. 2.6. The Systematic Approach to training The influential factors in conflict with the good performance of employees are the inadequacy of training. With simple recruitment, no seriously minded organisation can be staffed by employees having expertise and potentials in variety of discipline desired for the total functioning. Through, a systematic approach to training of the personnel on a continuous basis connects the totality of the workforce towards higher productivity in the organisation. The Manpower Services Commission (1981, p.59) defined systematic training as training undertaken on a planned basis as a result of applying a logical series of steps. In practice, the number and description of these steps tends to vary, but in general terms they would cover such aspects as the development of training policy, identification of training needs, development of training objectives and plans, implementation of planned training and validation, evaluation and review of training. Typically, the systematic model consists of 5 components: analysis of training needs, design of training curriculum, development of training curriculum, implementation or delivery and finally the evaluation. (Carnevale et al, 1990). 2.7. Models of Training: 2.7.1. ADDIE model The most common conceptual model for systematic training is the ADDIE model. The ADDIE model presents a systematic process for determining training needs, the design and development of training programs and materials, implementation of the program, and evaluation of the effectiveness of the training (Gagne et al, 2005). The ADDIE model has been evolved through written or oral tradition both formally and informally (Molenda, 2003). Figure 1-ADDIE Model: Phases, System Functions, and Quality Improvement Source: Department of the Air Force (2001) Note: ADDIE = analyze, design, develop, implement, and evaluate. The ADDIE illustrated above is one of the revised model. The model shows that: Evaluation is the focus of the ADDIE process. ADDIE is a continuous process with flexibility to enter and reenter various phases when necessary so as to develop, update or revise instruction. The ADDIE activities take place within and are dependent on system functions. Cooperation is necessary among personnel performing in the system function and those who design develop and implement instructional systems. All activities and system function is based on continuous improvement for the overall system. The entire process of this model is the ADDIE model takes place with the sphere of Quality improvement. ADDIE depends on the mission and job analysis for required data in order to design, develop and implement instruction. There are more than 100 different variations of the model; however, almost all of them reflect the generic ADDIE process. 2.8. Performance improvement focus Models There are normally three models related to training for performance improvement. The following three models, performance-based instruction, training for performance system, and training for impact, take a performance improvement focus. They each work from the assumption that it is unlikely that training by itself will improve individual or organizational performance. These models emphasize the analysis and evaluation phases and their connection to the host organization The performance-base instruction Training for performance system Training for impact. However, these three models work on the assumption that training by itself would not improve the performance of employee or the organisation as emphasize must be on the analysis and evaluation phase. 2.8.1.The performance-base instruction Model Performance-base instruction (PBI) model was developed by Dale Brethower and Karolyn Smalley in 1998. The PBI model was specially designed to add value to individuals and organizations performance through which the gap between the novice and the excellent performance is reduced. Holton et al (2000) stated that the model is learner and organisation centered and seeing that there is an improvement in performance, it hereby adds value to the organization. Figure 2-Performance-Based Instruction Source: Brethower and Smalley (1998). The benefit of this systematic training approach is to enhance the high ratio of benefit to the high ratio of cost as it uses a systematic and efficient development process. Brethower and Smalley (1998) pointed out the application of the PBI model is put into practice through: (1) Guided observation, (2) Guided practice, (3) Demonstration of mastery. 2.8.2. Training for performance system The Training for performance system (TPS) model was initially developed by Richard A. Swason in 1978 which have begin with the composition of the ADDIE model as discussed previously and thus have expand one each phase to mitigate rigidity and shortcomings. Swason(2002) defined the TPS as a process for the development of human expertise for the purpose of improving individual, organizational and process performance. Normally, the TPS analyzes the requirement for basic organisational performance and also deal with the development of the expertise in the field of knowledge work and system work. Figure 3 Training for Performance System, Source: Swanson (2002). TPS give rise to a systematic training model with the potential to produce outstanding outcomes in the training environment for all content. Thus this is accomplished in 2 ways: The traditional 5 phases of training is supported by a solid leadership function. The basis of leadership includes the tasks of: Championing the training and development mission and goals of training, Managing the training and development process, Ensuring the continuous improvement of the process. Each phase is divided into two specific steps which further describe the major processes that make up the phase which is backed up by a an easy-to-use support system for every step. The analysis phases (Swanson, 1996) and the evaluation phase (Swanson, 1996; Swanson Holton, 1999) in the TPS model is emphasis as being the key to success. 2.8.3. Training for impact model This model links training with the specific goal of an organization. That is, the need that drives the request for training is identified in the organization. This model helps the trainer to document their training efforts. The Training for impact model states a mandatory need assessment. That is, the business result expected to take place from the improvements are recognized on the front end. This model helps the Human Resource Development (HRD) professional to focus on the requirement and delivery for the improvement in skills and knowledge whereas, management to focus on the needs required in the working environment to support new skills or knowledge. Then, the results must be measured. (Cowell et al, 2006). Figure 4-Training for impact Source: Robinson and Robinson (1989). Robinson and Robinson (1989) outlined 12 steps of progression through the Training-for-impact model. Step 1: Identify business need and client: This means that training should help in maximizing opportunities, and thus be more projects driven than curriculum base. Step 2: Form a collaborative relationship with client: the learning experience and work environment us examined. Step 3: conduct initial project meeting: This is a key step in the training process. Step 4: Conduct Performance effectiveness assessment: Front-end assessment is mandatory as it identifies. What gap exists? What should be? What should not be? What is the difference between the two? Step 5: Conduct cause analysis: In this step the cause of the gap that exists should be identified. Steps 6 and 7: tabulate, interpret and report results to the client: the HRD manager must present the result in a way to encourage management to take expected action. Step 8: design the reaction and learning evaluation system: In this step, the reaction evaluation that is, receiving information from participant and learning evaluation that is, assessment of the degree of skill and knowledge which have been learn should be designed. Step 9: design tracking system: The behavioural, non-observable and operational results should be identified clearly and must be specific to allow measurement. Step 10: conduct training: maximum impact to the organisation is assured because of the time and efforts devoted in the need assessment. Step 11: collect, tabulate and interpret evaluation and tracking data: comparison of the date collected with the base data for evaluation of outcome evidence. Step 12: report to the client: the results from all evaluation with emphasis on tracking studies should be reported. Clients will assist with evaluation and follow up actions. 2.9. The Systematic training process 2.9.1. Training needs analysis The analysis phase was originally based on the understanding that training was needed and that analyzing the content was the starting point. Goldstein (1986) described needs assessment as an effort to analyse and diagnose the organization, task and person, to determine if a cure is necessary and what cure is most likely to produce the desired results. Needs analysis is a systematic attempt to identify current and future organizational problems. (Anderson, 1993; Roscoe, 1995). Training need analysis is a process of determining what ought to be (goals) and assessing the amount of discrepancy between what ought to be and what actually is (needs). (Briggs, Gustafson and Tillman, 1991). The purpose of a training needs analysis is to close the gap between the actual and desired situations by determining discrepancies in outcomes, placing them in order of priority and selecting the most important for closure or reduction. (Rothwell and Kazanas, 1998). It is important to carry out training needs analysis before organizing any training activities as it guaranteed the success of the activities. The analysis ensures synergy among the learning need of individual and quest for effectiveness, job performance and strategic organisational development. (Potter et al., 2003) Normally the TNA refers to the process of examining needs for training in order to determine how they might actually be met. It attempt to define gaps between what people know and can do and what they should know and be able to do. To gain a meaningful analysis, it is crucial to use the system approach. Following certain steps will be beneficial as it provide direction and focus in the process. As such, it provides a framework within which to work and to report results to management. The steps that are normally used to analyse training needs are as follows: Step 1: Perform a gap analysis Step 2: Identify priorities and importance Step 3: Identify causes of performance problems and/or opportunities Step 4: Identify possible solutions and growth opportunities Step 5: Present your findings A Training Needs Assessment is normally conducted so as to determine what the actual performance problem(s) is (are) (Rossett, 1999). However, in some cases, a problem is not due to the of lack in instruction but to deficiencies within the job structure or environment (Clark, 1999). 2.9.2. Designing the training program The next step consists of designing the training program. It is imperative for organisations to realize while designing the program that is equally important to consider what trainees should know or be able to do after the training is complete. One thing that should be considered before designing the training program us what the program is to accomplish, that is the objectives. Without knowing what the program is to accomplish it is very difficult to design the program. 2.9.2.1. Determining training objectives and training plan After the need analysis, it becomes easier to establish training objectives and to determine what the learners must be able to perform after the training program. However, Mckenna and Beech (2002) stated the importance for a sound basis to be established for other elements of Human Resource Management practice such as performance management, reward management combined with training and development. That is, training and development itself cannot help in the total development of employee without the complement of appraisal and motivation. 2.9.2.2. Determine the content Once, attainable and measurable objectives have been set, it is crucial to determine the content. This can be either a complete training program or ne task only. In the content details of the course content and time, resources required, method of training, who should do the training and who should be trained information should be available. 2.9.2.3. Implementing training The success of the training program totally depends on how well it is implemented. The establishment of a suitable learning environment is one of the most important elements determining the success of the training provided. There should be the right provision for the availability of training facilities as such trainers will be able to gain the interest of the audience, maximize understanding and participation. The method of training used is normally based on the identified needs, training objectives, an understanding on part of the trainees, resources available and the awareness of the learning principle. The most popular training and development techniques used by organizations can be classified as either on the job training and off the job training. (DeCouza et al, 1996) On the job training This is the most widely use method of training as it is simple and less costly to operate. It is normally conducted at the work site and in context of the actual job. Here, there is a close collaboration between the trainer and learner. There are 3 common methods used for on the job training are: learning by doing, mentoring, and shadowing and job rotation. Off the job training Off the job training involves employees taking training course away from their place of work. It might also be provided by the organsation training department or by external providers. The training methods are: Lectures Demonstration Role play Case study Demonstration 2.9.3. Evaluation of training program A review of literature on evaluation of training was conducted to identify methods of effectiveness evaluation for training programs. Upon checking the effectiveness of training, Kenny et al (1992) stated that both during and after the completion of the training, it must be reviewed by training officers, the line manager and if required by the trainee also. Evaluation helps to measure the cost benefits of the training program not only based on the achievement of its laid down objectives. Phillips (1991) defined evaluation as a systematic process to determine the worth, value, or meaning of something whereas, Holli and Calabrese (1998) defined evaluation as contrast of an observed value or a standard quality or criteria of comparison. Therefore, Evaluation is the process of forming value decision about the quality of programs, products, and goals. 2.9.3.1. Methods of training effectiveness evaluation Training can be evaluated in several ways. Beardwell and Holden (1993) have cited some of these methods as follows: Questionnaires : this is the most common approach of obtaining responses about the training program from the trainee. Tests : An important evaluation program for measuring learning. This help to show the change in skills, knowledge or ability of the trainee attribute from the program. These are common on formal courses. Structured exercises : this provides the opportunities to apply the learned skills and techniques under observation of evaluators. Interviews : this is a direct way of gathering information from trainees. This can be formal and informal; individual or group, face to face or by telephone. 2.9.3.2. Approaches to evaluation of training Upon the definition of evaluation, the Kirkpatrick Model was the most commonly reported model. Phillips (1991) pointed out that the Kirkpatrick Model was one of the most well known frameworks for the classification of evaluation areas. This was confirmed by America Society for Training and Development (ASTD) in 1997 when carrying a survey on human resource development. 2.9.2.3. The Kirkpatrick Model: Level one : reaction Level two : Learning Level three : Behavior Level 4 : Results Level one: Reaction Normally, stakeholder reactions provide useful insight into factors that contribute to learner motivation and satisfaction but do not directly measure training results. Typically, reaction data includes the learn ability data collected from trainees and teach ability data collected from trainers. Level 2: Learning The determination of the learning gain is an essential measure. Did the training programs achieve its objectives? Have the trainees mastered the knowledge, skills and attitudes at which the training was directed? If the training does not result in learning, training has no value to an organization. However, there are ample evidences that learning from training is often quickly lost or not transferred to the job in a way that improves employee performance. Therefore, measuring learning alone does not provide adequate evidence of trainings value to the organisation. (Collins, 2002; Dionne, 1996). Level 3: Behaviour It is argued the trainee work performance is the most meaningful and critical factor in judging the training effectiveness. That is, it determines the extent to which changes in behaviour and job performance have occurred as a result of the training event and also involves both the employees and managers evaluation of changes in job related activities. Level 4: Results Finally, the impact of the training event on the organisation performance is measures as it is views as many or equals to more important than individuals work performance. However, organisational performance can only be achieved through individual performance. 2.10.Training and Employees Performance Overview The quality of the workforce and their development through training are key factors in determining long term profitability and the optimum performance of organisations. Therefore, to hire and retain quality employees, it is crucial to invest in their development of their skills, knowledge and abilities so that the individual and eventually the organizations performance can increase. Traditionally, training is given to new employees only. However, this is a mistake as ongoing training for existing employees helps them to adjust to changing job requirement quickly. Figure 5-Bramleys individual model of training Source:Swart et al(2005) The model in general assumes that employee knowledge, skills and attitudes will change by the adoption of a training program; however, this does not always end in that way. If the employee believes, there is an improvement in his knowledge and skills; then it may be safe to also assume that, there will be an increase in the persons individual performance. Through training the persons competencies will be reinforced and will enable him or her to execute the tasks assigned effectively and efficiently. As a result, according to the model, there will be an increase in the overall performance of the organization. Nevertheless, individual job performance is also influenced by the culture and the structure of the organization, by the job design, the reward systems used to motivate employees and the power and politics that exist in the organization and the group processes. Individuals may not achieve their goals and thus not perform well, due to problems associated with the reasons above and not necessarily due to lack of skills. Wright and Geroy (2001), argued to ensure training effectiveness, certain issues must be taken into account. Management style may need to change and training also, has to fit with the culture of the organization. Some companies may offer training programs that, the organization itself is not prepared to accept the ensuing changes. Besides, Eisenberger et al. (1986) proposed that employees are more likely to become committed to an organization, if they believe that the organization is committed to them and management should make efforts to create a positive work environment. Managers, also have the responsibility, to ascertain which factors inhibit effectiveness and make the appropriate decisions, to ameliorate the situation (Swart et al., 2005). Although in theory training seems to increase organizational performance, in actuality the evidence for such a claim is scant. Bartel (1994), in a survey 2.11. Performance Management Definition of performance management Fisher et al (2003) defined performance management as the integration of performance appraisal systems with broader human resource systems as a means of aligning employees work behaviors with organizational goals. Performance management should be an ongoing, interactive process that is designed to enhance employee capability and facilitate productivity. 2.11.1 Criteria for assessing employees performance Productivity Productivity can be said to be the raison dà ªtre of management. According to Armstrong (1999) productivity represents the output of goods and services that can be obtained from a given input of employees. The sources of productivity gains includes (Schiller, 2002) Higher skills- increase in the skills of labour More capital- An increase in the ratio of capital to labor Improved management- better use of available resources in the process. Technological advancement- development and use of better capital equipment. Training leads to the development of higher skill and thus impacts on employee performance. The focus is that employee will not perform better at work no matter how hard they try and regardless of how they want until they know what they are supposed to do and how they are supposed to do it (Zaccarelli, 1997). Productivity is one of the most important elements for assessing employee performance. Motivation and Job Satisfaction Job satisfaction refers to an employees overall assessment of his or her work and work-related experiences, which is influenced by an individuals values, ideals and belief.( Baron, 1976; Chan et al., 2004). Research has been reporting job satisfaction as an important predictor of several critical negative and positive work outcomes. Job satisfaction is a very important motivator for employees performance and has been found to inversely relate to turnover.(Mak and Sockel, 1999; Rust et al., 1996). On the other hand, the offering talented employees training to retain them on their current job function and allowing them to learn to new skills can be utilized to improve employee satisfaction within the organisation (Rice et al, 1991). Evidence suggest that suggests that training is more likely to have a positive impact on employee satisfaction where the employers develop formal, structured approaches to training that link skill formation to job tenure, career progression, recognition and rewards (Heyes and Stuart, 1994). Therefore, these factors lead to the employee being happy and thus performance better. Level of customers satisfaction There is a positive relationship between happy employees and satisfied customers. It would seem that if people feel good about their jobs, their happiness would be reflected in the quality of their work and in positive feedback from their customers. People are an integral part of customer relationship management as it is not just about technology. However, unless the employee is trained and empowered to manage the customer base within the correct organisational structure there will be an impact on the success of the implementation. Employees need to work at the levels of their abilities and have responsibilities commensurate with these if they are not to feel under-utilized which can lead to dissatisfaction. Staff members who manage customers are usually capable of much more than they are asked to do. That is why policies that empower your staff to manage customers better work so well (Stone et al., 2000). Degree of Coordination Coordination is a part of all organizations that have a certain degree of specialization or differentiation among their parts, commanding some sort of coordinated effort across them. A mechanism of coordination can be considered any administrative tool used for achieving integration among different units within an organization. Coordination as compared with control should be less direct and less costly (Cray, 1984). The greater the level of interdependence within the organization, the greater the need for integration. Employees are assessed on the relationship between department and colleagues. Relationship management is very crucial in any orgnisation as it is a social arrangement where all people work together to achieve common goal. Commitment towards the organisation Commitment is a very important concept as it helps to enhance performance of employees. Employees who feel committed to their organisation are more valued and thus perform better. As such investing in people is one important aspect which leads to organisational commitment. Employee may view an effective training experience as an indication that the company is willing to invest in them and cares about them; this, training may enhance their commitment to the organization(Tannenbaum et al., 1991) References Stone, M., Woodcock, N. and Mactynger, E. (2000) Customer Relationship Marketing, Kogan Page, London. Cray, D. (1984), Control and coordination in multinational corporations

Berlin Wall Essay

The Berlin wall caused much strife during its existence. It started with the conflict between the USSR and the Allies and quickly escalated from there. The long years it stood were full of separation and conflict. The story of the Berlin wall is not one easily forgotten. During WWII the Soviet army captured the German city of Berlin. The U.S., Great Britain, France, and the Soviet Union all occupied a sector of Berlin. The United States, Britain, and France occupied sectors in West German and Berlin while the Soviet Union occupied the East. Because of this, when the Cold War started, East and West Berlin were divided both in opinion and territory. The Soviets were communist and the leaders of West Germany were determined that all of Germany should be communistic. The Soviets tried to force the Western powers to give up their control over their three sectors. After their attempts to convince them to give up their control failed, the Soviet side cut West Berlin, which was isolated in the middle of East Germany, from all land and air travel. West Berlin was frozen and starving, but they refused to give in. The Western Allies started what is commonly known as the Berlin Airlift. Great amounts of food and supplies were dropped by plane. West Berlin was not given up by the Allies. East Germany however, did give up the blockade of West Berlin after a year. They determined that something else must be done. East Berlin lost many people to West Berlin. It was said approximately two and a half million people escaped the communistic East Germany simply by crossing the border from East Berlin into the West. A common method of this escape was by subway. At one station they believed that one out of every three people leaving the station was actually an escaping citizen of East Germany. East Germany was rapidly losing its much needed work force. Walter Ulbricht was the man most blamed for the building of the Berlin Wall. In public, he denied all rumors of even the consideration of cutting off the border routes. The denial of the idea of closing the border was a plan to keep the flow of people escaping from increasing before the wall was built. Ulbricht believed that people would desperately flee as soon as they heard of the plans for the wall. On a Saturday night in 1961, the wall was hastily built. Since it was the weekend, the unsuspecting people were vacationing after their week of long work and did not notice the hidden rolls of barbwire and timber slashed away where the wall was to be built. People whose houses stood where the separation was were no longer allowed to use their Western doors. Many used the windows to escape but others were caught by the East police or lost their lives in the process. By the end of the first couple weeks, the windows and doors were sealed off with bricks. The Berlin was more than a sliver of grey concrete. It was watchtowers, guards, guns, barbed wire, and even mines. As determined as many East Berliners were to cross to freedom, they had to risk so much in the process. For many, the risk led to their deaths. The wall was disapproved of by many of the citizens. Because of the sudden construction, many families were instantly separated. The dangers sometimes outweighed the thought of unification. Wanting to at the very least see their loved ones, platforms were built on the West side of the wall and families would find some comfort in mere glimpses of their loved ones. Another negativity of the wall was the sheer conflict of beliefs. Some who did not share the opinions of Germany were quickly forced in a problematic situation. They couldn’t escape from the strict rules of communism. The wall had clearly put them on the wrong side. Family and beliefs were not the only things the wall separated. Though not physically, the Berlin wall drew a line right through Germany. You were either East German or you were West German. There were no in between grey sections. People had to choose sides or their side was chosen for them. Of course, through all this, France, Britain, and the United States stood beside their West German sectors. Tension of the cold was thick. Many showed what side they were on by simply choosing to support East or West Germany. Those who supported the East were Communistic. Those who supported West Germany were supporters of democracy of freedom. The problems within East Germany became more and more obvious as time went on. The most obvious problem was the existence of the wall itself. Many died from the wall and it wasn’t just the start. The problems of East Germany were from social to economic. At first, it was very possible to make it across the wall. People would break through with trucks, dig tunnels, fight their way across, sneak across during construction, forge papers, and all manner of escape. People didn’t let the risk of death keep them from their freedoms and families. Not everyone was lucky enough to make it across. One example of misfortune was a pair of young men who determined to sneak across a weak part of the wall. The first made it successfully across, but his friend did not. Shot by the guards, the young man lay injured and bleeding at the wall. Still on the East side, people from the West could not retrieve the dying young man. The guards waited for him to bleed out before disposing of his body. His screams and cries for help haunted and outraged the people. Fearing a future uprising, the guards were commanded to move bodies and dying individuals out of sight so the people wouldn’t be quite as disturbed by their deaths. After many made it across the Berlin wall, it was decided to reinforce the wall. This reinforcement crushed many people’s hope of ever crossing and killed many of those that retained their hope. The wall at first had been simply a tall concrete wall with armed watchtowers, searchlights, and barbed wire. The reinforcement included a higher fence with a column of concrete that was seemingly impossible to grip, extra fences, tripwires connected to automatic machine guns, and a seemingly hopeless run to safety. Forged papers at the gates were the most likely means of escape after the reinforcement. In East Germany, the work hours were long, the opportunities were few, the tension was high, and the rules were strict. Music was censored and lives were limited. East Germans created a distinct culture because they had to avoid breaking so many rules. You watched what you said and who you were with. Rules in East Germany were not taken lightly because the people never knew when they were being watched. The neighbors, their best friend, their lover, or even their mother could’ve been one of them; one of the agents for Germany’s secret police, that is. The secret police were called Stasi. Anyone could be suspected of being part of the Stasi, since the Stasi used anyone they could. The Stasi was a huge network of agents who watched over East Germany. They had their eyes on over one-third of the population. The Stasi spied on, arrested, and manipulated countless people. They picked up on plans of escape, wormed their way into possible rebellion for information, and even kept records of their target’s lives in incredible detail. Along with the suspicious activity they stored in the files pertaining to the lives of their targets, they included elaborate plans for their victims. These plans interfered with lives, ruined marriages, kept certain kids from getting into universities, and even destroyed futures. They didn’t stand for any possible uprising. They snuffed out any spark that could lead to anything contradictory to East Germany’s policies. Pollution was a major problem in East Germany. Their pollution was actually so great that it actually caused diseases not seen since Victorian ages. The diseases killed many of the people. People started environmental programs to try and do something about the pollution and stop the tragedy of diseases. A bit of freedom was the beginning of change and the start of hope in East Germany. The rules were loosened on churches across the land. Slowly but surely the church became the centers of protest across the land. People came to meetings with the accepted excuse of praying for the country or involvement at environmental programs at the church. The church quietly became the center of reformists. Because of the hope sprouted by the reformist church meetings, a protest of seventy-thousand people occurred openly in East Germany. The world watched in tense concern. Many feared that East German officials would use the â€Å"China option† where they would simply massacre the protestors like what had recently occurred in China. The world was shocked when there seemed to be no immediate consequences for the massive protest. The opening of the Berlin wall was a great event and actually an accident. After many years of separation and conflict, one man’s misunderstood words caused the great event. While an East German bureaucrat, Gà ¼nter Schabowski, was at a press conference on November 9th, 1989, his uncertain answer to a simple question was misunderstood. The misunderstanding was that travel restrictions were being lifted and effective immediately. People flooded to the gates of the wall demanding access they believed was granted by one man who simply misspoke. These people could not be turned away though what Schabowski had said was far greater than what the authorities had intended to do. For hours, the gates remained closed and the guards were hammered by questions and demands from the eager citizens. The guards tried to get an order from the higher ups, but at the time the whole system of authority was in chaos and disorder. No one seemed to know what to do. Finally, at about 11:30 that night, after countless meetings and useless phone calls, the order went out to open the gates. This order was given by Lieutenant-Colonel Harald Jà ¤ger, the senior officer in charge at the Bornholmer Strasse border crossing. When he gave the order, people flooded through the gates and climbed the walls. Harald Jà ¤ger later gave his report of what had occurred that night. It was apparent to all of the guards that something was amiss and that people would soon show up trying to pass through the gates as they watched the press conference. They were all surprised at the words spoken at the press conference but did not understand the enormity of the consequences that were to come. He said, â€Å"All I thought was: Now you’ve got to find out whether they’re allowed to travel immediately or not.† He called his higher up to ask, but it was apparent that he was just as surprised and simply ordered him not to let anyone through. Harald apparently held countless meetings with his officers all that afternoon. Everyone demanded that he tell them what to do. Fearing the consequences of letting them through and wanting to know if the men would support his decision, he had asked if they should open fire on the people. When the guards objected he knew what he must do. The people were bound to get hurt in a scuffle if he waited too long so he reached his decision. â€Å"†¦ I gave my people the order: Open the barrier!† The destruction of the wall was almost immediate. The world watched in awe as the socialistic experiment on East Germany quickly crumbled as the East and West citizens of Germany united in joy and merriment. The opening of the wall was well received by the West. That very night, they made their way over the wall to join and rejoice with their Eastern brethren. Even the Chancellor of West Germany called the current President of the U.S., George H. W. Bush, and ecstatically relayed the events of the night. They knew Germany would never be the same. Despite all the official government problems with the occasion of the wall falling, the East and West strove to be together again. After forty years of that cursed wall, the people finally had their chance to tear it down. They gladly took that chance. The people of the White House shared the Chancellor’s enthusiasm and encouraged the President to go to Germany. The President refused to take any credit in the happening, â€Å"This is the German moment.† The people of Germany jumped at their chance to seize freedom and unity. They feared they would lose the opportunity as abruptly as it came. Germans wanted freedom to decide their own fate. They wanted the freedom to see their loved ones and choose who they wanted to lead them. They wanted to be a whole nation again. As joyous as the world was at the fall of the wall, many feared what was to come. How would the world take it? What would it lead to? How was the Soviet Union going to handle this? The very symbol of socialism had fallen by the hand of its own people. Was this reunion of sides going to be allowed? Or would there be a violent backlash? Leaders and the world watched anxiously. There were so many consequences that could occur, but everyone simply wondered whether they would be positive or negative. Mikhail Gorbachev was a name well known among the USSR. He was the man who was trying to reform the Soviet Union from the inside. He was trying to make a stronger, greater Soviet Union, but even his supporters in the Soviet began to think he had taken it too far with the opening of the wall. It had never been his intention to open the wall, but it had happened on his watch. Everyone feared that this would somehow end up in violence. A man by the name of Helmut Kohl, the Chancellor of Germany, saw this even at the opportunity to reunite Germany. Many called his idea premature and the very idea made people uneasy. The concept of having a reunified strong Germany struck concern into Germany’s neighbors and nations around the world and Europe. People feared another German attack and the change that could take place. As much as the concept of reunification was feared, it turned out that it was actually out of the European leaders’ hands and in the people’s. The people of Germany started the ball rolling on the reunification of Germany. Within the first day of the fall of the wall, over one million East Germans made their way to West Berlin and within the first week over nine million had done the same. It was almost a large party. The mood was full of celebration. They were even given a welcome gift as they came. People went to shop and to drink and simply enjoy the fact that they were now on the other side of the wall and the gates were open. It became extremely obvious to the East Germans that personal freedom meant that they had the option of doing whatever they desired to do. They could lose their job, try to find a new one, follow their dreams, and they all had to change. The economy of East Germany couldn’t avoid a drastic change. It was unstable, but the Germans determined that they were going to do what they wanted. Though it was roughly known that the German Chancellor Helmut Kohl desired a reunified Germany, he had not officially stated any means of doing so. Upon hearing that others were already beginning to discuss their own plans for East and West Germany, the Chancellor felt that he should hold a speech that stated his views and display his plan for reunification. The plan was supposed to take about five to seven years to complete and had been carefully crafted within his group of trusted advisors. Helmut Kohl had not consulted with his allies before holding his bold speech for the entire world to hear. Had he done so, he believed the speech would have never been made. Thought his speech had been a gamble, it was one that paid off. Because of it, he was personally identified with reunification of Germany. The United States decided to fully support Kohl’s plan for reunification. The only problem now lay in convincing the leaders of France and Britain that a reunified Germany would be beneficial to Europe. While world leaders struggled to decide what was to be done and what Germany was to become, the people of Germany had gathered their own to plan their new land. They continued to daily tear down more and more of the ugly wall that had so long separated them. The people didn’t want a Germany that was simply a larger West Germany, but a completely new Germany that took both the best of the West and the East. The people planned on taking this into their own hands and becoming a form of Democracy. The group who were planning such an event was a group called the Round Table. Among one of the first things they strove for was and open election in East Germany, something that hadn’t been done in over sixty years. Of course, not everything would turn out right. One major cause of concern was when the Round Table had received a report that things were turning violent. An angry mob was reported storming the East German secret police’s, the Stasi’s headquarters. They feared that many were about to be lynched, but to their surprise, the mob simply stormed the headquarters and no violence actually seemed to occur. They now found themselves surrounded by mass amounts of information, years of spying and reports written about them. They had overthrown the Stasi. In March of 1990, East Germany held their first election in over sixty years. Many were torn between voting for the conservative West German runners since they had the money to pull them out of their bad economy and the Democratic candidates of the East that had pulled them out of their situation in the first place. As time when on, many began to realize that the people were pushing for materialism over all other things. The feeling of revolution was quickly dying out as they voted for those they believed would grant them prosperity. It was all too obvious that a new Germany was no longer desired. The East simply wanted to be like the West. The majority of the elected officials were rich conservative Westerners and only a handful of reformists. A major problem with the gradual reunification was the horrid, polluted economical state of East Germany. It dawned on many Westerners that they would have to pay a lot of the price for the East German pollution problems. It was estimated that as the lifelong security of jobs guaranteed by the strict East Germany was destroyed that almost every two out of three jobs were lost by East Germans. They abruptly had to face the reality of joblessness and strive to succeed in other places. Despite the hardships, Germany was indeed being unified. One of the symbols of reunification was when the leaders of France, Germany, the United States, Great Britain, and the Soviet Union gathered to watch the removal of checkpoint Charlie, one of the focal points of the Cold War. The Soviets were facing the reality that their East German socialist empire was quickly meeting its end. The last thing blocking German unification was Soviet permission for Germany to join North Atlantic Treaty Organization (NATO). When this was surprisingly overcome, there was nothing standing in the way. On October 1st, 1990, the four victorious powers formally gave up their rights to Germany. Germany was now free to do as they chose. Less than a year after the fall of the Berlin Wall on October 3rd, 1990, Germany became one nation. Mikhail Gorbachev was forced to resign and blamed for the fall of the Soviet empire who suffered a great loss when Gorbachev chose to give up Germany. Despite this, he believed he had done the right thing in the end. The leaders involved in the reunification of Germany all seemed to stand by their decisions that it was right to let Germany choose who it was going to be. The Cold War had peacefully ended. The people of East Germany were now free and unified. They were free to enjoy music, free to see their families, free to choose their own jobs, free to say what they wanted, and free from fear of the Stasi. East and West Germany ceased to exist, and though there is still a distinction between the people, they grow more and more unified as time passes on. Parts of the wall still stand, but people now simply see it as a reminder of what had been and a way to urge themselves to look to a greater future.

Human Language Is A Wonderful Way With Communicate

Human language is a wonderful way to communicate. Sometimes I think what this world would be like with any languages. It is even more wonderful that in three fast short years a child can hear, mimic, explore, practice, and, learn language. There is no genetic thing that leads a child to speak English or Spanish or any other language. Language is something person has be to learned. We are born with the capacity to make 40 sounds and our genetics allows our brain to make differences between sounds and objects, actions, or ideas. The combination of these capabilities allows the creation of language. Sounds come to have some kind of meaning. Babies babbling sound life for an example, ma - ma - ma of the infant becomes mama, and then mother. The sounds of a toddler practicing language is really them copying the rhythm, tone, volume, and non-verbal expressions they see in the adults. Language is one of the greatest gifts that is given to children. 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Share Repurchase And Taxation Among The UK Companies - Free Essay Example

Sample details Pages: 10 Words: 2882 Downloads: 4 Date added: 2017/06/26 Category Finance Essay Type Analytical essay Tags: Taxation Essay Did you like this example? The aim of the research project is to examine the relationship between share repurchase and taxation in the UK companies. Project Objectives To examine the motivations of share repurchase in the United Kingdom. To analyze the recent trend in share repurchases over last 20 decades among UK companies. To explore the relationship between shares repurchase with taxation in the UK companies. To explore the impacts of taxation on share repurchase activity for UK companies Don’t waste time! Our writers will create an original "Share Repurchase And Taxation Among The UK Companies" essay for you Create order Context For decades, most of the corporations are preferred to pay out cash in the form of dividends rather than share repurchases, despite the relative tax advantage of capital gains over ordinary income. In some countries, such as U.S. and UK, companies can buy back their own shares in the stock market, also known as a share repurchase. In the last 20 decades, share buybacks become extremely popular in the United States. According to aggregate data from Compustat, companies announced share repurchases increased from 4.8 percent in 1980 to 41.8 percent in 2000, while dividends only grew at an average annual rate of 6.8 percent (Grullon Ikenberry, 2002). Researchers also found that during 1985 to 1999, corporations in the U.S. announced intentions to repurchase about $750 billion of stock (Vermaelen Rau, 2002). Moreover, studies show that from 1999 to 2000, industrial firms spent more money on share repurchases than on dividend pay out, and that is the first in history, share repurchases programs have become more popular than dividends (Grullon Ikenberry, 2002). What are the reasons for the companies buy back their own shares. Jensen (1986) pointed that firms repurchase stock to distribute excess cash flow. A share repurchase distributes cash to existing shareholders in exchange for a fraction of the firmà ¢Ã¢â€š ¬Ã¢â€ž ¢s outstanding equity. This hypothesis has been supported by Stephens and Weisbachà ¢Ã¢â€š ¬Ã¢â€ž ¢s (1998) study. They found share buy backs have a positive relationship with the level of corporation cash flow. Moreover, they also found a negative relationship between share repurchase and prior stock returns, which means, firm repurchase when their share prices are undervalued in stock market. This theory has been supported by Vermaelenà ¢Ã¢â€š ¬Ã¢â€ž ¢s (1981) study. He found that firms repurchase stock when they are undervalued and have the excess cash to distribution. In later studies, researchers pointed that firms may repurchase stock t o increase their leverage ratio (Opler and Titman, 1996). For the tax perspectives, researchers pointed that tax changes have a major impact on share repurchase. In the UK, companies are sensitive to tax environmental changes. For example, studies shows that in 1994, there were significant increase in the number of open-market stock repurchase programs. This cause by the introduction of tax favored agency share repurchases programs (Vermaelen Rau, 2002). But in 1996, when the tax credit given to tax exempt pension funds in agency buybacks was abolished, the number of the companies announced share repurchase fell significantly. However, in 1997, when all tax credits were abolished, share repurchase became popular again. As some evidence showing above, share repurchase become more popular than any time in the history. Researchers stated that the majority of companies start to use cash payouts to shareholders through share buybacks rather than cash dividend (Grullon Michaely, 2 002). Therefore, it is important to better understand the motivation behind the recent surge in share repurchase activity. Although, share buy backs growing popularity, most of the established studies focus on the U.S. firms. Whether the share buybacks in UK as popular as in the U.S., because the different of tax and regulation systems between this two countries. The aim of the research will not only enhance our understanding of corporation pay out policy but also examine the share repurchases programs under UK taxation system and how this impacts effect on UK companiesà ¢Ã¢â€š ¬Ã¢â€ž ¢ payout strategies. Moreover, the reason for me to focus on the UK companies rather than other EU companies because there have lacks of share repurchase activities in Europe countries. According to the Securities Data Corporation (SDC) reports shows that during 1980 to 1998, there were only 489 stock buybacks announcements made by European companies. And nearly 60% of those announcements were made by the UK companies. There have various reasons for the lack of share buy back activities in EU companies. Firstly, share repurchase is still illegal in some European countries, such as France and Germany. Secondly, some countries proposed specific tax provisions to discourage share buy backs. For example, in Netherland have the high taxes on dividends and low taxes on capital gains. Thirdly, the share repurchase do not fit European company culture. Traditionally, most European companies focus on maximizing stakeholdersà ¢Ã¢â€š ¬Ã¢â€ž ¢ value rather than shareholdersà ¢Ã¢â€š ¬Ã¢â€ž ¢ value (Vermaelen Rau, 2002). Moreover, in European countries the stakeholders (such as managers, banks) prefer to maximize the size of the companies rather than focus on stock prices. They are not interested in share repurchase. Finally, there are little relative studies examine the relationship between share repurchase and taxation with UK companies. Literature Review 4.1 Introduction This search focuses on share repurchase and taxation among UK companies. Bibliographic database used were Business Source Premier (EBSCO), Econo Lit with Full Text (EBSCO), JSTOR Business, Psyc ARTICLES (CSA), Science Direct and Swets Wise. The details of these and full text database were searched in Table 1. The total numbers of retrieved articles were 30. Keywords used were dividend, share repurchase, buybacks, payout policy, dividend policy, taxation and regulation with limited to academic journals and non-academic articles on the last 20 years. Table 1 Database Number of retrieved articles Business Scource Premier (EBSCO) 7 ConoLit with Full Text (EBSCO) 6 JSTOR Business 6 Psyc ARTICLES (CSA) 3 Science Direct 5 Swets Wise 3 4.2 Motivations of share buy backs There are number of reasons a firm repurchase stock. First, Share repurchase could improve the retained profits. Because when companies purchase their own shares, the remaining number of shares left in the public will lower. The reduction of shares in the public means the earning per share will increase even the profits remain the same. So when companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s share price undervalued, repurchasing shares may still result in a strong return on investment. Secondly, firms may use share repurchase announcements to signal the market that their shares are undervalued and the positive stock price reaction at the announcement of share repurchase should correct the misevaluations (Dann, 1981; Vermaelen, 1981). However, Ikenberry, Lakonishok, and Vermaelen (1995) argued that this increase may not be sufficient to correct the misevaluations, particularly in the open market share repurchase- programs. According to Stephens and Weisbachà ¢Ã¢â€š ¬Ã¢â€ž ¢s (1998) study, they inves tigated on 450 open-market share repurchase programs in the U.S. between 1981 and 1990. They found that between 74% and 82% of the shares targeted at the time of announcement are later repurchased and this actual share buybacks are negatively related to stock price performance after the stock repurchase. Thirdly, share repurchase may increase the leverage ratio. The leverage ratio will increase when a firm distributes its capital. Therefore, assuming that an optimal leverage ratio exists, a firm may more likely to buy back their own shares when their leverage ration is below the target ratios (Bagwell Shoven, 1988). Fourthly, companies where there are few opportunities for growth, share repurchase may the possible way to improve the earning per share in order to meet executives or managersà ¢Ã¢â€š ¬Ã¢â€ž ¢ targets. Thus, companies structures may affect their decisions to buy back own shares. Finally, share repurchase make a takeover more expensive. Because share buybacks avoid the accumulated amount of cash in the firm, when a firm with a strong cash position but needs limited spending on capital will accumulate cash on balance sheet, therefore, it make the firm more attractive for takeover. However, recent studies shown share repurchases are only benefit shareholdersà ¢Ã¢â€š ¬Ã¢â€ž ¢ wealth in the short term, but do not add any long term value to the company (Guay and Harford, 2000). Eberhart and Siddique (2003) did a survey based on 7,079 share repurchase programs between 1981 and 1995. The results showed that after the share buybacks, there were a slightly increase in the number of share outstanding. Often the share purchases in the share buybacks programs are used for employee stock options and stock grants. As one article suggested, share repurchases in general are just à ¢Ã¢â€š ¬Ã…“backdoor compensationà ¢Ã¢â€š ¬? for company employees (Henry, 2006:74). 4.3 Taxation with share repurchases Tax changes have a major impact on share repurchase. Study shows that in 1994, there were significant increases in the number of open-market stock repurchasing programs cause by the introduction of tax-favored agency share repurchase programs (Vermaelen Rau, 2002). Grullon and Michaely (2000) also find that the differential tax between capital gains and dividends is a significant determinant of the market reaction to share repurchase announcement. Grullon and Michaely (2002) pointed that in the U.S., corporations start to substitute share repurchases for dividends because capital gains are taxed at more favorable rates than ordinary income. They found that even in 1986, the Tax Reform Act greatly reduced the relative tax advantage of capital gains, but there was still a significant positive difference between the marginal rate on ordinary income and the marginal rate on capital gains. Raghavendra and Vermaelen (2002) studied on the relationship between taxation and share buybac ks among the UK companies. In their studies, the result showed that buyback activity increased significantly when the agency buybacks introduced during 1990 to 1998 in the UK. This consistent with the hypothesis that taxation has a significant effect on share buybacks. Moreover, they also pointed that the ability of pension fund to recover dividend credits has a major impact on the buyback activity in the UK (Raghavendra and Vermaelen, 2002). However, some researchers have argued that taxes alone do not explain the extent of repurchases activity in the U.S. Brav at al (2005) stated that managers view tax considerations as of second important factor in the choice if disbursement mechanism. Ikenberry et al (2004) suggested that since the tax changed in 2003 in the U.S., the dividend had increased significantly. He also pointed that although dividends in the U.S. remain slightly tax disadvantages, that due to the delay of the capital gains by the investors. However, based on the results from research conducted in the U.S., the extent to whether the taxation dominant the managersà ¢Ã¢â€š ¬Ã¢â€ž ¢ decisions announce share repurchase rather than dividends is still an unresolved issue. 4.4 Regulation framework in the UK In order to better understanding the effect between taxation and share repurchase among the UK. It is important to develop our knowledge in the legal and tax frameworks governing U.K. share buybacks, moreover, to recognize the difference between these frameworks and those in the U.S. In The UK, share buybacks allow the company to manipulate its stock price. In order to avoid the share repurchase reduce creditorsà ¢Ã¢â€š ¬Ã¢â€ž ¢ benefits, the Companies Act states that only distributable profits or the proceeds of fresh issue of share can be used to finance the purchase. Moreover, the companies are not allowed to announce share repurchase programs during the period when directors are not allowed to trade in their companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s shares. This means that in the UK, share repurchases are not allowed in the 2 month period preceding the publication of annual earnings. Finally, compare with the U.S., in the UK, share repurchase are much less flexible tool for capital manage ment. All the firmà ¢Ã¢â€š ¬Ã¢â€ž ¢s buy-backed shares may ask to cancelled, because the UK regulators more concerned about the preemption rights of shareholders (Vermaelen Rau, 2002). Not like in the U.S., the regulators more concern about the à ¢Ã¢â€š ¬Ã…“treasury stockà ¢Ã¢â€š ¬?, such as repurchased shares can be re-issued without shareholder approval (Vermaelen Rau, 2002). Conclusion There are various reasons for firms to announced share repurchase, although share buyback activity become extremely popular in the U.S., but the UK repurchase scene is different from the U.S. scene in many respects. Although the UK is the European country where buybacks are most popular, but it is still relatively small numbers of share repurchase programs announced compare with the U.S., where about 100 U.S. firms announce open-market share buybacks each month. However, the UK taxation system may make share repurchase less attractive than they are in the United Stated. What the impact of taxation system on share repurchase announcement among UK companies? How these impacts affect UK companies in last 20 years? Which industry is more likely to announce share repurchase program? The proposed research will review the potential relationship between taxation and share repurchase among UK companies. 5 Research Method 5.1 Desk Based Research The desk based research used to my study. Because desk based research is very useful to get a broad understanding of the topics and is relatively easy to use (Bryman and Bell, 2003). The data usually used in desk based research is referred to as secondary and includes collecting information from third party sources such as company website, magazine articles, books, journals, published statistics and marketing research reports (Collis Hussey, 2003). There are many advantages to using secondary research. This includes the relative ease of access to many sources of secondary data with little or no cost to acquire. The use of secondary research may help researcher to clarify the research question and help align the focus of large scale primary research. However, there are also some disadvantages of using secondary research. Sometimes, secondary data may not presented in a form that exactly meets the researcherà ¢Ã¢â€š ¬Ã¢â€ž ¢s need and the research may not get the full details of th e research to gain the full value of the study. Moreover, with companies competing in fast moving industries, the secondary research may out of date have little or no relevance to the current market situation. 5.2 Reasons of using Desk Based Research There are several reasons for me use desk based research. First, there is a tremendous amount of literature available, but limited studies focus on the taxation and share repurchase among UK companies. Therefore, the desk based research may help me to limit the articles to focus on my research topics. Second, the desk based research may possible to obtain companiesà ¢Ã¢â€š ¬Ã¢â€ž ¢ annual report and account from companiesà ¢Ã¢â€š ¬Ã¢â€ž ¢ websites. Because the UK Companies Act (2006) requires all quoted companies to publish their annual reports available on their website. (CA S430). Finally, in order to explore the relationship between taxation and share repurchase among UK over 20 years. The specific data need to be obtained, such as market-to-book ratio, return in capital employed, equity to debt ratio, market value. All of that information could obtain through on-line data base, such as Data Stream, which can be used in Aston Universityà ¢Ã¢â€š ¬Ã¢â€ž ¢s library. Howeve r, some of the information may out of date or the results may not be directly related to UK companiesà ¢Ã¢â€š ¬Ã¢â€ž ¢ situation. And the amounts of information available may be very limited. Also, due to the lack of study on relationship between taxation and share buybacks under UK taxation system, it is difficult to find sufficient sources from limited useful information. 5.3 Sample Section and Analysis Method The company shares repurchase announcement information been collected between 1 January 1999 and 31 December 2009. The information obtained from various ways, including London Stock Exchange (LSE) online service, UK-wire Company Announcement service, news articles from the Financial Times. The independent variables of stock returns and data have been provided by DataStream. Moreover, the data and sample had to satisfy the following criteria: The repurchase must exclusively be ordinary shares The firms is listed in the UK Repurchases announced during the last quarter of 2001 are excluded to dampen the volatility effects of 11 September 2001. Only the first announcement of share repurchase programme is included. The sample includes all open market share repurchases, private repurchases Descriptive statistics of the repurchases and independent variables used in this study to summarize and organize the companies repurchase data. Then, the main tax regimes divided i nto four equal periods during the sample period. The repurchases announcement data will be analyzed into the four tax periods. The correlation matrix on the variables will be needed to analyze whether there is the correlation between companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s stock returns and share repurchase. Finally, the result will be interpreted and presented. Ethical issues The following ethical issues will be conducted with this research: Recode the data and results accurately Follow the Aston University rules on plagiarism Describe and discuss the research result objectively Task List Task Problems Solutions Obtain journals and literatures about firmsà ¢Ã¢â€š ¬Ã¢â€ž ¢ dividend policies, share repurchase and taxation Tremendous amount of literature need to reviewed Limit search to articles that study on share repurchase within UK companies Obtain the information about the firms announced share repurchase programs within the UK for last 20 years Relatively small data need collect from numerous information Limit the research to companies announced share buybacks listed by data stream between 1989 and 2009 in the UK Create a list of relative UK companies Which company should include The company announced share repurchase over million Obtain the information about taxation and regulation changes over last 20 years in the UK A lot literatures need to reviewed Limit search to articles about taxation and regulation changes in last 20 years Find the impact of taxation change for share repurchases activity A limit studies/result on this area, especially for UK companies. Analyze the data on my own, use the statistical methods to explore the relationship between taxation and firmsà ¢Ã¢â€š ¬Ã¢â€ž ¢ payout policies. Write up report Easy to exceed 15000 word limit Work with supervisor to only include the most relevant information Review the dissertation before the submit it Easy to make some grammar, spelling mistakes. Ask my friend read it, see whether the dissertation make sense for them. Help me to find the grammar mistake.