Mr Makoloyis Personal Profile and View Assignment

Mr Makoloyis Personal Profile and View - Assignment Example Mr Makoloyi says that the problems emanate from the fact that BA had persisted that the crew accept four-year pay pact. This was to see a freeze in actual pay up to 2014, something to which the crew has countered by giving the company a three-year pay cut pact. Although BA management has already rejected this. In addition, the company refused to commit to making longer the legitimacy of the industrial action ballot to let union staff members to be balloted on any suggestion from BA. Consequently, as Modlock (2010) observed, it resulted in another strike, third to be precise, ballot in five months following the rejection of BA’s proposal by cabin crew. Moreover, BA’s unwillingness to address Unite’s concerns about the impact on existing crew gave that the airline is pushing forward with its new fleet plans and especially on how the routes will be allocated among already functioning and the latest crew in the ages to come. Mr Makoloyi also observed that heightened tensions at the BA is caused by the manner in which the management relates with the employees and the stringent rules it has put forth to curb employee misbehavior like excessive drinking, and this has lowed the motivation of employees. Equally threatening an issue, related to pensions. Mr. Makoloyi explains that the announcement by the company in 2003 that it would close its ultimate remuneration scheme to all recently employed workers due to a major shortfall in the pension’s fund led to BALPA, a trade union that stands for BA pilots, threatened industrial action if the final remuneration scheme was reduced to a less generous package. The threat was approximated to have cost the company roughly eighty million pounds while the union projected that the adjustment would make a number of their members to lose 36% of their final pension. BALPA has roughly 2500 members (Modlick 2010).Mr. Makoloyi said that between 2005 and 2006, BA held mo re than 500 briefings with staff pertaining the same issue. All these negotiations with four unions yielded little given that each of these unions had their own unique issue of concern.

Presumed Innocent by Scott Turow Case Study Example | Topics and Well Written Essays - 1250 words

Presumed Innocent by Scott Turow - Case Study Example The judiciary system is also viewed as inefficient in handling crucial cases as a serious murder case involving their own prosecutor, is lower to grudges. Instead of the prosecutors trying to get the real culprit behind Carolyne’s murder, they instead turn it into a selfless affair and a fight towards key positions (Switz 6). The prosecutor, Molto at the time of the case, had been interested in the chief deputy prosecutor job since it would give him a better place to carry out his evil deeds. Indeed, Molto got the opportunity and framed his fellow prosecutor on charges that he had earlier called the deceased on the night of the murder plus his fingerprints were on the deceased glass (Peter 7). Sabich realized his arrest was a setup and tried to find the cause, only to find the true killer of Carolyne. Rusty’s decision in taking the job assigned to him by his boss, Horgan was a good idea, though the situation at that time was really messed up. First, a few months earlier before the murder of Carolyne, he was in an affair with her despite being married. Secondly, her wife, Barbara knew about his extramarital affair and brought hell on earth when such an issue came about. Again, taking a case of his ex-lover was really a clever thing (Bergman & Asimow 30). Rusty’s decision of accepting to take the murder case eventually led him to the culprit and also under covered some evil deed taking place in the courtroom. Rusty later in the story, he learns that one of his friends killed Carolyne to cover up some corruption deals (Maslin 8). He also discovered that his arrest had much more in it after he was whispered by someone that Molto was after his job. In the end, Sabich is viewed as looking for evidence that links up to the murder and also tries to his innocence. The movie In the movie Presumed Innocent, the director, Alan J. Pakula copies the plot of the novel Presumed Innocent written by Scott Turow. In this film, Harrison Ford plays the role of a prosecutor, Rusty Sabich. In the movie, Rusty is forced to undertake a murder case of, Caroline, a fellow prosecutor that had found murdered as the movie starts in her apartment. In a flashback, Caroline is viewed as a conniving mantrap that uses her wile to prosper in her career (Alan 3). In the movie, Sabich is assigned by his boss, Raymond Horgan (Dennehy), to handle the murder case. On the hand, though Sabich tries to take the case, he is forced by his boss to take in. At that moment, Sabich is faced by a decision whether to take the case or not since he once used to be a lover of the deceased. Twists in the movie unfold after Horgan loses his seat for Nico Della. Sabich is then arrested after evidence was found linked to the murder. Sabich then appoints Sandy Stem to be his lawyer (Alan 97).

Hamlet Essay Example | Topics and Well Written Essays - 750 words - 1

Hamlet - Essay Example So Hamlet had to study well into the matter and handle the murder plan successfully. To understand the fact that his uncle killed is the Father is not an easy task for him. For this, he had to do something very calculative and for this he decided to act insane in front of people. Hamlet did not want to kill a person who is of a clean heart. What if he killed Claudius and he turn out to be innocent? In that case, Hamlet will turn out to be guilty and he would not be able to live in peace. The reason for Hamlet’s hesitation is that he doesn’t want to kill his uncle who is in a state of clean consciousness. So he acted insane and thought of setting a stage for a play which resembled to the story of his father’s life. The revenge of his Father’s killer was boiling in his body but he took time to take revenge, because he did not want to be wrong in the end. Hamlet, wanted to kill Claudius when he is guilty of his evil deed of killing the hamlet’s father .The reason is valid because then Claudius would himself realize that he deserves death from the hands of Hamlet. In a real sense, Hamlet gets only one chance to kill Claudius, but he staged a drama wherein the story resembled that of his father’s murder . Hamlet has lost his Father and definitely wants to kill his murderer. But now the murderer has become his uncle and step-father, as his mother married his uncle, who is the murderer. Here Hamlet has to confront many problems in order to reach to Claudius, who is his Father’s murderer and the king of Denmark. He had devised a series of attempts to block the reign of Claudius and stop the royalty of the new King. By killing Claudius, Hamlet will give peace to his Father’s soul and convince his mother, that he is the murderer of her ex- husband, who is the real king of Denmark. Even Hamlet would be convinced that he is killing a person who is guilty of his own evil deed. The story ‘Hamlet’ is central ly based on the revenge and how the young prince plans to kill his Father’s murderer. In this story, Hamlet’s mother is maintaining an incestuous relationship as she marries the brother of her ex- husband. Hamlet’s mother the Queen, does not have any involvement in the killing of King Hamlet. The delaying of the killing of King Claudius is the most controversial question in the whole story. People are alarmed to find that knowing the killer of his Father; he is not doing anything to fulfill the revenge. He knows he will kill the murderer of his Father, the then King Hamlet. But the question is who killed the King in real. He wanted to confirm the killer, then take a solid reaction. So here by delaying the death of Claudius, Hamlet has done justice to himself and the Claudius. This story also portrays that Hamlet is insane and this is to show people that he is not sure or unsure about his Father’s killer. This also leaves a doubt in the mind of the reader and the audience. People really feel that he has gone mad until they find the drama arranged by Hamlet really kills the Claudius. The Hamlet could have killed Claudius very earlier, which could have spoiled, the whole thrill of the story. Here just acting insane, Hamlet played a game with Claudius of

An Analysis of George Stiger Criticism of Adam Smith Essay

An Analysis of George Stiger Criticism of Adam Smith - Essay Example Smith refrains from making reference to self interest in the analysis of the popular passage motives but rather resort to the phrase ‘self love’. From these two phrases ‘self interest’ and ‘self love’ a misconception can arise that the two are synonyms. Criticisms of Adam Smith The most indebted intellect by Adam’s work is Hirschman. In his work on interests and passions, there has been evidence of relationships between moral philosophical development and modern model on self interest and rationale for state theory. Adam’s article contributes much support to Hirschman’s work and emphasizes it more. There are certain instances when Smith contradicts himself. This should not be considered as failure as far as his works is concerned. Similar to his classical ideologies, Smith fronts an argument that, in order for one to get the truth, an issue being debated should be viewed from all perspectives (Miller, 1993). Clarity on this has been made on moral sentiments theory, where Adam adopts debates on commerce corruption influence, and consequently denies them to be splenetic philosophy. From Smith’s perspective, the nations’ wealth was a significant reconciliation of human’s political and social idea on fruits of commerce. From Hirschman’s idea, an argument arises that the reason to economic adventure as an independent science is because of Smith’s republican leanings. ... From the article, the dominating characters did not place themselves in a focal point with consideration on their contemporaries and predecessors. Focusing on ways authors perform their own systems of construction, they always reject the fundamentals of other authors in order to build theirs. Traditionally, economists persist that the behavior of having self interest hold particularly for activities in economics. Attempts have been made to take self interest in a broader perspective as the initial principal in analyzing the behavior of individuals. There are claims that a comprehensive approach to economics is that which can be applied to all individuals, regardless of the price behaviors or imputed prices, infrequent or recurring decisions, minor or large solutions, mechanical or emotional ends, poor or rich people, children or adults, women or men, stupid or bright, doctors or patient, students or teachers. Adam smith refrained from the fact that as much as an individual’s e conomic behavioral pattern is always predictable there always few instances when the pattern changes (Smith, 1776). Another intellect asserted that in case the universe in physical form was a subject to motional law, then the universe in moral form will be a subject to interest. In General, self interest stands out as the only motivation for human action. George Stigler conveys a message that is used by many economists as he reiterates that the quote on baker, brewer and butcher contributes to the primary principle and to the modern economics. As much the interpretation of self interest is easily floated in mind, it is a testimony of interest paradigm. Initially, the idea to pursue self interest by agents of independence would lead to

Henry Fayols Legacy And Contribution To The Management Science Assignment

Henry Fayols Legacy And Contribution To The Management Science - Assignment Example He therefore developed management ideas through personal experience as Chief Executive, and wrote ‘elements’ of administration in â€Å"Administration Industriele et Generale†, which was published in 1961 (Wren & Bedeian 2009). Abilities that he felt were essential in a manager include physical, mental and moral qualities, general education, and specialized knowledge and experience (Wren & Bedeian, ). The absence of management training in schools made Fayol see the need for management theory and identified fourteen principles of management (Fayol). He was a French management theorist. He was one of the most influential contributors to modern concepts of management, having formulated five primary functions of management- planning, organizing, commanding, coordinating and controlling ( Fayol). Henri Fayol is generally referred to as the Father of Modern Management theory (George, 146),in view of his extraordinary and revolutionary input to administrative management. Indeed, he is to administrative management while what Taylor is to scientific management. He later died in 1925 in Paris France. History of management science The management historians trace back the early origin of management and their pioneer ideas, which is the foundation of our modern formative thinking, its founders as well as well their contributions in the field d of management. As noted by early scholars such as McMahon and Carr (28), there is an increasing distance between the student and scholars of today and early scholars such as Henry Fayol among others. Through a critical examination of early biographies and early accounts, the relationship between the early and today’s management thought is established. In this case, we may gain a more complete understanding of own intellectual, reflections, and study of those of who have gone before and continue to study from the past as it forms the present (Bedeian) One such scholar is a Henry Fayol, who is thought as being the father of modern management science. As noted in Charles de Freminville, a synopsis of Fayol’s and Taylor’s thinking is explored. In this paper the modern management science is examined and its contribution to the modern field of management. It studies some of his theories, procedures, tools and techniques and it affect the modern management thought amongst scholars and student of management. His legacy and thoughts are unearthed to bring to light the dynamics of management and how the present scholars have been refined or been altered it. There is need to distinguish between management science and arts and note the difference and this influences the managers’ roles. As noted, the management as art is older as compared to the management as a science. Henry Fayol’s contribution to the body of management thought will be explored. Literature review: what other have said about Fayol Many models have explained the Henry Fayol and his contributions to the field of management. One such theory is the influence of Fayol’s work on other scholars in the fields of management. Gullick ( 13; 457) have a great impact on public administration. Gullick also found the acronym POSDCORB best to describe the executive’s job. Urwick utilized Fayol’s writings to promote a functional approach to management in developing his theory of administration and organization. The writings of Fayol have reached the international arena and pointed

Comprehensive Plan to Improve Human Resources Essay Example for Free

Comprehensive Plan to Improve Human Resources Essay Whole Foods Market- a company that doesn’t think of itself as a company, but as a community of people working to make a difference in the world. At Whole Foods, the mission matters as much as the bottom line. But who is Whole Foods Market, and how does their Human Resource Management (HRM) play a role in the development of their culture or work environment? This comprehensive plan will describe Whole Foods Market’s history and the challenges and/or opportunities of the company. It will explore the effectiveness of the organizations current human resource practices with regard to the employees and describe strategies to improve the quality of those practices. Additionally, the impact of implementing the strategic improvements and how the organization would measure success upon implementation will be discussed. Whole Foods Market: The Organization Whole Foods Market is the world’s leader in natural and organic foods. With more than 270 stores in North America and the United Kingdom, the organization seeks out the best natural and organic foods obtainable; while preserving better-quality standards in the industry. According to Porter and Kramer (2009), the intention of the organization is to sell organic, natural, and healthy food products to its consumers who are passionate about food and the environment. Whole Foods Market focuses on unrefined foods, health and nutrition. They are definitely not like any other grocery store. Their ultimate goal is to become an international brand identical with not just natural and organic goods, but also with being the greatest food retailer in every community in which they are located. Therefore, Whole Foods Market must purposefully plan and assess the marketing of its goods according to the demand of the customers (Whole Foods Market, n. d). For the last thirteen years, team members at Whole Foods Market, named their company as one of Fortune magazine’s â€Å"100 Best Companies to work for. † In 2010, they were ranked number eighteen. Whole Foods is acknowledged for its team-based operations and employee-oriented work culture, which are considered to be the foundations of its development and success within the industry (Whole Foods Market, n. d. ). Whole Foods Market takes pride in setting themselves apart from their competitors within the industry. No matter how much the company excels in size or makes changes to the organization, the organization supports change by establishing and maintaining seven core values. According to Whole Foods Market (n. ), the core values are â€Å"selling the highest quality of natural and organic products available, satisfying and delighting customers, supporting team member happiness and excellence, creating wealth through profit and growth, caring about the community and environment, creating an ongoing win-win partnership with suppliers, and promoting the health of stakeholders through healthy eating education. † Included in these core values are open communication and transparency, education and training, and staff empowerment. No matter how large a company Whole Foods Market becomes, they preserve what makes them unique through these core values. Whole Foods Market: Challenges and Opportunities As with many organizations, the past economic down turn has caused many organizations to face a lot of challenges and to make difficult business decisions. Whole Foods Market created a permanent modification in how they operate many vital areas of the business. This year, 2010, the company’s business model includes continued focus on vital areas of the company by focusing in on purchasing with regards to the business while creating more worth for the consumer regarding pricing (Whole Foods Market, n. d). In the letter to the stakeholders (2009), Mackey, CEO desires to stay focused on dropping operating cost without harming the customer experience. Additionally, he states that as an organization they are committed to being better custodians of capital and producing free cash flow on a yearly basis. In the future, Mackey foresees new smaller stores that are less expensive, and an increase return on invested capital. A recent 2009 SWOT Analysis of the organization from Datamonitor (2009) listed some additional opportunities such as the recent strategic acquisitions that helped in strengthening their market position. These acquisitions also help the organization to expand its operations in the natural and organic foods markets as well as increase its client base and the number of product categories. One acquisition in particular is the merge with Wild Oats Market in 2007. Other opportunities recorded by Datamonitor (2009) include the growing demand for private label products. Recent economic conditions have warranted companies to offer less expensive private label products as an alternative to the customers’ needs. Whole Foods Market: Human Resource Management Strategies What makes Whole Foods stand out from others in the industry is not a single management process but a distinctive managing structure which includes Human Resource Management support. According to Rose and Kumar (2006) it is important that organizations utilize HRM practices that make best use of its employees, and that is just what Whole Foods Market has done. For example, at Whole Foods, the basic organizational unit isn’t the store but small teams that manage departments such as fresh produce, prepared foods, and seafood. Teams are consulted on all store-level decisions and they have been given a degree of independence that is very unique in the industry (Whole Foods Market, n. d). According to Hamel (2006), each team makes decisions concerning stock, and new hires. Bonuses are paid to the teams, not to individuals. Members have access to comprehensive fiscal information, including the details of every coworker’s wage. Whole Foods Market has been very successful with their ability to recruit and retain good employees. The recruiting process is exceptionally unique. According to Whole Foods Market (n. d), applicants are generally screened by store management or by a human resources person through a preliminary interview. Once the individual is screened for overall job skills and qualifications, the application is referred to the appropriate department managers for a final interview. The final interview process may be conducted by a team or panel depending on the position. Team member’s partaking in group interviews is one way the company puts its culture of empowerment into action. Hamel and Breen (2007), state that this recruiting process is used for all new employees; including those hoping to join teams at Whole Foods’ center of operations, such as the national IT or finance groups. Additional HRM practices include the organizations focus on compensation and incentive based rewards. According to Erickson and Gratton (2007), this is one of the main components of their rewards system within the organization. Each team’s compensation is directly linked to how well that team functions. Team performance is considered in terms of overall productivity; profit-sharing based on those numbers are added directly to each team member’s compensation. Teams are responsible for a different product category or aspect of store operations such as customer service, prepared foods, or grocery, among others. Whole Foods believes in a company-wide awareness of sharing the fate of the business by combining the wellbeing of team members as directly as possible with the interests of the shareholders. The organization uses a gain sharing program to reinforce concept. This program rewards things that members of the team can control such as work efficiency which gives members a direct stake in the victories of the company (Whole Foods Market, n. d). Whole Foods also encourages stock ownership options in plans such as the Team Member Stock Option Plan. Within this plan, all members are entitled to receive a grant of stock options each year. According to the United States Securities and Exchange Commission (2007), the grant has two components: the Annual Leadership Grants identify and motivate team member performance; and the Service Hour Grants identify team member service within the Company. Another plan is the Team Member Stock Purchase Plan. Through payroll deductions, all non-seasonal team members with at least 400 service hours may choose to buy unlimited shares of stock at 95% of market worth on the purchase date. Whole Foods Human Resource practices are effective because the culture allows for an atmosphere of transparency, with open books and open people. These processes include the organizations team process which allows for autonomy and a high level of responsibility of line staff. Through such a practice, members use their decision-making authority to take part in driving the business forward. Additionally, the team process promotes healthy competition, trust between members. Whole Foods Market: Recommended Strategies for Improvement Although Whole Foods HRM practices seem successful, there is room for improvement. The following strategies are recommended in the area of team implementation and practices: * If the organization maintains the team concept it is important that management ensures that members do not to obstruct the team authority over the individual. Members should merely feel responsible to each other, but still free to be themselves. Members should also be recognized as individuals. Individuals have a need to be recognized for hard work and individual achievement. Providing a reward system for individual milestones and achievements might also allow for successful company performance. * The organization should provide opportunities for personal growth and promotion through training and education. * The organization should ensure that there are no cliques within the teams. Cliques could make it difficult to maintain cohesion and cooperation within the team. Management should also ensure or encourage subtle unsanctioned norms that steer the actions of team members, saying what’s suitable and what’s not suitable behavior especially within the recruitment process in which members choose their team members. * The organization should periodically evaluate the alignment of team compensation and incentives for the work that is likely to be performed. * HR should monitor changes in team compensation systems to ensure the organization’s compensation is clearly understood by staff and that any changes, including team incentive pay, is also communicated. HR should ensure that employees within the team are able to see and understand the goals of the team, and gain an understanding of his or her importance as a member. These improvement strategies can only make Whole Foods Market more successful than they are already. These improvements will drive the business success, by assisting in promoting productivity, by increasing job satisfaction and retention, and by increasing profits within the organization. Whole Foods Market: Plan Evaluation and Measurements Before implementation of new strategies, employees will be informed of the proposed implementation and changes. Managers will ensure that staffs understand what is being implemented and the impact to employees if any. The success of this plan will be evaluated by reviewing the success of the implemented strategies periodically to ensure continuous improvement. The evaluation of the strategies will include internal assessments and/or employee surveys/questionnaires. The internal assessments and/or employee surveys/questionnaires will be aimed to ascertain the employees’ satisfaction of those methods and strategies. Results of the evaluation and measurements will be compiled and reviewed by the organizations HR team. The team will seek to: (1) determine if implemented strategies are predictive of organizations mission and business plan, (2) understand how implemented strategies improved or did not improve current HR practices and finally, (3) determine if there is a relationship between the implemented strategies and overall retention and job satisfaction. If the results are satisfactory, strategies will continue to be implemented monitored and reviewed. Results that are unsatisfactory will be discussed with employees to determine why the implemented strategy was not a success and to determine necessary changes if applicable. Whole Foods Market: Conclusion In conclusion both management and HR play an important role in the strategy and betterment of Whole Foods Market. This organization has already established a culture that reduces fear and increases trust. The company prides itself in the transparency between management level staff and line staff. Implementation of these strategies will only assist to increase employee satisfaction and retention.

History Of Philippine Monetary System

History Of Philippine Monetary System Most people dont spend much time wondering what money is, their major concern is how much they have, and how to get more. Usually, the question of what money IS arises only when money ceases to function properly. In economics (properly understood), the answer to the question what is money? consists of three words: Thats all. Yet the conception of a medium of exchange ranks below only language (with its corollaries speech and the written word) as the greatest intellectual discovery in history. Without language, the exchange of anything but the most rudimentary ideas is impossible. Without money, the production and exchange of anything but the most rudimentary goods and services is impossible. It is not difficult or time consuming, or inefficient, it is IMPOSSIBLE! Animals dont exchange (or trade) amongst one another. They are self-sufficient, or they take from each other, or they exercise the prerogative of superior strength and/or cunning. There are some human beings who get along in a very similar fashion, but the overwhelming majority recognises the benefits of voluntary exchange. Strictly speaking, the use of the word voluntary in this context is redundant. The phrase your money or your life is not the precursor to an exchange, whether the person uttering it brandishes a gun or a government identity card. The first rule of any voluntary exchange is simplicity itself. If two people are willing to exchange, each must view the results of the exchange as being beneficial. If either of them is not of that view, the exchange will not take place. Direct exchange, or barter, is exactly that my good or service for your good or service. The problem is that I might want what you have to offer, but you might not want what I offer in exchange. With no medium of exchange, there is no deal. Indirect exchange takes place when one party has a medium that is always acceptable, not for what it is, but for what can be done with it. If you offer me money, I will accept it, because I know that I can exchange it for what I want, whenever I want it. Indirect exchange involves the use of MONEY the medium of exchange. Money is the universal key, it fits all locks. And the world it has unlocked is the world we live in today. Money has made the division of labor possible. It has made specialization possible. It has made the accumulation of wealth over periods which exceed a human lifetime possible. Perhaps most important of all, it has hugely advanced the potential for amicable interaction between people. To survive as such, and to prosper, a rational animal must exchange. He or she has language, to exchange ideas, and money, to exchange the fruits of ideas. From that foundation, everything else we see around us has been built. That covers the concept or idea of money. But an idea, as such, does not exist as a physical entity. Money must be a physical entity. Neither the electronic money of today nor the notes and coin which circulate as cash has any official or legal connection with Gold and Silver. But they once did, and most people think that they still do. As long as that situation persists, the modern monetary system will function. Now, how does one go about choosing what is to be used as money? Simple, one looks for the most tradable good, the good which is in highest demand, the good that has begun to be accepted, not as an end in it, but as a means to an end. Money is the good that people do not want to consume, but want to use to make further exchanges easier. Human beings have lived together for more than two million years. Money in its modern form coin of fixed weight and denomination came into use less than three thousand years ago. It took a long time to discover the physical good which best serves the purpose of a medium of exchange. (http://www.the-privateer.com/gold-b.html) Functions Money as a Unit of Value The first function of money is to be a unit of value or a unit of account. The monetary unit is the unit in terms of which the value of all goods and services is measured and expressed. The value of each good or service is expressed as a price, which is the number of monetary units for which the good or service can be exchanged. If the price of a pen is Rs. 10 then a pen can be had in exchange for ten monetary units (where the monetary unit in this case is the rupee). Measuring values in monetary units helps in measuring the exchange values of commodities. If a pen is worth Rs. 10 and a notebook is worth Rs.20 then a notebook is worth two pens. Further, accounting is simplified, as all items will be recorded in terms of monetary units that can be added and subtracted. Money is a useful measuring rod of value only if the value of money itself remains constant. This is similar to saying that a scale is a useful measure of length only if the length of the scale itself is constant. The value of money is linked to its purchasing power. Purchasing power is the inverse of the average or general level of prices as measured by the consumer price index etc. As the general price level increases, a unit of money can purchase a lesser amount of goods and services so the value or purchasing power of money declines. So, m oney will be a useful unit of value only as long as its own value or purchasing power remains constant. (http://hubpages.com/hub/Functions-of-Money) Money as a Medium of Exchange Money also acts as a medium of exchange or as a medium of payments. This function of money is served by anything that is generally accepted by people in exchange for goods and services. Anything has been quite a variety of things across places and times. Some of the things that have served as money are clay, cowry shells, tortoise shells, cattle, pigs, horses, sheep, tea, tobacco, wool, salt, wine, boats, iron, copper, brass, silver, gold, bronze, nickel, paper, leather, playing cards, debts of individuals, debts of banks, debts of governments, etc. Money will then reduce the time and energy spent in barter. The person who owned a cow can now simply sell it to the person who offers the most money for it and then buy the bullock cart from another person who offers him the best bargain. Ultimately, all trade may be considered barter one good or service is traded for another good or service -either directly, or indirectly with money acting as the intermediary. However, by acting as an intermediary, money increases the ease of trade. Money is also called a bearer of options or generalized purchasing power. This indicates the freedom of choice that the use of money offers. The owner of the cow need not procure goods and services from those to whom he sold his cow. He can use the money to buy the things he wants most, from those who offer him the best bargain (not necessarily those who bought his cow), at the time he considers most advantageous (not necessarily immediately). Again, this function can only be performed properly if the value of money remains constant. (http://hubpages.com/hub/Functions-of-Money) Money as a Standard of Deferred Payments If money performs the previous two functions then it may also perform the function of being the unit in terms of which deferred or future payments are stated. Examples of situations where future payments are to be made are pensions, principal and interest on debt, salaries etc. As long as money maintains a constant value through time, it will overcome the problems associated with making future payments with specific commodities. (http://hubpages.com/hub/Functions-of-Money) Money as a Store of Value If money becomes a unit of value and a means of payment then it may also perform the function of serving as a store of value. The holders of money are holders of generalized purchasing power that can be spent through time. They know that it will be accepted at any time for any good or service and is thus a store of value. This function will be performed well as long as money retains a constant purchasing power. (http://hubpages.com/hub/Functions-of-Money) It may be noted that any asset other than money may also perform the function of store of value, for example, bonds, land, houses, etc. These assets have the advantage that, unlike money, they yield income and may appreciate in value over time. However, they are subject to the following: (1) They may involve storage costs, (2) They may not be liquid in the sense that they could not be quickly converted into money without loss of value, and (3) They may depreciate in value. A person may choose to store value in any form depending on considerations of income, safety and liquidity. (http://hubpages.com/hub/Functions-of-Money) Kinds Commodity Money Commodity money refers to money whose value comes from a commodity out of which it is made. Examples of commodities that have been used as money include gold, silver, copper, salt, large stones, decorated belts, shells, and cigarettes. Commodity money is to be distinguished from representative money which is a certificate or token which can be exchanged for the underlying commodity. A key feature of commodity money is that the value is directly perceived by the users of this money, who recognize the utility or beauty of the tokens as they would recognize the goods themselves. That is, the effect of holding a token for a barrel of oil must be the same economically as actually having the barrel at hand. This thinking guides the modern commodity markets, although they use a sophisticated range of financial instruments that are more than one-to-one representations of units of a given type of commodity. In situations where the commodity is metal, typically gold or silver, a government mint will often coin money by placing a mark on the metal that serves as a guarantee of the weight and purity of the metal. In doing so, the government will often impose a fee which is known as seigniorage. The role of a mint and of coin is different between commodity money and fiat money. In situations where there is commodity money, the coin retains its value if it is melted and physically altered, while in fiat money it does not. Commodity money often comes into being in situations where other forms of money are not available or not trusted. Various commodities were used in pre-Revolutionary America including wampum, maize, iron nails, beaver pelts, and tobacco. In post-war Germany, cigarettes became used as a form of commodity money in some areas. Cigarettes are still used as a form of commodity money in prison cell. Although commodity money is more convenient than barter, it can also be inconvenient to use as a medium of exchange or a standard of deferred payment due to the transport and storage concerns. Accordingly, notes began to circulate that a government or other trusted entity (e.g. the Knights Templar in Europe in the 13th century) would guarantee as representing a certain stored value on account. This creates a form of money known as representative money the beginning of a long slow shift to credit money. Historically gold was by far the most widely recognized commodity out of which to make money: gold was compact, easy to work into more beautiful jewelry, had decorative and functional utility as a finely strung wire or thin foil leaf, and most importantly, could always be traded for other metals to make weapons with. A state could be described as a political enterprise with sufficient land, gold and reputation for protecting both, e.g. the Fort Knox gold repository long maintained by the United States, could reliably issue certificates to substitute for the gold and be trusted to actually have it. Between 1933 and 1970, one U.S. dollar was technically worth exactly 1/35 of a troy ounce (889 mg) of gold. However, actual trade in gold as a precious metal within the United States was banned presumably to prevent anyone from actually going up to Fort Knox and asking for their gold. This was a fairly typical transition from commodity to representative to fiat money, with people trading i n other goods being forced to trade in gold, then to receive paper money that purported to be as good as gold, and then ultimately see this currency float on commodity markets. However, commodity money remained active in the background in some form or another, and seems to have been revived thanks to global capitalism, wherein a currency is widely traded as a commodity. One way to view such trade is that currency of resource-rich nations tends to be tied to the price of those particular commodity items until it becomes a developed nation. Thus, one could see the nominally fiat money of say Cuba as being tied to the commodity sugar globally, rather than to the military power of Cuba that holds within its own borders. Also, commodity supplies and protections of supplies by states military fiat remain critical to trade, and there are active commodity market speculations on the stability of certain states, e.g. speculation on the survival of the regime of Saddam Hussein in Iraq has from time to time driven the price of oil. Some argue that this is not so much a commodity market but more of an assassination market speculating on the survival (or not) of Saddam himself. Finally, commodity money is undergoing a more direct revival thanks to theorists of green economics, natural capitalism and global resource banking, some of whom suggest a form of money based on ecological yield. They argue that the outputs of natural capital are the only genuine commodities air, water, and calories of renewable energy we consume being mostly interchangeable when they are free of pollution or disease. However, such goods cannot be held directly, and so it is common to suggest that representative money be issued based on enhancing and extending natures services, giving one the right to receive the yield as a benefit. They argue that reframing political economy to consider the flow of these basic commodities first and foremost, avoiding use of military fiat except to protect natural capital itself, and basing credit-worthiness more strictly on commitment to preserving biodiversity rather than repayment of debt, as in the current global credit money regime anchored by the Bank for International Settlements, would provide measurable benefits to human well-being worldwide. Some seek to replace the B.I.S. with a Global Resource Bank to manage global resources outside national jurisdiction for global benefit. Others would replace the gold standard with a biodiversity standard. It remains to be seen if such schemes have any merit other than as political ways to draw attention to the way capitalism itself interacts with life. Critics of this type of proposal often note that, as with other transitions from commodity to representative money, inadequate substitutes will be made on a just trust me basis as per Greshams Law which states that bad money drives out good. Other proposals, such as time-based money, rely on the availability of human labor as a commodity, especially within a community, which is presumably harder to guarantee access to, but also harder to steal. Still others deny the utility of co modifying labor as such, and suggest making free time the standard, since physical capital used for leisure, sport, art, theatre, and other forms of play is co modifiable and possible to control. (http://www.wordiq.com/definition/Commodity_money) Credit Money Credit money refers to money that constitutes future claims of a valuable item against an entity. The holder of credit money can use it to purchase goods and services; when the holder wants to, he or she can redeem it to get the item by which it is backed. Credit money is made of a material that has low intrinsic value compared to the value it represents when exchanged. Some types of credit money include IOUs, bonds and money market accounts. Some people also consider paper money and coins to be credit money because they have no intrinsic value and can be exchanged for valuable commodity. To illustrate how this concept came about, consider English goldsmiths, who centuries ago used to keep deposits of precious metals. They issued paper notes to those who deposited gold or silver for future redemption. These goldsmiths realized that they did not need to completely back their notes with precious metals because only a small fraction of holders come back to convert their notes. The goldsmiths then issued non-backed notes as loans to people who needed funds and received profits from interest payments. These notes constituted the early form of credit money. When a government issues banknotes, it decides on a valuable commodity on which to fix them, gold or silver, for example. It then fixes a stable value on the banknotes and sets them as a medium of exchange. The government can choose to maintain enough valuable commodities to let everyone with banknotes redeem it. The government can also choose to keep just enough valuable commodities to satisfy the small fraction of people who actually want to make the redemption. In this sense, banknotes are credit money because people can use them to redeem gold or silver. In modern monetary systems, however, the central bank often issues money that is not backed by valuable commodity. The size of the money supply in these systems does not depend on the availability of valuable commodity or the obligation of the central bank to repay credit money with valuable commodity. This kind of money is known as fiat money and is the most ubiquitous form of money in most modern monetary systems. Credit money can also refer to any claim on valuable commodity that is used as a medium of exchange instead of banknotes. Checks, IOUs and bonds that can be redeemed for banknotes are examples of this. Sometimes credit money has a maturity date, as in the case of checks where the bank pays the check recipient a certain amount of banknotes at maturity. Fiat Money Fiat money is the opposite of honest money. Fiat money is money that is declared to have value even if it does not. Honest money has value regardless of what people say. Gold and silver are often referred to as honest money and since they have been dug out of the ground at considerable expense, they do have value regardless. People will pay variable sums for them. Fiat money is also known as paper money, or electronic money. Since there is nothing behind paper money but the obligation of a state to redeem it in more paper or electronic money, fiat moneys ultimate worth is questionable at best. In fact, there is a history of states walking away from the face value of the fiat money that has been printed (created). But if one has it in ones possession, it is impossible to walk away from the value of gold and silver and contrary to fiat money, they have an inherent quality. Mainly an outgrowth of central banking, in the modern age, fiat money probably would not be attractive without state support. Thats because fiat money, unlike fractional reserve money, has no inherent value. Fractional reserve banking, in fact, is a private market phenomenon in which private banks provide paper notes the face value of which adds up to more than the reserves held by the bank. There is a history of successful fractional reserve banking efforts within the private marketplace; however fiat money ALWAYS collapses, as it is impossible to issue a substance of value year after year and generation after generation that HAS no value. In the United States, the worlds largest and most dominant economy, the greenback became a fiat currency when President Richard Nixon broke the final link between gold and the dollar in 1971. He did this because the French were apparently threatening to redeem their dollars in gold and either the US central bank and/or Treasury did not have enough gold to In any event, Nixon severed the dollars relationship to gold and ever since then the world has embarked on a bold experiment in which the global, anchor currency has no specific relationship to an underlying asset. Predictably, this has meant that the United States has continually created more and more fiat dollars, thus inflating the overall stock of dollars and making them worth less and less. China, one of the worlds most ancient civilizations, is said to have had no less than eight separate interregnums of fiat currency each collapsing and then being replaced by another. In the 1800s, fiat money was even banned by the Chinese. Today, however, the Chinese government is once again a user of fiat money along with the rest of the world. Fiat money has never been as prevalent perhaps as in the modern age. But that doesnt make it any healthier or less prone to failure. Those who ignore history are doomed to repeat it. (http://www.thedailybell.com/803/Fiat-Money.html) Legal Tender Money Legal tender is any form of payment that must be accepted for a debt, according to the laws of the area. Generally, the term refers to government-issued cash money such as bills and coins, as opposed to credit lines, checks, or cards. The laws surrounding legal tender have proved vital in the formation of the fiscal policy of many nations. (http://www.wisegeek.com/what-is-legal-tender.htm) The term legal tender means currency that is legally permitted to be used to obtain goods or services in a particular country. Immediately recognized as legal tender for purchases and to settle outstanding debts, currency remains the single most common of all liquid assets that are used on a consistent basis by retail customers. (http://www.wisegeek.com/topics/legal-tender.htm) II. Development of Philippine Money Pre-Hispanic Era Archaeological evidence indicates that small seafaring communities existed throughout the Philippine Archipelago for at least 2000 years, prior to the arrival of the Spaniards. The chief means of trading was barter. Records show that Chinese merchants came to the Philippines to trade porcelain, silk and metalwork in exchange for gold, pearls, beeswax and medicinal plants, which the Philippines is naturally rich in. Excavations also unearthed gold ingots, known as piloncitos, the first recognized form of coinage in the country. Barter rings in different sizes, gold ornaments and beads were the other objects used as medium of exchange during the period. (http://www.bsp.gov.ph/about/history/story2.asp) Spanish Era The Galleon Trade, which started during the colonization of the Philippines in 1565 and lasted for 250 years, was responsible for transforming Manila into a trade center for oriental goods. These were brought across the Pacific, in exchange for odd-shaped silver coins called cobs or macuquinas. Other coins that followed were the dos mundos or pillar dollars in silver, the counterstamped coins and the portrait series, also in silver. In the 18th century, the Royalty of Spain authorized the production of copper coins by the Ayuntamiento or Municipality of Manila in response to the acute shortage of fractional coins. These were called barrillas which first appeared in 1728.In 1852, the first banknotes called pesos fuertes were issued, and in 1861,the Casa de Moneda de Manila minted the first gold coins with the word Filipinas inscribed, which were called Isabelinas and Alfonsinos. (http://www.bsp.gov.ph/about/history/story3.asp) Revolutionary Period On August 23, 1896, the Cry of Balintawak, headed by Andres Bonifacio signaled the start of the Philippine Revolution. After General Emilio Aguinaldos proclamation as President of the First Philippine Republic, Two types of 2-centavo copper coins were struck in the army arsenal of Malolos. Because their mintage was so few, they are considered extremely rare collection. Paper notes were also issued, but the circulation was limited because the government was short-lived. (http://www.bsp.gov.ph/about/history/story4.asp) American Regime When the Americans took over the Philippines in 1901, the US Congress passed the Philippine Coinage Act, which authorized the mintage of silver coins from 1903 to 1912. Subsequently, Silver Certificates were issued until 1918. These were replaced with Treasury Certificates from 1918 to 1935. The American Government deemed it more economical and convenient to mint silver coins in the Philippines, hence, the re-opening of the Manila Mint in 1920, which produced coins until the Commonwealth Period. This also became the first seat of the Central Bank in 1949. (http://www.bsp.gov.ph/about/history/story5.asp) World War II During the Japanese Occupation from 1941 to 1944, two kinds of notes circulated the Japanese Invasion Money issued by the Japanese Government, and the Guerrilla Notes or Resistance Currencies issued by Filipino guerrillas. (http://www.bsp.gov.ph/about/history/story6.asp) Republic Period Republic Act No.265 created the Central Bank of the Philippines (CBP) on January 3, 1949, which was vested the power of administering the banking credit system of the country. Initially, the CBP issued the Victory Notes with the overprint Central Bank of the Philippines in 1949. The first official banknotes issued by the Central Bank were the English series in 1951, followed by the Pilipino series in 1967, the Ang Bagong Lipunan series in 1973 and the New Design series in 1985. Central Bank coins of the English series were also issued in 1959, followed by the Pilipino series in 1967, and the Ang Bagong Lipunan series in 1975. The Flora and Fauna series were introduced in 1983, and subsequently, the improved version in 1992, until the demonetization of all the series in 1998. (http://www.bsp.gov.ph/about/history/story7.asp)