After the unfortunate attack on September 11, 2001 the country as a whole became concerned about further terrorist attacks. Many new policies and technologies have been created in an effort to detect and prevent further terrorist attacks. One of these technologies is the Computer Assisted Passenger Prescreening System, or CAPPS. CAPPS has been the subject of much debate concerning the exact use of the database.
The Transportation Security Administration, at the order of Congress, assembled CAPPS after the September 11, 2001 attack. CAPPS was designed to be a nationwide database that compares passenger names against watch lists, traveler credit reports, and consumer transactions. The databases considered for use with CAPPS are credit bureaus and ChoicePoint, both of which aggregate and sell information. Before flight, passengers are required to provide their names, phone numbers, and addresses to be checked for accuracy. The commercial databases will then use algorithms to judge whether a person booking a ticket is who he/she claims to be. A boarding pass will be issued with either a green, yellow, or red score. Passengers with a red score will be detained until federal law enforcement officials arrive.
CAPPS has the potential to ferret out would be terrorists; it also has the potential to be harshly abused. David Sobel, of the Electronic Privacy Information Center, stated, "Even in the wake of Sept. 11, people are still worried about the collection and use of their personal information." (work cited) A document list, obtained from the Electronic Privacy Information Center through a lawsuit with the FBI, stated the databases "Еcontain billions of public records including: property records, census information, professional licenses, telephone books, newspaper articles, drivers records, vehicle records and credit bureau headers." (work cited)
When CAPPS was first created it had very few guidelines to follow. People fear a government that heavily monitors the transactions of everyday people. [Some of the complaints against the CAPPS program specified the use of CAPPS as a method of capturing deadbeat dads, or screening out passengers who fit a criminal pattern, or that the system would retain information for up to 50 years.] Sen. Ron Wyden said in a written statement, "We cannot stand by and allow the government to shine a spotlight onto the personal records of law abiding citizens who have a constitutionally protected right to privacy. It is Congress' duty to find out on behalf of all Americans what federal agencies are hoping to do with their personal information." Jim Dempsey, president of the Center for Democracy and Technology, said, "On the one hand, we want people with outstanding warrants to be caught. On the other hand, we have not been a checkpoint society. We will fundamentally change the nature of our society if we start exploiting our societyТs gates for general law enforcement."
In response to the public outcry of objection to the limitless CAPPS, the Transportation Security Administration began to issue more detailed regulations. Jim Dempsey said in support of these changes, "Maybe a person wanted for armed robbery flies on airplanes, but he's not going to rob a person on an plane." These regulations limit the type of information that CAPPS can gather from commercial databases, restricts the amount of time that the system will hold onto the data, and restricts the database owners from using this data for any other purpose. Lisa Dean of the Electronic Frontier Foundation stated, "No health or financial data will be used. Information will be retained for days, not years. And no (Internal Revenue Service) or deadbeat dads databases will be used." CAPPS will, however, allow the Transportation Security Administration to look for people suspected of "crimes of violence" as well as domestic groups suspected of terrorism. As part of this system the Transportation Security Administration plans to create a Passenger Advocate Office that will identify the sources of false data and correct them.
As a further peace offering to the privacy advocates, who are still leary of a surveillance society, the Transportation Security Administration stated it would not release CAPPS for an additional 60 days so that further views could be submitted regarding the system. The Department of Homeland Security Chief Privacy Officer, Nuala O'Conner Kelly, stated that the new rule would increase passenger security while still respecting the privacy of travelers. The Transportation Security Administration, administrator Adm. James M. Loy, said that CAPPS would reduce the wait times, the number of passengers who go through secondary screenings, and the number of people misidentified as potential terrorists. With all these new regulations CAPPS ended up with a new name as well, CAPPS II.
CAPPS II will be instrumental as a device to prevent attacks like the September 11, 2001 attack in the future. CAPPS II is a double-edged sword, though, in that the amount of information the system has access to is mind-boggling and could be used to the detriment of law-abiding citizens. With careful regulation and a fierce determination not to pry into the lives of private citizens, CAPPS II could be the most effective weapon we have against terrorist attack. Luckily, Laura Murphy of the American Civil Liberties Union's Washington Legislative Office plays referee with this statement, "There is broad agreement across the political spectrum that we must not allow America to turn into a surveillance society. Data surveillance programs inevitably erode our privacy, with demonstrating that doing so makes us any safer." With privacy advocates like Laura Murphy calling foul, we should be just fine.
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Thursday, February 12, 2009
Analysis of Axis 10
Effective and efficient financial calculations play a very important role at quarter-end. At each quarter-end, there are strict time restrictions involved in preparing the Axis dataset model to run, outputting calendar year reports, reconciling and analyzing the results. The financial calculation software, Axis, plays a very crucial part in this process. It is vital that the calculations from Axis are accurate and produced in a timely manner. It is also important to keep up-to-date with all the new versions of Axis. Recently, the newest version, Axis 10, had been introduced with many new enhancements. These new features will be the key in efficient time management at quarter-end. Improvements to the software result in an initiative to convert all products from Axis 9.4 to Axis 10. This report will give a brief description of the Axis program, outlining the conversion process, and evaluate various problems faced. In conclusion, it will compare the advantages and disadvantages concerning the transition of the two version of Axis.
Axis in General
Axis is a software produced by GGY that can be used by all levels of people in an organization. It provides technical, actuarial and financial information. The software is also able to display results from a financial statement point of view. This allows the user to see how decisions can affect both the income statement and balance sheet. The versatility of the software allows user the opportunity to produce accurate financial calculation and make informed decisions. Recently, GGY had introduced a new version of Axis. This new version, Axis 10 has two main enhancements: Distributed Processing, Integration of Datalink and Object Explorer.
Conversion Process
Following is a user guide to a successful conversion from Axis 9.4 to Axis 10. It is very important to make sure that the datasets and databases are both converted into Axis 9.4 Maintained before getting started on the conversion into Axis 10.
To convert a dataset into Axis 9.4 Maintained:
1. Open up Axis 9.4 Maintained.
2. Click on Dataset Action button.
3. Scroll down and select the option Restore Dataset…
4. Browsed through the directory to where the dataset (version 9.4) was saved in the Open pop-up window.
5. Double click on the dataset name, and select Yes when asked ‘Would you like to convert it?’
6. Return to the Dataset window and back up that dataset to a folder on the LAN once it is converted into 9.4 Maintained.
To convert a database into Datalink Maintained version:
1. Open up Datalink Maintained version.
2. Click on File button.
3. Scroll down and select the option Backup/Restore Database.
4. Browsed through the directory to where the database (version 9.4) was located in the Backup/Restore Database pop-up window.
5. Click on Restore New.
6. Click on Database Button and double click on the database that had just been restored.
7. This will convert the database into 9.4 Maintained.
8. Go back to File Х Backup/Restore Database and back up the database to C:DATALINK 94MAIN
Note: It is very important that the database is backed up in this particular directory or it cannot be converted into Axis 10.
Once the conversion process into 9.4 Maintained is complete, the next step is to reconcile the results. To reconcile, the batch that was run at quarter-end should be rerun in 9.4M and viewed using the report. This is necessary to confirm that the result from both versions does not differ.
To convert a dataset into Axis 10:
1. Open up Axis 10
2. Click on Dataset Actions
3. Scroll down and select Restore Axis 9 Dataset and Convert…
4. Browsed through the directory to where the dataset (version 9.4 Maintained) was saved in the Open pop-up window.
5. Select a temporary directory to restore the dataset (usually in the C: drive) in the next pop-up window.
6. In the Convert AXIS 9 Database Wizard – Step 1, select the right module and click on the ellipsis (…), scroll down and select the database that you have backed up earlier.
7. Under the Option section, select If dataset had seriatim data convert it to a new format.
8. Under Datalink tables data, select the option Convert only if user def table has no source file.
9. Click on Finish.
10. Double click on the dataset name to continue the conversion process.
Once the conversion process is finished, follow the reconciliation step from above and rerun the quarter-end Datalink and calendar year recalculation batch. Record the results in the same Excel spreadsheet and make sure the numbers reconciled.
Conversion Problems
The transition process was faced with many impediments and problems. The majority of the problems occurred in Datalink. These errors arise from the automatic conversion of certain alpha fields into numeric fields in Axis 10. When this occurs, the ALLTRIM formula that has alpha input fields become invalid. This problem was resolved by taking out the ALLTRIM formula.
Conclusion
The previously used version of Axis 9.4 is can be inefficient at times. This inefficiency is due largely to the amount of time needed to run a batch job. Potentially, Axis 10 have the capacity to help eliminate this problem by introducing the new feature, distributed processing. Also, the newly integrated application allows for quicker training, as there is only one application to learn.
The advantages of the Axis 10 are clearly the better usage of time and resources by staff at quarter-end. The drawback to the new version is mainly due to the large amount of time spent on conversion.
Even with the initial drawbacks associated with the Axis 10 conversion, the impact that the software has on the issues concerning time restriction and clarity of integrated application is positive overall. When the staff is fully trained to use the new version to its full potential and the all the problems from conversion has been resolved, Axis 10 will substantially increase the time efficiency of the quarter-end process.
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Axis in General
Axis is a software produced by GGY that can be used by all levels of people in an organization. It provides technical, actuarial and financial information. The software is also able to display results from a financial statement point of view. This allows the user to see how decisions can affect both the income statement and balance sheet. The versatility of the software allows user the opportunity to produce accurate financial calculation and make informed decisions. Recently, GGY had introduced a new version of Axis. This new version, Axis 10 has two main enhancements: Distributed Processing, Integration of Datalink and Object Explorer.
Conversion Process
Following is a user guide to a successful conversion from Axis 9.4 to Axis 10. It is very important to make sure that the datasets and databases are both converted into Axis 9.4 Maintained before getting started on the conversion into Axis 10.
To convert a dataset into Axis 9.4 Maintained:
1. Open up Axis 9.4 Maintained.
2. Click on Dataset Action button.
3. Scroll down and select the option Restore Dataset…
4. Browsed through the directory to where the dataset (version 9.4) was saved in the Open pop-up window.
5. Double click on the dataset name, and select Yes when asked ‘Would you like to convert it?’
6. Return to the Dataset window and back up that dataset to a folder on the LAN once it is converted into 9.4 Maintained.
To convert a database into Datalink Maintained version:
1. Open up Datalink Maintained version.
2. Click on File button.
3. Scroll down and select the option Backup/Restore Database.
4. Browsed through the directory to where the database (version 9.4) was located in the Backup/Restore Database pop-up window.
5. Click on Restore New.
6. Click on Database Button and double click on the database that had just been restored.
7. This will convert the database into 9.4 Maintained.
8. Go back to File Х Backup/Restore Database and back up the database to C:DATALINK 94MAIN
Note: It is very important that the database is backed up in this particular directory or it cannot be converted into Axis 10.
Once the conversion process into 9.4 Maintained is complete, the next step is to reconcile the results. To reconcile, the batch that was run at quarter-end should be rerun in 9.4M and viewed using the report. This is necessary to confirm that the result from both versions does not differ.
To convert a dataset into Axis 10:
1. Open up Axis 10
2. Click on Dataset Actions
3. Scroll down and select Restore Axis 9 Dataset and Convert…
4. Browsed through the directory to where the dataset (version 9.4 Maintained) was saved in the Open pop-up window.
5. Select a temporary directory to restore the dataset (usually in the C: drive) in the next pop-up window.
6. In the Convert AXIS 9 Database Wizard – Step 1, select the right module and click on the ellipsis (…), scroll down and select the database that you have backed up earlier.
7. Under the Option section, select If dataset had seriatim data convert it to a new format.
8. Under Datalink tables data, select the option Convert only if user def table has no source file.
9. Click on Finish.
10. Double click on the dataset name to continue the conversion process.
Once the conversion process is finished, follow the reconciliation step from above and rerun the quarter-end Datalink and calendar year recalculation batch. Record the results in the same Excel spreadsheet and make sure the numbers reconciled.
Conversion Problems
The transition process was faced with many impediments and problems. The majority of the problems occurred in Datalink. These errors arise from the automatic conversion of certain alpha fields into numeric fields in Axis 10. When this occurs, the ALLTRIM formula that has alpha input fields become invalid. This problem was resolved by taking out the ALLTRIM formula.
Conclusion
The previously used version of Axis 9.4 is can be inefficient at times. This inefficiency is due largely to the amount of time needed to run a batch job. Potentially, Axis 10 have the capacity to help eliminate this problem by introducing the new feature, distributed processing. Also, the newly integrated application allows for quicker training, as there is only one application to learn.
The advantages of the Axis 10 are clearly the better usage of time and resources by staff at quarter-end. The drawback to the new version is mainly due to the large amount of time spent on conversion.
Even with the initial drawbacks associated with the Axis 10 conversion, the impact that the software has on the issues concerning time restriction and clarity of integrated application is positive overall. When the staff is fully trained to use the new version to its full potential and the all the problems from conversion has been resolved, Axis 10 will substantially increase the time efficiency of the quarter-end process.
You can order a high-quality custom essay, term paper, research paper, thesis, dissertation, speech, book report or book review from our professional custom writing service. We have employed more than 500 highly qualified Ph.D. and Master's academic writers to provide students with professional academic writing help. Feel free to contact our company right now!
Tuesday, February 10, 2009
Diversity in a Small Group
Diversity is an integral factor, which promotes and helps stimulate an open society where ideas and reciprocal efforts can lead to a group’s success. Nothing can healthily succeed or prosper with only one element. As in cooking, construction, and the labor force, recipes, establishments, and the collective thought processes of humankind and evolutionary thought are best developed when there is a multinational and varying ethnic supplement of ideas and efforts. When people are not able to support and work in a diverse environment, workforce problems and stagnant thought will occur. This paper will aid in shedding some light on the murky and turbulent area of diversity, what it encompasses, and whom it affects.
Different personality traits exist within all individuals. At times, personality traits will be similar between members of a group. This could help the members of a group to relate to one another. However, differences in personalities could be good as well. People do not need to have the same personality traits in order to work together as a team. In fact, diversity can enhance the team. Each member of our group is very different, but there is one trait we definitely have in common: we all understand the importance of humor. In all of our presentations so far, we have used humor as a way to connect to our audience. We feel that we can still be professional without being boring, and humor is a way to make the presentations more interesting. It (what is “It”?) also helps us relate at our learning team meetings. Not all members of our group are humorous individuals; however, humor has become a big part of our group, and a part of our “team personality”.
The aspect of diversity within our learning team with regards to our geographical differences is something that we are going to explore throughout the course of Organizational Behavior. Up until this class, we have experienced togetherness in proximity and organizational behavior. As a learning team, our geographical similarities (“our geographical similarities” is not your learning team) brought us together from the first class where we all met. It has been the glue that keeps us together when other issues of diversity arise. We are all located in the north county within a twenty-mile radius of one another. The convenience of our proximity has allowed for relaxed and enjoyable meetings that foster open communication and enriched brainstorming. As a group, we can all share the burden of hosting our team, and find that we quickly agree on places to meet for productive interaction.
Our challenge for this course will be to accept the growing diversity within our team as we allow a new member to permeate our fortified alliance. We have accepted Prince as our newest member and the geographical difference that he brings to our circle. He more than doubles the radius of our geographical proximity. Therefore, he widens the spectrum for the diversity within our team in many aspects. This will create new challenges and cause us to grow in our problem-solving skills as a team. We invite the challenges, but acknowledge the difficulty that it will bring. As a group we will all have to expand our communication skills to include more computer time and emailing. We have discussed the limitations that phone meeting and emails present, so we must devise new ways to keep optimal communication, without allowing any one of us to feel left out of the circle.
Age has a great impact on the dynamics and viewpoints of our group. Our group being all around the same general age has a great advantage. We all are at about the same place in our lives, starting families, beginning years of marriage or deciding whether to get married. This allows us to work together with great ease and be able to be more comfortable sharing with each other because we have a better understanding as to where we all are personally. It also allows us to have a lot of fun while together and we have developed friendships outside of school. These friendships have strengthened our team. Being at the same place in our lives, we are all hoping to achieve some of the same goals and can support one another in achieving them. With the positives, there are also negatives. The down side to being all around the same age is that we cannot pull from pervious generations for input. The way this has affected us the most was in our last class. We were in a class with a group that contained members in there thirties through their fifties. All of us being in our twenties, we had a different view on what we wanted to achieve from the class. We came up with a business that would create fantasy parties for our customers. We got really involved in presenting our business in an exciting manner, because our business was all about fun. The presentation did not go over well with the older group, whose opinion of a business was strictly focused on professionalism and delivering presentations that could bore a crowd into a deep sleep. From that class, we gained what older generations view as professional and how groups should present their speeches in class. Being younger does not give us a lack of personal experiences but it does limit us to the knowledge of only the world experiences that took place in our lifetime.
Another area of impact where our diversity will impact our team’s effectiveness is the area of gender. Our team diversity has changed this class with the addition of our new team member Prince. In the past, our group consisted of one male and three females. The addition of a second male will impact how our team communicates. During previous oral presentations, Matt was often seen as a dominant figure as he towered over the other group members and his baritone voice carried better. With the addition of Prince, the overshadowing caused by a single male will be dispersed, hopefully allowing more attention to the rest of the team. While the addition of Prince does bring better gender diversity, it may also lead to conflict. It is possible that a top rooster syndrome may develop if either Matt or Prince vies for leadership of the group. The addition of Prince to the learning team has another beneficial effect. It brings better balance to the team. Before, Matt was outnumbered three to one, and as such conversation often drifted to off-topics such as childbirth, breast-feeding or problems with husbands. With Prince as a second male in the group, conversation may be more restrained to subject matter pertaining to our schoolwork. On the other hand, it is possible that a second male may allow for whole new areas of counter productive male-based communication between Matt and Prince. The gender diversity our group has can be a weakness, though through understanding we can make our diversity one of our greatest strengths.
I (Who is I?) can recall two examples where a lack of diversity and acceptance towards diversity will work adversely towards personal goals and the benefit of an entire company. A PhD in astrophysics was applying for the NASA space shuttle program to conduct orbital research. He was fully qualified but was continually passed over. He was a known supremacist with current and traceable affiliations. That, obviously, would not propagate the International Space Station ideas and principles. (This paragraph doesn’t flow with the rest of the paper.)
Recently, a former employee in some management position for a well-known cola corporation left and reported discrimination against people of color in that company. It is very unfortunate that diversity is most commonly associated with the racial aspect and not according to, say, diversity in one’s workout regime or photographic collection. In the world that we live in, both past and present, we cannot seem to move past the impediment ones racial, gender, and sexual affiliation causes in others. We must intrinsically accept diversity in all aspects of life, instead of just at the restaurants. You are not making any changes or building bridges just because you eat at an ethnic restaurant or listen to another group’s music.
You can order a high-quality custom essay, term paper, research paper, thesis, dissertation, speech, book report or book review from our professional custom writing service. We have employed more than 500 highly qualified Ph.D. and Master's academic writers to provide students with professional academic writing help. Feel free to contact our company right now!
Different personality traits exist within all individuals. At times, personality traits will be similar between members of a group. This could help the members of a group to relate to one another. However, differences in personalities could be good as well. People do not need to have the same personality traits in order to work together as a team. In fact, diversity can enhance the team. Each member of our group is very different, but there is one trait we definitely have in common: we all understand the importance of humor. In all of our presentations so far, we have used humor as a way to connect to our audience. We feel that we can still be professional without being boring, and humor is a way to make the presentations more interesting. It (what is “It”?) also helps us relate at our learning team meetings. Not all members of our group are humorous individuals; however, humor has become a big part of our group, and a part of our “team personality”.
The aspect of diversity within our learning team with regards to our geographical differences is something that we are going to explore throughout the course of Organizational Behavior. Up until this class, we have experienced togetherness in proximity and organizational behavior. As a learning team, our geographical similarities (“our geographical similarities” is not your learning team) brought us together from the first class where we all met. It has been the glue that keeps us together when other issues of diversity arise. We are all located in the north county within a twenty-mile radius of one another. The convenience of our proximity has allowed for relaxed and enjoyable meetings that foster open communication and enriched brainstorming. As a group, we can all share the burden of hosting our team, and find that we quickly agree on places to meet for productive interaction.
Our challenge for this course will be to accept the growing diversity within our team as we allow a new member to permeate our fortified alliance. We have accepted Prince as our newest member and the geographical difference that he brings to our circle. He more than doubles the radius of our geographical proximity. Therefore, he widens the spectrum for the diversity within our team in many aspects. This will create new challenges and cause us to grow in our problem-solving skills as a team. We invite the challenges, but acknowledge the difficulty that it will bring. As a group we will all have to expand our communication skills to include more computer time and emailing. We have discussed the limitations that phone meeting and emails present, so we must devise new ways to keep optimal communication, without allowing any one of us to feel left out of the circle.
Age has a great impact on the dynamics and viewpoints of our group. Our group being all around the same general age has a great advantage. We all are at about the same place in our lives, starting families, beginning years of marriage or deciding whether to get married. This allows us to work together with great ease and be able to be more comfortable sharing with each other because we have a better understanding as to where we all are personally. It also allows us to have a lot of fun while together and we have developed friendships outside of school. These friendships have strengthened our team. Being at the same place in our lives, we are all hoping to achieve some of the same goals and can support one another in achieving them. With the positives, there are also negatives. The down side to being all around the same age is that we cannot pull from pervious generations for input. The way this has affected us the most was in our last class. We were in a class with a group that contained members in there thirties through their fifties. All of us being in our twenties, we had a different view on what we wanted to achieve from the class. We came up with a business that would create fantasy parties for our customers. We got really involved in presenting our business in an exciting manner, because our business was all about fun. The presentation did not go over well with the older group, whose opinion of a business was strictly focused on professionalism and delivering presentations that could bore a crowd into a deep sleep. From that class, we gained what older generations view as professional and how groups should present their speeches in class. Being younger does not give us a lack of personal experiences but it does limit us to the knowledge of only the world experiences that took place in our lifetime.
Another area of impact where our diversity will impact our team’s effectiveness is the area of gender. Our team diversity has changed this class with the addition of our new team member Prince. In the past, our group consisted of one male and three females. The addition of a second male will impact how our team communicates. During previous oral presentations, Matt was often seen as a dominant figure as he towered over the other group members and his baritone voice carried better. With the addition of Prince, the overshadowing caused by a single male will be dispersed, hopefully allowing more attention to the rest of the team. While the addition of Prince does bring better gender diversity, it may also lead to conflict. It is possible that a top rooster syndrome may develop if either Matt or Prince vies for leadership of the group. The addition of Prince to the learning team has another beneficial effect. It brings better balance to the team. Before, Matt was outnumbered three to one, and as such conversation often drifted to off-topics such as childbirth, breast-feeding or problems with husbands. With Prince as a second male in the group, conversation may be more restrained to subject matter pertaining to our schoolwork. On the other hand, it is possible that a second male may allow for whole new areas of counter productive male-based communication between Matt and Prince. The gender diversity our group has can be a weakness, though through understanding we can make our diversity one of our greatest strengths.
I (Who is I?) can recall two examples where a lack of diversity and acceptance towards diversity will work adversely towards personal goals and the benefit of an entire company. A PhD in astrophysics was applying for the NASA space shuttle program to conduct orbital research. He was fully qualified but was continually passed over. He was a known supremacist with current and traceable affiliations. That, obviously, would not propagate the International Space Station ideas and principles. (This paragraph doesn’t flow with the rest of the paper.)
Recently, a former employee in some management position for a well-known cola corporation left and reported discrimination against people of color in that company. It is very unfortunate that diversity is most commonly associated with the racial aspect and not according to, say, diversity in one’s workout regime or photographic collection. In the world that we live in, both past and present, we cannot seem to move past the impediment ones racial, gender, and sexual affiliation causes in others. We must intrinsically accept diversity in all aspects of life, instead of just at the restaurants. You are not making any changes or building bridges just because you eat at an ethnic restaurant or listen to another group’s music.
You can order a high-quality custom essay, term paper, research paper, thesis, dissertation, speech, book report or book review from our professional custom writing service. We have employed more than 500 highly qualified Ph.D. and Master's academic writers to provide students with professional academic writing help. Feel free to contact our company right now!
Allied Banks
The case study focused on one of the biggest losses the financial world has ever seen. It surfaced on February, 2002, when Allied Irish and Allfirst suffered a (670) million dollar foreign exchange trading loss at the hands of a thirty-seven year old foreign exchange trader by the name of John Rusnak who was employed by Allfirst for (7) years. During 2001, Rusnak made bad trading decisions with regard to the increase in the value of the Japanese Yen and instead of confessing his problem to management, he tried to cover it up by fraudent means, which consitsed of falsified option trades & fake confirmations and acting as a proprietary trader. He took advantage of weak and inexperienced employees in the Treasury groups and when his losses became to high, he tried to make up for them by selling deep currency options to raise quick cash. But this did not work out because the company had to pay the client when the options matured. In the end, it was confirmed that the losses may have been directly Rusnaks responsibilty but it was Allies’s fault because if the proper controls were in place, a situation of this magnitude would never have taken place.
Concepts: There was a variety of concepts used in this case. Security are policies and technical measures used to prevent unauthorized access, alternation, theft or physical damage to information systems. Controls are all methods, policies and procedures that ensure protection of the organization’s assets, accuracy and reliability of its records and operational adherance to management standards. General controls are overall controls that establish a framework for controlling the design, security and use of computer programs throughout an organization. Application controls are those which are unique to each computerized application. Data Security controls are those which ensure that data files on either disk or tape are not subject to unauthorized access, change or destruction. Administrative controls are formalized standards, rules, procedures and disciplines to ensure that the organization’s controls are properly executed and enforced. Online Transaction Processing is a transaction processing mode in which transactions entered online are immediately processed by the computer. Authentication gives each party in the transaction the ability to identify the other party. Message Integrity is the ability to ascertain that a transmitted message has not been copied or altered. Digital Signature is a digital code that can be attached to an electronically transmitted message to uniquely identify its contents and sender. Digital Certificate is an attachment to an electronic message to verify the identity of the sender and to provide the receiver with the means to encode a reply. Risk Assessment is determining the potential frequency of the occurrence of a problem and the potential damage if the problem were to occur. It is also used to determine the cost/benefit of a control. Data Quality Audit is a survey or sample of files to determine accuracy and completeness of data in an informations system. Data Cleansing corrects errors and inconsistencies in data to increase accuracy so that they can be used in a standard company-wide format. were to occur. MIS Audit identifies all the controls that govern individual information systems and assesses their effectiveness. Walkthrough is a review of specification or design document by a small group of people carefully selected based on the skills needed for the particular objectives being tested. Debugging is the process of discovering and eliminating the errors and defects in the program code.
Discussion: On February, 2002, due to a lack of proper security measures and controls, Allied Irish and Allfirst suffered a (670) million dollar foreign exchange trading loss at the hands of a thirty-seven year old foreign exchange trader by the name of John Rusnak who was employed by Allfirst for (7) years. During 2001, Rusnak made bad trading decisions with regard to the increase in the value of the Japanese Yen and instead of confessing his problem to management, he tried to cover it up by fraudent means, which consitsed of falsified option trades & fake confirmations and acting as a proprietary trader. He then tried to make up for his losses by selling deep currency options to raise quick cash. But this did not work out because the company had to pay the client when the options matured. In the end, it was confirmed that the losses may have been directly Rusnaks responsibilty but it was Allies’s fault because if the proper controls were in place, a situation of this magnitude would never have taken place. There were major weaknesses at Allfirst and Allied Irish. Firstly, their employees in the Treasury department were inexperienced and they lacked the proper training and had poor supervision, which in any case would lead to laziness. In addition, Rusnak was allowed to trade while on vacation, which in itself is a direct violation of company policy. According to industry standards, when a trade is made it should always be accompanied by a hedge to guard against losses; however, there were no controls in place that ensured that these hedges were ever purchased. Thirdly, all traders have limits as to the amount of trades they can do at a given time, yet Rusnak was allowed to perform trades although he was well above his limit. Fourthly, there was no segmentation of duties between those of the front office, trading desk or back office. According to the case, there were many management, organization and technology factors that contributed to these weaknesses. For example, AIB had installed Opics in the back office at Allfirst, but did not install the its sister software called Tropics at it’s front office. AIB was fully aware that these systems work hand in hand and in order for them to work effectively, they would have to ensure that both systems were in place. Also, AIB used Crossnar Matching Service, which automatically electrically confirms both sides of a trade in two minutes; but did not implement the system at Allfirst and as a result, they would have to call to validate a trade. This had a negative effect on them because if they had a trade with a bank in Japan they would have to call at either midnight or 1 am in order to speak with someone in their back office. Management is responsible for developing the control structure and quality standards for the organization. When they chose to look the other way instead of dealing with Rusnak when they were warned by Smith and others, they contributed indirectly to his fraudelent behavior. Also, when Rusnak realized that the Monte Carlo was inadequate, he told management but they turned him down for budgetary reasons. As with management, the characteristics of the organization play a large role in determining its approach to quality assurance and control issues. As it was the duty of the organization to create high levels of security and quality in information systems, they too contributed to theses weaknesses because the proper systems were put in place in AIB, but they did not feel the need to proper implement the same at Allfirst. So, in this regard, they too contributed to the weaknesses. There are a number of technologies for promoting system quality and security. With technologies such as data security software, they should have been able to detect any unusual events from occuring, but as these were not in place at that time, they also contributed to the weaknessed of AIB and Allfirst. Undoubtably, the person responsible for the Rusnak trading losses was Rusnak himself. However, he did not work alone. For every person that allowed him to short cut control measures so that he could cover up the losses, they too are responsible. For example, the person who was persuaded to go home and not call Japan to confirm the trade cost the company millions because of their negligence. Also, those persons who allowed him to give them information that he compiled on his own computer instead of them doing it themselves have also contributed to his fraudulent behavior and are also liable. Management also played a huge role in this situation because they knew that he was trading over his limit and they knew that he had a position in Yen of more than one billion dollars, but didn’t question anything because according to them they were making money so there wasn’t a problem if some rules had to be broken in order to achieve profits. Lastly, AIB and Allfirst are also liable because AIB knew that it had not implemented the proper control measures to protect its organization against fraud. They are also at fault because when Rusnak was trying to make money with what was called synthetic loans, AIB executives had to approve them, which meand that they had to know that something was wrong with what Rusnak was doing. It is evident that the proper information systems were not in place. As this is the age of technology, there are many computerized systems that were created to ensure that proper control measures are carried out. If the proper general and application controls were in place, then Rusnak’s scheme would have been caught from its inception. General controls are essential for a company because they not only establish a framework for controlling the design and security, but it also regulates the use of computer programs throughout the organization. Application programs are equally important as they are comprised of specific controls unique to each computerized application. Firstly, Software and Hardware controls could have been implemented to monitor the use of the system software and prevent unauthorized access of software programs, system software, and computer programs. In addition, they would have also insured that the computer hardware is physically secure and to check for equipment malfunction. Secondly, they could have implemented computer operations controls and data security controls that would assists the company’s control system by overseeing the work of the computer department to ensure that programmed procedures are consistently and correctly applied to the storage and processing of data. Also, it would have assisted them by ensuring that valuable business data files on either disk or tape are not subject to unautyhorized access, change, or destruction while they are in use or storage. Thirdly, there are implementation and administrative controls that could have been implemented to audit the systems development process at various points to ensure that the process is properly controlled and managed. In addition, they would have formalized standards, rules, procedures, and control disciplines to ensure that the organization’s general application controls are properly executed and enforced. There are also other systems such as debt security controls and administrative controls that would have ensured that non authorized users had no access to certain files and that proper procedures were in place to ensure that the organization’s controls are properly executed. In that way, when those fake confirmations were put into the system, they would have been automatically kicked out. Online transaction processing could have also prevented this type of situation by processing transactions as soon as they are entered into the system. If this was in place, then they would not have had to stay late to call Japan to confirm the trades because the system would have automatically confirmed them. They could have implemented authentication that would have been able to assist them with the identity of the other party on the confirmation. There are also other security measures such as a message integrity system that could have alerted them to what was going on years earlier. In addition, they could have created a digital certificate that would not only have identified the person with whom the transaction is being conducted, but also it would allow them to reply to the sender. If these information systems were implemented, Rusnak’s scheme could have been prevented. If these informations systems were put in place, Rusnek would have been either prevented or caught earlier on because these systems were created to minimize the risk of errors or fraudulent manipulation of the organized assets’s. If I were responsible for designing new information systems fro AIB and Allfirst, I would first determine which controls are required by identifying all of the control points and control weaknesses and performing a risk assessment. Then, I would perform a data quality audit and MIS audit to determine how to effectively safeguard systems without making them unusable. When this part of my strategy is complete, I would then begin part (2) by implementing the proper controls to ensure that this type of situtation nevers occurs again. These controls would include all methods, policies, and organization’a assets, the accuracy and reliability of accounting records, and adherence to management and industry standards. In order to do this I would implement general controls to handle the overall design, security, and use of computers, programs and files for their information technology infrastructure. This would include physical hardware controls, system software controls, data files security controls, computer operations controls, controls over the implementation process and administrative disciplines. In addition to the general controls, I would also implement application controls because it focuses on the completeness and accuracy of input, updating and maintenance, and the validity of the information in the system. Before I complete the new systems, I would perform a data cleansing and debugging process to eliminate any errors and lastly I would conduct a walkthrough that would consist of qualified professionals so that the systems could be tested. Once these measures have been put into place, Allfirst and AIB’s control problems would be solved.
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Concepts: There was a variety of concepts used in this case. Security are policies and technical measures used to prevent unauthorized access, alternation, theft or physical damage to information systems. Controls are all methods, policies and procedures that ensure protection of the organization’s assets, accuracy and reliability of its records and operational adherance to management standards. General controls are overall controls that establish a framework for controlling the design, security and use of computer programs throughout an organization. Application controls are those which are unique to each computerized application. Data Security controls are those which ensure that data files on either disk or tape are not subject to unauthorized access, change or destruction. Administrative controls are formalized standards, rules, procedures and disciplines to ensure that the organization’s controls are properly executed and enforced. Online Transaction Processing is a transaction processing mode in which transactions entered online are immediately processed by the computer. Authentication gives each party in the transaction the ability to identify the other party. Message Integrity is the ability to ascertain that a transmitted message has not been copied or altered. Digital Signature is a digital code that can be attached to an electronically transmitted message to uniquely identify its contents and sender. Digital Certificate is an attachment to an electronic message to verify the identity of the sender and to provide the receiver with the means to encode a reply. Risk Assessment is determining the potential frequency of the occurrence of a problem and the potential damage if the problem were to occur. It is also used to determine the cost/benefit of a control. Data Quality Audit is a survey or sample of files to determine accuracy and completeness of data in an informations system. Data Cleansing corrects errors and inconsistencies in data to increase accuracy so that they can be used in a standard company-wide format. were to occur. MIS Audit identifies all the controls that govern individual information systems and assesses their effectiveness. Walkthrough is a review of specification or design document by a small group of people carefully selected based on the skills needed for the particular objectives being tested. Debugging is the process of discovering and eliminating the errors and defects in the program code.
Discussion: On February, 2002, due to a lack of proper security measures and controls, Allied Irish and Allfirst suffered a (670) million dollar foreign exchange trading loss at the hands of a thirty-seven year old foreign exchange trader by the name of John Rusnak who was employed by Allfirst for (7) years. During 2001, Rusnak made bad trading decisions with regard to the increase in the value of the Japanese Yen and instead of confessing his problem to management, he tried to cover it up by fraudent means, which consitsed of falsified option trades & fake confirmations and acting as a proprietary trader. He then tried to make up for his losses by selling deep currency options to raise quick cash. But this did not work out because the company had to pay the client when the options matured. In the end, it was confirmed that the losses may have been directly Rusnaks responsibilty but it was Allies’s fault because if the proper controls were in place, a situation of this magnitude would never have taken place. There were major weaknesses at Allfirst and Allied Irish. Firstly, their employees in the Treasury department were inexperienced and they lacked the proper training and had poor supervision, which in any case would lead to laziness. In addition, Rusnak was allowed to trade while on vacation, which in itself is a direct violation of company policy. According to industry standards, when a trade is made it should always be accompanied by a hedge to guard against losses; however, there were no controls in place that ensured that these hedges were ever purchased. Thirdly, all traders have limits as to the amount of trades they can do at a given time, yet Rusnak was allowed to perform trades although he was well above his limit. Fourthly, there was no segmentation of duties between those of the front office, trading desk or back office. According to the case, there were many management, organization and technology factors that contributed to these weaknesses. For example, AIB had installed Opics in the back office at Allfirst, but did not install the its sister software called Tropics at it’s front office. AIB was fully aware that these systems work hand in hand and in order for them to work effectively, they would have to ensure that both systems were in place. Also, AIB used Crossnar Matching Service, which automatically electrically confirms both sides of a trade in two minutes; but did not implement the system at Allfirst and as a result, they would have to call to validate a trade. This had a negative effect on them because if they had a trade with a bank in Japan they would have to call at either midnight or 1 am in order to speak with someone in their back office. Management is responsible for developing the control structure and quality standards for the organization. When they chose to look the other way instead of dealing with Rusnak when they were warned by Smith and others, they contributed indirectly to his fraudelent behavior. Also, when Rusnak realized that the Monte Carlo was inadequate, he told management but they turned him down for budgetary reasons. As with management, the characteristics of the organization play a large role in determining its approach to quality assurance and control issues. As it was the duty of the organization to create high levels of security and quality in information systems, they too contributed to theses weaknesses because the proper systems were put in place in AIB, but they did not feel the need to proper implement the same at Allfirst. So, in this regard, they too contributed to the weaknesses. There are a number of technologies for promoting system quality and security. With technologies such as data security software, they should have been able to detect any unusual events from occuring, but as these were not in place at that time, they also contributed to the weaknessed of AIB and Allfirst. Undoubtably, the person responsible for the Rusnak trading losses was Rusnak himself. However, he did not work alone. For every person that allowed him to short cut control measures so that he could cover up the losses, they too are responsible. For example, the person who was persuaded to go home and not call Japan to confirm the trade cost the company millions because of their negligence. Also, those persons who allowed him to give them information that he compiled on his own computer instead of them doing it themselves have also contributed to his fraudulent behavior and are also liable. Management also played a huge role in this situation because they knew that he was trading over his limit and they knew that he had a position in Yen of more than one billion dollars, but didn’t question anything because according to them they were making money so there wasn’t a problem if some rules had to be broken in order to achieve profits. Lastly, AIB and Allfirst are also liable because AIB knew that it had not implemented the proper control measures to protect its organization against fraud. They are also at fault because when Rusnak was trying to make money with what was called synthetic loans, AIB executives had to approve them, which meand that they had to know that something was wrong with what Rusnak was doing. It is evident that the proper information systems were not in place. As this is the age of technology, there are many computerized systems that were created to ensure that proper control measures are carried out. If the proper general and application controls were in place, then Rusnak’s scheme would have been caught from its inception. General controls are essential for a company because they not only establish a framework for controlling the design and security, but it also regulates the use of computer programs throughout the organization. Application programs are equally important as they are comprised of specific controls unique to each computerized application. Firstly, Software and Hardware controls could have been implemented to monitor the use of the system software and prevent unauthorized access of software programs, system software, and computer programs. In addition, they would have also insured that the computer hardware is physically secure and to check for equipment malfunction. Secondly, they could have implemented computer operations controls and data security controls that would assists the company’s control system by overseeing the work of the computer department to ensure that programmed procedures are consistently and correctly applied to the storage and processing of data. Also, it would have assisted them by ensuring that valuable business data files on either disk or tape are not subject to unautyhorized access, change, or destruction while they are in use or storage. Thirdly, there are implementation and administrative controls that could have been implemented to audit the systems development process at various points to ensure that the process is properly controlled and managed. In addition, they would have formalized standards, rules, procedures, and control disciplines to ensure that the organization’s general application controls are properly executed and enforced. There are also other systems such as debt security controls and administrative controls that would have ensured that non authorized users had no access to certain files and that proper procedures were in place to ensure that the organization’s controls are properly executed. In that way, when those fake confirmations were put into the system, they would have been automatically kicked out. Online transaction processing could have also prevented this type of situation by processing transactions as soon as they are entered into the system. If this was in place, then they would not have had to stay late to call Japan to confirm the trades because the system would have automatically confirmed them. They could have implemented authentication that would have been able to assist them with the identity of the other party on the confirmation. There are also other security measures such as a message integrity system that could have alerted them to what was going on years earlier. In addition, they could have created a digital certificate that would not only have identified the person with whom the transaction is being conducted, but also it would allow them to reply to the sender. If these information systems were implemented, Rusnak’s scheme could have been prevented. If these informations systems were put in place, Rusnek would have been either prevented or caught earlier on because these systems were created to minimize the risk of errors or fraudulent manipulation of the organized assets’s. If I were responsible for designing new information systems fro AIB and Allfirst, I would first determine which controls are required by identifying all of the control points and control weaknesses and performing a risk assessment. Then, I would perform a data quality audit and MIS audit to determine how to effectively safeguard systems without making them unusable. When this part of my strategy is complete, I would then begin part (2) by implementing the proper controls to ensure that this type of situtation nevers occurs again. These controls would include all methods, policies, and organization’a assets, the accuracy and reliability of accounting records, and adherence to management and industry standards. In order to do this I would implement general controls to handle the overall design, security, and use of computers, programs and files for their information technology infrastructure. This would include physical hardware controls, system software controls, data files security controls, computer operations controls, controls over the implementation process and administrative disciplines. In addition to the general controls, I would also implement application controls because it focuses on the completeness and accuracy of input, updating and maintenance, and the validity of the information in the system. Before I complete the new systems, I would perform a data cleansing and debugging process to eliminate any errors and lastly I would conduct a walkthrough that would consist of qualified professionals so that the systems could be tested. Once these measures have been put into place, Allfirst and AIB’s control problems would be solved.
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Thursday, February 5, 2009
Australian Industry: Commonwealth Bank
Introduction - All over the western world it is becoming more common for governments to privatize publicly owned companies. However, is the privatization of publicly owned businesses beneficial to the Australian economy? This essay will examine this question with specific reference to the recent privatization of the Commonwealth Bank of Australia (CBA).
History - The Commonwealth Bank of Australia was first founded in 1911 and was the first bank to combine both savings and general trading in the same company. This ingenuity gained them the security of a federal government guarantee and created ties between the bank and the federal government. From this foundation, the CBA became a government owned company. However, poor returns and inefficiency recently left the government no option but to privatize the company.
Privatization Theory - A basic argument given for privatization is that persons who work in government owned companies have few incentives to ensure that the enterprises they own are well run. On the other hand, it is believed that private owners do have incentives, for if their businesses perform poorly the companies will lose money. The theory holds that, not only will the business' customers see benefits, but as the privatized company becomes more efficient, the whole Australian economy will benefit. In the privatization of the CBA customers saw improvements in customer service, with the specialization of labour within the company. This included the creation of branches designed solely for processing, which utilized the specialization of labour. (Commonwealth Bank:About Us - http://about.commbank.com.au)
Similarly there are some negative consequences to the privatization of companies. Improvement in company efficiency is almost always accompanied by large layoffs of staff. The Commonwealth Bank was no exception, as the specialization of the workers dramatically improved their efficiency, which enabled the company to layoff staff without sacrificing any working capacity. An example of this can be found in rural Australia, where many workers were made redundant to improve branch productivity and company profits. (Financial Review: Events – www.afr.com)
Commonwealth Bank Events - The Australian Government decided to sell off the Commonwealth Bank in small sections, before fully privatizing the company. This proved successful. However, one minor problem the process encountered was in the selling of their shares to foreigners off shore. The state allowed this, for the money invested by foreigners helped to provide the capital needed to upgrade and modernize the firm, making it internationally competitive. Improvements in the CBA's operating and stock market performance, and rival banks reaction to the partial and full privatization announcements, were strongest after the Bank had been fully privatized. Long-term stock market performance improved markedly as the proportion of government ownership decreased, with the Bank's cumulative abnormal returns being 50% more than those of its rivals three years after the Bank had been fully privatized.
By reducing costs and improving its profitability in the post-privatization period, it has outperformed its rivals on almost all the operating performance measures, and has become the most profitable bank in Australia. This is partly due to the effectiveness of the ‘performance based incentives’ system. The profits don’t end there, for the Government also benefits directly from the privatization. This is because Privatizations are usually organized as auctions, where bidders compete to offer the state the highest price, creating real income that can be used by the state as investment capital.
Commonwealth Bank – Profit Details
2001 2002
Revenue $8.824b $9.068b
Expenses $7.396b $6.016b
Pre-Tax Profit $3.405b $3.572b
Income Tax $993m $916m
Net Profit $2.398b $2.655b
Earnings Per Share $1.896 $2.093
Dividend Per Share $1.36 $1.50
Table 1: Commonwealth Bank Profit Details (Financial Review)
Relation to Government - The benefits governments gain from privatizing companies extends further than just receiving money from the sale of the assets. The improvements in company efficiency not only removes the financial burden from the government but also help to strengthen the Australian economy. This is done through the creation of new capital and the specialization of the labour force. These two factors are significant in providing and maintaining a strong economy.
Conclusion - The implications of these results are that governments contemplating privatization of state-owned enterprises are required to fully privatize, in order to achieve strong gains in efficiency, profitability and stock market performance. The keystone in the success of privatization is the ‘profit motive’ which is responsible for improvements in efficiency and functionality of the business. The Privatization of the Commonwealth Bank of Australia is a perfect illustration of the benefits available in not only the end product, but also in the process involved. So the privatization of public owned companies can be beneficial to, and successful in, creating a stronger economy.
You can order a high-quality custom essay, term paper, research paper, thesis, dissertation, speech, book report or book review from our professional custom writing service. We have employed more than 500 highly qualified Ph.D. and Master's academic writers to provide students with professional academic writing help. Feel free to contact our company right now!
History - The Commonwealth Bank of Australia was first founded in 1911 and was the first bank to combine both savings and general trading in the same company. This ingenuity gained them the security of a federal government guarantee and created ties between the bank and the federal government. From this foundation, the CBA became a government owned company. However, poor returns and inefficiency recently left the government no option but to privatize the company.
Privatization Theory - A basic argument given for privatization is that persons who work in government owned companies have few incentives to ensure that the enterprises they own are well run. On the other hand, it is believed that private owners do have incentives, for if their businesses perform poorly the companies will lose money. The theory holds that, not only will the business' customers see benefits, but as the privatized company becomes more efficient, the whole Australian economy will benefit. In the privatization of the CBA customers saw improvements in customer service, with the specialization of labour within the company. This included the creation of branches designed solely for processing, which utilized the specialization of labour. (Commonwealth Bank:About Us - http://about.commbank.com.au)
Similarly there are some negative consequences to the privatization of companies. Improvement in company efficiency is almost always accompanied by large layoffs of staff. The Commonwealth Bank was no exception, as the specialization of the workers dramatically improved their efficiency, which enabled the company to layoff staff without sacrificing any working capacity. An example of this can be found in rural Australia, where many workers were made redundant to improve branch productivity and company profits. (Financial Review: Events – www.afr.com)
Commonwealth Bank Events - The Australian Government decided to sell off the Commonwealth Bank in small sections, before fully privatizing the company. This proved successful. However, one minor problem the process encountered was in the selling of their shares to foreigners off shore. The state allowed this, for the money invested by foreigners helped to provide the capital needed to upgrade and modernize the firm, making it internationally competitive. Improvements in the CBA's operating and stock market performance, and rival banks reaction to the partial and full privatization announcements, were strongest after the Bank had been fully privatized. Long-term stock market performance improved markedly as the proportion of government ownership decreased, with the Bank's cumulative abnormal returns being 50% more than those of its rivals three years after the Bank had been fully privatized.
By reducing costs and improving its profitability in the post-privatization period, it has outperformed its rivals on almost all the operating performance measures, and has become the most profitable bank in Australia. This is partly due to the effectiveness of the ‘performance based incentives’ system. The profits don’t end there, for the Government also benefits directly from the privatization. This is because Privatizations are usually organized as auctions, where bidders compete to offer the state the highest price, creating real income that can be used by the state as investment capital.
Commonwealth Bank – Profit Details
2001 2002
Revenue $8.824b $9.068b
Expenses $7.396b $6.016b
Pre-Tax Profit $3.405b $3.572b
Income Tax $993m $916m
Net Profit $2.398b $2.655b
Earnings Per Share $1.896 $2.093
Dividend Per Share $1.36 $1.50
Table 1: Commonwealth Bank Profit Details (Financial Review)
Relation to Government - The benefits governments gain from privatizing companies extends further than just receiving money from the sale of the assets. The improvements in company efficiency not only removes the financial burden from the government but also help to strengthen the Australian economy. This is done through the creation of new capital and the specialization of the labour force. These two factors are significant in providing and maintaining a strong economy.
Conclusion - The implications of these results are that governments contemplating privatization of state-owned enterprises are required to fully privatize, in order to achieve strong gains in efficiency, profitability and stock market performance. The keystone in the success of privatization is the ‘profit motive’ which is responsible for improvements in efficiency and functionality of the business. The Privatization of the Commonwealth Bank of Australia is a perfect illustration of the benefits available in not only the end product, but also in the process involved. So the privatization of public owned companies can be beneficial to, and successful in, creating a stronger economy.
You can order a high-quality custom essay, term paper, research paper, thesis, dissertation, speech, book report or book review from our professional custom writing service. We have employed more than 500 highly qualified Ph.D. and Master's academic writers to provide students with professional academic writing help. Feel free to contact our company right now!
Arrow Electronics
Arrow Electronics must tackle several issues in regards to its performance appraisal system for its non-sales employees. The performance appraisal problems that Arrow faces are similar to many companies in today’s business environment. Steve Kaufman, CEO, understands and stresses the importance of human resource management at Arrow; usually the first hurdle an organization must clear before delving into the specific problems associated with performance management. Kaufman has concluded that the performance appraisal system needs further adjustment in order to meet his needs. To do so, Kaufman must first identify the problems associated with the current performance appraisal system to develop solutions.
The objective of any performance appraisal (PA) system is to identify core competencies, set goals and standards to measure, maintain and improve job performance for short-term and long-term results for both the employee and the organization. Arrow will utilize the information obtained from the PA process for administrative reasons such as identifying those who deserve promotions and/or salary increases, those who should be trained as future stars of the organization, and those who should be let go. The information will be used for developmental reasons to identify career goals, problem areas, and the actions to improve skills. The PA information is also used for strategic reasons to communicate organizational goals, to align employee behaviors to those goals. Finally, this information will be used for research/evaluation purposes to analyze other human capital management practices in the organization such as recruitment practices and training.
Most of the time, the individual/employee goals differ greatly from those of the organization/manager when participating in an evaluation process. The conflicts that arise between managers and their employees contribute to the ambivalence that managers and employees have when involved in the performance appraisal system. Kaufman believes that those efforts have been unsuccessful due to his managers’ inabilities to accurately differentiate between employees when determining high versus low performers. This is demonstrated by the managers’ failure to utilize more of the rating range when evaluating subordinates. The managers tend to evaluate all employees as average performers and are reluctant to provide constructive criticism to employees. When a majority of the employees are evaluated as average, senior management is unable to determine how employees are ranked within the organization. The problem can be associated not only with the inherent conflicts between managers and subordinates, but also the fact that many of Kaufman’s managers are promoted without proper managerial training. Therefore, the less seasoned managers may not have learned the skills necessary to manage others, to objectively evaluate the employees they supervise, or to coach/mentor their subordinates.
Kaufman has also come across several biases in the PA system that stem from manager favoritism and lack of uniformity in the evaluation process. Annually disparate individual performance ratings are also witnessed. For example some employee ratings change from year to year dependent upon a number of factors including if a new manager evaluating the employee, or that employee being courted by a competitor that year. Kaufman noticed that there was disparity among the overall branches as well. Some managers evaluated on a more stringent basis than others, often leading to more successful branches having lower performance ratings than less successful branches. Favoritism is another example found at Arrow. Some managers gave employees that worked closely with them higher ratings than those that did not.
There are also many concerns regarding the actual performance appraisal form itself. Issues of particular concern include: the appraisal function is only performed once a year; performance competencies are not clearly aligned with the companies goals; the form appears to be trait based and subjective; employees receive their rating from their immediate boss (who may not be involved with the employee on day to day basis); the form uses the same criteria to address all jobs (very generic and shallow); the form at times does not take into account all aspects of an employees job functions; employees have not been allowed to give feed back on criterion; and there is not an evaluation system in place to identify whether the form and performance appraisal system as a whole are effective. Managers were also concerned that Kaufman was setting a percentage amount on how many employees should be in each rating category and was demanding that each person receive a rating of at least a two on at least one of the seven criteria for evaluation.
Arrow has grown significantly, changed its organizational focus, and acquired several companies since its inception. Senior management at Arrow must rely on the validity of the performance appraisals in determining who to keep on board when integrating new companies into the fold. To meet these goals, Arrow must reanalyze its existing PA system in order to build a more effective PA system. Arrow must begin by determining the purpose of the performance appraisal. The purposes of the PA at Arrow are to provide an accurate uniform system for performance, identify areas for improvement, identify those who should be promoted or those who have the greatest future potential, and to develop existing teams into better, more dynamic groups of people.
After determining the purpose of the PA system, the next step is to conduct a needs assessment for the organization, including position appraisals (i.e. job analysis), and individual/person analysis (these analyses can be captured by employee surveys, interviews, and focus groups). This will provide the feedback and information necessary to developing the measurements and content of the performance appraisal form. When determining the measurements and content, Arrow should determine the dimensions to be appraised, while using objective criteria based on standards set for performance utilizing the job analysis and/or judgmental criteria based on knowledge, skills, abilities and other criteria(KSAO’s – provided in job analysis), behaviors and performance. The recommended solution is a mix of both to fully assess all aspects of an individual or team performance.
In addition to the content, one must consider the rating format, or method that needs to be adopted for the appraisal form. There are several types of rating formats, however, the most preferred format for Arrow is the Behavior Observation Scale (BOS), which incorporates very specific job activities and goals. The BOS is also easy to put together, provides specific feedback to rate the employee, and provides a positive forum for evaluation process. Raters need to be aware there is a tendency to make trait-based judgments with this format. The BOS format is simple to use and understand, is strongly associated with tasks performed, and includes parallel stimulus/response, (S-R) tracking measures. The expected result is that the scores on the stimulus scale will be the same as on the response scale, and will produce the behavior desired by the Arrow executive team.
There are several factors Arrow should keep in mind when developing the content of the performance appraisal form that could impose different biases upon the rating process. Some biases already exist in the current PA environment at Arrow such as: leniency tendency; giving high ratings regardless of actual performance; central tendency; giving middle of road ratings; and affect tendency; rating others according to the rater’s feelings towards that employee. There are several other biases to be aware of: severity tendency; halo/horns; stereotyping; primacy/recency effects; and fundamental attribution error.
Properly developing a rater and ratee training program is essential to the PA system as well. The training will provide the raters with the understanding of how to avoid or respond to bias situations, while provide the ratees with information and expectations of what they will experience throughout the process. The raters and ratees should also be trained to understand the observations made and how to keep a diary of daily activities. The program should also incorporate frame of reference training to avoid making inferences or assumptive statements about the behavior of the ratee. When inferences versus behaviors are indicated in the PA, the ratee can become defensive, negating the desired effects of the PA system.
Defining the raters and the ratees and determining if the ratees’ performance assessments will be based on individual or team performance should be determined as part of the development of the rater program. An important determination in defining the raters is deciding who is in the best position to observe the ratee and provide feedback about the ratee’s performance. Arrow should incorporate multiple sources of feedback, such as 360degree feedback, with observation appraisals from a variety of people (at least 3) who interact with the employee on a regular basis. The raters should only rate the performance criteria that are actually observed in their interactions with the ratee. This feedback can come from the ratee’s supervisors, peers, subordinates, clients and self-assessment. For 360degree feedback to be successful the organization must be prepared, therefore management buy-in is key as resources and time are critical to the process.
A useful tool for the rater to use in the interview process is an appraisal checklist (see appendix A). The appraisal checklist is essential in making sure that the rater follows guidelines and covers all items to be addressed in the interview.
The performance appraisal should be implemented so that it occurs at least every six months, and if possible, on a quarterly basis with a strong emphasis on two-way communication. In actuality, PA management is a continual exercise. When there are no surprises to either party, supervisors can cultivate desired behaviors on a daily basis. A consistent evaluation process is key in recognizing the success and validity of the system, as well as providing a method to incorporate suggestions received in a feedback retrieval process. Arrow should assess the value of the PA system by polling the raters and ratees to determine its accuracy, usefulness.
Finally, the PA plan should be incorporated within all human resource functions and management areas, such as employee training and selection processes. Training is an important function of a successful human resource management practice. As mentioned previously, there is a need for a management training program (external to the PA system training functions) that would facilitate a smoother transition for the young employees promoted to management positions. This will alleviate some of the issues raised by employees such as managers not knowing how to manage the employees they supervise.
Job analysis is an integral function in both the selection process and a solid PA system. It is important to strongly define the KSAO’s, core competencies, and job functions in order to hire and then cultivate the caliber of employees that are needed at Arrow. Incorporating the selection process, training, and performance appraisal functions into a database that can be accessed through the human resource information system is essential to providing a uniform system of checks and balances between these functions, thereby allowing Arrow to meet its goal toward developing a better workforce.
You can order a high-quality custom essay, term paper, research paper, thesis, dissertation, speech, book report or book review from our professional custom writing service. We have employed more than 500 highly qualified Ph.D. and Master's academic writers to provide students with professional academic writing help. Feel free to contact our company right now!
The objective of any performance appraisal (PA) system is to identify core competencies, set goals and standards to measure, maintain and improve job performance for short-term and long-term results for both the employee and the organization. Arrow will utilize the information obtained from the PA process for administrative reasons such as identifying those who deserve promotions and/or salary increases, those who should be trained as future stars of the organization, and those who should be let go. The information will be used for developmental reasons to identify career goals, problem areas, and the actions to improve skills. The PA information is also used for strategic reasons to communicate organizational goals, to align employee behaviors to those goals. Finally, this information will be used for research/evaluation purposes to analyze other human capital management practices in the organization such as recruitment practices and training.
Most of the time, the individual/employee goals differ greatly from those of the organization/manager when participating in an evaluation process. The conflicts that arise between managers and their employees contribute to the ambivalence that managers and employees have when involved in the performance appraisal system. Kaufman believes that those efforts have been unsuccessful due to his managers’ inabilities to accurately differentiate between employees when determining high versus low performers. This is demonstrated by the managers’ failure to utilize more of the rating range when evaluating subordinates. The managers tend to evaluate all employees as average performers and are reluctant to provide constructive criticism to employees. When a majority of the employees are evaluated as average, senior management is unable to determine how employees are ranked within the organization. The problem can be associated not only with the inherent conflicts between managers and subordinates, but also the fact that many of Kaufman’s managers are promoted without proper managerial training. Therefore, the less seasoned managers may not have learned the skills necessary to manage others, to objectively evaluate the employees they supervise, or to coach/mentor their subordinates.
Kaufman has also come across several biases in the PA system that stem from manager favoritism and lack of uniformity in the evaluation process. Annually disparate individual performance ratings are also witnessed. For example some employee ratings change from year to year dependent upon a number of factors including if a new manager evaluating the employee, or that employee being courted by a competitor that year. Kaufman noticed that there was disparity among the overall branches as well. Some managers evaluated on a more stringent basis than others, often leading to more successful branches having lower performance ratings than less successful branches. Favoritism is another example found at Arrow. Some managers gave employees that worked closely with them higher ratings than those that did not.
There are also many concerns regarding the actual performance appraisal form itself. Issues of particular concern include: the appraisal function is only performed once a year; performance competencies are not clearly aligned with the companies goals; the form appears to be trait based and subjective; employees receive their rating from their immediate boss (who may not be involved with the employee on day to day basis); the form uses the same criteria to address all jobs (very generic and shallow); the form at times does not take into account all aspects of an employees job functions; employees have not been allowed to give feed back on criterion; and there is not an evaluation system in place to identify whether the form and performance appraisal system as a whole are effective. Managers were also concerned that Kaufman was setting a percentage amount on how many employees should be in each rating category and was demanding that each person receive a rating of at least a two on at least one of the seven criteria for evaluation.
Arrow has grown significantly, changed its organizational focus, and acquired several companies since its inception. Senior management at Arrow must rely on the validity of the performance appraisals in determining who to keep on board when integrating new companies into the fold. To meet these goals, Arrow must reanalyze its existing PA system in order to build a more effective PA system. Arrow must begin by determining the purpose of the performance appraisal. The purposes of the PA at Arrow are to provide an accurate uniform system for performance, identify areas for improvement, identify those who should be promoted or those who have the greatest future potential, and to develop existing teams into better, more dynamic groups of people.
After determining the purpose of the PA system, the next step is to conduct a needs assessment for the organization, including position appraisals (i.e. job analysis), and individual/person analysis (these analyses can be captured by employee surveys, interviews, and focus groups). This will provide the feedback and information necessary to developing the measurements and content of the performance appraisal form. When determining the measurements and content, Arrow should determine the dimensions to be appraised, while using objective criteria based on standards set for performance utilizing the job analysis and/or judgmental criteria based on knowledge, skills, abilities and other criteria(KSAO’s – provided in job analysis), behaviors and performance. The recommended solution is a mix of both to fully assess all aspects of an individual or team performance.
In addition to the content, one must consider the rating format, or method that needs to be adopted for the appraisal form. There are several types of rating formats, however, the most preferred format for Arrow is the Behavior Observation Scale (BOS), which incorporates very specific job activities and goals. The BOS is also easy to put together, provides specific feedback to rate the employee, and provides a positive forum for evaluation process. Raters need to be aware there is a tendency to make trait-based judgments with this format. The BOS format is simple to use and understand, is strongly associated with tasks performed, and includes parallel stimulus/response, (S-R) tracking measures. The expected result is that the scores on the stimulus scale will be the same as on the response scale, and will produce the behavior desired by the Arrow executive team.
There are several factors Arrow should keep in mind when developing the content of the performance appraisal form that could impose different biases upon the rating process. Some biases already exist in the current PA environment at Arrow such as: leniency tendency; giving high ratings regardless of actual performance; central tendency; giving middle of road ratings; and affect tendency; rating others according to the rater’s feelings towards that employee. There are several other biases to be aware of: severity tendency; halo/horns; stereotyping; primacy/recency effects; and fundamental attribution error.
Properly developing a rater and ratee training program is essential to the PA system as well. The training will provide the raters with the understanding of how to avoid or respond to bias situations, while provide the ratees with information and expectations of what they will experience throughout the process. The raters and ratees should also be trained to understand the observations made and how to keep a diary of daily activities. The program should also incorporate frame of reference training to avoid making inferences or assumptive statements about the behavior of the ratee. When inferences versus behaviors are indicated in the PA, the ratee can become defensive, negating the desired effects of the PA system.
Defining the raters and the ratees and determining if the ratees’ performance assessments will be based on individual or team performance should be determined as part of the development of the rater program. An important determination in defining the raters is deciding who is in the best position to observe the ratee and provide feedback about the ratee’s performance. Arrow should incorporate multiple sources of feedback, such as 360degree feedback, with observation appraisals from a variety of people (at least 3) who interact with the employee on a regular basis. The raters should only rate the performance criteria that are actually observed in their interactions with the ratee. This feedback can come from the ratee’s supervisors, peers, subordinates, clients and self-assessment. For 360degree feedback to be successful the organization must be prepared, therefore management buy-in is key as resources and time are critical to the process.
A useful tool for the rater to use in the interview process is an appraisal checklist (see appendix A). The appraisal checklist is essential in making sure that the rater follows guidelines and covers all items to be addressed in the interview.
The performance appraisal should be implemented so that it occurs at least every six months, and if possible, on a quarterly basis with a strong emphasis on two-way communication. In actuality, PA management is a continual exercise. When there are no surprises to either party, supervisors can cultivate desired behaviors on a daily basis. A consistent evaluation process is key in recognizing the success and validity of the system, as well as providing a method to incorporate suggestions received in a feedback retrieval process. Arrow should assess the value of the PA system by polling the raters and ratees to determine its accuracy, usefulness.
Finally, the PA plan should be incorporated within all human resource functions and management areas, such as employee training and selection processes. Training is an important function of a successful human resource management practice. As mentioned previously, there is a need for a management training program (external to the PA system training functions) that would facilitate a smoother transition for the young employees promoted to management positions. This will alleviate some of the issues raised by employees such as managers not knowing how to manage the employees they supervise.
Job analysis is an integral function in both the selection process and a solid PA system. It is important to strongly define the KSAO’s, core competencies, and job functions in order to hire and then cultivate the caliber of employees that are needed at Arrow. Incorporating the selection process, training, and performance appraisal functions into a database that can be accessed through the human resource information system is essential to providing a uniform system of checks and balances between these functions, thereby allowing Arrow to meet its goal toward developing a better workforce.
You can order a high-quality custom essay, term paper, research paper, thesis, dissertation, speech, book report or book review from our professional custom writing service. We have employed more than 500 highly qualified Ph.D. and Master's academic writers to provide students with professional academic writing help. Feel free to contact our company right now!
Tuesday, February 3, 2009
Animal Research: For the Good of All Mankind
Animals play an amazing role in our lives. Whether they are assisting in search and rescue operations, working with law enforcement to solve crimes, or being our companion and friend, animals make our world healthier, happier and safer. Animals have also assisted in virtually every major medical advancement in the last century-for both human and animal health. From vaccinations and organ transplantation to bypass surgery and joint replacement, practically every present day protocol for the prevention, treatment, cure and control of disease is based on knowledge attained through animal research. Many of these medical findings were so profound, millions of healthy people are living proof of those results. Doctors and researchers overwhelming agree, based on the history of medical achievements, and the lack of dependable alternatives, the use of animals in medical research is both beneficial and necessary for the welfare of both humans and animals.
People of all ages continue to benefit from the medical discoveries using animals in research laboratories. This same research is also beneficial to the lives of animals. Pets, livestock, and animals in zoos live longer, more comfortable, and healthier as a result of animal research. Veterinarians can now treat diseases that once killed millions of animals every year. Vaccines for rabies, distemper and feline leukemia are all available because of animal research. History has shown that medical knowledge developed through animal research has saved countless lives, improved human and animal health, and has alleviated pain and suffering. Over the past one hundred years, more than sixty of the Nobel Prizes awarded for medicine were given for discoveries and advances where animals played an important part. Scientists and doctors who were awarded these prizes represented some of the best scientific minds and are responsible for some of the greatest medical breakthroughs in history. Only a few decades ago, people were dying, becoming paralyzed and crippled from diseases like smallpox, polio and diphtheria. The early 1900's produced two significant discoveries, Emil Adolf Von Behring’s development of a diphtheria antiserum and Ivan Pavlov’s findings on animal responses to various stimuli. Before the vaccination for diphtheria was developed, the disease was widespread, serious and often fatal. As many as 1 in 10 people, mostly children, became infected and many died. Equally as important were Pavlov’s findings on behavior through stimulation using dogs. These findings helped to understand human behavior and has had an enormous influence on western behavioral psychology. The discovery of insulin, from the successful use of laboratory animals, made it possible for millions of people with diabetes to liver longer, more productive lives. In 1954, doctors developed the culture that lead to a vaccine for polio. Doctor Albert Sabin later developed the oral polio vaccine. In a letter Doctor Sabin wrote he stated, “My own experience of over 60 years in biomedical research amply demonstrated that without the use of animals and human beings, it would have been impossible to acquire the important knowledge needed to prevent much suffering and premature death not only among humans but also among animals” (2). Penicillin was the first antibiotic that was successfully used in treating bacterial infections. Before its development, many people suffered and died of infections that are no longer considered dangerous. For example, just hurting yourself on a nail could eventually lead to death. Although it is true, penicillin was first discovered by Alexander Fleming in a petri dish, animal experiments paved the way for its clinical use.
Today, there are many important studies taking place in animal laboratories. Research to find cures for cancer, Alzheimer’s disease, and AIDS tops the list. Millions of people die of cancer related deaths every year. Medical breakthroughs, such as chemotherapy and cancerous sell reduction, have been the result of research on laboratory rats specifically bred for testing. Scientists are already testing a vaccine that slows the progress of Alzheimer’s in human patients and people with AIDS are receiving new drugs, first tested on animals, and living longer, more productive lives. Animal research will one day let us speak of cancer, Alzheimer’s disease, AIDS and many other diseases as diseases of the past.
Knowing that research animals are treated responsibly and humanely strengthen our understanding, so does separating the facts from the myths. Animal activists against animal research often take statements out of context and misrepresent historical developments to suggest that animal research was not essential to a particular, significant discovery. The following are examples of historical myths and the real facts behind the myths: The first myth is that dogs, cats, and monkeys are used more than any other animal in medical research. The fact is, practically all research animals are rodents-mice and rats-bred for this purpose. Dogs, cats, and other primates account for less than one percent of the total. Another myth, commonly misstated by animal activists, is the notion that research animals are kept in pain. Not true. A leading scientist at the Foundation for Biomedical Research states, “The vast majority of biomedical research does not result in significant pain or distress to research animals”(Hansen 4). Furthermore, The USDA Annual Report revealed that “sixty three percent of all research procedures with animals involved no more than slight or momentary pain or distress” (2). Another myth that animal activists want the public to believe is there are no laws or government regulations to protect research animals and scientist can do “anything they want” to laboratory animals. The truth is, the USDA has set extensive regulations for the care of animals in research. A federal law, the Animal Welfare Act, has set standards for the care and treatment of laboratory animals, including housing, feeding, cleanliness, ventilation, and veterinary care. Facilities must also register with and be inspected by the Animal and Planet Health Inspection Service (APHIS). The Animal Welfare Act also requires that each institution establish a committee which is responsible for evaluating animal programs. The committee has the power to stop any research if it believes USDA standards are not being met. Another popular myth is the belief computer models and cell cultures can replace animal testing. While medical and scientific advances achieved through animal research are often supplemented by the knowledge taken through non-animal methods, such as, computer models, in vitro research, and clinical observation, these alternative methods serve only as adjuncts to basic animal research. It is true, most of the animal rights myths are clearly based on a misunderstanding of biomedical science, but some seem to be based on deliberate and cleverly constructed misinformation. Dedicated people work in research facilities. Daily animal care is not a glamorous job. The caretaker’s pay, also far from glamourous, does not keep people in the business and maintaining a compassionate outlook while caring for animals whose lives will be taken has its emotional toll. So what are the rewards? They begin with the sense of purpose and knowing that you play a key part in their well-being, and knowing that the research can contribute to advances in medical care for people and animals.
Many believe that all animal lovers support the animal rights movement. This assumption is based on a misunderstanding of the difference of animal welfare and animal rights. The American Veterinary Medical Association defines animal welfare as, “A humane responsibility that encompasses all aspects of animal well-being, from proper housing and nutrition to preventative care, treatment of disease, and when necessary, humane euthanasia”(1). Not only do scientists recognize their moral obligations toward laboratory animals, they also know the importance of maintaining healthy animals. Animals that are not kept healthy result in bad research data. One research doctor states, “Scientists, veterinarians, physicians, surgeons and others who do research in animal laboratories are as much concerned about the care of animals as anyone can be. Their respect for the dignity of life and compassion for the sick and disabled, in fact, is what motivated them to search for ways of relieving the pain and suffering caused by diseases”(Barbour 3). In contrast to animal welfare supporters, animal rights activists believe that animals should have the same rights as humans. Michael W. Fox, former vice president of the Humane Society of the United States, put it this way, “The life of an ant and that of my child should be granted equal consideration”(1) Wow! I’m sure glad I’m not Mr. Fox’s child.
Another activist, definitely not in the running for mother of the year, is Ingrid Newkirk, President and co-founder of People for the Ethical Treatment of Animals,(PETA). Ms. Newkirk has been quoted as saying, “Animal liberationists do not separate out the human animal, so there is no rational basis for saying that a human being has special rights. A rat is a pig is a dog is a boy. They are all mammals” (1). Mammals yes, but hardly equal when talking about the importance of saving lives. It is difficult to support anyone that tries to make their point with such ridiculous claims. Many animal activists oppose animal research in any form, for any purpose, no matter how many human and animal lives might be saved. Although animal activists portray themselves as kind and compassionate, many in the movement sponsor and perpetrate illegal and violent activity-and these criminal acts are becoming more violent and more frequent. One chilling statistic was noted in recent years, “activists have stalked and assaulted members of the research community, harassed and threatened their families, broken into and destroyed labs, homes and vehicles, all in the name of animal rights” (Lewis 1).
History has shown us the medical wonders that have been achieved in laboratories with the help of animals, still, many believe there are reliable alternatives to using animals. Scientists, doctors, and medical researchers continue to search for alternatives to using animals in laboratories. Today, the concept of “The Three R’s”, refinement, reduction, and replacement as the first step leading to animal testing alternatives. Refinement refers to the modification of any procedure done to an animal in a laboratory from the time it is born until it is dead. These modifications should minimize any pain or distress. Reduction simply means doing anything that will reduce the number of animals being used in research. Using more of an animal and avoiding redundant experiments is all part of the reduction method. Replacement is achieved by taking experiments that do not need a living animal and using information based research, computer systems, human studies, cell tissue and organ culture. Even with the advancement in computer technology, there is no complete alternative to animal research. There is still an essential need to test drugs, medical devices and other promising treatments on animals before they are tested on humans because computer applications cannot give the same results as a living specimen.
Those who seek to end animal research, because they either reject it’s validity or because they believe the life of a rat is equal in importance to the life of a human, cannot dismiss the important medical findings achieved over the past century. The countless lives that have been saved because dedicated scientists continue to look for cures for cancer, AIDS and many other devastating diseases still plaguing this earth, cannot, and must not, be forgotten. Until these diseases are talked about as a “thing of the past”, and until more reliable alternatives are established, animal research must continue-for the good of all Mankind.
You can order a high-quality custom essay, term paper, research paper, thesis, dissertation, speech, book report or book review from our professional custom writing service. We have employed more than 500 highly qualified Ph.D. and Master's academic writers to provide students with professional academic writing help. Feel free to contact our company right now!
People of all ages continue to benefit from the medical discoveries using animals in research laboratories. This same research is also beneficial to the lives of animals. Pets, livestock, and animals in zoos live longer, more comfortable, and healthier as a result of animal research. Veterinarians can now treat diseases that once killed millions of animals every year. Vaccines for rabies, distemper and feline leukemia are all available because of animal research. History has shown that medical knowledge developed through animal research has saved countless lives, improved human and animal health, and has alleviated pain and suffering. Over the past one hundred years, more than sixty of the Nobel Prizes awarded for medicine were given for discoveries and advances where animals played an important part. Scientists and doctors who were awarded these prizes represented some of the best scientific minds and are responsible for some of the greatest medical breakthroughs in history. Only a few decades ago, people were dying, becoming paralyzed and crippled from diseases like smallpox, polio and diphtheria. The early 1900's produced two significant discoveries, Emil Adolf Von Behring’s development of a diphtheria antiserum and Ivan Pavlov’s findings on animal responses to various stimuli. Before the vaccination for diphtheria was developed, the disease was widespread, serious and often fatal. As many as 1 in 10 people, mostly children, became infected and many died. Equally as important were Pavlov’s findings on behavior through stimulation using dogs. These findings helped to understand human behavior and has had an enormous influence on western behavioral psychology. The discovery of insulin, from the successful use of laboratory animals, made it possible for millions of people with diabetes to liver longer, more productive lives. In 1954, doctors developed the culture that lead to a vaccine for polio. Doctor Albert Sabin later developed the oral polio vaccine. In a letter Doctor Sabin wrote he stated, “My own experience of over 60 years in biomedical research amply demonstrated that without the use of animals and human beings, it would have been impossible to acquire the important knowledge needed to prevent much suffering and premature death not only among humans but also among animals” (2). Penicillin was the first antibiotic that was successfully used in treating bacterial infections. Before its development, many people suffered and died of infections that are no longer considered dangerous. For example, just hurting yourself on a nail could eventually lead to death. Although it is true, penicillin was first discovered by Alexander Fleming in a petri dish, animal experiments paved the way for its clinical use.
Today, there are many important studies taking place in animal laboratories. Research to find cures for cancer, Alzheimer’s disease, and AIDS tops the list. Millions of people die of cancer related deaths every year. Medical breakthroughs, such as chemotherapy and cancerous sell reduction, have been the result of research on laboratory rats specifically bred for testing. Scientists are already testing a vaccine that slows the progress of Alzheimer’s in human patients and people with AIDS are receiving new drugs, first tested on animals, and living longer, more productive lives. Animal research will one day let us speak of cancer, Alzheimer’s disease, AIDS and many other diseases as diseases of the past.
Knowing that research animals are treated responsibly and humanely strengthen our understanding, so does separating the facts from the myths. Animal activists against animal research often take statements out of context and misrepresent historical developments to suggest that animal research was not essential to a particular, significant discovery. The following are examples of historical myths and the real facts behind the myths: The first myth is that dogs, cats, and monkeys are used more than any other animal in medical research. The fact is, practically all research animals are rodents-mice and rats-bred for this purpose. Dogs, cats, and other primates account for less than one percent of the total. Another myth, commonly misstated by animal activists, is the notion that research animals are kept in pain. Not true. A leading scientist at the Foundation for Biomedical Research states, “The vast majority of biomedical research does not result in significant pain or distress to research animals”(Hansen 4). Furthermore, The USDA Annual Report revealed that “sixty three percent of all research procedures with animals involved no more than slight or momentary pain or distress” (2). Another myth that animal activists want the public to believe is there are no laws or government regulations to protect research animals and scientist can do “anything they want” to laboratory animals. The truth is, the USDA has set extensive regulations for the care of animals in research. A federal law, the Animal Welfare Act, has set standards for the care and treatment of laboratory animals, including housing, feeding, cleanliness, ventilation, and veterinary care. Facilities must also register with and be inspected by the Animal and Planet Health Inspection Service (APHIS). The Animal Welfare Act also requires that each institution establish a committee which is responsible for evaluating animal programs. The committee has the power to stop any research if it believes USDA standards are not being met. Another popular myth is the belief computer models and cell cultures can replace animal testing. While medical and scientific advances achieved through animal research are often supplemented by the knowledge taken through non-animal methods, such as, computer models, in vitro research, and clinical observation, these alternative methods serve only as adjuncts to basic animal research. It is true, most of the animal rights myths are clearly based on a misunderstanding of biomedical science, but some seem to be based on deliberate and cleverly constructed misinformation. Dedicated people work in research facilities. Daily animal care is not a glamorous job. The caretaker’s pay, also far from glamourous, does not keep people in the business and maintaining a compassionate outlook while caring for animals whose lives will be taken has its emotional toll. So what are the rewards? They begin with the sense of purpose and knowing that you play a key part in their well-being, and knowing that the research can contribute to advances in medical care for people and animals.
Many believe that all animal lovers support the animal rights movement. This assumption is based on a misunderstanding of the difference of animal welfare and animal rights. The American Veterinary Medical Association defines animal welfare as, “A humane responsibility that encompasses all aspects of animal well-being, from proper housing and nutrition to preventative care, treatment of disease, and when necessary, humane euthanasia”(1). Not only do scientists recognize their moral obligations toward laboratory animals, they also know the importance of maintaining healthy animals. Animals that are not kept healthy result in bad research data. One research doctor states, “Scientists, veterinarians, physicians, surgeons and others who do research in animal laboratories are as much concerned about the care of animals as anyone can be. Their respect for the dignity of life and compassion for the sick and disabled, in fact, is what motivated them to search for ways of relieving the pain and suffering caused by diseases”(Barbour 3). In contrast to animal welfare supporters, animal rights activists believe that animals should have the same rights as humans. Michael W. Fox, former vice president of the Humane Society of the United States, put it this way, “The life of an ant and that of my child should be granted equal consideration”(1) Wow! I’m sure glad I’m not Mr. Fox’s child.
Another activist, definitely not in the running for mother of the year, is Ingrid Newkirk, President and co-founder of People for the Ethical Treatment of Animals,(PETA). Ms. Newkirk has been quoted as saying, “Animal liberationists do not separate out the human animal, so there is no rational basis for saying that a human being has special rights. A rat is a pig is a dog is a boy. They are all mammals” (1). Mammals yes, but hardly equal when talking about the importance of saving lives. It is difficult to support anyone that tries to make their point with such ridiculous claims. Many animal activists oppose animal research in any form, for any purpose, no matter how many human and animal lives might be saved. Although animal activists portray themselves as kind and compassionate, many in the movement sponsor and perpetrate illegal and violent activity-and these criminal acts are becoming more violent and more frequent. One chilling statistic was noted in recent years, “activists have stalked and assaulted members of the research community, harassed and threatened their families, broken into and destroyed labs, homes and vehicles, all in the name of animal rights” (Lewis 1).
History has shown us the medical wonders that have been achieved in laboratories with the help of animals, still, many believe there are reliable alternatives to using animals. Scientists, doctors, and medical researchers continue to search for alternatives to using animals in laboratories. Today, the concept of “The Three R’s”, refinement, reduction, and replacement as the first step leading to animal testing alternatives. Refinement refers to the modification of any procedure done to an animal in a laboratory from the time it is born until it is dead. These modifications should minimize any pain or distress. Reduction simply means doing anything that will reduce the number of animals being used in research. Using more of an animal and avoiding redundant experiments is all part of the reduction method. Replacement is achieved by taking experiments that do not need a living animal and using information based research, computer systems, human studies, cell tissue and organ culture. Even with the advancement in computer technology, there is no complete alternative to animal research. There is still an essential need to test drugs, medical devices and other promising treatments on animals before they are tested on humans because computer applications cannot give the same results as a living specimen.
Those who seek to end animal research, because they either reject it’s validity or because they believe the life of a rat is equal in importance to the life of a human, cannot dismiss the important medical findings achieved over the past century. The countless lives that have been saved because dedicated scientists continue to look for cures for cancer, AIDS and many other devastating diseases still plaguing this earth, cannot, and must not, be forgotten. Until these diseases are talked about as a “thing of the past”, and until more reliable alternatives are established, animal research must continue-for the good of all Mankind.
You can order a high-quality custom essay, term paper, research paper, thesis, dissertation, speech, book report or book review from our professional custom writing service. We have employed more than 500 highly qualified Ph.D. and Master's academic writers to provide students with professional academic writing help. Feel free to contact our company right now!
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