109SAM Essay Example | Topics and Well Written Essays - 1500 words

109SAM - Essay Example Research indicates that bureaucracy is one of the key indicators for a civilized society/ organisation (Flohr, 2010). Some of the merits of democracy include: it act as a tool for ensuring success and efficiency within an organisation. It furthers helps to coordinate different people to work together to achieve a common goals. In addition, bureaucracy helps to define roles that of each person in an organisation should execute. For example, some of the key roles hire include: finance role, managerial roles, human resource roles, accounting roles, legal roles, marketing roles to mention just but a few. In addition, less time is consumed in a bureaucratic structure because there are fewer consultations involved. Bureaucracy provides the top level managers with an opportunity to exercise greater control of organisation decision and strategies this further helps towards proper implementation of organisation decisions. Bureaucratic organisation structure tends to have a clear chain of comm and as well as define lines of reporting. Other merits of democracy may be observed from the government perspective. For example in case of a country, bureaucracy helps to protect it against external and internal aggression via establishment of central intelligence units and armed forces. In above connection, it helps to sustain a strong economy through the establishment of Export-Import bank, securities as well as protection of public goods (Media and Ingram, 2013). On the contrary, bureaucracy tends to have some disadvantage. Among disadvantages of bureaucracy include; it denies the participants an opportunity to think independently and hence, discouraging creativity and innovativeness. Bureaucracy tends to be so mechanistic and rigid; this discourages adaptability to contemporary market, legal and industrial changes. In addition, in a bureaucratic organisation, employee in lower levels of management tends to be less satisfied with the decisions made by top, management because the y are not involved in making those decisions and hence they tend to lack accountability in implementing those decisions. In addition, bureaucratic structures tend to be so much centralized rather than decentralized and hence making it difficult for people with a brilliant ideas to contribute. Bureaucratic organization denies employees morale due to repetitiveness in the nature of task undertaken. This it is rare for employees to shift from one job to the other. Additionally, bureaucracy may not be suitable for a small organisation because it. In a bureaucratic organisation there is usually an aspect of goal displacement as because instead of pursuing overall organisation objectives individuals tend to pursue their own goals and interest (Media and Ingram, 2013). There are various theories of bureaucracy for example, max Weber theory, monopolistic model and the theory of acquisitive. Marx Weber theory of democracy comprises of five characteristics that include: specialization, whereb y, employees should be allotted that task that they can do perfectly. The second characteristic involves division of labor; this implies that work should be divided into smaller and manageable task. The third characteristic entails hierarchical whereby, an organisation should have a clear chain of authority where employees can report to one senior. The fourth characteristic entails standardization of operating procedures. This involves explaining employees on how they are suppose to execute the task (Spark notes, 2013). PORTFOLIO ITEM 2: Culture Cultural awareness entails the ability to think not only about ourselves but

Corporate law Case Study Example | Topics and Well Written Essays - 2500 words

Corporate law - Case Study Example The exception to this is that the reserve may be applied by the company in paying up its unissued shares which are to be allotted to company members as fully paid bonus shares. Further, if the permissible capital payment exceeds the nominal amount of the shares redeemed or purchased, the amount of any capital redemption reserve, share premium account or fully paid share capital of the company, and any amount representing unrealised profits of the company for the time being standing to the credit of any revaluation reserve, may be reduced by a sum not exceeding, or by sums not in the aggregate exceeding, the amount by which the permissible capital payment exceeds the nominal value of the shares.4 Where, however, the proceeds of a fresh issue are applied by a company in making any redemption or purchase of its own shares in addition to a payment from its capital under these provisions, the references to the permissible capital payment are to be read as referring to the total amount of that payment and those proceeds. The CRR is mainly used to ens... The CRR is mainly used to ensure that the company's capital is not reduced by the redemption of its shares. If the company was to redeem its shares, and the CRR was not used, then there would be a reduction in the company's capital in line with the reduction of the amount of shares redeemed. Although the CRR cannot be distributed out to shareholders by way of dividend in the same way that profits would be utilised, they would be available for issuing bonus issues of share capital should such a scenario arise. Accordingly, the CRR plays an important role in maintaining the value of the company, by both keeping shareholders of redeemable preference shares happy in allowing them to redeem their shares, while also keeping the other shareholders content as the value of the share capital in the company is maintained. This means that there shareholding will be in no way diminished as a result of the redemption. Revaluation Reserves Revaluation reserves arise when the value of an asset becomes greater than the value at which it was previously carried on the balance sheet, increasing shareholders funds.5 Not every increase in value is added to the revaluation reserve, and the exact treatment depends on the history of the asset. Revaluations are carried out when there is a material difference between the current market value of an asset and the value at which it is carried on the balance sheet. Revaluation reserves are not distributable, but may be used for scrip issues, where there is an issue of new shares to existing shareholders at no charge, pro rata to their existing shareholdings. A scrip issue is essentially when one shareholder moves their money from one account to another account belonging to the