Motivation And Employee Performance Commerce Essay

Motivation And Employee Performance Commerce Essay Motivation vs employee performance is a typical topic of human resource management. Performance can be increased by motivating employees. Motivated employees can perform better than unmotivated employees within an organisation. Every individual need some kind of motives to perform their jobs in significant manner. In this era there are many tips are available to motivate their employees but we have some different theories in which we can utilize in the corporate level to improve the productivity of the organization. These theories are divided into two parts: Content Theories Process Theories From the above the most common theories now a days are: Maslows hierarchy of needs model Herzbergs two-factor theory Herzbergs two factor theory is modified form of the Maslows hierarchy of needs. The purpose of these theories is same how to get better performance from an individual. ASDA walmart, Dell Computers, IBM, Starbucks and McDonald are using these theories in different ways to achieve their specific goals in their industries. These companies are well known in their own field. They are keep motivating their employees to achieve the best result. With a positive motivation philosophy and practice in place, productivity, quality and service should improve because motivation helps people towards: achieving goals; gaining a positive perspective; creating the power to change; building self-esteem and capability; and managing their development and helping others. Introduction: Definition of Employee performance: Employee performance is how well an employee performed his assigned job or task. Definition of Motivation: Its a psychological feature that arouses an organism to action towards a desired goal, the reason for that act so the thing which is approach the human being he do that. The performance of employees contributes toward the success of any organization. Employee performance can be increased by motivating them. Motivation is basically an energetic dose which is necessary for the employees in any organisation to increase the productivity of the organisation. The study of motivation is concerned. Why people behave in a different Way and how they attempt to achieve some goal in order to fulfil the requirement and needs or expectations. They have individual variety of changing, and competing, needs and expectations. One useful three-fold they much worked at your work place economic, intrinsic and social. Following are the some real life examples of the companies how they motivate their employees. The most important factor of motivation is to align the goal, purpose and values between staff, team and management. The problem occurs when there is a gap between staff and management. Corporate Examples of Motivation Performance: ASDA Wal-Mart Super Stores: ASDA has 321 stores with 148,000 employees in the UK. ASDA employees are motivated to being able to help the customers. They offer a competitive package for motivation of their staff. According to Hierarchy of Need theory (Maslow, 1943) an individual can better perform if he is provided basic needs first. He provides hierarchical needs of a worker which need to be fulfilled to get better results from an individual. figure: Maslows Hierarchy of Needs The basis of this theory is that workers are being motivated by unsatisfied needs, and that lower needs are provided before the higher needs to an individual. He gave an order of need in which he believes that this order should be followed to motivate an individual. ASDA provide basic needs to their colleagues so they can perform their job without any stress and feel happiness by helping the community. Their slogan is: Always Happy to Help They fulfil the physiological needs of workers by providing on time salaries i.e. after every four week and there is a system of break i.e. after every 4 hour it is necessary to have a 15 minutes break to work for another 3 to 4 hours. According to above theory the second higher need for a worker is secured work place and in ASDA stores company provide a confidence of safety by placing technical devices like cameras, fire alarms and security officers to handle any kind of threats and demoralise the staff. To obtain the desired results of help, they emphasise on the basic needs of their staff they provide some benefits. ASDA believe in unique and valued contribution of their employees. Following are some benefits from ASDA to their staff to motivate them. ASDA offer 10% discount to their employees on shopping in any ASDA store. Annually bonus provided to the staff. Free of charge uniform any time colleague need. Wall-mart has been empowering its workforce through training to ensure that those who show progress in their performance are well awarded through promotion. Therefore following the McGregor theory of motivation, they are effectively using recognition in achievement as an important ways to motivate their workers. McDonalds: McDonalds business is simple People-Profit-Chain model. McDonald adheres to the principle that The result is done by a man. The company has based its success on the motivation theories having altered only some aspects of them. They follow simple theoretical rules to increase the performance of their employees. Sensible increment on employees salaries. One aim per person is better than to have multi purposes. The aim must change. Every department should have different elaborated systems of motivation. The company applies three components of the motivation system: Financial encouragement Non financial encouragement Social policy These three factors described by Maslows hierarchy of need theory. Maslow says that all these needs must be fulfilled one after another but McDonalds strategy shows that simultaneously fulfilment of these needs can increase the employees performance. The reality is that an employee has a set of needs in every hardened moment. According to above McDonalds has effective motivation system that makes it possible to increase employees performance, and enhance the companys productivity. The administrators have used the specific techniques on the basis of motivation theories. Having applied the procedure of assembly line in food preparation, McDonalds has ensured the standard quality of the production and the high performance. Besides, the company has implemented effective motivation strategy that is based on the existing motivation theories. Consequently, on the basis of the research we can say that every company has its own system of behaviour explanation and every concrete case should be examined as the McDonalds company case. Motivation theories, such as Maslows theory and Self Determination Theory should serve as the basis for elaborating a strategy which will direct managers forces towards the aim employee satisfaction via intrinsic motivation and Maslows Hierarchy of Needs model. Starbucks: Starbucks corporation is the most famous chain of retail coffee shops in the World. (Michelli, 2006) As a result, Starbucks would be one of the optimal business models for the strategies of employee motivation, customer satisfaction and cooperation of teamwork. The Chief Executive of Starbucks corporation, Howard Schultz believes that the spirit of Starbucks is employees and feels honored about the value of Starbucks employees. The company offers an interactive structure that makes personnel instil themselves into their job; hence they can motivate partners to satisfy themselves then achieving a new level of performance. Following are some preset rules for the employees of company. Treat employees as partners Each employee will get vacation and personal time. Employees get discounts on Starbucks product. Training for all employees including managers The managers in Starbucks treat every single worker equally and all of the staffs are called partners, even the supervisors of each branch are called it as well. In order to narrow the gap between managers and employees, they also co-work with the basic level staffs in the front line. The partners of the company have the right to figure out what is the best policy for them, and the directors show a respect for each suggestion. Starbucks has a well-organized communication channel for employees. It places a great importance on labours. For example, managers plan the working hours per workers and arrange the schedule of time off, according to their wants to meet their requirements. There are interviews weekly to see what employees need is. All employees, including informal personnel, are offered a great deal of welfare policies, for instance, commodities discounts for employees, medical insurance (including health, vision and dentil) and vacations. According the Maslow hierarchy of need, money is one of the most important factors in the motivation of the most important motivator. However according to the Hertzbergs two factor model of motivation, it tend to have short term effect on the motivation of the workforce, it has been identified as one of the most important factor in the overall motivation of the workforce. At the higher levels of his hierarchy where praise, respect, recognition and empowerment, these companies has been using this model by ensuring that they recognize the performance of their workers. figure: Herzbergs Two Factor Theory IBM: IBM has in particular upheld the spirit of team work which is important in motivation according to McGregor XY Theory. figure: McGregor Theory X and Y IBM has been emphasizing the development of effective communication between its workforces by ensuring healthy team competition. IBM sets goals for each employee working in the company which ensures that the employee is achieving the certain target. Company believe in high level of team spirit. Employees work in a team to complete the specific tasks or projects. Dell: Dell Computers is a world most famous company. Dell has sets some rules to motivate their employees so they can perform well. The CEO of the company believes that an employee can perform well if he or she work like an owner or partner of the company. To motivate an employee to think like an owner, you have to give them metric she can embrace, says Michael Dell, CEO of Dell Computer Corporation. At Dell Computers, Every workers incentives compensation are tied to the health of the business. Managers usually explained specifically how the employees can contribute the business and doing things right the first time. There is a core incentive program for all employees in the company. Among other incentives, Dell Inc. gives every employee a week off at Christmas and 10 paid days a year for a personal use. This corporate philosophy is called The Soul of Dell, Dell pays incentives to their employees and also emphasise on the emotional side to keep them motivated. Dell also keeps appraised their employees. The management keep informed their employees about any change in company or any international aid made by the company. This is exactly the same theory which is provided by Herzberg. Dell managers are ensured to balance the satisfiers and dis-satisfiers. Procedures and policies of the company may cause dissatistaction. To reduce this dissatisfaction Dell believes the best method is to raise the awareness of the employees and encourage them to get involved in the creation of policies of the company. By doing this employees can recognise the change and feel confident and the result and result will be the better performance. Herzbergs second factor i.e. Motivators. This is the factor that stimulate the employees to perform well jobs. Dell has a significant promotion procedure and reward policy to create a challenging environment for the employees. And the result is healthy and productive environment in the company. Conclusion: Motivation is necessary to increase the performance of the organization and productivity. Different companies are following the different theories, in every organisation motivate to the employee is important role for the managers according to Frederick two factor motivation theory. Herzberg describe that there are two elements on the work place satisfied and dissatisfied in the employee. However, we have seen from the discussions above that there still appears to be general support for the theories of Maslow and Herzberg and McGregor. A Chartered Management Institute checklist maintains that these theories are still valid today. A basic understanding of their main Principles will be invaluable for building a climate of honesty, openness and trust. From a 12-year study of the use of management concepts in technical organisations, Flores and Utley found the work of Mallow and McGregor the most popular motivational theories and also refer to the relationship between Mallow and Herzberg and the successful implementation of quality systems. Whatever the popularity of different theories of motivation, doubts are raised about their universality on the ground that they have not adequately addressed the factor of culture. Recommendations: Motivating employees to get best performance from the employees is not a typical science and there is no single rule to implement for each and every employee. Different peoples working in a same organisation can have different problems and different attitudes to perform their certain jobs. First we need to know the employee how he can perform well and what his or her desires are. Maslows theory of Hierarchal need and Herzberg two factors theory can help to analyse and fulfil the requirements of an individual. Here are some general recommendations we can try to motivate staff. Encourage employees all the time before, during and after the work. Recognise and reward a job well done. Offer financial incentives. Promote fun and happiness at the workplace.

Promote Child And Young Person Development Essay

1. Explain the factors that need to be taken into account when assessing development When assessing children and young people it has to be done sensitively and accurately. There are a number of factors to be taking in to account, such as confidentiality. If you want to carry out an observation on a child you have to have permission from a parent or guardian that who is responsible for that child. Most parents guardians are happy for you to observe there child although parent will not want other parent or other people to have no involvement such as reading reports as they don’t want them to know how their child’s development is getting on. By following the parents request you must not leave note books or files lying around for other parents or people to see as they want it to stay confidential. When storing confidential information it should be stored carefully and make sure when you are discussing a child that you are only doing it with other practitioners within the se tting. Also when assessing children their wishes and feelings should be taking into consideration. Children have rights just as much as adults, there will be times when it is not appropriate to observe children. For example if a child a child has become unsettled when doing an activity such as art work and they don’t like the paint. It is also when doing an observation it has to be written in a respectful manor. Ethnic, linguistic and cultural background needs to be taken into account because it is important that we assess the children’s development reliably. Sometimes the child’s behaviour, skill and interests are shown independently by the children because of their ethnic, linguistic or cultural background, for example a child may not take part in a story like the three little pigs because they see the pigs as dirty. As an observer may see this as the child not being interested in this book or drama. Bearing in mind that the linguistic background is particularly important because the child may not show these kind of skills because the words are not familiar. Also disability and specific requirement is where some children or young people with a disability needs to be taken into consideration when doing an observation. In schools this is accepted, for example you may have children  with dyslexia may need extra time when it comes to sitting test, while in a nursery children need one to one with an adult and may need to give one instruction at a time. If a practitioner does not understand the child’s disability this will lead to underestimating and child’s ability. All children and young people rely on you as a practitioner. There is no point in assessing a child’s development unless we do it so fairly accurately. Statements show that if you don’t do observations accurately it will harm the child’s development especially if it leads to the adults underestimating the child’s ability and progress. This means that we have to consider the reliability of the information we gather and also the limitation s of any observations methods that we may use. 1.2. Assess a child or young person’s development in the following areas: a. †¢ Physical b. †¢ Communication c. †¢ Intellectual/cognitive d. †¢ Social, emotional and behavioural e. †¢ Moral 3. Explain the selection of the assessment methods used 4. Develop a plan to meet the development needs of a child or young person in the work setting. Outcome 2 Be able to promote the development of children or young people 1. Implement the development plan for a child or young person according to own role and responsibilities, taking into account that development is holistic and interconnected 2. Evaluate and revise the development plan in the light of implementation 3. Explain the importance of a person centred and inclusive approach and give examples of how this is implemented in own work 4. Listen to children or young people and communicate in a way that encourages them to feel valued 5. Encourage children or young people to actively participate in decisions affecting their lives and the services they receive according to their age and abilities. Outcome 3 Be able to support the provision of environments and services that promote the development of children or young people 1. Explain the features of an environment or service that promotes the development of children and young people Outcome 4 Understand how working practices can impact on the development of children and young people 1.  Explain how own working practice can affect children and young people’s development 2. Explain how institutions, agencies and services can affect children and young people’s development Outcome 5 Be able to support children and young people’s positive behaviour 2. Evaluate different approaches to supporting positive behaviour Outcome 6 Be able to support children and young people experiencing transitions 1. Explain how to support children and young people experiencing different types of transitions

The Settings of Dracula

With castles, hidden streets, waterways, recurring rainy weather, interesting European architecture, and mystique, London is the perfect location for Bram Stoker's Dracula. London: The capital of Great Britain, and the center of attention in the nineteenth century, due to the many incidents that were going on at the time. The novel includes many daunting scenes, such as when Dracula heaves a sack withholding a deceased child before three female vampires. It is no surprise why he choose London to be the setting of his novel. London is â€Å"exotic† and unknown. Stoker is obviously inspired by London's castles, hidden streets, and church yards. Because of all of these points, London is the perfect gothic setting for Stoker's â€Å"Dracula. † London is recognized for its grand castles. Stoker may have been motivated to use these in his novel describing Dracula's estate in London, â€Å"Carfax† and also his castle in Transylvania. This is illustrated when Mr. Harker arrives at Dracula's home â€Å"up a great winding stair, and along another great passage great passage, on whose stone floor our steps rang heavily. At the end of this he threw open a heavy door, and I rejoiced to see within a well-lit room in which a table was spread for supper and whose mighty hearth a great fire of logs, freshly replenished, flamed and flared. † (Stoker,13). High small windows, arched ceilings, and solid stone walls are also typical for the gothic architecture. These characteristics make the building cold, dark, and forbidding. For example, the text says about the castle in Transylvania that â€Å"The Count halted, putting down my bags, closed the door, and crossing the room, opened another door, which led into a small octagonal room lit by a single lamp, and seemingly without a window of any sort† (13) and . â€Å".. a vast ruined castle, from those tall black windows came no ray of light and whose broken battlements showed a jagged line against the moonlight sky† (11). Everything is difficult to see. For example, dimming lights and dark thick walls are characteristics of this type of architecture. Overall the count's castle looks like the cathedrals in the thirteenth century. It is a copy of a medieval building. London is also a perfect location for this novel not only because of its buildings, but also because of its weather and its scenery. London (or Great Britain in general) is an island, therefore, it is surrounded by water. This makes it â€Å"isolated† from the main land. It makes it problematic to reach. This is why Dracula has to go by ship when he leaves Transylvania to go to London. People often connect harbors with something frightening and you can see harbors in many horror movies. Because of the surrounding water and the rough European climate, there is a lot fog and rain. These are the ideal conditions for Dracula to follow through with his killings. He can â€Å"call† for the fog and the rain. In the nineteenth century, London streets were very small and hidden with little lighting. This helps to create the fearsome setting for the novel. Smoke is created by enormous factories making a creepy backdrop for the terrible things to come. Numerous churches and cathedrals also create a fear-provoking â€Å"flair. These churches are built in gothic â€Å"dark† style. For example, the â€Å"Salisbury Cathedral from the Meadows†, is built in this medieval manner. London also includes a considerable amount of beautiful, but creepy, churchyards. Ffor example, in the part when Lucy is constantly sleepwalking and Mina finds her in the churchyard talking about â€Å"his red eyes†, . â€Å".. from where I was I ran on to the entrance of the ch urchyard†¦ † (79). Of course these churchyards are used as a scary setting, like in many horror books or movies. The House of Commons was non-democratically elected. The Bill, caused by the temperance movement, didn't create a democracy in England, but it did enfranchise the British’s middle class. The Temperance movement was typical for the Victorian era. It surround the idea that the middle-class should have self-control and self-denial. These values were shaped both by Evangelicalism and by Utilitarianism. There were also contemporary views on the Reform Act in 1832. So the Reform Bill and the issues on the Reform Act got everybody's attention, what makes London even more interesting. In 1854 there were also several law for women passed. This could be the reason for Mina Harker and her friend, Lucy, to play such an important role in Stoker's book. In this time era, women believed that they should always be protected by the strong men. Because of this, Bram Stoker maybe wanted to draw the attention on the women. The marriage of Mina Harker and Jonathan Harker could may have been a result of the Chancellor Cranworth's Marriage and Divorce Bill passed in 1955. Another point of attention was also the Peterloo Massacre in 1899. A public meeting took place at Westminster on March 28th and in June. Another important piece of information is that London became a massive place with book-keepers, authors, and clerks. This is why many newspaper presses came to London. Stoker could have been stimulated by this and wrote the part, where Mina did research about this article, where the mysterious ship came into the harbor (how already mentioned above). Or it could have been the growth of shipping, caused by the famous clippers, which made it possible to import tea from China to the Thames. The whole story of Dracula could have been also been caused by the widespread poverty and crime in this time. Because of all these facts about London, the castles, the hidden streets, the waterways, the recurring raining weather, the interesting European architecture, and the mystique surrounding this city, Bram Stoker chose this special and fascinating city as the setting for his novel. London is just like made for settings in scary novels or even movies. Especially in the nineteenth century, with all the gothic buildings and all its frightening churchyards. Of course, everybody in this time knew London for this. London was not only well known because of these aspects, but also because London was the capital of its whole empire. So Bram Stoker could not have selected a better gothic setting for his disturbing novel â€Å"Dracula. † Works cited: -Wolffg. , John. â€Å"Gothic† 2002. Online. 5-20-03 www. clc. edu/~wolffg/gateway/gothic. html -Roumpou, Eleni. Is Dracula a gothic novel? † 9-19-00. Online. 5-20-02. www. hausarbeiten. de/faecher/hausarbeit/anl/1106. html -Jackson, Lee. â€Å"Victorian London-Architecture-Victorian Architecture† 2000. Online. 5-20-03 www. victorianlondon. org -Halsall, Paul. â€Å"19th Century Britain† 1-30-99. Online. 5-21-03. www. fordham. edu/halsaall/mod/modsbook20. html -Johnson, Jane. â€Å"19th Cent ury London† 2001. Online. 5-21-03. www. Britannia. com -Smith, Rebecca. â€Å"The Temperance Movement and class struggle in Victorian England† 1993. Online. 5-21-03. www. loyno. edu/~history/journal/1992-3/smith. html

Rules And Regulations In The Money Market Finance Essay - Free Essay Example

Sample details Pages: 10 Words: 2854 Downloads: 9 Date added: 2017/06/26 Category Finance Essay Type Research paper Did you like this example? The need for a money market arises because receipts of economic units do not coincide with their expenditures. Money market instruments are generally characterized by a high degree of safety of principal. Maturities range from one day to one year; the most common are three months or less. Don’t waste time! Our writers will create an original "Rules And Regulations In The Money Market Finance Essay" essay for you Create order Active secondary markets for most of the instruments allow them to be sold prior to maturity. Unlike organized securities or commodities exchanges, the money market has no specific location. Trading in the money markets involves Treasury bills (MTB), commercial paper (CP), bankers acceptances (BA), and negotiable certificate of deposit (NCD). It provides liquidity funding for the financial system. The money market consists of financial institutions and dealers in money or credit who wish to either borrow or lend. Money market trades in short-term financial instruments commonly called paper. This contrasts with the capital market for longer-term funding, which is supplied by bonds and equity. Surplus units can hold money balance, transactions balances in the form of currency, demand deposits, or other form of money market instrument to insure that planned expenditures can be maintained independently of cash receipts. Surplus units holdings of money market instruments that can be co nverted to cash quickly and at a relatively low cost and that have low price risk due to their short maturities. Economic units can also meet their short-term cash demands by maintaining access to the money market and raising funds there when required. The money market encompasses a group of short-term credit market instruments, futures market instruments, and the Bank Negara Malaysia (BNM) discount window. The major participants in the money market are commercial banks, governments, corporations, government-sponsored enterprises, money market mutual funds, futures market exchanges, brokers and dealers, and BNM. Financial institutions play three important roles in the money market. First, they borrow in the money market to fund their loan portfolios and to acquire funds to satisfy noninterest bearing (commercial bank are allowed to provide current account which noninterest bearing). Banks are the major participants in the money market activities, which are very short-term, ove rnight loans from other financial institution, funds that can be transferred between banks within a single business day. The funds market efficiently distributes reserves throughout the banking system. The borrowing and lending of reserves takes place at a competitively determined interest rate known as the Overnight Policy Rate (OPR). Financial institutions can also borrow on a short-term basis at the BNM discount window and pay a rate of interest set by the BNM called the discount rate. A banks decision to borrow at the discount window depends on the relation of the discount rate to the OPR rate, as well as on the administrative arrangements surrounding the use of the window. Financial institutions also borrow funds in the money market for longer periods by issuing large NCD and by acquiring funds in the money market. A large denomination NCD is a certificate issued by a financial institution as evidence that a certain amount of money has been deposited for a period of time, usually ranging from one to six months and will be redeemed with interest at maturity. Background of the Study The recent events in the financial markets and their adverse effect on many dealers in money market have raised questions about the future of the money market industry, as well as calls for regulatory reform. The existing money market model has proven to be hugely popular with investors, and aspects of that model are likely to survive any review. It is clear, however, that the money market industry and BNM will consider several variations on the existing product that may address some of the shortcomings that have been exposed in globalization and liberalization environment. The adverse impact of the recent financial crisis on money market especially during Asian financial crisis has exposed risks inherent in their regulatory scheme. As a result, the money market industry and BNM are keeping updating changes to the existing regulatory money market product. The BNM review the extraordinary steps taken in recent years by regulators to address the crisis and discuss changes in the b usiness and regulation of money market in response to recent financial market developments. Literature Review According to Joseph R. Fleming, John V. OHanlon, and Hila Shamir (2009) The Future Of Money Market: Implications Of The Recent Turmoil, BNM took a series of extraordinary steps designed to stabilize the financial system. During this period money market faced special challenges. A steep decline in the market value of shares of companies across a broad spectrum of the economy placed downward pressure on the valuations of corporate debt held by money market at the same time that investor insecurity resulted in record redemption requests from all funds, including money market securities. The impact of the market turmoil on two large, high-profile money market funds was widely reported. Many other money market were on the brink of breaking the buck, and avoided that fate only by obtaining capital support from their management companies or affiliates. The crisis facing money market highlighted the crucial role the funds play in the modern economy. By serving as the primary purchasers of commercial paper (CP) issued by corporate, money market provide the short-term financing that a broad range of companies rely on to run their day-to-day operations. When this critical source of funding began to dry up, concerns over the prospect of a credit crunch hobbling the economy became acute. In response, BNM took a series of steps in an attempt to support price stability and restore liquidity of money market funds According to G. David MacEwen, American Century Investment (2009) Money Market: Reviewing Their Role in Your Investment Portfolio, Investor sentiment has been on the change and riskier assets, including high-yield CP, have rebounded sharply. Yet, investors in high-quality cash equivalent securities continue to face stubbornly low yields. This scenario owes its existence to BNM, government, and market responses to the changes on rule and regulation and global recession. Significant sections of the financial markets are still functioning largely because of gover nment support and accommodative monetary policy from BNM. In particular, the Asian financial crisis prompted the BNM to slash the OPR rate target to a range of 13% to 4%. The BNM unprecedented action was designed to stimulate the economy, bolster the profitability of financial services companies, and increase liquidity in the financial system. Meanwhile, yields for Malaysia Treasury Bill (MTB) are already at rock-bottom levels, and yields for other taxable and tax-exempt money market continue to decline, and could fall further. On top of that, the extraordinary market and economic events forced many investors to abandon the time-tested strategy of diversification. Maintaining a long-term view has been tough, and many investors sat on the sidelines or overloaded their portfolios with cash-equivalent investments (MTB, CP, NCD, and BA). The heightened demand for these conservative investments, combined with BNM monetary policies, sent their yields to record lows, creating challen ges for investors who value income above all else. Challenges of Money Market Global financial environment characterized by unstable money markets, increasingly frequent episodes of financial stress and structural financial imbalances and the profound changes arising from advances in technology and the globalization process, the issue of money market stability has been accorded the highest priority. Indeed, the global community is presented with the challenge of regulatory reform to address the increasingly complex and heightened risks following these developments. Achieving an efficient, effective and stable financial sector is a fundamental enabling requirement for sustainable money market growth. The regulation of financial institutions is most effective where there is already a sound regulatory framework in place that provides for adequate reporting, monitoring of capital adequacy, risk management controls and customer disclosure so that in order to ensure that institutions know their customers to prevent money laundering. Sound regulation can help en sure problems of asymmetric information are overcome, as if customers lack confidence in a financial institution then this may result in a financial panic, in the case of a bank a run on deposits threatening the collapse of the institution. During the G-20 Finance Ministers and Governors Meeting in November 2009, the IMF has crafted seven principles for exit policies which are Intended to Establish Common Ground for the Design and Implementation of Policies During the Exit from the Extraordinary Support Measures Taken During The Crisis. The recommends that the timing of exits be dependent on the state of the economy and the financial system, and should err on the side of further supporting demand and financial repair. Policy stimulus and other critical support measures should be withdrawn only when there is firm evidence of durable financial stability and a self-sustaining recovery in private demand. To anchor market expectation, it is important to stress the need for the exit pl ans to be well established early and communicated clearly by the policy makers to the public. Financial institutions have demonstrated that they are vulnerable to the collective draw to money market activities aggressively when times are good, only to excessively less trading when the economic cycle experiences a downturn. This behavior amplifies the impact of the economic cycle on bank lending and is termed as pro-cyclicality. The recent sub-prime crisis underscores the severity of the boom and bust consequences of the pro-cyclicality feature of money market in particular and activities of the financial institutions in general. Unfortunately, present available measures and regulations are gravely inadequate to manage this pro-cyclicality. Many have argued, for instance, that the Basel II capital adequacy requirement (CAR) is inadequate, especially during a financial crisis or economic slowdown. The risk-weighted averages is incomplete as it does not attach sufficient weight t o macro prudential risk and liquidity risk. The Basel II capital requirement focuses solely on the relative weight charged against different classes of assets. Moreover, many reports have also drawn attention to different interpretations of the weights associated with different assets of different BNM. Furthermore, there has been too much focus on the risk associated with commercial paper, rather than on the level of leverage building up in the whole financial system. In particular, the regulation evaluates each bank independently and in isolation, largely without much regard to spillover and feedback effects. In any case, until recently, many believed that when financial institutions are strong, it is a sufficient condition for financial stability. By contrast, on a wider perspective, the objective of regulation is to reduce the probability of distress for the entire financial system. The source of distress incorporates a host of potential channels, including interdependence and linkages among financial institutions through clearing and settlement systems, and common exposures. Prospect of Money Market The Malaysian Financial Sector Masterplan represents the blueprint for the development of the financial sector over a 10- year period. The plan, which was launched in 2001, places importance on the development of Malaysia Banking and Money market sector as an important component in the financial system. To achieve this objective, emphasis is being given to financial infrastructure and institutional development, aimed at enhancing efficiency of the system and building the internal resilience and competitive position of the money market operators, while meeting the needs of the nation. This includes providing the foundations for the development of the financial markets and strengthening the institutional development. As part of this process, the benchmarking exercise is an important tool to enhance performance and to guide the money market operators on improvement of their business strategies. To reinforce this, a service quality index has also been initiated to promote the developme nt of world-class products and services. This is also complemented with a comprehensive consumer education programme so as to promote product transparency and increase accountability. The introduction of financial advisers is also a further element to facilitate consumer access to a wider range of financial products. Money Market is ascending to greater prominence in the global financial system and has fast extended beyond major industrial economies. This growing significance is a manifestation of the viability of money market as a financial intermediation channel that supports economic growth and development of nations. While it was initially developed to fulfill the needs of the investor, money market has now gained universal acceptance. The appreciation of its promising potential has prompted interest amongst financial institutions to venture into this fast expanding market. At the heart of this expansion emerged the need for the development of the regulatory dimension to e xplicitly address the unique features product offers by money market. At present, money market has to a large extent, been governed by the regulatory framework, and reinforced by accounting standards. However, Islamic money market come in force, is distinct from money makret activities in terms of its underlying philosophy on the prohibition of interest, which in turn shapes the nature of its financial transactions, and its risk attributes. It believes money market compasses 80% of overall conventional and Islamic money market activities. The forces of globalization, financial liberalization, technological advancements, greater competition and financial innovation have created new risks which are more complex and which have more profound systemic implications. Accordingly, to manage these risks, prudential regulation and supervisory oversight have become more demanding and challenging. To ensure the money market regulators and supervisors are able to respond effectively to the ch anging environment, the Basel Committee has revised its Capital Accord to be more riskfocused and risk-sensitive. The evolution of an appropriate financial structure would need to take into account the role of the money market in the economy and the objectives that need to be achieved. The appropriate financial structure, particularly in emerging market economies, needs to be designed to meet the requirements of the need of investor in investing in money market. The financial system needs to be in a position to support the real sector, changing and evolving with the changing needs of the economy. The strategy adopted by BNM is to develop a comprehensive financial system that is able to operate in parallel with the Islamic financial system The Malaysian Financial Sector Masterplan further provides the environment that will encourage active participation in financial institutions in the secondary money instruments. The next phase in this development is the raising of funds from this market by multinational corporations and multilateral institutions. As the volume increases, it would strengthen the inter-linkages and integration amongst the financial centres. In addition to structuring a variety of attractive off-the-shelf instruments, efforts need to be intensified to create a benchmark yield curve for future issues. With a well developed system, the trading of instruments would encourage the free flow of capital movements and would in turn facilitate greater Islamic fund management activities. Conclusion Dynamic financial system is to achieve the ultimate objectives of developing an money market that will be able to contribute significantly to the overall development of our economy through the intermediation process. Thus money market needs to extend its agenda towards the development of a comprehensive financial system. The money market should strive to add value towards enhancing greater integration to the economy and the financial system. To harness the potential fully, genuine endeavours to develop and innovate money market instruments and activities that are able to fulfill the changing requirements of the economy and the emerging needs of the contemporary global market place need to be continuously pursued. Conferences such as this can contribute invaluable ideas to foster new initiatives towards the development of the financial system. With the acceleration of its global integration, it will provide the synergies and opportunities for the money market industry to evolve into an important component of the international financial system that can contribute to enhance prospects for balanced global growth and shared prosperity. Amongst the most imminent challenges is the creation of the critical mass in the market to allow for meaningful cross-border alliances at the regional and global level. The establishment of an adequate number of money market operators in the market is also crucial to provide the groundwork for the setting up of more operators, in terms of sustaining business support and providing the economies of scale in order for the money market industry to develop. On top of that, government play important role in the development of the money market industy. The role of the government is, amongst others to provide the enabling environment and put in place from the outset, the necessary infrastructure through the formulation of a comprehensive set of legal and regulatory framework for money market. In addition, this framework needs to be re inforced by a BASEL framework to ensure that all financial transactions are acceptable by investor. The challenge to develop regulatory standards that remain to efficiency of money market is an important element in the development and growth of the financial institution. The development of financial system that is able to contribute towards stability and balanced global growth needs to be achieved in the context of a rigorous and robust legal, regulatory and supervisory regime. This is reinforced by effective supervision, strong framework and an efficient judiciary system that promote confidence and soundness in the Islamic financial system. It is with the combined commitment and concerted efforts by the regulators, the industry and market participants that these goals can be achieved.