Risk management is of vital importance in islam and takaful

Risk management is of vital importance in islam and takaful ABSTRACT Risk management is of vital importance in Islam and Takaful provides a way to manage risks in business according to SharÄ «ah principles. This research paper attempts to identify various types of risks involved in Takaful business that affect operational and investment functions of Takaful operators across the globe and finds the ways to manage those risks effectively. However, takaful operators often face difficulty in managing market and credit risks as SharÄ «ah compliant nature of Takaful contract does not allow Takaful companies to deal with interest rate and financial derivatives that have been unanimously considered repugnant to SharÄ «ah by Islamic jurists. This research identifies Islamic financial instruments like cooperative hedging and bi-lateral mutual adjustment that aim at providing mutual gains to both parties by the way of risk sharing and can be used as an alternative to conventional derivatives. The research paper attempts to provide a framework to enhance risk management culture among Takaful operators. It also discusses the challenges that need to be encountered to enhance risk management practices among Takaful operators. INTRODUCTION â€Å"Many Muslims misunderstand the concept of fate. For some Muslims believe that the future is in the hand of Allah, where they are facing with fatalistic mentality by putting themselves in the doctrine, whether one is rich or poor, happy or sad, it is fated by Allah. It is a good dealing with luck. In fact, efforts and prayers should precede this kind of belief† (Iqtisad Al-islamy, 2003). For a long time, same misconceptions have been associated with insurance. Muslim scholars and Islamic jurists have treated insurance illegal, haram and repugnant to SharÄ «ahwithout providing an alternative solution to Muslim Ummah. As a result of these prevalent misconceptions, any effort or risk management strategy to insure the assets or life has been considered against the fate and will of Allah. In Islamic financial planning, Takaful is a way to reduce the financial risk of loss due to accident and misfortunes (Iqtisad Al-islamy, 2003). As a matter of fact, Takaful plan is an alternative to the insurance in the conventional financial planning. In Takaful plan, the participant would pay particular amount of money as contribution (known as the premium) partly to risk fund (the participants special account) using the concept of tabbaru (donation) and partly to another party (known as Takaful company) with a mutual agreement that, the kafiil (Takaful company) is under a legal responsibility to provide for the participant a financial protection against unexpected loss, should it happen within the agreed period. The focus of this research paper is to identify various types of risks associated with Takaful business and devise criteria for managing risks and enhancing risk management culture among Takaful companies. It also discusses challenges to risk management in Takaful. RISK MANAGEMENT â€Å"Risk is the chance of happening of something that will have an impact upon our objectives. It is measured in terms of likelihood and consequences† (GOWA, 2002). Traditionally, concept of risk has been associated with uncertainty of events in future. Higher the uncertainty of events, higher is the risk. In insurance, risk is the amount of loss associated with property or life. Risk to property can be a loss or damage to car, building, house, etc. Risk to life can be described as poor health, premature death, bodily injuries as a result of accident etc. (Rejda, 2006; p.23). Risk management is a process that identifies loss exposures faced by an organization and selects the most appropriate techniques for treating such exposures(Rejda, 2006; p. 63). According to New Zealand standard of Risk Management, â€Å"It is the culture, processes and structures that are directed towards the effective management of potential opportunities and adverse effects†. In fact, risk management is an ongoing process that encompasses all aspects of our life. RISK MANAGEMENT UNDER SHARIAH Risk traditionally means possibility of meeting danger or suffering, harm or loss (Iqtisad Al-islamy, 2003). Risk is an element of life in this world for being ignorant of the future. It is also factor of investing that one should take time to understand prior to selecting any specific investment instruments or any new adventures. Muslims are asked to work hard in order to be able to change their conditions as obvious in the verse of Holy Quran, †¦ Verily never will Allah change the condition of a people until they change it themselves (with their own souls)†¦ (Quran 3:11). However, it is true that only Allah knows ones future and fate, Muslims should strive to achieve the goodness in this world and the hereafter. Submission to Allah, of course, has a positive effect on human behavior. For it will lead to peace and contentment. Undoubtedly, one has to submit every single thing to Allah, but it supposes to be after his hands stretch out to do the best effort as he can, to ch ange himself, so that he would be able to manage and to cope with unforeseen calamities or misfortune. Prophet Muhammad peace be upon him once asked a Bedouin who had left his camel untied, Why do not tie your camel? the Bedouin answered, I put my trust in Allah the prophet then said, tie up your camel first then put your trust in Allah( Sunan al -Tirmizi, vol.4, No. 2517, p. 668). This conversation depicts not only how should Muslims accept their fate but it also indicates how do Muslims reduce the risk of loss and calamities. Quran has presented stories of the previous prophets so that Muslims can take the lessons from their experiences. The story of the prophet Joseph, for instance, tells us about financial planning. The story of Prophet Yaqub, Josephs father, tells us about the management of risks as Yaqub commanded his sons to enter Egypt from different gates. Quran states, Further he said: O my sons! Enter not all by one gate: enter ye by different gates. Not that I can profit you aught against Allah (with my advice): None can command except Allah: On Him do I put my trust: and let all that trust put their trust on Him (Quran 12:67). The history of the prophets migration to Madinah gives us other lessons on how the Prophet (SAW) managed the risk. The Prophet reduced the risk of getting killed by asking Hazrat Ali (R.A.) to sleep in his bed during the night of emigration. It was reported that as night advanced, the Quraish posted assassins around the Prophets house. Thus they kept vigil all night long, waiting to kill him the moment he left his house early in the morning, peeping now and then through a hole in the door to make sure that he was still lying in his bed. All these above examples depict that risk management is in the roots of Islam. We, as a Muslims, should put our trust onto Allah only after meticulous planning and best utilization of all the available resources. NORMS OF ETHICS Obaidullah (2002, pp.2-4) has identified norms of efficiency and ethics for SharÄ «ahbased risk management in a business contract. These norms are also applicable to Takaful contract and are briefly described as follow: Each party in Takaful contract should be free to accept the terms and conditions of the contract and no coercion is imposed on any party. Takaful contract should be free from element of ‘riba (interest) that is prohibited by Shariah. One of the major objections on the contract of conventional insurance by SharÄ «ahscholars is element of ‘riba in its investments for which it is considered illegal and unIslamic. There should be no uncertainty or ambiguity about the nature of contract. Excessive uncertainty is not permissible in Shariah. For example, SharÄ «ahscholars disallow conventional insurance contract where no party clearly knows how and from where the insured amount is to going to be paid in case a loss or catastrophe occurs to the insured. There should not be any element of gambling in Takaful contract. It means that Takaful contract should not be aimed at getting a huge advantage at the cost of others. Rather, participants should have sincere intention of helping each other in case of loss or catastrophe from a joint fund. Contribution amount for participants should be adequate and fair and should be determined by actuaries and approved by SharÄ «ahscholars. Takaful customers (participants) should have equal access to adequate, accurate and timely market information related to Takaful products and companys performance where they want to contribute their money. Rights of any third party should not be adversely affected by Takaful contract between two parties. It means Takafulcontract should not be detrimental to any third party. There should be unrestricted public interest in Takaful products and its business contract which should work for the benefit of people at large. TYPES OF RISKS IN TAKÄ€FUL BUSINESS Business industry is prone to a number of risks. Five types of risks in business (Basel, 2006; IAIS, 2004) have been identified that are relevant to Takaful business. First two types of risks (underwriting and operational risks) are directly related to operations of Takaful company while remaining three (credit, liquidity and market risks) are associated with the investment activities of the company. i. Underwriting Risk: Underwriting risk is pertinent to insurance and Takaful. It occurs due to adverse selection of applicants or due to re-Takaful risk as a result of inability of re-Takaful operator to meet the obligation towards ceded company under re-Takaful agreement (IAIS, 2003; pp.32-33). Adverse selection refers to the tendency of selecting applicants that result in higher than average chance of loss (Rejda, 2006; p. 45). The risk of adverse selection arises when applicants with higher than average chance of loss succeed in obtaining Takaful coverage at standard rates e.g. high risk drivers or persons with serious health problems. It results in higher claim ratio and put the firm on high liquidity constraints. Re-Takaful risk occurs as the ceded company remains liable for a portion of outstanding claim to the extent re-Takaful operator fails to provide financial protection to Takaful operator in accordance with agreed terms. Both adverse selection and re-Takaful risk hamper the firms underwriting capacity; disturb the cash flow pattern and hence affect the stability of the profits of the company. ii. Operational Risk: Operational risk is not a well defined concept , yet Basel Report (2006, p.144) defines it as a loss that occurs as a result of inadequate or failed internal processes, people, technology or from external events. Internal processes failure occurs (Ahmed Khan, 2001; pp.29-30) as a result of inaccurate processing of transactions, inefficient record keeping, violating operational control limits, non-compliance of regulations etc. people risk may occur due to incompetence of employees, fraud and failure to perform the duties. Technology risk may arise as a result of telecommunication system or computer network breakdown. Risks from external events include unenforceability of regulatory policies, legislation and regulations that affect the fulfillment of contracts and transactions in the organizations. These risks are also called legal risks and are considered a part of operational risks. iii. Credit Risk: Credit risk occurs a result of default of counterparty when it fails to meet its obligations in time and in accordance with agreed terms (IAIS, 2004; p.14). In case of insurance, credit risk may be treated as default risk, migration risk, spread risk or concentration risk. Default risk occurs when Takaful operator does not receive or partially receive cash flows or assets to which it is entitled because the other party fails to meet the obligations of the contract. Migration risk occurs when probability of a future default of an obligator adversely affect the contract today. Spread risk occurs due to market perception of increased risk on either macro or micro basis. Concentration risk is the result of increased exposure to losses due to concentration of investments in a particular geographical area or economic or industrial sector. Takaful industry is also exposed to these risks. iv. Liquidity Risk: Liquidity risk is the risk resulting from Takaful companys inability to meet its obligations (i.e. claims payments and maturity price of policy) when they fall due. This risk occurs because the company has insufficient liquid assets or high level of liabilities (IAIS, 2004; p.18). Liquidity risk includes liquidation risk, affiliation investment risk and capital funding risk. Liquidation value risk is the risk under circumstance when assets are liquidated below their real (market) value. Affiliated investment risk is the risk that investment in an affiliated or member company might result in drain of financial or operating resources. Capital fund risk is the risk that insurance company will not be able to outsource funds in case of large claims. Takaful industry, just like conventional insurance company, faces similar types of liquidity risks. v. Market Risk: Market risk is the volatility of prices in instruments and assets of Takaful company in the market. It can be classified as equity price risk, interest rate risk, currency risk and commodity price risk (IAIS, 2004, p.12). Equity price risk is the risk of loss resulting from changes in market price of equities or other assets. Interest rate risk is the risk of loss resulting from changes in interest rates that adversely affect the cash flows of the insurance company. Currency risk is the risk of loss resulting from volatility of exchange rates that adversely affect the operations of insurance company. For a Takaful company, it does not include interest rate risk, however Takaful operators are exposed to mark up price risk as avoidance of interest based transactions is distinctive feature of SharÄ «ahcompliance. MANAGING RISKS All types of risks in Takaful require specific risk management strategy and need to be managed on individual basis. i. Underwriting Risk Management: Underwriting risk can be managed by establishing standard selection procedure consistent with the companys objectives. Most of the Takaful operators require physical inspection or medical reports of the applicants that have serious health problems or prone to higher than average risk. Some have introduced computerized underwriting system to standardized underwriting procedure and minimizing the chance of adverse selection. For example, Takaful Ikhlas Sdn. Bhd. of Malaysia uses computerized underwriting procedure for motor Takaful where applicants who meet standard requirements are automatically selected for Takaful. Others are rejected or alternatively are offered higher contribution rates for the extra risk. To minimize re-Takaful risk, Takaful operator can evaluate the financial strength of re-Takaful operators in the region and diversify the risk geographically by making arrangements with more than one re-Takaful operator. ii. Operational Risk Management: Management of this risk is more complex as it arises from failure of internal processes, people, information system breakdown and non-compliance with regulatory standards (Ahmed Khan, 2001; pp. 38-39). Senior management and board of directors of Takaful company should devise policies and develop strategies to manage and reduce operational risks. Sources of operational risk (i.e. people, processes and technology) should be handled carefully. This raises the importance of corporate governance culture in the organization. Given the newness of Takaful industry, computer software available for conventional insurance might not be appropriate for Takaful industry. This calls for recruiting talented professionals in the field of informational technology so that they could develop software to meet peculiar needs of Takaful industry. Independent external auditors can also play an important role in mitigating operational risk as they point out flaws in internal processes of the organization. T his calls for proper disclosure of activities and independent and secure reporting system. iii. Credit Risk Management: Under conventional insurance system, credit exposure limits are established within companys investment policies to mitigate and manage default risk, migration risk, spread risk and concentration risk as discussed under credit risk. Usually, following credit exposure limits can be established for insurance company investment and credit activities (IAIS, 2004; pp.16-18). Internal and external rating of counterparties Limit on maturity of credit facility (prefer short term credit over long term credit) Limit on maximum investment amount or a certain percentage of investment exposure to a single issuer, industry, geographical region or some other risk classification. Prohibition of interest does not allow Takaful companies to investment in interest-based instruments (Chapra and Khan, 2000). Moreover, Takaful companies do not have access to credit derivatives that are considered effective instruments for credit risk mitigation. Yet Al-Suwailem (2006; pp.67-68) argues that futures and Option contracts result in losses for more than 70% of the time and hence such instruments are considered as factors of loss, not of gain. The non-availability of Islamic derivatives raises the importance of internal control mechanism for Takaful operators which ensures that credit risk exposures are maintained within limits of prudential standards defined by internal controls. iv. Liquidity Risk Management: IAIS Report (2004, p.20) identifies two approaches in order to hedge liquidity risk that are also applicable to Takaful industry. These are: Cash flow modeling Liquidity ratios Cash flow modeling is done in order to assess the amount of deficit, surpluses or liquidation value risk in order to meet the needs of Takaful industry. Takaful operator should make sure that it has sufficient liquid assets in order to meet liquidity risk and unexpected liquidity requirements. Use of liquidity ratios will help Takaful operator to set the amount of liquid assets required to meet demands of liability portfolio, desired level of liquidity ratio will also help in determining Takaful operators investment policies. Capital funding risk could be mitigated by setting contingency plans and drawing cash from re-Takaful policies. This form of liquidity hedging could be recognized by knowing current level of liquid assets in hand to meet Takaful operators investment policies. In order to identify and evaluate liquidity risks, Ahmed and Khan (2001, p.38) emphasize the need of adequate internal control and proper disclosure of information in the organization. Towards this end, it is essential to have regular independent reports and internal audit function should periodically review the liquidity risk management process. v. Market Risk Management: In conventional insurance, management of market risk includes devising strategies to manage interest rate risk, exchange rate, and commodity price risk as well as equity price fluctuations. Takaful operators are not involved in interest based transactions so they do not face this risk. However, KIBOR (Karachi Inter Bank Offered Rate) can be used as bench mark for markup in Islamic financial institutions in their financing activities. Conventional institutions manage the market risk using financial derivatives such as futures, forward, option or swap contracts (Chapra Khan, 2000; p.55). Takaful operators face difficulty in managing market risk as these financial derivatives are not compatible with SharÄ «ahin the eyes of Islamic scholars. However, according to Al-Suwailem (2006; pp.118-126), cooperative hedging and bi-lateral mutual adjustment are acceptable instruments under SharÄ «ahto mitigate currency risk and interest rate risk respectively. Additionally, Takaful operators could apply stress tests and Value at Risk (VaR) techniques to mitigate commodity price risk and equity risk. Stress testing is one of the risk management tools that can be employed to assess the vulnerability of portfolios to abnormal shocks and market conditions. Value at Risk is the probability of portfolio losses exceeding some specified proportion. ENHANCING RISK MANAGEMENT CULTURE Cultivation of risk management culture is extremely important to form a robust and resilient Takaful industry in Pakistan. This objective, however, could not be achieved without active participation and collaboration of regulatory authorities, senior management of Takaful companies and members of SharÄ «ahSupervisory Board (SSB). Towards this end, regularities authorities should make sure that stress testing and Value at Risk (VaR) reports as identified above are regularly produced and obtained from senior management of Takaful operators in addition to reports of Takaful risks. Regular review of these reports will greatly facilitate the regulatory authorities as well as Takaful operators to enhance risk management practices in Takaful industry. Moreover, effective implementation of internal control and corporate governance system could prove to be of vital importance to Takaful operator as well as to concerned regulatory authority. It will help the authorities in effective monitoring of Takaful activities and managing different types of risks hence enhancing the functioning of Takaful operators in the industry. Figure 1 shows the steps for effectively manage the risks in Takaful business. In the first step, possible risks in the way of Takaful business are identified. In the second step, strategies are developed to cope with and manage the risks effectively. In the third step, process of identification and strategy formulation and implementation related to each type of risk is examined through review reports and effective measures are taken to counter any flaw or discrepancy in the previous process. CHALLENGES TO RISK MANAGEMENT In spite of effective risk management techniques discussed above, there are certain challenges in the way of risk management for Takaful. i. Internal Controls: Internal controls are indispensable for recognizing and assessing risks faced by financial institutions including Takaful companies. Basel Committee (2005) and IAIS (2006a) reports have focused on the importance of internal controls for banking institutions as well as for conventional insurance companies respectively. Chapra and Ahmad (2002) found that existence of effective internal control have prevented the financial institutions from systemic crisis and enabled them to have early detection of problems and associated risks they might face in future. These experiences highlight the importance and need of internal controls for Takaful companies. Unique nature of these companies from conventional insurance demands the fulfillment of SharÄ «ahaspects. IFSB and IAIS joint working group (2006) maintains that to have effective internal control mechanism, Takaful companies must ensure SharÄ «ahcontrols in addition to all statutory regulations. It urges the need of a regularSharÄ «ahaud it as a part of an on-going internal control system. ii. Corporate Governance: The corporate governance structure specifies the distribution of rights and responsibilities of the Board, manager, shareholders and other stakeholders (OECD Report, 1999) yet effective corporate governance ensures the independence of board of directors (BOD) who in turn devise polices and implement strategies for risk management and hold the management accountable to shareholders (Psaros and Seamer, 2002; p.7). Lack of an effective corporate governance framework hampers the independence of board of directors (BOD) and hence poses a challenge to risk management. It in turn increases the operational risk which might result in failure of operations due to inability of BOD to implement unbiased and independent decisions for the best interest of all stakeholders. Takaful companies are confronted with an additional challenge related to corporate governance of SharÄ «ahSupervisory Board (SSB). Grais and Pellegrini (2006b) identify corporate governance issues that affect their role and fun ctioning in the organizations. It calls for a greater need to incorporate corporate governance culture to overcome related issues of Takaful industry. iii. SharÄ «ahBased Challenges: According to Ahmed Khan (2001), most of the risk management techniques are not applicable to Islamic financial institutions due to the requirements of SharÄ «ahcompliance. It creates SharÄ «ahbased challenges to risk management for Takafulcompanies as well. These challenges arise as SharÄ «ahrestricts the use certain instruments that are considered useful in conventional risk management e.g. derivatives (futures, options, swaps etc.) and sale of debts. Al-Suwailem (2006, pp.89-90) argues that SharÄ «ahconstraints to human behavior do not hinder creativity, rather these constraints are the major driving force behind the creation of innovative financial instruments. He suggests several Islamic financial instruments for risk management and concludes that SharÄ «ahis abundant with real solutions to the present problems of gambling and speculation. It provides directions to SharÄ «ahscholars and experts of Islamic finance to explore the dimensions of SharÄ «ahin order to integrate risk management practices with value creation. iv. Financial Engineering: Financial engineering aims at designing new and innovative SharÄ «ahcompliant Islamic financial instruments for IFIs including Takaful companies. Chapra and Ahmad (2002) maintain that financial engineering has emerged as the greatest challenge faced by SharÄ «ahscholars of present time as it poses major threat to IFIs to become competitive in the contemporary business environment. Process of giving fatwas by SharÄ «ahscholars regarding the permissibility of a financial instrument is quite slow and over-conservative (Iqbal et al, 1998; pp.47-48) as SharÄ «ahscholars and experts of modern finance have different academic backgrounds. They use technical terms related to their own field that are most of the time not easily understandable to other party. The need is to produce scholars with SharÄ «ahbackground that also have working knowledge of modern finance to meet the acute challenge of financial engineering. v. Islamic Financial Market: Islamic financial market provides a secondary market for trading of Islamic financial instruments. In the absence of this market, it will be extremely difficult for Takafulcompanies to maintain its liquidity position to make prompt claim payments when they become due. Retaining a large portion of Takaful fund to maintain high liquidity ratio will affect the efficiency of the firm and its competitiveness as compared to conventional insurance companies that have ready access to liquid bonds and t-bills. Islamic Financial Market will greatly facilitate the Takafulcompanies to invest large portion of their fund in Islamic financial instruments and increasing their efficiency and competitiveness while maintaining low liquidity ratio. It will also help Takaful companies in hedging market risk by providing alternative instruments to financial derivatives that are not acceptable under Shariah. vi. Need of Private Credit Rating Agencies: Although International Islamic Rating Agency (IIRA) has been set up in Bahrain to judge the SharÄ «ahcompliance and financial strength of Islamic financial institutions (IFIs) including Takaful companies, it is not be possible for IIRA to rate thousands of counterparties with whomTakaful companies deal. Consequently, it calls for the need of private credit rating agencies in each Muslim country that could provide information related to financial strengthen, fiduciary risk and credit worthiness of thousands of counterparties that privately issue financial instruments (Chapra Ahmed, 2002; pp.80-81). This information could provide great help to IIRA in rating these companies and make it readily available to Takaful companies and other interested parties. CONCLUSION AND RECOMMENDATIONS Risk management is of vital importance in Islam and Takaful provides a way to manage risks in business according to SharÄ «ahprinciples. Five types of risks have been identified in Takaful business that affect operational and investment functions of Takaful operator. Operational risk can be managed by enhancing corporate governance culture in the organizations. Cash flow modeling and use of liquidity ratios is quite helpful to identify liquidity constraints. Takaful operators might face difficulty in managing market and credit risks asSharÄ «ahcompliant nature of Takaful contract does not allow Takaful companies to deal with interest rate and financial derivatives due to their speculative nature by which they tend to benefit one party at the loss of other. On the other hand, Islamic financial instruments like cooperative hedging and bi-lateral mutual adjustment aim at providing mutual gains to both parties by the way of risk sharing. Risks associated to Takaful have raised several challenges that need to be encountered to enhance risk management practices. Regular SharÄ «ahaudit is found to be an integral part of effective internal controls that prevent the companies from systemic crisis. Corporate governance calls for independence of BOD to devise policies for effective risk management, make unbiased decisions and resolve issues related to functioning of SSB. SharÄ «ahbased challenges call for devising innovative Islamic financial instruments as SharÄ «ahis abundant with real solutions to present business dilemma and does not hinder creativity. Exploring those solutions will help to meet the challenge of financial engineering. Islamic financial market will greatly facilitate the task of Takaful companies to invest large portion of their fund in Islamic financial instruments and increase their efficiency and competitiveness. There is need to establish private credit rating agencies that could assist IIRA to ra te thousands of counterparties for the benefit of Takaful operators.

Management development review notes

To manage Is to forecast and plan, to command, to co-ordinate and to control Management Is a social process which consists of planning, control, co-ordination and motivation Kenton & online 1976 – Managing Is an operation process Minimally best dissected by analyzing the managerial functions.The essential managerial functions are planning, organizing, staffing, directing and leading, controlling. Classical School Payola's 14 principles of management – many still true but was very structural and paternalistic. Scientific Management FEW Taylor 1911 – the principles of scientific management. Breaking the job down into movements and timing how long it took. Criticized for turning workers into automatons. Concept of Bureaucracy Max Weber 1947 – The theory of social and economic organizations – describes the bureaucratic organizationA bureaucracy is based on rational-legal authority which arises out of the office or position of the person in authority. We ber believed that bureaucracy Is the most efficient means of organizing for the achievement of formal goals. Elton Mayo 1927-1936 Hawthorn Studies/experiments – social relations at work are as Important as monetary Incentives and good physical working conditions Human Relations School.

Leadership For Improved Institutional Performance Education Essay

You are the leader at a post-secondary establishment of higher acquisition ( IHE ) whose regulating board has become critical of the school ‘s way. The board believes that the establishment is missing a clear vision. Pulling upon what you have learned at Argosy University about human motive and the psychological foundations of instruction, what stairss would you urge to the president of the establishment, which, if followed, would take to the â€Å" vision † that is therefore far missing? In your response, anticipate troubles that may originate, and how would you turn to them. Introduction-Background Uncluttering the Vision As a leader at a post-secondary establishment of higher acquisition ( IHE ) whose regulating board has become critical of the school ‘s way, one should piece an institutional site based direction squad ( SBM ) . Site based direction is a consensus-driven acquisition environment that is linked to decentalisation and driven by the school betterment squad. Greater control over determinations sing budget, forces, and course of study focal points on the followers: pupil public presentation, instruction and acquisition, needs appraisal, answerability, professional development, reappraisal, and rating. The site based direction squad is representative of the full school community. Through the engagement of decision makers, teachers/staff, parents, community spouses, and pupils in the decision-making procedure, more effectual acquisition environments are created. Each stakeholder is a critical instrument to its ‘ success. Successful school betterment requires set uping a clear educational vision and a shared institutional mission, cognizing how good the school accomplished that mission, placing countries for betterment, developing programs to alter educational activities and plans, and implementing those programs or new plans efficaciously. Therefore, it is indispensable that the site based direction squad leaders set up a stronger nexus to others in the school and Ministry of Education. In making so, they should link the establishments ends to the broader and deeper mission of supplying higher acquisition for all pupils. As leaders in this attempt to better the vision of the establishment, the assembled site based direction squad should besides see strat ification such as the benefit of plan planning to all pupils instead than some in development and execution of alteration enterprises, inquiring whether a proposed plan will better entree to higher-order acquisition undertakings for marginalized pupils. For school betterment attempts to be successful instructors, parents, community, concern spouses, decision makers, and pupils must portion leading maps. Likewise, the Principal ‘s function must alter from that of a top-down supervisor to that of a facilitator, designer, steward, instructional leader, manager, and strategic instructor ( Senge, 1990 ) . Pull offing school alteration and betterment is one of the most complex undertakings of school leading. Fullan ( 1993 ) , Sparks ( 1993 ) , and other research workers of school leading point out that school leaders need to understand the alteration procedure in order to take, manage, and better attempts of alteration efficaciously. They must larn to get the better of barriers and header with the pandemonium that of course exists during the complex procedure of alteration ( Fullan and Miles, 1992 ) . Administrators and other cardinal school leaders help instructors and other stakeholders build effectual squads by developing new organisational constructions and a created shared vision that focuses on reliable pupil acquisition ( Maeroff, 1993 ) ; ( Newmann, 1993 ) . Such divine and informed leading would be critical to the success of schools. Leading successful alteration and betterment involve developing and pull offing six critical constituents of schooling: ( a ) a clear, strong, and jointly held educational vision and institutional mission ; ( B ) a strong, committed professional community within the school ; ( degree Celsius ) larning environments that promote higher criterions for pupil accomplishment ; ( vitamin D ) sustained professional development to better acquisition ; ( vitamin E ) successful partnerships with parents, wellness and human service bureaus, concerns, universities, and other community organisations ; and ( degree Fahrenheit ) a systematic planning and execution procedure for establishing needed alterations. Louis and Miles ( 1990 ) drew on several instance surveies of urban high schools. The writers emphasized the importance of planning: â€Å" Significant alteration plans do non run themselves. They need active orchestration and coordination ( P. 14 ) . † Human Motivation and Psychological Foundations Maslow ‘s great penetration was to put self-actualization into a hierarchy of human motive. Harmonizing to Maslow ( 1954 ) , self-actualization is the highest thrust, but before this can go on must fulfill other, lower motives like hungriness, safety and belonging. The hierarchy has five degrees: ( a ) physiological ( hungriness, thirst, shelter, and sex. ) ; ( B ) safety ( security, protection from physical and emotional injury ) ; ( degree Celsius ) societal ( fondness, belonging, credence, friendly relationship ) ; ( vitamin D ) regard ( besides called self-importance ) which combines the internal facets of ego regard, liberty, and accomplishment, and the external factors of position, acknowledgment, attending ; ( vitamin E ) Self realization ( taking action ) . Maslow ( 1954 ) pointed out that the procedure of self-actualization is dynamic ; the dominant demand is ever switching. For illustration, a sexual spouse may be lost in the self realization of love devising, but finally becomes tired and hungry, and has to halt in order to make full a more immediate demand, nutriment. Furthermore, a individual behaviour may unite several degrees. For illustration, eating dinner is both physiological and societal. This hierarchy does non be by itself, but is affected by the state of affairs and the general civilization. Satisfaction is comparative. Finally, Maslow notes that a satisfied demand no longer motivates. A hungry individual may be despairing for nutrient, but one time a repast is eaten, the promise of nutrient no longer motivates him ( Masters and Johnson, 1974 ) . The Hersey and Blanchard theory is extremely popular and strikes most people as intuitively right. McGregor ( 1960 ) nevertheless, makes it the edifice block for the Theory X and Theory Y. Csikszentmihalyi ( 1988 ) continued the tradition with the construct of â€Å" Flow, † a 1990s construct of self-actualization. Empirical research conducted by Hersey and Blanchard ( 1977 ) confirmed Maslow ‘s first three degrees, but has non made farther procedure as it relates to the 4th and 5th degrees of self-esteem and self-actualization. McGregor ( 1960 ) noted that Maslow ‘s hierarchy follows the life rhythm. A newborn babe ‘s demands are about wholly physiological. As the babe grows, it needs safety, so love. Toddlers are eager for societal interaction. Adolescents are dying about societal demands while immature grownups are concerned with regard and merely more mature individuals transcend the first four degrees to pass much clip self-actualizing ( Hersey and Blanchard, 1977 ) . The connexion at this occasion is that external incentives such as rewards, benefits, and term of office, fulfill lower demands. Workers satisfy higher demands by working with others, or acquisition and happening fulfilment in their work ( Rusaw, 2001 ) . As leaders in the alteration procedure, one must esteem that piece of the mystifier each member of the squad brings to the tabular array and validate those endowments. Before the alteration procedure begins, leaders must go familiar with the school betterment rhythm, the phases of the alteration procedure, and alteration theoretical accounts associated with each. Name the alteration theoretical accounts As alteration agents, one must be able to separate between the school betterment rhythm and the alteration procedure, find where the school is located within the alteration procedure, and place appropriate following stairss. Fullan ( 1992 ) argues that in readying for a leading place, the leader must make two things: larn more about the complexnesss of the alteration procedure by reading, researching, speaking with adept practicians, and go toing seminars ; and accept the alteration procedure as a positive experience to be understood and embraced, instead than a negative experience to be feared and avoided. Responses to inquiries of why establishments expend so much clip, energy, and extended resources on instruction are chiefly ideological, grounded in personal belief systems. One can non reply cardinal inquiries about the intents of educational leading unless there is a willingness to uncover the rules, values, and premises land and steer them. These rules form cardinal belief systems about the ways in which one can understand themselves and society and find the hopes for the hereafter. Csikszentmihalyi ( 2003 ) cites businessman Max DePree who states that the first inquiry for a leader is non what are they traveling to make but that it ever is: where does the organisation intend to be. Conversely, it can be argued that should educators fail to see the challenges of taking in the thick of diverseness, they neglect the foundations of the educational enterprise. On the other manus, when they engage in expressed conversations about the diverseness of their pupil organic structures and the relationship of societal justness to constructs of academic excellence and school success, they are taking with moral intent. Leadership requires, as Csikszentmihalyi ( 2003 ) provinces, that one should reflect deeply on one ‘s ain experiences and bedrock values to happen ways in which 1 might step in intentionally with moral intent. During the school betterment procedure, alteration experts such as community stakeholders, module, staff, pupils, should come together as a squad to take alteration attempts. Harmonizing to Maslow ‘s theory, the societal, self-esteem, and self-actualization demands take centre phase. Social demands are being met given that the assembled squad belongs to a particular group charged with heightening something dynamic that will impact the lives of others. The self-esteem demands of the squad will be met as the squad has position and common regard of their co-workers which leads to the following measure of taking action in the accomplishment of the ends. Therefore, it is of import to pull upon the expertness and accomplishments of university module, cardinal office forces, external advisers, professional staff developers, and others. During this pre-implementation phase, treatments are facilitated about the school ‘s history of alteration in order to understand how and why past alteration attempts have succeeded or failed. Fullan ( 1993 ) favours merely get downing the alteration procedure without needfully be aftering every measure in progress. However, it is of import to pull off, steer, papers, and learn from the alteration procedure. Leaderships of postsecondary establishments should larn about the functions of decision makers, module, cardinal office staff, parents, board members, and others involved in functioning kids and young person. All play an of import function in the school betterment procedure. The corporate cognition of such persons is used to organize effectual school betterment squads. School leaders understand and cultivate these functions and the functions that others play within betterment enterprises. To construct coaction within the school civilization, module survey groups and cross-grade or section squads provide clip for collegial work. As a committed and collaborative civilization emerges in support of the alteration procedure, the judge of leaders establishes communicating with and high outlooks of squad members while showing assurance in school staff and the environing community. Once partnerships are formed with parents, concerns, and societal services and community bureaus, attempts are made to consolidate resources to run into a scope of pupil demands. In making high-achieving acquisition environments and bettering pupil acquisition, the leaders select and integrate a assortment of plans to better instruction and acquisition. Last, a set of guidelines are established to implement new attacks to student larning while continually supervising both internal and external measurings for betterment. Drumhead Leaderships of post-secondary establishments of higher acquisition should pull upon the endowments of their stakeholders while using the assorted motivational and psychological foundations to expect, understand and turn to squad troubles as that may originate throughout the school betterment procedure. As school system support is progressively tied to public presentation, leaders should see that public presentation needs to be more loosely defined. Performance measurement systems are to bring forth thrust and communicate alteration. Performance measurement systems that are dominated by punitory inducements tend to hold a counterproductive impact on betterment attempts. Ultimately the end of school betterment should as a tool for those interested in constructing system capacity to run into the demands of kids. An effectual public presentation measuring system is the foundation for measuring plans. The leading squad should ease the development of a comprehensive public presentation measuring system that examines all facets of operations whether it is at the school or in the community. Performance indexs should supply stakeholders with a diagnostic tool, enabling them to rapidly and easy pass on advancement, demands and challenges to their components. Harmonizing to Stephen Covey, leading trades with way and vision. The basic function of the leader is to further a common regard and construct a complimentary squad where each strength is made productive and each failing is mitigated. The key is supplying the context for success in footings of resources, systems and authorization. The function of leader as instructor starts with placing people ‘s mental theoretical accounts of of import issues. No 1 carries an organisation in his or her caput. What we carry are premises. These mental images of how the universe works have a important influence on how we perceive jobs and chances identify classs of actions and do picks. Everyone agrees that leaders need vision, energy, authorization, and strategic way, but I think it is every bit apparent that the ability to animate people, to capture their Black Marias, heads, psyches, and sympathize ferociously with the people they lead, is the chemistry that determines the difference between norm and dramatic success as a leader. At the terminal of the twenty-four hours, the leader must beat up the squad and take the hill. After all, the qualities of leading are of limited usage unless we do something with them. You and I are so fortunate. When the involvement at interest are the well being and hereafter of our profession, its easy to be excited and full of energy. It merely makes sense to be a airy. It ‘s natural that excellence is a minimal demand. And it is so much merriment to work with others likewise inflicted with a passion for public instruction. When I look around the room and when I think of all the talented and dedicated people I have met this weekend, I know that our hereafter is so in good custodies.

Anglo-Saxon and Viking Queens of England

Either Aethelstan or his grandfather, Alfred the Great, is usually considered the first king of England, rather than of one part of England.  Alfred the Great adopted the title of king of the Anglo-Saxons, and Aethelstan, king of the English. The powers and roles of queens – the wives of monarchs – evolved considerably through this period.  Some werent even named in contemporary records. These queens (and consorts who were not queens) according to their husbands for clarity. The first queen of England was Judith of France, daughter of a French King, the brief bride of king Aethelwulf, and later, as briefly, to his son Aethelbald, brother to Alfred the Great. Alfred The Great (r. 871-899) He was the son of Aethelwulf, king of Wessex, and Osburh Ealhswith - married 868She was the daughter of Aethelred Mucil, a Mercian noble, and Eadburh, also a Mercian noble, supposedly descended from King Cenwulf of Mercia (ruled 796 – 812).She was never actually given the title of â€Å"queen.†Among their children were Aethelflaed, Lady of the Mercians; Aelfthryth, who married the Count of Flanders; and Edward, who succeeded his father as king. Edward The Elder (r. 899-924) He was the son of Alfred and Ealhswith (above).  He  had three marriages (or two and one nonmarital relationship). Ecgwynn – married 893, son was Athelstan, daughter EdithAelfflaed – married 899seven children including four daughters who married into European royalty and a fifth who became a nun, and two sons, Aelfweard of Wessex and Edwin of Wessexone daughter was Edith (Eadgyth) of England, who married Emperor Otto I of GermanyEadgifu – married about 919, sons included Edmund I and Edred, a daughter Saint Edith of Winchester who was considered a saint, and another daughter (whose existence is questionable) who may have married a prince of Aquitaine Aelfweard (r. briefly and contested: 924) He was the son of Edward and Aelfflaed (above). no recorded consort Athelstan (r. 924-939) He was the son of Edward and Ecgwynn (above). no recorded consort Edmund I (r. 939-946) He was the son of Edward and Eadgifu (above). Aelfgifu of Shaftesbury – date of marriage unknown, died 944revered as a saint soon after her deathmother of his two sons, who each ruled: Eadwig (born about 940) and Edgar (born 943)no indication she was recognized with the title of queen during her timeAethelflaed of Damerham – married 944, daughter of Aelfgar of Essex. Left a wealthy widow when Edmund died in 946, she remarried. Eadred (r. 946-55) He was the son of Edward and Eadgifu (above). no recorded consort Eadwig (r.955-959) He was the son of Edmund I and Aelfgifu (above). Aelfgifu, married about 957; details are uncertain but she may have been of Mercian background; a lurid story is told of her and the king, involving a fight with (later Saint) Dunstan and Archbishop Oda. The marriage was dissolved in 958 because they were closely related – or perhaps to protect the claim of Eadwig’s brother, Edward, to the throne; she seems to have gone on to accumulate significant property Edgar (r. 959-975) He was the son of Edmund I and Aelfgifu (above) – the details of his relationships and the mothers of his sons are disputed. Aethelflaed (not married)Son Edward (below)Wulthryth (not married; Edgar is said to have kidnapped her from the nunnery at Wilton)Daughter Saint Edith of WiltonAelfthryth, who was anointed as queenSon Aethelred (below) Edward II The Martyr (r. 975-979) He was the son of Edgar and Aethelflaed no known consort Aethelred II The Unready (R. 979-1013 and 1014-1016) He was the son of Edgar and Aelfthryth (above). Also spelled Ethelred. Aelfgifu of York – married possibly in the 980s – her name does not appear in writings until about 1100 – probably the daughter of Earl Thored of Northumbria – never anointed as queen – died about 1002Six sons, including Aethelstan Aetheling (heir apparent) and the future Edmund II, and at least three daughters including Eadgyth, married to Eadric StreonaEmma of Normandy (about 985 – 1052) – married 1002 – daughter of Richard I, Duke of Normandy, and Gunnora – changed her name to Aelfgifu on marriage to Aethelred – married Canute after Aethelred’s defeat and death.  Their children were:Edward the ConfessorAlfredGoda or Godgifu Sweyn or Svein Forkbeard  (r. 1013-1014) He was the son of Harold Bluetooth of Denmark and Gyrid Olafsdottir. Gunhild of Wenden – married about 990, fate unknownSigrid the Haughty – married about 1000Daughter Estrith or Margaret, married Richard II of Normandy Edmund II Ironside (r Apr - Nov 1016) He was the son of Aethelred the Unready and Aelfgifu of York (above). Ealdgyth (Edith) of East Anglia - married about 1015 - born about 992 – died after 1016 – probably the widow of a man named Sigeferth. Probably the mother of:Edward the ExileEdmund Aetheling Canute The Great (r. 1016-1035) He was the son of  Svein Forkbeard  and Ã…Å¡wiÄ™tosÅ‚awa (Sigrid or Gunhild). Aelfgifu of Northampton – born about 990, died after 1040, regent in Norway 1030 – 1035 – she was simply put aside as a wife according to customs of the time so that Cnut could marry Emma of NormandySweyn, King of NorwayHarold Harefoot, King of England (below)Emma of Normandy, widow of Aethelred (above)Harthacnut (about 1018 – June 8, 1042) (below)Gunhilda of Denmark (about 1020 – July 18, 1038), married Henry III, Holy Roman Emperor, without offspring Harold Harefoot (r. 1035-1040) He was the son of Canute and Aelfgifu of Northampton (above). may have been married to an Aelfgifu, may have had a son Harthacnut (r. 1035-1042) He was the son of Canute and Emma of Normandy (above). not married, no children Edward III The Confessor (r. 1042-1066) He was the son of Aethelred and Emma of Normandy (above). Edith of Wessex –lived about 1025 to December 18, 1075 – married January 23, 1045 – crowned as queen – they had no childrenHer father was Godwin, an English earl, and mother was Ulf, a sister of Cnut’s brother-in-law Harold II Godwinson (r. Jan - Oct 1066) He was the son of Godwin, Earl of Wessex, and Gytha Thorkelsdottir. Edith Swannesha or Edith the Fair – lived about 1025 – 1086 – common-law wife? -- five children including a daughter who married a Grand Duke of KievEaldgyth or Edith of Mercia – was the wife of Wales ruler Gruffud ap Llywelyn and then queen consort of Harold Godwineson – marriage date probably 1066 Edgar Atheling (r. Oct - Dec 1066) He was the son of Edward the Exile (son of Edmund II Ironside and Ealdgyth, above) and Agatha of Hungary.   not married, no children Edgar’s sisters had connections to later English and Scottish rulers: Margaret who married Malcolm III of Scotland and had two daughters, Mary and Matilda of ScotlandCristina who became a nun and tutor to her nieces Mary and MatildaMatilda (born Edith) married Henry I of England and was the mother of the Empress MatildaMary was the mother of Matilda of Boulogne  who married King Stephen of England Next queens:     Norman Queens of England