Workers Participation In Management Management Essay

Workers Participation In Management Management Essay Workers participation is a system where workers and management share important information with each other and participate in decision taking. Workers participation in management is an essential ingredient of Industrial democracy. The concept of workers participation in management is based on Human Relations approach to Management which brought about a new set of values to labor and management. Workers participation in management implies mental and emotional involvement of workers in the management of Enterprise. It is considered as a mechanism where workers have a say in the decision-making. It is a process by which authority and responsibility of managing industry are shared with workers. Objectives of Workers Participation in Management: Economic Objective: Workers participation in management aims at increasing productivity of labor by improving cooperation between employer and employees. Productivity is sought to be increased by improving job satisfaction and industrial relations. Social Objective: Under participation, industry is considered as a social institution in which each and every worker has a vested interest. The purpose of participation is to ensure human dignity and to get the workers a respectable status in the society. Psychological Objective: Workers participation in management seeks to bring about a change in the attitude of the workers. Through participation, they will consider themselves an integral part of the industry rather than mere working hands. Participation provides the employees an opportunity to express themselves thereby satisfying their non-economic needs. It provides them a sense of belonging, pride and accomplishment. Importance of Workers Participation in Management: Workers Participation in Management provides the following benefits: Mutual Understanding: Participation brings the two parties closer and makes them aware of each others problems. As a result, a better understanding and mutual trust can be created between employer and workers. Higher Productivity: Cooperation between management and labor helps to increase production and profits of the industry. Participation improves employee motivation and job satisfaction which in turn help to increase their efficiency. Higher productivity leads to lower costs per unit and greater profits which are beneficial to all. Industrial Harmony: Workers participation in management helps to reduce industrial disputes and to improve workers loyalty. Continuous dialogue between management and workers improves peace in industry. Industrial Democracy: Workers participation in management ushers in industrial democracy which is necessary for political democracy. Need for outside intervention between employer and employees is eliminated and workers are freed from exploitation. Less Resistance to Change: Workers often resist change due to fear and ignorance. When workers participate in the decision making, they come to understand that change is ultimately in their own interest. They become more able and ready to adopt themselves to technological and other changes made to improve the competitive position of the company. Creativity and Innovation: Participation encourages workers to think and take initiative. Their talent and ability can be capitalized; highly competent employees can be spotted and given prevention. Forms / Methods of Workers Participation in Management: Suggestion schemes: Participation of workers can take place through suggestion scheme. Under this method workers are invited and encouraged to offer suggestions for improving the working of the enterprise. A suggestion box is installed and any worker can write his suggestions and drop them in the box. Periodically all the suggestions are scrutinized by the suggestion committee or suggestion screening committee. The committee is constituted by equal representation from the management and the workers. The committee screens various suggestions received from the workers. Good suggestions are accepted for implementation and suitable awards are given to the concerned workers. Suggestion schemes encourage workers interest in the functioning of an enterprise. Works committee: Under the Industrial Disputes Act, 1947, every establishment employing 100 or more workers is required to constitute a Works Committee. Such a committee consists of equal number of representatives from the employer and the employees. The main purpose of this committee is to provide measures for securing and preserving amity and good relations between the employer and the employees. Joint Management Councils: Joint consultation is the process whereby employer consults the workers either directly or through their representatives and seeks their opinion on various issues while retaining to him the right of taking final decisions. Joint consultation is a popular form of popular participation in management. These councils consist of equal number of representatives of the employers and employees, not exceeding 12 at the plant level. The council discusses various matters relating to the working of the industry. This council is entrusted with the responsibility of administering welfare measures, supervision of safety and health schemes, scheduling of working hours, rewards for suggestions etc. Work directors: Under this method, one or two representatives of  workers are nominated or elected to the  Board of Directors. This is the full-fledged and highest form of  workers participation in management.  The basic idea behind this method is that  the representation of workers at the top-level would  usher Industrial Democracy, congenial employee-employer relations and safeguard the workers interests. The  Government of India introduced this  scheme in several public sector  enterprises such as Hindustan Antibiotics, Hindustan Organic Chemicals Ltd etc. However the scheme of appointment of such a  director from among the employees failed miserably and the  scheme was subsequently dropped. Co-partnership: Co-partnership involves  employees participation in the share capital of a company in  which they are employed. By virtue of  their being shareholders, they have  the right to participate in the  management of the company. Shares of the  company can be acquired by workers making cash payment or by way  of stock options scheme. The basic objective of stock options is not to  pass on control in the hands of  employees but providing better financial incentives for  industrial productivity. Shop councils: Government of India, on the 30th of October 1975 announced a new scheme in WPM. In every Industrial establishment employing 500 or more workmen, the employer shall constitute a shop council. Shop council represents each department or a shop in a unit. Each shop council consists of an equal number of representatives from both employer and employees. The employers representatives will be nominated by the management and must consist of persons within the establishment. The workers representatives will be from among the workers of the department or shop concerned. The total number of employees may not exceed 12. Workers Participation in Management in India: Workers participation in Management in India was given importance only after Independence. The workers participation in management is not new even though it got encouragement only after independence. In 1920, Mahatma Gandhi observed Employees should not regard themselves as sole owners of mills and factories of which they may be legal owners. They should regard themselves trustees. Industrial Disputes Act, 1947 was the first step in this direction, which recommended for the setting up of works committees. The joint management councils were established in 1950 which increased the labor participation in management. Since July 1975 the two-tier participation called shop councils at shop level and Joint councils were introduced. Workers participation in Management Bill, 1990 was introduced in Parliament which provided scope for upliftment of workers. But still in India, workers participation is not given so much importance because of some of the reasons. These reasons could be discussed below. Reasons for Failure of Workers Participation in India: Some of the reasons for the failure of Workers Participation in India can be are as follows: Employers have by and large resisted workers participation in decision-making. They feel that workers are not competent enough to take decisions. There is no clear evidence to convince managers that participative management will really lead to higher productivity and profitability. Lower level needs of workers are not fully satisfied. Therefore majority of Indian workers are not motivated enough to assume decision making responsibility either directly or through their representatives. Workers representatives who participate in management have to perform the dual role of workers spokesmen and co-managers. Very few representatives are competent enough to assume the two incompatible roles. Generally trade union leaders, who represent workers, are also active members of political parties. While participating in management they give priority to political interest rather than the interests of the workers. Schemes of workers participation have been initiated and sponsored by the government. There has been a lack of initiative on the part of both the employers and the trade unions. The focus has been on participation at higher levels. As a result rank and file of workers are not involved in decision making on matters directly affecting them. In India, labor laws regulate virtually all terms and conditions of employment at the work place. Workers do not feel the urge to participate. The unwillingness of the employer to share powers with the workers representatives, the disinterest of the workers and the perfunctory attitude of the government towards participation in management act as stumbling blocks in the way of promotion of participative management. Measures for making Participation effective: Employer  should  adopt a  progressive  outlook. They should  consider  the industry as a joint endeavor in which  workers have an equal say. Workers should be provided and enlightened about the benefits of their participation in the  management. Employers  and workers should agree  on the  objectives  of the  industry.  They should recognize and respect the rights of each other. Workers and their  representatives should be provided education and trainingin the  philosophy and process of participative management. Workers shouldbe made aware of  the benefits of participative management There should  be effective communication  between  workers  and management and effective consultation of workers by the management in decisions that have an impact on them. Participation  should  be a continuous  process.  To begin  with, participation should start at the operating level of  management. A mutual co-operation and  commitment to participation  must be developed by both management and  labor. Modern scholars are of the mind that the old adage a worker is a worker, a manager is a manager; never the  twain shall meet should be replaced by managers and workers are partners in the progress of business. Thus the above given are some of the measures to improve upon the failure of workers participation in India.

Antigone Essay -- English Literature

Antigone Essay In any story or piece of literature, there will always be the main characters to fill the pages with incessant adventure. The characters whose names appear on almost every page and the characters whose actions the story revolves around. However, a story will also always have its minor characters. These are the characters that contribute heavily to the plot, yet aren't mentioned quite as often and are underestimated regarding their importance in the story. In the Greek masterpiece, Antigone, the author Sophocles construed a myriad of minor characters that contributed to the story in numerous ways. Ismene, one of Oedipus' daughters, was created to foil the main character, Antigone. Haemon, the son of Creon, took the role of adding controversy and showing his father revenge for all the trouble he caused Thebes. And finally, Tiresias, an elderly blind prophet, was constructed to diminish Creon's hubris. Firstly, Ismene's character was created primarily to foil that of Antigone's. When Antigone initially discussed her plans to contest the King's orders, Ismene was against it and tried to argue with her sister, hoping to dispel the plan from her mind. In lines 71-74, Ismene states during her argument, "think what a death we'll die, the worst of all if we violate the laws and override the fixed decree of the throne, it's power- we must be sensible." During the entire story the two characters have obvious opposing views and personalities. Ismene is discerned as rational, cautious, and dutiful, while Antigone is conveyed as intractable, brave, and disobedient. Another example of the discrepancy between the characters is the way that they are physically represented. Sophocles generated Ismene w... ...ty fits together like a puzzle. For example, without those blank sky pieces that fit at the top of a puzzle, it can never be completed. Same rule applies to any story, without the minor characters to reveal hidden information or to simple add drama, then a story can never be completed. In the Greek tragedy, Antigone, the author, Sophocles, presents the minor characters in his story with important functions and responsibilities. Ismene, Antigone's sister, had the purpose of foiling Antigone in order to create undeclared confliction between the characters. Haemon, Antigone's fiancÃÆ'Â ©e, was meant to bring justification to the string of deaths at the end of the story. And lastly, Tiresias, the respected prophet, was carefully produced as the character who pushed Creon's conscious over the edge and influenced him the most to withdraw his punishment for Antigone.

Decision Making and Self-awareness Essay

In today’s ever changing economy and fast paced lifestyles it might seem difficult to find time to think about who we are as individuals. This includes what our strengths and weaknesses, our drives and personalities, and our habits and values are. This is because many individuals are just not inclined to spend large amounts of time on self-reflection. Even when personal feedback is presented to us, we are not always open to it, because honest feedback is not always flattering. Consequently, many individuals have a considerably low level of self-awareness concerning one’s self. This is unfortunate due to the fact that self-awareness is an essential first step toward maximizing management skills. Self-awareness can improve one’s judgment and help them to identify opportunities for professional development. Self-awareness involves developing an understanding of many dimensions of the individuality of an individual. Self-knowledge provides an essential foundation for general personal mastery as well as other personal management skills such as setting goals and priorities, and managing time and stress. Philosophers have long since recognized that knowing thyself may involve distinguishing between what you are thought to be versus what you actually are. This observation suggests that the perceived self-concepts of an individual may be either positively or negatively biased, from their actual self-concept. However, once self-concepts are formed, individuals tend to avoid new knowledge that does not fit within their self-view. This is typically achieved through feedback from family, friends, and coworkers. Fear, shame, or other emotions may prevent an individual’s ability to develop an honest and accurate awareness of who they are as a person (Williams, 2003). Human beings are complex and diverse creatures and therefore, to become more self-aware, every individual person should develop an understanding of themselves in many areas. There are five major key areas for self-awareness. These areas include an individual’s personality traits, personal values, habits, emotions, and the psychological needs that drive our behaviors (Williams, 2003). An individual’s personality helps them to understand what it means to be aware of themselves as a person. When an individual understands his or her own personality it can help them find situations in which they will thrive, and help them to avoid situations in which they will experience too much stress. For instance, if an individual is a highly introverted person, meaning a person whom is characterized by concerns primarily with his or her own thoughts and feelings, that individual is likely to experience more stress in a sales position than a highly extroverted person would. An extroverted individual is a person concerned primarily with the physical and social environment around them. So, if an individual is considered to be a highly introverted person, they will need to learn skills to cope with the demands of a sales position that requires extravert-type behavior patterns, or they should consider finding a position that is more compatible with their personality. Consequently, by being aware of an individual’s personality helps them analyze such decisions that they may come across in their day-to-day lives (Ross, 2011). Another key area of self-awareness is one’s personal values. It is important that each person knows and focuses on their individual personal values. For instance, if an individual’s first priority is â€Å"being there for his or her children†, it is very easy to lose sight of certain priorities and/or goals on a day-to-day, moment-by-moment basis. Unfortunately, during the workday most individuals are beset with multiple distractions, problems, or opportunities; therefore, diminishing the amount of time that we have to accomplish our lists of priorities. Since few, if any of those priorities pertain to what an individual may value most, it is easy to spend too much time on lower priority activities. When we focus solely on our personal values, we are more likely to accomplish what we consider most important (Ross, 2011). Each individual has their own personal habits. Habits are the behaviors that individual’s repeat routinely and often automatically, without conscientious thought. Although every person would like to possess the habits that help people effectively interact with and manage others, each individual can probably all identify at least one habit that decreases effectiveness of achieving this particular goal. For example, if you are a manager who never consults your staff before making decisions, that habit may interfere with your ability to build your staff members’ commitment to the decisions and their decision-making skills as well (Ross, 2011). Where each individual person has their own personal habits, they also contain their own personal needs. Abraham Maslow, a renowned psychologist and other scholars have identified a variety of psychological needs that drive each person’s individual behaviors. Some of these drives consist of the need for esteem, affection, belongingness, achievement, self-actualization, power and control. An advantage of knowing which needs exert the strongest influence on an individual’s behaviors is that it gives that individual the ability to understand exactly how a particular behavior affects the interpersonal relationships with other individuals within differing environments. For instance, most individuals have probably known at least one person whom has a high need for status. These individuals whom have a high need for status are similarly attracted to occupations with high statuses. Therefore, they will ultimately seek high status positions within their organizations. Such people also feel the need to own materialistic things that help to symbolize their status, as well as be given certain privileges and perks that people of lower statuses cannot have. Sometimes these individuals will fight for things that others see as inconsequential – like a bigger office or a longer lunch break. In order for these needs to become satisfied, individuals must be motivated. When an individual’s needs are not satisfied, they can become frustrated, conflicted and stressful, therefore causing others around them to become frustrated, conflicted, or even stressful about a particular topic or situation (Jeanne Segal, 2013). Emotional self-awareness is one of the five facets of emotional intelligence. Being able to connect to one’s emotions is the key to understanding one’s self and others. Many people are disconnected from their emotions–especially strong core emotions such as anger, sadness, fear, and joy. This may be the result of negative childhood experiences that taught them to try to shut off their feelings. But although we may have the ability distort, deny, or even numb particularly unpleasant feelings, they cannot be eliminated completely. They are still there, whether we are aware of them or not. Unfortunately, without emotional awareness, people are unable to fully understand their own motivations and needs, or to communicate effectively with others. Similarly, a person with high emotional self-awareness understands the internal process associated with emotional experiences and, therefore, has greater control over them (Jeanne Segal, 2013). When an individual learns to become self-aware of whom they are, they become more a more effective person in their personal lives, as well as professional lives. For example, self-awareness helps managers to identify gaps in their management skills, which promotes skill development. It also helps managers find situations in which they will be most effective, such as assisting with intuitive decision making, and aiding in stress management and motivation of oneself and others with whom they work with (Ross, 2011). Improving and individuals skill development typically begins with an assessment of the gap between the current situation and a desired future situation. Having an accurate sense of who an individual is helps them decide what steps they should take to improve themselves. Often times, self-awareness will reveal a gap within a particular skill that should probably worked on (Williams, 2003). If an individual is not aware of their strengths and weaknesses, self-awareness can help them to exploit their strengths and cope with their weaknesses. For example, if an individual is someone who is good at â€Å"seeing the larger picture† that involves decision-making, but is not as good at focusing on the particular details, he or she might want to consult colleagues and/or subordinates that are more detail-oriented when making major decisions. When there is cooperation between big-picture-oriented decision makers and detail-oriented decision makers, individuals have the ability to produce high quality decisions (Williams, 2003). Also, leaders with whom have well-developed emotional self-awareness are considered to be more effective intuitive decision makers. In complex situations, they have the ability to process large amounts of sometimes unstructured and rather ambiguous information. They choose a course of action based on a â€Å"sense† of what is best for the situation. This type of decision making is becoming more important for managers as the rate of change and the levels of uncertainty and complexity in their competitive environments increase (Williams, 2003). Another aspect of self-awareness that must be considered is that of stress. Employment positions that do not suit an individual’s personality tend to give that individual more stress than employment positions that are more compatible will. This does not mean that a person should never take a job that conflicts with his or her personality. However, a person should be aware that they will need to work extra hard to develop the certain skills for that position (Williams, 2003). It is very difficult to cope with poor results in any environment when there is no understanding as to what caused the poor results in the first place. Without knowing what behaviors to change in order to improve performance, an individual can feel helpless and lose control of the situation as well as themselves. Self-awareness is empowering because it can reveal where the performance problems are and indicate what can be done to improve performance. In addition, awareness of psychological needs can increase motivation by helping to understand and seek out the rewards that are desired by such as a sense of accomplishment, additional responsibility, an opportunity to help others, or a flexible work schedule. When an individual understands â€Å"what make them tick†, â€Å"what gets them excited† and/or â€Å"why they behave the way they do†, they have insight into what makes other individuals tick. To the extent that other people are similar, knowing how to motivate one’s self is tantamount to knowing how to motivate others. Works Cited Jeanne Segal, P. a. (2013, January). HelpGuide.org. Retrieved February 10, 2013, from Emotional Intelligence: http://www.helpguide.org/mental/eq5_raising_emotional_intelligence.htm Ross, A. (2011, April 12). Leadership Coaching – Five Areas of Self-Awareness. Retrieved February 10, 2013, from Keys to Growth When Revenue Matters: http://www.keystogrowth.com/thoughts/2011/4/12/leadership-coaching-5-keys-areas-of-self-awareness.html Williams, b. D. (2003, December 11). Self Awareness and Personal Development. Retrieved February 10, 2013, from LeaderLetter: http://www.wright.edu/~scott.williams/LeaderLetter/selfawareness.htm#top

The guidelines and regulations of Dividend Policies - Free Essay Example

Sample details Pages: 9 Words: 2711 Downloads: 4 Date added: 2017/06/26 Category Finance Essay Type Analytical essay Did you like this example? Dividend policies are the guidelines and regulations that companies develop and implement as the means of arranging to make dividend payments to shareholders. Establishing a specific dividend policy is to the advantage of both the company and the shareholder. In order to make sure the policy is workable, a company should develop a viable policy and then run this policy through a number of test scenarios in order to determine what impact the dividend policy would have on the operation of the business. Don’t waste time! Our writers will create an original "The guidelines and regulations of Dividend Policies" essay for you Create order A first assumption in much of the academic finance literature is that managers work to maximize the wealth of the firms shareholders. Shareholders, the owners of the firm, elect the board of directors that, in turn, hires, promotes, compensates, and fires managers. Through this board linkage, managers, at least in theory, work on behalf of the shareholders. Firms are always searching for an optimal dividend policy, one that strikes a balance between current dividends and future growth and maximizes the firms stock prices. Dividend policy is needed as erratic dividend policy would mean surprises to market participants which will result in a drop in the firms stock price when there is selling off. Thus, a well-planned dividend policy could prevent these surprises and preserve or even enhance stock price. Dividend policy of a firm has implications for various stakeholders such as investors, managers and lenders. For investors, dividends are not only a means of regular income, but also an important input in valuation of a firm. As for managers, the more dividends paid would mean fewer funds available for investment. Lenders may also have interest in the amount of dividend a firm declares, as more dividend means less money available for servicing and redemption of their claims. In the process of maximizing the wealth of shareholders, managers must constantly be concerned with how their decisions influence the price of their firms shares. Share price is the critical determinant of shareholder wealth. Managers dividend policy decisions affect common stock share prices and, therefore, the wealth of shareholders. By dividend policy, we mean the payout policy that management follows in determining the size and pattern of cash distributions to shareholders over time. 2.0 Organisation of literature review Does Anyone Really Pay Attention to Dividends? According to Ronald C. Lease. (2000). To provide a glimpse of what the real world thinks about the importance of dividends and dividend policy, we have drawn the following excerpts from the popular financial press. Income managers are worst-off in the hunt for new investments. Since early 1995, the dividend yield [dividends per share divided by share price] on the Standard Poors 500-stock index has plunged to 1.6% from 2.9%, as companies buy back stock rather than boosting dividends. To be sure, investors themselves favor capital appreciation rather than income, thanks in part to capital-gains tax cuts in the new tax laws. But strategists and investors argue a sizable number of investors still hunt-in vain-for yield. Individual investors, with high net worth, or people who are coming close to retirement, want something in their portfolios that will give them yield or income, says Greg Smith, chief investment strategist at Pruden tial Securities. Theyve been part of a wonderful three years in the stock market, but its left them asset rich and cash poor. (Wall Street Journal, October 22, 1997, p. C1) Corporate managers around the world are clearly attuned to the tax consequences of repurchases as compared with dividends. Consider the case of Reuters Holdings, the London-based media giant, which suspended its move to effectively buy back 5% of its shares in October 1996, after the British government announced it would toughen tax laws on such deals. Instead of using the special dividend structure, Reuters might consider doubling up its regular dividend. (Wall Street Journal, October 9, 1996, p. A18) Dividend changes historically are a lagging indication of corporate profitability and at the same time a sign that corporate boards have confidence in the future. Because dividend reductions are seen as a very bad sign, companies hate to raise payouts to an unsustainable level. (New York Times, January 3, 199 7, Section D, p. 4) One big disadvantage of larger dividends is that they erode a companys cash cushion for recessions. All of the Big Three auto makers quickly burned through their cash reserves during the last recession five years ago, and they have been determined not to repeat the experience. Larger dividends and lower cash reserves also mean slightly less assurance to bondholders that a company will be able to repay them in hard times. As a result, companies with generous dividends tend to have slightly lower credit ratings, which raise their borrowing costs. (New York Times, May 17, 1996, Section D, p.1) Changes in dividend policy tend to coincide with the release of other important news concerning the company. Some firms, like Microsoft, pay no dividend because they can generate higher returns for shareholders investing their profits back in the company. Interestingly, there is evidence that investors typically underestimate the full importance of fluctuating dividends. In a number of recent studies, economists were not surprised to find that the share prices of firms that cut dividends underperformed firms that increased dividends in the 12-month period preceding the announcement of the cut. (Detroit News, August 4, 1996, p. F2) Elisabeth Goth, a dissident member of the family that controls Dow Jones Co., raises questions about its dividend policy, contends Dow Jones has increased its dividends at the expense of reinvesting its earnings to fuel future growth. (Wall Street Journal, March 13, 1997, p. B15) Financial theory says that share splits, buybacks, and dividend cuts should not affect share prices, but they do because investors believe that managers are trying to convey information with these actions. [A] dividend cut suggests that insiders expect profits to languish for years. These moves have gained their signaling power partly because investors do not trust managers to tell them the truth. (Economist, August 15, 1992, p. 14) Div idend Coverage Ratio According to article from www.investopedia.com. When you evaluate a companys dividend-paying practices, ask yourself if the company can afford to pay the dividend. The ratio between a companys earnings and net dividend paid to shareholders known as dividend coverage remains a well-used tool for measuring whether earnings are sufficient to cover dividend obligations. The ratio is calculated as  earnings per share  divided by the dividend per share. When coverage is getting thin, odds are good that there will be a dividend cut, which can have a dire impact on valuation. Investors can feel safe with a  coverage ratio  of 2 or 3. In practice, however, the coverage ratio becomes a pressing indicator when coverage slips below about 1.5, at which point prospects start to look risky. If the ratio is under 1, the company is using its retained earnings from last year to pay this years dividend. At the same time, if the payout gets very high, say above 5, investors should ask whether management is withholding excess earnings, not paying enough cash to shareholders. Managers who raise their dividends are telling investors that the course of business over the coming 12 months or more will be stable. 3.0 Methodology and Analysis of Dividend Policy and Performance among 3 sector Firms: Technology, Consumer Product and Construction As requirement of assignment given, three sector which are mentioned above and five firms from each sector has been successfully identified and collected from Bursa Malaysia website. The tabulations of data will be presented in this report. 3.1 Firms of Technology sector  Company financial year revenue RM000 profit after tax RM000 dividend(sen) EPS(sen) 1 Mesiniaga Berhad 2009 263,896 8,557 19 11.46   2008 263,154 8,970 19 12.34 2 Unisem Msia Berhad 2009 1,036,309 60,745 2.5 11.92   2008 1,233,381 18,336 2.5 4.21 3 Kobay Technology Berhad 2009 2,921,581 1,428,534 2 2.47   2008 7,394,795 3,361,206 2 11.56 4 KESM Industries Berhad 2009 41,862 7,938 3    2008 55,132 20,099 3  5 Malaysian Pacific Industries Berhad 2009 1,150,630 -65,897 20 -20   2008 1,539,126 147,299 37 58 Figure 3.1: Financial performance of Technology sector in Bursa Malaysia for the year 2008 and 2009 Constant Nominal Dividends (Regular Dividends) This type of policy claims that a firm maintains a nominal amount (fixed ringgit dividend) of dividend irrespective of a firms level of income. This is also called a regular dividend, which is a level that the board of directors hopes to maintain in the future. However, regular dividend could be increased (decreased) if proven increases (decreases) in earnings are reported. This type of dividend is much sought by investors as this gives a consistent kind of income to shareholders hence reducing the uncertainty of their dividend income. Base on analysis of Technology sector in Bursa Malaysia shows in figure 3.1, it found that, majority of the company (4 out of 5) has a same type which is Constant Nominal Dividends policy. The amount of dividends (sen) in both years (2009 and 2008) are remained same, regardless of performanc e in revenue and Profit after tax on both years. Financial Performance against Dividend Policy. Base on analysis in figure 3.1, Malaysia Pacific Industries Berhad has turned lost in profit in a year 2009, but still capable to pay 20(sen) dividends, a little bit less if compare to (37)sen in 2008. In their Annual Report 2009 said that the financial year ended 30 June 2009 (FY 2009) had started with a strong performance in the first quarter. However, the subsequent two quarters experienced a sharp reduction in revenue, but this was followed by a gradual recovery in the last quarter. The volatile performance reflected continued uncertainties in the global economic conditions. Revenue for FY 2009 was RM1,151 million, representing a 25% decline from the previous financial year ended 30 June 2008 (FY 2008). Loss attributable to equity holders of the parent was at RM40 million, compared with a profit of RM112 million recorded in FY 2008. Reflecting the unfavourable business enviro nment, capital expenditure was significantly reduced to RM129 million from RM267 million. However, the Group continued to pay out a total dividend. The sudden and dramatic fall in revenue had caused the Group to focus on managing its cash. Capital investments were postponed with the Group spending RM129 million, the lowest for many years and compared with RM267 million for FY 2008. The Groups debt fell by RM48 million from FY 2008 and a dividend of 20 sen per share was declared for FY 2009. 3.2 Firms of Consumer Product sector  Company financial year revenue RM000 profit after tax RM000 dividend(sen) EPS(sen) 1 Panasonic Manufacturing (m) Berhad 2009 600,868 43,247 105 71   2008 562,490 48,478 115 80 2 Proton Holdings Berhad 2009 6,486.60 -301.8 5 -54.9   2008 5,621.60 184.6 33.6 3 Tan Chong Motor Holdings Berhad 2009 2,856,886 154,304 11 23.42   2008 3,195,826 245,721 10 36.9 4 UMW Holdings Berhad 2009 10,720,861 647,212 20 34.6   2008 12,769,581 955,813 29.8 52.3 5 KHIND Holdings Berhad 2009 183,601 8,061 10 20.12   2008 185,361 7,637 3.7 19.12 Figure 3.2: Financial performance of Consumer Product sector in Bursa Malaysia for the year 2008 and 2009 Financial Performance against Dividend Policy. Figure 3.2 illustrated that, Proton Holdings Berhad has turned lost in profit in a year 2009, but still capable to pay 5(sen) dividends, compare to none in 2008. In their Annual Report 2009 said, in view of the need to ensure that PROTON is viably strengthened and able to achieve long-term and sustainable growth, the Board of Directors are not recommending the declaration of any dividends for the financial year ended 31 March 2008. With improved profitability in the future, the Board expects to once again be able to recommend a suitable dividend payment. Thus, No dividend has been paid or declared by the Company. In 2009, the company paid Interim dividend of 5 sen per share less tax at 25%,it has been paid on 14 January 2009 even though the result of profit after tax has lost about -301.8 million. This is due to gain confidents to shareholder about better performance will achieved in the next coming financial year. Special Dividend Payout Policy The special dividend payout policy was implemented by PANASONIC. As a result of analysis in the financial year ended 31 March 2009, the Companys revenue of RM600.9 million increased by RM38.4 million or 6.8% compared with RM562.5 million recorded in the previous financial year. The combined entitys profit before taxation for the financial year was recorded at RM60.8 million. This was however, RM4.1 million or 6.3% lower than the previous financial years combined entitys profit before taxation of RM64.9 million mainly due to the gain from disposal of property amounting to RM3.5 million recognised in the previous financial year. With the prudent and steady cash flow management, the Company was able to maintain a solid cash position and strong Balance Sheet against the market turmoil. The Company continues to develop strong returns for its stakeholde rs, in particular, maximising shareholders wealth via dividend distribution. In a year 2008, The Board of Directors is pleased to recommend a final dividend of 35 sen per ordinary share of RM1.00 and a special dividend of 65 sen per ordinary share of RM1.00 less 25% income tax, payable on 22 September 2008. An interim tax-exempt dividend of 15 sen was paid on 25 January 2008. This brings to a total gross dividend of 115 sen per ordinary share of RM1.00 in respect of financial year ended 31 March 2008. In respect of the financial year ended 31 March 2009, the Board of Directors is pleased to recommend a final dividend of 35 sen per ordinary share and a special dividend of 55 sen per ordinary share less 25% income tax, payable on 18 September 2009. Together with an interim dividend of 15 sen per ordinary share which was paid on 20 January 2009, this brings to total gross dividends of 105 sen per ordinary share for the financial year ended 31 March 2009. 3.3 Firms of Construction sector  Company financial year revenue RM000 profit after tax RM000 dividend(sen) EPS(sen) 1 YTL CORPORATION BERHAD 2009 8,892,125 1,401,615 2.5 54.1   2008 6,549,860 1,376,487 25 51.54 2 Gamuda Berhad 2009 2,727,302 204,154 6 9.65   2008 2,403,660 338,928 18 16.27 3 IREKA Corporation Berhad 2009 12,584,923 252,651 10 0.05   2008 10,900,784 39,387,288 10 1.34 4 EKOVEST Berhad 2009 277,759 6,822 3.75 4.82   2008 441,992 16,757 3.75 11.83 5 Bina Goodyear Berhad 2009 333,764,272 -24,241,042 2.22 -51.9   2008 276,773,368 442,247 3.65 0.7 Figure 3.3: Financial performance of Construction sector in Bursa Malaysia for the year 2008 and 2009 Financial Performance affected Dividend Payment Base on figure 3.3, Gamuda Berhad will be representative of this statement analysis. According to the Annual Report 2009, the company claimed, to overcome the backdrop of a global economic meltdown, the group has managed to achieve a commendable financial performance in FY2009. Net profit of the group came in at RM193.7m, down 40% from the previous year, despite revenue gaining 13% to RM2.7 billion. Both the construction and property development divisions recorded weaker performances as a result of the challenging economic condition. For the most part of FY2009, the group switched to a defensive strategy which meant that efforts were focussed on surviving the economic meltdown. This entailed taking drastic measures to curb expenses, consolidate operations, streamline capex programs and defer expansion plans. Managing cash flows became a primary focus, and financial prudence necessitated a drastic cut in dividend payments. As such, the group paid out a total of 8 sen a share in FY2009 compared with 25 sen a share the previous year. Thus, the dividend payment has been dropped to 6 sen in FY2009 from 18 sen in FY2008. Figure 3.4: Dividend payment method of interim dividend of Gamuda Berhad. (www.klse.com.my) Cash Dividend Payments and Payment Mechanisms With referring at figure 3.4, the method of dividend payment is called Interim dividend which means the company paid dividend in 2 times in a year. The cash dividend is paid on the payment date to all shareholders of record on the record date. To be a shareholder of record, and thus receive a dividend, one must have purchased the stock before the ex-dividend date. Instead of cash dividends, many companies have automatic reinvestment plans in which additional shares of stock are purchased. Thus, the business keeps the cash and shares are given t o shareholders. Dividend  Declaration Most firms in the United States pay  dividends  quarterly. After making the  dividend  decision during a board meeting, a firms board of directors releases information on the size of the  dividend  on the  announcement date. Further, the announcement states that the cash payment will be made to shareholders of record as of a specific  record date. However, because of delays in the share transfer process, the stock goes ex-dividend two business days before the record date, or the  ex-dividend  date. After the stock goes ex-dividend, the shares trade  without  the rights to the forthcoming  quarterly  dividend. The  dividend  checks are mailed to shareholders of record on the  payment date, which is about two weeks after the record date.  Figure HYPERLINK https://library.books24x7.com/book/id_3455/viewer.asp?bo okid=3455chunkid=219644075#ch01fig043.5  below shows the time line of the period from the board meeting through the mailing of the  dividend  checks.( Ronald C. Lease, 2000)  Figure 3.5:  Dividend  Time Line. (Ronald C. Lease, 2000) 4.0 Conclusion From the research analysis finding, it found that the most of Technology sector firms practising a Constant Nominal Dividends Policy whereas the others sector are inconsistence and heavily relied on the company financial performance. If performance better, then the dividend better. Dividend policy  can  have an impact on shareholder wealth due of various market imperfections. Bear in mind, dividend arent guaranteed, a company can decide to reduce or eliminate its dividend in time of financial hardship.