The Impact of Interest Rate on Commercial Bank and Microfinance - Free Essay Example

Sample details Pages: 19 Words: 5772 Downloads: 2 Date added: 2017/06/26 Category Finance Essay Type Research paper Did you like this example? The research includes the analyzing and understanding of banking sector, interest rates and their impacts. According to Oxford Advanced Learners Dictionary, interest is the extra money that you pay back when you borrow money or that you receive when you invest money. Interest is basically the charge for the borrowing of money, generally conveyed as an annual percentage rate. Don’t waste time! Our writers will create an original "The Impact of Interest Rate on Commercial Bank and Microfinance" essay for you Create order According to ACCION (Americans for Community Co-operation in Other Nations), Interest rate is the amount paid by a borrower to a lender in exchange for the use of the lenders money for a certain period of time. Bank interest is on both as a charge for money that is loaned to borrowers and an amount paid for attracting deposits funds. Interest that is due on consumer loans must be calculated in Annual Percentage Rate (APR). Interest on loans may include annual, late payment and over limit charges. Interest rate is ordinarily conveyed as a percentage per annum which is charged on money borrowed or lent. The interest rate may be fixed or variable. The name bank derives from the Italian word banco which means desk/bench/counter. Bank accepts deposits and makes loans and derives a profit from the difference in the interest paid to lenders and charged to borrowers. Banks as well make profit from fee charged for services. The three major classes of banks include central banks, comm ercial banks, and investment banks. Banks also enable customer payments thru other payment methods such as telegraphic transfer, EFTPOS, and ATM. Commercial bank is a type of bank and a type of financial intermediary. A commercial banking is also called business bank which provides saving accounts, money market accounts, checking accounts and that accepts time deposits. Commercial banks also supply foreign exchange, international banking and trade financing. Commercial banks provide different types of loans which include secured loans, unsecured loans, and mortgage loans. A commercial bank as a financial institution provides a variety of services that are helpful for business and general purpose. Now-a-days commercial banks are using microfinance as a part of the institution because of its benefits and the market share its gaining. Microfinance refers to the provision of financial services to low income individuals/clients, also including the self employed. Microfinance loans are either interest free or they carry interest which doesnt compound. Furthermore they offer flexible repayment plans. Microfinance by its name clearly is about more than just credit, otherwise we should always call it microcredit. In developing world, microfinance is most common and it started in the 1970s in Bangladesh. The World Bank estimates that more than 500 million people have directly or indirectly benefited from microfinance associated operations. Microfinance provides different varieties of financial services in the developing world. People are moving to microfinance institutions day by day because of their excellent services and repayment future plans. Microfinance identified the problems relating to loans and needs of individuals or groups of a small scale. Microfinance is developing day by day in this developing world and now it is so common that everyone know about microfinance and its benefits. Microfinance has made itself very useful and common for low income clien ts specially the poor. Today, microfinance is a dynamic sector which offers loans, sells insurance and provides remittance and savings services to about more than one hundred million of the poor people. Microfinance institutions have increased in multiplicity and complexity in income levels of customer which they serve. Commercial banks are facing competition increasingly in their retail markets which is causing the margin conflict. It also leads forward thinking banks to discover new possible markets which can generate the growth in numbers of clients with acceptable profit margins. As more and more commercial banks become fascinated by the thought of entering the microfinance market, the lessons learned from some of the more experienced players become useful in the decision making process. Some commercial banks are entering in the microfinance market due to growth opportunities and sustainable profit and commercial banks are investigating and inquiring for themselves. Many comm ercial banks have already identified the business opportunities of microfinance. Commercial banks have now ventured into microfinance in many countries where microfinance is at different stages of development. Some institutions normally meet only a small portion of microcredit demand in the regions they serve. Some microfinance institutions (MFIs) have been able to overcome this situation by gradually turning themselves into commercial banks specialized in microfinance. Banks and financial institutions have been entering the microfinance market in increasing numbers, ensuing in a growing number of formal regulated institutions partially or totally moving into microfinance. The central bank also called monetary authority or reserve bank as well plays an important role. The central bank has been given the authorization to conserve price stability as its primary objective and has been granted liberty from government to make sure that short term Political considerations do not interf ere with attaining this objective. Central bank charges interest on the loans made to borrowers, primarily the government and to other commercial banks as it acts as a lender of last resort to the banking sector. Its main responsibilities as well include controlling money supply, subsidized loan interest rates and implementing monetary policy. According to Henry C.K. Liu, The rate at which the central bank lends money can indeed be chosen at will by the central bank; this is the rate that makes the financial headlines. Central banks can influence market interest rates and can set rate to a fixed number. The central bank can simply announce its intention to raise or lower the relevant interest rate. The structure of interest rates most frequent or common in an economy is of vital importance for economic decision making. The interest rate structure of the economy of Pakistan primarily consists of rates on banks deposits and lending schemes, yields on government securities such a s treasury bills, PIBs and profit rates on national savings schemes, interest rates charged and offered by non-bank financial institutions (NBFIs) and rates of return on term finance certificates (TFCs). Inflation is a general increase in prices as it is when the prices of most goods and services continue to crawl upward. Basically, inflation is a continuous decline in purchasing power of money and when inflation rate increases, governments or companies that issue debt instruments need to attract investors with a high interest rate. The central banks use interest rate to control the supply of money and, accordingly, the rate of inflation. When interest rate increases then the borrowings become more expensive. Monetary policy is also an important tool. Monetary policy is the procedure by which the central bank or monetary authority of a country controls the money supply, availability of money, and rate of interest to achieve a set of objectives oriented towards the growth and c onstancy of the economy. Monetary policy is primarily associated with interest rate and credit. In some countries, the monetary authority may be able to authorize some specific interest rates on savings accounts, loans and other financial assets. A central bank can contract or decrease, under its control, the supply of money by increasing interest rate. Monetary policy is contrasted with fiscal policy which pertains to government borrowing, spending and taxation. Monetary policy can be of two types as expansionary policy and contractionary policy. Expansionary policy also known as easy monetary policy, used to combat unemployment by lowering interest rates and contractionary policy also known as tight monetary policy, involves raising interest rates to combat inflation. Low interest rates compel banks to compete for loans therefore banks are able to offer attractive interest rates which appeal to customers to beat out the competition. At the same time that leads to new customers and the customer can do comparison for ensuring that the bank is offering him the best rate. An economy consists of the economic system of a country which include capital, labor and land resources that participate in production, distribution and consumption of goods/services. When economy is growing then companies become profitable unemployment is low as consumers are spending money. Increasing interest rates result in slowing the economy because increasing interest rate means increasing borrowing costs for businesses and individuals which mean consumers have less money for spending. When the economy is slowing, the central bank will decrease short term rates as decreasing short term rates makes the borrowing less expensive and therefore businesses and individuals can spend and buy more which resulting in speeding up the economy. Purpose of study: The research is conducted in order to analyze the factors impacting interest rate regarding commercial bank and microfinance. Fa ctors determining interest rate changes have a direct affect on consumer, banking sector and country therefore to analyze and understand the factors is a top priority. This research can also help in comparison and evaluation of interest rates and borrowing/lending of money for good. Literature Review Banks try to compete with other banks for loans and deposits as Kwangwoo Park and George Pennacchi (January, 2009) emphasize that small single market banks compete with large multi market banks. As large multi market banks are assumed to set retail interest rates across markets therefore loan competition increases and deposit competition decreases in concentrated markets. In context, Isil Erel (May, 2009) concur that bank competition influence banks to reduce the increasing ability of banks lending rates even when money market rates move up therefore the bank interest rates and the changes over time expect to depend on bank competition. Nishant Dass and Massimo Massa (2009) state that banks try to build strong relationship with firms by acquiring information about those firms which they lend to for improving borrowers corporate governance. With this procedure the firm value is affected and in financial markets the standard implications are developed. The fixed interest rate paid to a bank by private firms for industrial investment financing has an essential importance in the economy. When there is stronger loan market competition then larger bank spreads on current account and time deposits and the banks that are under competition they compensate for lowering their deposit rates. In context with that, banks borrow for increasing their activities, whether for lending or for investing, and for this service the interest is paid to clients. Both the levels of bank interest rates and their changes over time are expected to depend on the degree of competition. In concentrated markets, retail lending rates are substantially higher, while deposits rates are lower. R egarding the effect of competition on the way banks adjust their lending and deposit rates. Hannan and Berger (1991) find that deposit rates are significantly more rigid in concentrated markets. Especially in periods of rising monetary policy rates, banks in more consolidated markets tend not to raise their deposit rates. Emilia Bonaccorsi di Patti and Giovanni DellAriccia (2004) concur that low interest rates also create a sense of urgency as if a consumer is saving for purchasing something, like a house, a low interest rate will play an intricate role in determining when he takes that financial plunge. This will cause the economy to expand because the consumer has more disposable income and more confidence when spending money. Iris Biefang-Frisancho Mariscal and Peter Howells (2002) state that the role of central bank is reduced to set short term interest rates as central bank indicates commercial banks to keep the price that will make liquidity available as reserve to the bank ing system. Therefore according to market rates the price increases and decreases. In context with that, in the form of reserves or currency, banks are required for having certain amount of total deposits as percentage which are liabilities of central bank, and hence fully guaranteed. If the monetary policy makers desire to reduce supply of money then they will raise interest rate as making it attractive for depositing funds and reducing borrowings from central bank and if monetary policy makers desire to raise the supply of money then they will raise interest rate as making it attractive for borrowing and spending money. Some banks offer funds on basis of first come first serve especially commercial banks. If bank doesnt have sufficient liquidity as according to customer demands, it can borrow the additional funds from the central bank. Central bank doesnt favor any particular bank. Central banks may hold reserves of commercial banks based on ratio of commercial bank deposits. All commercial banks may be required to keep a deposit/reserve ratio as it is another means of controlling the supply of money. In context, Graeme Guthrie and Julian Wright (2004) concur that the central bank implements monetary policy by targeting short term interest rates to stabilize the money supply in the country. The target rate can be changed when preferred rate and current target rate reach to critical level. According to Jordi Gali, J. David Lopez-Salido and Javier Valles (2004), the discount rate keeps the banks from continuous borrowing which would disorder the money supply in the market and monetary policy of the central bank. Commercial banks will be mobilizing more money in system by borrowing more than necessary. The use of discount rate can be limited by making it unattractive while using frequently. Furthermore, David E. Rapach and Mark E. Wohar (October, 2005) indicate that inflation rates and real interest rates often together increase and decrease as government chang es. Therefore the change in monetary policy is an important source of changing in real interest rates. In context with that, monetary policy affects nominal interest rate only that is unadjusted for inflation. Nominal interest rate is the combination of real interest rate and inflation premium. Monetary policy operates by influencing the price of money, i.e. the cost of borrowing and the income from saving. Isil Erel (2009) emphasizes that usually high inflation leads to high interest rates. The interest rate for borrowing money will increase when demand of money is high and when interest rate changes then the borrowers feelings also changes because borrowers dont like quick shifts in interest rates and inflation when shifts are not in their favor particularly. In context, inflation is caused by too much money chasing too few goods or too much demand for too little supply, which causes prices to increase. When the inflation rate is high, the interest rates are more likely to rise . It happens because the lenders will be demanding the high interest rates for compensation of the decreasing in purchasing power of money which will be repaid in future. Patrick Gagliardini, Paolo Porchia, and Fabio Trojani (October, 2009) state that the purchasing power of money loses during inflationary periods and with that each unit of currency is affected. If more money is available than needed to accommodate normal growth then consumers and businesses try to purchase more goods and services to produce with current resources causing upward pressure on prices and the market does not have time to adjust other prices downward in response therefore a short term increase in overall prices takes place. Changes in inflation rate cause corresponding changes in interest rates as inflation affects the value of lenders money therefore the interest rate increases to compensate the loss. According to David E. Rapach and Mark E. Wohar (2005), for controlling inflation, monetary policy has b een chosen as the primary tool as its goal is to reduce the inflation. Inflation changes unpredictably and it can interrupt the economy which cause uncertainty in financial decisions. James D. Hamilton and Ã’scar Jordà   (October, 2002) emphasize that level of federal funds rate is determined by the Federal Reserve which is one of the most anticipated and publicized economical indicator in financial world and it targets only rates in the federal funds market. In context, if Federal Reserve wants to decrease interest rates then it makes loans to banks (short term) in the Federal Funds market then the banks lend that money to investors with a profit. This lending process creates an effect of increasing the money which is in circulation. If the Fed increases the federal funds rate, it becomes  more expensive for banks to borrow money from the Fed. The Fed will lower short term rates when the economy is slowing as lowering rates makes it less expensive to borrow money and con sumers and businesses can afford to buy more products and services. Graeme Guthrie and Julian Wright (2004) concur that the central bank, which is charged for maintaining the constancy and stability of the financial system, increases or decreases the short term rates in an attempt to maintain that stability. In response for economic ups and downs, the central bank takes these actions on a regular basis so that the country goes through on a pretty routine basis. If central bank changes interest rates at which banks borrow money then those changes passed on to the economy. In perspective, if the central bank decreases the rate then banks can borrow money for less and then the banks can decrease the interest rates they charge to individual borrowers as making loans more competitive and attractive. If an individual was thinking about buying something and the interest rates suddenly decreases then he/she  might decide for taking out a loan and spend. As consumers spend more, th e economy grows more. Antonio Argandoà ±a (2003) and Alexander Konovalov (2005) emphasize that Federal Reserve is central bank of the United States of America and is accountable for determining interest rates. The function of central bank is to create the financial security and stability for the economy. Whether the rate is high or low, banks have to borrow from the central bank at the set interest rate. The banks are capable to pass some of the savings on to customers when interest rates are low and the customers will be paying more money for borrowing the money they need when interest rates are high. Borrowers dont like to borrow money when interest rates are high which leads to economic decline. In context, interest rate frequently decreases during the slow economy which makes borrowings less expensive. The result of this interest rate change promote and encourage businesses and individuals to spend more money by borrowing more loans inducing economic growth but if economy grows too quickly then it will lead to economic decline and for that reason interest rate frequently increase, discouraging individuals and businesses as making borrowings more expensive which resulting in less borrowing and less spending. Daniel Horgos and Klaus W. Zimmermann (2009) state that for a central bank, changing interest rate is the way to help economy to move in direction of continuous economic growth. When central bank changes the interest rate, basically it doesnt affect all consumers. Only those with credit cards and variable rate loans are affected. Interest rate changes, however, do affect the whole economy. In context, the affect of raising interest rate is that the banks increase the interest rates they charge their customers for borrowing money and through increasing in mortgage interest rates and credit card especially when they carry variable rate, individuals are affected. It affects the decreasing in the amount of money that consumers can spend. Therefore people c an spend less money and that affects businesses as they have to pay bills and when bills are more expensive then they will be left with less amount of disposable income. Juvà ©nal Ndayiragije (1999) emphasize that when Federal Reserve increases the interest rate, the stock market doesnt have an instant and immediate affect. The stock market inclines when Federal Reserve decreases the interest rate and that is an indication to investors that companies will be increasing the production and creating more jobs and that people will buy goods and services more than before. In context, basically the raising interest rates causes the price of stocks to fall as the investors, in that case, will be purchasing fewer stocks. Soon, prices fall enough and encouraging the investors to start purchasing again which raises the stock prices. The stock demand increases when interest rate decreases, causing the price of securities to raise and it leads to economic growth. Amit Bubna and Bhagwan Chowdhr y (2010) concur that the banks profit from difference between interest it charges by lending and interest that bank pays for the deposits. If bank is not lending then consumer is not spending thus the economy stagnates and economy cant survive stagnating therefore central bank has to make some adjustments for economy to start and move in right direction. Furthermore, when people are having high disposable income then it means that people like to spend more than to save. METHODOLOGY As this research is related to the study of impacts of interest rates therefore Survey based research using Qualitative method was conducted. In sampling technique, Stratified Random Sampling Method (Probabilistic Sampling) was used. The banks are divided into two groups: Commercial Bank and Microfinance, which include 06 (60%) Commercial Banks and 04 (40%) Microfinance. 50 Branches of 10 different randomly selected Banks (05 Branches each) of Karachi have been selected randomly. The selected Banks and their Branches are as follows: Bank AlFalah: MCB: Standard Chartered: I. Chundrigar Road North Nazimabad Nazimabad Branch Clifton PECHS SITE Gulshan-e-Iqbal Saddar Abdullah Haroon Road PECHS Gulshan-e-Iqbal Baloch Colony Shahrah-e-Faisal Hassan Square Safoorah Goth UBL Bank: Citi Bank: Askari Bank: Corporate I. I. Chundrigar Road Saima Trade Tower Baba-e-Urdu Road World Trade Centre Gulshan-e-Iqbal City Shahrah-e-Faisal SMCHS M. M. Khana Khyaban-e-Shahbaz Clifton Bunder Road DHA Phase II Lal Masjid Pak Oman Microfinance: Rozgar Microfinance: Tameer Microfinance: Qayyumabad Clifton Malir Kemari Iqra SITE Orangi Town Taiser Town North Karachi PECHS Dalmia KCHS Mehmoodabad Shahrah-e-Qaideen Dak Khana Network Microfinance Bank: Shahrah-e-Faisal Gul Tower FTC Shah Faisal Colony Orangi Town The research includes both primary and secondary data. The primary data was collected through 50 questionnaires from 50 Branches, filled by Branch staff members. The questionnaire, comprising a total of 15 questions was used and it includes questions relating to commercial banking and microfinance with relation to interest rates, using an interval five-point Likert scale ranging from (1) strongly disagree to (5) strongly agree. The secondary data was collected through Journals, Research Articles, Books, Thesis, Published Reports, News Articles, Websites, etc. Limitations of the Research: Research data is not 100% accurate. Our research has certain limitations which include: Lack of experience in survey based research, which was overcome with the help of keeping our teachers advice as well as the textbooks. Another limitation was the availability and willingness of the respondents because people find no time out of their busy schedule. HYPOTHESIS: Two hypothesis were formulated in order with our objectives. There was one hypothesis for each segment we would consider in our sam ple which are as under. Impact of interest rate on commercial bank is high. Impact of interest rate on microfinance is high. DATA ANALYSIS: You prefer variable rate instead of fixed rate on deposit, lending, and borrowing. Table 01 Particular Commercial Bank Microfinance (1) Strongly Disagree 7 6 (2) Disagree 0 0 (3) Neutral 18 12 (4) Agree 1 2 (5) Strongly Agree 4 0 Total 30 20 Table: 01: The focus of this question was to determine the rate banks prefer, fixed or variable rate, for borrowing and lending. This question has great importance as different banks prefer different rates. As visible from the results, interest rate fluctuates after a certain period of time therefore most respondents (60%) prefer neutral in commercial bank and microfinance as interest rates may be fixed or variable. There is a decrease in rate of interest due to bank competition. Table 02 Particular Commercial Bank Microfinance (1) Strongly Disagree 5 5 (2) Disagree 14 15 (3) Neutral 11 0 (4) Agree 0 0 (5) Strongly Agree 0 0 Total 30 20 Table: 02: This question was asked to find out the perception about interest rate changes due to bank competition. The results show that the most preference is given with 47% of respondents from commercial bank and 75% of respondents from microfinance as they disagree that due to bank competition there is a decrease in rate of interest. You prefer variable rate when bank is under competition. Table 03 Particular Commercial Bank Microfinance (1)Strongly Disagree 0 0 (2) Disagree 0 0 (3) Neutral 9 6 (4) Agree 21 10 (5) Strongly Agree 0 4 Total 30 20 Table: 03: This question was asked to determine the rate banks prefer when they are under competition. The result shows that 70% respondents of commercial bank agree and 50% respondents agree from microfinance to prefer variable rate when bank is under competition. When the interest rate is low, the borrowing becomes less expensive and at that time people try to borrow and spend more therefore banks offer variable rate to attract more customers and compete each other. The high interest rate creates problem in paying against borrowings. Table 04 Particular Commercial Bank Microfinance (1) Strongly Disagree 0 0 (2) Disagree 0 0 (3) Neutral 7 0 (4) Agree 13 10 (5) Strongly Agree 10 10 Total 30 20 Table: 04: This question was asked to determine that if high interest rates creating problem against borrowings. The results show that 43% respondents of commercial bank and 50% respondents of microfinance agree as when the interest rates are high, the borrowings become more expensive. There is a decrease in bank lending due to high interest rate. Table 05 Particular Commercial Bank Microfinance (1) Strongly Disagree 0 0 (2) Disagree 0 0 (3) Neutral 0 0 (4) Agree 8 9 (5) Strongly Agree 22 11 Total 30 20 Table: 05: The focus of this question was to determine that if bank lending is affected due to high interest rate. The result shows that 73% respondents of commercial bank and 55% respondents of microfinance strongly agree as rising interest rate means rising borrowing cost which has the affect of lowering the amount of money that consumer can spend as consumer stops borrowing from banks because it becomes more expensive. You prefer high interest rate on repayment of loans (including borrowing, lending, and deposit). Table 06 Particular Commercial Bank Microfinance (1) Strongly Disagree 0 0 (2) Disagree 19 12 (3) Neutral 11 8 (4) Agree 0 0 (5) Strongly Agree 0 0 Total 30 20 Table: 06: The focus of this question was to determine that if banks prefer high interest rate on repayment of loans. The results show that 63% respondents of commercial bank and 60% respondents of microfinance disagree that they dont prefer high interest rate on repayment of loans as high interest rate makes borrowing more expensive. You prefer borrowing from Central Bank instead of Public Deposits. Table 07 Particular Commercial Bank Microfinance (1) Strongly Disagree 18 14 (2) Disagree 3 2 (3) Neutral 7 4 (4) Agree 2 0 (5) Strongly Agree 0 0 Total 30 20 Table: 07: The focus of this question was to determine that if banks prefer central bank instead of public deposits for funds. The result shows that 60% respondents of commercial bank and 70% respondents of microfinance strongly disagree as the more customers bank will have the more market share it will capture. Monetary policy stabilizes the interest rate in the economy. Table 08 Particular Commercial Bank Microfinance (1) Strongly Disagree 0 0 (2) Disagree 0 0 (3) Neutral 0 0 (4) Agree 22 13 (5) Strongly Agree 8 7 Total 30 20 Table: 08: This question was asked to analyze that monetary policy can stabilize the interest rate to make economy better. The result shows that 73% respondents of commercial bank and 65% respondents of microfinance agree as the central bank implements monetary policy by targeting interest rate to stabilize the supply of money in the country. High operating cost creates problem in lending. Table 09 Particular Commercial Bank Microfinance (1) Strongly Disagree 0 0 (2) Disagree 17 0 (3) Neutral 13 0 (4) Agree 0 17 (5) Strongly Agree 0 3 Total 30 20 Table: 09: This question was asked to determine that if operating cost creates problem in lending as different banks have different operating costs. The results show that 57% respondents of commercial bank disagree and 85% respondents of microfinance agree as commercial banks offer loans of large size and microfinance offer loans of small size to many which increases the operating cost. The inflation creates problem when borrowing, lending, and deposit. Table 10 Particular Commercial Bank Microfinance (1) Strongly Disagree 0 0 (2) Disagree 0 0 (3) Neutral 0 0 (4) Agree 18 15 (5) Strongly Agree 12 5 Total 30 20 Table: 10: This question was asked to analyze about inflation affecting borrowings, lending, and deposit. As visible from the results 60% respondents from commercial bank and 75% respondents of microfinance agree that inflation creates problem while borrowing, lending, and depositing. When interest rates change, the borrowers feelings also change. When inflation rate is high then more interest rate will be high as lenders demand high interest rate for compensating the decrease in purchasing power of money which will be paid back in the future. Lending by banks is decreased due to high inflation. Table 11 Particular Commercial Bank Microfinance (1) Strongly Disagree 0 0 (2) Disagree 23 0 (3) Neutral 7 20 (4) Agree 0 0 (5) Strongly Agree 0 0 Total 30 20 Table: 11: This question was asked to determine if bank lending decrease due to inflation. The result shows that 77% respondents of commercial bank disagree and 100% respondents of microfinance are neutral as high inflation leads to high interest rate and when interest rates are high, borrowings become more expensive and bank lending decreases. Unemployment is an important cause in decreasing the lending by commercial/microfinance banks. Table 12 Particular Commercial Bank Microfinance (1) Strongly Disagree 0 0 (2) Disagree 10 4 (3) Neutral 20 16 (4) Agree 0 0 (5) Strongly Agree 0 0 Total 30 20 Table: 12: This question was asked to determine that commercial bank and microfinance lending decreases due to unemployment. The results show that 67% respondents of commercial banks and 80% respondents of microfinance are neutral as when interest rates are high, banks charge more from businesses they lend. Moreover, consumers dont borrow and spend as it becomes more expensive. When the business reaches to a critical level as expenses are high and profits are less, it cuts costs. Cutting costs usually begins by seeking cheaper suppliers. After that, if need remains then business lay off employees and resulting in increase in unemployment rate. Businesses lay off more employees as consumers spend less on goods and services and until the rates are reduced, the cycle continu es. Due to taxes, you prefer lending at high interest rate. Table 13 Particular Commercial Bank Microfinance (1) Strongly Disagree 0 0 (2) Disagree 18 0 (3) Neutral 12 9 (4) Agree 0 11 (5) Strongly Agree 0 0 Total 30 20 Table: 13: This question was asked to determine the preference level of interest rate due to taxes. The result shows that 60% respondents of commercial bank disagree and 55% respondents of microfinance agree as after deducting operating costs and taxes the income remains low therefore banks insist to increase the lending interest rate. Poverty is a negative element for the economy and the meanwhile it affects the lending by commercial/microfinance banks. Table 14 Particular Commercial Bank Microfinance (1) Strongly Disagree 0 7 (2) Disagree 0 13 (3) Neutral 14 0 (4) Agree 16 0 (5) Strongly Agree 0 0 Total 30 20 Table: 14: This question was asked to determine if poverty is affecting bank lending and economy. The result shows that 53% respondents of commercial bank agree and 65% respondents of microfinance disagree as poverty reduction and alleviation is a result of increasing economic growth as increasing production levels including advanced industrial technology creates additional wealth available for people who were too poor to afford them. When poverty rate is high then commercial banks cannot lend to those who cannot afford to pay the cost and that it will be risky. Microfinance provides loans to poor which are interest free or they may carry interest which doesnt compound. The economy is affected due to changes in interest rates. Table 15 Particular Commercial Bank Microfinance (1) Strongly Disagree 0 0 (2) Disagree 0 0 (3) Neutral 0 0 (4) Agree 18 15 (5) Strongly Agree 12 5 Total 30 20 Table: 15: The focus of this question is to analyze the economy and its affects due to changes in interest rate. The result shows that 60% respondents of commercial bank and 75% respondents of microfinance agree as when the central bank changes the rates at which banks borrow, those changes move on to the rest of the economy. If the central bank decreases the interest rate, banks can borrow for less and can make loans attractive by charging lower interest rate to borrowers. If the consumer will spend more then the economy will grow more. Testing of Hypothesis: Null Hypothesis: Ho:  µ1 =  µ2 or  µ1  µ2 = 0 Alternative Hypothesis: H1:  µ1 ÃÆ' ¢Ãƒ ¢Ã¢â€š ¬Ã‚ °Ãƒâ€šÃ‚    µ2 or  µ1  µ2 ÃÆ' ¢Ãƒ ¢Ã¢â€š ¬Ã‚ °Ãƒâ€šÃ‚   0 Level of Significance: ÃÆ'Ã… ½Ãƒâ€šÃ‚ ± = 0.01 Test Statistic: Since ÃÆ' Ãƒâ€ Ã¢â‚¬â„¢1 and ÃÆ' Ãƒâ€ Ã¢â‚¬â„¢2 are unknown (assumed ÃÆ' Ãƒâ€ Ã¢â‚¬â„¢1 = ÃÆ' Ãƒâ€ Ã¢â‚¬â„¢2) and n1 = 30 and n2 = 30 then the appropriate test statistic would be t Statistic Where t = d.f. = n1 + n2 2 Where Sp = Since Then Sp = = = = 1.03 Then t = = = = 0.24 Therefore t Cal = 0.24 Critical Region: The C.R. at ÃÆ'Ã… ½Ãƒâ€šÃ‚ ± = 0.01 with d.f. n1 + n2 2 = 30 + 20 2 = 48 is t t 0.005(48) = 2.576 and t t 0.005(48) = -2.576 Conclusion: Since calculated value of t falls in acceptance region, therefore we accept Ho. OR Since | ÃÆ'Ã… ½- Cal | = 0.23 and | ÃÆ'Ã… ½- Tab | = 2.576 and Since | ÃÆ'Ã… ½- Cal | | ÃÆ'Ã… ½- Tab |, we accept Ho and conclude that the samples do not provide sufficient evidence at ÃÆ'Ã… ½Ãƒâ€šÃ‚ ± = 0.01 that a difference does not exist between the impact of interest rate on commercial bank and microfinance. Conclusion Interest rate impacts a number of factors including inflation, bank competition, economy, etc. which has a direct affect on consumers, banking system and country. Microfinance interest rates are usually higher than commercial bank interest rates as microfinance provides small amount of loans to many. Commercial banks have made microfinancing activities as a part of their institution and microfinance also providing commercial banking activities therefore the difference does not exist between commercial bank and microfinance regarding impacts of interest rates . Interest rate changes are sometimes profitable for financial institutions and sometimes for consumers. Central bank plays an important role in stabilizing interest rate and providing funds to commercial banks and microfinance banks. Investments in banks have less rate of return than other means but it is not risky as it is assured. According to results, we conclude that a difference does not exist between the impact of interest rate on commercial bank and microfinance. REFERENCES Park, Kwangwoo and Pennacchi, George (2009), Harming Depositors and Helping Borrowers: The Disparate Impact of Bank Consolidation, The Review of Financial Studies, pp. 1-40 Argandoà ±a, Antonio (2003), The New Economy: Ethical Issues The New Economy: Ethical Issues, Journal of Business Ethics, Vol. 44, No. 1, pp. 3-22 Horgos, Daniel and Zimmermann, Klaus W. (2009), Interest Groups and Economic Performance: Some New Evidence Interest Groups and Economic Performance: Some New Evidence, Public C hoice, Vol. 138, No. 3/4, pp.301-305 Bubna, Amit and Chowdhry, Bhagwan (2010), Franchising Microfinance, Review of Finance, Vol. 14, No. 3, pp. 451-476 Gagliardini, Patrick el (2009), Ambiguity Aversion and the Term Structure of Interest Rates, The Review of Financial Studies, Vol. 22, No. 10, pp. 4157-4188 Dass, Nishant and Massa, Massimo (2009), The Impact of a Strong Bank-Firm Relationship on the Borrowing Firm, The Review of Financial Studies, doi:10.1093/rfs/hhp074 Hannan, Timothy H. and Berger, Allen N. (1991), The Rigidity of Prices: Evidence from the Banking Industry, The American Economic Review, Vol. 81, No. 4, pp. 938-945 Ndayiragije, Juvà ©nal (1999), Checking Economy, Linguistic Inquiry, Vol. 30, No. 3, pp. 399-444 Gali, Jordi el (2004), Rule-of-Thumb Consumers and the Design of Interest Rate Rules, Journal of Money, Credit and Banking, Vol. 36, No. 4, pp. 739-763 Hamilton, James D. and Jordà  , Ã’scar (2002), A Model of the Federal Funds Rat e Target, The Journal of Political Economy, Vol. 110, No. 5, pp. 1135-1167 Patti, Emilia Bonaccorsi di and DellAriccia, Giovanni (2004), Bank Competition and Firm Creation, Journal of Money, Credit and Banking, Vol. 36, No. 2, pp. 225-251 Mariscal, Iris Biefang-Frisancho and Howells, Peter (2002), Central Banks and Market Interest Rates, Journal of Post Keynesian Economics, Vol. 24, No. 4, pp. 569-585 Rapach, David E. and Wohar, Mark E. (2005), Regime Changes in International Real Interest Rates: Are They a Monetary Phenomenon?, Journal of Money, Credit and Banking, Vol. 37, No. 5, pp. 887-906 Konovalov, Alexander (2005), The Core of an Economy with Satiation, Economic Theory, Vol. 25, No.3, pp. 711-719 Erel, Isil (2009), The Effect of Bank Mergers on Loan Prices: Evidence from the United States, The Review of Financial Studies, doi:10.1093/rfs/hhp034 Guthrie, Graeme and Wright, Julian (2004), The Optimal Design of Interest Rate Target Changes, Journal of Money, Cr edit and Banking, Vol. 36, No. 1, pp. 115-137

Essay on The Debate on Abortion - 1316 Words

The Debate on Abortion Part A Abortion is the premature expulsion of the foetus from the womb. You need to perform an operation to perform this. Abortion is now legal if two doctors agree on either of the following:  · That continuing the pregnancy means that there is a risk to the womans health. Or that of her existing children greater than if the pregnancy was terminated, allowing up to 24 weeks of pregnancy  · Or that continuing the pregnancy would involve severe damage to the womans mental or physical health greater than if the pregnancy was terminated. Or there is a strong risk of severe handicap in the expected child. Or the womans life is at risk if the pregnancy continues†¦show more content†¦They also believe an abortion could be justifiable if there were a risk to the physical or mental health of the mother. They also believe that if the mother were to give birth to a handicapped child abortion would be right. Or if the pregnancy was the result of rape. The organization Christians for free choice believe that the matter should be left to a womans own conscience; conscience is seen as a guide from God as to what action to take. The decision to continue a pregnancy should not be forced on a woman. People who support abortion, such as the Abortion Reform Group support the following views: * A woman should have the right to choose what happens to her body. * If it becomes more difficult to get legalized abortion there would be an increase in the number of illegal abortions. * It is wrong to bring unwanted children into the world. * Unwanted children may suffer rejection and become problems in society. * Abortion is not murder as it destroys only a collection of cells. Which cannot survive outside the womb before the 24th week of the pregnancy Organizations such as Save The Unborn Child (Life) support the following views: * The Unborn child is alive from the moment of conception and has the right to live * An abortion is infanticide. * If abortion easily obtained it would beShow MoreRelatedThe Debate On Abortion And Abortion1063 Words   |  5 Pagesstand on abortion. By definition an abortion is the termination of a pregnancy and the expulsion of pregnancy tissue, including embryo, fetus, placenta, and membranes (Wicclair, Gosman 2005). In the recent years the debate on abortion has shifted to a different viewpoint that has reopened the conversation of abortion and has generated a healthy following for abortion control. The premise of abortion control is to implement community outreach programs that will help reduce the number of abortions. I feelRead MoreThe Debate On Abortion And Abortion1448 Words   |  6 PagesAbortion. This word leaves most people feeling uneasy after just saying it out loud. The discussion of abortion is continuously left open-ended with millions of opinions, arguments, and questions. Abortions occur every single day leaving potential fathers devastated or thrilled, leaving friends and families broken and distraught or in contrast, proud. More importantly, leaving the potential mother uncertain and even destroyed. But with abortion in mind, what is considered wrong and what is consideredRead MoreThe Debate On Abortion And Abortion1490 Words   |  6 Pagescontroversial issues floating around conversation. One that always catches my ear is the debate on abortion. Growing up in a republican household, and catholic for that matter, it was obvious that â€Å"pro-life† would be imprinted into my head. My whole family, not just my parents, are against abortion. Also going to church every Sunday and learning what my religion thought was right and wrong influenced me to believe that abortion was killing a life. Since I grew up with this influence I subconsciously thoughtRead MoreThe Abortion Debate2354 Words   |  10 PagesAdedayo Adeniyi November 13, 2008 Expository writing An abortion is the termination of a pregnancy by the removal or expulsion of an embryo or fetus from the uterus, resulting in or caused by its death. An abortion can occur spontaneously due to complications during pregnancy or can be induced. Abortion as a term most commonly refers to the induced abortion of a human pregnancy, while spontaneous abortions are usually termed miscarriages. Abortion has a long history and has been induced by various methodsRead MoreThe Debate Over The Abortion Debate1097 Words   |  5 PagesIt is no surprise that the abortion debate has once again have brought into the mainstream focus this year. Yet, this time around the age old debate is now attacking organizations that offer such procedures, vilifying the entire organization for only one service it offers. This vilification has continuously gained momentum for ages, but it was the attack upon Planned Parenthood earlier this year that has brought the debate to head once again. Recently Pro-Life group s took up arms to destroy the organizationRead MoreThe Debate Over Abortion On Abortion Essay1682 Words   |  7 Pagespolitical debate has existed in America, there has been a strong tension between the ideologies of conservatism and liberalism. While there are numerous differences between the two ideologies, the core of each is expressed clearly through the modern debate of abortion. The vision, ideals, and assumptions of each ideology can be identified through the way in which each ideology argues its position on abortion. The debate over abortion has been taking place since the 19th century. Abortions were legalRead MoreThe Debate About Abortion And Abortion1709 Words   |  7 PagesThe practice of abortion is an issue that has sparked controversy for many years. One of the initial problems that lead to the debate about abortion is the fact that, the definition of the term abortion varies from one field to another. The controversy arises because the language used to describe abortion â€Å"is a reflection of the societal beliefs of the people in that area† (McFarlane Meier 65). Generally, the World Health Organization defines abortion as induced or spontaneous termination of pregnancyRead MoreThe Debate Of Abortion And Abortion2390 Words   |  10 PagesThe subject of abortion is undeniably a difficult one to discuss. There are many different opinions and stances which could be taken, however, the question for Christians is just where they should stand on this matter. The issue is that if p eople (more specifically Christians) are not careful then they get caught up in the different stances, different questions, and different opinions. If this happens then they will not be able to make a firm standing against or for abortion while having facts toRead MoreAbortion Debate Essay968 Words   |  4 PagesThis essay is about the Abortion debates. I choose to write about this because of my personal views. The Abortion debate is one of the biggest debates in the United States. Many topics come up in the Abortion debates from both sides. I have 6 Points from both sides of the issue. The first point I would like to talk about is when is the fetus considered to be a human life? Pro-life thinks that life begins at conception, so abortion is akin to murder as it is to the act of taking a human life. NowRead MoreAbortion : A Controversial Debate874 Words   |  4 PagesAbortion There truly is not a more controversial or passionate debate as the one on abortion. This issue is completely unique due to the firm line between groups that support or are against it. Whichever side a person finds themselves on, usually for many reasons, it becomes a fierce and firm position that will not waiver. In this case I am glad that people are so passionate, a human life is at stake. This subject should bring great feelings and beliefs up. I would be completely sickened if abortion

The Hunters Moonsong Chapter Thirty-Five Free Essays

Initiation night for the newest members of the Vitale Society had arrived at last. The cavernous room was lit only by golden candlelight from long tapers placed around the space and by the fire of high-flaming torches against the wal s. In the flickering light, the animals carved in the wood of the pil ars and arches almost seemed to be moving. We will write a custom essay sample on The Hunters: Moonsong Chapter Thirty-Five or any similar topic only for you Order Now Matt, dressed in a dark hooded robe like the other initiates, gazed around proudly. They’d worked hard, and the room looked amazing. At the front of the room, beneath the highest arch, a long table had been placed, draped in a heavy red satin cloth and looking like some kind of altar. In the center of the table sat a huge deep stone bowl, almost like a baptismal font, and around it roses and orchids were set. More flowers had been scattered on the floor, and the scent of the crushed blossoms underfoot was so strong that it was dizzying. The pledges were lined up, evenly spaced, before the altar. As if she’d picked up on his pride at how everything had turned out, Chloe pushed her dark hood back a bit and leaned toward him to mutter, â€Å"Pretty fabulous, huh?† Matt smiled at her. So what if she was dating someone else? He stil liked her. He wanted to stay friends, even if that was al there could be between them. He tugged at his robe self-consciously; the fabric was heavy, and he didn’t like the way it blocked his peripheral vision. The current masked members of the Vitale Society wove silently among the pledges, handing out goblets ful of some kind of liquid. Matt sniffed his and smel ed ginger and chamomile as Wellas less familiar scents: so this was where the herbs had been used. He smiled at the girl who gave it to him, but got no response. Her eyes behind the mask slid over him neutral y, and she moved on. Once he was a ful member of the Vitale Society, he would know who these current members were, would see them without their masks. He sipped from his goblet and grimaced: it tasted strange and bitter. The soft rustlings of cloaked figures moving across the floor were silenced as the last of the goblets was handed out and the masked Vitales quietly retreated under the arch behind the altar to watch. Ethan stepped forward, up to the altar, and pushed back his hood. â€Å"Welcome,† he said, holding out his hands to the assembled pledges. â€Å"Welcome to true power at last.† The candlelight flickered over his face, twisting it into something unfamiliar and almost sinister. Matt twitched nervously and took another swal ow of the bitter herbal mixture. â€Å"A toast!† Ethan cal ed. He raised his own goblet, and before him, the pledges raised theirs. He hesitated for a moment, then said, â€Å"To moving beyond the veil and discovering the truth.† Matt raised his goblet and drained it with the other pledges. The mixture left a gritty feeling on his tongue, and he scraped it absently against his teeth. Ethan looked around at the pledges and smiled, locking gazes with one after another. â€Å"You’ve al worked so hard,† he said affectionately. â€Å"Each of you has reached his or her personal peak of intel igence, strength, and leadership ability now. Together, you are a force to be reckoned with. You have been perfected.† Matt managed to politely restrain himself from rol ing his eyes. It was nice to be praised, of course, but sometimes Ethan was a little too over the top: perfected? Matt doubted it was even possible. It seemed to him that you could always strive to be a little more, or a little less, something. You could always wish to be better. But even if he could, after al , be perfected, he suspected that it would take more than a few obstacle courses and group problem-solving exercises to do it. â€Å"And now it is time to at last discover your purpose,† Ethan continued. â€Å"Time to complete the final stage in your transformation from ordinary students into true avatars of power.† He took a clean and shining silver cup from the altar and dipped it into the deep stone bowl in front of him. â€Å"With every step forward in evolution, there must be some sacrifice. I regret any pain this wil cause you. Be comforted by the knowledge that al suffering is temporary. Anna, step forward.† There was a slight uneasy stirring among the pledges. This talk of suffering and sacrifice was different than Ethan’s usual emphasis on honor and power. Matt frowned. Something was wrong here. But Anna, looking tiny in her long robe, walked without hesitation up to the altar and pushed back her hood. â€Å"Drink of me,† Ethan said, handing her the silver cup. Anna blinked uncertainly and then, her eyes on Ethan, tipped back her head and drained the cup. As she handed it back to Ethan, she licked her lips automatical y, and Matt tried to peer more closely at her. In the flickering candlelight, her lips looked unnatural y red and slick. Then Ethan led her around the side of the altar and into his arms. He smiled, and his face twisted, his eyes dilating and his lips pul ing back in a snarl. His teeth looked so long, so sharp. Matt tried to shout a warning but realized with horror that he couldn’t move his lips, couldn’t draw the breath to cal out. He knew, suddenly, that he had been a fool. Ethan sank his fangs deep into Anna’s neck. Matt strained, trying to run toward them, to attack Ethan and throw him away from Anna. But he couldn’t move at al . He must be under some kind of compulsion. Or perhaps something in the drink, some magic ingredient, had made them al docile and stil . He watched helplessly as Anna struggled for a few moments, then went limp, her eyes rol ing back in her head. Unceremoniously, Ethan let her body drop to the ground. â€Å"Don’t be afraid,† he said kindly, gazing around at the horrified, frozen pledges. â€Å"Al of us† – he gestured toward the silent, masked Vitale behind him – â€Å"went through this initiation recently. You must brace yourself to suffer what is only a smal , temporary death, and then you wil be one of us, a true Vitale. Never growing old, never dying. Powerful forever.† Sharp white teeth and golden eyes shining in the candlelight, Ethan reached out toward the next pledge as Matt struggled again to shout, to fight. Ethan continued, â€Å"Stuart, step forward.† Elena smel ed so good, rich and sweet like an exotic ripe fruit. Damon wanted to simply bury his head in the soft skin at the crook of her neck and just inhale her for a decade or two. Snaking his arm through hers, he pul ed her closer. â€Å"You can’t come in with me,† she told him for the second time. â€Å"I might be able to get James to talk to me because it’s a question about my parents, but I don’t think he’l tel me anything if someone else is there. Whatever the truth is about the Vitale Society and my parents, I think he’s embarrassed about it. Or afraid, or †¦ something.† Without paying attention to what she was doing, Elena shifted her grip and held on to Damon’s arm more firmly. â€Å"Fine,† Damon said stubbornly. â€Å"I’l wait outside. I won’t let him see me. But you’re not to walk across campus at night by yourself. It’s not safe.† â€Å"Yes, Damon,† Elena said in a convincing imitation of meekness, and rested her head on his shoulder. The lemony scent of her shampoo mixed with the more essential Elena smel of her. Damon sighed with contentment. She cared for him, he knew that, and Stefan had taken himself out of the picture. She was stil young, his princess, and a human heart could heal. Maybe, with Stefan gone, she would final y see how much closer she was, mind and soul, to Damon, how perfectly they fit together. In any case, she was his for now. He lifted his free hand and stroked her head, her silky hair pliant beneath his fingers, and smiled. The professor’s house was barely off campus, just across the street from the gilded entrance gates. They’d almost reached the edge of campus when a familiar presence that had been lurking nearby at last came very close. Damon wheeled to scan the shadows, pul ing Elena with him. â€Å"What is it?† Elena said, alarmed. Come out, Damon thought with exasperation, sending his silent message toward the thickest shadows at the base of a crowd of oak trees. You know you can’t hide from me. One dark shadow detached itself from the rest, stepping forward on the path. Stefan simply gazed at the ground, shoulders slumped, his hands loose and open by his sides. Elena gasped, a smal hurt sound. Stefan looked terrible, Damon thought, not without sympathy. His face seemed hol ow and strained, his cheekbones more prominent than usual, and Damon would have bet that he wasn’t feeding properly. Damon felt a twinge of disquiet. He didn’t take pleasure in causing his brother pain. Not anymore. â€Å"Well?† Damon said, raising his eyebrows. Stefan glanced up at him. I don’t want to fight with you, Damon, he said silently. So don’t, Damon shot back at him, and Stefan’s mouth twitched in a half smile of acknowledgment. â€Å"Stefan,† Elena said suddenly, sounding like the word had been jerked out of her. â€Å"Please, Stefan.† Stefan stared down at the path under his feet, not meeting her eyes. â€Å"I sensed you were nearby, Elena, and I felt your anxiety,† he said wearily. â€Å"I thought you might have been in trouble. I’m sorry, I was mistaken. I shouldn’t have come.† Elena stiffened, and her long dark lashes fel over her eyes, hiding, Damon was almost sure, the beginnings of tears. A long silence stretched between them. Final y, irritated by the tension, Damon made an effort to ease it. â€Å"So,† he said casual y, â€Å"we broke into the campus security office last night.† Stefan looked up with a flicker of interest. â€Å"Oh? Did you find anything useful?† â€Å"Crime scene photos, but they weren’t very helpful,† Damon said, shrugging. â€Å"The folders were marked with black Vs, so we’re trying to figure out what that means. Elena’s going to talk to her professor about the Vitale Society, see if it could have anything to do with them.† â€Å"The†¦ Vitale Society?† Stefan said hesitantly. Damon waved a hand dismissively. â€Å"A secret society from back in the day when Elena’s parents were here,† he said. â€Å"Who knows? It may be nothing.† Drawing a hand across his face, Stefan seemed to be thinking hard. â€Å"Oh, no,† he muttered. Then, looking at Elena for the first time, he asked, â€Å"Where’s Matt?† â€Å"Matt?† Elena echoed, startled out of her wistful contemplation of Stefan. â€Å"Um, I think he had some kind of meeting tonight. Footbal stuff, maybe?† â€Å"I have to go,† Stefan said tightly, and was immediately gone. With his enhanced abilities, Damon could hear Stefan’s light footsteps racing away. But to Elena, he knew, Stefan had been nothing but a silently vanishing blur. Elena turned to Damon, her face crumpling in what he recognized as a prelude to more tears. â€Å"Why would he fol ow me if he doesn’t want to talk to me?† she said, her voice hoarse with sorrow. Damon gritted his teeth. He was trying hard to be patient, to wait for Elena to give him her heart, but she kept thinking of Stefan. â€Å"He told you,† he said, keeping his voice even. â€Å"He wants to make sure you’re safe, but he doesn’t want to be with you. But I do.† Firmly recapturing her arm with his, he tugged her lightly forward. â€Å"Shal we?† How to cite The Hunters: Moonsong Chapter Thirty-Five, Essay examples

Construction Management and Economics

Question: Discuss about theConstruction Management and Economics. Answer: Project Leadership in Becoming: A Process Study of an Organizational Change Project Synopsis In this article, the author here describes the concept of general leadership with different project leadership styles. In this article, the author clearly makes certain arguments regarding the ongoing production of social acts that involves continuous deconstruction and construction of present activities and rhythm (Packendorff, Crevani Lindgren, 2014). This article is based on ethnographic case study of an organizational management change. This entire article is based on project leadership and organizational change projects elements. As compared to any other article, the researcher has chosen the above article; because it is very relevant and totally concept based manipulated study on different types of leadership traits and attitudes with respect to organizational change management. According to the expert, in this relevant article the creditability of leadership is getting diminishing in many organizations due to its lacking behind certain assumptions and consequences (Burke, 201 3). The behaviors and attitudes of different managerial leaders are highlighted; according to their interchangeably. It also highlights that how leaders in an organizational management behave and develop their intermediate skills according to the prescribed situation (Packendorff, Crevani Lindgren, 2014). According to this article leadership may be clearly defined as:Leadership is the process of influencing the organized activities in its efforts to achieve its aim and objectives of an organizational management. Additionally, this article also reflects the concept strategy of ongoing construction directions with a space of actions (Marchewka, 2014). This article mainly focuses on the space action and the direction of change in an organizational management. Figure 1: Analytical Dimensions of study of Project Leadership (Source: Packendorff, Crevani Lindgren, 2014, pp-35) The above diagram is the analytical dimensions of study of project leadership in this relevant article. The researcher has explained and discussed the nature and the type of project exploration with its relative management skills resistance. The diagrammatic representation mainly circulates the core concept of project path, positions, issues and rhythm in project management. The below provided critique explains the overall segments of the article with different intellectual concept biased prior to the consent article. Critique In this relevant article of Project Leadership in Becoming: A Process Study of an Organizational Change Project, the type of project depicted includes: past project and its activities, areas and positions of its responsibility, space, rhythm and intensity and discarded future issues. The history of project management skills is based on the core strategy concept of various fields of an application which generally includes civil engineering, construction engineering and huge defense activities (Packendorff, Crevani Lindgren, 2014). It necessarily includes the diagrams of Gantt charts, PERT charts and calculations of different types of milestones. In this leadership article, the concept of construction engineering is reflected and highlighted. The project management skills comprises of leadership, communication, team management, risk management, personal organization and negotiation (Leach, 2014). There are various change models in project management leadership which generally includes creation of urgency, powerful coalition, change of vision, vision communication, removal of certain obstacles, and creation of short term within project management leadership (Packendorff, Crevani Lindgren, 2014). In the concept of project management leadership styles there are various source of conflict that can arise in workplace environment. The perfect instances of leadership traits and qualities are clearly highlighted and reflected. The overcoming management resistance of change in project management generally includes lack of knowledge in implementation and adoption of new system technology and fear of losing power intimacy (Gardiner, 2014). The organizational change management in project leadership implies the modification and reviewing of business structures and procedures. In this relevant article, the author has focused in the change management of an organizational strategic and operations process with respect to different business activities (Schwalbe, 2015). The behaviors and attitudes of different managerial leaders are highlighted; according to their interchangeably. This article mainly focuses on the space action and the direction of change in an organizational management. The critique explains the overall segments of the article. The project management skills comprises of leadership, communication, team management, risk management, personal organization and negotiation. In the concept of project management leadership styles there are various source of conflict that can arise in workplace environment. On the basis of the above article, different stakeholders interest, project manager management styles, scope change and scheduled changes are included (Packendorff, Crevani Lindgren, 2014). Several positions equivalent to the position portfolio management are clearly reflected and highlighted. The diagrammatic illustrations with respect to organization change in management have been depicted above. Reflection The article on Project Leadership in Becoming: A Process Study of an Organizational Change Project has manipulated me the fundamental concepts of leadership qualities and its attributes in an organizational management. With the constant change in an organizational managerial process it is very necessary to cope up with different segments of leadership qualities. This article teaches me to perform the presence qualities of a good leader in an organizational management. The article on Project Leadership in Becoming: A Process Study of an Organizational Change Project is chosen by me who helps me to get certain assistance about the knowledge management skills of leadership attributes relevant to construction industry. After reading various comments and arguments in these articles I have gain several knowledge about the concept of leadership and organizational change project. Lesson learned The above article on Project Leadership in Becoming: A Process Study of an Organizational Change Project is very helpful and useful for every individual and for every organizational management. The perfect instances of leadership traits and qualities are clearly highlighted and reflected. It has been drawn on current and latest research in the general field of leadership styles and traits with respect to project management and leadership. Varieties of leadership attitudes with integration have been clearly depicted here. The following comments and arguments are really appreciable. As compared to any other article, the researcher has chosen the above article; because it is very relevant and totally concept based manipulated study on different types of leadership traits and attitudes with respect to organizational change management. Conclusion This entire blog concludes with the broad concept of project management leadership. The researcher has taken the article of 2011; related with the core concept if project management leadership traits and skills. It depicts the core strategy concept of leadership traits and attitudes within an organizational management. The researcher has also illustrated with diagrammatic representation. The type of projects and model charge are clearly highlighted and reflected in the critique section. From the above scenario, it has been analyzed that the concept of leadership plays a very significant role in entire organizational management. It preferred some immense qualities with inbuilt role model. After reviewing with the above related article, the researcher has recommended certain things that need to be taken into consideration which commonly includes maintain ace of leadership traits and attitudes with the change in an organizational process, retrieving the qualities preferred with manageri al process and manipulating the segments prior to the need of the project management. References Ahern, T., Leavy, B., Byrne, P. J. (2014). Complex project management as complex problem solving: A distributed knowledge management perspective. International Journal of Project Management, 32(8), 1371-1381. Burke, R. (2013). Project management: planning and control techniques. New Jersey, USA. Gardiner, P. (2013). Moving from Project Management to Project Leadership: A Practical Guide to Leading Groups. Construction Management and Economics, 31(7), 792-793. Heagney, J. (2012). Fundamentals of project management. AMACOM Div American Mgmt Assn. Leach, L. P. (2014). Critical chain project management. Artech House. Marchewka, J. T. (2014). Information technology project management. John Wiley Sons. Packendorff, J., Crevani, L., Lindgren, M. (2014). Project leadership in becoming: A process study of an organizational change project.Project Management Journal,45(3), 5-20. Redick, A., Reyna, I., Schaffer, C., Toomey, D. (2014). Four-factor model for effective project leadership competency. Journal of Information Technology and Economic Development, 5(1), 53. Schuhmann, R., Magarian, J., Hutner-Loan, E. (2014). A Method for Assessing Engineering Leadership Content in the Engineering Curriculum: A First Look at Civil Engineering Project Management Courses. In Proceedings of the 121st American Society of Engineering Education (ASEE)Annual Conference and Exposition, Indianapolis June. Schwalbe, K. (2015). Information technology project management. Cengage Learning.