KUALA TERENGGANU: Terengganu plans to provide comprehensive insurance coverage for senior citizens so that their relatives need not worry about funeral expenses upon the death of the policy holders.
State Welfare, Community and Women Development Committee chairman Ashaari Idris said some 160,000 locals were expected to benefit from the insurance scheme when it is implemented.
The indemnity would cover funeral expenses and compensation for the next-of-kin upon the death of the policy holder, he said.
He added that the insurance coverage would also pay a quantum to the spouse of the deceased if they had dependents under their care.
Ashaari said a proposal had been outlined on the types of coverage that eligible recipients would receive.
“I will table the proposal during the state executive council meeting on Wednesday and follow up on the next course of action once the Exco gives the go-ahead,” he said.
Ashaari said most insurance companies paid RM1,500 for funeral expenses while a lump sum of about RM30,000 is paid to the next-of-kin.
However, he said the state government had to also take into account the total cost involved in providing the coverage, as it would have to fork out the monthly premiums.
He added that once the insurance scheme was approved, locals who were eligible would be identified through the state Welfare Department’s database of recipients on state aid.
Monday, May 31, 2010
Friday, May 28, 2010
Entrepreneur: Big Opportunity
India's mobile subscribers totalled 563.73 million at the last count, enough to serve nearly half of the country's 1.2 billion population.
But just 366 million people - around a third of the population - had access to proper sanitation in 2008, said the study published by the United Nations University, a UN think-tank.
Three-quarters of consumers say broadband as essential as water. Listening to football on the radio while driving is dangerous, say scientists.
But just 366 million people - around a third of the population - had access to proper sanitation in 2008, said the study published by the United Nations University, a UN think-tank.
Three-quarters of consumers say broadband as essential as water. Listening to football on the radio while driving is dangerous, say scientists.
Japanese using mobile phones to find nearest lavatory
Motorists 30 per cent slower reacting when using hands-free than when they are drunk
Bhopal gas disaster's legacy lives on 25 years later"It is a tragic irony to think in India, a country now wealthy enough that roughly half of the people own phones," so many people "cannot afford the basic necessity and dignity of a toilet," said Zafar Adeel, the UN University director.
Mr Adeel heads the UN University's Institute for Water, Environment and Health, based in the Canadian city of Hamilton, which prepared the report.
Worldwide, an estimated $358 billion (£230 billion) is needed between now and 2015 to achieve the UN Millennium Development Goal (MDG) of halving the proportion of people with inadequate sanitation from 2000 levels.
Proper sanitation "could do more to save lives, especially those of young people, improve health and help pull India and other countries in similar circumstances out of poverty than any alternative investment," Mr Adeel said.
Poor sanitation is a major contributor to water-borne diseases, which in the past three years alone killed an estimated 4.5 million children under the age of five worldwide, according to the study.
The report gave a rough cost of $300 to build a toilet, including labour, materials and advice.
The world could expect a return of up to $34 for every dollar spent on sanitation through improved productivity and reduced poverty and health costs, said Adeel.
He said improving sanitation was "an economic and humanitarian opportunity of historic proportions."
Mr Adeel heads the UN University's Institute for Water, Environment and Health, based in the Canadian city of Hamilton, which prepared the report.
Worldwide, an estimated $358 billion (£230 billion) is needed between now and 2015 to achieve the UN Millennium Development Goal (MDG) of halving the proportion of people with inadequate sanitation from 2000 levels.
Proper sanitation "could do more to save lives, especially those of young people, improve health and help pull India and other countries in similar circumstances out of poverty than any alternative investment," Mr Adeel said.
Poor sanitation is a major contributor to water-borne diseases, which in the past three years alone killed an estimated 4.5 million children under the age of five worldwide, according to the study.
The report gave a rough cost of $300 to build a toilet, including labour, materials and advice.
The world could expect a return of up to $34 for every dollar spent on sanitation through improved productivity and reduced poverty and health costs, said Adeel.
He said improving sanitation was "an economic and humanitarian opportunity of historic proportions."
Wednesday, May 26, 2010
New Takaful Licenses
PETALING JAYA: Come June, there will be some excitement in the banking industry when Bank Negara reveals some of the successful recipients for foreign commercial banking licences in line with the financial sector liberalisation plan.
Up to five new banking licences are expected to be issued in niche and up to two new takaful licences will also be announced.
ING, Allianz, Manulife, Great Eastern and AmAssurance are some of the insurers believed to have submitted their applications. An industry observer felt Great Eastern might be one of the successful applicants for the takaful licence.
It is learnt that the proposed two Islamic banking licences expected to be issued next month may be delayed as the central bank is still assessing the applications of suitable candidates.
Although industry observers are still speculating on the possible foreign commercial banking licensees, names like DBS Bank, UOB, The National Bank of Abu Dhabi (NBAD) and Sumitomo Mitsui Banking Corp have been popping up of late on analysts' radar as among the potential candidates.
Bank Negara has been tight-lipped about this matter but hinted that the licences to be issued would be to banks from Asia, Europe and the Middle East.
Last year also saw the central bank issuing banking licences to Industrial and Commercial Bank of China Ltd and this year, it issued a new commercial banking licence to a consortium of Indian banks.
An analyst from a foreign brokerage felt DBS was a possible candidate for the banking licence as the Singapore government's investment arm, Temasek Holdings, was believed to be consolidating its banking assets under its unit, DBS Group Holdings Ltd.
Since Alliance Financial Group (the parent company of Alliance Bank) is 29% owned by Fullerton Financial Holdings Ltd, which is in turn fully-owned by Temasek, it would make business sense for DBS to enter the local market via Alliance Bank, he added.
But, then again, there was a possibility that the central bank might not agree to this for the time being, the analyst added.
An analyst from an investment bank said NBAD, which had, among others, niche expertise in the small and medium enterprises, would be a good fit for the local small and medium enterprises industry.
Malaysian Rating Corp Bhd (MARC) vice-president and head of financial institution ratings Anandakumar Jegarasasingam added that it was very likely that these new international banks that would be given licences would focus on the corporate sector to finance specialised activities and to use Malaysia as a base to access the broader regional market.
Therefore, he added, it was unlikely that these new international banks would be an immediate threat to the retail banking operations of the existing banks.
While banks from the Middle East, India and Indonesia might be aggressive in their operations, banks from countries like Japan were likely to be less aggressive in their operations, he noted.
As Malaysia's pool of bankers was rather limited, he said the entry of new banks was likely to offer attractive remuneration packages and might create a “talent crunch” in the banking sector.
RAM Ratings head of financial institution ratings Promod Dass believed that the new entrants were likely to focus on their niches at the onset, for example, facilitating international trade flows of companies domiciled in their home countries.
All said, RAM Ratings views the liberalisation initiatives in a positive light. An “open” financial sector would promote diversity in the Malaysian financial marketplace, encourage innovation and promote best practices, Dass added.
Pitted against the existing and already-established banking franchises, carving a significant foothold in the consumer, SME and wholesale banking segments would be challenging as their domestic incumbents would have a head start in terms of their first-mover advantage, he said.
Up to five new banking licences are expected to be issued in niche and up to two new takaful licences will also be announced.
ING, Allianz, Manulife, Great Eastern and AmAssurance are some of the insurers believed to have submitted their applications. An industry observer felt Great Eastern might be one of the successful applicants for the takaful licence.
It is learnt that the proposed two Islamic banking licences expected to be issued next month may be delayed as the central bank is still assessing the applications of suitable candidates.
Although industry observers are still speculating on the possible foreign commercial banking licensees, names like DBS Bank, UOB, The National Bank of Abu Dhabi (NBAD) and Sumitomo Mitsui Banking Corp have been popping up of late on analysts' radar as among the potential candidates.
Bank Negara has been tight-lipped about this matter but hinted that the licences to be issued would be to banks from Asia, Europe and the Middle East.
Last year also saw the central bank issuing banking licences to Industrial and Commercial Bank of China Ltd and this year, it issued a new commercial banking licence to a consortium of Indian banks.
An analyst from a foreign brokerage felt DBS was a possible candidate for the banking licence as the Singapore government's investment arm, Temasek Holdings, was believed to be consolidating its banking assets under its unit, DBS Group Holdings Ltd.
Since Alliance Financial Group (the parent company of Alliance Bank) is 29% owned by Fullerton Financial Holdings Ltd, which is in turn fully-owned by Temasek, it would make business sense for DBS to enter the local market via Alliance Bank, he added.
But, then again, there was a possibility that the central bank might not agree to this for the time being, the analyst added.
An analyst from an investment bank said NBAD, which had, among others, niche expertise in the small and medium enterprises, would be a good fit for the local small and medium enterprises industry.
Malaysian Rating Corp Bhd (MARC) vice-president and head of financial institution ratings Anandakumar Jegarasasingam added that it was very likely that these new international banks that would be given licences would focus on the corporate sector to finance specialised activities and to use Malaysia as a base to access the broader regional market.
Therefore, he added, it was unlikely that these new international banks would be an immediate threat to the retail banking operations of the existing banks.
While banks from the Middle East, India and Indonesia might be aggressive in their operations, banks from countries like Japan were likely to be less aggressive in their operations, he noted.
As Malaysia's pool of bankers was rather limited, he said the entry of new banks was likely to offer attractive remuneration packages and might create a “talent crunch” in the banking sector.
RAM Ratings head of financial institution ratings Promod Dass believed that the new entrants were likely to focus on their niches at the onset, for example, facilitating international trade flows of companies domiciled in their home countries.
All said, RAM Ratings views the liberalisation initiatives in a positive light. An “open” financial sector would promote diversity in the Malaysian financial marketplace, encourage innovation and promote best practices, Dass added.
Pitted against the existing and already-established banking franchises, carving a significant foothold in the consumer, SME and wholesale banking segments would be challenging as their domestic incumbents would have a head start in terms of their first-mover advantage, he said.
Saturday, May 15, 2010
Leadership: Sharpening The Axe
"Employ your time in improving yourself by other men's writings, so that you shall gain easily what others have laboured hard for." - Socrates
A few years ago, while at Lawas in Sarawak, I was told this story of a very strong and skilled Kayan woodcutter who asked for a job with a timber merchant.
He got the job with a good salary and decent work conditions. And so, the woodcutter was determined to do his best for the boss. His boss gave him an axe and on his first day, the woodcutter cut down 15 trees. The boss was pleased and said: "Well done, good work!"
Highly motivated, the woodcutter tried harder the next day, but could only fell 13 trees. The third day, he tried even harder, but only 11 trees were chopped down.
Day after day, he tried harder but he cut down fewer trees. "I must be losing my strength," the Kayan woodcutter thought. He apologised to the boss, claiming he could not understand why.
"When was the last time you sharpened your axe?" the boss asked.
"Sharpen? I had no time to sharpen my axe. I have been too busy cutting down trees," said the woodcutter.
He sharpened his axe and immediately was back to 15 trees a day. Since then, he begins the day by sharpening his axe.
Most leaders are too busy doing and trying to achieve, that they never take time to learn and grow. Most of us don't have the time or patience to update skills, knowledge, and beliefs about an industry, or to take time to think and reflect. Many assume that learning ends at school and so sharpening our axe is not a priority.
So, what exactly is sharpening the axe? Dr Steven Covey, who popularised the term, believes it means "increasing your personal production capacity by daily self care and self-maintenance."
Most people fail to understand what it means and mistake it for taking a break or vacation. If you're overworking yourself and your productivity drops off, take a break.
However, that isn't sharpening the axe; that's putting the axe down. When you put down a dull blade and rest, the blade will still be dull when you pick it up.
The woodcutter does need downtime to rest, but it is not "sharpening the axe." The woodcutter only becomes more productive by sharpening his blade, analysing new woodcutting techniques, exercising to become stronger, and learning from other woodcutters.
Sharpening the axe is an activity. You too can sharpen the axe of your life. Here are 10 ways:
● Read a book every day;
● Get out of your comfort zone by changing jobs. A new job forces you to learn;
● Have a deep conversation with someone you find interesting. Sharpen your axe through that interaction;
● Pick up a new hobby. Stretch yourself physically, mentally or emotionally;
● Study something new;
● Overcome a specific fear you have or quit a bad habit;
● Have a daily exercise routine or take part in some competition;
● Identify your blind spots. Understand, acknowledge, and address it;
● Ask for feedback and get a mentor; and
● Learn from people who inspire you. Subscribe to YouTube/leaderonomicsmedia and watch interviews of great leaders.
● Read a book every day;
● Get out of your comfort zone by changing jobs. A new job forces you to learn;
● Have a deep conversation with someone you find interesting. Sharpen your axe through that interaction;
● Pick up a new hobby. Stretch yourself physically, mentally or emotionally;
● Study something new;
● Overcome a specific fear you have or quit a bad habit;
● Have a daily exercise routine or take part in some competition;
● Identify your blind spots. Understand, acknowledge, and address it;
● Ask for feedback and get a mentor; and
● Learn from people who inspire you. Subscribe to YouTube/leaderonomicsmedia and watch interviews of great leaders.
You have to do it as often as possible. But if you're so focused on your task at hand with no time for discussion, introspection, or study, you're not really moving forward. Just as a car needs to be refuelled to keep going, we too need refuelling through learning.
The Management Mythbuster author David Axson believes most organisations still rely on outdated management strategies. Unless we are sharpening our axe daily by observing the changing world and changing ourselves accordingly, we risk becoming irrelevant.
Andrew Grove reinvented Intel and oversaw a 4,500 times increase in market capitalisation by his daily habitual "axe-sharpening" ritual of understanding global changes and taking advantage of these to ensure Intel remained relevant.
Employees at Japanese organisations like Toyota believe it's a crisis if they do not create improvement each day. The "Kaizen mindset" means that every day, whether you're a line worker or executive, you find ways to learn something new and apply it to what you're doing. This forces employees to be alert, mindful and constantly improving.
Great leaders like Mahatma Gandhi, Nelson Mandela and Steve Jobs have a continuous appetite for learning and growth. They always listen and watch in the hope of learning new ideas and discovering new truths and realities.
Many of us do just the opposite. By staying in the same job for many years, although we become experts and our roles become easy, our learning flattens.
We don't like changing jobs as there is pain and struggle in taking on new roles. But the more we struggle, the more we learn.
When a new boss with new expectations takes over, we sometimes find ourselves struggling even though we have been in the same role for years. We try harder but still fail to impress. Why does this happen?
Much like the woodcutter, trying harder will not yield results. This is because we did not upgrade ourselves nor grow in the "easy" years. Our years of experience count for nothing as we did not keep up with the world around us and were ignorant and mindless of things that were evolving daily around us.
Two weeks ago, I interviewed Harvard Prof Ellen Langer, who reminded me of our natural inclination to be mindless. Mindlessness is our human tendency to operate on autopilot, whether by stereotyping, performing mechanically or simply not paying attention.
We are all victims of being mindless at times. By sharpening our axe, we move from a mindless state to a mindful state; from "blindly going with the flow" to thinking and "breaking boundaries."
Why then do so many people fail to sharpen their axe? Well, axe sharpening isn't as fun as whacking away at the tree. And it is painful and tedious work.
Religious leader David O. McKay once said: "The greatest battles of life are fought out daily in the silent chambers of the soul."
Sharpening the axe is a daily inner battle. Research reveals that self-educated presidents like George Washington and Abraham Lincoln sharpened their axe daily by cultivating the discipline of reading.
In a number of Asian organisations, when there is a crisis or financial situation, the first thing that gets slashed is training programmes for employees. Yet, in a crisis, there is a greater need for employees to have sharpened axes to deal with issues.
Crises often helps companies to become great because they finally take time to sharpen their axe by re-looking at their current strategies and reinventing their industries, sometimes through painful reforms.
Before the 1998 Asian financial crisis, the Korean auto industry were jaguh kampung and known for low-quality cars with strong domestic car sales. The crisis forced them to take a step back, sharpen their axe, become mindful to the world and move to sell the majority of their cars outside South Korea.
Of course, too much or aimless axe sharpening can become another form of procrastination. Many like to attend training courses and classes but end up never using the axe. After sharpening the axe, use it or all is in vain.
How are your various blades doing? Your skills, your knowledge, your mind, your physical body, your relationships, your motivation, your commitment to succeed, your capacity for growth, your emotions - are all of them still sharp? If not, which ones are dull, and what can you do to sharpen them?
Lincoln once said: "Give me six hours to chop down a tree and I'll spend the first four sharpening my axe."
Wednesday, May 12, 2010
Leadership: Ass Kisser
From a very early age it is some times possible to tell that some children are born to lead and that some are born to follow, The leaders are the children in the playground who delegate the roles during gameplay of the other children at recess and the followers are the ones who carry out the role delegated to them during the course of the game.
The Leader is a self confident child who takes control of any situation with efficiency, diplomacy and tact, the leader very quckly earns the respect of their peers.
The Follower looks up to the leader with respect and and will allow the leader to guide them within reason.
There is one more type of child to be found in the playground he/she could be classed as a follower but with a slight difference the Ass Kisser will follow the leader and the follower, trying to please everyone trying to be everyone in the groups friend, yet this person would stab you in the back for a little bit of praise from someone higher in the pecking order than you. these people are often referred to as a brown noser in the work place because their heads are so far up the bosses ass that their nose has turned brown.
How to Spot an Ass Kisser at School
School is a place of learning it's where we learn to read and write, we learn science and mathematics as well as a whole host of other subjects, the results of which help us to enrich our minds and further our future career prospects when we start making our own way in the world.
Some things that we learn in school though are not taught to us in any class room, things that stand us in good stead for our whole lives and make us more aware of the people around us. We learn who we can or cannot trust, who we can be friends with who to stay away from, we quickly learn who the bullies are and most importantly who the ass kissers.
At school the Ass Kisser is easy to spot, trying too hard to become friends with everyone, they bring candy into school to share with everyone and they bring an apple in for the teacher every morning.
The first week or so is great you are getting candy for nothing and your new friend will do anything to please you, they will play the games that you want to play, go where you want to go and talk with whoever you want to talk too, they seem like the perfect friend until you break one of the school rules, if you drop a candy wrapper on the ground they run off and tell the teacher about your devious crime spree and you get into trouble for it whilst it makes them look good infront of the teacher.
The strange thing about it is after they have reported your offence they try to make it up to you by giving you more candy, asking you to play your favorite game or even giving you one of their favorite toys in the hope that you will remain their friend.
At school Ass Kissers lose friends very quickly and in the end up they become spies for the teachers, reporting every infraction by students that they see, having lost respect from the students they hope to earn it from the teachers who secretly hate them because of their constand tattle tales.
How to Spot an Ass Kisser at Work
By the time they have left the academical life the Ass kisser is a more devious person altogether and their brown nosing has become an art form.
Spotting the brown noser in the work place is a little more difficult, their tactics have completely changed, they have learned the act of stealth tactics and how to manipulate people to believe that they are a true friend or ally. most importantly they have learned how to disagree with your views in situations where you will not be offended therefore you still think of them as a friend.
The first day that you start a new job, people want to know more about you, what you did before, where you come from, your hobbies and interests if you have any common aquaintancies and so forth.
The ass Kisser tends to share the same hobbies and interests as you and always has the same sort of background as you came from, quick thinkers they come up with a story which resembles your life but with a few embelishments that will make you feel a little sympathetic toward them, for example they would say that they went to the same school as you but they hated it because they were being constantly bullied.
The Ass Kisser at work is a listener more than a talker so much so that you begine to confide in them sharing your thoughts about your co-workers and your superiors why you like this person why you dont like another,what you think of the job and ideas that that you have come up with to improve the productivity of the workplace.
The brown noser then uses his skills by telling the biggest gossip in the workplace what you have said about your co-workers and superiors and the rumours begin about you. if you ask the kiss ass how they found out they will deny everything claiming that you must have been over heard by someone and that things that the ass kisser said to you were also the talk of the workplace.
The ass kissing brown noser will then talk with the management telling them your ideas of how to increase productivity, claiming your ideas as their own, this is normally the time that you find out their true colors, the management lavish the ass kissing brown noser with the praise and the respect that the ass kisser craves so much. the ass kissing brown noser suddenly finds that they have no more time for you and moves on to the next victim.
99.9% of the time you will find a Photograph of the ass kissing brown noser proudly displayed in the works canteen as Employee of the Month.
School is a place of learning it's where we learn to read and write, we learn science and mathematics as well as a whole host of other subjects, the results of which help us to enrich our minds and further our future career prospects when we start making our own way in the world.
Some things that we learn in school though are not taught to us in any class room, things that stand us in good stead for our whole lives and make us more aware of the people around us. We learn who we can or cannot trust, who we can be friends with who to stay away from, we quickly learn who the bullies are and most importantly who the ass kissers.
At school the Ass Kisser is easy to spot, trying too hard to become friends with everyone, they bring candy into school to share with everyone and they bring an apple in for the teacher every morning.
The first week or so is great you are getting candy for nothing and your new friend will do anything to please you, they will play the games that you want to play, go where you want to go and talk with whoever you want to talk too, they seem like the perfect friend until you break one of the school rules, if you drop a candy wrapper on the ground they run off and tell the teacher about your devious crime spree and you get into trouble for it whilst it makes them look good infront of the teacher.
The strange thing about it is after they have reported your offence they try to make it up to you by giving you more candy, asking you to play your favorite game or even giving you one of their favorite toys in the hope that you will remain their friend.
At school Ass Kissers lose friends very quickly and in the end up they become spies for the teachers, reporting every infraction by students that they see, having lost respect from the students they hope to earn it from the teachers who secretly hate them because of their constand tattle tales.
How to Spot an Ass Kisser at Work
By the time they have left the academical life the Ass kisser is a more devious person altogether and their brown nosing has become an art form.
Spotting the brown noser in the work place is a little more difficult, their tactics have completely changed, they have learned the act of stealth tactics and how to manipulate people to believe that they are a true friend or ally. most importantly they have learned how to disagree with your views in situations where you will not be offended therefore you still think of them as a friend.
The first day that you start a new job, people want to know more about you, what you did before, where you come from, your hobbies and interests if you have any common aquaintancies and so forth.
The ass Kisser tends to share the same hobbies and interests as you and always has the same sort of background as you came from, quick thinkers they come up with a story which resembles your life but with a few embelishments that will make you feel a little sympathetic toward them, for example they would say that they went to the same school as you but they hated it because they were being constantly bullied.
The Ass Kisser at work is a listener more than a talker so much so that you begine to confide in them sharing your thoughts about your co-workers and your superiors why you like this person why you dont like another,what you think of the job and ideas that that you have come up with to improve the productivity of the workplace.
The brown noser then uses his skills by telling the biggest gossip in the workplace what you have said about your co-workers and superiors and the rumours begin about you. if you ask the kiss ass how they found out they will deny everything claiming that you must have been over heard by someone and that things that the ass kisser said to you were also the talk of the workplace.
The ass kissing brown noser will then talk with the management telling them your ideas of how to increase productivity, claiming your ideas as their own, this is normally the time that you find out their true colors, the management lavish the ass kissing brown noser with the praise and the respect that the ass kisser craves so much. the ass kissing brown noser suddenly finds that they have no more time for you and moves on to the next victim.
99.9% of the time you will find a Photograph of the ass kissing brown noser proudly displayed in the works canteen as Employee of the Month.
Tuesday, May 11, 2010
Insurance Industry of Indonesia
Dozens of smaller life and general insurance firms may have to be merged with bigger ones or seek new investors to meet the new minimum equity-capital requirements, industry players and experts say.
“Merger-and-acquisition activities will be necessary in the future to ensure the continuity of the insurance industry in Indonesia,” Adi Purnomo Wijaya, director of PT Manulife Indonesia, said on Wednesday during an industry seminar.
The government issued a regulation in 2008 requiring domestic insurance companies to have minimum equity capital of Rp 40 billion ($4.44 million) by the end of this year, and Rp 70 billion by the end of 2012. The level will be increased to Rp 100 billion by the end of 2014.
Companies failing to comply with the regulation will have to shut down.
Experts said some small insurance companies were finding it difficult to meet the end-2010 capital requirement.
“This would mean that the smaller insurance firms would have to merge [with bigger ones] to meet the new requirement and continue operating,” said Alberto Hanani, an analyst with consultancy Beda & Company.
He estimated that 14 life insurance companies would not be able to meet the 2010 requirement if their owners failed to inject fresh capital or find new investors. “Out of the 14 companies, five of them actually have negative equity,” Alberto said.
Meanwhile, 24 general insurance companies are facing a similar fate, he said, adding that at least one had negative equity.
Based on the latest data, there are 90 general insurance companies and 46 life insurance companies in Indonesia.
Fuad Rahmany, chairman of the Capital Market and Financial Institutions Supervisory Agency (Bapepam-LK), said the tougher requirement was intended to improve the financial health and competitiveness of the country’s insurance industry.
Evelina Pietruschka, chairwoman of the Indonesian Life Insurance Association (AAJI), said the domestic insurance industry was alluring to investors, both domestic and overseas, because of the huge room for growth.
She said the market size of the industry was about Rp 89.5 trillion. “By 2015, we hope that it will grow to Rp 500 trillion,” she said.
Thursday, May 6, 2010
Leadership: Or Management
Leadership and management are two notions that are often used interchangeably. However, these words actually describe two different concepts.
Leadership is a facet of management
Leadership is just one of the many assets a successful manager must possess. The main aim of a manager is to maximize the output of the organization through administrative implementation. To achieve this, managers must undertake the following functions:
• organization
• planning
• staffing
• directing
• controlling
Leadership is just one important component of the directing function. A manager cannot just be a leader- he also needs formal authority to be effective. For any quality initiative to take hold, senior management must be involved and act as a role model. This involvement cannot be delegated.
In some circumstances, leadership is not required. For example, self motivated groups may not require a single leader and may find leaders dominating. The fact that a leader is not always required proves that leadership is just an asset and is not essential.
Differences in Perspectives
Managers think incrementally, whilst leaders think radically. Managers do things right, while leaders do the right thing. This means that managers do things by the book and follow company policy, while leaders follow their own intuition, which may in turn be of more benefit to the company. A leader is more emotional than a manager. "Men are governed by their emotions rather than their intelligence".
Subordinate As A Leader
Often with small groups, it is not the manager who emerges as the leader. In many cases it is a subordinate member with specific talents who leads the group in a certain direction. "Leaders must let vision, strategies, goals, and values be the guide-post for action and behaviour rather than attempting to control others."
Loyalty
Groups are often more loyal to a leader than a manager. This loyalty is created by the leader taking responsibility in areas such as:
• Taking the blame when things go wrong.
• Celebrating group achievements, even minor ones.
• Giving credit where it is due.
The Leader Is Followed. The Manager Rules
A leader is someone who people naturally follow through their own choice, whereas a manager must be obeyed. A manager may only have obtained his position of authority through time and loyalty given to the company, not as a result of his leadership qualities. A leader may have no organizational skills, but his vision unites people behind him.
Management Knows How It Works
Management usually consists of people who are experienced in their field, and who have worked their way up the company. A manager knows how each layer of the system works and may also possess a good technical knowledge. A leader can be a new arrival to a company who has bold, fresh, new ideas but might not have experience or wisdom.
Conclusion
Managing and leading are two different ways of organizing people. The manager uses a formal, rational method whilst the leader uses passion and stirs emotions.
Leadership is a facet of management
Leadership is just one of the many assets a successful manager must possess. The main aim of a manager is to maximize the output of the organization through administrative implementation. To achieve this, managers must undertake the following functions:
• organization
• planning
• staffing
• directing
• controlling
Leadership is just one important component of the directing function. A manager cannot just be a leader- he also needs formal authority to be effective. For any quality initiative to take hold, senior management must be involved and act as a role model. This involvement cannot be delegated.
In some circumstances, leadership is not required. For example, self motivated groups may not require a single leader and may find leaders dominating. The fact that a leader is not always required proves that leadership is just an asset and is not essential.
Differences in Perspectives
Managers think incrementally, whilst leaders think radically. Managers do things right, while leaders do the right thing. This means that managers do things by the book and follow company policy, while leaders follow their own intuition, which may in turn be of more benefit to the company. A leader is more emotional than a manager. "Men are governed by their emotions rather than their intelligence".
Subordinate As A Leader
Often with small groups, it is not the manager who emerges as the leader. In many cases it is a subordinate member with specific talents who leads the group in a certain direction. "Leaders must let vision, strategies, goals, and values be the guide-post for action and behaviour rather than attempting to control others."
Loyalty
Groups are often more loyal to a leader than a manager. This loyalty is created by the leader taking responsibility in areas such as:
• Taking the blame when things go wrong.
• Celebrating group achievements, even minor ones.
• Giving credit where it is due.
The Leader Is Followed. The Manager Rules
A leader is someone who people naturally follow through their own choice, whereas a manager must be obeyed. A manager may only have obtained his position of authority through time and loyalty given to the company, not as a result of his leadership qualities. A leader may have no organizational skills, but his vision unites people behind him.
Management Knows How It Works
Management usually consists of people who are experienced in their field, and who have worked their way up the company. A manager knows how each layer of the system works and may also possess a good technical knowledge. A leader can be a new arrival to a company who has bold, fresh, new ideas but might not have experience or wisdom.
Conclusion
Managing and leading are two different ways of organizing people. The manager uses a formal, rational method whilst the leader uses passion and stirs emotions.
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