Radical Feminism Versus Liberal Feminism

Feminist theories are an extension of feminism into theoretical and philosophical discourse. They aim at understanding of the nature of gender inequality . They in turn examine women’s social roles and life experiences . While in general some provide a critique of social relationships . Most feminist theories also focus on analysing gender inequality and the promotion of women’s rights, interests and issues . Among such theories are the Liberal feminism and the Radical feminism theories. While Liberal and Radical feminism both seek to ensure that women have access to resources and human rights in a gender equal environment they however do not necessarily employ similar methods in achieving these results. Each has its own distinct reason behind whatever methods they engage to achieve their goals. Wikipedia the free internet dictionary defines feminism as â€Å"the belief that women have equal political, social, and sexual, interlectual and economic rights as men do. It a discourse that involves various movements, theories and philosophies which are concerned with the issues of gender differences . The adaptation of the equality for women and the campaign for women’s rights and interests†. Ritzer (1992) indentifies feminism as that board of theories which analyse the social world of the point of views of women and other minority groups and the major objective is to investigate the situations and experience of women in diverse societies. Britannica encyclopaedia indentifies the term feminism as used to describe a political or economic, cultural, or economic movement aimed at establishing equal rights and legal protection for women. It involves political, cultural sociological theories . As well as philosophises concerned with issues of gender differences. It also is a movement that advocates for women’s rights and interests. Patriarchy according to Robert (1991) is â€Å"derived from a Greek word Patria means father and arche means to rule, beginning, and origins. A male head of the family excising autocratic authority or by extension a member of the ruling class, government of a society controlled by senior men. † Scafer (2000) describes a radical group as a group that is set apart from others because of obvious physical differences. According to Bryson in Haralambos and Holborn (2000), â€Å"radical feminism is a theory that views women as an oppressed group which has to struggle for its liberation against its oppressors. † According to Harton and Hunt , â€Å"a liberal is one who accepts the social system as basically sound but feels that extensive reforms maybe needed. † Liberal feminism is the first form of feminism recorded; it asserts the equality of men and women, through political and legal reform. It’s mostly individualistic thus it focuses mainly on women’s ability to show and maintain their equality through their own action and choices . It looks closely at the interactions that occur between men and women in the public sphere . Liberal feminism cites such interactions as the starting ground from where to transform society into a more gender equitable place . However other issues important to liberal feminists also include reproductive rights , abortion access, sexual harassment voting , education , fair compensation for work , affordable health care , and bringing to light the frequency of sexual and domestic abuse against women. This philosophy tends to have a neutral vision towards different gender. It requires women to mould themselves to fit a citizenship that already exists. On the other hand Radical feminism is a movement that got its inspiration largely from the Marxist theory. It addresses issues Liberal feminism overlooked. It is a â€Å"current† within feminism that pays a great deal of attention to the theory of patriarchy. According to Haralambos, Horlborn and Heald (2000), â€Å"Radical feminism blames the exploitation of women on men. † The term Radical is derived from the Latin word Radix, radic, meaning the root. Radical feminist strongly believe that the root cause of the oppression of women emanates from the patriarchal society that they exist in. The main perpetrators being male. They identify patriarch as a system of power that organises society into a complex of relationships based on an assumption of males being the more superior of the sexes. The end result in such societies is the oppression of women by men . Radical feminists identify only one solution, to challenge and completely overthrow patriarchy by whatever means possible . Including opposing standard gender roles. Whatever they see as male oppression of women calls for a reordering of society†, Wikipedia the internet free dictionary. Liberal feminists generally work for the eradication of institutional bias and the implication of better laws. They legally challenge ideas and practices that result in women being seen as second class citizens. They do not challenge capitalism, patriarchy or any other fundamental structures of society. They a dvocate for transformational changes. Liberal feminists wish to achieve gender equality by working with the system rather than over throwing it , or example liberals do not call for the abolishment of the marriage institution instead they want the institution to be structured in such a way that it is not oppressive and imbalanced . In contrast Radicals are extremists and they strongly believe in a revolutionary change. Radicals on the left wing according to Henslin (1995) believe that subjugation of women is the most basic and fundamental cause of oppression. Radicals therefore believe that the only way to deal with that oppression is to have a complete radical change . They unlike the liberals, they call for the eradication of the existing structures that result in women being oppressed. Campbell and Warsaw (1970) postulate that radical feminism aims to challenge and over throw patriarchy, opposing gender roles and what they identify as male oppression of women. Liberal feminist movement is preferred by government than other forms of feminism movement’s. The liberals see value in working with the system therefore usually the liberal feminists work hand in hand with the governments. For example in the United States of America Liberal Feminism have historically worked for the ratification of the Equal Rights Amendment which ensures that men and women are treated as equals under democratic laws that also influence important spheres of women’s lives including reproduction, work and equal pay. In Britain they supported such measures as the Sex discrimination Act (1975) and the Equal Pay Act (1970) in the hope that these would help end discrimination. Were as radical feminists don’t work closely with the government and neither does the government desire to work with them. To them the government also represents within it patriarch. At the same time the government views the radicals more often than not undesirable as they advocate certain changes that do not necessarily work hand in hand with what the government desires. Most times conflict occurs between the two. Radical feminism places emphasis on the oppression of women by men . This idea distinguishes the Radical theory from the Liberal theory as the later concentrates on the oppression of both men and women. Unlike the radical feminists, liberal feminist take into consideration less dominant men who are oppressed by other men. Thus liberals view gender inequality as power that men have as a group over women and also the power that some men have over women. According to Valerie Bryson (1999) radical feminists see women as an oppressed group who had to struggle for their own liberation. Radical feminists view society and especially the society and especially the family as the key institution oppresses women in modern society. Similarly, liberal feminist also believe that the social system catalyses gender inequality. They believe that society should not impose separate roles for women and those they should be allowed to compete freely with men and they should enjoy the same privileges and opportunities. Radical feminists challenge and thrive to completely over throw patriarchy, by opposing the normal gender roles. They believe that male domination over women is as a result of gendered roles. Such roles have a diminishing effect on the importance of women is society. They argue that men exploit women because of the free domestic labour that they provide. Women are excluded from other important issues such as politics and positions of power and influence. On the same note liberal feminists identify gender roles as one of the main reasons responsible for gender inequality. They believe that childhood conditioning prepares the children for the inflexible and rigid gender roles that they take up in the future. Valarie Bryson (1999) identifies Radical feminism, â€Å"it tends to ignore variations in experience of oppression of women of different classes and ethnic background. Radical feminism originated from the west. Most radicals are white hence radical feminism tends to concentrate on those problems that affected the white women. Very little attention is paid to those that affected the black women. Similarly, liberal feminism originates from the western hemisphere hence most who subscribe to this school of thought are white women . According to Giddens (2004), â€Å"liberal feminists aim for gradual change in the political, economic and social systems of western societies. † Therefore liberal feminism too tends to ignore the experiences of women in other societies. The liberal feminists have played a huge rule in ensuring that women in Zimbabwe have access to resources and opportunities . They set up organisations that see to the welfare of women. For example the Musasa Project. This project aids mostly women who would have been subjected to violence and the aid is for free. It has assisted women to come to terms with issues such as physical abuse by spo uses and boyfriends as well as to help them realise that it is not right them to be abused in such ways. Likewise radical feminists have fought for women to have equal access as men to resources. Through doing so several groups have been formed by the Radical feminists in Zimbabwe organisations such as WOZA and Girl Child. WOZA, Women of Zimbabwe Arise is an organisation that was started in 2003 by women who felt compelled to empower female voices in Zimbabwe. Their main objective was to achieve social justice for women as well as to provide them with a forum on which they could speak about the things they want for their country. In conclusion both liberal and radical feminism provide women all over the world with a platform to share their experiences. They both involve the formation of organisations that provide a voice for women to be heard. While Liberal feminists challenge only ideas and practises that treat women as second class citizens. They concentrate mostly on the public sphere issues, for example representation off women in politics and women being paid equal salaries with men when performing similar jobs. While on the other hand the radical feminists challenge the private interaction that exists between men and women. They concentrate on the private sphere issues, for example non-rights to sexuality, rape and violence. The end of the day both theories work towards enabling women to achieve their full potential REFERANCES_ _ Charvet . J. (1982) Morden Ideologies Feminism En. wikipedia. org/wiki/Feminism Haralambos, M and Holborn. M, (2000) Sociology ;Themes and perspectives. Harper Collins, London _Henslin, J, M, (1995). Sociology :Alyn and Bacon London_ Rizter, G. (1992) Sociological Theory. McGraw-Hill, Ino, New York. _ _Schaefer R. T (2004) Sociology ; A Brief Introduction 5th Edition , McGraw , New York_ Giddens A Sociology 4_th Edition (2004) Blackwell Publishing _ Warsley , P. (1970). Introducing Sociology. Prengin Books, New York WOMEN’S UNIVERSITY IN AFRICA NAME ; Ndafadzwa Chuchu PROGRAM; Bsc (Hons) Management and Entrepreneurial Dev_ _ ID NUMBER ; WMG0308090028 LEVEL _ ; _1. 2 MODULE ; Gender in Enterprise *LECTURER *; Mrs Kashora QUESTION ; Compare and contrast Radical and Liberal Feminism

Organizational Behaviorâ€A Definition Essay

Stephen P. Robbins states in the â€Å"Organizational Behavior 9/e† textbook that Organizational Behavior is a field of study, because many people in the organizational field spend time examining the behavior of people (p.1) . I learned in my prior Organizational Behavior class in undergraduate school, that Organizational Behavior is a â€Å"fractional field† of study because of the various disciplines that it encompasses. There are disciplines such as Psychology, Sociology, Anthropology, and Economics, along with applied fields of study such as Industrial Psychology, Political Science, Labor Relations, Human Resource Management, and Organizational Development. For this reason, it is an â€Å"Applied Science.† Organizations themselves are ever changing, as are the people in them. The organizations adapt to change better than the people do. People are resistant to change, and are comfortable with what they know from past behaviors. Robbins states that, â€Å"thre e major aspects of behavior† are focused on when examining the behavior of people in work settings. The three aspects are â€Å"individuals, groups, and structures (p.1).† When examining individuals, there are three topics that are researched. These are how personality, attitudes, and motivation affect work (p.1). There is a lot of attention being paid to the behavior of employees of groups, because of the evolution of team formation over the last few years. Robbins states that people â€Å"work under a certain structure (p. 1).† This is where socialization and the organizational culture affect employees. Socialization is where an employee joins an organization, and forms expectations about what the organization will do for them, plus what they will do for the organization. The organizational culture is developed over time, and is a â€Å"pattern of shared values and beliefs.† There should be a fit between culture, people, tasks, strategy, and structure. This is why the research on Organizational Behavior is more of a â€Å"systematic study† than just relying on â€Å"intuition† alone (p. 1). It is believed that Organizational Behavior and Organizational Culture are tied together, and when the t wo are combined, the outcomes may affect performance. The best example that I have of Organizational Behavior, Culture, and Socialization being tied together in a work setting is when I worked for the Nutrition and Food Service (N&FS) Department a several years ago. The employees in the medical center kitchen were bonded together by  time in job. Most of the staff had been working together for years. They were not receptive to new employees, and I always loved to work. There were two or three â€Å"clicks† or groups. I was lucky and ended up with the â€Å"good employees† that liked to work. There was one group that were WG-3s and they thought that they were high enough in the organization that they did not have to do anything. I would do all of my work, and two other ladies, Carol, and Geraldine, would all get together and clean stock rooms and walk-in coolers. I had been told to slow down, because I was making the older people look bad to the supervisor. I told them that they were making themselves look bad. When I got a full-time job above some of the part-timers that had been there for years, I was â€Å"black-balled.† I had to tell my husband (married at the time) that they may call and tell him that I was having an affair (their favorite thing to do), and that he just had to ignore them. The old VA culture was one that employees could stand around and do nothing, while a few employees did everything. After a few employees of that service got fired, they learned that it was a â€Å"right to work† agreement and most have started to pick up the pace in recent years. Since I have been out of that job, I see the employees at break, and realize how much all have in common. I am in a wild position at this time. I have just learned that I was qualified for a job as a Supervisor in N&FS and am going to be scheduled for an interview. Since I know their past behaviors, I bet some of them are really hoping that I do not get the job, and the ones that told me to slow down, I bet they are really hoping that I do not get the job. References http://guest:guest@webct.prenhall.com/SCRIPT/Behavior/scripts/student/serve_page?920055142+Chapter1/notes3.htm. Robbins, Stephen P., 2002. Accessed from the Internet on March 5, 2002. Notes from prior Organizational Behavior lecture class from East Tennessee State University, 2000.

Case Study for Auditing Essay Example | Topics and Well Written Essays - 2000 words

Case Study for Auditing - Essay Example e aspects of this year’s audit of the financial statements, which might be regarded as high risk for Stanley Limited, include the distribution costs and the retained profit or loss from the viewpoint of income statements. From the perspective of financial presentation statement or balance sheet, the high risk aspect includes the trade payables as a part of current liabilities. From the viewpoint of the income statements, the significant aspect of distribution costs might be regarded as one of the high risk factors of this year’s audit of the financial statements of Stanley Limited. Fundamentally, the distribution costs which is also known as distribution expenses of any organisation are regarded as the expenses which are associated with the transfer of a product or commodity from the place of manufacturing to the ultimate position of the customers. Moreover, distribution costs or expenses also imply those expenses which are directly involved in order to transfer the commodities or the products from the warehouse to a person2. It has been identified that the distribution costs or expenses of Stanley Limited was increasing year after year and were becoming very much expensive as compared with other expenses i.e. administrative expenses and others. The main reason for considering the distribution expenses as a high risk factor is because the distribution costs or expenses directly affects upon the operating profit or loss of Stanley Limited. The main reasons for the increased distribution expenses of Stanley Limited can be due to its various expenses such as carriage on sales, selling expenses, salaries, travelling expenses and commission of the salesman among others. All these significant factors might constitute the distribution expenses as high risk factor for Stanley Limited3 In terms of the statements of the financial position or the balance sheet, the aspect of trade payables might be an important risk factor for Stanley Limited. Fundamentally, trade

How Big Global Businesses Compare Research Paper

How Big Global Businesses Compare - Research Paper Example Such results buoyed by strong growth in sales in North America. Thus, the revenue grew to three point eight billion euros. Due to the last year of the considerable change and reinvention, it enabled the company to expect the upcoming 2015 year to be a year of execution with expects annual sales to grow in all sectors, networks, mapping services, technologies and patents (Huuhtanen, 2015). While Nokia holds thirty-nine percent of the world market, it still faces severe competition from such companies as Apple and Google, which entered the market with their high-end products in 2007. Organizational culture is an important factor that influences companies in various contexts. Thus, it is important for establishing competitive advantages and it also impacts on organizational performance. The interest in culture has led to the development of different models, which aim is to explain organizational culture and its relevance for organizations (Dauber, Fink & Yolles, 2012). It is assumed that there are three models of culture within organization, which are the artifacts, the values and the assumed values. Schein believes that artifacts of the company are its dress code, work process and organizational structure. Business goals and strategies as well as company’s philosophies are the espoused values, which should be supported by the way company performs its activities and how these activities are managed. All shared values within the organization constitute assumptions of the company. While using Scheins model, business are able to understand cultural elements o f their organization and be  able to analyze the relationship between assumptions and common business practices. Using models gives possibility to change the basic assumptions of a given culture and hence improve the effectiveness of the company as well (Madu, 2011). Thus, for Apple, the main competitor of Nokia Company, the model of culture includes people with their innovative approach to the development of

Real Time flash flood forcasting Research Proposal

Real Time flash flood forcasting - Research Proposal Example Such a plan is aimed at raising the preparedness levels and making response activities by the local authorities’ and the general public more efficient especially during a flash flood3. Such plans integrate the use of technological variables of weather forecasting and GIS-based system for data management processing. This research is aimed at contributing to the development of integrating flash flood management plan in some flood prone areas. The most important things about planning for a flash flood is warning the general public and the response to the floods ensuring that loss of lives and property is minimal. Warnings about flash floods are transmitted by the meteorological departments and the hydrological services in various countries. In all flood management plans, organization and dissemination of information to warn the people is the most important thing4. The first element of a flashflood management strategy is finding out about all those who are at risk and whatever else is at risk. Risk is determined through assessing by establishing the hazards, the levels of exposure and the vulnerability of the people. The hazard entails the magnitude and the probability of occurrence of the flood5. This information can be given in form of maps which outline the borders of the areas at risk and their expected velocity6. Exposure on the other hand is the information of all those who are in danger as well as all what is in harms way. Vulnerability entails the expected losses which are looked at in terms of the geophysical, economic and the societal attributes of a given region. By establishing all the three elements enables those involved in the flood management to adopt the most effective strategies, be it to deal with engineering problems or dealing with the social challenges7. To establish the extent of the three elements, a risk analysis must be conducted. Metrological and hydrological data is essential in determining the hazard levels of an

Enlisting Open-Source Applications by U.S Department of Defense Case Study

Enlisting Open-Source Applications by U.S Department of Defense - Case Study Example Open-source software application is a recent technology which allows users of the web-based software to use, make modification to the source code, and distribute it. This paper looks at a case study of the implementation of this technology by the US Department of Defence.It assesses the security issues in the use of open-source software, as well as its pros and cons. The paper also evaluates the cultural changes required at DoD for the successive implementation of the system. The main security issues in the use of open-source software are those of ensuring confidentiality, availability and integrity of the information. Its use helps to reduce cost in addition to guaranteeing the user right to make modification to the software. Its implementation requires cultural change at the organization. Enlisting Open-Source Application by US Defence Department The US Department of Defence has contemplated to harness the benefits of open-source software. Open-source software is defined by Galliva n (2001, p. 281) as software which human-source readable source code is available for study, use, re-use, modification and redistribution by the users of the software. Having agreed that open-source software is similar to commercial software in almost all dimensions, DoD argues that it should be given an equal consideration when making a technology purchase decision. Open source software has a number of benefits that include a wide peer-review that can help to eliminate defects, exclusive modification rights that ensure speedy changes when needed and reduction in the cost. Open-source software allows for rapid prototyping. Despite its benefits, Department of Defence needs to be assured of the security of its information given the nature of the sensitive information the department handles. Security Issues To guarantee the Department of Defence the security of its data, several agencies have proposed measures to address this. The Defence Information System Agency (DISA) has issued ver sion two of software Forge to enable sharing of information and collaborative development of the software which is one way of ensuring security since the software developed will be tested to prevent any failure. This ensures stability of the software. Collaborative development helps to identify any problem that may occur and may have been foreseen by a single developer. They have also given a trial period to ensure that any problems with the software may be identified early before it is implemented for use by DoD. This is important since any failure of software after implementation could result in a disaster in case of data loss or unauthorised access. DISA has also introduced a closed computing-based version of Forge for classified environment, as seen in the case study. This is a measure to deal with security issue since some DoD information is usually classified and access to such information must be limited. Enlisting Open-Source Application Another security measure by DISA is i ts plan to add certificate services to Forge.mil to control access to information. Open-software Institute OSSI is also involved in licensing of where it has issued to different licences for government agencies and a free licence for learning institutions. From the case study, we learn that OSSI has copyrighted the software developed which is a move to protect the property rights of the team that developed the software. To increase security, I propose that Department of Defence uses both paid and volunteer reviewers to help identify any security flaws with the software, as proposed by Hoepman & Jacobs (2007, p. 81). This is important since paid reviewers may be able to unearth security flaws of the system rather than relying only on users. Advantages and Disadvantages of Open-Source Software Advantages The advantages of open-source software to a large organization presuppose that everyone has a right to change the source code

Classical Argument Essay Example | Topics and Well Written Essays - 1250 words

Classical Argument - Essay Example According to Carey, the National Public Radio, states that college students borrow very huge loans to supplement their stay in college. However, the government is also working very hard to ensure that the rates of borrowing loans for college students are low and the government does not care whether the students have borrowed loans surpassing the one trillion dollars. The government is also intending to double these rates since rumor has it, in order to enable the stay of the students comfortable in college. Eventually, this means that not only will the cost of college fees increases at the WVU university increase but also the amount the students will have to pay back in payment for loans are doubling. This arguments and matters may actually discourage other students anticipating on joining college when especially they think about the increasing cost of Fees and increasing money to pay back as loans after college. Although it is a pleasure that the government gives enough loans to the students, it is an advantage to wise students since they can decide to invest. In this case, the loans will help them positively in a better way. On the other hand, it is a disadvantage for the students will incur many debts with the government and thus it may become a great burden to the students who just do not utilize these loans and thus unless they find jobs on time, it may become very hard to repay the loans. Consequently, several changes have occurred in college tuitions over the last several decades. Tuition at colleges in the current generations cannot have any comparison to the college tuitions in the olden days. Following Feldman’s, Myths and Realities about Rising College Tuition, discusses the changes statistically, historically, and in a way that is not biased. In the past days, college tuition fee used to be very affordable and most people could afford it comfortably as compared to the current days where the college tuition fee is very high for the peasants to afford. This increasing of the cost of the college tuition is due to many factors, which include, one, the rising economy. The increasing cost of life has greatly affected the college tuition fee; this is because of the high prices for food and other household equipments and the increasing needs of the people. This in turn causes the lot of straining to the parents or guardians providing and catering for the college students. On the other hand, in the olden days, very few students qualified to join colleges, and thus this became very convenient for the institutions to provide very affordable accommodation, food and quality tuition at an affordable tuition fee. In addition, the cost of living had not yet risen to greater levels thus parents were very comfortable to pay the tuition fee. On the other hand, the government provided little loans to the students since the government also understood that the cost of life was affordable in comparison to the current cost of life in the colle ges. Life has generally become very demanding and expensive and thus the college students require more money. In the current days also, many students got admissions into colleges hence causing lot congestion into the institutions. The institutions require setting up more structures to accommodate the rising population of the institution

Madam C. J. Walker Essay Example | Topics and Well Written Essays - 1750 words

Madam C. J. Walker - Essay Example Walker. To the woman of today, the story of Madam’s (as she was called in her hey days) offers thrilling examples of how hard a black woman would have to struggle in a society prone to racial discrimination. What started out as her journey to build a career in entrepreneurship, Madam’s hair care and hair culture products business led her to become an icon in the world of slavery and discrimination that the blacks suffered in those days. Madam was always known to stay put at what she wanted. And it is from this basic nature that she found all the prosperity and success that marked her career and life. In the present article we analyze a few important lessons that every reader can take back from her life. As is well known, her life has been marked with incidents of historical importance for the American black community, and we try to study as many of them as we can. Born into a slave family, Sarah Breedlove held in her personality all the toughness that is characteristic to the African community, and this trait stayed with her till the end of her life. Not much is known to her family as to what happened in her early days. She is known to have been married at the age of fourteen and widowed at the age of twenty, with a child to earn her living for. She fended for her family by working as a washerwoman and around this point in time, she realized she was losing hair a little too much. She discovered a formula to stop the hair fall and grow back the lost tresses. In what she has herself called a magical dream, Madam discovered the formula all by herself, prepared the potion, applied it to the hair, and obtained excellent results. Without the toughness of her personality, no woman would have had the courage to develop a hair care product when she was toiling in the midst of poverty. Conviction they say can help the dying survive death. Madam’ s

In terms of Human Rights, how revolutionary was the French Revolution Essay

In terms of Human Rights, how revolutionary was the French Revolution - Essay Example Most of these events have had momentous effects on human rights, especially as most of these events have involved bloodshed and violence. One of these events is the French Revolution. The French Revolution from 1789 to 1799 was a period of political and social change in France and in the rest of Europe. Its causes and its eventual results became a turning point in the clamour for better human rights in France and Europe. This paper shall now discuss the statement: in terms of human rights, how revolutionary was the French Revolution. It shall start with an overview of the French Revolution, and then it shall specifically discuss the impact of the war in terms of securing and protecting human rights. It will end with summary and concluding remarks. This essay is being carried out in order to establish a clear and comprehensive discussion of human rights evolution and how events in history have impacted on its formulation. Body Overview of the French Revolution The French Revolution wa s launched in 1789 after the convocation of the Estates-General. Initially, members of the Third Estate proclaimed the Tennis Court Oath in June of 1789; this was followed by the assault on the Bastille, later, by the Declaration of the Rights of Man and of the Citizen, and then, the march on Versailles which pushed the royal court into Paris by October 1789 (Doyle, 2003). In the years that followed, tensions rose between the liberal assemblies and the right wing monarchy; these were parties which were bent on preventing any major reforms from being passed (Doyle, 2003). In 1792, a republic was established and a year later King Louis XVI was executed. The French Revolutionary Wars were initiated in 1792; and it led to French victories which ensured the domination of the Italian Peninsula, the Low Countries and some of the western territories of the Rhine (Doyle, 2003). For a long while, these territories were elusive to the previous French regimes. Various causes and complaints led to the revolution, eventually leading to the rise of Robespierre and the Jacobins, as well as the dominance of the Committee of Public Safety in their Reign of Terror from 1793 to 1793 where thousands were killed (Doyle, 2001). As the Jacobins lost their power and Robespierre was executed, the Directory gained control of France in 1795 until 1799, when Napoleon Bonaparte took over. At the end of the Napoleonic Wars and his First Empire, an absolute monarchy was established; two smaller revolutions were later successfully launched and in the years following, France was again governed by regime changes (Doyle, 2001). The modern age followed in the wake of the French Revolution, and the emergence of the republics, as well as the liberal governments, the birth of secularism, the establishment of modern ideals, and the launching of total war were events which dominated the era of the French revolution (Doyle, 2001). Declaration of the Rights of Man and of the Citizen The French Revolutio n also eventually led to the establishment of various human rights laws and policies; specifically, it led to the Declaration of the Rights of Man and of the Citizen (Censer and Hunt, 2001). This declaration specified as universal the individual and the general rights of the realm estates. It is based on the concept of natural right, as well as universal rights which are valid at all times based on human nature and inherent human

Managing Cost of Quality Essay Example for Free

Managing Cost of Quality Essay Article Reference: Schiffauerova, A. and Thomson, V., â€Å"Managing cost of quality: Insight into industry practice†, The TQM Magazine, 2006 Abstract This paper reports on the study of the quality costing practices at four large successful multinational companies. All four companies use systematic quality initiatives; however, a formal cost of quality (CoQ) methodology was only employed at one of them. This is in agreement with the literature findings arguing that a CoQ approach is not utilized in most quality management programs. The article discusses and compares the quality programs of all four companies and explains the benefits of the eventual adoption of a CoQ approach in each case. The analysis provides a new insight into company practice, useful not only for academic research, but also for use by industry. Keywords: Cost of quality, CoQ, quality costing, industrial practice Introduction Improving quality is considered by many to be the best way to enhance customer satisfaction, to reduce manufacturing costs and to increase productivity. Any serious attempt to improve quality must take into account the costs associated with achieving quality, since nowadays it does not suffice to meet customer requirements, it must be done at the lowest possible cost as well. This can only happen by reducing the costs needed to achieve quality, and the reduction of these costs is only possible if they are identified and measured. The identification itself is not straightforward because there is no general agreement on a single broad definition of quality costs. However, according to Dale and Plunkett (1995), it is now widely accepted that quality costs are the costs incurred in the design, implementation, operation and maintenance of a quality management system, the cost of resources committed to continuous improvement, the costs of system, product and service failures, and all other necessary costs and non-value added activities required to achieve a quality product or service. Measuring and reporting these costs should be considered a critical issue for any manager who aims to achieve competitiveness in today’s markets. There are several methods that can be used to collect, categorize and measure quality costs. The traditional P-A-F method suggested by Juran (1951) and Feigenbaum (1956) classifies quality costs into prevention, appraisal and failure costs. Prevention costs are associated with actions taken to ensure that a process provides quality products and services, appraisal costs are associated with measuring the level of quality attained by the process, and failure costs are incurred to correct quality in products and services before (internal) or after (external) delivery to the customer. The cost categories of Crosby’s model (Crosby, 1979) are similar to the P-A-F scheme. Crosby sees quality as â€Å"conformance to requirements†, and therefore, defines the cost of quality as the sum of price of conformance and price of noncon formance (Crosby, 1979). The price of conformance is the cost involved in making certain that things are done right the first time and the price of non-conformance is the money wasted when work fails to conform to customer requirements. Another formal quality costing approach is the process cost model, which was developed by Ross (1977) and first used for quality costing by Marsh (1989); it represents quality cost systems that focus on process rather than products or services. Several references propose CoQ models that include the additional category of intangible costs. These are costs that can be only estimated such as profits not earned because of lost customers and reduction in revenue owing to non-conformance. The importance of opportunity and intangible costs for quality costing has been recently emphasized in the literature. Dale and Plunkett (1999) describe a less formal method based on collecting quality costs by department. Another recently proposed CoQ methodology is a method based on a team appro ach, in which the aim is to identify the costs associated with things that have gone wrong in a process (Robison, 1997). No matter which quality costing approach is used, the main idea behind the CoQ analysis is the linking of improvement activities with associated costs and customer expectations, thus allowing targeted action for reducing quality costs and increasing quality improvement benefits. Therefore, a realistic estimate of CoQ, which is the appropriate tradeoff between the levels of conformance and non-conformance costs, should be considered an essential element of any quality initiative and a crucial issue for any manager. A number of organizations are now seeking both theoretical advice and practical evidence about quality related costs and the implementation of quality costing systems. A reasonable amount of detailed information on various methods of categorization, collection and measurement of quality costs can be found in the literature (Plunkett and Dale, 1987; Williams et al., 1999; Schiffauerova and Thomson, 2004). However, there are only a few published, practical examples from indus try that give specifics about the costs that are included or excluded in quality costing and about how the costs are practically collected and measured. More detailed descriptions of CoQ systems from industry can be found in Whitehall (1986), Hesford and Dale (1991) and Purgslove and Dale (1996). This paper intends to contribute to this area by providing an analysis of the quality costing practices of four successful companies. Research Intent and Methodology The objective of this research was to obtain and analyze data concerning the practices of successful companies in the area of quality management. Specifically, the main interest was to investigate if these companies collect, measure and monitor quality costs, which kinds of costs were considered in the calculations, and whether any formal CoQ approach was used. The analysis provided a new insight into company practice, useful not only for academic research, but also for use by industry. Four companies were selected to participate in the research. The main objective of the selection was to identify the organizations with well established quality programs belonging to the different industrial sectors. Companies serving the same market could have been reluctant to share details concerning their quality practices with competition. This paper keeps the company names confidential and refers to them as Company A, B, C and D. A benchmarking session took place at McGill University. The quality management programs running at the four companies were described by company representatives. The organizations utilized this occasion as an occasion to obtain new information on the practices used at other companies and to mutually compare their experiences, efforts and successes. Summary of the Benchmarking Session This section summarizes the initiatives in the field of CoQ for the four participants. A comparative analysis of their quality strategies and final remarks follow. Company A Company A is a telecommunication company. It has very complex products, and therefore, the number of opportunities for defects per unit is very high (45,000 defect opportunities per assembly). However, Company A’s customers expect zero defects. Quality initiatives therefore play an important role in the company’s product management. Company A’s model for cost of quality measurement and calculation follow the P-A-F model, where CoQ = (P + A + F (internal + external) + other costs)/cost of goods sold. Company A is well aware of formal cost of quality methods and it has clearly determined its CoQ definitions. It knows exactly what are its conformance and non-conformance costs; however, it struggles to find out the shape of its CoQ curves, and hence, an optimum CoQ tactic. The search for an optimum CoQ is difficult because the business cycle changes often (every 2 years or less); product lines are released in phases, and component obsolescence and multiple engineering changes are quite common. Every change causes a new search for an optimum CoQ; moreover, different product lines require separate review, and variable volumes reduce optimization opportunities. Company A uses an activity based management approach, which means that it uses activity-based costing (ABC) to determine cost categories. It maps financial categories into activity costs, and activities performed at cost centers are rolled up to aggregate quality costs and percentages. In this way, the company obtains exact information about every category: prevention costs, appraisal costs, as well as internal and external failure costs. An example of activity costs is given in Table I, and the resulting CoQ chart is shown in Figure 1. Table I: Example of activity costs in Company A Activity primary OPD Change Management Internal Quality Issues External Quality Issues DFX, NPI support Proto Support PLC Deliverables Mfg Tools Quality Reporting Other Cost of quality category Failure Internal Prevention Failure Internal Failure External Prevention Prevention Appraisal Prevention Appraisal Cost of Business Totals Activity % 8% 12% 17% 9% 4% 6% 22% 6% 10% 6% 100% Cost categories Salaries Depreciation Suppliers Others Company A uses other metrics for performance comparisons, such as ‘new versus mature product’ or ’part number based CoQ ratio’. CoQ is measured at individual test stages, which allows trend analysis and comparison using mature product as the benchmark for new product. Figure 2 shows the decreasing trend of CoQ for manufacturing operations. The graph shows a decrease for all CoQ components; however, it is failure costs which show the biggest reduction, about 40 % over 18 months. The breakdown of CoQ and its cost values are measured quarterly. % Figure 2: CoQ in manufacturing operations for Company A shown on a relative cost scale. Company A has been using their CoQ methodology successfully. The company declares savings in quality costs, has quality improvement in every part of their process, and achieves very aggressive improvement targets. Moreover, the end customer directly benefits from the inhouse quality initiative. As a result, customer satisfaction is increasing. Company B Company B is a multinational microelectronics company, which dedicates a lot of effort to quality improvement. Their far-reaching and successful quality improvement program is the main axis of their quality initiatives. The program includes continuous improvement focused on process as well as extensive education and training on quality for all employees. Despite the fact that there is a great interest in reducing non-conformance cost, Company B does not measure, report or chart CoQ. It does not use any formal CoQ model and does not try to optimize cost of quality. Nevertheless, it does reduce cost due to poor quality through its continuous improvement activities. The company has a strong operations and process focus, where emphasis is put on process yield and cycle time improvement. It believes that a continuous quality improvement program focused on process will provide the opportunities for quality improvement and thus reduction in cost of quality. Company C Company C is in the aerospace industry and emphasizes products with near zero defects. Company C describes its cost of poor quality model as an iceberg philosophy, where just a few categories for poor quality cost are measured and monitored. This is, however, just the tip of the iceberg, since most of the cost factors leading to poor quality are non-visible or completely hidden (and non-quantifiable). Company C has implemented a process that allows tracking of all non-quality events and associated root causes as well as corrective actions and lessons learned. It puts full attention into measuring the cost of poor quality. It has 4 main quality ratings, which measure nonconformities (scrap, rework, etc.), poor adherence to specifications (internal, external, customers’, suppliers’), number of defective parts in parts per million, and on-time delivery. Their cost of non-quality is systematically reduced through a corporate-wide initiative based on continuous improvement. It also uses a sophisticated IT system for tracking quality. Although Company C has had success in improving the value of non-conforming quality costs, it does not use any CoQ model, and it does not include the cost of quality among its calculation elements. Company D Company D is a manufacturer of home products. It has set its quality level at a fixed warranty rate, and it attempts to optimize its quality effort to achieve this target. At the time of the benchmarking session, the company did not measure CoQ; however, it was planning to do so and was building a CoQ model. The envisioned CoQ program was based on a P-A-F model. The strategy of Company D was to directly attack failure costs in an attempt to drive them down, to invest in the right prevention activities to bring about improvements, to reduce appraisal costs according to achieved results, and to continuously evaluate and redirect prevention efforts to gain further improvements. Discussion Table II shows a comparison of the quality initiatives and CoQ effort carried out by the four companies. The following discussion is focused on the relation between the quality strategies and the industrial sectors, on the kinds of CoQ models used, on the satisfaction with company efforts, the results stemming from the quality costing programs, and the recommendations by the authors of this paper. Table II: Comparison of quality initiatives of four companies Company A B C D COC CONC P-A-F ABC Quality costs CONC + COC CONC CONC CONC Formal CoQ model P-A-F + ABC none none none Quality efforts intensive intensive intensive moderate Program satisfaction high high high moderate cost of conformance cost of non-conformance traditional model including: prevention + appraisal + failure costs activity-based costing Quality Strategies The business environment, which is the industry sector and product line, dictates the strategy adopted by the companies to assure achievement of the required level of quality. Companies A, B and C all work in high-tech industries that require very high levels of quality, and therefore, they all have quite elaborate quality and productivity improvement systems with the objective to achieve zero or near zero defects. Company D, which serves home product markets, uses a fixed rate of return through its warranty policy as its quality limit. The company, however, does have a continuous improvement program. Quality Costs Table II suggests that Company A is the only one that in fact measures both kinds of quality costs, conformance and non-conformance. This allows the company to search for the right balance between the amount spent on quality and the resulting benefits. Companies B and C both regard reducing non-conformance cost as a high priority, and therefore, they exert substantial efforts in measuring and monitoring failures and other nonconformances. At the same time, they use elaborate, systematic quality improvement programs in order to reach a zero defect quality level. The direction of these initiatives is consistent with the industry quality environment, which tolerates absolutely no defect, no matter what the cost is. Conformance costs are consequently given much less attention in the quality management programs and measuring them together with the cost of non-conformance is therefore disregarded. The situation for Company D is however quite different. Even though the company also does not measure conformance costs, the nature of its own quality strategy suggests that it would benefit greatly if it started doing so. Identification and measurement of both kinds of the quality costs would certainly improve the quality policy that Company D follows. The policy has a determined rate of return as its quality limit. Being able to find an appropriate trade-off between conformance and non-conformance costs would help Company D determine an optimal level of effort towards achieving quality. Formal CoQ Methods Literature (for example, Porter and Rayner, 1992; Schiffauerova and Thomson, 2004) suggests that, if quality costs are measured by companies, then the classical P-A-F model is the one most frequently used in practice. Even within the limited sample of four companies, P-A-F was the only model encountered. Company A is currently calculating its quality costs according to the tradit ional categorization of prevention, appraisal and failure costs. Moreover, Company D claims that it is planning to utilize this model in the near future as well. The results of this research therefore confirm other researchers’ findings on the frequency of the use of the P-A-F method in industry. Focus by companies on the classical P-A-F methodology is not surprising; however, there are several other alternatives available for monitoring CoQ. Other quality costing methods, such as Crosby’s model or process cost model, are being used with success (Schiffauerova and Thomson, 2004). Every company has to choose an appropriate CoQ method that suits its needs and its situation best. For a detailed checklist of the issues to be considered when deciding on a CoQ approach, see Dale and Plunkett (1995) Activity-based costing (ABC) is considered to be more compatible with quality cost measurement systems than traditional accounting. Although most CoQ measurement methods are activity/process oriented, traditional cost accounting establishes cost accounts by the categories of expenses instead of activities. Thus, many CoQ elements need to be estimated or collected by other methods. There is no consensus method on how to allocate overheads to CoQ elements and no adequate method to trace quality costs to their sources (Tsai, 1998). The use of ABC for a CoQ calculation is therefore an appealing alternative, and Company A is benefiting from this powerful combination. The employment of a CoQ approach together with ABC enables Company A to obtain exact information about every CoQ category: prevention costs, appraisal costs as well as internal and external failure costs. Companies B and C do not utilize any formal quality costing system. This is in agreement with the common suggestion that the CoQ approach is not fully appreciated by organizations and the practical use of formal quality costing in industry is quite rare. Satisfaction with Quality Efforts The quality initiatives of companies A, B, and C are very elaborate and the amount of effort is intensive. Whether they use a formal CoQ method or they solely aim at a reduction in the cost of poor quality, the companies obtain excellent results from their quality programs. All three companies mentioned a high satisfaction with their quality efforts during the benchmarking session. Judging by the success of Company A with its CoQ program, we suggest that companies B and C would benefit from measuring CoQ, and that they would be surprised if they knew their real quality costs. These companies should select an appropriate CoQ model that suits the company’s situation and implement the quality costing methodology in order to improve the efficiency of their quality initiatives. Monitoring quality costs would allow them to better identify target areas for cost reduction and quality improvement. Moreover, sufficient savings should occur to justify CoQ measurement expenses. Company D has a continuous improvement program that brings it moderate results and is already looking to improve it by implementing a CoQ strategy. As mentioned above, the implementation of a suitable CoQ method would secure reduced costs and improved quality benefits for Company D. Summary Even though quality is nowadays considered to be a critical success factor for achieving competitiveness, the CoQ approach is not fully appreciated by organizations, and only a minority of them use formal quality costing methods. The four companies that participated in the benchmarking session with McGill University on cost of quality have systematic quality initiatives, and have been successful in improving quality and reducing the cost of nonconformance. However, the only company that measures cost of quality and uses a formalized CoQ model is Company A. Company D is at the point of starting to use this quality measur ement tool as well; however, it is at the beginning of this path. On the other hand, Company B and Company C focus their quality efforts solely on continuous quality improvement. They measure, monitor and work mostly with the cost of non-conformance, and do not formally include cost of conformance in their analysis. It was recommended that companies B, C and D set up a suitable formal quality costing system compatible with the needs and the situation of each company. For companies B and C this program will mainly facilitate identification of the target areas for quality improvement and cost reduction in quality effort. For Company D it would also help balance its quality costs and establish an optimal level of effort towards achieving quality. CoQ programs should be part of any quality management program. The methodology is not complex and is well documented. CoQ programs provide a good method for identification and measurement of quality costs, and thus allow targeted action for reducing CoQ. Further education on the practical level is needed for managers to understand better the CoQ concept in order to appreciate fully the benefits of the approach, to increase their ability to implement a CoQ measurement system and to save money. References Crosby, P.B. (1979), Quality is Free, New York: McGraw-Hill Dale, B.G. and Plunkett, J.J. (1995), Quality Costing, 2nd edition, Chapman and Hall, London Dale, B.G. and Plunkett, J.J. (1999), Quality Costing,3rd edition, Gower Press, Aldershot Feigenbaum, A.V. (1956), â€Å"Total quality control†, Harvard Business Review, Vol.34, Hesford, M.G. and Dale, B.G. (1991), â€Å"Quality costing at British Aerospace Dynamics†, Proceedings of the Institution of Mechanical Engineers, Vol.205 (G5), p.53 Juran, J.M. (1951), Quality Control Handbook, 1st edition, McGraw-Hill, New York Marsh, J. (1989), â€Å"Process modeling for quality improvement†, Proceedings of the Second International Conference on Total Quality Management, p.111 Plunkett, J.J. and Dale, B.G. (1987), â€Å"A review of the literature on quality-related costs†, International Journal of Quality and Reliability Management, Vol.4, No.1, p.40 Porter, L.J. and Rayner, P. (1992), â€Å"Quality costing for total quality management†, International Journal of Production Economics, Vol. 27, p.69 Purgslove, A.B. and Dale, B.G. (1996), â€Å"The influence of management information and quality management systems on the development of quality costing†, Total Quality Management, Vol.7, No.4, p.421 Robison, J. (1997), â€Å"Integrate quality cost concepts into team problem-solving efforts†, Quality Progress, March, p. 25 Ross, D.T. (1977), â€Å"Structured analysis (SA): A language for communicating ideas†, IEEE Transactions on Software Engineering, Vol.SE-3, No.1, p.16 Schiffauerova, A. and Thomson, V. (2006), â€Å"A review of research on cost of quality models and best practices†, International Journal of Quality and Reliability Management, Vol.23, No.4 Tsai, W.H. (1998), â€Å"Quality cost measurement under activity-based costing†, International Journal of Quality and Reliability Management, Vol.15, No.6, p.719 Whitehall, F.B. (1986), â€Å"Review of problems with a quality cost system†, International Journal of Quality and Reliability Management, Vol.3, No.3, p.43 Williams, A.R.T., van der Wiele, A. and Dale, B.G. (1999), â€Å"Quality costing: a management review†, International Journal of Management Reviews, Vol.1, No.4, p.441

Mode of Operation and Potential Risks of Hedge Funds

Mode of Operation and Potential Risks of Hedge Funds Xie Chao Introduction Hedge fund refers to the financial futures and financial options and other financial derivatives financial funds to high risk and speculation as a means to profit for the purpose of combination and the financial organization. hedge funds are the latest investment theories and extremely complex financial market operation skill based, full use of various financial derivatives products lever effectiveness, high risk, high return investment model. The traditional sense of the hedge is a kind of behavior or strategy aimed at reducing the risk of. Hedging often takes the form of a transaction in a market or assets, to hedge risk, another market or assets of a company for example, buy a foreign exchange option risk to its business to hedge the spot exchange rate fluctuations. Fund of hedge funds is to give the basic idea to obtain high profits through the use of various financial derivatives of the private equity fund. Hedge funds through the shortselling and leverage operations, in the market with less capital will have the probability to obtain high returns. Several well-known Tremont Group Holdings Inc have a combined annual income of up to 40% to 50% of the rate. But it is worth mentioning that the hedge fund investment strategy is a high risk investment, hedge funds may bring high return but also bring inestimable loss to hedge funds. The largest hedge funds could not change unpredictably in the financial market in an invincible position forever. The Tiger Fund in the cause of the peak appeared unable to get up after a fall position error, in this paper, will discuss the potential risk and the mode of operation of the hedge fund. Literature Review In the The future of hedge fund investing, the author based on the situation of Australian hedge fund manager for the acceptance of new products as well as the survey of Australian hedge fund market, expressed on the future development of hedge funds. The author is a direct expression of the hedge fund will become one of the main mode of future development, but the future rate of return will tend to rational. Hedge funds can provide very good nontraditional investment projects and investment philosophy, thus breaking the traditional sense of the financial system of the absolute, such as stock and futures market. Investors must not simply from the stock rise in profits or profit from the good development of economy, but also can benefit from the various possibilities by hedge funds. This model to overthrow the traditional investment concept. The ability to hedge funds over risk-free money market assets is easy to verify comparable hedge fund performance and the main stock index reveals mixed results. Hedge fund should consider contains only they can provide diversification benefits not drag the whole income portfolio rate in the diversified portfolio. Hedge funds have been trying to move beyond monetary market agents, suggesting that, on average, investors should be better in the currency market investment. Australian investors, from the bank bill yields than hedge fund returns do not bear any risk in this period. (Ali, 2004). In the Hedge fund reporting challenged, the author suggested to hedge funds, one of the main potential risks. Hedge fund investors in understanding the initial investment hedge fund manager, whether this distribution have a positive return or not interested. In the past the investment rate of return information that is of particular interest, is the prospect of information in the profit or loss of the future. Hedge fund report can be a tense relationship between investors and hedge funds origin. The report is the main concern for investors data prior to disclosure the past rate of return on investment, but investors rarely take the initiative to care about the obtained before changes in the objective market high returns and the international financial system environment. This is the number of big hedge fund in successive years of high returns, one of the potential risk of sudden trouble. When investors and hedge fund managers at the same time the face of this report, the mentality is different each other. Investors want to obtain information from the hedge fund report, see the foundation in the future may be and the same as before to obtain a high rate of return on investment, while for the hedge fund managers, they would prefer to adopt a perfect report to obtain higher investment amount, and then through the financial derivatives to move more high leverage to demand higher interest. (Schrà ¶der, (2009)) In the article the Banking Financial Services Policy Report, the author points out a series of questions of hedge funds since the. This article uses a lot of data to illustrate the operation mode of hedge fund will make these funds will eventually go blind profit and ignore the regulation of the abyss. In this paper, the author will provide potential agency problems associated with the management of the hedge fund, the relevant reasons to increase or decrease in the regulation of hedge funds, and discuss the international differences in the regulation of hedge funds. At the same time, the author also points out the necessity and possibility of the development of hedge funds to do supervision and the future development in this trend. This paper points out that the Agency Problems in Hedge Fund Managementà ¯Ã‚ ¼Ã…’Potential Conflicts Arising from Investor Baseà ¯Ã‚ ¼Ã…’Potential Conflicts Arising from Fees and Proprietary Investment by Hedge Fund Managersà ¯Ã‚ ¼Ã…’Potential Conflicts Arising from Lack of Regulatory Oversight Potential Conflicts Arising from Lack of Transparency, Potential Conflicts Arising from Lack of Transparency, Liquidity, Independent Valuation, and Pricingà ¯Ã‚ ¼Ã…’Potential Conflicts Arising from Strategies and Leverage and International Differences in Hedge Fund Regulation are the major problems of hedge fund. The author cites a large number of problems in depth later, found the cause of the problem, and put forward a relative dialectical argument in the solution to the problem cause, is about the supervision of strict degree. The use of innovative investment strategies of hedge fund of hedge fund. On the one hand, to provide a variety of welfare hedge fund strategies these innovation, financial system involved, including the market liquidity and provide vital, limit price distortions and abnormal through arbitrage, and the tools and the risk of the market, because they can quickly change the portfolio. At the same time regulation can avoid more human or human operational errors based on the market tends to be more rational and restrained. However, people also hold clear opposing views concerning the draconian regulation, such as regulation is going to cause the market too friendly, hedge fund managers may face administrative regulation more trivial on trifles and unable to better respond to market changes, the hedge fund manager will relocate to more lax regulation of less jurisdiction. At the same time, for more regulation will involve taking self regulatory function from hedge fund participants, which may encourage the investment decision and risk management of relaxation. And finally the author puts forward the problem now is not how to regulate the industry, but where to draw the line in and excessive regulation. If it is assumed that all hedge fund manager to complete freedom to do what they do best, then any additional regulation would lose their favorable position in market failure in the market self adjustment ability, but it is easier to make the fund managers do not health more cross line led to the developm ent of the market, is not conducive to the long development. (Cumming, (2008).) In an annual report from Deutsche Bank, the hedge funds derivatives business has been affected by the financial tsunamis biggest business. Performance data of bad, caused the final quarter of the year in many hedge fund strategies 2008, investors Redemption requests boom. Deutsche Bank is one of those still in the market. Keep away from new business, it continues to thousands of products, so that the two grade market, has been in the restructuring of the damaged hedge fund positions are very active, and has developed a new hedge funds, exchange traded funds to investors liquidity. The bank also help clients to fund investment in hedge funds and funds. Deutsche bank restructuring process of more than $2000000000 of products for more than a year. In some cases, other dealers structure it help investors hedge fund products supplier credit risk or involved in the transaction. This structural adjustment as a means of coping with the crisis, operation method and the new popular form in more of the financial system. According to Deutsche Bank in a report, it is not difficult to see that the structural problems brought about by solving hedge fund existing products has become a main direction of major financial institutions, at the same time, the bank also gives a better solution is to avoid speculation concept, simple game on the existing basis, derivatives more market more transparent, provide financial tsunami hedge fund after a good operation platform. It is groundbreaking because, for the first time, investors can access a diversified pool of hedge funds, which is Ucits Illcompliant, transparent, over-collateralised and developed into a package that is as liquid as foreign exchange, says Farouze. Everybody is going to ask how we are providing intra-day liquidity and not taking big risks because the underlying managers are not liquid, but it is a fundamental misunderstanding that managers are illiquid. Deutsche Bank report a future development direction, but this is not the only direction. In fact, the financial system is with the development of science and technology and the process of globalization. While similar to the hedge fund this fund molding for just a few decades, and only in the last ten years of substantial growth, occupy a space for one person in financial institutions. It is not difficult to see, the future development is diversity, hedge fund concept will be with the development of financial system and complete change. This will later in the paper mentioned. (BANK, 2010) Research Questions In this report, will be around 2 main research. First, the operation mode and the hedging strategy of hedge fund. Second, hedge funds will face what risks and how to avoid these risks. Operation mode about hedge funds will choose more common and easily understood model analysis, through analysis, a direction to try to explain why hedge funds as institutional investors are willing to invest, and position fully understand why financial derivatives play in different market operation. About the risk hedge funds face, will be analyzed from different aspects, first of all will be based on several reasons the literature has been mentioned analysis will be between hedge fund managers and investors have problems and explore why hedge fund risk management must be very strict, and will use examples of why once large hedge fund be unable to get up after a fall in the market changes, exit the market stage, finally according to the international economic environment and puts forward some assumptions and analysis of hedge funds will be how to face these difficulties, and puts forward the solution or the method of risk aversion. the operation mode and the hedging strategy of hedge fund Hedge funds have a lot of investment strategy, the investment strategy, academic classification is roughly four, arbitrage, event driven, directional and global macro. And the four way investment, should be said that the four main thinking pattern, they can coexist also can invest strategy according to one or more of them adjustment. It is also a reflection of the hedge fund freely. In the paper, classification will be analyzed, and give examples. Arbitrage The basic idea is to arbitrage fund assets to buy shares, part of the assets of the short selling of shares. Multiple assets amount to buy stocks by the B coefficient (coefficient a measure of stock and market relevance) adjusted to form a long position, short asset amount of the short selling of stocks by the B coefficient adjustment after the formation of short positions, long positions and short positions of the difference between the formation of the assets of the fund market position. The market position for long, short or is zero, thereby regulating funds face market risk. When the market position to zero, long / short strategy to become the market neutral strategy, the fluctuation of return and market fund completely unrelated. Through adjusting the market positions, types or further adjustment of portfolio stock, can adjust the portfolio risk degree and the risk types. Hedge is a double-edged sword. When the fund market risk faced by hour, value-added potential of the fund ca n enjoy the stock market long-term upward trend has also reduced. In addition to hedge market risk, we can also be other risk funds to hedge funds, such as exchange rate risk, interest rate risk, the industry risk etc.. Whenever a risk is hedged, there is no possibility of fund managers use the risk factors for the fund value. In theory, a perfect hedge fund returns should be the risk-free rate minus the transaction cost. Therefore, in practice, the fund manager will not take all the risk factors for hedge funds, but their risk factors cannot grasp the hedged risk factors, leaving his grasp, make investment decisions in these risk factors to obtain excess returns. Stock index futures Stock index futures is not reasonable price the stock index futures market, at the same time to participate in the stock index futures and spot market transactions, or simultaneously in different period, different (but similar) category stock index contracts, to earn post behavior. Stock index futures arbitrage sub now hedge, hedging, hedging and cross city, cross species hedge. Commodity futures Similar to stock index futures, commodity futures also exists in the hedge strategy, to buy or sell a futures contract at the same time, selling or buying another contract related, and in a time of the two kinds of contracts. Transactions in the form it and hedging some similar, but hedging is to buy on the spot market (or sell) real goods, selling in the futures market at the same time (or buy) futures arbitrage; and only in the futures market sale and purchase agreement, does not involve the spot transaction. Commodity futures arbitrage are now hedge, hedging, cross market arbitrage and cross species arbitrage. Option hedging Option is also called the right to choose, is a kind of derivative financial instruments in the future on the basis of. From its essence, option is essentially in the financial sector to the rights and obligations of separate pricing, the right of the transferee within the specified time on whether to trade to exercise its rights and obligations must be fulfilled. In options trading, purchase option is termed the buyer, and the sale of options side is called the seller; the buyer is the right of the assignee, and the seller must fulfill the buyer to exercise the right obligation. Option has the advantages of unlimited income and risk of loss is limited, so in many cases, the option to replace the futures, short hedge trading, will risk arbitrage has smaller and higher rate of return than the futures.