Preparation for retirement

How are you preparing for your retirement? This question seems out of order, but it is good to remind workers that they should think about it. The standard of living you want to have after retirement has to be planned before retirement. Since your financial needs will increase as a result of aging, how are you going to meet these needs? How much will be enough for you? Start thinking about this issue now. Don't leave it for the future!        

How to protect yourself against the problem with public previdency 3

In the last post, I mentioned some of the questions one should ask himself regarding his income after retirement. I also suggested that a worker should first learn about investment. One of the long term investment options a worker should consider is a mutual fund. There are different types of mutual funds. Before investing in any type of mutual fund, you should find out the their track record and the return on investment over a long period of time. It is understandable that any type of investment carries some risks with it, however, the most important indicator is the long term performance. In this respect, you should find out which mutual fund gives you the maximum return over 10 years of period. Remember that you are investing this money for retirement. Therefore, it should be left to accumulate. The effect of compounding interest on a long term investing is enormous. 

     For example, one calculation done by Ramsey Radio broadcast shows that $30,000 in a mutual fund can yield about $1 m tax free after 30 years of invesment. That means that you can easily retire as a millionaire. The other information you should get is the tax issue. You must verify the investments and their respective tax codes. Long term investments generally have low tax when compared with short term investments. There is no reason why you should not retire rich. It only depends on you!

          

How to protect yourself against the problem with public previdency 2

The reason for writing about problems regarding the public previdency is not to threaten anyone, but to bring to light one of the problems facing workers worldwide and this will be worse in the future. The objective of this post is to let workers be aware of this problem and consequently, help them prepare for their future. The future involves a period of about 30 years during a person works before retirement. One way to prepare for future is to learn about saving and investing money. It is important that every worker learns about the principles of investing. 

     The next questions you should ask yourself are:

(1) How can I learn about investment?

(2) what types of long term investments are good for me?

(3) In which companies should I invest?

(4) What should be the return on investment appropriate for me?

(5) How much do I need at retirement?

(6) How much should I have at retirement?

(7) Which investor advisors or brokers should I trust?

Have you thought about these questions? Which investment options do you consider the best? In the next posts, we will look at some of the investments options and their rate of return. So, watch out! 

  

   

How to protect yourself against the problem with public previdency 1

How can workers protect themselves against the problems with public previdency? Imagine yourself realizing that your pension is below what contributed for. The topic may seem unrealistic, but bear in mind that the fiscal problems of many countries today arise from debt in previdency. Workers entering into the workforce now should be aware of this problem because it is going to become critical in the future, whether the country is a developed country or a developing one. So, what should workers do to protect themselves against this imminent problem?

     In the next posts, I will give some tips about what to do. So, check this out!  

What happens if there are no vacancies for promotion in an organization 2?

In my last post, I wrote about a common problem that occurs in many organizations. That is: what happens when there are no vacancies for promotion of employees? In that post, I gave some tips on how employees should go about it. In this post, we will look at how organizations should react to that. Although some organizations do not recognize it, the problem is real. Some people in the senior management level positions do not know that those below them also want to go up in the hierarchy. When there is no chance for this to occur, those at the bottom feel frustrated and some tend to leave the organization. 

     It is very important for those at the top to know that what is good for one is also good for another. Based on this principle, they should create a mechanism whereby talented employees can be rewarded. Although there are some forms of rewards, the most fulfilling one is acquired by promotion. People want title as a form of recognition. It is understandable that in small organizations, hierarchical levels are limited. However, there can be a way out.

     The solution to this problem is to have subdivisions in each hierarchy. For example, an employee can go from consultant 1 to consultant 2, 3, and 4 instead of going directly from consultant to coordinator. The same thing happens between coordinator to manager. These little moves has a lot of psychological impact on the ego of the employees. It gives them satisfaction and motivation to do more. Many organizations loose good employees because of lack of propects of promotion. These employees do not tell the organization the main reason for leaving. Using subdivisions can keep many employees from leaving their present organization and, consequently, will reduce high turnover.

       

  

What happens if there are no vacancies for promotion in an organization?

In my last posts, I have written about the some issues relating to promotion in organizations. Today, I am going to talk about the problem arising from lack of vacancies for promotion in organizations. How do employees react when they notice that there are no chances of moving up in the hierarchy? Secondly, how should an organization address this problem? These problems are real and many companies are affected by them. This is the case of small and medium sized businesses. Suddenly, these companies discover there are no more vacancies for promotion.

     Small and medium-sized companies generally have limited business operations, offices, and only a small percentage of them are multinationals. As a result of this limitation in size and operation, the number of openings for promotion is generally limited. The openings refered to here implies moving up vertically or horizontally. There is no vertical or horizontal promotion unless the people occupying those positions leave the organization or are fired. 

     The first consequence of this situation is the demotivation of employees who see themselves as not making any career progress. This is because promotion is considered the most important factor that affect career progress and fulfilment. Some employees with more marketable skills immediately leave the organization to go to a place where their career can grow. Consequently, there will be high turnover of employees in those type of organizations.

     Now, what happens to organizations facing this problem? We will try to answer this question in the next post. So, watch out!  

           

Establishing criteria for promotion in organizations 2

In the last post, I gave some insights on how organizations should establish criteria for promotion of their employees. At the end of the article, there were some questions as how organizations should deal with promoting candidates who do not have the ability to work in groups. In my earlier posts, I wrote about the two main factors that determine the promotion of an employee as technical skill and behavior. I also stated that for senior management level positions, behavior is the most important factor. However, behavior covers a wide range of a person's endeavor. Establishing criteria for promotion should highlight all these factors and even give them weight. 

     In order to antcipate the problem that may occur, organizations should provide training so that all employees can acquire the required skills. In the worst case, an organization should give training to the potential candidates just before the promotion. They should also give them support through coaching. 

     It is important that organizations understand the consequences of unprepared leader. A leader must transmit trust to his subordinates. The power of a leader is eroded when subordinates discover his weakness and undermine it. There should not be room for questioning a leader's ability to lead. Therefore, establishing proper criteria and preparation of leaders for promotion is the key for the effective fucntioning of an organization.                 

  

The effect of culture on negotiation 3

In some of my posts about negotiation, I wrote how the culture of people from Asian region and from Latin America affect their business negotiation. Today, I am going to write about the the effect of African culture on negotiation. This is important because it provides a guide to those who will like to do business in that Continent. For the purpose of disclosure, I am from the African Continent.

     Africa, my continent of origin, is the least developed Continent in the world. The lack of economic development leaves the continent with very high level of unemployment rate. It is known that natality rate of Africa is high. However, many adults are unemployed with only a few able to sustain the whole family members. As a result of tradition, Africans generally live together and consider helping others as a norm. This means that those who have better condition should help those in bad shape. Another factor that complicates the situation is that there is no organized society, no social security, and governments are generally dysfunctional. In this condition, each African has to protect and meet all the needs of his family members. This condition puts any African under a lot of stress.    

     The high level of desperation in which an African is found makes him or her think only for the short term or immediate satisfaction of his needs. Therefore, when negotiating with an African, you must first prepare a long-term plan or project. The plan has to be explained to an African in a way he or she should understand so you can get the best out of him. You should work him through how this plan will play out. You should let him see how he should be transformed and his problems solved in a long-term.

     I hope this post will help clarify some myths relating to doing business with Africans or in Africa.

                 

Establishing criteria for promotion in organizations 1

Every employee who secures job in an organization will like to make progression in his or her career. This progression is taken as a recognition of the employee's contribution to the organization. This progression in career is done through promotion. Although promotion seems to be more important to the employee, it is also importanto to an organization as a way of compensating employees for the loyalty demosntrated. However, the decision to choose those to promote from all employees should not be an easy one. In order to overcome this dilemma, organizations should establish some criteria for promoting their staff.      The criteria for promotion should be clear and communicated to all employees. The question then arises: what should be the criteria to be used? Some think the main factor for promotion should be technical skill, others consider a combination of technical and behavior, while others consider affinity with the superiors as the most important factor. However, there are some things that should be thought about. Firstly, any type of promotion involves going to a new position where the individual will lead a team, whether a small one or a big one. Therefore, the criteria to be set must recognize this fact.

     Leading teams implies the person should have good interpersornal relationship skills. This also means being able to work in groups. There is no way a person can lead a team without having this ability. An organization can verify this ability by looking at the performance assessement of the employee. The track record of this employee will show if he or she has this quality or not. The question is: what happens if the employee has other qualities, but lacks in team work ability? How should organizations deal with this?

     In the next posts, we will try to answer these and other questions. So, watch out!                    

Promotion and conflict 3

In my last post, I presented two ways in which organizations can reduce the intensity of conflict resulting from promotion. These were by stating clearly the criteria for promotion and by providing training to the new managers.If these measures do not work, organizations should consider a more drastic one.

     Insubordination is dangerous for teamwork, and consequently, to the organization. The insubordinates should be given some time to change their behavior, resign from their job or face demition before they contaminate the whole company. This measure should be taken so the situation does not get out of control. However, this punishment should also be communicated together with the criteria for promotion. 

     It is important that organizations take such a drastic measure because the effect of rotten apples in any environment should not be neglected. The dissatisfied employees generally try to gather many people to their side. In this way, they form small groups or silos through which the flow of information is controlled. Information of sympathisers are left to pass through while those of the enemies, not. One of the killers of organizations is lack of internal communication. Therefore, organizations should take the case of insubordination serious.