The Prevention Of The Stock Market Crash Economics Essay

The Prevention Of The Stock Market Crash Economics Essay The Great Depression was an economic slump in North America, Europe, and other industrialized areas of the world that began in 1929 and lasted until 1939. It was the longest and most severe depression the world had ever seen. What happened and how did the stock market crash occur? Could it have been avoided? Simply put, yes! There were numerous issues and oversights that were made during that time by all Americans. Obviously, it did not occur overnight. Where had the consumers, government, and/or businesses gone wrong? There is no doubt that we, as Americans, have become smarter in terms of our economic knowledge, but are we doomed to go through another Great Depression in the future? What have we done, or what can we do to avoid this from happening again? To understand the Great Depression we first must look back at the economy prior to that time. For most Americans the stock market crash of 1929 has become the symbol marking the beginning of the Great Depression. The economic boom of the 1920s was reflected in a stock market which rose from 60 in 1920 to its peak of 381 on September 3, 1929 (Tothero Crowley, 2008). After World War I, the soldiers returned home. They had money in their pockets and many new products to spend their money on. Prior to the war, many products on the market were considered a luxury, but with the onset of mass production, many of those items that were considered a luxury were now common. With the soldiers returning from the war, everyone having money in their pockets, and having products and services readily available, this put the world in a euphoric state, with the idea that everything was ideal. The Roaring Twenties, as they were referred to, was a time of great economic prosperity. This was mostly due t o the wide array of consumer goods that were available. New technologies, soaring business profits, and higher wages allowed more and more Americans to purchase a wide range of consumer goods. Prosperity also provided Americans with more leisure time (The Great Depression (1920-1940), 2009). Americans were purchasing more consumer products on credit such as automobiles. As the economy blossomed, suburbs were created, U.S. cities had drastically changed, radios began broadcasting news and music, and the aviation and motion picture industry had grown, as well. Times were good for the American people during the Roaring Twenties. The decade saw North America becoming the richest region on the earth, with industry aligned to mass production, and a society with a culture of consumerism (Roaring Twenties Economy of the 1920s, 2005). With so much growth in the economy at that time, the government did not feel that they were in jeopardy of a crash so they did not intervene. Since the war was over and all the men were home, there were goods and services being pumped into the economy and everyone had money to spend. People were borrowing and spending money without a care, and thought nothing could go wrong. By the time the government figured out there was a problem with the economy, it was already too late. Prior to the Great Depression, governments traditionally took little or no action in time of business downturn, relying instead on impersonal market forces to achieve the necessary economic correction. From one extreme to the other boom to bust. The magical prosperity vanished almost overnight as people lost confidence following the stock market crash (Nelson, ed., 2000). This could have possibly avoided the crash had the government had the foresight to be more strict with the financial institutions and their lending habits. Individuals should have been wiser with their spending. They should have saved money rather than buying things they did not nece ssarily need. During the early 1920s, federal spending grew three times larger than tax collections and when the government cut back spending to balance the budget, a severe recession was the result of those actions. The value of farmland fell 30-40 percent, and the middle class comprised about 15 to 20 percent of all Americans, while the richest one person owned 40 percent of the nations wealth. Between 1920 and 1929, individual worker productivity rose 43 percent and the number of people reporting half-million dollar incomes grew from 156 to 1,489 between this time period; a phenomenal rise compared to other decades, but still less than the one percent of all income-earners. In the early 1930s, more than half of all Americans were living below the minimum subsistence level and the annual per-capita income was $750; and $273 for farm people. Construction was down by $2 billion and then a recession began, approximately two months before the stock market crash. During this timeframe, production dec lined 20 percent, wholesale prices were at 7.5 percent and personal income was at 5 percent. Then, on October 24, the stock market crashed. Investors called October 29th Black Tuesday for the loss of $16 billion, which was a lot of money in those days. Also during this time, the gross domestic product (GDP) fell 9.4 percent from the year before and the unemployment rate rose from 3.2 to 8.7 percent. During this time there was absolute panic, no major legislations were passed addressing the depression, a second banking scare occurred in the spring, the GDP fell another 8.5 percent, and unemployment rose to 15.9 percent. The decline in the GDP, while dramatic, was not as spectacular as the explosion in the unemployment rate. Mainly because the unemployment rate represents what was not produced that could have been produced. Consumer purchasing somewhat fell, government purchases did not fall at all compared to 1929, but there was a dramatic collapse of investment purchases. Why did investment purchases collapse so dramatically? Because interest rates affect investments. The problem in the early 1930s was that the rate of inflation was negative, meaning there was deflation instead of inflation. This meant that borrowers were not paying back as much money as they borrowed. The table below shows the nominal interest rate was declining during this period, but because the rate of inflation was negative, the real interest rate was much higher than the nominal interest rate. YEAR PRICE INDEX RATE OF INFLATION % NOMINAL INTEREST RATE % REAL INTEREST RATE % 1929 13.12 5.85 1930 12.60 -3.96 3.59 7.87 1931 11.34 -10.00 2.64 14.04 1932 10.05 -11.38 2.73 15.92 1933 9.78 -2.96 1.73 4.54 In the years leading up to the stock market crash, the stock market had gained much popularity as a way of making money. Because stock prices had been on the rise, they gained the reputation of being a safe way to invest. Beginning in 1926 and ending with the crash in 1929, the market moved up nearly 400%. Many investors believed stocks were their ticket to riches (Valentine, 2009). Investors were talking up the idea of how much money could be made by investing in stock. With all the talk of the get rich quick scheme and the relaxed credit terms from banks, the buying frenzy began. Simply put, people were naive, greedy, and wanted a way to get rich quickly. American businesses and the people placed too much faith on what they did not fully understand, and they did not think of the long-term repercussions that could occur in the event of an economic crisis, such as a recession, or in this case, with the Great Depression. Problem one: People were too loose with their money. Rather than to save for their families, they placed their money in the stock market in hopes of receiving a nice return. People were purchasing stock on margin. What does this mean? They were only required to pay 10% down and borrow the other 90%. For example, if $10 worth of stock was purchased, the investor put in $1, while the mortgage broker put in the other $9. It was a good deal as long as stocks were gaining value. However, if the stock lost value, the stockbroker would issue a margin call requiring the investor to pay back the loan. In the example above, not only did the investor lose the $1 he invested, he also had to pay back the $9 hed borrowed (Valentine, 2009). As you can see from the example, stocks could go awry at any given time injuring the broker, but more specifically injuring the investor. People were disillusioned that stocks would always rise and never fall. Today, not all stocks and investors are eligible for a margin account. This is a great benefit in determining what stocks investors are safer using, such as a margin account, and may not be so prone to losing the funds that are invested. Do you recall the definition of a margin call? Money placed for the original purchase of a stock needed to be paid back by someone; the investor. The economy rapidly deteriorated as people sold their stocks to hold on to their hard earned money, and brokers wanted their borrowed money back. Resolution: In general, there is no resolution on how people should spent their money. We cannot tell another individual what they can or cannot buy. Some people save, while others do not. An option that is current in present times, but could have been an acceptable solution prior to the crash, could have been to have financial regulators increase their financial ratio requirements for banks so less money would have been borrowed. Banks would have had less of a money supply by doing as such. Perhaps by increasing the banks financial ratio requirements, Americans generally could have spent less and purchased less in stocks. The stock market crash devastated the American economy because not only had individual investors put their money into stocks, so did businesses. When the stock market crashed, businesses lost their money. Consumers lost their money too, because many banks had invested their money without their permission or knowledge (Valentine, 2009). Problem 2: There were no programs that would protect the consumers from having their money be used, without their permission, by banks to pay back debts for the stocks. As you can imagine, American consumers and businesses were losing money, which caused people to panic and pull their life savings from the banks to hold on to what they had left in order to feed their families. Resolution: Unfortunately, without the regulations in place, there were no regulatory rules on what could or could not be done by the banks. The financial institutions were stealing money from the American people without permission. Until the proper regulations were put into plac e, there was nothing that could have been done at that time. Resolution: Eventually, the Securities and Exchange Commission (SEC) was createdto regulate stocks, bonds, and other commissions. The Federal Deposit Insurance Corporation (FDIC) was also created to insure consumers deposits in FDIC-enrolled financial institutions. In addition, the Federal Crop Insurance Corporation (FCIC) was created to insure crops planted by farmers (Valentine, 2009). Soon after Herbert Hoover became president, the stock market began to take a turn for the worst. In 1929, some of the larger investors realized the stock prices were artificially high as a result of the mass investments from speculative investors. So, those savvy investors started trading their stocks and consequently, stock prices began to fall. Then, brokers issued margin calls leading to further stock market drops (Valentine, 2009). Problem three: The way the stock market was handling the tracking of the volume of buying and selling of stocks. As stocks were traded and falling in price, investors started selling their shares over the course of several days, being Black Thursday through Black Tuesday, which caused the stock market to crash because millions of shares were being sold too rapidly. The technology then was not what it is today. This should have been taken into consideration when dealing with something of this magnitude. At one point the ticker tapes were nearly 90 minutes behind the market causing the market to drop by 33 points or 9% by the end of the day. Also, by Tuesday, the ticker tapes fell nearly 3 hours behind causing another 12 % drop in the market. Due to the issues with tracking most of the time investors were trading blind (Stock Market Crash of 1929, 2007). Knowing what we know today, regulations should have been put into plac e to help keep things under control. For example, today if the DOW drops by 10% before 2 p.m., trading will be halted for one hour. If the DOW drops by 20% before 2 p.m., trading will be halted for two hours. If the DOW drops 30% before 2 p.m., trading will be halted for one day and if another event such as September 11, 2001 occurs, they will either close early or not open at all to prevent panic (Little, 2009). Besides the issues of tracking, another subject to address is the relaxed credit terms. When stock prices began to drop, the market started changing. In turn, investors were requiring the loans to be paid in full. If the individual had their money in the bank, there was a good chance the bank had invested their money without their permission causing yet another loss of funds on top of the money they had already lost themselves in the stock market. Although President Hoover believed that the government should not intervene with the economy, he said families could turn the economy around if they continued to work hard and rely on themselves (Valentine, 2009). Of course, we all know hindsight is 20/20, but by creating the SEC, FDIC, and FCIC I believe that it helps the economy have a little assurance that the government is trying to help anyway that they can to prevent the stock market from crashing again. In conclusion, it takes more than the government, investments, and American people to change economic activity. It takes everyone in the U.S. to contribute, in one way or another, to the overall health of the economy. In regards to government involvement, money supplies and/or government spending can be increased or decreased, and/or taxes can be lowered or raised in order to assist in the health of an economy. Businesses can invest in new equipment or buildings, and/or construct new homes. We, as consumers, should find a happy medium, if applicable, to our spending habits. For instance, do not borrow more than you can pay back or afford. On the same note, do not spend more of your income on unwanted items and only spend on what is absolutely needed, such as food, clothing, bills, and leisurely activities. Unlike many Americans prior to the stock market crash, do the needed research prior to blindly committing and purchasing any good or service that is not 100% understood. It is best to financially access your individual needs based on your income. Take into consideration the chances of a potential layoff or the future health of a loved when considering a major purchase of something. It is best to plan for the future and to invest in something that is thoroughly researched and understood prior to placing your life, and that of your family, at stake. With all the more economic knowledge we know today, can we avoid another Great Depression? Only time will tell if lessons have been learned, but knowledge is the first step in understanding how to avoid disasters such as those that had occurred 80 years ago.

Juicy essay Essay

In the song â€Å"Juicy†, by Notorious BIG, also known as Biggie Smalls, there is a main theme of rising from poverty and entering into wealth. Wealth in this sense not only means material things, but it also makes reference to intangibles such as stability for himself and his mother. He begins by noting material things including: â€Å"condos in Queens,† â€Å"putting 5 Karats in my baby girls ear,† â€Å"lunches, brunches, interviews by the pool,† â€Å"50 inch screens, money green leather sofa, two cars a limousine with a chauffeur.† These material things highlight significance in his life because in comparison to his childhood, they are infinitely superior. His childhood consisted of â€Å"eatin sardines for dinner,† being â€Å"considered a common thief,† â€Å"dropping out of high school,† and living in public housing. Furthermore, Biggie’s life was immensely changed in a different aspect. Along with his economic wealth, he gained stability for himself and his mother and made her proud of him. He states, â€Å"My mother loves to show me off, of course, smiles every time my face is up in The Source.† Biggie also states that he celebrated every day because of his hard work and determination he was able to create a better opportunities for himself and his family. In the song â€Å"Juicy† there is a reoccurring theme of rising from the rags to the riches and never giving up on a dream that you set out to accomplish. Notorious BIG reflects on his life while growing up and always being told, â€Å"you’ll never make it.† In the song he says, â€Å"Considered a fool because I dropped out of high school, stereotypes of a black male misunderstood, and its all good.† He dropped out of school so that he could continue to make music and pursue a career. While growing up in poverty, Biggie was often faced with the option to sell drugs or stay in school. When he dropped out of school at the age of 17, he became a drug dealer so he could make some money with the ultimate goal of becoming a rapper. In the song he says, â€Å"to all the people that lived above the buildings that I was hustlin’ in front of that called the police on me when I was just tryin’ to make some money to feed my daughters, and all the niggaz in the struggle, you know what I’m sayin?† When he was growing up there were things he had to do to get by, there were things that he had to do that weren’t always legal, but he did  what he needed to provide for his family. Another important part of the song was when said, â€Å"I let my tape rock ‘till my tape popped†. He didn’t give up on his dream of becoming a rapper. No matter how many people told him he couldn’t do it, or he wouldn’t last, he never gave up and he continued to give out his tapes. Biggie’s â€Å"tape popped† when his song was number one on Billboard Magazine. This led him to being signed by Bad Boy Records, which was owned by fellow East Coast Rapper, Sean â€Å"Diddy† Combs. After becoming rich and making it in the rap game, Biggie became a different person. He didn’t know what to do with the wealth he had and flaunted it in the wrong ways. In the song he says, â€Å"Girls used to diss me, now they writing letters because they miss me.† When he said that they used to diss him, he was referring to how people that were close to him changed because they wanted to take advantage of him, and people that weren’t close to him wanted to be friends and benefit from the wealth he had. In this part of the song he was referring to how wealth can corrupt people. He remained unfazed, kept his circle small, and still pursued his dream of becoming a famous rapper. An excerpt from the song, after Notorious became popular, â€Å"Living life without fear, putting 5 karats in my baby girl’s ear, lunches, brunches, interviews by the pool†¦Ã¢â‚¬  This was an important transformation in his life because he went from a gangster on the streets and slinging drugs, to a rich rap star. Another quote from the song was, â€Å"Phone bill about 2 G’s flat, no need to worry my accountant handles that.† With all the wealth that he accumulated, he was carefree living. He went from struggling to put food on the table for his family to letting businessmen handle all his financial decisions. He had seen the way that wealth could change people. Also in the song he mentioned, â€Å"50 inch screen, money green leather sofa, got two rides, a limousine with a chauffer.† The way that Biggie spent his money was typical to any other person that made it from rags to riches. He went from wondering if he would have a meal to eat, to spending money on lavish things. The end of Biggie’s career came on March 3, 1997 when he was shot several times outside of an album release party in Los Angeles. He came out to a shoot music video for the song â€Å"Hypnotize† off his album â€Å"Ready To Die†. With the past beef that he had with west coast rappers, the trip out to California wasn’t encouraged. He died six days later in the hospital. Through out Biggie’s life, there were a couple strong  characteristics that he left behind. He left behind a strong work ethic with an attitude that nobody could out work him. When he died, it was a tough loss in the rap world because he had been very influential amongst rappers that had come from tough childhoods and lived in tough areas. He was a perfect example of emerging from a life of poverty and becoming successful and extremely wealthy. â€Å"The Notorious B.I.G. à ¢Ã¯â€šâ‚¬ Juicy Lyrics.† Rap Genius. N.p., n.d. Web. 18 Sept. 2012. http://rapgenius.com/The-notorious-big-juicy-lyrics â€Å"The Notorious B.I.G.† Billboard. Rovi Corporation, 9 Mar. 2010. Web. 18 Sept. 2012. . Duke, Alan. â€Å"FBI Reveals Documents in Biggie Smalls Death Probe.† CNN. CNN, 08 Apr. 2011. Web. 18 Sept. 2012. .

“Bennett’s main intention in The History Boys is to make the audience laugh” How far do you agree with this statement? by Keeran Rajan Essay

In this essay, I will be analysing the various themes in the play ‘The History Boys’ and analysing the specific focus Alan Bennett places on trying to make the audience laugh, through the theme of comedy. Firstly, I agree with the statement in question that Bennett’s primary focus in the play ‘The History Boys’ is to try and make the audience laugh. I will use the example of the French lesson to support my statement; the French lesson demonstrates multiple techniques aimed for the purpose of making the audience laugh, one of these techniques is stage business in this scene. Timms plays the role of a prostitute and alters his mannerisms to mirror those of a feminine woman which is humorous because Bennett casts a character that is very unsuitable in multiple ways such as he is overweight and an adolescent boy, this situation clearly demonstrates Alan Bennett’s intent to make the audience laugh as the role of Timms is almost oxymoronic. Dakin plays a client who is trying to acquire the services of Timms character’s services; a role he takes very seriously as does Timms with his role, this adds to the comical nature of the scene because of the irony of t aking seriously a scene where the characters are clearly fooling around. From the French scene we can already see that Bennett has tried to incorporate numerous techniques to make the audience laugh such as in regard to stage business, slapstick comedy has been incorporated by trying to create exaggerated comedy from unrealistic situations. As the French scene progresses we see Bennett create further comedy by making the headmaster walk in on the funny situation which has already arisen prior to the addition of the headmaster to the scene. ‘Vei-uille. Enough of this†¦silliness’ we see the headmaster struggle and demonstrate a poorer grasp of the French language than the group of students in the room, the dash shows the headmaster stutter which underlines the struggle the headmaster has with the French language, this once again shows Bennett using significant effort to make the audience laugh; by being coerced into a humiliating situation as an authoritative figure he is made to look foolish by the students, which is again ironic as teachers are supposed to be more intellectual than their students in every aspect. Another example of Bennett proving his main objective, to make the audience laugh is through the portrayal of two completely conflicting characters in Irwin and Hector thus creating a clever juxtaposition between the two of them. This is humorous as they are two teachers charged with the same task are completely contrasting people, the list of personality traits include : Hector is an older gentleman whereas Irwin is youthful, Irwin is also a physically healthy and fit man as opposed to Hector whom is clearly overweight and although both characters have a homosexual tendency, Hector demonstrates a greater degree of acceptance of these feelings but Irwin is much more cautious in his approach to his sexual preferences and lifestyle. Caricature is also a pivotal way in which Alan Bennett tries to make the audience laugh; Alan Bennett provides caricature of numerous characters by exaggerating certain characteristics of characters in the play. Hector is in my opinion, embodies the most ex aggerated performance, as he is a teacher who also is a paedophile who has a peculiar infatuation with specific students. The headmaster provides another example of caricature as his appearance is stereotypical but his mannerisms portray him as a robotic orientated character. Caricature portrayal of characters once again demonstrates that Bennett’s main intention was to make the audience laugh. However, I disagree that Alan Bennett’s main intention is to make the audience laugh, as I believe Alan Bennett’s play can be seen as a tragedy. As the play reaches a climactic ending, the play ends on a sour note; which could mean to some that Bennett’s primary focus he hoped to achieve with the play was to create a tragedy through numerous tragic incidents concluding the play, which include Hector’s death, Irwin being subjected to a wheelchair both the result from the same motorbike crash and further negative emotion is cast onto the play through finishing the play on a sad note on the account of Lockwood’s death after it is stated that he died as a result of friendly fire at the age of twenty-eight while serving in the York and Lancaster regiment. Alan Bennett also places a lot of emphasis and effort on the theme of education, it can be argued more so than he does in trying to make the audience laugh because he creates juxtaposition between Irwin and Hector in one more way which was not aforementioned in the list I previously stated, through Irwin representing pragmatism and Hector representing idealism. Alan Bennett tries to make his audience question whether education and the process of learning is precious or are you only interested solely because it helps you achieve your goals. In regards to Hector’s mind set of idealism, this makes him focused on enriching students with a passion for books, literature and art, firstly his views are peculiar which ties into other aspects of his life, his unique mind set can be demonstrated through the quote ‘why does he lock the door’ this can be analysed to show that Hector in his methods is symbolically locking out social normality and by doing this Hector explains how he wants the boys to think and further develops his character to the audience. ‘The open road, the dusty highway’ is one of the many quotes where we see Hector reference books and this compounds his views on education at this particular time we see Hector make reference to a children’s book about a Mr Toad following an exciting open road’. Irwin’s pragmatic view is one that simply focuses on getting ahead at any cost which is what creates juxtaposition with Hector’s educational views. ‘History nowadays is not a matter of conviction it’s a performance, its entertainment. And if it isn’t make it so’. Alan Bennett uses Irwin’s pragmatic, utilitarian mind set to explain the happiness which originates from learning is being replaced by just the need for constant progression on an individual’s educational path. So we can see Alan Bennett places a large degree of effort into the theme of education and it can be argued more so than he does on the theme of comedy and trying to make the audience laugh. Also, I disagree that Bennett’s main intention in the play was to make the audience laugh because an argument can be main that Bennett’s primary focus throughout the play was lust. This is primarily because of a homosexual love triangle that plays out between the three characters of Posner, Irwin and Dakin, furthermore Hector has a constant desire for physical contact with his students. ‘I love Dakin’ this demonstrates Posner’s well known lust for Dakin, but Dakin is an arrogant adolescent who is exploiting his charm to seek numerous romantic adventures. Irwin who is clearly attracted to Dakin also does not act upon his attraction which is most likely due to him being in a position of trust at the school as his teacher, but both Irwin and Posner have romantic feelings for Dakin. ‘The heart of a man has long been sore’ Hector here conveys his emotion in his conversation with his headmaster where it is stated he had ‘his hand on a boys genitals at 50 miles per hour’ and by saying his heart is sore, the importance of referencing the heart is important as it is the organ that is generally perceived to be affiliated with love and through this quote he expresses his feelings of lust to the student in question. Lastly, I believe that Bennett’s main goal was to not make the audience laugh but to create a portrayal of himself in the play because due to historical context, the character of Posner is likened to Alan Bennett himself. In the introduction of the play, Bennett explains his goal was also to gain acceptance into Oxbridge, just like the students and we can see Bennett claims the character of Posner is based on him ‘I had fallen for one of my colleagues with a passion as hopeless and unrequited as Posner’s is for Dakin’ Bennett explains that he had fallen for a classroom colleague and that it encouraged him to gain a scholarship as he thought it would impress him, just as Posner did. So in conclusion, I believe that there are many key focuses of ‘The History Boys’ but I believe that Bennett’s main focus was not to make his audience laugh, I believe his main focus was to portray difference in educational views and make a representation of education in the 1950’s and the juxtaposition between Hector and Irwin. 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Effective Ways to Reduce Stress - Free Essay Example

Sample details Pages: 6 Words: 1830 Downloads: 3 Date added: 2017/06/26 Category Psychology Essay Type Narrative essay Did you like this example? As per James E. Loehr corporate people are more of an athlete than any professional athlete because the demands of energy are greater for them as they are expected to work 10 to 12 hours a day while keeping focus, making no mistakes and same routine is expected the following day, which unsurprisingly lead to extensive stress and a manager should be aware of ways to deal with it. According to Spera Lanto (1997), a good way of dealing with the stress is replacing negative thoughts with positive ones. They say that there are four manners of combating the negative feelings: physical activities, talking about your emotions with a friend or counselor, try to solve the conflicts or misunderstandings. All of them can help to release the stress, and these techniques can not only be used to release the own managerà ¢Ã¢â€š ¬Ã¢â€ž ¢s stress but also the employeesà ¢Ã¢â€š ¬Ã¢â€ž ¢. For instance, organizing a physical activity where the employees can relax is a way of app roaching a stressful week or month. Another way of keeping the stress controlled is with positive mental programming (Spera Lanto, 1997). This is a powerful technique which managers can use to control the anxiety. It consists in envisioning the goal or objective achieved, preparing the leader to be calm when is the time to face the situation. For example, if the manager has a big presentation to explain for the CEO the reason for a decision that has been made, visualizing the success of telling it correctly and having the shown alternative accepted can contribute for this to happen. Practicing the assertiveness is another solution to deal with stress presented by Spera Lanto (1997). It consists in stating the opinion in a way that can positively influence the people that are being told. The concept is having the idea approved in a way that the others are willing to follow it. Using other approaches, such as aggressive, may lead to the opposite of what is desired. Hence, the best way of avoiding the stress is state your choice explaining to the employee why it has been chosen and should be followed, eliminating any kind of situation that might generate stress. Managers daily face deadlines. Therefore, being able to manage their time is crucial. Spera Lanto (1997) propose 10 principles that assist to organize the time. The first is planning ahead. Creating a schedule in order to know what is necessary to do will reduce surprises during the development of an activity. However, being able to implement it is essential. Thus, the capabilities of keeping the schedule, either due to the managerà ¢Ã¢â€š ¬Ã¢â€ž ¢s or the employeesà ¢Ã¢â€š ¬Ã¢â€ž ¢ capability, needs to be taken in consideration. The second is schedule leisure activities. No manager is able to keep calm if the job is his or her only activity. Time to relax and have fun out of the work place is needed. Setting dates in a way that the work is able to be finished before is the third principle. Doing this, the manager will have more time to deal with any kind of obstacle that is shown during the process. Moreover, if the project is delivered before the estimated time, the boss and clients will be delighted and surprised, leading to a good impression of the managersà ¢Ã¢â€š ¬Ã¢â€ž ¢ capability. The fourth way is divide the job. If the objective is big, it is easier to accomplish it if breaking it in small goals. This will give to the manager a clearer vision of what needs to be done. In order to manage your time, ità ¢Ã¢â€š ¬Ã¢â€ž ¢s necessary to be sure that the progress is on time, being the fifth fundamental. It is more complicated to avert a stressful situation because of time if the schedule is not being followed. Consequently, checking regularly the agenda is important. The sixth rule is delegate whatever you can. This means that the manager can train employees in order to facilitate his work and have some help. Doing this, they can reduce the time of achieving the goal and reduce the probability of facing a stressful occasion that will need an immediate decision. The seventh principle is learning not to work more than it is necessary. In other words, though working overtime brings extra money, it also brings more stress. Consequently, the manager must say no to work longer than the working time. In addition, if working overtime frequently, the managerà ¢Ã¢â€š ¬Ã¢â€ž ¢s efficiency can decrease, being another reason to avoid this. The eighth rule is to make a list of priorities. In this case, the manager will be able to dedicate to what is more important, according to the time that he or she has. The penultimate fundamental is which the manager should direct his or her attention to the most difficult jobs during the time of the day that he or she is more concentrated. Making this, he or she is not going to struggle as much as he or she would if during an unproductive time of the day. The last principle is to keep the eyes on shortcuts. Sometim es, the manager can learn a new way of dealing with a problem in which it can be easier than the one that he or she knows. New techniques might bring some new results, besides decreasing the time to reach outcomes. Now, it is equally important for a manager to help employees to cope up with stress and what a manager does for himself in a stressful situation, he should expect the same for employees as well, meaning à ¢Ã¢â€š ¬Ã…“put yourself in their shoes to understand their issuesà ¢Ã¢â€š ¬Ã‚ . (Lieberman, n.d.) One of the techniques for a manager could be to help subordinates to create a place in their own mind that is an imaginary à ¢Ã¢â€š ¬Ã…“war roomà ¢Ã¢â€š ¬Ã‚  which they should visit before a project, meeting or may be a presentation. The room should be equipped with everything they feel happy about, it may be awards and honors of previous work, images of their family and friends and may be music they found most inspiring. It would reduce their stress levels a bout prospective task and will increase confidence and motivation to perform at maximum for the same task. (Loehr, 1997) At present the corporate world is challenging and competitive, what works today for us may not work tomorrow so is the brutality of corporate world, the competition is unbelievable and the global market is expanding which may be a cause of concern for every subordinate that a manager be supervising. The answer to reduce their concerns is simple and direct à ¢Ã¢â€š ¬Ã…“Train themà ¢Ã¢â€š ¬Ã‚  in order for them to perform best at work, sometimes for employees reason for stress is not knowing about a particular task, (how to perform it in a most efficient way) creates frustration. Training would bring knowledge, efficiency and effectiveness in their work and thereby reducing frustration of them. (Loehr, 1997) David Posen in à ¢Ã¢â€š ¬Ã…“fake work and spinning wheelsà ¢Ã¢â€š ¬Ã‚  chapter 9 of his book à ¢Ã¢â€š ¬Ã…“Is work killing youà ¢Ã¢â€š ¬Ã‚  explains really well the fact that manager should observe to see if the subordinates are overburdened or struggling, if the answer is yes then manager have to see if he can lighten their workload through either assigning work to someone else or deferring it. Additionally sometimes employees are allocated task that may not be of too much importance, here manager could help them to re-prioritize their assignments to save them wasting their efforts on a work which would result in to nothing. Further in last chapter of the same book David suggested some of the solutions to minimize workplace stress for employees such as providing exercise resources, a workout room to allow them to blow off their exhaustion. Moreover providing places of gathering to go on breaks, it increases motivation level and reduces stress levels. Similar experiment was conducted by Elton Mayo in his Hawthorne studies in 1920 whereby he concluded the fact that just financial incentive would not increase productivity , a small time out for a break could even help to increase productivity and reduce frustration of employees. (Boundless, 2015) Moreover above mentioned solutions were also corroborated by John Puerner, publisher at orlando sentinel, what they did is formed a team to propose changes and they got several recommendations of changes to be made, they changed cafeteria menu so that employees can have better balanced meals and nutritious food, further upgraded athlete facilities such as free weights, machines, basketball court and even created their own Olympics. Due to such initiatives the rate of absenteeism went down dramatically and employees were more productive than at any time before. (Loehr, 1997) Nobody more than a manager know about subordinatesà ¢Ã¢â€š ¬Ã¢â€ž ¢ behavior, manager can watch for signs of stress someone who is usually efficient, joyful and well organized and is behaving differently, manager can have a private chat with the person to find out about any possibl e problem and how he could be of assistance to that person. (Posen, 2013) Long working hours are one of the major reasons of stress for employees, a manager try to avoid long working hours and do not ask employees as well except in unusual circumstances, it always helps to keep motivation level up and stress level down or else employees wonà ¢Ã¢â€š ¬Ã¢â€ž ¢t be feeling that they left office ever, particularly it is helpful where employees themselves arenà ¢Ã¢â€š ¬Ã¢â€ž ¢t monitoring their own stress very well or striding themselves. (Posen, 2013) Another suggestion for a manager that could help is to avoid à ¢Ã¢â€š ¬Ã…“last minute-itisà ¢Ã¢â€š ¬Ã‚  meaning it always happens that project run behind schedule and people are chasing down to the wired deadlines, it`s usually because project was not planned well. Planning needs to be proactive and realistic to avoid stressing employees as they move towards finish line such as taking buffer time in to account before start of t he project for unexpected glitches. (Posen, 2013) In addition to this delegation of tasks effectively could reduce stress level, it may include to provide clear instructions it increases confidence, to clarify goals and objectives lack of clarity is stressful, to pick right people for the task, giving them room to work freely and base accountability of them on results and not process as they may do things differently. (Posen, 2013) Lastly one of the most effective way to reduce stress and increase confidence of an employee is to praise them and always say thank you. Employee need to know how they are doing and acknowledgement of a job well done would definitely boost their motivation. (Posen, 2013) References Boundless. (2015). The Human Side: Hawthorne. Retrieved from www.boundless.com: https://www.boundless.com/management/textbooks/boundless-management-textbook/organizational-theory-3/behavioral-perspectives-30/the-human-side-hawthorne-170-8381/ Lieberman, S. (n.d.) . Stress Management in the Workplace: Take Stress for a Ride . Retrieved from https://www.simmalieberman.com/: https://www.simmalieberman.com/articles/takestressride.html Loehr, J. E. (1997). Stress for Success. United States of America: Crown Business. Posen, D. (2013). Is Work Killing You? Ontario, Canada: House of Anansi Press Inc. Spera, S., Lanto, S. (1997). Beat Stress with Strength: A Survival Guide for Work and Life. Indianapolis, IN: Park Avenue Productions. Don’t waste time! Our writers will create an original "Effective Ways to Reduce Stress" essay for you Create order